DRIVEN: we drive tony stark’s electric r8
Business Publication of the Year
Issue 64 | July 2013 | CarDealerMag.co.uk | £3.50
INSIDE: car dealer used car awards LAUNCH
super cooper Mini cooper S turns 50
l To italy and back in a mini l inside UK’s biggest dealer l We have a not so mini row
plus: bangers4ben returns - this time we’re heading for the nurburgring!
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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: @CarDealerDunc Advertising EXECUTIVE Amy Hobbs amy@blackballmedia.co.uk Twitter: @CarDealerAmy CREDIT CONTROL & ADMINISTRATOR Pippa Marsden pippa@blackballmedia.co.uk Twitter: @CarDealerPip
SUITS MANAGING DIRECTOR James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd OPERATIONS DIRECTOR Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy
Contributors James Litton, Tim Naylor, Tim Heavisides, Jonathan Such, Dave Brown, Mal Hay, Leon Poultney, Daljinder Nagra, Sophie Williamson-Sothert Diana Hargreaves and John Bowman
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UP the subject Welcome. BRING of the new Mini in a conversation and you can be guaranteed of a plethora of different opinions. In fact, it is so good, I have even brought it up during a date to try and kickstart the conversation. It worked in so much as we were chatting but I didn’t see her again. But the mere fact the BMW-owned brand creates an opinion is surely a triumph? This year sees the legendary Mini Cooper S chalk up 50 years. And in the office some have said this is an achievement to be marked, while others have spat words like ‘Germans’ and sentences like ‘they’ve bought the heritage’. Wherever your opinions lie, Mini is an interesting story. It was once a car that failed to die and was built by a car company – in its many names – that never really knew what to do with it in its later years. And then BMW rocked up with bags of cash, a clear vision and promises of jobs for British workers. Since then the Mini has become a brand building cars that are as much a statement as their owners. The name Mini is universally known as a premium car packed full of passion and – in most instances – built by skilled British workers. It has adopted a translatable image of Britain whether you live in Oxford or Papua New Guinea. In this issue we take a look at 50 years of the Cooper S, how Mini was launched in a country where there was little brand recognition, Europe’s largest Mini dealer (trust me, it’s not where you would imagine it to be) and roadtest two cars which are stretching the Mini concept to its limits. Oh and James Baggott and I have an almighty row about the company and its origins. Now there’s a surprise.
BANGERS’S BACK Yes, that’s right – Bangers4BEN is back with its old name and armed with a programme to stir the hearts of petrolheads. Bangers4BEN is back with a bang this year as the annual charity run takes on the theme of Porsche. The four-day rally starts at the firm’s UK HQ in Reading on October 12 and returns on October 15. Along the way we’ll be visiting the Porsche Museum in Stuttgart and popping along to the fearsome Nurburgring. Turn to p11 to find out how you can get involved. USED CAR AWARDS 2013 Last year’s glitzy Used Car Awards held in association with Wheeler Dealer Mike Brewer return. We’re on the hunt for the very best in the used car industry. Once again the awards will be held at the spectacular Brewery in London on December 2, but this year we’ve added more categories. There’s a greater chance you’ll win so turn to p18 to find out how you can get nominating. NEW CONTENT We’re Britain’s Best Business Publication for a reason. Issue 64 is another issue where we’re introducing more content to keep the magazine fresh and interesting to read. On p31 you’ll find the first of our new feature called Real Deals. It’s brought to you by Autotrade-mail and we feature an interesting car currently for sale. Enjoy the issue.
James Batchelor, editor
Winner: Best Business ‘This magazine brings its readers an insightful, engaging overview of their industry which Publication of the Year entertains as well as informs’ - award judges CarDealerMag.co.uk | 03
Quality attracts quality That’s why Supagard are delighted to extend a warm welcome to Aston Martin – one of the world’s most renowned automotive icons and the latest in a long line of prestige car manufacturers who’ve been attracted to the Supagard brand. We’ve been the UK market leaders in paint and fabric protection since 1988 – not just because of our TXDOLW\ SURGXFWV EXW EHFDXVH ZH GHYHORS SUR¿ WDEOH SDUWQHUVKLSV ZLWK WKH EHVW LQ WKH EXVLQHVV &RQWDFW XV WRGD\ WR ¿ QG RXW KRZ \RXU EXVLQHVV FDQ SUR¿ W IURP 6XSDJDUG SDLQW DQG IDEULF SURWHFWLRQ
Supagard Limited 19-27 Gavinton Street, Muirend, Glasgow G44 3EF. Tel: 0141 633 5933. Fax: 0141 637 7219
www.supagard.co.uk 04 | CarDealerMag.co.uk
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40
Mini Cooper S turns 50
We celebrate the landmark and take a look at why the Mini brand has leagues of happy owners right across the globe
INSIDE. ISSUE 64 I JULY 2013
Dashboard
Letters
Bangers4BEN returns Car Dealer Used Car Awards Around the world Finance Big Mike
39
Baggott Real deals Car Dealer Club
Forecourt
Jeep Grand Cherokee
Bangers4BEN’s back
Tested: Lexus’ new 3 Series rival
11
37
Lexus IS
‘‘
Audi RS6
Driven: Audi’s experimental electric supercar
Audi R8 e-Tron
34 Features
We need to get the Jeep brand back into the public conscience.
Nigel Land, Chrysler Jeep UK brand director
Mini special
Focus on: GEN-3 Focus on: Aston Barclay Feature: Money-saving experts
Data File
The Statistics
£50 Car Challenge Taking Stock Buyers’ Guide Commercials Auctions
18
Trader Talk On Track Motor Mouth Car Dealer Used Car Awards launch
a month in A picture...
After last month’s mammoth issue, editor Batchelor needed to have a rest. This is the view he had while eating lunch earlier this month. There was some work done, though. Lake Garda was one stop-off on his road trip through southern Europe – and it was a jolly nice one too. You can read Batchelor’s words, starting from page 40, in our Mini special.
Market Insight Suppliers Guide & Trader Directory with Reay Long Termers Workshops Time is Money
07 11 18 22 24 27 29 31 32
34 37 38 39 40 54 56 59 68 71 72 73 74 77 78 79 80 81 82 84 86 90
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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
Used car sales are rocketing Having just read your piece online about how the UK car market is at its best in four years, as a dealer, not only am I extremely pleased to hear this news, but I’m also starting to witness the boost in sales. With a range of quality used cars on my forecourt, I have found that my used car sales have rocketed. Similarly, the finance offers currently available on our new car fleet have proved rather popular. Gary Higgins via email,
Blog’s bang on
James Batchelor’s blog on advertising was most certainly insightful and a reminder that advertising is an extremely important process in publicising a brand and its products. I would agree that it’s not hard to notice the lack of prominent advertising in the industry, or at least that there isn’t anything too ‘outrageous’ out there. Where has the creative spark gone? Nevertheless, I am pleased to see Hyundai making a statement as they confirm their place at the Piccadilly Lights in London for another five years – I think it proves that it makes a difference. Ben Hobbs via email
A real benefit
I came across your BCA funding story on CarDealerMag.co.uk and found it very helpful. I am an independent dealer and as a small business, I find it increasingly difficult to secure finance from bank lenders. This can therefore have a significant impact on my financial situation, especially when it comes to making future purchases. The funding product will definitely make it easier for me. Graeme Berry via email
twitter comments
Read Car Dealer instead! We’ve been a bit cheeky this month. It’s entirely the editor’s fault. On noticing some Car Dealer readers complaining about other trade publications not creating an iPad version of the magazine, we cheekily stepped into the fray and pointed them to ours. You can’t blame us can you? We are pretty sure we were the first to create an iPad version of a trade magazine and we like to think our’s is rather neat. That’s not forgetting iPad readers were UP again last month – we gained 239! Haven’t downloaded it yet? Go to bit.ly/CDMipad to download. @jimreidvehicle @specialistcars1 @fcrossandson @AMchatter @MotorTraderMag I’d like to see the MTMag but don’t have an #ipad Philip Nothard @PhilipN_CAP @PhilipN_CAP @jimreidvehicle @specialistcars1
Tim’s talking sense
I very much enjoyed reading Tim Peake’s Trader Talk on car sales rocketing in Car Dealer. It’s very interesting that dealers should now have a retail focus, in order to make sure they pay the right price for the right cars. It’s another reminder that the market is beginning to evolve, and that as dealers, we need to review our used car operations. I think online presence and mobility is certainly one of the prominent discussions, and we all need to take care when dealing with vehicles online. Keep up the good work Tim! Mark Saunders via email
@fcrossandson do you think they’re listening to us? Umesh Samani @specialistcars1 @specialistcars1 @jimreidvehicle @fcrossandson @AMchatter @MotorTraderMag @PhilipN_CAP You can always chat to us on Twitter! Download latest iPad mag here bit.ly/CDMipad James Batchelor @JRRBatchelor
Welcome Michael
Having read the article on Michael Hawes announced as the new chef executive of SMMT on CarDealerMag.co.uk, I’m very pleased to hear this news. Michael Hawes has a superb reputation in the automotive industry, mainly due to his leading roles in corporate affairs and PR at Bentley. I think the SMMT will really benefit from this change and believe that Michael Hawes will use his expertise to further promote the SMMT team. I wish him the very best of luck and I look forward to seeing what he does with the SMMT. Lisa Jackson via email
It’s the old birds that catch the worm in this game, mate WHEN I started as a salesman a few years ago, I found it quite tough to compete with the more established (or shall I say old) salesmen in the dealership. They were like Stonehenge, they never moved, but still managed to make money! I’d be running around like a tit in a trance trying to speak to customers and all they would say is ‘Oh, I’m dealing with that guy over there.’ The prehistoric salesmen would laugh at me and just say: ‘It’s the old birds that catch the worm in this game mate.’
After two months I’d only sold five cars. This was silly, I had to do something. We had an incentive day one Saturday. Balloons were out and ‘sale’ stickers were on the cars. This was my chance to show them, but I needed to be clever. Or at least devious. I got in an hour or so before the dinosaurs and put my plan into action. I swapped all of their computers around, unplugged their phones, mixed up their paperwork, took screws
My
CONFESSION
out of their chairs, poured water over their customer seats, took all their pens and order forms and even poured hand soap around their desks. By the time they had sorted it all out, I had sold three cars and won a trip to Paris by selling the star car! By the end of the day, I had sold six and the rest had all done one or two. The boss believed it was the new cleaning company that were to blame for the state of the desks and praised me for getting in early and sorting mine out! Early bird catches the worm…. DM, Northampton CarDealerMag.co.uk | 07
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Ford Doncaster scoops award bit.ly/Fordaward
Gordon Lamb is looking to expand
Heavisides warranty wonders
Sell a proposition and not just a used car
A
Gordon Lamb MD Andrew Dobromylskj
Group’s fighting fund is in place for acquisitions
D
ealer group Gordon Lamb has built up a war chest of cash and is on the hunt for acquisitions. MD of the Chesterfield-based dealer group, Andrew Dobromylskj, told Car Dealer exclusively that after buying a Skoda site last year in Derby, the dealer group was looking to expand again. Currently the group runs two Land Rover dealerships, as well as Nissan and Toyota in Chesterfield and two Skoda sites. It also has parts and servicing centres for Renault, Suzuki and Jaguar. Skoda Derby was bought in April last year and, despite Dobromylskj and his team experiencing a few problems bedding the firm into the business, he’s keen to acquire more sites. ‘The next step for us is more dealerships,’ he told Car Dealer. ‘We have a fighting fund and are happy to expand, but we want to do that with partners we already have. ‘We’ve come down to an amount of franchise relationships that are at a manageable level now. In the past we’ve had more than double the amount of relationships we currently have — we cut back Saab, Mitsubishi, MG Rover, Lotus, Morgan and Chevrolet — all have gone in the last six years. We’ve rationalised it down to
‘‘
what we’re comfortable with and to partners who we think are progressing. ‘Now we are looking for more opportunities and Derby is where we are looking.’ Dobromylskj, 45, has been with Gordon Lamb for 22 years and has recently been promoted to the top job. He started with the company as a technician and has run most of the company’s franchises over the years. The family-owned dealer group has had a fantastic start to the year, explained Dobromylskj, with Land Rover its top performer. ‘Land Rover is an anomaly at the moment — they are going great guns,’ he said. ‘They are easily our best performing brand.’ So how does Dobromylskj feel about the new car market going forward? ‘I am confident,’ he said. ‘This year has had a really good start for us. My only worry is that I don’t think it can keep going at the same rate. The SMMT figures are so high at the moment I’m not sure it can continue. ‘But there is a lot of positivity out there and the customers are buying cars and we have had a very good first quarter. ‘April was a bit quiet, but that was off the back of a great March. Aftersales are rosy though and I think this year is going to be a good one.’ James Baggott (@CarDealerEd)
There is a lot of positivity at the moment; this is going to be a good year
Focus on: Gen-3, p54
nother month and another set of strong new car registration figures. April was the best since 2008 and the strongest growth in over a year ‑— the UK continues to outperform the rest of Europe and this year we’ll come within a hair’s breadth of beating German volume to be the biggest in the EU. But the slow new car market over the past few years is now having a knock-on effect on today’s used car sector. A study by Trend Tracker suggests that the under-four-year car parc is down an incredible 25 per cent from its peak in 2004. It’s obvious when you think about it — fewer new cars sold a few years ago means fewer vehicles filtering into the nearly-new and used sectors and quality stock becomes harder to source. And while it’s tempting to focus on the new car market, the used car sector is clearly where stronger returns are to be made — used car residuals are holding up strongly compared with 2012 and part-exchange values have been stable for the past 12 months. Market experts ASE reckon that cars over five years old realise more than £200 more gross profit than a one to two-year-old model, even after reconditioning. Of course, in this sector the car is just the start of the proposition. Working with dealers who are specialists in the used car market, we know that buyers are looking to plan for their motoring costs and are very open to the idea of service plans, extended warranty and GAP insurance protection. Integrating those products into the sales process on every deal is just as important as selling the car itself and a slick and effective presentation of the overall proposition will help boost that gross profit figure further. Selling a proposition and not just a used car also helps make sure the customer comes back to your business time after time so you become the obvious first stop when they’re looking for their next vehicle. It’s clearly a great time to be selling new cars but focusing on used vehicles can help make those times even better.
‘Buyers are looking to plan for their motoring costs’
Who is Tim Heavisides?
Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. CarDealerMag.co.uk | 09
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Lords of the Ring: Bangers4BEN’s back
Bangers4BEN 2013 will stop off at the fearsome Nurburgring THE PLAN Day one, October 12
Annual banger run to raise money for automotive charity BEN returns. James Batchelor gives you the details
I
t’s back! Bangers4BEN returns and this year is all set to be the best yet. Bangers4BEN returns for the sixth year running (last year the event was called the Big BEN Rally but its more famous name has returned) and the good news is that if you’re a petrolhead (and why wouldn’t you be?), you’re in for a real treat. We’ve always tried to make our annual charity run as much fun as possible and this year we’ve worked doubly hard to make sure you have a good time. There’s a good dose of fun and frolics which have characterised previous events, but with a huge dollop of car stuff as well. This year sees the 50th anniversary of the legendary Porsche 911. Always one to stick its hands into its pockets for charity, Porsche has got on board with us this year and helped us out. Bangers4BEN 2013 is a FOUR-day event starting at Porsche’s headquarters in Reading on Saturday, October 12, with our final destination being the Porsche museum in Stuttgart in Germany, before heading home on Tuesday, October 15. Along the way we’ll be finding time to drop in on the fearsome Nurburgring Nordschleife for a look around — but more of that later.
Once the rally has ended, the car you made the trip in will be sold at a special auction at Aston Barclay with all the proceeds handed over to BEN. There’s a £500 budget to spend on your car, but as BEN makes its money from the sale of these cars, spending a trifle more than £500 doesn’t really break the rules — it all goes to helping BEN raise more money! As in previous years, the entry fee is £500 for a team of two — a small price to pay for such a large amount of fun. The £500 covers hotel rooms, evening meals, breakfast and your ferry crossings — you’ll have to pay for fuel, tolls and the overpriced food you find in continental service stations. Once again the AA is kindly providing two patrol vans just in case anyone breaks down. As we go to press, there are 35 places remaining out of a total of 40. In previous years, places have sold out in a matter of days, so get booking to avoid disappointment. As in previous years, Kelly Neal from BEN is dealing with the bookings. Type bit.ly/B4B2013 into a web browser to book your tickets, and BEN will confirm your place and give you the details closer to the time. We hope to see you on October 12.
BANGERS BANGERS FOR BEN FOR BEN
2013
2013
The teams will meet at Porsche GB’s HQ in Reading before heading to Dover to catch the Eurotunnel. We’ll then be heading down to Maastricht in the Netherlands for the first of our overnight stops. It’s around a five-and-a-half-hour journey covering 340 miles.
Day two, October 13
We’ll make the 280-mile schlep to Stuttgart where in the afternoon we’ll have a tour of the Porsche Museum. The city will also be our home for that night.
Day three, October 14
The next day sees us head north to the fearsome Nurburgring 200 miles away. We expect to be at the ring around 2pm where you’ll have the chance to have an official passenger ride of the ring if you wish. However, you will not be able to take your banger for a quick lap of the 14-mile track as the insurance will NOT cover you — and neither will the AA recover your car! We’ll spend the night in Nuremburg with the traditional award ceremony.
Day four, October 15
We head home to Blighty.
CarDealerMag.co.uk | 11
dashboard.
Valeter threatened to throw paint stripper Dismissed worker wanted to take revenge on boss
A
worker who threatened to throw paint stripper over vehicles in a car showroom after getting the sack from a valeting company has been given a 12-month community service order. According to The Cumberland News, Christopher John McLaughlin, 24, who was employed by Protouch Valeting in Carlisle, told his boss, Martin Reading, that he would lose him his contract with Telfords Garage by covering the showroom cars in paint stripper in revenge. Carlisle Magistrates’ Court was told that McLaughlin had been sub-contracted to work at the showroom before he was dismissed in April but not why McLaughlin was dismissed. McLaughlin was ordered to return his uniform and heard that he would lose roughly £280 from his £430 wages. McLaughlin told Protouch owner Reading that
he would destroy the showroom vehicles. Reading warned Telfords Garage of the threats made against the showroom. McLaughlin pleaded guilty to making the threats. Defence solicitor Geoff Clapp said that he lost his temper after hearing he would lose some of his wages, which made him feel he had reason to make the threat. McLaughlin was given a 12-month community service order and a curfew from 8pm to 7am for 10 weeks in May.
BREAK-IN
Jaguar X Type and two Porsches are stolen in raid on Glasgow garage LUXURY cars were among six vehicles worth a total of between £75,000 and £80,000 which have been stolen from a garage in Glasgow’s east end. The used cars were taken during a break-in at Sherwood Garage, Baillieston Road, near Mount Vernon, between 11pm on Sunday, May 19 and 1am on Monday, May 20. The cars stolen during the raid were a Jaguar X Type, a black Porsche Boxster, a black Porsche Cayenne, a silver Audi S3, a black Ford Focus ST and a blue Ford Fiesta. Police have appealed for anyone with information to come forward. They said the entrance to where the car keys were kept had been forced. Det Con Graham Harries said: ‘There is a local bar close to the garage and I am appealing to anyone who may have been in the pub or in the area around the time of the theft.’
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Manheim acquires EVS Online Auctions bit.ly/Manheimdeal
Workshops brace for influx after companies post recalls Toyota, Nissan and Kia pinpoint models with possible faults
T
oyota, Nissan and Kia dealers should ready themselves for a wave of workshop activity after independent recalls from the manufacturers take effect. Kia is recalling a plethora of models for a ‘possible’ faulty brake light switch, while Nissan is concerned about a faulty steering wheel on its Micra model and Toyota is recalling its Prius hybrid for a faulty brake pressure accumulator. Nissan is recalling the largest number of cars in the UK. Worldwide the company is recalling 841,000 vehicles. In the UK, the recall affects 133,869 models of the Nissan Micra, built between December 2, 2002 and May 12, 2006 in Sunderland. Nissan said that the bolt used in the steering wheel may not have been screwed on correctly but that there was no danger of sudden failure. However, with customers’ safety and best interests in mind, Nissan says the recall is necessary because if left unchecked it could eventually lead to damage to the steering column. So far, no accidents involving the cars have been reported, Nissan said. But drivers will notice if the steering wheel is getting loose, the carmaker added. Nissan says that the issue will be resolved by tightening the bolts or replacing entire steering wheels. A Nissan spokesperson in the UK said the repair would take roughly 15 minutes. The rest of the global recall affects the Cube — based on the Micra and produced in Japan between 2002 and 2006. Korean giant Kia is recalling more than 25,000 cars in the UK for a ‘possible’ faulty brake light switch. The company has announced that it wants to replace the brake lights on 25,192 vehicles built between 2006 and 2011. A number of Kia’s models is affected — namely the previous model Carens, Sedona, Sorento and Sportage, some current Sorento and Soul models, and a very small number of Optima models.
From top: Nissan Micra, Kia Sportage, Kia Sedona and Toyota’s Prius
RESULTS
Profits rise for Caffyns Group DEALER group Caffyns has increased profit before tax from £1.45m to £1.52m. The Caffyns group – which represents Audi, Land Rover, Seat, Skoda, Vauxhall, Volvo and Volkswagen – closed three underperforming businesses and sold another four in the period, which resulted in underlying trading profits before tax over the period increasing from £564,000 to £1.22m. Caffyns chief Simon Caffyn said: ‘We are pleased to have improved our underlying trading profits after a period of restructuring.’
ACQUISITION
Ridgeway goes Land Rover
In a press release, Kia Motors UK said: ‘Ongoing monitoring of vehicle operations and research and development checks have discovered that in certain circumstances the faulty switch may cause the vehicle’s brake lights to not illuminate — or may not turn off after the brake pedal is released.’ The problem is caused by carbonisation on the switch contacts that can lead to the electric current being interrupted. ‘The problem does not affect the braking performance or the operation of anti-lock brakes in any way. Kia Motors (UK) Limited is not aware of any accidents being caused by this problem,’ the press release adds. Toyota is recalling 4,947 cars in the UK for a faulty brake pressure accumulator. The company announced that
approximately 242,000 third-generation Prius models built between March and October 2009 have been affected globally, 4,947 of which are registered in the UK. Having diagnosed the problem, Toyota says the issue originates from the brake pressure accumulator, which consists of a metal plunger containing brake fluid, encased in a metal housing. In a press release Toyota says: ‘There is a possibility of a fatigue crack developing in the bellows through vibration of the plunger during driving. Should this happen, nitrogen gas could leak into the brake fluid and cause the pedal stroke to become longer, resulting in decreased braking force. Toyota has received two reports of the problem in the UK, among a total of 93 worldwide. It has not received any reports of accidents or injuries related to the issue.
THE Ridgeway Group has made its first foray into the Land Rover brand by acquiring a site located in Cumnor, Oxford, from Hartwell plc for an undisclosed sum. All staff formerly employed by Hartwell Land Rover Oxford will transfer to Ridgeway, increasing the company’s workforce to over 1,100 employees. John O’Hanlon, Ridgeway Group’s CEO, said: ‘We are delighted to have the Land Rover marque in the Ridgeway stable and in the month that the brand marked its 65th anniversary.’
I DEALERS
46 will sell BMW i cars BMW has revealed the 46 dealers will be supplying the firm’s ‘i’ electric brand. Each dealer will have specialist technical capabilities allowing them to carry out repairs to the vehicles. A wider service network is planned to offer extended coverage for the general service, and maintenance. CarDealerMag.co.uk | 15
DASHBOARD.
Ford chooses Basildon to showcase pan-European look for retail areas ‘Go Further’ style designed to end customer confusion in dealerships’ showrooms
F
ord will begin rolling out its new look and feel for its retail areas across its dealerships this year, after showcasing the look at Essex Autogroup’s Basildon dealership. The new design features brightly-coloured stands and displays guiding customers through the dealership. Claire Hepworth, Ford service marketing manager told Car Dealer the UK was the first market to receive the new pan-European look. ‘The new retail look and feel is part of a strategy change at Ford, which demonstrates that we go further for customers,’ she said. ‘We are demonstrating, in dealerships, Ford’s slogan of Go Further.’ The new look is scalable for small, medium and large dealerships and includes a bright orange ‘Hello’ welcome desk, relaxation areas with iPads and sofas, a large display for brochures, colours and materials, a section called ‘Test Drive’ where models are displayed and a ‘Thank you’ area outside, where handovers take place. The new look is designed to ease confusion for customers who can walk into a dealership full of
desks and be unsure where to head first. Phillip Maskell, managing director of the Essex Autogroup which runs the Basildon Ford dealership where the new look was launched, said the new style was a subtext of Ford’s new global strategy. ‘Ford has moved from being a multi-brand company worldwide, with brands such as Land Rover and Jaguar, to focusing on just one brand, the Blue Oval.
‘The company slogan is ‘Go Further’, and the new style showcases this to customers within every dealership.’ The Basildon dealership, which was a new-build in 2007 and built on 5.5 acres of land acquired from Ford, sits at the head of Ford’s Technical Research Centre, its largest in Britain. The dealership has 26 service bays and space for 110 used cars around a dedicated Ford Approved Used Cars pavilion.
BlueService marks fundamental change in service strategy FORD has announced a fundamental change in its customer service strategy with the launch of new service pack Ford BlueService. Ford BlueService is a coming together of Ford services — and the launch of some new ones — aimed at helping dealerships to retain loyal customers through improved aftersales care. The package is open to Fords of any age, so dealerships can attract custom from any of the owners of the 5.6m Fords on UK roads. Jon Wellsman, director of Ford customer service, said dealers would benefit from the new package. ‘By offering customers a service package as thorough as Ford BlueService, they are giving them a reason to come back time and time again to their dealership, giving them the opportunity to perform servicing, offer vehicle health checks and even get the customer into their new Ford.’ Ford BlueService includes a free electronic health check, online service booking, Ford Assistance, Ford Accident Management and a Ford One Call helpline, with a single number to ring for any service. Ford customers will also ��| CarDealerMag.co.uk
have the chance to boost their Nectar point balance with two points for every £1 spent. Customers can cherrypick which services they use but the whole scheme is free to the customer. Jon says the key to Ford BlueService is its ability to ‘win the loyalty of customers by offering a great service to go with the great product’. But the challenge will be for both Ford and its dealer network to deliver on all the promises which every authorised service centre
has agreed to meet. Jon explains that even though many of the needs are the same, owners of used and new cars may have some needs that are very different. To further entice customers of older vehicles who may have budgetary constraints, Ford will shortly be offering a servicing credit card through a financial partner, which will allow customers to pay for servicing over a period of time. There will also be many more offers specific to owners of used cars, including prices that are standardised nationwide to give owners of used cars more confidence when having work done through a Ford approved servicing centre. It’s all part of a £7.5m investment from both Ford and its dealership network, which includes new point-of-sale advertising, new equipment and training for every one of Ford’s 650strong service. The launch of Ford BlueService coincides with the roll-out of the new look and feel for every one of Ford’s dealerships. ‘Ford BlueService is part of a new way of working to retain the loyalty of Ford customers,’ concluded Jon.
Warrantywise
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0800 001 4551 CarDealerMag.co.uk | 17
AWARDS.
Calling used car dealers, It’s time to get voting... Our Used Car Awards in association with TV’s Mike Brewer return... and they’re better than ever!
T
he industry’s only awards for the used car sector have returned – and they’re bigger and better than ever. Without doubt last year’s most prestigious event for Car Dealer, the Wheeler Dealer Awards were not to be missed. And the good news is that they’re back at The Brewery in London on December 2. Sporting a new name, the Car Dealer Used Car Awards sees us teaming up with Mr Wheeler Dealer himself, Mike Brewer, to recognise and celebrate the very backbone of
USED CARAWARDS
CarDealer
UK automotive plc – the used car industry. We’ve added more categories for dealers to nominate themselves in, and we’re making sure the Christmas party feeling is as good as ever. Attendees will enjoy all-youcan-drink beers and wine, a delicious three-course meal, live entertainment and a disco. with a delicious threecourse meal on offer and an all-you-can-drink bar. On December 2, we will be handing out awards in 17 different catagories.
IN ASSOCIATION WITH
WHEELER DEALERS
You’ll notice the categories are varied and open to any dealership, no matter how large or small, and we are accepting entries now. If you’re wondering how you can go about nominating yourself and – hopefully – a few other dealers who you think deserve a mention, well, we’ve made it easier than ever this year – simply type bit.ly/UsedNoms13 into your favourite web browser or scan the QR code below to bring up our nominations form. Just fill in the categories you want to – and we’ll do the rest. It couldn’t be any easier. If you’re struggling to think of nominations for a specific category, don’t worry – you can leave
Used Car Awards categories 1. Used Car Dealership of the Year Under 50 cars
This award is given to the dealer who provides the best all-round service from a site that deals with 50 cars or fewer.
2. Used Car Dealership of the Year 51-100 cars
For this award we are looking for the dealers who excel in this middle part of the used car market – 51-100 cars.
3. Used Car Dealership of the Year – Over 100 cars
This end of the used car market is a pressurised area to be in, so we’re looking for the dealers who give the best all-round performance in dealing with more than 100 cars.
4. Used Car Dealership Group of the Year We’re looking for the dealer who gives the best allround performance across a number of sites – not just one.
5. Manufacturer Used Car Scheme of the Year
This award honours the best official manufacturerbacked Used Car Scheme of the Year. Last year’s winner, Nissan, was rewarded for its Cared4 scheme. Associate your brand with the big fish by putting your name alongside this popular gong.
6. Manufacturer Used Car Marketing Scheme of the Year – NEW
A new accolade for our 2013 Used Car Awards, this gong aims to reward the best official used car marketing scheme. Manufacturers are putting more and more effort into marketing their used cars from the top level and this award will recognise the very best adverts or initiatives.
7. Used Car of the Year
Using data from the industry trade bibles as well as advertising portals we’ll reward the most popular used car. Residual values, popularity, profit opportunity and more will be considered by Mike and his judging panel when choosing the winner. Last year’s winner was the BMW 3 Series and the German firm was delighted to collect the award.
8. Best Performing Used Car of the Year Again, using data from the trade price guides as well as other sources around the remarketing industry, this award will mark the very best performing used car. Last year Ford collected the coveted gong from Mike for its appreciating C-Max MPV!
9. Best New Used Car Dealer of the Year – NEW
Another new award for 2013, this gong aims to mark the efforts and tenacity of a dealer that has managed to set up and make a success of the used
car business in 2013. Association with this new award will give sponsors the perfect foot-in-thedoor with these ambitious new dealers.
10. Used Car Finance Product of the Year - NEW
Finance plays a vital role in the process of selling second-hand cars and this award will be handed to the finance company or broker that has helped dealers the most. For this award, we will be taking nominations from the ground troops in the motor trade to find the winner of this new award.
11. Dealer’s Dealer of the Year Award – NEW
There’s nothing like recognition from your peers in any industry, which is why this new award for 2013 will be so very special. We’re very excited about this award and we’ll be taking nominations from dealers as to which of their peers they feel is truly deserving of this special gong before Mike and the judging panel help decide the winner.
12. Used Car Sales Team of the Year
This was one of the most fiercely-fought categories last year, with the Hendy Group going home as the victor – and this award is likely to again be a tough battle in 2013. Behind every great dealership, there is a great team who work together seamlessly – and it’s that team this award will mark.
Nominate by going to bit.ly/UsedNoms13 or scan this: ��| CarDealerMag.co.uk
Alfa Romeo dealer gets Fast & Furious bit.ly/AlfaFast
one or two blank. Do get your thinking caps on before you fill it out though – we’re counting on YOU to nominate the dealers that really deserve recognition. In the next few months, shortlists for each category will be drawn up by our panel of judges – which will be chaired by Mike – and the winner and two highly commended winners will be invited to our gala awards night. And if last year is anything to go by, winners and highly commended winners will be going home with a special award indeed. So how did 2012’s event go? Over to Brewer himself: ‘Last year’s event was absolutely cracking! It was the first time we had put the event on and it couldn’t have gone any better. It was brilliant to celebrate the true heroes of the used car business, because all too often this area of the industry is wrongly overlooked. This industry is one where a lot of back-slapping goes on – and it was great,
13. Used Car Sales Manager of the Year Good salespeople don’t necessarily make the best managers – but some manage to achieve the transition. This award marks those brilliant managers who juggle the pressures from on high with ensuring their teams are doing their jobs brilliantly.
Running a successful used car dealership isn’t easy. This award will recognise those that not only manage it, but absolutely excel in this competitive arena. For this award, we’ll take nominations from their teams and peers to ensure we find the best of the best.
15. Upsales & F&I Performance of the Year
Selling a used car is only one part of a great sales person’s mission. With every sale, there is the opportunity for selling other products and services – and it’s often these add-ons that make the real difference to a dealer’s bottom line. Our winner will be a salesperson who truly excels in this area.
The canny dealers know that cultivating a used car
...or scan the QR Code
bit.ly/wheelerdealerawards thanks to our awards last year, to finally see the used car industry and the people who work in it get the credit they deserve.’ And on this year’s event, he added: ‘I really do urge you to take part and get nominating yourselves and others in this business. You’ll get
USED CARAWARDS
CarDealer
14. Used Car Dealer Principal of the Year – NEW
16. Best Used Car Customer Care
See the video of the inaugural Wheeler Dealer Awards at
IN ASSOCIATION WITH
WHEELER DEALERS
customer can create one for life – a loyal supporter who’ll return year after year for a new car. But it’s only those dealers that manage to look after their customers who succeed here. This award recognises the dealers who pull it off with every sale.
17. Used Car Website of the Year
Every dealer that wants to sell needs a decent shop window – and in this digital age, it’s their website that creates the first impression, not their showroom. Even the smaller fish can compete with the big guys in the digital pond, and we’ll be marking the very best with this gong.
18. Best Dealer Used Car Marketing Scheme of the Year
In last year’s award Evans Halshaw walked away with this gong for its brilliant James Bond cars viral marketing project. It’s unique schemes like this where used car dealers have thought ‘out of the
some great publicity from the awards if you’re lucky enough to be nominated and you’re sure to have a great Christmas party. Get nominating!’ So if you want to be in with your chance of winning a prestigious gong, check out the categories and send in your entries. Good luck!
box’ to create demand that this award aims to celebrate. Associate your company with this creative thinking by sponsoring this gong.
19. Used Car Product of the Year – NEW
This award is for the used car suppliers out there. Whether that’s a brilliant online sales portal or a clever warranty scheme that helps dealers sell more cars, this award will celebrate the very best. We’ll look at nominations from dealers very closely to help find our winner.
20. Outstanding Achievement of the Year
This special award looks to recognise the dealer or dealership personality that has achieved something truly remarkable. Whether it’s amazing sales figures, brilliant upsales or outstanding customer service, this award will be handed to a truly talented individual.
21. Lifetime Achievement Award
Last year’s winner, John Tordoff of JCT600, was a worthy inaugural winner for what was the highlight of the Used Car Awards night. For 2013, the judging panel will once again be looking for a motor trade big hitter to reward for their lifetime of service to the used car industry.
Used Car Awards in association with... CarDealerMag.co.uk | 19
dashboard.
Skoda was sold with major MOT faults Unroadworthy £400 car results in bill for £11,000
A
dealer has been fined more than £5,000 after selling a car with major MOT faults. A R Motors of Oxford Road, Princethorpe, Warwickshire, sold a blue Skoda Felicia Estate with eight major MOT faults to a Coventry woman for £400 in July 2012, according to the Rugby Observer. Each fault would have failed an MOT test. The dealer, Akmal Riaz, 44, of Astley Lane, Bedworth, was fined £5,500 for four offences and ordered to pay £5,000 in costs. The dealer pleaded not guilty to selling an unroadworthy vehicle under the Road Traffic Act 1988 but was found guilty and fined £2,000. Riaz was ordered to pay £400 compensation to the customer, a victim surcharge of £15 and £5,000
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towards prosecution costs. An expert vehicle examiner employed by Warwickshire County Council’s Trading Standards Service to inspect the Felicia, identified eight problems which made the car dangerous to drive — the most serious of which was missing nuts making the front suspension unsafe. Riaz pleaded guilty to two offences under the Consumer Protection from Unfair Trading Regulations 2008 at Nuneaton Magistrates’ Court on May 24. The two offences amounted to posting a deceptive eBay advert and providing a receipt stating the Skoda was ‘sold as seen’. Riaz was fined £1,500 for each of the two offences and a further £500 for pleading guilty to an offence under the Companies Act 2006 of providing a receipt that did not include his name. Riaz’s dealership has since moved to Banbury Road, Southam.
CROWN COURT
Unfair commercial practices lead to hefty fines and jail warning in case of default A CAR dealership and its former owner have been fined a total of £12,000 because of ‘unfair commercial practice’. According to the Plymouth Herald, Motor City (Plymouth) and Michael Haxby were fined after being convicted of four counts of engaging in unfair commercial practice. Plymouth Crown Court was told that Haxby, 57, handed a leaflet to a customer which said the dealership was a ‘Trading Standards Partner’. The same claim was on the company’s website. However, the showroom had not been approved by the city council’s Trading Standards department. Haxby, of The Elms, Stoke, had denied two individual counts of engaging in an unfair commercial practice in June 2011. Judge Graham Cottle fined Motor City (Plymouth) £5,000 on each charge and Haxby £1,000 on each charge. He also ordered Haxby and the company to pay £10,000 in costs.
SMMT appoints ex-Bentley man as new chief exec bit.ly/smmtchief
Dealer challenges car parking rules Council allocates just two spaces to Wessex Garages in Bristol
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Bristol-based car dealer which employs 75 staff and has 60 customers a day has been offered just two parking spaces under new council rules. Wessex Garages, which holds a Nissan franchise, has been offered the spaces as part of a Bristol residents’ parking zone, despite employing so many staff in the city. According to the Bristol Post, staff members who drive to work and customers who bring their car in for servicing and routine maintenance may no longer be able to do so thanks to the new parking zone. Wessex Garages’ managing director Keith Brock says he’s been left with no option but to take legal action, after repeatedly trying to contact the local council himself and employing Bristol firm Transport Planning Associates to do so. The business, which has been at the site in Pennywell Road for two decades, may have to move out of the area because of the new parking zone. The zones have been created under the mayorship of George Ferguson in an attempt to reduce
congestion by stopping commuters parking in residential streets during the day. Brock told the Bristol Post: ‘I see where George [Ferguson] is coming from — we do need to reduce congestion in the city. But it’s the way it is being railroaded through that doesn’t seem right. ‘We employed TPA when we first heard about the scheme, as I thought it would be the best way to represent our case to the council. ‘On the back of the council not replying to them or me, and with time running out, I have appointed solicitors Osborne Clarke. I have resorted to asking them to look into how the council has consulted, because they [the council] will not engage with me
or TPA to work on an alternative. The one reply I had from the council said that they would only meet with me after the RPZ [Resident Parking Zones] had been put into force — by then it would be too late.’ The new resident parking zones right across the city are believed to be costing £10m. Brock said he was encouraging his staff to cycle to work and was installing showers. ‘We have been here for 20 years and have grown and prospered, and that’s hopefully what the mayor wants for Bristol businesses,’ Brock went on to say. ‘All of a sudden, in the last 12 weeks, being based here has become a disaster.’ The Mayor said: ‘The whole point of the RPZs is to reduce the number of commuters parking on the streets and to reduce congestion from commuter traffic. ‘It is wrecking our air quality and clogging up the roads. I’m afraid Mr Brock’s staff are contributing to that problem.’
CarDealerMag.co.uk | 21
dashboard.
Vertu buys Albert Farnell group in Yorkshire from Co-op Motors Purchase marks company’s first move into selling Land Rovers
V
ertu Motors has announced it is to acquire the dealer group Albert Farnell Limited for £31m from Co-operative Group Motors Limited. Farnell has three Land Rover dealerships in West Yorkshire, and the acquisition marks Vertu’s first entrance into selling the premium British marque. In the year ended December 31, 2012, Farnell recorded revenues of £113m and operating profits of £3.9m. Vertu says Farnell will form a new division within its business and Jatinder Aujla, the current operations manager at Farnell, will be appointed to head that division. In further announcements, Vertu revealed it is raising £50m before expenses to help fund the purchase through a placing of shares at 38p; group revenue is up 15.7 per cent to £1.3bn, with likefor-like revenues up six per cent, in its year-end results; and that, in the year to February 28, the dealer group delivered almost 95,000 new and used vehicles. Vertu chief executive Robert Forrester said: ‘We are very pleased to announce the acquisition of Farnell, a dealership group with over 65 years’ history in Yorkshire.
Around the world
‘The acquisition is expected to be earningsenhancing in its first full year, is a high-quality business and has a leading franchise in a large market area. We welcome Jatinder Aujla, the current head of Farnell, and his colleagues to the group, and I am particularly pleased that Jatinder will head the newly established division and report to me.’ Forrester added: ‘Since Vertu was established in 2006, our strategy has been to build a highly respected UK automotive retail group by leveraging
GERMANY
US dealer group Penske says it would be interested in buying some dealerships in Germany owned by Daimler, according to Reuters. Daimler may want to sell four dealerships as it seeks to boost falling profits.
Dealer news from somewhere other than here
CHINA
It’s been reported that Dongfeng-Renault is looking for domestic dealers willing to take on the French brand. Officials say Dongfeng-Renault has already applied to sell domestically made cars directly to the government, which will allow dealerships to sell imported and Chinesemade cars side-by-side. .
USA
A strong demand for SUVs and pickup trucks has boosted sales in the US for major manufacturers. Ford and Chrysler report gains of 14 per cent and 11 per cent for May over that month a year earlier. Ford says sales of its F-Series pickup line were the best since 2005. GM says its UK sales rose 3 per cent from a year ago and overall truck sales improved by 15 per cent. Its Cadillac brand achieved a nearly 40 per cent increase. ��| CarDealerMag.co.uk
UAE
our scalable business model to acquire dealerships with high potential for operating improvement over a four-year period under Vertu’s ownership. ‘We have grown the business to 96 sites at the end of February 2013, partnering with many leading motor manufacturers, selling close to 95,000 vehicles a year.’ He added that the latest acquisition already performed at a very high level and reflected the company’s first entry into ‘the exciting British premium marque of Land Rover’.
Nissan’s UAE dealer, Arabian Automobiles, reports that sales of the Nissan 370Z have increased by an impressive 750 per cent after it repositioned its price tag in the market this year. Having put the Nissan in Porsche Cayman territory over the past few years, it has dropped the price to more realistic levels following the Toyota GS86’s lead. The 2013 307Z now has a base price of Dhs 139,000, making it an affordable Nissan sports car.
KENYA
The maintenance of Land Rover vehicles in Kenya was in crisis after it emerged that new Land Rover dealer RMA Motors Kenya was yet to start operations last month, after Jaguar Land Rover withdrew its franchise from CMC Motors and gave it to RMA group, which was unable to provide the service. It’s reported that RMA should be operational in June.
CarDealerMag.co.uk | 23
FINANCE. HONDA DEALS
Zero per cent offered on all Honda models FOR one month only, Honda is building on its current finance offers by launching fresh, zero per cent APR deals across its entire new car range. To kick-off The Honda Festival season, the firm is offering a range of top finance deals throughout the month of June. The festival offers four years’ complimentary servicing, four years’ low rate finance and four years’ complimentary roadside assistance on any new Honda purchased before the end of June, with some models benefiting from a deposit contribution of up to £1,500. These offers apply to all models from the Civic, Jazz, Jazz Hybrid, CR-V, Insight, CR-Z and the Accord. These deals are designed to build on, rather than replace, Honda’s current offers, which include zero per cent finance on selected Jazz and Civic models. These offers will enable customers to own one of these variants from just £135 and £189 per month. With models such as the new CR-V and Insight, when purchased with a PCP or HP zero per cent APR finance agreement, customers put down a minimum deposit of 35 per cent for between one to three years.
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Business is booming as new and used car finance deals tick buyers’ boxes ... and it’s not just consumer buyers who are turned on by dealers’ offers
F
inance deals are booming in the new and used car markets – and it’s not just private consumer sales, but businesses that are buying too. New figures released by the Finance & Leasing Association (FLA) show the strongest growth in the number of used cars bought at dealerships for more than two years. The consumer new car finance market remained buoyant in April with volumes up 37 per cent compared with the same month in 2012. FLA members’ penetration of the private new car registrations market in the past twelve months to April 2013 hit a new record at 7.3 per cent. ‘April was a strong month with consumers and businesses using new and used car finance to fund their next vehicle purchase,’ head of motor finance at the FLA, Paul Harrison commented. ‘The two-year-high in private used
car finance could be attributed to customers returning to that market following the release of the new car number plate the previous month. ‘Forecourt deals are competitive and customers are obviously finding what they’re after.’ Consumers bought 66,074 new cars through dealerships on finance this April, which shows a 37 per cent
increase on the previous year. The number of used cars also increased by 22 per cent up to 81,029. Similarly, the number of cars bought by businesses increased. Having suffered from a low period a year ago, the number of new cars sold on business finance in April grew to 42,293 and the number of used cars increased by 25 per cent to 4,577.
Manufacturers create cracking deals to tempt customers WITH the summer season upon us, we’re on the hunt for the best finance offers currently available on the market with zero per cent APR. Toyota is currently offering a smart deal on the new Yaris models, with a zero per cent APR plus one year’s free insurance. The quirky compact city car has become increasingly popular, especially among younger buyers. Customers can therefore finance
the Edition for just £149 per month. Meanwhile, the Trend is available for £189. These deals come with five year
Toyota warranty. Another appealing offer on the market is one from Mazda. Not only does it promise zero per cent APR, but Mazda is also offering zero deposit across the range. Starting with the Mazda2 from £160 a month over a 42-month payment period, the deal includes a £200 finance deposit, which is paid for by Mazda.
..in association with
DEALFINDER.
Latest finance deals on SPORTS CARS
scheduled payments of £249 over 34 months. This is also subject to an expected 10,000 annual mileage.
MAZDA MX-5 CUSTOMERS won’t be holding back when they find the latest deal on the world’s best-selling and most desired sportscar. Mazda is currently offering a number of
different deals across its MX-5 range. The MX-5 1.8i SE Air Con is on the market for £18,495 with a cracking deal of zero deposit and 0 per cent APR from just £255 per month. This deal is over a payment period of 42 months. Features include 16” alloy wheels, climate control air-conditioning, sports seats and a CD player with auxiliary input. Similarly, at £18,895 the 1.8i Venture is available for exactly the same deal with a slight increase in monthly payments up to £265.
PEUGEOT RCZ LIKE the GT86 and MX-5, the Peugeot RCZ is a top selling sportscar here in the UK. It’s available with strong engines, it drives well and it looks good. The 1.6 THP 156 Sport certainly appeals to hot-hatch buyers. It can go from 0-62mph in 8.3 secs, will go on to reach 133mph, but returns an estimated fuel consumption of 44.1mpg. The RCZ Sport has a price-tag of £21,595 and is available with Peugeot’s ‘Passport personal Lease’ for £275 per month over 48
time is money
Prepare for a new era
TOYOTA GT86 TOYOTA’S old-school sports coupe GT86 is now available from £24,995 with a 6.9 per cent APR representative. To accompany the APR rate, the offer also includes a five-year/100,000 mile manufacturer warranty. The diverse and tuneable GT86 is extremely popular on the market for tuners and tweakers. The 2.0-litre Boxer model produces 197bhp and can sprint from 0-62mph in 7.6 secs. This model is offered on the fixed term of a £7,649 customer deposit with
Meldrum
months. The initial rental is £2,949 with an optional final payment of £9,326.
W
e are now entering the era of the Financial Conduct Authority (FCA) and if you haven’t been on to its website to see what it is all about, then I recommend that you do (www.fca.org.uk), especially if you intend to continue to provide finance products to your customers in the future. It’s been very clear from the news surrounding the transfer of regulation to the FCA that big changes are on the way for absolutely everyone involved in offering consumer credit. The banking and insurance industries have taken a lot of criticism in the last few years (and quite rightly so) for being too focused on their own profits at the expense of their customers’ needs and so the likely reforms that are being introduced into the broader financial sector are probably long overdue. It’s now more important than ever to ensure that if your business offers financial services to consumers then you put the protection of those consumers first and foremost in all your dealings with them. And not only that but your entire sales process will need to be highly transparent while you are doing so. Therefore, it makes sense to begin looking at your internal procedures to see where any possibly contentious issues might be lurking. You may want to consider asking for some help in that search because it’s often very difficult to see all the slight imperfections that are obvious to others because of the emotional attachment we have to our own systems. I’m sure that, like First Response, your finance provider will be happy to support this exercise by bringing a fresh perspective on what is good and what needs to change as well as offering you (as an existing Consumer Credit Licence holder) some free advice to help you to prepare for life under the new regime.
‘Changes are on the way for everyone offering credit.’
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 | 25
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big mike.
All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike
Today’s used cars are better than ever before but no easier to sell T
rends are funny things… In every aspect of life, it seems that human beings like to keep up with the Joneses and that means that, very often, certain things are hot to trot, while others fall completely out of favour. I was reminded of this the other week, when I had not just one, nor two, but three MkIV VW Golf GTIs on my forecourt. A decade ago, these well-made, stylish cars were good news. And right up until a few months ago, they were still tremendous to have on your forecourt — with a vast choice below the magic 2k figure, where most of my customers spend their pennies, the MkIV was always a class above the contemporary Ford, Vauxhall and Japanese rivals. But something strange has happened. A few years ago, VW changed its marketing strategy for the GTI, after complaints from the world’s motoring journalists that the MkIV simply wasn’t ‘GTI’ enough. It had, they said, evolved from an edgy performance hatch that drivers loved into a somewhat dull, anodyne and average-to-drive trim level, beloved of estate agents and suburban mums. They were, of course, right. So the MkV GTI and beyond have been reset. They’re ‘edgy’ drivers’ cars in every respect, they glue themselves to the road, make all the right noises and are tremendously good fun to drive. Which is wonderful news for car enthusiasts, but not so great for us dealers, because the posh Golf so beloved of estate agents was always a cracking used car. They were more often than not owned by relatively wealthy folk who looked after them, serviced them with all the right bits and kept them in lovely condition until the Joneses decided a BMW X3 was essential for entering into the urban traffic battle. So now, estate agents drive German SUVs, or massacre the beloved Land Rover DNA by buying one with frontwheel drive. Late-model Golf GTIs are for committed petrolheads (and sell far fewer in the UK as a result) and there are several castoff Freelanders in the circa 10-year age bracket that can no longer find homes. The enthusiasts don’t want them, because the revhead mags tell them they’re a bit boring. The aspirational young things don’t want them either, because they can once again get a palatable finance rate on a nearly new X3 or Freelander, and as a result the MkIV Golf GTI has found itself as just a classy banger, a few sovs more expensive
Big Mike Our man on the inside spills the beans on the car business...
than the equivalent 1.4 or 1.6 models with their bin lid hubcaps and Velcro seat fabric. I know which one I’d rather drive. But that’s the rub. The standard MkIV Golf remains a popular car with younger drivers because in low power form it’s cheap to run, relatively inexpensive to insure and, well, it’s a Volkswagen, which means it doesn’t feel like it’s going to fall apart next week, and it has those funky blue dashboard lights which are one of the best-ever car company marketing ploys. Often copied, never bettered and, for some reason, extremely popular with the girls… Conversely, the GTI has those three plastic letters glued to its tailgate. It doesn’t matter that the 2.0-litre performed about as well as an asthmatic athlete with holes in his trainers and that the 1.8 turbo was quicker, but all that did was expose the limitations of the chassis (if you drove it like
‘Under-25s make all the right noises, fall in love with the car and then call back crestfallen’ a tool — but to most people it was perfectly fine). No, those three letters mean ridiculous insurance premiums, especially for anyone aged under 25 and male, who are the people to whom a cheap GTI appeals. Of the three cars on my lot, all have attracted interest from those very individuals. They make all the right noises, fall dutifully in love with the car, and then call me back the following day, crestfallen, because their annual premium is more than the sticker price… Right now, then, the MkIV Golf GTI gets my vote as one of the best cheap used cars that not a lot of money can buy. For little more than a grand, you’ll get a corker. And much like my Audi column last month, it goes to show that today’s generation of older used cars is better than ever before, even if it doesn’t make them any easier to sell… Meantime, if you want a MkIV GTI, give me 15 hundred quid and take your pick — black, silver or green…
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 | 27
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bAGGOTT.
Have you got our FREE iPad app? Download here bit.ly/CDMiPad
I’ve just about had enough of the world’s biggest auction site
I
t claims to ‘connect buyers with sellers worldwide’ but if my recent experiences are anything to go by the only thing eBay can claim to put you in touch with these days are freaks, timewasters and lowlife. Things seem to have taken a real turn for the worse in the shopping aisles of the world’s biggest virtual car boot sale — and I bet I’m not the only one out there that’s just about had enough of it. Before I really kick off, let me explain. eBay hasn’t always been like this. Really it hasn’t. I’ve sold hundreds of things on the site over the years. From old motorcycle kit to kids’ toys and computers — many things have been and gone, paid for via Paypal in a matter of minutes, wrapped in whatever scrap paper I can find, covered in tape (Sello, electrical or tank, depending on what’s left in the garage) and then deposited at the post office never to be seen again. I’ve bought hundreds of things on the site, too — and more often than not for a bargain price. I’ve always paid for the items immediately and patiently waited for them to arrive before leaving some positive feedback for the sellers. There used to be a real community feel about the site — everyone wanting to conduct themselves properly in the transaction process so that everything rubbed along nicely. Like one big happy cult. Not any more. I don’t know about you, but I’m finding the good experiences are the exception these days rather than the rule. As the website — which launched back in 1995 under the name AuctionWeb — has grown over the years, so too have the dodgy members. Maybe I’ve just been unlucky, but of late they all seem to be buying from me. If it’s not some text-style direct message (Ow much 4 dat car on by na?) it’s someone asking you if you’ll swap the car for two horses and a goat. Or a Kawasaki motorbike. You may remember last month my hate-filled Abu Hamzaesque rant at the eBay member that messed me about for a week after winning the Metro I’m trying to sell as part of the Brewer v Baggott £50 car challenge. Despite a week of text messages from the illiterate fool, in which he seemed to use the words ‘mate’ and ‘pal’ in place of full stops and commas, he decided several days later that despite promising to come and pick the car up three times he no longer wanted it because ‘he’d lost his job’. He told me I’d have to ‘relist it’. Yeah, I know that, thanks to you. I spent the week of the resale thinking of suitable punishments for the time-wasting sheep’s gonad but the anger eased when the car sold again — albeit for £60 less than before. By now I just wanted shot of the doom
James Baggott *EDITOR’S NOTE: Maybe it is just you James*
blue OAP transporter and thankfully the emails started positively: ‘I’ve just found out I’ve won your wonderful Metro would it be possible to collect on Friday?’ The fact he’d just found out, three days after the listing ended, should have set off alarm bells — surely he must have known he was bidding? Still, two days passed before I heard from him again: ‘Sorry for not getting back to you sooner but I have to fly out of the country and will no longer be able to buy the car’, came the cryptic message. Fly out of the country? Where? When? Why? Was he an illegal alien? A Metro-loving spy? Surely he must have realised that at some point he would have to ‘fly out of the country’? Was he never coming back? Did he know the plane wouldn’t make it? Was it the worst excuse ever to not proceed with an eBay purchase? Perhaps, the latter. Maybe I’ve just been unlucky. Maybe everyone was buying the Metro after some Booze Bidding — when, after a night in the pub, buying a C-reg Austin with no MoT or tax
‘eBay loggers in should take an intoxication test’ SEEMS like a good idea. I really do think eBay should ditch its current password log-in system and have an intoxication test that won’t let you log in if you’re drunk, but I digress. It’s not just cars, though. I listed an iPhone recently and the winning bidder contacted me to ask if I wanted to relist it because he ‘didn’t have enough money in his account’. And this guy wasn’t joking. Surely he’d have checked he could afford the phone before getting caught up in the excitement of the auction? No, it seems that would have been too sensible. I can’t imagine what it must be like for those of you trying to run a business on there. A scroll through the thousands of cars listed on eBay Motors points to many dealers using the site. I’m sure the freak ratio to pukka punter count for you is far higher than the GCSE-dodgers I seem to be encountering. I’m wondering if eBay is worth the hassle. It might be a little cheaper than traditional classified sites but at least they filter out the freaks. You know if the buyer turns up at your dealership that he’s at least a little bit serious. OK, they might haggle but that’s what we like isn’t it? It’s called car dealing for a reason. I’d love to know whether it’s just me that appears to have a time-waster magnet, or is it inherent in eBay selling now? Let me know by tweeting me @CarDealerEd.
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 | 29
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Bond Aston Martin comes up for grabs
Aston Martin DBS has a history to die for thanks to movie and TV appearances
I
t’s not every day a quality used car with a heritage background comes into the showroom. But when one does, it gains plenty of recognition for independent specialist dealers. An example of this is V8ight Ltd, a small, private dealer who specialises in dealing quality used classic and premium cars. New to the selection is a vintage Aston Martin DBS. But this is no ordinary Aston, in fact, it’s the very one that starred in the James Bond movie On Her Majesty’s Service and Roger Moore’s television series, The Persuaders. The car was registered on April 10, 1969 and its licence plate conveniently reads 008 999. Since it’s been privately-owned, the DBS has had two owners, the first of whom owned the car for 22 years. A vehicle like this is bound to attract some attention, and ultimately raise the awareness of small dealers. Owner and director of V8ight Ltd, Giles Canwell, said: ‘Any vehicle like this one, with such an interesting history, definitely helps businesses like me, and raises the awareness of the company. ‘Having the opportunity to list a vehicle, which is essentially famous, can only raise your standing and overall reputation in the industry. As a private dealer, this is definitely the sort of recognition we’re looking for and
‘‘
Early 1969 DBS packs a mighty engine. It’s the same unit which appeared in another Bond Aston – the DB5 shows our customers the kind of high quality cars we deal with. The Aston Martin DBS 6 has the same 4.0-litre straight-six engine with twin overhead-cam as the classic DB5, which carries an almighty 325bhp. It’s been through extensive restoration work by a top Aston Martin restoration firm and the engine has been reconditioned. More importantly, it currently has just 12,000 miles on the clock. ‘As well as the DB5’s background, the extensive restoration work and engine reconditioning process
Listing a famous car can only raise your overall reputation in the industry
it’s been through adds value and reverence to its history,’ Canwell explained. ‘As a specialist private dealer, I sell a range of topend vehicles from Porsche and Jaguar to BMW and Audi. I’m looking forward to seeing the interest we receive from our latest edition.’ If you’re interested in this slice of TV and movie history, log-on to autotrade-mail.com and make an offer. With its rich history, low mileage and intensive development, there’s bound to be plenty of interest. This is just one of a number of interesting cars currently appearing on the online remarketing website Autotrade-mail. [CD] To see the car, visit autotrade-mail.com to start your free 14-day trial. CarDealerMag.co.uk | 31
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Q
I’ve heard recently that the small claims limit has changed. What has it changed to and what does this mean for me as a business owner? SP, York
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 have found out that a member of staff is posting offensive comments on their personal Facebook account. While they aren’t about the business, members of the public have found them to be offensive, as they are the employee’s personal opinion of certain groups within society. What can I do, if anything, to discipline this person, as I’m worried it will start to cost me business? DJ, Coventry
A
Employers need to consider who can see an employee’s Facebook page, such as customers, suppliers, competitors and other members of your staff, and how this could negatively impact on your business. As previously reported, knee-jerk responses are never seen to be favourable. While the posts may have seemed to be harmless comments and observations/opinions by the employee, they highlight that person’s personal stance on an issue. If your staff place
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their personal views on a social media site while stating that you are their employer it could be detrimental to your business. The question will be what actual detriment has it caused? In a recent case, an employee of a local housing trust posted on Facebook his opinions on gay marriage. The housing trust issued a disciplinary action for causing damage to reputation, which the employee appealed against. The case reached the High Court which deemed that there had been no breach of contract by the employee as there was no ‘real risk’ of reputational damage. This case highlights the risk that still surrounds disciplinary action against social media postings. Employers should consider; n Are the posts so offensive/controversial as to cause offence to the public reader? Or is it just that you personally find them offensive? n Are the posts in any way connected to your business? n What is the potential readership of the post?
A
The rules have changed and claims made now can be heard in the small claims court if they are worth less than £10,000. The procedure remains the same, except the allocation questionnaire has been replaced by a more streamlined directions questionnaire. Remember that legal fees cannot be recovered in this court, so this may have more of an impact on a small business, as you will be able to be your own litigant in cases up to this new claim limit. n Have you received any complaints from members of the public about the post? n Have your staff been briefed on what is and is not acceptable in these situations? What social media policy do you have in place? n Does the employee also have access to a business social media account? If so, have they been briefed as to what is and is not acceptable usage on the account?
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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forecourt.
Jeep Grand Cherokee Nigel Land, UK brand director for Jeep and Chrysler, chats to Car Dealer about the American 4x4 brand Do you have plans in motion to improve the visibility of the Jeep brand in dealerships? We are currently undergoing a transitional phase of our dealer network, aiming to add new dealers to the group and investing in the facilities and staff at our current sites. There will be a large Jeep presence within the network and, thanks to the nature of the vehicle, it stands out, it has presence and won’t go unnoticed. There will also be a national advertising campaign to raise awareness and we like to partake in events. We will once again take part in the Canary Wharf motor show where families can enjoy some off-roading, archery and other outdoors-y activities that reflect Jeep’s rugged imaged. Oh, and in true American style, there will be a big BBQ. Do you encourage dealers to organise events? We encourage our network to organise off-site events that can be marketed through traditional methods. Grabbing customers’ attention out of the dealership environment is the best way, so involvement with the local gymkhana, for example, can be a solid way to raise awareness. The current trend for ‘soft-roaders’ doesn’t seem to be fading. Any plans for a mini Jeep SUV? We will have a small Jeep that we would look to launch towards the end of next year. It is very important to make an impact in this market, but ultimately it has to remain a capable off-roader like all Jeep models. The vehicle will also be relevant to the UK market so that will mean the right powertrains and specification
will be important. Which Fiat group brand will Jeep sit beside in UK dealerships? We feel that Alfa Romeo is the most natural fit for the Jeep brand as the dealer approach within these sites is spot-on. Jeep is a product, like Alfa Romeo, that is born from emotion. Customers want to spend time with a salesman to discuss the product at length. It is a far more technical sale than many of the models in the Fiat line-up, for example. What are the big plans for the rest of the year? Once the Grand Cherokee is launched we will then shift focus to the all-new Cherokee. It will be a tough one as we have already had some apprehension from the hardcore Jeep following in America. They are worried we have gone ‘soft’ with it, so it is up to us to get the product in front of customers and prove it is more than capable when the going gets tough. As for the styling, it’s designed to be challenging but I can assure you, it looks stunning in the flesh. What are your main goals for the next five years? We need to get the Jeep brand back into the public conscience. We slipped slightly during recent tough economic times but, thanks to some great new product, we have the platform to drive forward. We also want to improve network coverage to meet consumer expectations and that means seeking new partners and educating as well as supporting our current network. Overall, I feel the next five years will be very positive for us.
STYLING
Key changes to the 2014 Grand Cherokee are the looks. Imposing LED lights and bling grille headline the styling revisions.
on test
Leon Poultney gets behind the wheel of the refreshed Jeep luxury 4x4 What is it? This is refreshed American 4x4 features a new eight-speed ZF gearbox which is said to improve comfort and refinement while the interior receives a big dollop of opulence. The exterior styling has also been treated to a dash of ‘European’ glitz in the form of LED running lights, chrome accents and a more sculpted front grille and backside.
What’s under the bonnet? The 248bhp 3.0-litre V6 diesel will likely be the ��| CarDealerMag.co.uk
bestseller but petrol fans can opt for a 3.6-litre V6, a bonkers 5.7 litre V8 or the completely lunaticasylum-spec 6.4 litre V8 found in the ferocious SRT model. There is also an entry-level, 188bhp V6 diesel that will only be available in basic Laredo trim. Jeep believes this engine will make up under five per cent of UK sales.
What’s the spec like? Five trim levels
are up for grabs and they comprise of: Laredo, Limited, Overland, SRT and Summit. Laredo is aimed at the more frequent off-roader (or pennypincher) so does away with some of the more showy interior and exterior bits of trim. It also doesn’t come with a sat-nav as standard and lacks the more competent air suspension of the pricier models. Overland, SRT and Summit are best
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The biggest changes to this 2014 model are on the inside. There are better quality fixtures and the technology is more intuitive.
the knowledge Model: Jeep Grand Cherokee Summit Price: £49,000 (estimated) Engine: 3.0-litre V6, diesel Power: 248bhp, 570Nm Max speed: 125mph 0-60mph: 8.2s MPG (comb’d): 38.0 Emissions: 198g/km Residual values (three years): tbc
OFF TRACK
target buyers:
In certain trim combinations, it can look a bit, er, Essex. But the new Grand Cherokee is as capable offroad as a Land Rover.
Owners of previous Jeep Grand Cherokee models; drivers after something different
the rivals: Range Rover Sport, Porsche Cayenne, BMW X6
Key Selling Points: equipped models and come with air suspension and added glitz. Jeep hasn’t confirmed prices for the range but we expect between £36,000 and £49,000.
What’s it like to drive? It’s exactly as you would expect an enormous V6 diesel that weighs nearly two tonnes to drive – rolling a fair bit around corners, lurching forwards under heavy braking and generally not doing a great job of disguising its mass. But it’s very comfortable at cruising speeds and extremely capable off-road – just like you’d expect a Jeep to be.
What do the press think of it? Autocar said: ‘The latest updates, in particular the eight-speed transmission, make the Jeep Grand Cherokee more worthy of consideration than ever before.’
1. Refreshed new look only adds to the imposing styling 2. Very adept at off-roading 3. Improved and better-quality interior is full of gadgets
Deal Clincher:
What do we think of it?
Few luxury 4x4s can rival the Jeep brand’s heritage in building competent off-roaders
It’s something different and it’s very difficult not to like it for that reason alone. Yes, in certain trim combinations it can look a little, er, Essex, but some will love the show business of it all.
Searches supplied by Monthly AutoTrader.co.uk searches: 182,775 CarDealerMag.co.uk | 35
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ENGINES
INSIDE
Lexus has decided not to copy rivals and offer a plentiful range of diesels. IS has just petrol and petrol hybrid options.
IS has typical Japanese design features inside which are appealing, and build quality is top-notch.
STYLING
New IS takes design of outgoing model and adds some new flair. There’s nothing that looks quite like it in the class.
Lexus IS
the knowledge
Has the Japanese luxury brand finally made a credible rival to German premium exec cars? Daljinder Nagra finds out What is it?
What’s the spec like?
It’s Lexus’ offering in the premium exec category. But to tempt customers to the Japanese brand, Lexus is stealing hybrid technology from pioneering parent company Toyota to create an intriguing new proposition in the premium exec class. The firm is offering the IS from £26,495, which makes it highly competitive against class favourites the BMW 320d and Audi A4 2.0 TDIe.
Lexus has long had a reputation for offering generous standard equipment levels, and this continues with the new IS. Entry-level SE models from £26,495 come equipped with cruise control, dual-zone climate control, automatic HID headlamps, power folding door mirrors, keyless entry and ignition and a seven-inch multimedia interface. The range tops out with the £38,495 Premier which majors on increased luxury, including a 15-speaker Mark Levinson stereo, Lexus Premium Navigation and a rearview camera.
What’s under the bonnet? The IS 300h mates a 2.5-litre fourcylinder petrol engine to an electric motor for a combined 220bhp and a CVT transmission. This combination of electric power and eco-biased gearbox means that despite the ample power on offer, the 300h emits between 99 and 109g/km of CO2 (depending on spec). There’s also a 205bhp 2.5-litre V6 petrol on offer but no diesels. Lexus feels a range made up of petrol and petrol hybrid is more than sufficient.
What’s it like to drive? Comfort and refinement are standout traits of Lexus’ saloon car range, and even though the new IS has been given a more sporting remit, it’s heartening to see that it hasn’t lost its magic. Ride comfort is impressive, even on the F Sport’s firmer suspension and only the dull roar of the tyres percolates into the cabin,
making for relaxed progress on even the longest journeys. The only sticking point is the CVT gearbox, which is at odds with the IS’s supposedly sporty nature. While it’s been fitted for worthy reasons, it robs drivers of the involvement you get with the paddleshift automatic gearbox fitted to the lesser IS 250.
What do the press think of it? Auto Express said: ‘The new Lexus IS excels in some areas and falls woefully short in others. So for anyone that values driving pleasure and keeps one eye on economy, we’d stick with a diesel.’
What DO WE THINK OF IT? Playing to the usual Lexus strengths of comfort and refinement, the new IS should definitely be on a buyer’s shortlist. However, the hybrid drivetrain and CVT ’box, prevent its new-found sporting dynamism from being explored and exploited.
Model: Lexus IS 300h F Sport Price: £33,495 (as tested) Engine: 2.5-litre, petrol electric motor Power: 220bhp, 300Nm (comb’d) Max speed: 125mph 0-60mph: 8.3s MPG (comb’d): 60.1mpg Emissions: 109g/km Residual values (three years): tbc
target buyers: Business users, but petrol options will appeal to private buyers as well
the rivals: BMW 3 Series, Audi A4, Mercedes-Benz C-Class
Key Selling Points: 1. Bold new styling marks IS out from the competition 2. Cabin design is typical Japanese while build quality is first-rate 3. Vast range of equipment will appeal to business buyers
Deal Clincher:
The IS 300h SE is the most eco-friendly car in its class Searches supplied by Monthly AutoTrader.co.uk searches: 342,837 CarDealerMag.co.uk | 37
forecourt.
Audi RS6 Avant
the knowledge
Fast estate cars are becoming a dying breed, but Audi doesn’t agree. Leon Poultney drives its latest offering What is it?
What’s the spec like?
It’s every family man’s fantasy: A four-litre twin-turbo V8 engine that produces 552bhp all wrapped up in the exterior of a sensible estate car that can happily swallow 1,680 litres worth of luggage. The concept may be difficult to fathom but demand for molten hot estate cars remains relatively strong, with Audi shifting around 700 of the outgoing model (saloon included) in the UK with relative ease over the past two years.
This is a £76,985 Audi so it’s going to feel pretty special inside. Honeycombquilted seats, the flat-bottomed RS steering wheel and twin-oval RS tailpipes help ram home the sporting intentions but then the excellent BOSE sound system, MMI Navigation and driver information system are all added tech bonuses that come as standard.
What’s under the bonnet?
The sheer size of the RS6 Avant makes attacking tight country roads a bit of a handful. The V8 produces so much punch it becomes difficult to put it down on normal roads, despite the best efforts of the four-wheel-drive Quattro system. As a rapid missile that’s capable of transporting a plethora of goods and people, the RS6 is phenomenal, but driving it anywhere near its limit requires some serious nerve and unless you want smashed shopping, mangled children
An all-new 4.0-litre twin-turbo TFSI V8 engine with cylinder-on-demand technology replaces the 5.0-litre V10 of old. Despite dropping a couple of cylinders and 18-odd horses, the new power plant manages to propel the RS6 to 60mph in just 3.7 seconds, beating the old unit by 0.7 seconds. It also reduces fuel consumption by a staggering 47 per cent and drastically reduces emissions.
What’s it like to drive?
CABIN
The interior is, in Audi’s own words, ‘black sporty’ but potential punters should read ‘dark’. Almost everything is black plastic.
LOOKS
Buyers will easily notice the RS additions. There’s also a new ‘Quattro’ logo on the front grille. ��| CarDealerMag.co.uk
and a divorce, it’s probably best avoided when fully-laden with the aforementioned items.
What do the press think of it?
Model: Audi RS6 Avant Price: £76,985 (as tested) Engine: 4.0-litre twin turbo V8, petrol Power: 552bhp, 700Nm Max speed: 189mph (depending on spec) 0-60mph: 3.7s MPG (comb’d): 28.8mpg Emissions: 229g/km Residual values (three years): tbc
target buyers:
Top Gear said: ‘The Audi RS6 is back on form after a slightly lost couple of generations. This car has a huge sense of humour, looks ace, goes indecently fast and makes a good case for being your only car.’
Old RS6 buyers wishing to upgrade, the super-rich who have family responsibilities
the rivals: Mercedes E63 AMG Estate, Porsche Cayenne Turbo
Key Selling Points:
What DO WE THINK OF IT? The Daily Mail questioned the need for such a rapid estate when details were first unveiled, and it has a point – it is difficult to see anyone in the UK actually testing the 189mph top speed. But this isn’t a machine for the masses, it is for those who want a truly luxurious, fire-breathing motor that pops and bangs yet can happily double up as an everyday family cruiser. In that respect, the RS6 Avant is pretty much faultless.
1. Prodigious power – it has 700Nm of torque! 2. The usual levels of outstanding Audi build quality 3. Can do 189mph yet has a 1,680-litre load capacity
Deal Clincher:
It’s 47 per cent more fuelefficient than the previous RS6 Searches supplied by Monthly AutoTrader.co.uk searches: 121,760
UNDER THE BONNET
Out goes the old 5.0-litre Lamborghini engine of the old RS6 and in comes a greener 4.0-litre V8.
in association with CABIN
UNDER THE BONNET
Some nice touches mark out the e-Tron from conventionally-powered R8s such as carbon-fibre trim and a ‘power’ dial.
There’s no V8 or V10 here, just a mammoth 48.6 kWh battery cell which is mated to two electric motors that develop 380bhp.
LOOKS
R8 e-Tron looks pretty much identical to the standard R8 range, save the carbonfibre construction and different wheels.
Audi R8 e-Tron
Car Dealer gets an exclusive drive of the all-electric Audi R8 e-Tron supercar concept. Leon Poultney reports What is it?
What’s the spec like?
Some will recognise the familiar body shape but this can’t be seen as simply an R8 with an electric motor and an enormous battery pack. Audi engineers have rebuilt the machine from the ground up and that means liberal use of carbon fibre throughout the driver’s cell and chassis, lightweight aluminium used in the underpinnings and even the replacement of the rear window with a carbon-fibre screen.
This car isn’t for sale so specification opportunities are slim. Saying that, the interior is as plush, if not slightly more special, than the standard R8. Thanks to the lack of rear windscreen glass, the German marque has had to come up with a clever solution to the standard rear-view mirror. In its place sits a crystal clear AMOLED display that projects the view sent from a rearfacing camera. Very cool.
What’s under the bonnet?
What’s it like to drive?
Utterly breath-taking and slightly Replacing the normal 4.2-litre V8 or nerve-racking given the R8 e-Tron’s the more potent 5.2-litre V10 of the enormous price tag. Acceleration standard R8 is a mammoth 48.6 kWh is punchy and all that torque is battery cell which is mated to two transferred directly and instantly to electric motors that develop 280 kW the Tarmac upon depressing the right (380bhp) and an astonishing 820Nm pedal. Ground is covered extremely torque. The abundant use of carbon quickly yet it is just as rapidly fibre means that performance remains scrubbed off thanks to a blend of fiery; the e-Tron accelerating to 62mph both electric and mechanical brakes. from a stand-still in just 4.2 seconds The noise is slightly surreal, a sort of – that’s two-tenths of a second faster futuristic cacophony that rises and than the 4.2-litre V8 version. falls with throttle inputs, making the
whole experience even more out-ofthis-world and special.
What do the press think of it? Car Magazine said: ‘A clinical approach to an electric supercar that’s far from clinical to thrash around a track.’
What DO WE THINK OF IT? This is an absolutely magnificent piece of engineering that offers an insight into the future of electric supercars. Unfortunately the technology that makes this R8 lighter, stiffer and more technically advanced than its petrol-powered brother is extremely expensive. Plus, Audi engineers say that when the R8 e-Tron is driven flat out, it will deplete its batteries in around 30 minutes. It is no wonder the head of technical development at the German marque, Wolfgang Durheimer, revealed that plug-in hybrids and range-extending powertrains are Audi’s future.
the knowledge Model: Audi R8 e-Tron Price: £850,000-plus Engine: 2x electric motors, 48.6 kWh battery pack Power: 380bhp, 820Nm Max speed: 125mph 0-60mph: 4.2s Range: 133 miles Emissions: 0g/km Residual values (three years): n/a
target buyers: There are none are it’s not for sale. But if it were, it would be for the super, super rich
the rivals: Mercedes-Benz SLS Electric, Tesla Model X
Key Selling Points: 1. Supercar looks without the running costs 2. Pumps out an incredible 820Nm of torque 2. Though not for sale, points the way to future for carbonfibre Audis and Lamborghinis
Deal Clincher:
It’s an Audi R8 supercar which emits zero emissions Searches supplied by Monthly AutoTrader.co.uk searches: n/a CarDealerMag.co.uk | 39
FEATURE.
MINI SPECIAL This year sees the Mini Cooper S turn 50. James Batchelor charts its history
��| CarDealerMag.co.uk
T
here is only a small number of cars which have names as famous as Cooper S. Think Golf GTI and the like and you’d be on the right lines. In fact, if Alec Issigonis — the Smyrna-born designer of the Mini — had given his baby car a hatchback, the 1963 Austin/Morris Cooper S would have been the world’s first hot hatchback. But it wasn’t. What it was, however, was a small, fast, agile and racy little performance car that created not only a blueprint for all small cars over the next couple of decades but for fast small cars ever since. The Cooper S story really began in 1961, for if the Cooper hadn’t been given the green
light the faster Cooper S wouldn’t have existed either. John Cooper, builder of probably the most important Formula 1 car ever — the midengined Coopers transformed Grand Prix and single-seater motorsport for ever — was lent a pre-production Mini in 1959. He and his then leading Formula One driver Roy Salvadori drove one to Monza in Italy and it was on this trip that Cooper realised the Mini was the perfect car from which to create a sports car. Once he returned to Britain he badgered Issigonis to build a more powerful version of the Mini. But the genius said ‘No’. Issigonis wanted the Mini to remain a people’s car with small-capacity engines and cheap prices. Undaunted, Cooper hounded the chairman
Cooper S
of the British Motor Corporation (BMC), George Harriman, who agreed to a small production run of 1,000 cars. For every car sold, BMC would pay a £2 commission to Cooper. Fitted with a 997cc 55bhp engine and disc brakes, it was a total success. Journalists and the public adored it, and within two years a faster version was created — the S – because of popular demand. The S became THE car for track racing, rallying and for the King’s Road. It was THE car to have in the 1960s and 27,206 were made. But by 1971 the magic was over. In paying royalties to Cooper, British Leyland was losing £20 on every Cooper and Cooper S it managed to sell. They were axed and they made way for the 1275GT, but the public hardly went ballistic
for it. Throughout the late ’70s and ’80s the Mini was living on a life-support machine — and the Cooper S story was dead. But through a change in fortunes, the Japanese started to buy old Coopers and Cooper Ss in their hundreds; gamely buying UK cars and shipping them to Japan. This interest finally spurred Rover into reintroducing the Cooper and Cooper S (with John Cooper’s help) in the early 1990s. When BMW bought Rover Group in 1994, plans were quickly put into place for a brand-new Mini. BMW was going to do all it could finally to pension off the nearly 40-year-old car. A young designer called Frank Stephenson sketched his idea for a 21st century version — and it got the green light from BMW management. From
the very start, the new Mini was eventually to be available in Cooper and high-performance Cooper S variants because that’s what the public wanted. And it worked — sales took off. BMW’s Plant Oxford had to introduce three shifts and production lines were running seven days a week soon after the launch of the Mini One and Cooper in 2001. When the Cooper S arrived in 2002 sales continued to rise — and despite a blip during the 2008 and 2009 recession, sales never really looked back. Now the Cooper S name adorns all variants of the Mini family (apart from the Clubvan). But while the badge has little to do with the late John Cooper any more, the Cooper S is a classic in its own right. Like the Golf GTI, the Mini Cooper S is legendary and rightly so.
S’s big 5-0
CarDealerMag.co.uk | 41
FEATURE.
MINI SPECIAL
Munich to Mugello in a Mini
To celebrate the Cooper S’s half century, James Batchelor takes a factory-fresh car on a 630 kilometre dash across southern Europe
E
ven with the overhead lights acting like strobes, the tunnels between Marconi and Barberino are small, precious moments of tranquillity. For there’s heavy rain on Italy’s E35 tonight. Earlier, huge drops of rain were smashing so hard against the Mini’s windscreen the wipers were working overtime. But they’re resting for the moment as the last of the tunnels is dealt with. Then there’s the rain again and the road swerves left and trickles down between two large escarpments. The light’s already gloomy shade is getting ever-darker but all I have to do is follow in the wheel tracks of the two-tone John Cooper Works Clubman that Mini UK is piloting. At triple-figure speeds the Cooper S I’m in has settled into a comfortable pace and is making for a fine companion on this dusky final leg of my journey. To celebrate 50 years of the Mini Cooper S, the firm has let me take a brand new example from BMW’s headquarters in Munich, Germany, all the way south to Mugello in Italy to visit the International Mini Festival. It’s the type of journey that the Cooper S would have made 50 years ago but with a rally driver at the helm. Today it’s just me and 633 kilometres to cover before nightfall. And the weather along the way has been extreme. Weatherwise, it started in the nicest way possible. The afternoon before in central Munich, the light could not have been greyer. But as if orchestrated by the Germans themselves, bang on the hour at precisely 9am the next day, the clouds parted to reveal warm, glowing sunshine. I was given the keys to a barely run-in Cooper S Green Park Edition hatchback and some provisions packed into a Union Flag-adorned cardboard box. The Cooper S Green Park is one of the latest of a never-ending plethora of special edition Minis to have appeared since the car’s relaunch in 2001. It’s a nice little thing; British racing green over cream with a black interior and cream fixtures. On to the autobahns just outside Munich and there’s plenty of time to contemplate the modern-day success story of BMW’s Mini brand. Think what you may of the infamous Rover and BMW fall-out in the late 1990s, but the Germans have done the Mini brand proud. ��| CarDealerMag.co.uk
For that’s exactly what it is these days. For 40 years Mini was about one once-innovative car; nowadays it’s a brand. It’s a range of cars designed to appeal to different customers but which all evoke the same modern, casual and fun attitude that’s very aware of its heritage and of the past. And the modern Mini’s greatest link to its predecessor is its classlessness. Along the arrow-straight autobahns in southern Germany, punctuated occasionally by pre-bank holiday roadworks, there are all different types of Mini drivers about. As I overtake a positively ordinary black over silver Cooper, I glance at the driver. A student, most probably; the backseats crammed with overnight bags on her way to a longweekend holiday. A few miles ahead there’s another Cooper but this time in the traditional combo of red with a white roof. There are spotlamps on the grille and the driver is a lady with brilliant white hair. Meanwhile in the fast lane, pulling well over 190kph, is a tuned-up black Cooper S with headlamps ablaze. About 50 miles later it’s time for a quick sandwich and a splash of premium unleaded; then we drop into Austria. The roads are getting narrower and the driving characteristics of the other motorists are becoming ever more Italian. Our little convoy turns off the main road and heads for the Alps. The roads get even tighter and little hairpin bends crop up. We’re climbing ever higher and the rain begins to lash down, making the broken-up Tarmac smothering these sinewy roads treacherous. It’s roads like these the Cooper S laps up. Well, it would do — the original Cooper S made its name dancing on roads like these in its competition days. Though larger and heavier than the old Cooper Ss of the 1960s and early 70s, the modern S enjoys such challenges. The twinscroll turbocharged 1.6-litre engine revs keenly and the torque punches in from 1,700rpm. It means the S can launch out of corners and, thanks to one of the best front-wheel-drive chassis in the business, it flies into corners with
sheer brio. A dab of the brakes, down to second, blip the throttle, turn in, the nose washes a little wide, wait and then apply the power. It’s intoxicating. But this Cooper S will join its predecessors in the history books by the end of the year. The third-generation new Mini will appear soon and it’s expected to be that bit more like a baby BMW than the two generations before have ever dared. It’ll still be built in Oxford but the chassis and engines will be shared with future BMWs. We are
led to believe there will be five-door hatchbacks, saloons, off-roaders and many more variants. But there’s little time to ponder on the future at this moment. As we reach the top of the twisting treacherous track, the trees part and the rain stutters. Before us lies a blanket of white. As if a switch has been flicked, the rain has made way for something more impenetrable. The sinewy Tarmac is now an unbroken duvet of snow. We switch off the traction control and adopt a Swedish driving style but moments later
the wheels are spinning and the S has shrugged its shoulders and given up. Back down the way we came is the only solution — it means the S is back in its comfort zone. Through into Italy on the autostradas and there’s very little to report. A bite to eat at Lake Garda gives the Cooper S time to rest and then it’s back pounding the Italian motorways like any other modern car. But then the rain returns and we’re back in the tunnels again where this story began, hurtling
through corners at breakneck speed. It seems to go on for hours but in reality it was just 30 special minutes of practically flat-out driving. As we trickled into the hotel car park for our overnight stop, my time driving the Cooper S was over. The next day I was to drive a 1997 Rover Cooper to the Mini Festival. But that was six hours away. Six hours to relive my glorious journey in one of the finest-driving small cars of today — and a worthy son to an immortal father. CarDealerMag.co.uk | 43
FEATURE.
MINI SPECIAL
Mini magic
Slough is home to Europe’s largest Mini dealership. James Batchelor popped along to explore it
Dealer principal Matthew Thorne is Mini through and through
��| CarDealerMag.co.uk
I
f ever there was a showroom that fitted the modern Mini brand, Sytner Slough Mini is it. Opened six months ago, the dealership is not only the biggest Mini dealership in the UK — it’s the biggest in Europe. ‘We can fit a maximum of 30 Minis in here,’ dealer principal Matthew Thorne tells me. He waves his hand across the enormous selling space and adds, ‘We’ve got around 25 in here at the moment; any more than 30 and then it gets a little too tight.’ We’re standing next to a Mini Inspired by Goodwood. It’s the first time I have seen one of these ultra-exclusive Minis in a dealership and, strangely, it sits quite unremarkably in the glittering showroom. The £42,000 Mini has been created in conjunction with Rolls-Royce of Goodwood, so there’s burr walnut trim from a Phantom, lambswool carpets, cashmere rooflining and dials with Rolls-Royce typography. Sytner Slough has displayed it with its doors open and the seat belts tied around the armrests to prevent the unworthy stepping in. ‘We sold one of these last month,’ remarks Thorne. ‘The customer pulled up in a Bentley and bought one just like that,’ he says as he snaps his fingers. ‘Quite incredible.’ The showroom floor is full with every version
of Mini available and in some of the best — and more unusual — trim combinations going; there’s also the latest John Cooper Works GP and a Mini Challenge racer. To the side there’s the Mini bar surrounded by seven tables and chairs where customers can grab a coffee, read the papers and log on to the free wi-fi. It’s backdropped by a Mini timeline wall charting the important moments in the Mini’s history. ‘But let me show you this,’ says Thorne, a smile creeping across his face. He leads me to a room just to the corner of the showroom, with windows, subdued lighting and a dozen books on Mini colours, trim specifications and fabric samples. There’s also a television hooked up to the Mini online configurator. ‘This is the Mini Lounge and we bring customers in here so they can spend some quiet time choosing their perfect Mini. They can be in here for hours,’ he explains. Next door is the Mini boutique ‘designed to show off the Mini lifestyle’ and just along from the Mini bar are two glass doors leading into the service bays. ‘Formula One-style cleanliness is the order of the day here,’ says Thorne. But the hygienic qualities of the service bay is not the piece
de resistance of Sytner Slough Mini — that is reserved for customers collecting their new Mini. ‘We try to get the paperwork all filled in the day before the collection day, so when the customer comes in to pick their car up, they can just enjoy the experience,’ says Thorne. Behind two doors that seem to blend into the black Mini corporate decor lies a small room. It looks like the type of anteroom James Bond is shown into before he meets Blofeld or some other flamboyant baddie. ‘At this point I would ask you to sit down (he waves at five small chairs upholstered in soft lipstick-red leather with chrome legs) and I’d pour you a glass of non-alcoholic Champagne. The bottle would have your name on in it in the Mini logo. And once you’re settled, the show really begins.’ Thorne moves to a small control panel near where we came in and almost immediately the wall at the opposite side of the room splits in half. It’s another room with a Mini John Cooper Works Paceman sitting there, revolving quickly on a turntable. There’s the sound of applause, funky music and mood lighting. On one of the walls there’s a large picture of a bank of photographers; lights flash as if they’re taking pictures. ‘Customers are blown away by this,’ says an enthusiastic Thorne. ‘We normally have to do it all over again so the customer can film it on their iPhone,’ he chuckles. And that’s exactly what I ask him to do for me as I search for my phone. ‘Afterwards the customer is led to their car, they’re invited to sit in it and they’re shown all of the controls. Our Mini Genie would have already made contact with the customer to find out such things as what their favourite radio stations are, so when they get in the car in this room, the car is already set up to their liking.
‘Once the customer is ready, we open the doors and out they drive.’ It’s easy to see how much Thorne relishes his job. In the Sytner group, he’s the only dealer principal of a solus Mini dealership — all others are attached to a BMW dealer in some way — and he’s had Mini running through his veins since its relaunch in 2001. Thorne was at BMW Chiswick when Mini appeared as a brand owned by BMW in 2001 and he remembers it as if it was yesterday. ‘The first day we opened, the showroom was rammed. Naturally there was a lot of apprehension at relaunching Mini at that time. ‘We were unsure of what the public was going to make of it as Mini is such an emotive brand. But on that first weekend, we were blown away at the reaction and we quickly realised the way to sell the Mini was to be fun and different and not be like a traditional car dealer.’ Conversation quickly moves on to the new Mini and how excited he is at launching another generation of a modern classic and his expectations for the year. ‘We’ve only been open six months and we’ve sold around 170 new cars. This year we’ll easily sell 350 new and 400-450 used. I can’t wait!’
‘‘
We quickly realised the way to sell the Mini was to be fun CarDealerMag.co.uk | 45
FEATURE.
MINI SPECIAL
10 372
Mini facts
Things you didn’t know you didn’t know about the car that’s become a classic... and the brand behind it
1
There are 372 interior trim options and 319 exterior options which makes 15 billion possible Mini combinations. It’s said there are no two Minis the same
3
Colour
80
2
Mini is a built-to-order brand. 80 per cent of all cars produced already have an owner ready and waiting for them
The most popular Mini colour is Pepper White, followed by Midnight Black then Chili Red
$130,000
4
Actor Kevin Spacey once paid $130,000 for the last classic Mini Cooper to be built
INTERVIEW: Jochen Goller, DIRECTOR, MINI UK Why did BMW want to make Mini a brand rather than just focus on the one model? I think when you look back at most successful car companies today they all started with one key model. So when you take Porsche for example, the whole brand was for a long time based around the 911 and only later did they launch other cars. Even VW in a way was founded by the Beetle and Golf so I think what happened is obviously we had the Mini hatch which was one product and brand. But we wanted to create a portfolio, allowing the Mini enthusiast to stay in the brand. Especially, for example, a person might be starting a family and having kids. In the past ��| CarDealerMag.co.uk
they couldn’t stay with Mini, so that’s why we expanded the portfolio, first to the Convertible and Clubman and now the Countryman, which is a car by which we can keep our fans within the brand. In a way it’s a logical expansion of Mini. How would you describe the transition from Mini being a product that people looked upon with nostalgia to one that is ultra-desirable? When you look back at the ’60s, why did people buy the classic Mini? I think it was quirky, British,
it had clever engineering, a very creative use of space and was individual. These were the reasons that people bought the Mini in the ’60s and ’70s. I think in a way, if you translate this into the 21st century, the reasons are near enough the same. When you look at today’s Mini, it’s very individual, it’s still agile and clever, so I think the reasons for buying it haven’t changed. Of course, when you look back at the classic Mini, you look back with nostalgia and a feeling that everything was better in the past, but in a way we managed I feel to continue with the typecast, so the Mini stood for
68
5
A Mini is born every 68 seconds
Get a move on!
6
The breath-taking escape through the Turin sewers by gold bar-filled Mini Cooper Ss in ‘The Italian Job’ was actually filmed in Coventry, England
7
Gin? 30 8
Rumour has it Issigonis designed the door bins in the classic Mini to hold a bottle of gin and several tonics… Or was it just pints of milk?
9
28 1961 10
How many people can you fit in a Mini? The record was broken in England in November 2011 with 28 women squeezing into one car
something in the ’60s and ’70s, and I think we’ve translated that into the 21st century. Has the success of Mini over the last 12 years surprised you? Yes, absolutely. I was lucky to have been part of the launch team in Munich in 2001 when the Mini was launched, and internally we discussed whether we would ever sell 100,000 units globally, and we would have considered this a success. In the second year, 2002, we sold 140,000 cars so we were really overwhelmed, particularly with the global success. We were very confident in Europe as smaller cars are very popular but in the US,
Mini is a bit of a music celebrity, having starred in more than 30 music videos in the last two years alone
for example, very soon we sold 40-50,000, cars and there was a big discussion originally as to whether we would ever offer the Mini in the US. In 2002 it was offered and within three or four years it was a big success, and last year the US was our number-one market with about 60,000 units of sales. I think the global success and the very rapid success has clearly surprised us, in a positive way, and last year we broke through 300,000 unit sales for the first time. Do you think the type of customer who bought the Cooper S in the ’60s/’70s is different from the customer of today?
In 1961, racing driver Stirling Moss was banned for a year for speeding in a Mini, allegedly while testing it for a Sunday paper
In their hearts they are probably similar, because at that time the Mini Cooper S in the ’60s had around 70bhp, which was quite a lot for the time. It appealed to those who wanted to express themselves. Mini was quirky but it also appealed to those who wanted to have the power and performance and I think this is the reason why people bought the car back then and when you look these days, I think the performance orientation and driving experience is probably still the drive for Cooper S customers. It’s very masculine — it has a very high share of male owners — I think there are some very strong parallels. CarDealerMag.co.uk | 47
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FEATURE.
MINI SPECIAL
Mini’s big in the States As new brand launches go, Mini in the US is one of the most successful. Here James Batchelor takes look at how it was done
M
ini’s biggest market for its range of cars is not the UK and nor is it Germany — it’s the United States. The country that favours large and ornate cars has fallen in love with a premium ‘British’ brand from Europe, and beats markets which have known all about Minis for more than 50 years. And in just over a decade, the Mini brand has grown from nothing to being the hottest new thing to have landed in the USA. The story of Mini and North America is most probably the greatest example in the 21st century of how to launch a brand. In 2001, brand awareness for BMW’s new car was 12 per cent. Twelve months later after the car had launched, public awareness had jumped to 53 per cent. If ever there was an example of how to create something from nothing, launching Mini in the USA was it. Unlike the UK, where the modern Mini is inextricably linked to its classic predecessor, the Americans did not make the same connections. Where Volkswagen’s Beetle successfully jumped
the pond and became as famous in America as it was in Europe, the Mini never really caught on. It was too small for a start, and if Americans wanted a quirky European car, the Beetle fitted the job perfectly. Put this all together and the Mini wasn’t as iconic in the US as it was in Blighty. When the time came to launch the brand-new Mini in March 2002, BMW was well aware of the problem. So it got clever. Instead of spending millions on normal media for advertising new products, the Germans turned to guerrilla marketing activities. Soon Minis lashed on to the roofs of typical Yank SUVs were seen travelling around major cities in America. And there were unusual pop-up displays of Mini Coopers in cages in shopping centres, Minis strapped to the sides of skyscrapers and Minis ‘sitting’ in the stands during American football games. Newspapers had Minis zigzagging between the staples in the centrefold while a Mini Cooper even had its own spread in a Playboy magazine.
‘Launching Mini in the US was absolutely different because we had to overcome issues related to product quality and substance — the Rover Mini was not exactly famous for its quality and safety,’ Jochen Goller, Mini UK’s director, tells us. ‘So we had to do it a different way in Europe — it was more about changing perceptions and modernising the image, whereas in America Mini was unknown and we started from scratch. It was more like David against Goliath — you know, the small underdog.’ In 2003 Mini USA again ramped up interest in the brand by aligning (in the American public’s eyes) the now very British car to American culture by creating humorous adverts that showed Minis dressed up like TV car icons. One was dressed up like Knight Rider’s K.I.T.T; another as The Dukes of Hazzard General Lee Dodge Charger. The result was that Mini smashed its sales targets by 10,000 units in 2003, with dealers shifting 30,000 cars. Last year was the best ever with more than 66,000 Hatches, Convertibles, Clubmans, Roadsters, Coupes and Countrymans sold. It shows that the German-owned brand which invokes a sellable, translatable image of Britain has finally made it big in America. Something which the original Mini never managed.
CarDealerMag.co.uk | 49
FEATURE.
MINI SPECIAL
The Mini argument The BMW-owned brand has always divided opinion – but none more so than at Car Dealer. Here James Batchelor and James Baggott put their cases forward for consideration...
B
atch and Baggott strongly disagree on whether Mini’s adventure has been a good one. Here they mull it over and attempt not to kill one another It could hardly be called an argument, more of a disagreement, a difference of opinion. Whatever it is, Batch and Baggott have never been able to agree on the New Mini Old Mini affair. One loves the new model (and even bought one) the other would prefer to push them all into the English Channel. Here, once and for all, they attempt to settle the debate without throwing stationery at each other across the office. This may not go smoothly... Baggott: Right, let’s get this started quiff boy. The things that annoy me about the new Mini are plentiful and range from the slight to the monumental. For a start, the very fact we’re ‘celebrating’ 50 years of the Cooper S in this issue when all that links this model with the old is a name a German firm paid a pound for, really sticks in my throat. Yes it has the same name but they bought the history - that doesn’t give them the right to celebrate it like it’s theirs... Batch: My word, we are boisterous aren’t we? Our feelings towards the brand couldn’t be more different if we tried. I went through a phase of disliking everything BMW did with Mini. For a while I became one of those ghastly people who always post comments on the internet whenever there is a story about a new Mini product. But I changed. I let the firm’s fun ways get under my skin. It’s just a ��| CarDealerMag.co.uk
phase you’re going through, Baggott. You’ll change. As for the BMW-buying-the-history point you so eloquently made, ultimately does it really matter? If the Germans appreciate the Mini’s heritage in the same way as we Brits do, that’s great. Baggott: Sorry Fraulein, but you may think that’s the case but all they’re really interested in is the euros rolling into their coffers from the pseudo-British brand. They’re only trying to be ‘cool’ to sell more cars. Talking of which, another thing that gets up my nose is the brand’s ‘diversification’. For a start Mini is a model, not a brand, in my opinion, no matter how many iterations they ram down our necks. Paceman? Seriously WHAT is that? Countryman? Ridiculous. I can just about accept the Hatch, the Convertible and the Clubman as at least they were around before. But the Roadster and Coupe? Well, they’re just daft. I’ll admit they’re pretty, but they are NOT Minis. Batch: Hurrah! I was wondering when you’d bring up that old and original (not) argument of the Mini family. From the very start, BMW was always going to pitch the Mini as a brand. It’s been a car for 40 years - times change and you can make a lot more money from a brand rather than just one car. Think about it - it’s been 12 years since BMW launched the Mini brand. Paramount to the Mini’s success has been the creation of different models in even more creative segments. The Germans are clever but they’re not that clever to make money from one body style for 12 years. They had to diversify. And if that annoys you now, you have a lot to look forward to. The next Mini (F56 - don’t you
know?) which makes its appearance later this year is sure to spawn even more models. I’m reliably informed there’ll be a saloon... Baggott: And that’s a good thing how? Alec Issigonis must be turning in his grave. There is stretching the brand a bit and then there’s Mini. I understand profits need to be made, new profits devised, but to then hark back to the original as if it was their own when anniversaries allow is just deceitful. There’s no doubt customers love what BMW is doing with the brand - I can’t argue with the numbers. What gets up my nose is that it’s elaborating on the iconic car a bit too much. However, if they remade the Moke, well, I might approve of that. Or the mini Mini they’ve been harping on about for a while... Batch: I’m sure Alec Issigonis is beyond caring. If anything was going to get up his nose if would have been the fact that the same car was built for 40 years, and by the time it was killed off, it was loved only by wistful people with beards and for its retro appeal, and not for being an innovative car. Now the Moke would be a brilliant idea... but admitting that would mean agreeing with you. However, I am willing to shake hands on one point: Minis, especially Cooper Ss, are great fun to drive. The Germans have written the frontwheel-drive rule book. Just like Issigonis did.
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like the Paceman something other than Mini, then I might not have had such an issue. The Paceman is as big as an Evoque - what’s bleeding mini about that? Batch: OK so while we’re on the subject of the Evoque, surely the diversification of the Range Rover name (now a brand not a car) sounds achingly familiar? Oh yes... Mini... And you like that do you? Baggott: You sort of have a point. Anyway while you’ve been wittering on I’ve been getting angry about some other Mini ‘brand extensions’. Firstly the Cooper SD range. Absolutely ridiculous. Then there’s the John Cooper Works abominations. If ever there was a war crimes level motoring atrocity it’s them. They look like they’ve been driven through Halfords and all the tacky bits stuck to them. And don’t get me started on the GP... Here’s an idea I’ll give the Germans for free: Start remaking the original (and better) one with BMW internals. It’ll look like it was supposed to and run like it always should have done. And not rust. Actually, I might email them now... Perhaps we need to agree to disagree on this one? Batch: Basically your last comment is one last hurrah before we run out of space on this page. It’s an angry concoction of everything really isn’t it? Diesels, fast Minis, rust... The only thing missing was a mention about the war. We will have to agree to disagree on this one. The Mini of today is a completely different car and interpretation of the one 50 years ago. The people who buy Minis today absolutely adore their cars and I think that in these days of Euro-box blandness, that’s something to be celebrated. Mini is different and will be loved and hated in equal measure for many years to come. And, for me, that’s the success BMW has made. Mini provokes passion and anger. And I know exactly which camps you and I are happy to sit in. Ja!
Perhaps we need to agree to disagree?
Baggott: Oh yeah, I forgot BMW were experts on front wheel drive... actually, hang on a minute... Anyway, it’s hard not to admit BMW has made a success of the Mini. I just don’t like the fact it feels as if the brand is being raped for every penny. For me, I don’t see BMW as a guardian of the brand, merely a conglomerate squeezing every last drop out of the name. Perhaps they’re trying to make up for the losses they made on Rover. Now, if they’d used that name instead, and called those hideous creations
CarDealerMag.co.uk | 51
forecourt.
MINI special the knowledge Model: Mini John Cooper Works All4 Countryman Price: £34,625 (as tested) Engine: 1.6 litre, four-cylinder turbocharged petrol Power: 216bhp, 300Nm Max speed: 140mph 0-60mph: 6.8s MPG (comb’d): 38.2 Emissions: 172g/km Residual values (three years): tbc
target buyers:
Owners of smaller JCW Minis after a more spacious car but still wanting performance
the rivals: Nissan Juke Nismo, VW Tiguan R-Line, Range Rover Evoque
Key Selling Points: 1. Racy styling 2. Can be personalised thanks to long options list 3. Grippy ALL4 AWD system
Deal Clincher: The most spacious and practical John Cooper Works Mini produced so far
W C J i n Mi
n a m y r t n u Co
Mini’s family has now grown to seven models. Jon Reay drives the newest What is it?
What’s the spec like?
Mini’s seventh (yes, seventh) model, the Paceman. Slotting in at the top of the range, think of it as a Countryman with more elegant styling and sportier dynamics and driving manners.
Not all that bad. There’s no ‘One’ or ‘First’ trim, and basic Cooper and Cooper D models get alloys, air conditioning, parking sensors, Bluetooth and DAB radio. Head for the S and SD models and you’ll get sportier front and rear bumpers,17inch alloys, a three-spoke leather steering wheel, ‘dynamic traction control’ and a ‘Sport’ button. Prices range from £18,975 for the Cooper and rise to £30,740 for the Paceman JCW variant.
What’s under the bonnet? The same range of engines you’ll find in the Countryman, effectively. We drove the two mid-range models: Cooper S, which comes with a 184bhp 1.6-litre petrol engine, and Cooper SD, which squeezes in a 2.0-litre diesel with 143bhp. Both are fine, but in a car the size and weight of the Paceman they have lost a teensy bit of their edge. There’s also a Cooper with a 122bhp 1.6, a Cooper D with a 111bhp 1.6 diesel and a 216bhp John Cooper Works. Our money would be on the Cooper SD – it might be a bit gruff, but it pulls the Paceman around without too much fuss. ��| CarDealerMag.co.uk
What’s it like to drive? It drives very well with direct steering, a nice gear change and tidy handling. However, it isn’t cheap. At just under £19,000 for the basic Cooper it’s actually more expensive than the already pricey Countryman. And even in Cooper S spec it’s not quick – and when Mini are calling it a ‘sporting coupe’ that sort of thing matters.
What do the press think of it? Autocar said: ‘If you’re insistent on owning a four-metre-long Mini SUV, we’d recommend you continue to opt for the one with five doors and a whole heft more sense.’
What do we think of it? It’s a funny one, the Paceman. We’re strangely allured by the way it looks, but we’d find it very hard to justify the premium over the Countryman and Hatch. Don’t get us wrong – for what is a coupe-cum-SUV it’s a well assembled package that handles very tidily and even looks rather neat, but we’d rather spend the spare £4,000 on options for a hatch and put up with the small boot. Still, we can sort of understand the Paceman’s appeal, and those who do take the plunge will have no complaints with the way it drives, if not how much it costs.
in association with
Mini has finally given its Countryman the JCW treatment. James Batchelor reports What is it?
What’s the spec like?
It’s the spiciest Mini Countryman around and the sixth model in the John Cooper Works (JCW) range. More importantly though, with its racy styling, potent performance, five-door practicality and raised ride height, it offers an interesting alternative to the hot hatch mainstream.
Quite meagre in fact. For £28,585 buyers get 18-inch alloys; manual air con; anthracite headlining; Bluetooth with USB; DAB radio; a bodykit; park distance control; a Sport button; and front sports seats. But our car cost a whopping £35k and had the options buyers would want such as black leather with red piping; automatic air con; black headlamp inserts; Harman Kardon Hi-Fi; and Xenon headlights.
What’s under the bonnet? An enhanced version of the much-loved 1.6-litre four-cylinder turbo with either a six-speed manual or a six-speed auto with wheel-mounted paddles. It has a healthy 216bhp and 280Nm of torque (300Nm with overboost) and it’ll crack 60mph in 6.8 seconds. Top whack is 140mph, while CO2 emissions are 172g/km. Official MPG figures are 38.2mpg, while all Countryman JCWs are four-wheel-drive
What’s it like to drive? It is actually – but due to the car’s extra 190kg over a JCW hatch there’s never really the sense of it being lightning fast. The handling is precise and planted, but the steering system slightly lacks feedback and the ride comfort is never that great.
n a m e c a P i Min
What do the press think of it? What Car? said: ‘If you’re dead set on a Countryman and want a powerful petrol engine, save yourself £6,000 and go for the Cooper S model.’
What do we think of it? There’s not much of the all-out turn of speed of the other John Cooper Works models, but the Countryman JCW’s more grown-up character is appealing. And we have to say we like the challenging styling and the childish pleasure we get from the car’s twin exhausts popping and crackling when in Sport mode. But the steep asking price does its best to put us off.
the knowledge Model: Mini Paceman Cooper SD ALL4 Price: £24,290 Engine: 2.0-litre, four-cylinder turbocharged petrol Power: 143bhp, 305Nm Max speed: 122mph 0-60mph: 9.3s MPG (comb’d): 57.6 Emissions: 130g/km Residual values (three years): tbc
target buyers:
Premium coupe SUV buyers who are new to the brand; Mini Hatch owners wanting to upsize
the rivals: Nissan Juke, Range Rover Evoque, Audi Q3
Key Selling Points: 1. Coupe styling looks 2. Marks the first of a new range of Minis that really push traditional model boundaries 3. ALL4 models can go off-road
Deal Clincher: Probably the most practical and stylish car Mini has produced
CarDealerMag.co.uk | 53
focus on.
Gen-3 Glasscoat
It’s a glass act! A
s dealers, we appreciate you like some cold hard facts – especially those that revolve around profit. It’s all about the deal, how much of the slice of the pie you can keep for yourself and add to your bottom line. But with margins getting squeezed from every angle, the hunt for those accountant-pleasing digits is getting harder. You don’t need us to tell you how important paint protection can be to improving your margins. There have been firms around for years offering paint protection that you can sell on to your customers for a healthy return – but one new kid on the block is promising some seriously healthy returns. Gen-3 Glasscoat has been around for just over five years now and is making impressive in-roads into the market. With 700 dealers signed up around the country, the 2012 Car Dealer Power award winner is targeting even more growth this year – and the firm is getting some hearty recommendations along the way. ‘We are making more money from Gen-3 than we did with other products we sold before,’ Andrew Dobromylskj, managing director of Gordon Lamb told Car Dealer. ‘We make considerably more because we have far better penetration levels now. Before, we were selling mid to high 20 per cent levels; now, we are well over 35 per cent and benchmarking CONTACT 40 per cent. Some of our Land Rover salesmen are selling to 80 Gen-3 Glasscoat per cent of their buyers.’ W: g-3glasscoat.com Impressive stuff. But what has T: 01753 215311 see a copy of the paint protection made the difference at Gordon certificate from wherever they Lamb’s sites? Why are his staff bought the car. Invariably they say at his Land Rover, Skoda, Nissan they haven’t got one but it stays in and Toyota sites now selling double they did before? their mind and opens them up to the conversation ‘Because it is easier to sell,’ says Dobromylskj. about purchasing it for their new car.’ ‘This is a good product that really does protect the Clever. The next step is during the test drive of customers’ investment. It is a fuller product and the new car. Inside the cars the salesmen are trained because our salesmen really believe in it and have to leave leaflets and ask the customer casually if confidence in it they sell more.’ they’d ever spilt milk or similar on their carpet. It helps that there’s a tried and tested sales It’s here that an early explanation of the interior method behind it too. One which the company has protection Gen-3 Glasscoat offers works nicely. The honed and perfected over time and one which its product stops liquids penetrating the fabric much staff will take the time to train new salesmen with like the treatment many customers purchase when when you sign up. buying a sofa. ‘It’s a five-step process that starts right at the part ‘When people buy a sofa some 77 per cent exchange valuation point,’ Gen-3 Glasscoat sales of them pay for some form of protection for the and marketing director Darren Johnson tells us. ‘We upholstery – and even on suites costing as little plant the seed in the customer’s head when the as £1,000 they will pay up to 20 per cent of the salesman is evaluating the car they want a price on. purchase price for these products,’ explained As they are checking it over we get them to ask to ��| CarDealerMag.co.uk
Johnson. ‘Customers understand the importance of protecting fabric so it’s an easy way to introduce our product to car buyers as they already understand it.’ Next comes the demonstration. When the salesman goes to get the customer a coffee he places a Gen-3 Glasscoat-treated beer mat on the desk. On one side the treatment hasn’t been applied and liquid is dropped on both – the untreated side leaks straight through and on the other it remains on the top. It stays there for the entire conversation and is a very powerful demonstration. This is backed up by a short demonstration video on the salesman’s computer. ‘The next step is the offer – most of our dealers include everything in their deals and then talk the customer through them. We train salesmen not to cross out the paint protection in the deal but circle it instead if the customer doesn’t want it. We then train salesmen to ask at the end if there was anything they didn’t explain properly about it –
How is it applied?
Andrew Dobromylskj, managing director of Gordon Lamb
The Gen-3 Glasscoat was developed by NASA to protect the Shuttle with the ceramic formula bonding with paint on a molecular level. Owners will not have to polish or wax their car again and it protects against car wash brushes and bird lime. It comes with a five-year guarantee and can’t be removed by harsh cleaning products like those used at hand car washes. Car Dealer watched the protection being applied to an Audi R8 and the results were impressive. Application takes a trained valeter about 40 minutes. First the car is cleaned, then a de-waxer applied. A clay bar may be needed to remove tar and other imperfections before the product is applied with the supplied clean cloths. The interior protectant is simply sprayed on. Everything that’s needed is included in the kit and it comes with a fiveyear transferable guarantee.
Gen-3 Glasscoat takes 40 minutes to apply
putting the blame on them, not the customer. This gives another chance to explain the benefits.’ After that, if the customer still says no, the brochure is stapled to the order form and no more said until a phone call is made 24 hours later. In this call the salesman checks the payment details for the car, the insurance certificate and again explains there is still time to apply the protection. ‘At this point 30 per cent of those that said no buy,’ explained Johnson. It’s a tried and tested method that certainly seems to be getting results. Gordon Lamb’s 45-year-old boss Dobromylskj swears by Rob Collins, left, and Darren Johnson, right
the technique: ‘From a product point of view it’s a similar profit opportunity as others, because we choose to price it similarly, but from a confidence of staff and increase in penetration point of view, it is far better. The sales technique works.’ So back to those cold hard facts – just how much can dealers expect to make? Well, the sums are pretty simple, says Gen-3 Glasscoat chief Rob Collins. ‘Sell the product on 500 cars a year and a dealer will make £100,000 clear profit,’ said Collins. ‘We’ve got many happy dealer groups using this product and making good profit margins. HR Owen says it is the only paint protection product they would recommend for their quality of cars.’
Dealers sell the product for a variety of prices too, but the average is £349. That’s the figure that Collins has worked out the profit margins on quoted above and the figure Gordon Lamb sells at. However, some dealers sell it for as much as £1,000 a time – and the cost to them is the same. Kits start at £40 and rise to £80 for a dealer-branded aftercare case and products to give to the customer when they drive away. We’ll let you work out just how much of a difference those sorts of figures could make to your business… [CD] James Baggott (@CarDealerEd)
VIEW VIDEO See Gen-3 Glasscoat put through 100 car washes and still perform in an independent test here CarDealerMag.co.uk | 55
focus on.
Aston Barclay
Why you need auction houses W
ith the used car market currently in a state of change, it’s become increasingly important for dealers to monitor their sales and purchases. The development of live online auctions is argued to be the simple and practical way forward, but are customers really getting what they want? Independent auction company Aston Barclay explains that even though online auctions may be the best time and money saver, traditional auction houses remain the surest way to achieve the best deal and will always be first in the industry. ‘Aston Barclay has a strong reliable history in delivering a high-quality service to our customers, and we believe our auction house sites are in extremely strong locations,’ says Aston Barclay’s commercial director, David Scarborough. ‘We pride ourselves in delivering suitable dealing facilities to our customers, and in this current climate are confident that our auction houses are among the most habitable environments.’ As the third largest auction house in the country, Aston Barclay has been able to monitor the stability of the used car market and its clear values and finance offers available within the new car market are ultimately shaping the future sales of quality used vehicles globally. ‘Over the past four years, sales in the used car market have decreased and this is arguably due to value,’ explains Scarborough. ‘Today, when buyers looking for a new car see a used vehicle on the forecourt with a price tag of £9,000, then see that they can purchase a brand new Fiat 500 for the same price but have the option to finance and pay just £2,000 on the day, spread the cost over three years and can then give it back afterwards, used vehicles do become less appealing. The coming together of prices is making it very difficult for all dealers.’ Coincidentally, the value of quality used vehicles has remained stable and the used car market is getting stronger again. Four to five years ago, roughly 80 per cent of used car stock was sold through physical auctions. However, over the past four
years, online sales have started to take over. Even so, Aston Barclay says the majority of sales are still made at physical auctions. ‘There is a large volume of vehicles in the used car market and 85 per cent of sales are settled at physical auction houses,’ says Scarborough. ‘This means only 15 per cent of sales are currently carried out in live online auctions. So, technically, companies and dealers who rely solely on the internet auctions are essentially missing out on 85 per cent of the market.’ It’s clear then, customers still prefer and require a satisfactory service from auction houses, with a goal to achieve the best deal. ‘We share the same goal with our customers which is to maximise product values,’ says Scarborough. ‘Our aim is to work closely with our customers, to achieve the best CONTACT result. ‘We have a unique selling Aston Barclay W: astonbarclay.net point here at Aston Barclay and T: 01245 450700 are known for working closely with customers, taking a strong interest in the industry climate and working to obtain a strong reputation in the business.’ Although Aston Barclay prides itself on offering the best physical auction sites, like other companies it has made a strong move into the online sector, with the aim to deliver its satisfactory service online. ‘Over the past two years, even with all the unsettlement in our industry, we have been able to retain the majority of our customer base and have gained business from our rivals,’ says Scarborough. ‘We have live auction sites are gradually becoming more developed our business procedures popular, but there’s still the question of “Are you online, which is becoming getting what you paid for?” At an auction house, exceedingly important to our buyers can ‘touch the metal’ and ‘kick the tyres’ but customer offering. when bidding online, customers are at great risk of ‘Yes, we are working hard to making a false and uninformed decision on move with the times and develop a vehicle.’ our expertise in online formats, In such a fast-pace industry, where dealers are but we are not losing touch with hunting for the best deals and determined to the core of our business, which has achieve the right results, Aston Barclay believes always been physical auctions, and there are some authoritative sources who are we will not stray from that. missing out on the market due to their lack of ‘The internet is growing, and understanding. ‘People seem more interested in
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Yes, we moving with the times but we are not losing touch with the core of the business
PROFILE ESTABLISHED in 1984, Aston Barclay is the third largest vehicle auction company in the UK. The firm operates four strategically based auction centres in Essex, Yorkshire, Shropshire and Wiltshire. Aston Barclay provides a range of remarketing services in addition to physical auction and as well as working closely with customers,
money and cheapest rates and less about the service they receive,’ explains Scarborough. ‘There are many individuals who currently occupy senior positions in the market and think they know things about the industry, which they actually don’t. This false misunderstanding of the market can lead customers down the wrong route and they end up with a below average deal.’ If not handled with care then, live online auctions can put customers at great risk. Vehicles might not turn out to be what they expected and cars can be found to be selling below value. ‘It’s important to remember that the most expensive
car in the world was sold at physical auction,’ says Scarborough. ‘You don’t often see prestigious or priceless vehicles going through auctions online and this is purely because there is too much at stake.’ Even with these potential risks, online auctions are clearly the future, with the number of users rapidly increasing. This leaves auction houses like Aston Barclay in the middle. Because of today’s dealing climate, Aston Barclay feels it’s unnecessary to consider expansion, but it is confident that it’s in a comfortable position. ‘We feel that there are too many auction centres within a very small radius throughout the UK
invests heavily in personnel, facilities and IT infrastructure to offer additional routes to the market Aston Barclay sells vehicles for customers including leasing and finance companies, franchised dealerships and car supermarkets, and the majority of the sales are open to both the trade and the general public.
competing with each other,’ Scarborough explains. ‘We are consolidating our position and have found that the growing volume of customers coupled with the stability of our four sites is strengthening our position. We feel that we are in a comfortable and stable enough position to remain as we are.’ So, when looking for quality used vehicles at the best prices, or working to achieve the highest selling results, don’t rule out the traditional methods of the car dealing industry. [CD] Sophie Williamson-Stothert (@1Sophie_W) CarDealerMag.co.uk | 57
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focus on.
Money-saving experts
Welcome A
s a dealer you’ll know how important it is to make your business as streamlined as possible. Counting the pennies is just as important as counting the number of cars you sell every month. But sometimes, counting the pennies isn’t enough. You need to change the ways you do business to make the best savings. Changing your working methods needn’t be a massive deal. Sometimes changing the little things make a big difference and perhaps this summer is the perfect time to put into place some changes. But where do you start? This is where we can help. We have spoken to some of the biggest names in their respective sectors who can all offer some ingenious ways to save money. Some may not be as obvious as you think while others are tried and tested ways of slashing expenditure. We’ve chatted to a remarketing and sourcing specialist, a DMS provider, the world’s leading provider of cleaning equipment and a wheel-aligment expert and in the following pages they’ll explain how they can help.
What’s inside? Autotrade-mail
P60
Acquiring and selling stock has never been so easy
Pinewood
P62
Why you cannot survive without an excellent DMS
Karcher
P65 The importance of buying cleaning machines cannot be overstated
Pro-Align
P66 Old wheel-alignment kit is costing you money – work with this partner
James Batchelor Editor
CarDealerMag.co.uk | 59
focus on.
Money-saving experts
You got mail Autotrade-mail
S
ometimes the best ways to save money are changing the little things in the way you do business. Whether acquiring or disposing of stock, using the tried and tested ways can seem familiar and comforting – but they may not be the most cost-efficient. This is exactly where Autotrade-mail comes in. Part of the Trader Media Group, Autotrade-mail has been helping dealers to buy and sell quickly, efficiently and economically since 1999. It has thousands of happy dealers on its books who cannot speak highly enough of the West Sussexbased firm – and they’re happy because Autotrademail offers a different service that works. The service couldn’t be easier so it’s no wonder that more dealers are signing up every month. Buyers sign up to the website, fill in a few details about the makes and models there forecourts are in need of – for example Volvos aged up to 10 years old – and then simply sit back and wait. When a seller ‘offers’ a car, details are instantly sent out to buyers Autotrade-mail thinks will be interested – and only in the selected areas the seller specifies. The offers are sent out instantly whether by email or by Autotrade-mail’s innovative ‘toolbar application’ (more about this later) – meaning sellers need not ring round begging other dealers to take a car off their hands. Autotrade-mail has pinpointed the perfect stock and has searched through the cars that are not of interest, If a buyer is interested, they can place a bid through the system immediately – speeding up the whole process, and allowing sellers to hand-pick
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W: Autotrade-mail.com T: 01243 523 000
the best offer. And it’s just as easy if you’re selling too as adverts can be created and posted in less 90 seconds. In fact, so quick is the system that part exchanges can be put on the system and receive offers before they’ve even arrived – meaning dealers can quickly gauge just how much a part-exchange will be worth. It sounds such a simple idea – but the best ones really are. It’s so good, more than 250,000 used cars were advertised for sale by dealers on the website in 2012. Remember that ‘toolbar’? Well, it’s just one of the reasons why dealers like working with Autotrade-mail. The company developed a simple-to-download programme that keeps dealers abreast of the cars they’re searching for. In essence, the programme notifies buyers of vehicles that are available through the trader within seconds of them being advertised through the seller. An unobtrusive toolbar is installed in the user’s desktop and notifies them with a discreet pop-up alert whenever another Autotrademail user has a car for sale that matches their predefined criteria. When the computer finds a match, the alert appears on their screen for 10 seconds with basic details of the car. ‘We spent 18 months developing this unique sales aid,’ Kevin Watson, Autotrademail’s operations director tells us, ‘and our members just love it. It is a great opportunity for dealers to get prime stock more quickly as well as alerting buyers to vehicles being offered.’ And the toolbar adds another level of convenience too. When a suitable advert pops up, dealers just click on the tool and they are immediately taken
We spent 18 months developing this unqiue sales aid and our members just love it
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straight to the Autotrade-mail homepage – without having to log in – where they can continue their search if need be. But surely services such as Autotrade-mail’s come at a hefty price? Not so – it’s one of the cheapest and most effective available. ‘Dealers like the fact our monthly fee (£97) is set at a rate that equates to them only having to do one extra deal to pay for a whole year’s subscription,’ explains Watson ‘There are no other hidden charges or handling fees – not even a minimum contract.’ This, along with the targeted approach to finding stock, are the key ingredients to why dealers are
THUMBS UP AUTOTRADE-MAIL’S system is loved by dealers across the country and since it began trading in 1999, the company has won many loyal supporters. One of them is Plymouth Audi’s James Lynch who says: ‘Using Autotrade-mail has increased sales, added bottom-line profit and helped bring the relationship between buyer and seller closer together. ‘I would highly recommend the system to another agent who may be exploring other opportunities to add incremental profit to a used sales department.’ And Michael Low from Whitmore’s Group is another happy customer. He says: ‘I am still amazed at how quick and simple it is to get proper bids for proper cars. Put the right car on and the phone explodes! Undoubtedly it has added thousands to our bottom line over the years.’ High praise indeed. Contact Autotrademail for your free 14-day trial.
flocking to Autotrade-mail and why 2012 was such a successful year for the business. But how does an interested dealer try out the service? ‘We recommend dealers, in the first instance, take up our free 14-day trial of the whole system to see if it’s the right tool for them,’ says Watson. ‘Feedback from our members indicates that internet trading between dealers is growing at a faster rate than ever. Our 14-day trial makes exploring our system easy. If a dealer wants to go on and subscribe after their free trial, we would
obviously be delighted!’ Don’t think Autotrade-mail accepts anyone purporting to be a dealer. All Autotrade-mail members go through a strict vetting process to make sure all members remain experienced, professional dealers. But more importantly, you can be sure that you’ll be in a community of like-minded dealers who are savvy when it comes to using the best technology to streamline their businesses. James Batchelor (@JRRBatchelor) CarDealerMag.co.uk | 61
focus on.
Money-saving experts
Maximise profits, boost your reputation PINEWOOD
W: pinewood.co.uk T: 01216 976 600
D
MS partners are vital in operating a dealership and it’s a false economy for dealers to rely on outdated systems. By upgrading to an up-to-date management system, dealers will be investing in a long-term money-saver guaranteed to provide them with guaranteed reputation protection by giving them the ability to manage, recognise and improve their services to achieve the best customer experience. With the recent accusation that online user reviews and customer opinions are shaping the automotive industry over professional verdicts, it’s becoming increasingly important for dealers to update to a
Company Profile FOUNDED in 1981, Pinewood Technologies is a leading company specialising in developing dealer management systems. By working closely with customers, Pinewood automatically directs feedback into ongoing product development, with an aim to produce fresh ways of tackling management data, the integration of customer relationship processes and to develop flexible reporting tools. During the period of 1999-2000, Pinewood introduced the latest DMS software as part of its own development strategy as a Microsoft Gold Partner. Over the past five years, Pinewood has redefined the delivery of dealer management, providing a route into the latest technologies with no additional cost for upgrades. ��| CarDealerMag.co.uk
modern DMS system. Heading the importance of this upgrade is specialist dealer management company Pinweood Technology. ‘Your reputation is in danger if you are failing to fulfil your customer’s needs,’ Chris Caines, marketing executive for Pinewood Technologies, tells us. ‘No system can protect negative opinions from poor customer service. What Pinnacle can provide is a platform to collect, evaluate and improve your reputation.’ If one in five interactions with a dealership lead to consumer online reviews, that means there is a large percentage of content being uploaded to the internet on a daily basis, which could easily improve or damage a dealer’s reputation. Pinnacle provides a management system to monitor all customer feedback and ultimately gives dealers the ability to prevent low reputation values. ‘It all starts with awareness and even the best dealers have seen improvement by using the tools
we provide,’ says Caines. ‘It is better to know what is being said, be it good or bad, so you have the opportunity to do something about it.’ Pinewood Technology provides a Pinnacle DMS product, which automatically posts the latest upgrades live online whilst carrying all the latest enhancements. This enables Pinnacle to deliver new upgrades to customers, for no additional costs. ‘Our focus is on dealer profitability, building a system that provides the tools necessary to maximise opportunities,’ Caines explained. ‘The first benefit is that we provide extra functionality free of charge. There is no need for any third-party add-ons and if a dealer requires the functionality we aim to provide it. This approach allows personnel throughout the dealership to benefit from using a single database.’ Caines added, ‘A workshop manager can view how satisfied the customer is and use this to their advantage in the same way a sales executive can to
enhance the customer’s experience. Our solutions avoid error-filled re-keying or tedious data file imports, and a non-integrated solution can’t provide this.’ Pinnacle achieves a cost-effective management with the use of Integrated CSI. This essentially provides the dealer with an automated email system that will keep a record of all customer interactions from purchases to workshop visits, which then prompts the system to fire an email to a customer to ask for their thoughts of the service. All completed surveys are stored and allocated to the customer record, with the last score they gave on the top of their record. The beauty of this system is that it facilitates the ability to share positive reviews online, giving customers the option to select ‘Share your positive experience on Facebook’. The feedback system comes in extremely useful for ‘meetergreeters’ using Pinnacle’s new iPad app because this allows them to see the customers’ satisfaction grades, based on their previous visit, before they speak with them. ‘As Pinnacle continues to develop, these pieces of functionality allow us to build stronger solutions,
finding new process links and unique ways of improving profitability,’ said Caines. ‘We added our CSI functionality two years ago and dealers can now view the CSI results in our latest iPad app as a customer walks through the door of their dealership.’ In the cases where negative feedback is given, results are dealt with using Customer Concerns Management. To remain on top of all occurring issues, low survey scores automatically alert the management department. This allows management to keep a close eye on negative reports and resolve them quickly and efficiently. If, for example, the CSI is sent closely after the workshop visit, a DP would be able to deal with any negative responses prior to them being shared online. Or, in another case, any negative comments shared online could lead to a positive follow up response referring to how the dealer recognised and resolved an issue. If feedback and concerns are raised via other methods such as phone call or letter of complaint,
these can also be added to the system in exactly the same way as electronic CSIs. By monitoring all feedback, as a whole, the system allows greater comparison over time and highlights the areas in which the dealer needs to improve on and where improvements have been achieved. DMS also identifies mentions against dealer interaction using Social CRM. A comment made on social media platforms in the form of a ‘tweet’ referencing a dealer’s handle can easily be viewed through a customer’s CRM record. ‘Data is only as useful as its application,’ explained Caines. ‘We can do much more with the same data purely by having it fully integrated into our system. Not only do we offer tools, which customers of other DMS providers have to source elsewhere for, free of charge, but we offer the future ability to do much more with the same data.’ So, with the social media industry continuing to expand and the Pinnacle DMS management system packed with latest innovative developments, dealers can now keep a close eye on their customer ratings, and when trouble does strike they now have the necessary tools to recover and resolve the situation. Sophie Williamson-Stothert (@1Sophie_W)
CarDealerMag.co.uk | 63
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focus on.
Money-saving experts
Go the clean way KARCHER
H
W: karcher.co.uk T: 01295 752 142
aving dirty premises and an unsightly looking forecourt will do their best to turn customers away. But by investing in some clever and economical cleaning equipment you’ll not only make your premises clean and sparkling, you’ll also be helping to make customers return. That’s not to mention a small initial outlay will save you money in the long run. But which company is the perfect partner in this arena? Step forward Karcher – the world leader in the design and manufacture of cleaning machines. The firm produces a large range of machines suitable for dealerships. From pressure washers to workshop floor cleaning machines, there’s a Karcher for every job. And the good news is summer sees the return of
the firm’s highly successful £100 cashback incentive on new Karcher HDS hot water pressure washers. For every HDS machine purchased through a participating Karcher dealer between June 1 and August 31, 2013, Karcher will reward the customer with a cheque for £100. ‘Using hot water when high-pressure cleaning can reduce cleaning time by up to 40 per cent and improve final results,’ Jeff Hilton, Karcher product manager, professional division, told us. ‘This is because oil and grease stains emulsify and flow more easily when heated, making them easier and quicker to shift. ‘Hot water also accelerates chemical processes, making detergents work more quickly. On top of all this, the object being cleaned will dry more quickly because it has been warmed by the hot water.
‘With a wide range of power options there is a machine to suit your specific requirements and budget. Many HDS machines feature an ecoefficiency mode, offering fuel savings of up to 20 per cent without compromising cleaning performance. ‘In addition, Karcher’s machine protector chemical system prevents limescale build-up and corrosion of internal components. The system features a water hardness dial to ensure only the required amount of protector chemical is used, and is backed by a three-year warranty on the heater coil,’ added Hilton. Perhaps now is the perfect time to invest in some high-quality cleaning machines which can do wonders to your profits and improve your dealerships’ reputation. James Batchelor (@JRRBatchelor)
We’ve seen many changes in 75 years... but one thing that hasn’t changed is our commitment to protecting the motor industry and used car buyers Since 1938, HPI has been protecting the motor industry from fraud. With more experience in vehicle checking than any other, HPI is the most trusted vehicle data supplier, providing comprehensive and reliable data to dealers, manufacturers, auction houses, motor insurers, salvage companies and the motoring public.
Find out more about our products and services visit hpi.co.uk HPI and the HPI logo are registered trademarks of HPI Limited. © 2013 HPI Limited. All rights reserved. HPI is a Solera company. E&OE: HPI pursues a policy of continuous product development. HPI_CD75_0613
CarDealerMag.co.uk | 65
focus on.
Money-saving experts
Get those crucial profits soaring Pro-Align
S
W: pro-align.co.uk T: 01327 323007
having down dealership expenditure is all well and good, but when it comes to saving money overall, investment can sometimes be even better. Take your workshop facilities as an example. Arguably, saving money wherever possible is important, but if your current equipment isn’t making you money, then it’s probably time to take a look at what’s sitting on your service department’s floor. It may be, for example, that you’re still paying out for equipment that’s needlessly difficult – and time-consuming – to use. That in turn may be preventing your staff from using it altogether, meaning that your business is effectively paying for equipment that isn’t generating income. Enter Pro-Align. Established 21 years ago, the firm knows all about the benefits of introducing profit-generating equipment to dealerships – supplying hundreds across the UK with marginrich workshop hardware. Today, Pro-Align is a leading supplier in wheel alignment equipment, offering a range of innovative products directly to garages and dealers. What its owners, Paul and Kathryn Beaurain, haven’t forgotten, however, is the history behind the company. ‘We started off as a retail alignment centre ourselves,’ Kathryn tells us. ‘Just out of an industrial unit in Northampton back in 1991, where we had something like six employees – all doing customer alignment. From there it really just grew.’ And grow it did. Pro-Align has grown to a team of around 40 people, and supplies a huge number of dealers, garages and tyre shops across the country with high-tech wheel alignment products. ‘I think the real strong thing for us at the moment is that in times when the industry finds itself in something of a recession, we’ve had our highest sales volumes ever, and that’s a direct result of some of the opportunities that the equipment can bring,’ explains Paul. The key to Pro-Align’s product portfolio is a partnership with a leading American equipment ��| CarDealerMag.co.uk
company: Hunter Engineering. Already dominant in the USA, Hunter’s products are state of the art – and endorsed by a number of car manufacturers, dealers and more. It’s the new Quick Check product that really impresses, however. New in 2013, it gives a rapid, preliminary check of a car’s alignment in less than a minute, unlocking a host of potential revenue generating opportunities and ensuring that the dealer’s main alignment system is utilised most effectively for revenue generating work.. ‘The idea is to have dealers checking every car that comes into their workshops for work – be that a service or warranty work,’ Paul tells us. ‘When you can perform the check in less than a minute, there’s no reason not to.’ Once that is completed, details of the check are instantly uploaded to the internet – allowing service reception staff to print out the results and demonstrate any potential work to the customer. ‘We call it a bit of a soft sell,’ says Paul. ‘Once they see that print-out demonstrating exactly how their wheels are misaligned, there’s no need to even push anything – the customer can see exactly what’s wrong with the car, and the majority of the time they will go right ahead and order the work.’ It’s the easy-sell nature of wheel alignment that’s helping dealers and tyre shops generate comfortable levels of profit every day – and pay for the equipment cost in a matter of weeks. ‘I was speaking to someone recently who ran a fast-fit centre, and they’re now doing about £900 per day in alignment – at 88 per cent gross margin. That’s a great amount of money to have coming in. ‘Many pieces of equipment are seen as something of an overhead in a garage, but the aligner is often seen as the revenue generator for those people who have spotted it and created an alignment strategy – and that’s really the key.’ As far as the products may sell themselves, ProAlign knows that keeping customers happy is still the most important factor. ‘We focus primarily on alignment equipment,
so I suppose the good news – both for us and the customer – is that we can concentrate just on that, in terms of training for people, the spare parts they carry on their vans and so on. If it’s only alignment, then they’re better trained. ‘We work very very hard at after-sales support, too, and the targeted response time is within 48 hours. 55 per cent is achieved within 24 hours though – and if you’re that garage making £900 a day, the quicker the better!’ So, if there’s equipment in your workshop or service department that isn’t generating profit, take a look at swapping it for some that’s almost guaranteed to. After all, with such profit-making opportunities to be had, things can only get better! [CD] Jon Reay (@JonReay)
Pro-Align’s products Unlike many other equipment suppliers, Pro-Align keeps its product range specialised, offering only the workshop tools that it knows and understands best. They offer a whole range of wheel alignment systems – ranging from the clever ‘Quick Check’ product, which is fast enough to offer a preliminary alignment diagnosis in less than a minute, to fully integrated wheel alignment ramps that make the process of adjusting cars’
camber and toe as fast, efficient and profitable as possible. Pro-Align also offers a range of advanced wheel balancers and tyrechangers – giving workshops the option to bring other services in-house too. There are even specialised products for specific franchised dealership groups – with BMW, Volkswagen Group, MercedesBenz and more giving their seal of approval to the systems Pro-Align offers. CarDealerMag.co.uk | 67
DATA FILE.
Thestatistics n
SMMT Sales Data
n
Taking Stock
Private car sales jump in best May since 2005 Overall UK registrations also post strong rise of 11 per cent in May MAY saw private retail car registrations rise 20.9 per cent – outperforming prerecession volumes recorded in 2007. However, May’s total new car market remains down on 2007 levels. Overall, total UK car registrations were up 11 per cent in May to 180,111 units – the 15th successive month of growth and the largest May volume in six years. Registrations have risen 9.3 per cent for the year-to-date to 948,666 units. The year-to-date new car market remains 9.2 per cent off 2007 volumes for the same period, but trends among private buyers provide a good indication that consumer confidence is strong. ‘The performance of new car registrations in May marks a significant milestone for UK automotive, with cars registered by
private buyers rising more than 20 per cent, bettering pre-recession volumes posted in 2007,’ said SMMT interim chief executive, Mike Baunton. ‘While it is clear that buying confidence among UK motorists is very strong, continued economic uncertainty abroad, particularly in the rest of Europe, will mean that manufacturers remain cautious about performance in the second half of 2013.’
Sue Robinson, director of the NFDA, said: ‘With private vehicle registrations outperforming pre-recession volumes it is evident that consumer confidence in buying cars is back on track. ‘The new products and services offered by dealers during 2013 have in no doubt influenced many consumers to buy. However competitive pricing and strong incentives remain important if the sales trend is to continue throughout 2013.’ Richard Lowe, head of retail & wholesale at Barclays, added: ‘Manufacturers and dealers will have to work hard to maintain improved like-for-like sales as we move into the summer, and there is already some anecdotal evidence to suggest that dealership footfall may be shifting down a gear.’
Ford’s Fiesta continues to lead the sales charts ONCE again, the Ford Fiesta is topping sale charts, as it remained the bestselling car in May, according to figures published by the SMMT. The supermini remained number one in May, with 9,316 units registered in the month and 51,708 year-to-date. The Fiesta’s larger brother has reclaimed its position at number two, as the Focus overtook the Vauxhall Corsa with 7,522 units. Vauxhall’s Corsa still managed to ��| CarDealerMag.co.uk
hold on to a top three spot, with 6,634 registered units in May. Volkswagen battled it out for fourth position, with the Golf eventually taking the lead and sitting comfortably in fourth with 5,247 registered in May. The Golf pushed the Vauxhall Astra to fifth with 5,211 units registered.. The Nissan Qashqai follows in sixth with 4,242 registrations and holds on to the same spot in year-to-date with 22,605 registrations.
The BMW 3 Series and Volkswagen Polo were next with 3,832 and 3,201 units, while the Peugeot 208 and Audi A3 finished the list with 3,083 and 3,055 registrations respectively. Petrol-fuelled models have once again, risen above their diesel siblings and have been the strongest in growth so far in 2013 with a 14 per cent increase in registrations. Diesel models did also see an increase, up 9.3 per cent, but their market share dropped to 50.8 per cent.
SMMT sales data May/year to date
5
Top
Most improved manufacturers in May Infinti
+80.95%
Smart
+78.96%
Subaru +60.47% Seat
+45.52%
Aston Martin +40.74%
5
Bottom
Worst performing manufacturers in May Lotus
-38.89%
SsangYong -40.54% Perodua -58.33% MG
-73.47%
Proton -100.00%
infiniti +80.95%
mg -73.47% Figures supplied by SMMT
May 2013February May 2012 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
109 411 76 12,265 101 10,736 1,341 286 7,184 1,171 4,442 25,674 3,579 6,230 38 1,259 108 5,604 3,826 606 22 35 2,321 8,391 13 4,080 687 9,045 15 7,903 837 0 3,088 0 3,884 5,469 553 44 138 2,444 6,321 20,898 16,370 2,323 78 106 180,111
% market share
0.06 0.23 0.04 6.81 0.06 5.96 0.74 0.16 3.99 0.65 2.47 14.25 1.99 3.46 0.02 0.70 0.06 3.11 2.12 0.34 0.01 0.02 1.29 4.66 0.01 2.27 0.38 5.02 0.01 4.39 0.46 0.00 1.71 0.00 2.16 3.04 0.31 0.02 0.08 1.36
3.51 11.60 9.09 1.29 0.04 0.06
2012
Year to date (YTD)
% market share
2013 % Change
82 584 54 10,116 137 10,303 1,430 266 6,039 0 4,073 23,255 3,625 4,774 21 1,126 157 5,176 3,860 695 36 25 1,901 7,282 49 3,576 554 6,722 36 8,238 741 16 2,814 6 2,669 4,696 309 74 86 1,824 6,250 20,275 15,511 2,649 90 86 162,288
0.05 0.36 0.03 6.23 0.08 6.35 0.88 0.16 3.72 0.00 2.51 14.33 2.23 2.94 0.01 0.69 0.10 3.19 2.38 0.43 0.02 0.02 1.17 4.49 0.03 2.20 0.34 4.14 0.02 5.08 0.46 0.01 1.73 0.00 1.64 2.89 0.19 0.05 0.05 1.12
3.85 12.49 9.56 1.63 0.06 0.05
32.93 -29.62 40.74 21.24 -26.28 4.20 -6.22 7.52 18.96 0.00 9.06 10.40 -1.27 30.50 80.95 11.81 -31.21 8.27 -0.88 -12.81 -38.89 40.00 22.09 15.23 -73.47 14.09 24.01 34.56 -58.33 -4.07 12.96 -100.00 9.74 -100.00 45.52 16.46 78.96 -40.54 60.47 33.99 1.14 3.07 5.54 -12.31 -13.33 23.26 10.98
588 2,342 433 61,350 480 50,924 5,465 1,148 35,898 5,165 23,713 132,199 24,765 31,988 226 7,317 755 30,436 26,074 3,376 80 139 13,164 45,024 107 19,364 4,618 51,059 137 46,366 3,232 15 15,874 3 18,324 26,023 2,419 255 925 14,081 38,886 107,770 81,726 13,653 365 415 948,666
%market share
0.06 0.25 0.05 6.47 0.05 5.37 0.58 0.12 3.78 0.54 2.50 13.94 2.61 3.37 0.02 0.77 0.08 3.21 2.75 0.36 0.01 0.01 1.39 4.75 0.01 2.04 0.49 5.38 0.01 4.89 0.34 0.00 1.67 0.00 1.93 2.74 0.25 0.03 0.10 1.48
4.10 11.36 8.61 1.44 0.04 0.04
2012
%market share % Change
504 3,530 422 55,069 558 50,212 7,622 1,265 30,949 0 20,807 126,724 21,785 27,806 268 5,951 967 27,507 22,303 3,938 79 150 12,957 39,579 511 17,463 3,092 43,159 211 43,774 3,168 138 16,476 143 15,755 22,613 2,175 376 1,089 10,568 38,201 94,598 78,684 14,151 428 441 868,166
0.06 0.41 0.05 6.34 0.06 5.78 0.88 0.15 3.56 0.00 2.40 14.60 2.51 3.20 0.03 0.69 0.11 3.17 2.57 0.45 0.01 0.02 1.49 4.56 0.06 2.01 0.36 4.97 0.02 5.04 0.36 0.02 1.90 0.02 1.81 2.60 0.25 0.04 0.13 1.22
4.40 10.90 9.06 1.63 0.05 0.05
16.67 -33.65 2.61 11.41 -13.98 1.42 -28.30 -9.25 15.99 0.00 13.97 4.32 13.68 15.04 -15.67 22.95 -21.92 10.65 16.91 -14.27 1.27 -7.33 1.60 13.76 -79.06 10.89 49.35 18.30 -35.07 5.92 2.02 -89.13 -3.65 -97.90 16.31 15.08 11.22 -32.18 -15.06 33.24 1.79 13.92 3.87 -3.52 -14.72 -5.90 9.27
SMMT HAS REMOVED DAIHATSU AS THEY registered no new vehicles in 2012. A new entry for 2013 is dacia CarDealerMag.co.uk | 69
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Feature.
£50 Mint maroon MG helps car CONTEST
Brewer get on track
Mike bags a peachy MG ZS and turns over a quick profit. James realises buying his Metro was perhaps not a good idea...
MIKE’S story £1,200 current tally
D
etermined to get ahead in the battle between me and that upstart Baggott, I wasn’t going to hang around after the sale of the disgusting peppermintcolour Corsa. I needed to bag a tidy car, make a slice of dough on it and move on. And the country’s best used car dealer (ahem.., me) has just gone and done that. While Baggott was crying about buying that shed of a Metro, I hot-footed it down to a mate of mine. Chatting over a cup of builder’s I tactfully told Alan about my situation. He pointed to a little MG parked in the corner – a ZS hatchback in old man burgundy. It was in good nick and Alan was asking the not unreasonable money for it. He wanted to make a quick sale on it too after buying it the week before from BCA. I used my charm and twisted his arm to let it go for a bit under a grand. Alan gave the car a quick service and stuck a ticket on it. And after shelling out £1,050, the maroon MG was mine. Further inspection showed it was a real gem. It had only covered 55,000 miles with a full service history, one lady owner and the handbook was stuffed full of copies of all the old MOTs. It also had a wad of paperwork detailing servicing and showing it had the all-important headgasket replacement and cambelt fitted at 32,000 miles. The only small gripe was the tow-bar – but that could be removed in a jiffy. It didn’t drive too badly either. As MG ZSs go, it was a real minter and I have to say I had spent a few good miles in it before I moved it on. But I eventually had to put it up for sale. I thought I’d give social media a try. You know, a bit of tweeting and a bit of Facebook – but no-one
was really that interested. The guys at Auto Trader saw my tweets though, and offered to place an ad free of charge for the MG. I bit their arm off! Using my loaf, I thought placing the advert with a set of tasty pics a couple of days before Easter would get some interest. Easter holidays are always a good time to punt out a car with an attractive price tag. I put it up for £1,200 – and it worked. I had six enquiries by the end of the first day. The first potential buyer turned up and spotted the towbar. Now, I had clearly shown in the pics
accompanying the ad that the ZS had a tow-bar. But the first buyer seemed to forget this. He took one look at it and muttered ‘I never buy a car with a towbar’ and left. You couldn’t have made it up. The second viewer turned up, took it for a test drive and offered the full asking price. A nice fella turned up with his dad. He still wanted something slightly sporty but wasn’t going to cost the earth to run. Deal done. So, with £1,200 in pocket I’m off to look for another winner. Baggott: Game, set and match. [CD]
JAMES’S story BIG Mike. The smarmy git. There he is banging on about making the big bucks, selling this and trading that. But not only did he goad me into buying an utter piece of rusting granny-mobile, he won’t even answer my emails now. I know I’m not the editor any more, but come on that’s simply NOT on. Left with this ball and chain of a car, you’ll have probably read in my column about the lighter than when it left the factory thanks to the timewasting, keyboard monkeys who messed me ravages of rust, managed to bend the ramps. around on eBay (p29). After two buyers pulled Now, either Andy had asked Rik Waller to out I decided to stop using that hateful current do the driving up the ramp or he’d bought website and do something else with the tally them from the 99p store. He won’t admit doom blue biddy transporter. to either so I can only assume my Metro is Enter operations director Andy made of Dark Matter and came here from Entwistle. He’s got more contacts than outer space. That would explain the styling. Specsavers so offered to assist. Plan was to Anyway, PJ has now assessed the Metro and relieve Matt The Mechanic from the headache and declared it a basket case. Andy says he used drop it off at Andy’s spanner-wielding mate PJ’s two words and one was ‘it’s’ and the second one place. Sounds simple enough, but as you can see sounded like the action you do when someone’s from this picture things didn’t quite go to plan. throwing a blackboard rubber at you at school. Driving the city car on to the ramp to get it on the towing device proved rather tricky – so tricky in fact What’s the plan now? I have no idea. Hopefully by next month I’ll have one. that the featherweight car, which is considerably
£1,325
CarDealerMag.co.uk | 71
TAKING STOCK. Once again, Motors.co.uk and BCA give their thoughts on what dealers should be paying attention to in the months ahead. Here’s what they have to say
‘Are there green ‘Values still shoots in the strong, despite used market?’ tough economy’ asks Dermot Kelleher, Motors.co.uk’s head of business intelligence
W
ith the latest figures showing that the UK economy has avoided falling back into recession, house prices up marginally on a year ago and Google trends data showing a 10 per cent uplift in visits to vehicle review and comparison sites year-on-year, we are starting to see greater confidence from both our dealer customers and the consumer marketplace. Indeed, we’ve seen an increase of almost five per cent, monthon-month, in people looking for vehicles in the £8,000-or-more category on Motors.co.uk. Not surprisingly, the top 10 mostsearched-for vehicles on Motors. co.uk in April were very similar to the previous month; featuring Fords, Vauxhalls, BMWs, Audis and Volkswagens. Indeed, the top four cars in April were the Volkswagen Golf, Ford Focus, Ford Fiesta and BMW 3 Series. We also continue to receive more than 60,000 searches a month for supercars, demonstrating that the top end of the market is still going strong. Almost a third (32 per cent) of all Porsche searches are for the 911 model. However, the most
��| CarDealerMag.co.uk
popular Porsche is the Boxster, hailed as ‘2012 Roadster of the Year’ by Auto Express. The California is the most searched-for Ferrari, while the DB9 just outperforms the Vantage when it comes to Aston Martins. This consumer trend is also reflected in the wholesale markets, with Manheim confirming that conditions in the UK are the most positive they have seen in the past four years. Indeed, the volume of used vehicles sold through Manheim’s auctions has risen by nearly 20 per cent during the first four months of 2013. Overall, strong signs for the used car trade in the UK. But, with the volume of new stock entering the marketplace, as well as the attractive manufacturer finance deals currently on offer, dealers have to take an even more cautious approach to pricing used stock This is especially important when consumers can access prices from a variety of sources on mobile devices while standing on the forecourt.
says Simon Henstock, BCA’s UK network operations director
U
sed car values are as strong as ever. When we look at our quarter one Pulse report we find headline average used car value reached a new highpoint over the first three months of 2013. Across the board used cars averaged £7,064 across the period, meaning quarter one 2013 recorded the highest value since Pulse began reporting in 2005. This represented a significant £417 (6.2 per cent) improvement over quarter four 2012 and was £950 (15.5 per cent), ahead year-on-year. The period included three of the four highest monthly average values on record. Unsurprisingly, given three months of consistently high values in quarter one 2013, the quarterly figure established the highest point on record and continued the pattern of relatively sharp rises seen in the previous two quarters. The longer view suggests supply issues are having an increasingly important role to play in average
price performance. This year’s highest used car value figures for seven years are even more interesting when you consider this is against a backdrop of economic pressures, reduced consumer confidence and the return to recession in the past year. But dealers should not think that mileage is such a key price indicator when looking at the wider picture. It is widely accepted that condition is by far the more important factor when valuing a vehicle. The average mileage of used cars across the board fell for the third quarter running, down by 1,500 miles to 56.5K miles. It is the lowest quarterly average figure recorded since 2010. Average mileage when sold continued to decline for fleet and lease vehicles, and is some 3,000 miles lower than a year ago. This could indicate that the trend for fleet and lease operators to extend in-service periods is slowing or even reversing, or simply that fleet drivers are ‘managing’ their journeys to save costs. There was also a drop in the average mileage of part-exchange vehicles sold at BCA during the quarter.
Buyers’ guide
Boxster
(987) ’05-’12
..in association with
Warrantywise helps you choose the best stock for your forecourt. This month the Porsche Boxster is the model in the spotlight What is it? The second-generation Boxster arrived in 2005 and built upon its predecessor’s strong reputation of high build quality and strong residual values. Used Boxsters make great propositions in the used market, but dealers should be wary when coming to stock them.
WHAT CAN GO WRONG? Without stating the obvious, these cars will have been driven and enjoyed. While the Boxster was never as much of a handful as a 911, they can still bite. So check both front and rear trunks for any poor repair work. If Boxsters decide to break loose on the roads, it’s normally the front or back that takes the hit… And usually it’s a tree or barrier that stops them. Suspension bushes in the track control arms tend to fail every five-or-so years. If a squeaking noise is heard when driving over speed humps or there’s accelerated tyre wear, these are sure signs of suspension bush failure. Broken coil springs are not unusual – this is easy to spot as the car will not sit level and there will be obvious knocking noises over rough ground. Fractures in the bore can happen to a Boxster engine
THE RIGHT BUY
The ideal spec Boxster should have sat-nav, full leather (black or dark colours) with 17- or 18inch alloys, and manuals outsell cars with Tiptronic.
at any point in its life without warning. The engine casing can be repaired, however it will require a complete engine rebuild. This can be seen if the car is emitting blue smoke from the exhaust. The most common and well-reported issue is the failure of the intermediate shaft. There is much debate as to the cause of this problem. If caught early enough it can be repaired, however if not caught early it can cause major engine damage, requiring a replacement engine. Meanwhile, oil leaks from between the engine and transmission should also be taken seriously. This may be a failure of the rear main seal but may also indicate pending failure of the IMS bearing
WHAT’S THE PERFECT BOXSTER? The ideal spec Boxster should have sat-nav, full leather (black or dark colours) with 17- or 18-inch alloys and manuals outsell the Tiptronic. Boxsters with the 2.7litre engine sell better with sat-nav, leather, heated seats, auto dimming rear mirror and cruise control. Meanwhile, Boxster S cars should be bought with Sports Chrono as these will be bought by ‘drivers’ who demand such features.
THE PERFECT SHADE
On the whole, Boxsters are not colour sensitive. Bright shades such as red and yellow are always desirable as are subtle darker colours like black.
KNOWN PROBLEMS
Boxsters can suffer from failing suspension bushes, broken coil springs, fractures in the bore and the failure of the intermediate shaft.
Warrantywise’s top Boxster facts 21 per cent of all Boxster warranties in the last 18 months have claims logged. Pricing: Private warranty price from £740 (12 months) Trade warranty price from £170 (six months)
Top claims: n Engine £1,834 n Suspension/steering £990.65 £662.12 n Oil leak n Alternator £559.20 n Clutch interlock switch £623.85 n Water pump £505.51 n Gear selector cables £472.33 Top problems: n Suspension bushes n Broken coil springs n Fractures in the bore n Intermediate shaft
UNDER THE BONNET
All variants are popular as different engine sizes appeal to different budgets. The most sought after are the 3.4-litre Boxster S models. CarDealerMag.co.uk | 73
data file.
MAYSEARCHES
Percentage of total number of searches on TheVanWebsite.co.uk for the month Mercedes-Benz Sprinter
4.84%
Ford helps British Gas make a big splash Blue Oval gives company new van to help raise money for hospital
Ford Transit
5.62% Volkswagen Crafter
2.45%
Mercedes-Benz Vito
4.11% Volkswagen Transporter
4.23%
Citroen Berlingo
2.68% Vauxhall Vivaro
2.83% Ford Transit Connect
3.40% Mitsubishi L200
3.66% Fiat Ducato
3.45%
F
ord has supplied British Gas with an all-new Ford Tourneo Custom that will travel thousands of miles on UK roads this summer, helping to raise £1m for the Great Ormond Street Hospital Children’s Charity. The British Gas ‘Swims Britain’ challenge aims to encourage thousands of the energy company’s staff and their families to take part in swimming challenges across the UK, from Windsor in the south of England to Edinburgh and Glasgow in Scotland. ‘It’s a massive challenge,’ said British Gas sponsorship manager Matthew Leopold. ‘We want to get all of the British Gas team involved in this huge charity swimming event, from office and sales staff, to the engineers in the power stations and the people out driving their Ford Transit vans
every day.’ The aquatic-themed Ford Tourneo Custom is powered by a Dagenham-built 123bhp 2.2-litre TDCi diesel engine. The vehicle is well-equipped for the UK tour, with nine seats, a 230-volt power converter and Ford’s satellite navigation system. ‘We wanted a vehicle that British Gas staff could relate to but could provide added comfort and flexibility, and the Ford Tourneo Custom fits the bill perfectly,’ said Leopold. Ford of Britain fleet director Phil Hollins said: ‘This is a fantastic challenge to be associated with and Ford is proud to support the charity’s worthy cause.’
Citroen Vans: On a screen near you CITROEN Vans has signed up for a 12-month advertising deal on Discovery Networks UK’s documentaries. The campaign will see Citroen Vans sponsor over 235 hours of programming per month across the Discovery’s channels. The firm says it will gain ‘a high level of on-air visibility’ for its vehicles – with 80 seconds of idents shown per hour as openers,
closers and break bumpers across Discovery’s documentary portfolio. Citroen’s Mark Lynch, said: ‘With this latest campaign we have adopted an innovative route, using characters that might be found in documentaries, taking them out of their natural environment and putting them into a Citroen showroom. It’ll catch buyers’ imaginations.’
your sales...
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..in association with
DEALFINDER.
Latest finance deals on COMMERCIALS
Berlingo comes with a full three-year and 10,000-mile warranty and available to order in a variety of colours. The Berlingo panel-van comes with a number of features as standard including Smartnav and Stolen Vehicle Tracking, hard plastic floor protection in the load compartment and rear fog lights with twin reversing lights. Type bit.ly/BerJulyDeal into a web browser for more details.
renault trafic KEEPING with the French theme, Renault has been labelled one of the leading LCV manufacturers in Europe, and back in 2011 the Trafic was found to be the thirdbest-selling van in the panel van sector. And it’s easy to see why – despite its advancing years the Trafic is nicely styled and has a comfortable cabin. It’s a favourite among many UK fleets. The SL27 DCi Sport Renault Trafic is
currently available under a van leasing deal for a £1,199 deposit and payments of £199 over a period of 48 months. This excludes VAT and subject to mileage of 10,000 miles per annum. The diesel engine produces a plentiful 115bhp, has a combined fuel consumption of 40.9mpg and the Trafic has a maximum loading weight of 1080kg. Type bit.ly/ TraficJulyDeal into a web browser for more details.
ford transit connect FORD will always remain the key tool in running any British business, and the Transit is marked as the most significant vehicle in the LCV range. The compact Connect has become the ideal small van for small businesses. With a gross weight of 2240kg, the lowroof TDCi 75bhp has a combined fuel economy of 45.6mpg and a maximum loading weight of 815kg. For a deposit of £1,212, this particular
COOL CONVERSIONS
Is flat-pack the future?
Citroen BERLINGO CITROEN is making improvements on its commercial vehicle range and the Berlingo is certainly a popular contender for all businesses. The 1.6HDi L1 625 LX diesel engine is rated at 75bhp and has a combined fuel consumption of 55.4mpg. More importantly, the Berlingo can cover over 700 miles on a full tank of 60 litres. For £8,597 including VAT the
Lawton
model is available for £181 per month over a 48-month payment period excluding VAT and based on 10,000 miles per annum. Road tax is also included for the full term of the contract. Standard features include a recirculation heater, six leashing points in the load area and a centre console with coin tray, penholder and two cup holders. Type bit.ly/FordJulyDeal into a web browser for more details.
I
have read with much interest about a flat-pack small truck called the OX. No, the story wasn’t about a certain Swedish furniture retailer turning its hand to commercial vehicles, nor was it written
on April 1. A British charity is looking to provide a clever solution to transport problems faced by millions in remote areas of Africa. Designed and developed by British-based Global Vehicle Trust, with Sir Torquil Norman the driving force behind the project, the charity has created a development model, worked out the logistics and is now after more philanthropic money to take the project to the next stage. The OX can be flat-packed within itself so there is no need for expensive shipping boxes or individual pallets and freight costs are reduced. So compact is the OX in this form that six of them, complete with engines and transmissions fit into a standard 40ft Hi-Cube container. Once shipped an OX takes just three people 11.5 hours to complete assembly. No specialist skills or equipment is necessary, most panels are interchangeable from one side to the other and the fewest possible components are used. Power comes from a 2.2litre diesel engine and there is enough space to seat 13 in the back or three europallets. Although luxuries on the OX are in short supply — the front seats resemble a bench — it is durable and can negotiate 75cm of water. Although designed with Africa in mind, the possibilities of it appearing in some European markets can’t be overlooked. It could appeal to estate owners and farmers alike. All sounds too fanciful? Perhaps, but it does offer an intriguing glimpse of a future where manufacturers can flat-pack units to save on costs, perhaps even leaving some final assembly to the retailer or even, gulp, the customer!
‘Some assembly could even be left to the customer’
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 | 75
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auctions.
Used market is rosier than sale prices suggest bit.ly/marketrosy
BCA set to roll out stock funding product Company reveals plans to launch clever service to help out dealers
auction stations
The silver lining
D
B
CA Group has announced that it will shortly be launching a buyer stock funding product designed to help independent car dealers and small car supermarkets. Andrew Shaw has been appointed to head this new finance business which is launching in July and joins from autoXP, the specialist automotive service provider. In his new role, Shaw will drive the launch of BCA’s new specialist buyer funding service. This will offer funding support to independent car retailers, small car supermarkets and individual dealers who struggle to secure financial support from the banks and other traditional lenders to fund their purchases. Shaw said: ‘I am delighted to be joining the BCA Group at an exciting time for the remarketing industry. BCA is the clear market leader in the UK and Europe and is spearheading a number of exciting new initiatives in the used vehicle sector.’
Henstock
BCA managing director, Spencer Lock, added: ‘We are very pleased to have secured the services of Andrew Shaw who will drive this innovative new BCA venture. Lack of access to finance is still a major concern for many small businesses, and this issue is magnified many times when it comes to securing finance for the smaller independent motor retailers. ‘Many simply cannot get funding because business lenders do not understand the specific requirements of the motor trade and underwriters are wary of the exposure. BCA is in an ideal position to address this issue and we’ll be making further announcements shortly.’
Report: Ex-fleet values hit six-month high Daren Wiseman, valuation services THE latest Manheim Market Analysis manager at Manheim, said: ‘While highlights that, despite the average overall prices achieved at auction age of vehicles at auction remaining remain strong, we are seeing a unchanged since March 2013, their tightening of the market, with fleets typical mileage has reached a 12-month having to work harder to achieve top low of 58,592 in April. The report book values. We’re increasingly seeing also shows that, over the past month, that additional investment in pre-sale the average selling price of ex-fleet activities such as body repairs and cars has risen by £131, confirming the other cosmetic improvements are really continuing upward trend in paying off right now.’ residual values. Car dealer cowboy ads 8/4/13 13:19 Page 4
No cowboys. Just Just trade trade professionals. professionals.
ata published by BCA suggests silver is the most popular colour for used cars sold in the remarketing arena, ahead of black and blue. Together these three broad colour groups covered nearly threequarters of the cars analysed. In BCA’s sample of over 40,000 vehicles silver cars accounted for 29.5 per cent, ahead of black with 25 per cent. Ever-popular blue accounted for 20 per cent, with grey at 13 per cent. Red cars represented eight per cent, with white and green each accounting for just under three per cent. Esoteric colours such as yellow, orange, bronze, mauve, turquoise and pink featured but with very low volumes. Of the more popular colours, white cars achieved the highest value on average, while grey and black cars also outperformed other colours in terms of price. However, it was noted that white cars were sold at a younger age (37 months) and lower mileage (43K) than the average in the sample of 60 months and 58,000 miles. A lot of this is about supply and demand — the current high-impact white finishes are extremely popular and still relatively limited, compared to the thousands of black, grey, blue and silver cars sold. Anyone who has ever bought or sold a used car quickly learns the importance of colour and the effect it can have on the price. There are subtle differences between metallic blue — very saleable – and trade staple ‘doom blue’ — usually less desirable. Reliable silver looks good on most cars and while black is supposed to be funereal, on a performance model it looks menacing and on a luxury saloon it’s stately.
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com
CarDealerMag.co.uk | 77
TRADER TALK.
..in association with AutoTrader
There are 125,000 cars in the wrong place Trying to buy stock without using the available market data is haphazard at best
I
s the used stock on your forecourt in demand? Most used car dealers will tell you that the vehicles they stock are in demand and will retail quickly to generate much needed profit. But how can that be true when recent research found that out of more than 425,000 used cars offered for sale, 125,000 were in low demand in the area where they were being sold. That means on average nearly a third of vehicles on used car dealer forecourts throughout the country are the wrong cars in the wrong place. If you believe that you are stocking what is in demand locally, but 30 per cent of your stock is in low demand, the chances are that most of your competitors are in exactly the same position. Which means that whoever identifies that unwanted 30 per cent and replaces those vehicles with cars that people actually want to buy, will reap the benefits. Having the right cars (that are in demand) in the right place (where that demand is and where the potential profit margin is highest) is critical. But how can you determine if the used car in your showroom or the one you are just about to take in part exchange or buy at auction is in demand locally and is worth stocking?
‘Intelligent use of data is fundamental to the success of the used car operation’ The answer can be found in the wealth of market data available and the intelligent use of that data is fundamental to the success of the used car operation. If you try to buy cars without using the available market data you will find it a haphazard process at best. The right market data will confirm if your used car stock is actually in line with what is in demand locally. Stocking a selection of Fiesta, Astra, Clio and A4 models when local consumers are looking for a 3-Series, Focus, Corsa or Golf could compromise your stock turn and undermine the gross profit potential. However, if you use the right market data in the right way you will not only be able to identify what’s in demand in your area but will also ensure that you pay the right price to be able to sell at the right price to maximise your
gross profit potential. The data will include metrics that track consumer supply and demand, measure stock turn and identify the potential gross profit margin. These metrics will enable you to make business-critical decisions such as whether to hold stock, re-price stock, purchase new stock or dispose of vehicles and how to assess the potential of a part exchange. Combining these metrics with a retail mindset will result in the right cars being in the right place. Given there are 125,000 cars in the wrong place there is a huge opportunity to win in this environment. However, many dealers are still either unable or unwilling to use the data and some don’t even trust it. If you didn’t make a New Year’s resolution why not make one now to use the data available, make more money and beat your competition? What have you got to lose?
Who is Tim Peake?
Tim is group strategy director at Trader Media Group,‚ publishers of Auto Trader, the UK s largest car marketplace. Visit autotrader.co.uk
YOU. ARE. NOT. A. RO. BOT
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ON TRACK.
..in association with TRACKER
Tracker ends spate of car thefts Device sees caravan found and two arrests within an hour of it being stolen
P
ast columns have seen me discuss the benefits of TRACKER from a dealer profitability viewpoint, as well as the benefits to car-owners who fit a TRACKER to their vehicles. It’s all very well providing data and figures to show the effectiveness of TRACKER, but the best recommendation always comes from those whose vehicle has been saved by TRACKER. Earlier this year, a Hampshire resident had their BMW M5 stolen using the keys — an all-toocommon occurrence, with many criminals using this method as the easiest way to bypass the complex security systems on modern vehicles. Luckily they had a TRACKER system installed, and so local police were able to track the vehicle to a thieves’ ‘cutting shop’ in which thieves had been stripping down vehicles for parts for months. The discovery of the owner’s BMW led to the recovery of several other vehicles and the arrest of two men, helping police stop a spate of car thefts. BMWs are a desirable car for both legitimate buyers and thieves alike — as Mr Dhesi from Kent discovered, waking one morning to find his BMW X5 had been stolen from the driveway. He reported the theft and, thanks to the power of TRACKER, police recovered the vehicle in London just five hours later. Mr Dhesi said: ‘My family relies heavily on this car so luckily the inconvenience was minimal and we did not have to make a claim on our insurance. We’re so happy with this quick recovery I am considering
‘Local police were able to track the vehicle to a thieves’ cutting shop which had been operating for installing a TRACKER on all our family vehicles.’ But it’s not just cars we have helped recover, TRACKER’s innovative Mesh Network — where other vehicles fitted with TRACKER systems are used as a listening device to locate stolen vehicles — recovered a valuable caravan for a relieved Mr Stevens. The caravan was recovered and two people were arrested within an hour of the reported theft. Mr Stevens said: ‘TRACKER was amazing. If everything had a tracker fitted you’d never lose anything!’ And that says it all really. TRACKER Mesh Network also helped close the net on a gang of motorcycle thieves in Essex. A bike fitted with a TRACKER was stolen, and within a short time 44 vehicles fitted with TRACKER unit empowered with Mesh had picked up the signal, leading police to a haul of stolen
superbikes at a farm in Upminster — a result which delighted both the owner and police. These real-life stories help demonstrate the power of a TRACKER unit in recovering vehicles, and the real gratitude the recoveries bring. What began as a nightmare situation can quickly be turned on its head, and many of our customers tell us of the initial panic after discovering their vehicle is stolen, only to feel a sense of relief when they remember the TRACKER unit fitted. One thing is certain — anyone whose vehicle has been recovered by TRACKER would never own a vehicle without one again.
Who is David Wilson? David is sales and service director for TRACKER. Read his column here every month.
C A L L O U R D E D I C AT E D T R A C K E R D E A L E R S U P P O RT T E A M TO DAY
0845 604 6028 J20364 Car Dealer Strip Advert.indd 1
CarDealerMag.co.uk | 79 18/3/13 12:55:27
MOTOR MOUTH.
..in association with Motors.co.uk
Apps are way to go in online marketing Visitors on mobiles and tablets spend more time and view more pages
M
ore than 35 per cent of traffic to Motors. co.uk now comes from mobile devices and this is up from 14 per cent just a year ago. As we predicted at the end of 2012, there is a chance that by December 2013, half of all traffic to dealer and classified websites will come from mobile devices. Indeed, Google has stated that 35 per cent of all automotive searches now take place on mobile and tablet devices, so there’s no doubt about the importance of having a responsive website to ensure consumers get the best possible experience, regardless of access point. However, despite the strong arguments for responsive design, the reality is dealer groups have found it challenging to navigate their way through the ‘marketing speak’ to determine the best solution for their needs. There has been a great deal of talk about the whole range of online marketing tools over the past 18 months, with changes to Google’s search algorithms, an explosion in social media platforms and the growth in accessible mobile devices making their way to market. With that in mind, it is perhaps not surprising that our recent research showed just three of the UK’s top 100 dealer groups have responsive websites in place. When it comes to mobile websites, the figures are a bit stronger, with 65 dealers investing in separate mobile sites. Of the 100 dealer groups researched, 13 have iPhone apps and just two have built an app for
‘With potential buyers using thousands of different devices it is important a dealer gets its message across’ Android phones. Five have a specific app for Apple tablets and only one has invested in an Android tablet app. With millions of potential buyers using thousands of different devices running on dozens of operating systems, it is important that a dealer can get its message across in a way which will resonate with its audience. This means making sure that the right content is accessible on the appropriate platforms. One responsive website done properly is likely to be far more effective than trying to design a different site for each platform. We launched our responsive web service, Flex, in 2012; the first responsive web platform designed specifically for the automotive industry. Since its launch, we’ve seen phenomenal takeup among some of the smaller dealer groups. These innovative dealers, who are nimble enough to act quickly, have seen demonstrable success in
the performance of their new responsive website, with improvements to the amount of time spent on site, the number of page views per visit and a fall in the bounce rate. In addition, visitors on mobile and tablet devices have generally spent longer and viewed more pages on the responsive website than they did on the previous web format. That said, there is still an argument for showcasing dealer groups through apps which are designed specifically for the functionality of the device. The figures for mobile access are only going one way — up. That means that the dealer groups who have not yet formulated a responsive online strategy need to get their thinking caps on fairly quickly.
TheisE The Eye Motors. Motors.co.uk complete complete respo tracking tracking syste The Eye is
Motors.co.uk’s The Eye is complete response Motors.co.uk’s tracking system complete response Who is Andy Coulthurst? The Eye is tracking system The Eye The is EyeMotors.co.uk’s is complete response Motors.co.uk’s The Eye is Motors.co.uk’s tracking system complete response Motors.co.uk’s complete response tracking system system complete response tracking tracking system It monitors vehicle views and gives you
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MARKET INSIGHT.
..in association with ASE-global.com
Pendragon finally completes its financial restructuring Broker’s sentiment is improving but tangible net worth is a net liability position of £93m
IN DETAIL Date: 22.05.13 Open: 26.00 Trade high: 26.75 Trade low: 25.75 Close: 25.75 GBp
Price: 25.75
I
n the first of a series of articles where 25.0 ASE reviews the financial and share performance of the quoted groups, we look at the largest player in the sector 22.5 — Pendragon plc. The group has been through a tumultuous period in recent years with concerns revolving around the heavily geared balance sheet. 20.0 In May 2013, it finally completed its longawaited financial restructure and successfully replaced all existing facilities with a £175m 17.5 seven-year bond and £145m four-year revolving credit facility. This compares favourably with the existing 15.0 £320m of facilities split into £238m of revolving credit and £82m of longer term loan notes. Gearing (being the net debt of the company relative to its equity) of course still remains high at 84 per cent as at December 31 2012 although May Aug much improved over previous years with a net repayment of debt of £109m being achieved over the last two years. Overall, therefore, it appears that the group’s financial health is much improved and it can focus attention again fully on improving profit generation from its operating activities. In ASE’s view the balance sheet still gives some cause for concern, however. Net assets of £275m include goodwill of £368m. on sales of 1.0 per cent. This compares favourably Therefore tangible net worth is with prior year profits of £30.8m or 0.9 per cent considerably lower and actually return on sales. in a net liability position of A positive trading statement has been issued £93m. in May 2013 reflecting that Pendragon (in line Considering the goodwill a with the market as a whole) is enjoying favourable little further, reported underlying trading conditions for new cars in both the earnings of £36m implies Stratstone and Evans Halshaw business goodwill being valued at units. around 10 times profits — The statement also highlights significantly higher than strong used car activity, which the prices ASE sees in trade indicates a better than average sales which will typically performance as ASE’s general vary in the region of zero experience is that the used car to five times underlying market has been broadly flat so far earnings. in 2013. Net underlying profit Of some concern is the group’s before taxation for the exposure to its defined-benefit year ended December 31, pension arrangements with a net 2012 was £36.4m on sales charge of £19.2m taken in the year Pendragon CEO of £3.6bn, a net return in respect of these arrangements, Trevor Finn
‘Clearly, the City expects Pendragon to continue to rebuild its balance sheet.’
Nov
Feb 2013
May
wiping out much of the hard work in attaining the profits noted above. The positive news alongside the general improvement in the trading environment for the sector has lifted the share price sharply out of the doldrums from November 2012 onwards. At the current price of 25.75p the company is valued at £370m, compared to its balance sheet showing net worth of £242m (including the goodwill of £368m). The company is therefore valued at a considerable premium of £463m, a stand-out feature in a sector where share valuations tend to follow more closely the underlying tangible net worth. Clearly the City buys into the future potential of Pendragon to deliver significant improvements over its current earnings and continue to rebuild its balance sheet. Given the company’s listing on the London Stock Exchange, it is interesting to review the various stockbrokers’ views of the group. Overall, the most recent updated forecasts in May 2013 show an improvement in sentiment and the group is now viewed in a net neutral-tobuy position with target prices ranging in the 19p to 31p range.
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data file.
Jon Reay on the road
Stop moaning – manuals are dead
H
‘The average sporty Clio’s daily duties will involve trips to Sainsbury’s, not laps of La Sarthe. ’
Jon is staff writer for Car Dealer and is keen to share his thought- provoking views on the automotive industry. ��| CarDealerMag.co.uk
Apprenticeship training Babcock
ave a glance around the motoring press these days and you might notice a similar consensus popping up: Manual gearboxes are dying out. As undramatic as that statement sounds in reality, it’s something that vocal selection of journalists are getting a bit hot under the collar about. Theory goes that, by slotting in a fancy new dual-clutch, flappy paddle automatic gearboxes where there used to be a gear lever and a clutch pedal, cars are becoming less involving than before – and as a result, less fun to drive. Now for the driver of a leased Seat Leon diesel that’s probably not top of the priority list, but if you’re buying a hot hatch, that lack of direct control – say the angry motoring journalists – makes a big difference. Thing is, I reckon that – as ever – the loudest voices aren’t necessarily the most important. Take the new Renaultsport Clio as an example. After years of making bite-y, track-hardened, shouty little hatchbacks with chunky 2.0litre engines stuffed under the bonnets, they’ve made the new one just a little differently. For starters emissions regulations have meant bringing in a smaller, turbocharged engine – sacrilegious enough for many performance ‘purists’ – but the real surprise is the introduction of a dual-clutch, six speed automatic gearbox too. My question is, does it really matter? Let’s be honest here: As much as hot hatch buyers would like to pretend otherwise, the average sporty Clio’s daily duties will involve trips to Sainsbury’s, not laps of La Sarthe. What’s more, these owners – and I include myself in this – aren’t necessarily the most talented of drivers. I can fling a car around as aggressively as the next person, but I’m in no doubt that having a quicker way of flicking between gears would improve things considerably. And on top of all that, a car with a handy automatic mode is easier to live with when day-to-day M25 traffic hits, too. The manual gearbox is dead – long live automatics, I say.
Who is Jon Reay?
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the fleet.
New arrival:
Nissan QASHQAI
Say hello to a British-built SUV THE Nissan Qashqai is an incredibly boring car to review. It’s not that the car itself is boring, just that it does everything so darn well. After a few weeks thrashing, bashing, poking and prodding our new Qashqai 360 1.6 dCi I’m yet to find anything that comes close to getting on my wick. Despite having a real presence on the road, it feels small and nimble about town. Meanwhile, the turbocharged diesel engine combines an abundance of power with excellent efficiency. And in value-added, equipmentladen 360 guise – complete with parking cameras, the Nissan Connect system and a panoramic glass roof – there’s not much that can touch its £20,395 price tag. Finished in a dazzling Arctic White pearlescent paint job and rocking a set of 18-inch Onyx alloys, it looks the part too. It remains to be seen whether the Qashqai will drop its guard and reveal any bad habits a few weeks down the line but, for now, I’m enjoying the ride.
Mal Hay
Fifth report:
FordB-MAX
Surprise! Editor Batch is bowled over by the B-Max
A
mazingly this month has seen my first proper drive of Ford’s latest mini MPV. Actually, I don’t know why I am so amazed. The car which is christened ‘The Mighty B-Max’ is proving to be difficult to drive. No-one really wants to hand the keys over – and I can understand why. I was on the international press launch of this last year, and normally a manufacturer shows you the best driving roads, lets you drink champers until three in the morning and feeds you swan. This *sometimes* sways your view of the car you’re supposed to be driving. Ford’s launch was lovely. So when this B-Max turned up at the office a few months ago, I naturally assumed – as I always do – it’ll be awful. Drive a car in Germany on a launch and it’s
Model: Nissan Qashqai 360 Price: £25,143 (as tested) Engine: 1.6-litre, turbocharged diesel Power: 128bhp, 320Nm Max speed: 118mph 0-60mph: 10.7s Emissions: 135g/km Mileage this month: 624 Costs this month: £0 This month’s highlight It’s rather boring to write anything on the Qashqai. It’s just so good. No, really it is. We’re struggling... ��| CarDealerMag.co.uk
expensive machine. I’m saying you already know this because my learned colleagues have already heaped this praise onto you. Only gripes really are the buttonheavy stereo and the visibility over the driver’s shoulder. The lack of a b-pillar has meant that both doors butt quite thickly together. But overall, the B-Max is quite wonderful. James Batchelor (@JRRBatchelor)
the knowledge Model: Ford B-Max Titanium Price: £18,720 (as tested) Engine: 1.0-litre EcoBoost, threecylinder Power: 117bhp, 200Nm Max speed: 117mph 0-60mph: 11.2s
Emissions: 139g/km Mileage this month: 289 Costs this month: £0 This month’s highlight The B-Max is as nice to drive in Gosport as it is in Cologne. Even without free swan.
Fifth report:
Peugeot208
Daljinder Nagra drives our 208 for the first time...
I
the knowledge
wonderful. Drive one in Gosport and it’s terrible. But do you know – the B-Max is better than I remembered it to be, You already know the 1.0-litre engine is a little beaut, the gear change sweet, the steering just ohso precise. You’ll also know that it handles reasonably well despite its height and that even though it’s pillar box red, the B-Max looks a rather
t’s fair to say that I wasn’t exactly looking forward to a prolonged stint in the 208, given the mixed feeling towards it in the Blackball Media office. However, having never driven Peugeot’s latest offering, a weekend of solid testing was needed before I could pass judgement. So, packing the car up before the long schlep from our Gosport office to home in Birmingham, the first thing that struck me about the stubby little supermini was just how roomy it was inside. Aside from a boot that will happily swallow more than enough luggage for a weekend away, there was enough adjustability in both the driver’s seat and steering wheel to easily accommodate my six-foot, eight-inch frame.
Suitably impressed, I awoke the thrummy three-cylinder engine and...immediately stalled. I had been warned that the clutch was about as manageable as a sugar-addled three-year-old, but wasn’t prepared for just how much concentration getting off the line clearly requires. Get it on the open road and the diminutive Peugeot makes a better case for itself, being quiet and
refined at motorway speeds. Only the lack of a sixth gear ratio lets it down, affecting fuel economy quite badly as the engine buzzes away. Overall, I have to come to the conclusion that, like many who’ve driven this car, I remain resolutely nonplussed. Daljinder Nagra (@DJonmotors)
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: 312 Costs this month: £0 This month’s highlight The 208 can easily fit a giant of a man inside. Or, in other words, Daljinder Nagra
longtermers
First report:
New arrival:
James Baggott gets charged up about our new member of the fleet and discovers its distinct advantages
Volvo XC60 SUV makes its arrival
RenaultTWIZY E
lectric cars are cool. Officially cool. How do I know that? A Waitrose checkout girl told me so, that’s how. But before I explain that strange opening paragraph, let me make some formal introductions to our newest long-test fleet member – the Renault Twizy. The full EV can do around 60 miles on a charge, which takes about four hours and costs less than £1. It’ll do 50mph, doors are optional extras and it looks like a turbo-charged mobility scooter. But, as I said, it’s cool. I’ve been driving the bonkers Renault for a month now, too and from the office, which is about two miles away, and I absolutely love it. There is no other car available anywhere in the world that attracts so much attention yet costs so little money. Starting at £7k, and with a monthly rental charge for the batteries (which facilitates replacement if they go wrong) that starts from £45 a month, it’s an absolute magnet for attention. Take that aforementioned Waitrose trip. You can park right outside our local store, directly in front of the check-outs. In I popped to grab some milk and while I’m waiting to pay an excited shelf-filler rushes over. ‘You’ll not believe this,’ she blurts out to her colleagues. ‘There’s an ELECTRIC car outside! Look!’ pointing at my car. Not one to turn down a moment to bask in the
the knowledge Model: Renault Twizy Colour Price: £7,690 (as tested) Engine: Electric motor Power: 17bhp, 57Nm Max speed: 50mph MPG: (comb’d): n/a 0-60mph: n/a
windows for us a week after the car arrived. These are made from plastic with metal edges that slot into two brackets on the doors – it’s a bit like limelight I admitted it was mine. putting up a tent. To be honest I prefer ‘Wow, that’s so cool,’ said one, the Twizy without them. before her colleagues asked what On the road it’s great fun. It’s it was like to drive, how it was comfortably quick enough to keep up charged, how much it cost and with town traffic, it handles well and where they could buy one. I’m not sure they would have got although the suspension crashes a little it’s bearable. Our car has a retro as excited about a Leaf or Zoe. So, what’s it like to live with? Well, Bluetooth kit fitted with two speakers in the roof, but to be honest I’ve never surprisingly easy. I can commute been in the car long enough to worry for 10 days before I need to run a about using it. I’d rather it had a stereo cable out of our office window and charge it up. The plug is in the front so I could listen to Chris Evans on the and only reaches about three metres way to work. I also love the fact you can get out of so it is a bit of a faff to recharge. It either side and the scissor style doors involves security guard bothering look seriously smart when you throw extension cables and a dry day. But them open. The fact you can get out in a month I’ve only had to do it either side has meant I can park within three times. inches of my colleagues’ driver’s side Renault sent a man to fit some doors, so they have to climb in the passenger side. I don’t think that joke will ever grow old – for me at least. Emissions: 0g/km I’ve got six months to look forward Mileage this month: 89 to in the Twizy now and I’m seriously Costs this month: £0 considering buying one at the end. So This month’s highlight we’ll think of this as a six-month test It attracts the attentions of drive which my wife hopes won’t end Saturday checkout girls with me signing on the dotted line. in Waitrose.
Windows are fiddly... As Jon Reay discovered
Volvo XC60
SAY hello to the rugged, yet sophisticated, Volvo XC60 in subtle Seashell Metallic. The four-wheel-drive terrain tackler boasts the gutsy 2.4-litre diesel engine, and is mated to a slick yet expensive optional sixspeed Geartronic auto ’box. Because this is an SE Lux Nav, we are treated to some of the highest specification Volvo offers, so that means Bluetooth connectivity, sat-nav, cruise control, parking sensors and sumptuous leather seats. The addition of dark tinted rear glass and heated front seats adds a further £625 to the overall price tag but they’re welcome extras. First impressions in the office are generally favourable, with most commenting on how good it looks both outside and in, as well as the surprising amount of pull from the relatively small diesel engine. There have been a few mild grumbles surrounding the firm and occasionally skittish ride but AJ62 YRV is yet to cover enough miles for us to pass real judgement. [CD]
the knowledge Model: Volvo XC60 SE Lux Nav Price: £40,250 (as tested) Engine: 2.4-litre, five-cylinder turbocharged diesel Power: 214bhp, 440Nm Max speed: 127mph 0-60mph: 7.8s Emissions: 179g/km Mileage this month: 812 Costs this month: £0 This month’s highlight Seashell Metallic sounds lovely but there’s no getting away from it being gold. Colour suits the car, though. CarDealerMag.co.uk | 85
workshops.
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More than 10m tyres could be unsafe on roads One in three motorists admit their tyres could be out of date
N
ew research has revealed that more than 10 million tyres on UK roads could be dangerous, not because of poor tread, but because of their age. Worryingly, the study for Kwik Fit found that only 17 per cent of drivers know how to identify when their car’s tyres were manufactured, and thus how old they are. The research showed that well over half (59 per cent) of UK drivers are unaware that their tyres display the information needed to work out their age, and that 24 per cent are aware, but unable to interpret the numbers. This means that 83 per cent of drivers don’t know how to assess the age of their tyres.
However, although they may not know how to tell the exact age of their tyres, over six million drivers thought that their car had a tyre which was over five years old. Roger Griggs, communications director at Kwik Fit, said: ‘Infrequent use or poor storage can accelerate the ageing process and make tyres unroadworthy. Low mileage, older cars tend to be most at risk from premature ageing − as their owners assume there is no problem if they can still see plenty of tread.’
On a regional basis, motorists in the capital appear to be the most likely to be travelling on the oldest rubber, with 41% of Londoners revealing their tyres could be more than five years old. This is almost twice as many as those in the north east, where only 22 per cent could potentially be too old.
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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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08450 212123 perfectplacement.co.uk
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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.
Better Better Better Better Better Better Better
TNS is part of the Kantar Group, one of the world’s leading market research and consulting companies. Our research and consulting expertise, deployed on domestic and international projects, is based on a comprehensive set of innovative research and consulting tools, which have driven our vigorous expansion into the various economic sectors, including automotive. TNS is about to conduct an innovative market research study countrywide and is looking for a Networking/Industry insider With good contacts in car dealership networks to work as a freelance. By joining us you will gain an insight into current developments in car dealership networks and acquire exclusive information about the market. Ideally, you should have the following profile: • Extensive car dealership experience, e.g. as a former manager / sales manager, (business) customer, consultant or business partner of a car dealership • Have good contacts in car dealerships, i.e. general managers / sales managers • Have an engaging, persuasive, friendly and confident manner, and a sociable, open personality • Be prepared to travel • Ideally, have at least 50% time availability If you are interested in helping us to construct this study, please contact TNS at tns.dealer.info@tnsglobal.com
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data fiLe.
Making sure the wedge hits dealers’ bank accounts more quickly W
edge, wonger, dollar, cash, monies, cha ching, bucks, sheets, notes, coins, sterling, pony, score, monkey, shrapnel, wad, oncer and copper. I could probably sit here for the majority of the day trying to think of various terms that I have either used myself or heard being used over the years to describe one of the most essential things in people’s lives: money. In recent years the need for cash has heightened significantly in industries such as our own. There are many reasons for this: a business’s ability to obtain borrowings has decreased, the month to month fixed running costs have continued to increase, advertising costs have been relentless in their upwards path and, to add insult to injury, footfall has sometimes become far less frequent, fuelled by a longer buying arc on the customer’s part and an increased period of cautious buyer behaviour. First Response Finance has been paying a lot of attention to our pay-out teams over recent years, as we appreciate that once a customer has signed the finance documentation and you have sent them off along with the relevant proofs for pay-out, the sooner you have the funds in your bank account the quicker you can move on to purchasing the next vehicle for your forecourt. And from visiting car dealerships around the UK, as both I and my colleagues have been, the feedback has been exceptional. The pleasing comments we obtain are regarding the speed of our turnaround times from receiving documents to the car dealership receiving an ‘ok for
Jonathan
Such TIME IS MONEY
pay-out’ email, how easy we have made the documents which we require back from a dealer, and our communication throughout the whole process, so that a dealer knows what is required to move a deal to ‘paid out’ status. And now we are making another technological change to ensure that once we pay out a deal and send the funds to a car dealer’s bank account, the ‘cash’ will be in the recipient’s bank account in just a few hours. The Faster Payment service was first introduced into the UK’s payment infrastructure around five years ago. Since then a few car finance lenders have introduced the technology in order better to serve their customers
‘The Faster Payment service means you worry less about moolah...’ and ensure the funds hit the designated bank account faster. First Response Finance has been testing this payment method in another area of our business, and now we are happy it is working effectively we are pleased to release it to every one of our dealer relationships. We are convinced that combining the efficiency gains that we have proudly made within our pay-out department with the implementation of the Faster Payment service we are as good as most within our industry, thus enabling you to worry less about dough, moolah, wedge… you understand where I am going.
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
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