Car Dealer Magazine: Issue 92 by Blackball Media

PRE REG: NOW EVEN CAR MANUFACTURER CHIEFS THINK IT’S A PROBLEM

Business Publication of the Year

Issue 92 | November 2015 | CarDealerMag.co.uk | £3.50

L IA C E P S L E D O M W E N ST SHOWROOM ARRIVALS TE LA EIR TH T OU AB LK TA ES SS BO UK

THE BIGGEST SCANDAL RY IN AUTOMOETTOIVVWECHHAOISS TFOO R DEALERS?

IS THERE A BRIGHT SID

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OVER 80,000 VEHICLES Your key to success this plate change manheim.co.uk/platechange Figure based on sales between the period of 1st Sept to 30th Nov in 2012 â&#x20AC;&#x201C; 2014

02plus | CarDealerMag.co.uk 2015 stock forecast in the same period. Figures exclude private sales.

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IGNITION.

EDITORIAL PRODUCTION EDITOR Dave Brown

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HEAD OF DESIGN Graeme Windell

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STAFF WRITER Sophie Williamson-Stothert

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EDITORIAL ASSISTANT Laura Thomson

laura@blackballmedia.co.uk Twitter: @lauramayrafiki

EDITORIAL ASSISTANT Jack Evans

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ADVERTISING ADVERTISING EXECUTIVE Cliff Culver

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SUITS MANAGING DIRECTOR James Baggott

james@blackballmedia.co.uk Twitter: @CarDealerEd

OPERATIONS DIRECTOR Andy Entwistle

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Contributors Tim Naylor, Nick King, Jo Symes, Mike Jones, Nigel Swan, Phil Riley, Jon Reay, Oliver Harry, Jon Fleetwood, John Bowman, Ben Garside, Big Mike.

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was more than a WELCOME. There hint of irony to the huge loop-the-loop stunt Jaguar pulled off in Frankfurt the night before the doors opened to the biggest motor show in Europe. Not only was the British manufacturer stealing the attention from its premium German rivals right in their own back yard, but the man pulling the strings at the top of the JLR tree was CEO Dr Ralf Speth, a German himself. Huge stunts from the bullish Brit builders are something we’ve got used to. I’ve witnessed my fair share of them live and they’re always brilliantly over the top and steal the headlines just as they’re supposed to. In fact, the Jaguar Land Rover PR machine is so adept at staging these coups that it probably has an internal leaderboard on the number of tweets each notches up. I’d love to be in on the planning meetings for these bonkers ideas. Surely it’s only a matter of time before they launch a car on the moon. Perhaps that’s what the whole Virgin Galactic tie-up was all about… Anyway, back in Frankfurt and minutes after Terry Grant has loop-the-looped in the brand’s new crossover F-Pace the internet is set alight with pictures. Neatly, he’s done it around the 0 of a giant 80, representing 80 years of the marque. They think of everything, don’t they? But to be honest they could have revealed the F-Pace in a pub in Croydon, opened a tube of Pringles and served warm Fosters and it would still have stolen the headlines. It’s a landmark car for the manufacturer. I for one can see why the dealers are desperate to get their hands on it, and despite boss Jeremy Hicks’ reserved estimate on sales I truly think they’re not going to be able to build them quickly enough. Take a closer look at it on p62.

that of the rest of the industry, too. The mainstream press is even dragging unrealistic ‘official’ economy figures into the melting pot and things are getting muddier as each day passes and ever-more-damaging headlines are printed. We’ve taken a closer look at the scandal on p27 and have summed up the unprecedented developments that have unfolded in the past few weeks. It’s been a story that is moving on by the day, but I hope that our detailed look gives you an insight into what’s happened and how it may be resolved. Meanwhile, pre-registrations are rearing their ugly head again. But this time it’s not just us who are banging the drum – now even those at the very top of the industry are starting to get concerned about their proliferation. Before the emissions scandal broke, I caught up with Paul Willis, the head of the VW Group in the UK, at the Frankfurt motor show and he was surprisingly outspoken about the whole situation. You can read his explosive interview and our comments on p10. And before I let you get on and read that lot, make sure you take two minutes to nominate in our Used Car Awards at carawards.co.uk. The closing date is October 22 and you don’t want to miss out on what is an absolute hoot of a night at The Brewery on November 30. You don’t have to be on the nominations list to book a table, though, so if you want to enjoy a Christmas party with a difference get in touch and book a table. I can guarantee you won’t regret it. Details are on p16. I hope you enjoy the issue.

The spotlight is firmly on the motoring industry right now and more than ever it needs to be whiter than white. The VW emissions scandal has already done great damage to not only its reputation and the brands in its group, but

James Baggott, Managing Director

WINNER

CAR DEALER MAGAZINE Best Business Publication CarDealerMag.co.uk | 03

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INSIDE. ISSUE 92 I NOVEMBER 2015

Dashboard

06 Pre-reg: The elephant in the room 10 New rights for consumers 22 Analysis: VW emissions scandal 27 Ask HPI 33 Around the World 38 Big Mike 41 Trading Up 43 Finance 44 Feedback

Keeping it simple We go on a French road trip in a facelifted BMW 3 Series to chat to dealers and find out about the tastes of their customers.

Forecourt

Our analysis of the biggest scandal in automotive history.

Why you shouldn’t be fooled by the styling of the new Audi A4.

‘‘

Range Rover Evoque Peugeot 308 GTi New model special: The cars on their way to your showrooms.

More than ever before, honest, clear and timely communications with customers are key James Baggott

Audi A4

Features BMW’S French connection New model special

114 Data File Car Dealer Club The Statistics Taking Stock Auctions Market Insight Recruitment

Suppliers’ Guide with Litton Key Notes with Traka Long-termers The crucial role Mariah Carey plays in the development of every Nissan crossover...

James Baggott

48 50 52

54 60

96 98 100 103 104 105 108 110 112 114

OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique. For full coverage of this year’s event, call 023 9252 2434 to get hold of a copy of the results issue.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. To find out how to get involved this year, turn to page 16.

Next year’s CDX will be held at Silverstone on Tuesday, May 24. If you want to get involved, call us on 023 9252 2434 to register your interest. CarDealerMag.co.uk | 05

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How do you handle such HAD A right tricky customer in today. He came bowling onto my forecourt like he owned the place and arrogantly asked me to ‘grab the keys’ to a car he wanted to look at. I bit my tongue at first, then gave him the keys and let him have a look round the car. I left him alone for a few minutes while I was chatting to another couple who had popped in. When I went back over to the car this bloke was looking at, he was crawling around under the dashboard in the car pulling at bits of trim. I asked what he was doing and he said ‘looking for the OBD port’. He had a small OBD code reader in his hands. Now I don’t know about anyone else here but I found this a bit of a liberty as he should be asking for permission before plugging anything into the car. I told him quite clearly that I don’t allow people to do this. He was very taken aback by this and said either I let him check with the code reader or he is going. I had had enough of his attitude by now and told him to go... Just wondered what others would do here. Max Branning

Picture of the month Take one yellow Fiat Cinquecento, add acres of yellow felt, dozens of strands of fluffy yellow feathers... and you’re well on your way to creating the perfect car for this year’s Bangers4BEN charity rally. By the time you read this, the event will be over – but hopefully you’ll have been keeping up-to-date with developments via the Car Dealer website! In the picture on the right, snapper Jonny Fleetwood, who tackled the trip on behalf of the magazine with reporter Laura Thomson and ops director Andy Entwistle, prepares the car for its cross-continental adventures. I wouldn’t let them. They can cause problems if not used correctly or disconnected properly or so I am led to believe. That’s how some keys are cloned as well. I’d happily let my mechanic plug [the OBD code reader] in and show the customer our own diagnostics reading if pre-arranged. Some folk are just plain strange. I personally hate customers that try to take control. RS Car Sales

I would have done the same! You have managed to get a lucky escape from a problem customer! jimreidvehicle No way I would let a potential customer do this. If the car was not displaying the engine warning light in the first place, then there is very little the OBD scanner would show up anyway. ivanhamillcars

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a tricky customer? So how is October treating everyone out there? Week one into October, how are things looking? Not a bad start here but seem to have been hit with loads of really bad PX cars. I try to retail everything wherever possible but have five cars that are just beyond that so they will be going through a local cheapie auction tonight. RS Car Sales

You know when you get a part-ex and you look at it, look at the customer and their angelic little two-year-old, look back at the car and think: ‘You drove that here? From 150 miles away? On a motorway?’ One week later they complain the aircon on their new purchase needs re-gassing. RS Car Sales

Likewise. Think it’s the time of year when people realise that their old falling-to-bits snotter probably won’t see them through another winter, so they’re getting out of them now, while they can. Bright side: more deals done. Not so bright side: loads more deathtraps for the illegal roadside traders to screw people over with. GreenGiant

Good end to last month, good start to this month. It’s not until I saw this post that I realised that I’ve done above-average finance deals and taken more sheds in the past three weeks than I have the rest of the year. I think there’s something in the theory that people are realising that their car won’t see them through winter. James Bush

Top Bangers4BEN tweets Traffic nightmare #b4b15 @CaptainCaralot causing all the problems! #everyonestakingapic! Geoff Cox @GeoffCoxDerby Welcome to Brussels #B4B15 No sign of Speedy Gonzales aka @CarDealerAndy. Shot off like a rocket... Got @LawgisticsSales glued to our bum! Alexis @PrestigeDiesels Beatles going down a treat with the German population on the ferry, 10th group photo in the space of 5mins #B4B15 Spidersnet @spidersnetUK Can’t work out what is brighter. The sun or the @CarDealerMag car #b4b15 Andy Entwistle @CarDealerAndy

Full #B4B15 coverage in the next issue

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DASHBOARD.

New AA Garage Guide puts the emphasis on quality. bit.ly/guide92

DEVELOPMENT

Kent Mercedes outlet planned MERCEDES-BENZ has submitted plans to build a new car dealership on a former hospital site in Dartford, Kent. The German manufacturer wants to construct a new showroom and workshop on the 260-acre Bridge industrial site in Dartford, which will include an MoT facility, according to a submission made to council planners in co-operation with Prologis UK. The brownfield land was previously used by the Joyce Green Hospital and Littlebrook Lakes.

APPOINTMENT

New director of dealer insight MOTORS.CO.UK has further strengthened its senior management team with the appointment of Peter Watts as director of dealer insight. He brings to the role more than 30 years’ dealership experience, most recently as brand director for franchise and supermarkets at Autotrader. co.uk and previously as group operations director at Randles Motor Group.

ALPHERA

More finance for luxury cars THE number of finance contracts arranged for buyers of luxury premium vehicles is continuing to soar, new figures show. A year-to-date increase of 50 deals has been reported by an independent finance and insurance company that acts as a captive funder for Aston Martin and Rolls-Royce. Nick May, head of premium captives at Alphera Financial Services, said growing economic confidence was partly behind the rise.

The new dealership gives Renault and Dacia stronger representation and better visibility across the East Midlands

Bristol Street Motors opens its sixth Renault dealership Opening follows success of company’s five other Renault and Dacia sites

ristol Street Motors has opened its second new Renault Group dealership in six months, this time in Mansfield. The Mansfield site is Bristol Street’s sixth Renault Group dealership, strengthening the long-standing relationship between Renault and Bristol Street’s parent company, Vertu Motors plc. Bristol Street’s new showroom is located on Southwell Road West, and is intended to consolidate its position as the number one Renault and Dacia retailer in the East Midlands. The Mansfield dealership is the latest in a long line of sites opened in the past 12 months. Their other

by OLIVER HARRY @oliverharry27 Renault outlets can be found in Bradford, Derby, Exeter, Gloucester and, since March, Nottingham. Robert Forrester, CEO of Vertu Motors, said: ‘We are delighted to further strengthen our long and successful relationship with Renault Group UK with the opening of this new dealership in Mansfield. ‘We are also very pleased to secure our position as the number one Renault and Dacia retailer in the East Midlands and we see a very bright future ahead. ‘Now we look forward to delivering the very best experience of Renault

and Dacia models alongside Bristol Street Motors’ commitment to excellent customer service to customers in and around Mansfield.’ Darren Payne, sales director of Renault Group UK, said: ‘The opening of this latest dealership is the direct result of the great success Bristol Street Motors has enjoyed at its five other Renault and Dacia sites. ‘The new dealership gives both brands stronger representation and better visibility across the East Midlands. ‘We’re also delighted that such an important and well-respected dealer group so clearly shares our confidence in the future of both Renault and Dacia in the UK in the years to come.’

Independent garage celebrates sale of 20,000th car FAMILY-RUN independent garage H Edmondson’s is celebrating the sale of its 20,000th car. The firm has been repairing and selling used cars at its garage in Guide Road, Hesketh Bank, near Southport, Lancashire, for more than 34 years, having been founded by Harry and Gill Edmondson in 1981. After moving to their current premises in 1982, the couple started

selling used cars alongside their repair and servicing operation. The company quickly expanded and they found themselves selling hundreds of vehicles per year. The 20,000th car was sold to Stephanie and James Pope, a family local to Hesketh Bank. Stephanie is no stranger to the garage, with both her parents and grandparents having bought cars and having had

them serviced by the firm since the company began trading. The Popes were local customers, but H Edmondson’s cars are sold nationwide thanks to internet advertising, with ex-garage cars being spotted as far afield as the Falkland Islands, according to local newspaper the Southport Visiter. H Edmondson’s pride themselves in being a family firm. CarDealerMag.co.uk | 09

DASHBOARD.

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I’m not happy about the car market at the moment. It’s misleading and there are messages going to government and to the wider population that everything is really great – but I’m not so sure it is.

10 | CarDealerMag.co.uk

The elephant in the room Finally, one of the leading members of the UK automotive industry has spoken of their concern at the proliferation of pre-registrations. But as one industry expert tells us they’re accounting for 15 per cent of the market, the SMMT still refuses to comment. James Baggott reports…

he spotlight is firmly on the automotive industry. With the VW Group’s emissions scandal still rumbling on and likely to spread further still, dark storm clouds are forming by the minute as politicians and press look for their next target in the motoring world. So, could the next scandal be the misrepresentation of the buoyancy of the UK car market and the hidden issue of pre-registrations? Car Dealer has long argued that the reporting by the SMMT of ‘registrations’, which the public misinterpret as ‘sales’, is presenting decision-makers with a false picture as to the health of the car industry. Politicians think dealers are having it away, with sales seemingly rising every month for the past three and a half years. We know that’s inaccurate, you know it’s wrong, and the car manufacturers know it’s misleading too. So why isn’t anyone coming clean? Well, it appears now that the tide might be beginning to turn. In an industry first, Car Dealer has secured an exclusive interview with the managing director of the VW Group in the UK, Paul Willis. Chatting to us in the back of a Phaeton on the VW stand at Frankfurt – a few days before the emissions scandal news broke – Willis lashed out at the misreporting of sales figures. ‘I’m not happy about the car market at the moment,’ he said. ‘It’s misleading and there are messages going to government and to the wider population that everything is really great – but I’m not so sure it is.’ Willis, pictured, told us he’d recently met a politician who thought that everything was rosy in the car industry. Willis explained that the MP didn’t CarDealerMag.co.uk | 11

DASHBOARD. |

Falsehood, secrecy, denial understand the difference between registrations and sales, and that he was worried the picture the industry was presenting to people in power was leading to trouble. ‘I think it’s misleading and I’m concerned about the impact it’s having on the dealers,’ he said. ‘We’re sending a message to government that everything’s fine and dandy. But it’s not. If you talk to the dealers they will be telling you that their profits have halved and that manufacturers are pushing them very, very hard. ‘I have to salute the dealers because they are supporting the manufacturers in this, but it is the scale of it that is causing me concern.’ Willis’s comments are unusual in that he is the most senior chief to go on the record to say he believes the market is being forced – although he was mindful not to use the ‘pre-registration’ term. He added: ‘When you look at the detail, a lot of our competitors pile in on the last two days of the month. Our competitors go to dealers and say “Will you take 2,000 cars and we’ll give you 40, 50 per cent discount?” Well, that’s all fine and dandy, but I think it’s misleading. The media needs to be talking about this.’ Car Dealer also spoke to the boss of one of the largest dealer groups in the UK, who would only chat to us off the record. He admitted that he was constantly being pushed by manufacturers to preregister cars in order to hit targets, but said it was ‘a business decision’ his firm has to take. Car Dealer has even heard from one dealer group whose board recently decided to take a loss of £1,800 on every unit in order to hit its bonus target from its manufacturer. Is that really sustainable? ‘There is a lot of noise about pre-registrations,’ said our secretive CEO. ‘But it’s nothing new. It’s been around for years and will be for years to come. The problem comes when dealers can’t

afford to take the bulk deal on the cars because they haven’t got the balance sheet to support it. That’s why you’re seeing a lot of consolidation in the dealer world now with the big boys snapping up the smaller guys.’ The dealer boss explained that it is world economic pressures that are to blame. The Russian market is down, China has been hit hard, while even emerging markets such as Brazil are in trouble – this means that oversupply has to go somewhere, and those cars are being forced into the UK. It’s cheaper for manufacturers to force cars that are already built into a market where the economy is strong rather than shut factories down and default on huge supply chain orders. And that’s exactly what we’ve been seeing in the UK over the past few years. The problem, though, is that the wider public and the policy-makers in power don’t understand this… ‘The scandal of this is that governments, companies and individuals are making serious decisions based on car sales and all of us in the trade know that we are all complicit in harbouring a lie,’ said Harry Bott of Mediahawk. Bott’s company has been closely tracking pre-registrations for years and has analysed the growth in sub-one-year-old cars appearing on Auto Trader. This gives a very clear indication of which makers are pre-registering cars, because the dealers who are registering them have to get them sold somewhere.

ott said: ‘It must be time that we all come clean on the monthly sales figures because of the stress it is causing within the retail sector, while leading the government to believe that all is rosy in the world of cars and, by iteration, the

“

economy! As a result of the lie, there is a billionpound black hole building up and we are all complicit in its creation. ‘When it becomes formally recognised that the monthly car sales data has become a joke we will all no doubt stroke our hipster beards and say it was obvious. Surely as an industry we should be more honest than this and find a better and honest system of reporting? Too many jobs, too much investment and too many political decisions are being made on a false premise.’ Car Dealer contacted the SMMT for comment and it issued a banal statement that did little more than restate what we already know. The organisation has been particularly quiet on the subject since we spoke to chief executive Mike Hawes in Issue 72 (March 2014). Back then, Hawes merely stuck to the message that the ‘SMMT reports registrations, and only registrations, because that’s the way it has always been done’. And every month since he has talked up the ‘health’ of the new car market when the SMMT presents its monthly figures to the media. The latest statement we were sent said: ‘Vehicle manufacturers are subject to the conditions of the Supply of New Cars Order (2000), which provides a clear definition of a pre-registered car and requires vehicle manufacturers to report monthly on cars they have registered that meet these criteria. SMMT publishes this data on its website each month and in most months this is a relatively low number of vehicles.’ While this is true, it’s easily circumvented by persuading dealers to do the pre-registering instead and offering large incentives for hitting bulk targets – and this is exactly what’s happening now. The very fact that the SMMT refuses to admit it, let alone comment on it, is further proof that the industry is categorically presenting a false

When it becomes formally recognised that the monthly car sales data has become a joke we will all no doubt stroke our hipster beards and say it was obvious. 12 | CarDealerMag.co.uk

picture to the wider world. ‘Growing sales volumes is an element of any competitive marketplace,’ added the SMMT statement. ‘There are many competitive deals for UK consumers right now and the UK’s large and independent dealer groups and vehicle manufacturers have to make their own commercial decisions when it comes to the profitability of these arrangements.’ That’s about as close as we’re going to get to the SMMT commenting on pre-registrations. It’s worth remembering this is the Society of Motor Manufacturers and Traders, so as such has a duty to represent all aspects of the industry. On its website, the SMMT states that it ‘exists to support and promote the interests of the UK automotive industry at home and abroad’. Many would argue that burying its head in the sand and promoting figures that hide the real truth isn’t supporting the interests of the UK automotive industry at all.

ar Dealer spoke to experts from the trade valuation guides. If anyone would hear the real truth about the impact of preregistrations on dealers it would be them. Philip Nothard, the editor of CAP Black Book, said: ‘Our dealer survey points to self-registration activity accounting for 15 per cent of new 65-plate cars registered in

September.’ Let’s repeat that for a moment: 15 per cent. ‘Every indicator is pointing towards September being a month for the record books, pushing the full-year market towards its highest level in over a decade. ‘But pre-registration is playing a role in the bumper sales figures, supported by some amazing finance deals. ‘Longer term, if this trend increases, there could be additional pressure on used values as the volume of cars increase and used car demand declines,’ said Nothard. We’re back to that billion-pound black hole that Bott was speaking about. Over to him: ‘Finance may be driving new sales, but they are also being supported by pre-registration. As a group, the manufacturers are in serious denial about this problem. They all admit it is a problem but deny they are involved – as a group they all need to go to Pre-Reg Anonymous! ‘We are entering a period where a number of “lies” will collide and cause the billion-pound black hole. These lies are the false new car sales bolstered by pre-registrations needing a home. ‘Overlay the return of more and more twoto-five-year-old vehicles from finance deals and residuals can only be kept where they are if there is “real” demand. If anything dents this demand and residuals reduce by as little as £500 per unit across 2.4m vehicles (the new car market) then we are staring at a collective loss to the industry balance sheet of over £1bn!’ But what can be done about it? Or in fact does anything NEED to be done about it? Well, not really. Everyone understands these are commercial decisions taken by individual businesses. It’s not the fact they’re happening that’s really the problem. What is, is the falsehood, the secrecy and the denial. At a moment when the looking glass is firmly focused on the car industry, now more than ever is a time for transparency, and pre-registrations are unfortunately about as cloudy as it gets… [CD]

CarDealerMag.co.uk | 13

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Dealership landed with huge bill after 148 keys stolen in raid £60,000 haul leads to offer of a substantial reward for information

urglars have broken into a used car dealership and stolen all 148 of its keys – landing it with a £60,000plus bill to change the vehicles’ locks in case the thieves came back to drive off with the vehicles. Cobra Car Sales, in Atherton, Greater Manchester, has put up a £5,000 reward for information leading to the conviction of the culprits, plus another £1,000 for the keys’ recovery. The dealership, which sells brands including Ford and Renault, only opened last November and has now forked out on new security and getting new keys cut. It is believed the criminals got in by breaking a window in the back office. They also made off with a £3,000 diagnostic machine as well as a CCTV system. Keytracker Ltd, which is the UK’s

largest provider of mechanical and electronic key management systems, told Car Dealer: ‘We are dreadfully sorry to hear the news about Cobra Car Sales. Unfortunately, they are not one of our customers. ‘Key management and security is paramount within the automotive industry and we have worked with numerous automotive outlets to

ensure the safety, security and organisation of their vehicle keys. While attempts have been made in the past to break into our secure cabinets, we are unaware of any instances of keys being removed from the premises. ‘We have tried to contact Cobra Car Sales to offer advice to ensure that they are never in this situation again.’

EXPANSION

More growth for Stoneacre AUTOWORLD has been bought by Stoneacre for an undisclosed sum. Stoneacre already operates 32 locations with a turnover in excess of £440m. The acquisition of Autoworld will increase this by an additional £85m as part of its strategy to expand the group to a £1bn turnover target. Chesterfield-based Autoworld, which has franchises for Citroen, Alfa Romeo, Hyundai, Fiat, Seat, Suzuki, Volvo, Triumph and Harley-Davidson, employs some 230 people and made a pre-tax profit of £1.4m on a £78m turnover up to the end of last year. The purchase came about when Stoneacre bought Huntson Holdings plc, which trades as Autoworld.

Secure Key and Asset Management www.keytracker.co.uk

Established in 1996 and based in the West Midlands, Keytracker Ltd offer the largest range of key and asset management solutions for the automotive industry, designed to ensure that your vehicle keys are secure at all times. With nearly 20 years of experience in key security, we have had zero reports of successful break-ins and we can say with confidence that you can count on us to keep your keys and assets safer than ever before.

0121 559 9000 sales@keytracker.co.uk Station Road, Rowley Regis West Midlands B65 0JY

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Act now and you could be an award winner! Haven’t entered this year’s Used Car Awards yet? Hurry! The deadline of October 22 is approaching rapidly . . .

ave you made your nominations yet for our Used Car Awards? It’s the biggest event of its type in the automotive industry and brings in hundreds of entries, with everyone understandably eager to take home one of our coveted trophies, so it’s crucial that you get your nominations in – and soon, because time is running out for entries. In fact, there are only a few days left before the deadline of October 22. If you think you do things better than the rest, then isn’t it time that you got some recognition for all your hard work? Our Used Car Awards recognise those dealerships that go above and beyond, and having a Used Car Award winner banner shows your customers that you are without a doubt the best and can be trusted to look after them. This year’s Used Car Awards are being held at The Brewery in London on Monday, November 30 and will be hosted by TV’s Wheeler Dealer himself, Mike Brewer. Make sure you get your nominations in now, which you can do very quickly and easily via the link at the bottom of this page.

by JOHN BOWMAN john@blackballmedia.co.uk The shortlists will be drawn up by our panel of judges, headed by Brewer, so please give as much detail as possible about why you’re making your nomination, to help them decide. This really is THE big night in the used car industry. These awards celebrate and recognise all the different areas of this vital backbone of the motor industry. From the smaller independents to the larger groups, every dealer who has an involvement with the used car business can take part. And if you’d like a place with us on the night regardless of whether or not you’re hoping to win a trophy, use the email address at the bottom of the opposite page to secure your tickets – it’s the perfect excuse for the Christmas party! Last year, tickets sold out quickly and we had to tell some of you that there was no space left. Don’t let that happen to you this year – after all, this black-tie, glitzy event is the dealers’ biggest party of the year! We look forward to seeing you at The Brewery on November 30.

USED CAR AWARDS CATEGORIES n Used Car Dealership of the Year (Under 50 vehicles) n Used Car Dealership of the Year (50-100) n Used Car Dealership of the Year (More than 100) n Used Car Supermarket of the Year n Used Car Dealership Group of the Year n Dealers’ Dealer of the Year n Used Car Sales Team of the Year n Used Car Dealer Principal of the Year n Dealership Newcomer of the Year n Specialist Used Car Retailer of the Year n Best Used Car Customer Care

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n Used Car Product of the Year n Outstanding Achievement of the Year n Lifetime Achievement Award n Dealer Used Car Website of the Year n Manufacturer Used Car Website of the Year n Social Media User of the Year n Service and Repair Outlet of the Year n Manufacturer Used Car Scheme of the Year n Used Car of the Year n Best Performing Used Car of the Year – Residual Value (not open for nominating) n Best Performing Used Car of the Year – Days To Sell (not open for nominating)

RAC: We’re excited ONE of the highlights of this year’s Used Car Awards is the return of the highly exclusive RAC Pre-Event Reception. This invitation-only champagne reception is a very select event for key people in the automotive industry with whom the RAC has or may be having a business relationship – and this year the party is going to be bigger and better than before. It’s going to be a terrific opportunity for people to network, and Adam O’Neill, dealer marketing manager for the RAC, said: ‘There will be more than 100 people there. It was a great success last

To nominate or enter go to carawards.co.uk

A great way to end another busy year Here, Paul McGill, head of motor finance south and head of motor cycle finance, talks about the awards, why Black Horse is keen to be part of them, and why they are so important.

MIKE BREWER EXPLAINS WHY YOU NEED TO BE INVOLVED I KNOW I’ve said it before but there really is only one word to describe the Used Car Awards and that word is ‘epic’. If you’re in the used car industry then you really should be at The Brewery in London on November 30, because Car Dealer Magazine’s Used Car Awards have grown to become the event to be at – and to be seen at. This is without a doubt one of the best nights of the year. There’s plenty of food, plenty of drink, and with a live band too it’s the perfect way to start the Christmas season! These awards are all about giving the great and the good of the used car industry the chance to show the world that they really are the best. But you’ve got to be in it to win it of course, so make sure you get your nominations in by the closing date of October 22.

about our exclusive pre-event reception year, so we’re building on that, highlighting our position within the industry and giving something back to our dealer network as well as promoting it.’ He added: ‘We’re very excited about it. Last year, the pre-event reception was so well received that, quite simply, it was something that we couldn’t not do this year! ‘We put it in our diary a long time ago and have been working hard to make it bigger and better. It’s something we’ve been very much looking forward to since last year.’

The RAC has more than 850 dealerships within its dealer network and it’s running a fantastic prize draw for its dealers to win three pairs of tickets to our Used Car Awards that also include a two-night stay in London on the Sunday and Monday (November 29 and 30) – giving winners and their partners extra time there that will be perfect for some Christmas shopping and perhaps taking in a show. ‘This is a great prize,’ said O’Neill. ‘The draw is really helping to build a sense of community among our dealerships.’

THE 2014 event was the best yet. Attendance was great, with all the significant used car operators represented. One important point about the Car Dealer Awards is the timing. After another year of hard and successful work, the awards are very well timed to round off and celebrate the year. The used car market is extremely important to Black Horse. We work in partnership with most of the attendees and this is our way of saying well done and thank you for the business, the friendships and the genuine sense of working together to make the sector more successful, profitable and sustainable. 2015 has been a year of significant change for the sector and we have worked closely together to make the right changes to our business models in the light of the new consumer credit regulations. Everyone works so hard and it’s important to remember that recognition of effort and success within and across the businesses is one of the important building blocks, crucial to maintaining the sort of high-level performance needed in today’s competitive market. We believe that the process of recognising outstanding performance acts as a way of continually setting the bar higher and, in light of ever-increasing customer expectations, building performance excellence will remain a journey rather than a destination. There are usually examples of great performance in every business. People love to be thanked and their efforts recognised and appreciated. Seeing and hearing examples of outstanding behaviours or performance motivate teams and others within a business, as well as inspiring others to continually raise their performance and results. My recollection of last year’s awards certainly included many examples of the excitement generated at the event, which is a great way to end the year.

To book tickets, email events@blackballmedia.co.uk CarDealerMag.co.uk | 17

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DASHBOARD.

Abarth aims to put its 695 Biposto customers on the right (race) track A ‘pop-up’ garage at circuits around the UK will put potential buyers behind the wheel

barth Cars UK has really stepped up its customer engagement programme by offering potential buyers of the 695 Biposto car a track day on which they can push to the limits a car they can use on the road. Potential buyers can now stroll into an Abarth dealership and get an in-depth look at the 695 Biposto. From there, they are offered the chance to drive the car round one of a series of UK circuits. Far more in-depth than a 20-minute test drive, customers are taken around the circuit by a professional before having a go themselves. The 695 Biposto is Abarth’s own ‘halo’ car, offering 190bhp from a 1.4-litre turbocharged petrol engine. However, the engine upgrades are just one of a series of changes over a standard Abarth. A larger intercooler is up front, along with Brembo brakes with four-piston aluminium calipers. Lightweight 18-inch alloys shod in sticky 215/35 section tyres increase the mechanical grip even further. A full Akrapovic dual exhaust system creates an incredible warble, too. Star of the show is the dog ring gearbox, which is a fully machined work of art.

by JACK EVANS @jackrober

At £8,500 though, it’s a costly option. Not only can potential buyers experience the 695 Biposto on the limit, but other drivers at the track can, too. Walk-ins are welcomed at the Abarth ‘pop-up’ garage, with those interested in the car immediately able to strap in and see for themselves what it’s really like. Offering dealers the ability to send potential buyers on track days enables them to fully showcase what their cars can really do. With a racing heritage at the heart of Abarth, the track is the natural habitat of even the newest models. With interest in Abarth cars growing each and every month, offering buyers the chance

to see a car they could buy on the track strengthens the brand’s image even further. Whilst selling more cars, events such as the pop-up garage mean that the values at the core of the brand aren’t watered down. Being a specialist car, the Biposto wouldn’t be suited to life on a shiny showroom floor anyway. Following on from the success of the Abarth in its many incarnations, the 695 Biposto is a celebration of the brand and showcases what it has to offer. It also allows owners of an Abarth to feel part of the celebration as the Biposto is based on the platform of the standard car. By offering a range of upgrades for its cars, Abarth enables drivers to customise and personalise their own vehicle, and the track day enables potential owners to become part of the journey.

The 695 Biposto is completely at home on the track

GERRY SOUTHERINGTON, HEAD OF BRAND AT ABARTH THE reason we put this programme together was that we needed a test drive solution for the car. I think just turning up at a dealership and having a quick whizz around the block is not going to allow the customer to appreciate the car properly. So the idea we came up with was to let people take their test drive on a track, so they can see the car in context. That’s how

this came about. We put together around 15 dates in the year in which dealers can put forward people they think are right. Even if no-one is booked to come, we still go down to the event because we engage with people who are there. There are two purposes to this programme. The first is to primarily provide a test drive solution for what is a very specialist car. The second is a ‘pop

up’ show for our brand, putting the car in front of like-minded people. It’s doing as much for the brand as well as providing a test drive. It’s a track day car that’s designed for the road. As a brand we are associated with the track, and so for us to be running activities in this type of environment is absolutely in line with what you expect from the brand. We are where we would hope to be in terms of sales. CarDealerMag.co.uk | 19

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DASHBOARD.

Not fair! A car is far more LAURA THOMSON takes a look at the implications of the 2015 Consumer Rights Act, and asks: Is it good or bad news for the motor trade?

he Consumer Rights Act 2015 came into play at the beginning of October, providing consumers with new safeguards – including the right to a full refund on a faulty item up to 30 days after a purchase has been made. It has replaced not just the 1979 Sale of Goods Act but also the 1977 Unfair Contract Terms Act, the 1982 Supply of Goods and Services Act and 1999 Unfair Terms in Consumer Contracts Regulations, among other pieces of legislation. Beforehand, the time period for returns had to be deemed to be ‘reasonable’ – a length of time so unspecific that it caused many problems on both sides of the counter. On the surface, providing such clarity might seem like a good thing, but the new Act has caused a furore among franchised and independent car dealers alike, prompting many to turn to automotive legal experts Lawgistics. Nona Bowkis, who works for Lawgistics as a legal adviser, followed the Act’s progress through the Houses of Commons and Lords, providing upto-date and accurate commentaries. The qualified solicitor said: ‘We have spent the last three months going through finding, not loopholes, but things

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that could benefit our dealers, because the Act is not fit for purpose for car dealers. If you’re selling toasters or teddy bears, that’s fine, but a used car is just a bit more complicated than that.’ The new law states that a customer has the right to reject a product for a full refund, should a fault appear within the first 30 days. It is the customer’s duty, though, to prove that the fault was there before they bought the vehicle. If a fault is found within the first six months, it is assumed to be inherent of the product and the consumer is entitled to one repair. Failing this, they are entitled to a refund or replacement of a similar spec. An official statement from Lawgistics advises dealers not to rush over the repair, because if it fails again, the customer will be entitled to a replacement or their money back. The statement advises the following: ‘As vehicles are such complex pieces of machinery, we are suggesting that you do not close the repair until you are confident that it is complete, particularly with intermittent faults or repairs that may need a few components replacing before the repair is complete. ‘For those jobs that require an extensive test drive, you might have to explain to the consumer that the repair is still open and has not been finished. This should obviously only be done if it is safe for your customer to drive the vehicle.

‘Another way to address this is to sell vehicles with a warranty. If vehicles have a warranty repair, you may be able to argue that they have to have their statutory repair carried out before they can reject the vehicle.’ Bowkis added: ‘This one chance of repair after which the consumer can reject it isn’t very fair for the car industry. If it was a toaster, fair enough, but it’s not, it’s a car, and some of the used cars could have done 100,000 miles-plus. I think it’s a bit harsh because under the Sale of Goods Act, case law had developed where it was accepted that you got three goes at a repair before a customer could reject it, so I think now dealers will be quite restricted.’ If a customer rejects a vehicle within the first 30 days, the dealers are at risk of losing a lot of money, as it is only after the first month period that they can retain a percentage of the original price for the amount of usage, and even then the percentage is not expected to accurately reflect the value that will be lost from the vehicle. However, the new Act is not all bad news. Whereas previously there was no defined law regarding the returns, the new law could bring clarity to the rules and hopefully prevent cases from going to court, said Bowkis. ‘You’re always going to get customers that are going to be difficult and take things to court, but I think the new ADR [alternative dispute

complex than a toaster resolution] regulations that also came in will make a difference. ‘These rules bring into focus mediation and the idea of that is if you’re having an argument with a consumer, or a consumer has made a complaint and you’re back and forth, when you reach your deadlock position you have to now say to the customer in writing, “This is our final position, we can’t help you any more but you can go to mediation.” ‘It’s only dealers that are members of a trade association that are obliged to participate in a mediation, but everybody else regardless has to tell the customer that they have the opportunity to go to mediation, and they have to provide the contact details of one of the approved mediators.’ In order to protect themselves from falling foul of the law, dealers need to re-evaluate a number of their pre-sale processes. They are advised to carry out a brand new MOT on the vehicle before sale as well as fill out a robust pre-sales check sheet that is then verified by the PDI engineer and presented to the customer at handover. Other procedures include going for a test drive with the customer and phoning them a day or two after the sale to make sure that they are happy with the car. As Lawgistics predicted, reactions from dealers around the country have varied, with some larger dealers appearing unfazed by the new

regulations, while others believe that it could seriously affect future profit. A spokesperson for Hendy Kia in Portsmouth agreed with the former, commenting: ‘We are aware that the Act is there and I can imagine that it will hurt the smaller dealers, because we, as a main dealer, are dealing with products with warranty, and most of our cars are under three years old, whereas the smaller dealers are dealing with an average vehicle age and selling process of six years-plus. So I can imagine it will hurt those sort of people, because they haven’t got the backbone or the cash flow to try to support themselves against the Act. ‘We have the full support of the Hendy Group in everything we do, so I do not think we’ve got anything to worry about. We also have skilled and fully-trained technicians in house, so we’ve got the organisation to deal with such things.’ His sentiment was echoed by Gary Godden, who works as a sales manager at Fratton Bridge Garage – a small independent dealership also in Portsmouth. Godden worries that a refund-orreplacement clause could do serious harm to the business. ‘There’s always a risk. A car only has to have one fault and then the consumer can return it, and then this will cause problems if they can’t have another car,’ he said. ‘It’s not good for business and, to be honest,

“

For the consumer to get their money back for just one reason is a bit stupid really the 30-day refund period worries me most. Obviously, if the car breaks we’ll fix it, but for the consumer to get their money back for just one reason is a bit stupid really.’ Bowkis closes with a final piece of advice to dealers: ‘Many dealers are already doing a lot of the necessary things anyway, but they just need to be a little bit more aware and sharpen up their customer care and practices. ‘There are dealers that will sell dodgy car after dodgy car, and if you’re going to do that it’s not good for you or your business. ‘But if a dealer really looks after customer service and will bend over backwards to look after clients, they’re not going to be too troubled by the new law, except the odd customer that is just unreasonable. As legal advisers for the motor trade, we will have to work a little bit harder to defend our clients from the Act.’ [CD] Ask Lawgistics, p96 James Litton, p108

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DASHBOARD.

You+Nissan extended in major overhaul of retail experience Customers across Europe will be ‘at the heart of everything we do’

issan is extending the reach of its successful You+Nissan scheme to create one of the industry’s most comprehensive customer service promises. The initiative sets in stone six core pledges – lifetime Nissan assistances, simple fixed-price servicing with price-match, a free video vehicle health check, free courtesy car with any service operation, test-drive availability and rapid complaint handling. Launched in the UK in 2010, You+Nissan has proved so successful in helping the brand build trust and customer satisfaction, it is now being rolled out across Europe to create the first continent-wide Customer Promise. In the UK, meanwhile, the scheme

has been enhanced with the inclusion of two separate aftersales initiatives previously only available in some locations and sits alongside an additional set of pledges specifically for drivers of Nissan’s electric vehicles. The enhancements to You+Nissan and its implementation across the continent come as Nissan’s new retail concept is rolled out Europe-wide. A total of 450 sites will feature

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the new concept by the end of March 2016, rising to Nissan’s entire European dealer network of 2,500 sites by 2018. Guillaume Cartier, pictured, senior vice-president for sales and marketing, Nissan Europe, said: ‘Nissan is excited to be in the driving seat as we overhaul the offline and online retail experience to put the customer at the heart of everything we do. The internet has revolutionised the way in which people research and buy cars, throwing the market open and forcing manufacturers to reassess the way they interact with their customers. ‘Nissan’s new customer experience initiatives will put design, interactivity, trust and technology back at the centre to revolutionise our retail experience, both in a physical and a digital sense.’

MEANWHILE...

Leaf deal marks sales milestone GLYN Hopkin – one of the UK’s most successful automotive retail groups – has registered its 100,000th Nissan. The company hit the milestone through both retail and fleet sales just 22 years after it began trading with a single Nissan dealership in Romford in 1993. It now has more than 35 dealerships across London and the south-east – including 13 Nissan outlets. The group’s 100,000th Nissan registration was achieved at Glyn Hopkin St Albans in Lyon Way, when Hatfield couple Andrew and Jayne Busby took delivery of a Leaf. The dealer group presented Mr and Mrs Busby with a bouquet, a bottle of champagne and a cheque for £5,000 to celebrate the occasion.

Selling Car dealerships and motor traders across the UK Used Car retail sales business for sale in Shropshire The business comprises of a 7500 sq ft show room, VOSA MOT station and workshop and large outdoor car sales site. Previously used as a main dealer show room and now operating as a used car sales site. The business is located on a busy main road into a market town centre. Selling motor vehicles from low cost entry level through to prestige motors which keeps sales activity very strong and the trading highly profitable. The business is for sale due to the retirement plans of the owners. Active Business Brokers Ltd National 0845 459 1560 London 0203 105 5808 Birmingham 0121 293 1420 Email sales@activebusinesssales.co.uk Website www.activebusinesssales.co.uk

CarDealerMag.co.uk | 25

#CDX16

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cardealermagazine.co.uk/events/cdx16 26 | CarDealerMag.co.uk

DASHBOARD.

Q&A

The biggest scandal in automotive history

VW has been caught cheating in emissions tests in the biggest scandal ever to rock the motoring world. After a month of revelations, here’s what you need to know. James Baggott reports.

VOLKSWAGEN SCANDAL TIMELINE

May 2014:

Peter Mock and John German publish their test results that show higher emissions than claimed for two diesel VWs. The US government is alerted. So it begins…

December:

Following a denial during the summer, VW issues voluntary recall of 500,000 vehicles to address the issue.

May 6, 2015:

US environmental agencies retest the revised vehicles and find the recall has done diddly squat.

Summer:

The agencies refuse to approve certificates of conformity – which are necessary for the US market – for VW’s 2016 diesels until it provides a proper answer. CarDealerMag.co.uk | 27

DASHBOARD.

Q A

What has happened? Unless you’ve been trapped down a well, then you’ll know the whole world has effectively imploded for Volkswagen – and most of the rest of the car industry in the process. In what is easily the biggest scandal ever to hit the automotive world, VW has been caught cheating emissions tests by fitting software that ‘knew’ when the car was being tested and restricted emissions.

Q A

Woah, that’s naughty. How did it get found out? Over in the States, Americans have been slow to take up diesels. VW was trying to convince them that diesels were as clean as petrol engines, so these tests were vital. That all sort of backfired. The US regulators found that, on the road, VW diesel cars were emitting 40 times the amount of legally-allowed levels of nitrogen oxides.

Q A

How on earth did a scandal of this magnitude go unnoticed for so long? That’s a toughie. But ironically it was prodiesel transport campaigners Peter Mock and John German – now VW chiefs’ Most Hated Men In the World Today – who set the wheels in motion, as it were, for VW’s undoing. They took a Volkswagen diesel on a 1,300-mile trip from San Diego to Seattle to prove how clean diesels were, but when they returned their results made no sense. Despite sailing through lab tests the VWs were emitting dangerous levels of toxins.

Q A

So they stumbled across the biggest scandal in automotive history then? Yep. Hardly Sherlock Holmes and Dr Watson we admit, but the rest of the world has these two to thank for uncovering one of the biggest frauds ever. They tipped off the American authorities, who began investigating last May – and then VW finally owned up.

Q A

That’s terrible. Surely this means someone will be losing their job? Heads have already rolled. The biggest was Martin Winterkorn, boss of VW, who at first looked like he might hold on to his job but then fell on his sword. Numerous other executives have since been fired. The Audi, Porsche and VW US chiefs have all been jettisoned, too. But it’s likely there’ll be many, many more casualties in the weeks and months ahead.

The US Department of Justice and the FBI could bring criminal cases, while German prosecutors are looking to open a criminal case against Winterkorn himself. For now, VW is facing many, many billions in fines. In the US the Clean Air Act allows fines of $37,500 per car – which adds up to a whopping total of around £12bn. The Germans have so far set aside £4.7bn to deal with the penalties it faces, which looks like it will be a mere drop in the ocean.

So did Winterkorn know about what was going on?

What’s this talk of criminal proceedings?

Apparently not. He denies all knowledge of the cheating. Remember, these car companies are big machines with many moving parts, but a fraud of this level is unlikely to have been unknown by those in power. Handing in his notice, Winterkorn said: ‘I am doing this in the interests of the company, even though I am not aware of any wrongdoing on my part.’

Q A

So just how far does this cancer spread? Far and wide. VW says that 11m vehicles were fitted with the cheating software and they include Audi, Seat and Skoda models, too.

VOLKSWAGEN SCANDAL TIMELINE

September 3:

VW privately admits in a meeting that it has installed a ‘defeat device’ into these vehicles. Oops…

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September 18: The campaigners go public, revealing the scandal. World goes up in arms.

September 20:

CEO Martin Winterkorn publicly apologises for breaking the trust of people.

September 22:

VW declares the affected engine is the EA 189, fitted in 11m vehicles worldwide. Reveals it has set £4.7bn aside to cover anticipated penalties and fines.

IN DETAIL: THE VALUES VIEW THIS debacle really should not cost the consumer any money as it is understood that Volkswagen will address all costs to return the vehicle to be what it was purported to be at the time of sale. The only area that may be seen to cost the customer money is if residual values in the UK do not recover from the early marginal drop seen in September. Glass’s were careful not to comment on values until a clear picture of the position was apparent in order to avoid any form of influence on the market whether that would have been positive or negative. However, data is fact and Volkswagen values dipped in comparison with the rest of the market even considering the time of year, but at this point it is unclear whether this will be a blip or continue to be reality. It really is the consumer that will decide. If happy they will continue to buy Volkswagen Group product and the trade will therefore return to paying strong money for the cars in the wholesale market.

dissected for information. BMW, Toyota, Honda and Renault have all gone on the record to deny any wrongdoing.

Popular cars such as the Golf, Passat and Beetle are affected, as is the Audi A3. It all affects the diesel engine E189, which was installed across the VW Group of products and had the naughty software installed.

Q A

And are any other brands affected outside VW? At the moment, no, but we wouldn’t be surprised if it transpired that many more manufacturers were up to no good. Engineers swap between manufacturers like wives at a keys-in-the-bowl party, while new cars are lent between rival manufacturers so that they can be

September 23:

Winterkorn falls on his sword and resigns from the VW Group. The ship is rudderless and sinking.

September 24:

Q A

So what are the brands doing about it? Well, in the States VW has been ordered to recall all affected cars and fix them, and over here VW UK has unveiled a website where customers can input their VIN number to see if they’re affected. At present, there is no information on exactly what the manufacturer plans to do for customers that are.

Q A

Right, so even now, those customers still don’t have answers? Correct. We’re sure VW dealers out there are getting it in the neck. We’ve heard of customers cancelling car orders and angry people demanding refunds. VW’s official word on its

UK’s Department for Transport launches emissions investigation. Suspect cars to be retested in real-world conditions.

September 25:

Matthias Muller appointed VW CEO. UK government reveals it was sent a warning last October telling it that rule-bending was going on. Volkswagen admits 5m vehicles affected globally.

September 28:

Audi and Skoda reveal 3.3m of their cars involved. Martin Winterkorn investigated by German prosecutors. Switzerland bans the sale of Euro5 engine. CarDealerMag.co.uk | 29

DASHBOARD. website is: ‘We are working intensively to find a solution and will inform every customer affected about any actions planned as soon as possible.’ Why it’s taking so long is anyone’s guess, but every day that passes ruins its reputation further.

Q A

So you’re saying VW isn’t exactly handling this very well? You could say that. We’d even go so far as to say it’s a complete shambles. If we’ve learnt one thing from crises of this sort it’s that open and honest communication and a quick resolution are key to repairing the damage. Look at the way Toyota handled its last recall as a great example of how to do it properly. Near enough every day its head of PR was on the couch in a news studio explaining the latest, but have you seen one VW spokesman on TV? Many would argue Volkswagen’s German way of keeping quiet, reacting slowly and poorly informing customers is doing it more harm by the day.

Q A

What are dealers saying? Very little. We’ve tried to speak to a number of franchises but it’s clear there’s been a diktat from on high to keep quiet. Even when we posed as members of the public we received little information. Dealers simply referred us to the manufacturer. We’re not even real customers and that annoyed us – imagine what you’d feel like if you’d forked out your own money for one of these cheating cars?

Q A

And will this affect diesel values? We fear it will. Firstly, diesels are taking a hammering in the press and that sort of bad publicity rubs off. The trade guides have already seen VW values softening, falling by 2.1 per cent in September. Car Dealer Forum members say it’s even worse. One spoke of a VW specialist who has seen business literally dry up overnight. Trade Centre Wales slashed the prices of all its German cars by up to £2k. Its chief executive, Andy Coulthurst, said: ‘We predict prices of German cars entering the wholesale market will significantly soften before the end of October.’

Q A

So are VW dealers facing imminent closure – didn’t they take some cars off sale? That’s probably pushing things a bit, but needless to say they’re not exactly in a great place. At the start of October, the manufacturer took 4,000 cars off sale – effectively three per cent of its stock. It said they’d be put back on sale once a fix had been found.

VOLKSWAGEN SCANDAL TIMELINE

September 29: Seat is involved to the tune of 700,000 cars.

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September 30: 1.2m UK vehicles are among those affected. VW announces a nationwide recall.

October 1:

VW halts the sale of 4,000 UK cars fitted with the cheating software.

October 2:

Department for Transport states Euro5-engined car owners will not be hit with higher tax bills. Urges greater clarity from VW.

October 5:

BMW and Ford defend the German car industry and insist their cars don’t have similar devices. The US wants to scrutinise other companies, though.

Q A

So this elusive fix sounds harder than anyone imagined it would be, right? Right. Basically, the affected cars need to have the cheat software removed without restricting performance too much or increasing fuel consumption. It’ll be a very hard conversation for dealers to have with customers if the ‘fix’ makes the customers’ cars’ performance worse.

Q A

So could VW be forced to buy back affected cars? Who knows? But already the compensation vultures are circling. One suggested that manufacturers have been charging a £1,000 premium for diesel cars so at a minimum affected customers could expect to get that back. And it’s hard to argue with customers who bought a car with advertised levels of emissions, fuel economy and performance to then be told that was a lie.

Q A

So will the affected cars’ tax bands be affected too? No. The government was a lot quicker to comment than VW, telling customers that they will not face a higher tax bill if they own one of the cheating cars. Transport secretary Patrick McLoughlin said: ‘The government expects VW to support owners of these vehicles already purchased in the UK, and we are playing our part by ensuring no one will end up with higher tax costs as a result of this scandal.’

IN DETAIL: THE AFFECTED VW shares technology across its brands – and that, it seems, included the cheat software. In the UK, 393,450 Audis, 76,773 Seats, 131,569 Skodas, 508,276 VWs and 79,838 commercial vehicles are affected. VW has yet to release a full list of the models affected. However, all those fitted with the EA 189 engine – in 1.6-litre and 2.0-litre diesel guise sold between 2009 and 2015 – are included. Models include the VW Golf, Passat and Jetta, Skoda Fabia and Octavia, and Audi A1, A3, A4, A6, TT, Q3 and Q5. But that list is highly likely to grow further. Customers may choose not to have the fix – which is rumoured to be a download that will take around half a day to complete – installed. And because nitrogen oxide levels are not checked at MOT, the car would still be legal to drive on the road. However, come resale time the values of non-fixed cars are likely to be hit, as a record of those that have had the treatment and those that have not will be kept.

AUDI 393,450

Q A

SEAT 76,773

Will VW ever recover from this? It’s a big brand, but there’s no doubt this scandal is going to hurt it big time. Not only financially but the damage to its reputation is hard to quantify. The answer will only really be known when we know exactly how the manufacturer is going to solve the problem. They say when you screw up you should go above and beyond the call of duty to make amends – and that’s exactly what VW needs to do now. Question is, with litigation suits the world over, will VW be able to afford it?

VW 508,276

Q A

What happens next? Customers are now waiting to find out how VW will fix their cars. At the time Car Dealer went to press – three weeks after the initial news broke – owners of the 1.2m cars affected still didn’t know what the resolution would be. We’re sure VW dealers are hoping they won’t be left waiting much longer. James Baggott, p114 [CD]

October 6:

VW CEO Muller announces potential job cuts, as all unnecessary expenditure is frozen. Bye bye, new Veyron?

October 7:

VWs to be recalled in January. All cars will be fixed by next Christmas, apparently. Hans Dieter Poetsch appointed group chairman.

October 8:

SKODA 131,569

Boss of VW USA Michael Horn gives testimony to US House of Representatives and says he’s known about the device since last year. VW’s Wolfsburg HQ is searched by German public prosecutors.

October 9:

The day Car Dealer went to press. Paul Willis, UK MD, will be facing Parliamentary committees in the coming days. CarDealerMag.co.uk | 31

HPI. So much more than a check.

Customer drives away the car

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Ask HPI YOUR QUESTIONS ANSWERED

Those crooked clockers are just as busy as ever

Players, from left: Sam Beard, Fraser McKenzie, Rory Sutherland, Anton Bresler, Tom Brown, Damien Hoyland, Sean Kennedy, Roddy Grant, Nasi Manu, Dougie Fife, Neil Cochrane and Phil Burleigh

Mitsubishi teams up with Edinburgh rugby once again ‘Lots of excitement at the club and the sport in general’

itsubishi Motors in the UK has announced it will be extending its sponsorship of Edinburgh Rugby for another year. The UK’s fastest-growing mainstream car brand has backed the club since 2013 and Jonny Petrie, managing director of Edinburgh Rugby, welcomed the decision to continue the relationship. The partnership includes the club, currently sitting second on the Guinness Pro 12, receiving five Mitsubishi vehicles and support from its local dealer, Belmont Mitsubishi in Sighthill. In return, the famous three diamonds Mitsubishi logo will appear on the club’s shirts and there will be branding in the stadium.

Former Scotland captain Jonny said: ‘We want to be working with brands that fit with us as Edinburgh Rugby and can also work with us to bring matchdays to life. So we’re delighted to continue the partnership with Mitsubishi and with Belmont. Being able to work with a good local dealer and strong brand like Mitsubishi is great for us.’ Martin Woodward, partnership engagement manager at Mitsubishi Motors in the UK, said: ‘We’re delighted to extend our partnership with Edinburgh Rugby. There’s a lot of excitement at the club and the sport in general so we’re looking forward to a successful time ahead.’

New Rolls-Royce showroom ROLLS-ROYCE is to open a showroom in Bristol next spring – creating 46 jobs. This will be the super-luxury marque’s seventh dealership in the UK and will cover an area of more than 12,000 square miles stretching from Land’s End, through Wales and up to the Cotswolds. It will be managed by Rybrook Holdings – the company’s second Rolls-Royce franchise, having operated Rolls-Royce Motor Cars Birmingham for a number of

years. Construction of the state-of-the-art showroom, which will have sales and aftersales facilities, is due to start at Cribbs Causeway next month. James Crichton, regional director, RollsRoyce Motor Cars Europe, said: ‘We’re delighted to be working alongside Rybrook as we open our seventh showroom in the UK. Rolls-Royce Motor Cars Bristol will help us deliver further sustainable growth in the United Kingdom.’

’ve just had an unexpected visit from Trading Standards regarding a car I sold six months ago. The vehicle I bought was five years old. All the history and MOTs checked out. I sold the car thinking it was fine but have just found out that the mileage was adjusted. I have now done an NMR check and investigation which confirms it was discrepant. How come the MOT history didn’t pick this up but the HPI NMR check did? I thought clocking was a thing of the past. Sadly, clocking is on the increase, rather than being a thing of the past. Some may argue that modern digital odometers actually make it easier to adjust a vehicle’s mileage without leaving any physical clues. The way vehicles are clocked has changed but there are many ways for the unscrupulous to do so. We are seeing owners, some of whom may be PCP customers with limited mileages, adjusting the figure themselves through ‘mileage correction services’. In order to avoid potentially huge excess penalties, they are clocking these cars once a year. The concern is that these cars often miss necessary services due to the mileage adjustment. This is a real concern for the next owner as some important service and safety items may not have been replaced and may make the vehicle less safe. This type of clocking will not be picked up by checking a service history alone. The MOT check offers little help in the first three years of a vehicle’s life; even beyond this, an owner simply needs to clock the car just before its MOT is due to help with the illusion. Although you haven’t given us the reg number, you have stated that HPI picked up on the mileage discrepancy during an NMR check. We can’t say on this specific vehicle which data helped to flag the discrepancy up as we do have access to millions of mileages from various sources such as breakdown organisations, tyre fitting services, finance companies and insurance companies as well as our extensive network of dealers, all of whom input details when checking car. As you can see, it’s a far more comprehensive database than many realise and given it’s estimated that clocking is costing the UK £750 million a year and PCPs are nearly 50 per cent up in the last five years, a NMR check is the best way to protect yourself, your reputation and your pocket from inadvertently buying a clocked car. And don’t forget to conduct a full NMR investigation – this is considered the only way to ensure that you have met your duty of care under the Consumer Protection Regulation should Trading Standards come knocking in the future.

‘Cars often miss necessary services due to mileage adjustments.’

Who are HPI?

HPI are the experts in provenance and vehicle data. Every month, they help to answer questions from you relating to finance, write-offs or car scams. If you have a problem and need some help email us at HPI@blackballmedia.co.uk and we’ll do the rest CarDealerMag.co.uk | 33

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How Mariah Carey and Japanese tea have helped Nissan do so well UK’s biggest carmaker puts each of its models through a series of very tough tests

inger Mariah Carey might not know it, but she plays a crucial role in the development of every Nissan crossover. So do robots and a selection of cups and bottles from around the world. For the first time, Nissan has revealed the extreme measures it uses to test its new cars – including the X-Trail, Juke and the recordbreaking Qashqai. The UK’s biggest carmaker says it puts each of its models through the real-life and sometimes arduous usage the vehicles will experience in everyday situations as well as taking into account the latest market trends. Since the first crossover was conceived in 2007, Nissan says it has conducted more than 150,000 tests across the crossover range. These include: n Using special robots to open and close the windows at least 30,000 times per model, while using specific volcanic dust imported from Japan to test against scratching and ensure durable functioning of the electric window mechanism. n Activating the windscreen wipers for 480 hours at different speeds and settings, as well as in

by DAVE BROWN @CarDealerDave

simulated varied weather conditions. n Deploying the indicators right and left 2.25 million times on every model. n Playing the stereo at high volume for a total of 1,200 days (that’s 1,728,000 minutes) using specifically selected music tracks to encompass the widest range of pitch and beat. These include Mariah Carey for the high notes and the thumping bass of German house music. n Dropping weights to ensuring the glass roof can withstand the weight of a brown bear climbing on the car. n Using a host of different cups, bottles and containers to check the usefulness of the cupholders and door pockets. n Engineers even decided to redesign the front door pocket of the Qashqai when it emerged that the new bottle of a popular brand of Japanese green tea would not fit without being slightly squeezed. The design was modified at a cost of more than £35,000.

n The same engineers and their ingenious robot helpers have also opened the bonnets of its crossovers collectively more than 48,000 times and the doors an astounding 1.2 million times. The interiors of the Nissan crossovers have also been tested against tricky every-day stains such as chocolate and oil, lipstick, hair gel and coffee. David Moss, senior vice-president at Nissan Europe Technical Centre, said: ‘Some of the devices we have created and instruments we use might make us look like mad inventors. ‘But they are all there to make sure that Nissan’s range of crossovers are thoroughly tested to meet the needs of our customers – and will continue to do so for years to come.’ It’s a strategy which is clearly working. Qashqai was the second best-selling retail passenger car in March 2015 and the fourth best selling overall. Nissan has also recently added a 1.6-litre DIG-T 163 petrol engine to the X-Trail range. Already available in the Qashqai range, the new DIG-T 163 engine is the most powerful engine in the new X-Trail range, combining sharp performance with low CO2 output and exceptional fuel economy.

More than £23,000 raised for WellChild charity at successful golf day A TEAM from CCR Mitsubishi joined a host of sporting celebrities in a fundraising golf tournament for the group’s chosen charity. Group operations manager Bruce Simpson, regional general manager for Chertsey and Reading Mitsubishi Saul Hodder, Reading Mitsubishi sales executive Brian Williams and CCR Mitsubishi driver Martin Smith took part in the fifth Mark Foster Golf Day at The Shire Golf Club in Barnet, which raised more than £23,000 for WellChild’s work with seriously ill children.

Simpson said: ‘We all had a fantastic day and it was great to be part of something that raised so much money for our chosen charity.’ Famous faces joining five-time Olympic Games swimmer Mark Foster included former footballer Clarke Carlisle and former rugby internationals Rory Underwood and Craig Chalmers. Colin Dyer, chief executive of the Cheltenhambased charity, said: ‘We would like to say thank you to those who took part for making it such a successful event.’ CarDealerMag.co.uk | 35

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Could do better: Automotive industry fares badly in survey Customer experience research shows disappointing level of satisfaction

he automotive industry has come next to last for customer satisfaction in the latest survey from service design consultancy Engine. Just 12 per cent of the 1,024 people who took part in the second annual Customer Experience Survey said they were happy with the service they received. Out of the 14 sectors, the insurance sector fared the worst, at 11 per cent. However, automotive proved to be the sector where people’s choice of provider was least influenced by customer experience. Oliver King, co-founder of Engine, said: ‘It’s certainly a cause for concern that automotive ranks behind even public transport/trains and utilities in terms of quality of customer service. ‘Although figures suggest the experience isn’t a strong influence

on customer choice, this is because in sales, by the time people reach a dealer, they’ve pretty much decided exactly what they want to buy, so the interaction is much more about ratifying and confirming the product

meets their needs. However, it’s naïve for manufacturers and dealerships to be lazy about customer experience because of the impact it has on the more profitable and ongoing areas of servicing and repairs. ‘For automotive, customer experience is all about ownership. Whilst the relationship may start at purchase, the way customers are treated and the service levels dealerships provide will be the deciding factor in loyalty.’ Openness/honesty was the mostvalued trait in the way a company provides its customer service and experience (cited by 49 per cent), followed by efficiency (43 per cent) and reliability (41 per cent). All three of the most valued traits become a bigger factor with age – particularly openness/honesty.

PENTAGON

New Jeep and Alfa showroom PENTAGON Motor Group has opened a new Alfa Romeo and Jeep dealership in Doncaster. The thorough refurbishment project ensures that the new site matches the standards set by the existing 33 dealerships across Yorkshire, Greater Manchester, Derbyshire, Staffordshire, Nottinghamshire, Lancashire and Lincolnshire. Pentagon Motor Group has created 20 new jobs in sales, admin and aftersales within the dealership in Wheatley Hall Road, which will be led by general manager Mike Cox. The acquisition follows the opening of their Vauxhall, Citroen, Dacia, Jeep, Mazda and Renault dealership in Lincoln last month.

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36 | CarDealerMag.co.uk

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Around the world Dealer news from somewhere other than here

RUSSIA

A FASCINATING collection of around 200 old cars has been discovered in the seaport town of Kolding. Jens Sorensen owned a Fiat dealership in the town between 1973 and 1981 but for reasons that aren’t clear, did not sell the cars he took in part-exchange against the new ones he sold. It is thought that when Jens died, he left them all to his son, including several second-series Fiat 127s.

BRAZIL

IN A demonstration of the importance of Latin America to Land Rover, the company has announced that its new plant in Itatiaia will build the Range Rover Evoque alongside the already-confirmed Discovery Sport. The first Brazil-made Evoque is expected to roll off the assembly line in 2016, in the midst of a £240m investment in the Itatiaia plant.

38 | CarDealerMag.co.uk

DUBAI

THERE are just a few weeks to go to the third Dubai Motor Festival, which will be held from November 10 to 21, with the famous Grand Parade – billed as a spectacular showcase of vintage cars, luxury cars, supercars and motorbikes – due to take place on November 21. There will also be a competition to discover the ‘best decorated national day car’.

INDIA

CHINA

SALES volumes of cars have declined dramatically recently, reports The Economist, which adds that Barclays Bank recently revised its growth forecast for 2015 down from 8.5 per cent to just 1.7 per cent. In some quarters, there are fears that sales might even shrink and all this has left many of the country’s car dealers struggling to cope. Even showrooms where premium German brands are sold – which historically have been some of the strongest performers – are having to battle hard for custom.

A CAR designer from India has tried to set a Guinness world record by building what he hopes is the largest car on the planet. The vehicle, which doesn’t actually move, is modelled on a 1922 Ford Tourer and is 26ft tall and 50ft long. Yadav owns a car museum in the southern city of Hyderabad where some of his other unusual creations are also on show.

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BIG MIKE.

All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike

My chat with Cecil, and a hefty bill I’m facing for restoration

have a guilty passion. I love banger racing. Much as I love cars, and have a genuine affection for old, well-preserved classics, there’s very little as exciting or thrilling to watch as a circuit full of battered old family saloons slamming each other into the barriers at great speed. It’s a miracle, quite frankly, that the drivers survive the impacts, let alone that the cars keep on going. It’s also, I find, a great way of determining what makes a good car. Thanks to banger racing, I’ve learned that Volvo 240s, Ford Sierras, Nissan Bluebirds, Rover 200s and Toyota Previas (yes, really) are among the absolute toughest and most indestructible cars ever made and, on the basis of such demonstrations of strength, I’ve owned each and every one of them as my own personal transport with the exception of the Toyota. No car dealer worth his salt would keep a Japanese people carrier for himself if he lives in a town with taxi operators… Anyway, I digress. For the first time in my life, I’ve decided to restore a classic. Yes, I’m going off on a tangent here, but bear with me. The car in question is a Jaguar XJ6. I sold it for the first time in 1992, when it was six years old. It came back to me in 1998 as a part-exer, and I sold it on again. Ten years later, it returned, still in respectable nick, albeit frilly round the edges. That was 2008, and I advertised it as a £995 px to clear, not expecting to see it again. I sold it to the chap who originally bought it in 1992, and who had regretted selling it ever since. He’d seen it in the paper, and was round like a shot. He continued to use the car until earlier this year, when ill health meant he had to give up driving. So guess what? He phoned me up and asked me if I’d like to sell it on again. I decided that, as the car had been in my possession more times than it had anyone else, there was an omen there, so I offered the chap a fair price for what was, essentially, a spares or repairs car and decided that now was the time to finally do what I’d always fancied doing, and restore a car I’d always liked… Well, I say restore, but technically I’m outsourcing all but the simplest of jobs to a specialist. The Jag is surprisingly solid, but it needs a mechanical overhaul, the electrics sorting out and a proper quality respray, so I’ve left it with a trusted local company that was recommended to me by one of my regular customers, who has a collection of classic Fords. There was a Ford in the workshop when I drove the Jaguar over there, the day before its MoT expired. The car

Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...

in question was an early 1977 Mk 4 Cortina finished in a colour I’m reliably informed is called ‘Aquatic Jade’ – a kind of lurid metallic greeny blue, that’s very of its era. The paint had just gone on, and the trim was in the process of being refitted, its newly-rechromed bumpers giving it an almost factory-fresh appearance. It’s ages since I saw any Cortina, let alone the Mk 4, with its smaller tail lamps and skinny chrome bumpers, so I was naturally drawn to it. There, leaning against the wall and also looking at it, was a substantial and heavily-tattooed individual, who would be best described as someone you ‘wouldn’t want to mess with’. ‘Like it?’ he grunted, in a broad Midlands accent. ‘Yes, of course,’ I agreed, because disagreeing with Baldy didn’t really seem like a good idea. Books, covers, etc., after half an hour, Cecil and I (after

‘I’m outsourcing all but the simplest of jobs to a specialist.’ I’d successfully managed not to laugh at his name) were having a whale of time, spinning yarns about some of the best cars we’d ever owned and loved. ‘I raced a few of those,’ Cecil told me, nodding towards my Jag. ‘Tough old birds they are, all fur coat and no knickers as you grind ‘em off the Armco. ‘I bloody love the V12s.’ Cecil, it turns out, was a banger racer. A man who had, single-handedly, prematurely depleted the classic car population of the West Midlands by more than 300 units, against the barriers of Hednesford Raceway. The Cortina was his stab at redemption… ‘I’m a bit like the Dukes of Hazzard,’ he told me. ‘They destroyed 300 Dodge Chargers when they were filming, and now the bloke that played the soppy one restores them for a living (this much is true, I checked it on Wikipedia). ‘I’ve spent the best part of ten grand on this thing,’ he pointed to the renascent Ford. ‘And I don’t regret a penny – I owe it to the Cortina to preserve a beautiful one after all the fun I’ve had wrecking them…’ I like that in a man. I’m not looking forward to the restoration bill for the Jaguar, though…

Who is Big Mike?

Well, that would be telling. What we do know is he’s had more than 30 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 41

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TRADING UP.

We’ve doubled our money with Saxo success It wasn’t a big win, but we go into the winter with our sights now set on a 4x4, says ANDY ENTWISTLE

ell, we did it, we doubled our money. I admit, this was just the amount that we invested in the Citroen rather than the whole pot, but it’s a minor success for us and hopefully one that we can now replicate again. You may recall our little Saxo was bought unseen from Leeds for £100. The Citroen cost us another hundred to get delivered down to Car Dealer Towers in Gosport. Although every panel had an element of ‘personalisation’, my logic was that this was a cheap runner with low mileage and a small engine... perfect learnerdriver fodder. The plan was to do some minor refreshing, make it look a little better and then sell her on for a nice little profit.

As it turned out, the day job got in the way and the little Saxo sat in our car park untouched for four weeks, aside from an occasional drive round the car park. However, the fact that she started first time, every time, and drove really well, gave me hope. I decided to chance my arm by listing her on the interweb as is. I was honest about the condition and, aside from a new set of wheel trims, she was just the same as the day she arrived. I listed her for £495 and eventually a trader from the West Country saw the potential and bid on the car. We agreed on £400 unseen and the car was collected a few days

later. So, we enter the winter on the back on a good, albeit small, win and with our meagre pot bolstered by £200. The doommongers are saying we’re in for a harsh winter, so I’m going to see if I can turn our small pot into a 4x4 before the weather turns. Hopefully I’ve not missed the boat on getting a 4x4 at a reasonable price before the market also turns. Something small and Japanese should do the trick and hopefully we’ll make a killing when the first frost hits. Trading Up will be amongst the savvy dealers out there and praying for a bout of bad weather – but not before we’ve found our next bit of stock.

STORY SO FAR... Suzuki Vitara Paid: £1,500 Spent: £300 Sold: £1,950 Toyota Rav4 Paid: £2,000 Spent: £200 Sold: £3,000 Mazda MX5 Paid: £1,500 Spent: £200 Sold: £1,900 Jaguar XJS Paid: £2,200 Spent: £0 Sold: £2,600 Audi A6 Allroad Paid: £2,250 Spent: £500 Sold: £2,650 Ford Fiesta XR2 Paid: £1,900 Spent: £250 Sold: £2,650 Land Rover Discovery Paid: £3,600 Spent: £1,500 Sold: £3,500 Subaru Impreza Paid: £1,600 Spent: £650 Sold: £2,250 Rover Coupe Paid: £600 Spent: £0 Sold: £800 Peugeot 307 Paid: £500 Spent: £50 (on a battery) Sold: £700 Renault Clio Paid: £1,600 Spent: £400 Sold: £2,250

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FINANCE.

Quartet take on the Downs by bike to raise cancer cash Employees refuse to be deterred by chains falling off and punctures as they pedal 65 miles from London to Brighton

team of four Close Brothers Motor Finance employees took part in a London-toBrighton bike ride to help raise funds for Cancer Research. Adam Hammond, Steve Ross, Elliot Bishop and Ian Brown, from the Sevenoaks branch of the company, pedalled a gruelling 65 miles between the two major cities, taking in the steep slopes of the North and South Downs and raising more than £1,200. Account manager Adam Hammond said: ‘All four of us managed to finish with decent times, even with the odd puncture and a chain falling off. ‘To be honest, I never knew there were so many hills between London

and Brighton! My legs certainly felt it afterwards but it was worth every minute to be able to contribute to a great cause such as Cancer Research.’ Chief executive James Broadhead said: ‘I’d like to commend the efforts of our team. It takes great determination to take part in an event like this and I’m delighted to say that

their hard work has helped us to raise even more for a vital cause. ‘We’ve had Cancer Research as our charity partner for over a year now and in that time our colleagues across the UK have raised almost £40,000 in total. They are already looking for new challenges and new ways to reach out to their communities.’

Lender pays visit to charity helped by £5,000 donation ALTERNATIVE finance lender The Car Finance Company has seen for itself the good work done by a charity to which it donated £5,000. The Portsmouth-based firm gave the money to Hannah’s Holiday Home Appeal earlier this year via its Friends in Finance initiative. The charity is dedicated to giving breaks to families in need who have children with cancer or other lifelimiting illnesses, as well as families who have lost someone very special, so that they can have time together away from everything. It has three homes – in St Leonards, Milford-on-Sea and on Hayling Island

44 | CarDealerMag.co.uk

– and the money paid for 20 families to have a holiday in one of them. The charity was established in memory of 10-year-old Hannah Westbrook, from Waterlooville, who died of Hodgkin’s disease in 2004. It had asked for £1,000, but the Friends in Finance panel was so moved by the charity’s story that it gave five times that amount. Mark Smith, the co-founder and chairman of The Car Finance Company, which specialises in providing finance for people with poor credit, said he had wanted to see for himself the work done by the charity, so paid a visit to Hayling

Island to see the luxury caravan at the holiday park there, where he chatted with Hannah’s mother, Pam Marshall, and Claire Cook, who is one of the charity’s volunteers. He said: ‘It’s been quite eye-opening because this is something most people are unaffected by. It’s given us a good chance to see how the money has been used.’ Talking about the selection process for the donation, he said: ‘There were so many heartwrenching stories that we came across. It can be quite difficult to stand out from the crowd, but in this case the charity stood out because of the personal commitment.’

NEW JOB

Witter is made VW’s board member for finance

FRANK Witter has been made the Volkswagen Group’s board member responsible for finance and controlling. The 56-year-old was previously chairman of the board at Volkswagen Financial Services AG – a position he had held since September 2008. He has succeeded Hans Dieter Pötsch, 64, who had served as the board member for finance from 2003 and has now been made chairman of the board of directors. Witter, who trained as a qualified savings bank officer and studied economics at the University of Hanover, holds a degree in business administration. He joined Volkswagen in 1992 as head of the capital markets business section at the group treasury and has risen steadily through the company, working in the US and Switzerland. His roles have included treasurer at Volkswagen of America Inc, Volkswagen Canada Inc, VW Credit Inc and their subsidiaries, as well as serving as president and chief financial officer of VW Credit Inc.

..in association with

Remember the 4Ps? These important tools do make a difference W

hen was the last time that you assessed the 4Ps – product, price, place and promotion? Quite a few years back now, I studied marketing foundations at university, and a lot of this subject concerned marketing plans and the marketing mix, which were known as the 4Ps. You learn about the 4Ps in business management studies, as they are an integral part of a business set-up and strategy, so most of you will have come across these at some point in your career. My point, however, is that even if you have, when was the last time that you used them or assessed them?

‘We all know that a product is only worth as much as people are prepared to pay for it.’ In summary, the 4Ps are: Product – This is whatever is being sold to the customer and can be either a tangible item or an intangible service (finance, for instance) that fulfils a need or want of consumers. Whether you sell cars or insurance, you’ll know your product Price – We all know that a product is only worth as much as people are prepared to pay for it. So that means that price will affect profit margins, supply, demand and marketing strategy. You may need to position your price differently based on a number of areas: competition, product/service quality or even geographical location. Place – This is to do with the logistics of distribution. Where is a product stored/sourced and how does the customer purchase the product? Key areas to keep in

Ben

Garside TIME IS MONEY

mind are: Is it ‘convenient’ for the customer and the business? Is it easily ‘accessible’ for the customer? Promotion: This is not just regarding money offstyle promotions but all the methods we can use to communicate with a customer. Promotion includes elements such as advertising, public relations, sales departments and sales promotions. I recently assessed a campaign that we had been asked to work on for a motor trader. The owner had built a website, had a source of incoming leads and a budget to start increasing leads through an online medium, but it wasn’t working for him. The campaign was set up almost perfectly. It had one target product: used cars. The campaign also had the price correct: the vehicles had been priced up following valuations via a well-known brand and had

Turn over page for more finance stories been checked against the local competitors, as the trader wanted to be competitively priced. However, the place and promotion were incorrect in my opinion. The promotion tool was an online searchengine advertising tool and set to be delivered nationally. This meant he hadn’t thought about place (distribution) thoroughly, meaning both needed assessing. The trader was a medium-sized, single-site dealership and the website spoke mainly about his cars being available in his town and that he provided used car sales in the local area. However, there was no delivery option on the website. A simple alteration was made – we changed national to local – and that has seen all measurements improve. The 4Ps may be old, but they’re always worth remembering.

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

CarDealerMag.co.uk | 45

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO... CROSSOVERS RENAULT KADJAR SIGNATURE TCE 130

MAZDA CX-3 2WD SE

RENAULT’S answer to Nissan’s best-selling Qashqai comes in the form of the new Kadjar. Marketed as a more premium product than its Japanese rival, the two nevertheless share underpinning, so a comparison between the two proves interesting. The Kadjar in question is specced in Signature TCe 130 trim, with a sat nav included. It can be acquired on a 48-month contract with monthly payments of £289, with an identical customer deposit cost of £289. The comparable on-the-road price is £21,695. Dealers contribute £660 to the deposit, while customers can opt to buy the vehicle for an extra £10,315, with an option-to-purchase fee of £149. This equals a total payable amount of £25,384, at an interest rate of 5.9 per cent APR, making it £3,689 more expensive than the OTR price.

WE thought Mazda was on to a winner with the CX-3 when we drove it back in Issue 89, so all the more reason to take notice of Mazda’s financial offers available to prospective customers. The Japanese marque offers a 36-month finance scheme, with monthly payments of £279, for the 120hp 2WD SE. Customers must also pay a deposit of £2,355, with Mazda contributing £500 towards it. This makes the total payable amount £20,290 – £2,035 more than the OTR price of £18,255, at 5.9 per cent APR. The 2WD SE comes equipped with cruise control, air-conditioning and 16in alloys as standard, and is powered by a 2.0L 120hp petrol engine, which is good for 0-60mph in 8.8 secs and 47.9 mpg. If customers choose to buy the vehicle at the end of the tenure, there is an optional final payment of £7,391.

Simplifying the finance process ‘could boost industry by £9.6 billion’ Survey result seen as major opportunity for manufacturers

new study has discovered that simpler car finance processes and revised financial management technology could inject a further £9.6 billion into the UK’s automotive industry. The report, undertaken by financial technology firm Intelligent Environments, uses online survey data from 2,000 UK consumers, as well as the Office for National Statistics and the Society of Motor Manufacturers and Traders, to pinpoint the potential cash injection for the industry. Results claim that almost two-thirds of UK motorists (63 per cent) admitted that buying a car is hard, while 61 per cent of those surveyed said that finance was one of its most difficult aspects. The study also found that one discouraging factor for customers when seeking finance is that they have to deal with their local dealership.

46 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave Sixty-three per cent said that they didn’t trust dealers to manage their finance competently, and 49 per cent admitted that they would like to maintain a close relationship with the manufacturer post-sale. This could present a major opportunity for manufacturers, it is felt. According to Intelligent Environments, there were 2.47 million car sales in 2014, while 46.3 per cent of these have been private so far this year, with an average price tag of £27,219. Using these figures, the total amount currently spent is £31 billion. If manufacturers were to make it easier to buy

cars, the amount of sales could almost double, as people would reportedly change vehicles every 3.5 years, down from the current average – 6.3. Thus, making finance easier could increase private sales by £9.6 to £40.7 billion. As a result, Intelligent Environments has improved its ‘Interact’ product to help manufacturers create better relationships with their customers. David Webber, the managing director of Intelligent Environments, said: ‘As cars become smarter, more complex and increasingly sophisticated, a closer, better and simpler relationship with the manufacturer will become increasingly important to consumers. This technology will help take the first step.’

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NISSAN QASHQAI N-TEC MANUAL 2WD THE most popular crossover in existence, the Qashqai is the daddy of small off-roaders. This N-Tec model with a manual transmission and 18-inch alloys boasts a 115bhp petrol engine, pulling the Qashqai from 0-60mph in 10.6 secs, although those with young families might find the spacious wheelbase of 2,646mm of more use. While the on-the-road price is reasonable at £22,660, Nissan has made the N-Tec available on a three-year finance scheme, with an APR rate of 6.99 per cent. Customers must deposit £5,607, followed by monthly payments of £219. Dealers also offer a deposit contribution of £1,250. Customers get three years of low-cost servicing at £299, linked to a Nissan Finance package, and three years’ roadside assistance. This makes the total amount payable £25,439, with a final payment option set at £10,697.

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Warning bell sounded over lack of choice with point-of-sale products...

... as new figures show rise in sales through finance

MORE customer choice when it comes to point-of-sale finance could be needed if dealers are to escape further FCA regulation, warns iVendi. Chief executive James Tew said the situation regarding motor finance was very similar to when the FCA decided to take action over GAP. He said: ‘The FCA’s actions on GAP were designed to tackle a perceived lack of customer choice. What would happen if the same approach was applied to point-of-sale motor finance? ‘The fact is most dealers currently offer only a very limited choice, some simply sticking with one product from one lender. If we are to head off any potential FCA intervention, we need to start offering more. ‘In our view, dealers need to ensure that there are genuine options for car buyers, with different types of products and also different interest rates providing for those with different risk appetites.’ Tew said that transparency and information were crucial, allowing for a range of informed choices.

LATEST figures from the FinanceCMY & Leasing Association (FLA) showK point-of-sale consumer new car finance was up eight per cent by volume and 11 per cent by value in August, compared with the same month last year. The percentage of private new car sales financed by FLA members through dealerships in the 12 months to August reached 78.9 per cent, up from 78.7 per cent in the 12 months to July. Point-of-sale consumer used car finance also saw continued strong growth in August – up seven per cent by volume and 12 per cent by value. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘Consumer new and used car finance markets reported relatively robust growth in August, ahead of the 65 registration plate. We expect this growth to continue in the final quarter of 2015.’

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CarDealerMag.co.uk | 47

FORECOURT. UNDER THE BONNET

LOOKS

New 2.0-litre Ingenium engine means the car is more economical and lighter than before.

A front-end facelift adds a new front grille and beefy vents making the Evoque look more muscular.

DRIVING

Thanks to the new All Terrain Progress Control (ATPC) system you can off-road with your thumbs!

Range Rover Evoque

Car Dealer has a day trip to Barcelona to put the new, facelifted Range Rover Evoque to the test WHAT IS IT? The second generation of the Range Rover Evoque, Land Rover’s bestselling vehicle. It offers premium luxury, modern looks and excellent off-road ability. The facelift makes the front end more muscular thanks to larger front vents and a more dominant grille. Because of its distinctive looks, the Evoque offers class-leading residual values if you ever want to sell.

WHAT’S UNDER THE BONNET? You have the choice of three engines, two of them being 2.0-litre Ingenium units. The most efficient is the manual 150bhp eD4 with the 2WD system that offers the driver up to 68mpg. The more powerful 180bhp TD4 powerplant can still deliver an impressive 59mpg with a manual gearbox and up to 57mpg with an automatic. The 2016 Evoque is also offered with the existing 240bhp Si4 petrol engine. This technology means service 48 | CarDealerMag.co.uk

intervals for the TD4 have been extended from 16,000 miles to 21,000.

WHAT’S IT LIKE TO DRIVE? On the motorway it is a smooth cruiser with minimal noise. You sit in a commanding position and the figure-hugging seats, especially in the 4WD HSE model, make for a very comfortable drive. Take the little Range Rover off-road and it really earns its badge. Thanks to the All Terrain Progress Control (ATPC) system, you can set a speed between 1-19mph and the car will do the rest, climbing up steep hills and descending rocky paths with ease.

WHAT’S THE SPEC LIKE? Plush! Open the doors and before you have even got in you can see the cabin oozes class. Heated seats, wade sensors and rear televisions come as standard. The doors are now softpadded and there is a new ambient lighting system. Outside, there are now two new

colours as well as five new wheel options, making 16 in total, to ensure the Evoque stands out on the roads.

ANY RIVALS? There are, but in the way that Usain Bolt has rivals, so it isn’t really a contest. There are the Audi Q3 and the BMW X3 to compete with, but the Evoque is much better in terms of luxury and leaves them in a muddy ditch when it comes to off-road ability.

WHAT DO WE THINK? It has managed to better the previous model, which is quite some feat. The cars exterior looks better thanks to its new front end and a more exaggerated roof slope. It is a case of ‘if it ain’t broke, don’t fix it’, which is why other than the front there is very little difference. If a luxurious, compact SUV is what you are in the market for then there is simply no better option. If it is slightly out of your price range then it is worth saving for an extra couple of years. It really is a great car.

THE KNOWLEDGE Model: 2016 Range Rover Evoque HSE Dynamic AWD Price: TBD Engine: Ingenium in line 4, 2.0-litre diesel Power: 180bhp Max speed: 121mph 0-60mph: 9secs MPG (comb’d): 55.4mpg Emissions: 134g/km

TARGET BUYERS: Luxury SUV lovers who might fancy going offroading

THE RIVALS: Audi Q3, BMW X3, Kia Sportage

KEY SELLING POINTS: 1. Off-road ability 2. Luxurious interior 3. Distinctive and eyecatching looks

DEAL CLINCHER: You can go off-roading while having a back massage.

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YOUR FUTURE. OUR ROADMAP. Find out more about our Roadmap for point of sale finance at blackhorse.co.uk/dealerportal or contact your Account Manager. CarDealerMag.co.uk | 49

FORECOURT. PERFORMANCE

INTERIOR

The 1.6-litre engine is properly fast once revs build up.

Drivers have plenty of adjustment in the seat and front visibility is top notch.

Peugeot 308GTi

THE RIDE

Although fidgety at low speeds, it calms down at higher ones.

It looks like Peugeot has achieved the dream combo of power and economy with this hot hatch, as Jack Evans found out WHAT IS IT? Following on from the smaller 208 GTI, the 308 GTi is aimed at drivers who want more involvement without sacrificing the ability to take the family out. With a large boot and decent room in the back, it should be ideal for drivers wanting everything.

WHAT’S UNDER THE BONNET? There are two power choices: the GTi 250 and GTi 270. Both are powered by a turbocharged 1.6-litre petrol engine producing 247bhp in the GTi 250 and 268bhp in the GTi 270. Confusing, we know. Power is transferred to the road via a six-speed manual gearbox. Peugeot hopes to provide power and economy, and with the 308 GTi going from 0-62mph in 6.0 and 6.2 seconds in the more powerful and less powerful variants respectively, but still achieving a combined 47mpg, it seems it’s cracked it.

WHAT’S THE SPEC LIKE? Inside, the cabin is angled around 50 | CarDealerMag.co.uk

Peugeot’s i-Cockpit, with its centrally-mounted touchscreen. This incorporates satellite navigation, radio and media connectivity. In the topspec GTi 270 that we tested, ‘Peugeot Sport’ bucket seats are included in the package, and provide more support than the standard seats. If you want these seats in the GTi 250, they’re an £800 option. For the £28,155 asking price of the GTi 270, there’s a decent level of kit, though the interior is far from breathtaking. Exterior features include 19” ‘Carbone’ alloy wheels and red painted brake calipers with 380mm front discs.

WHAT’S IT LIKE TO DRIVE? Confusing. The 308 GTi sure is fast, there’s no question about that. Power delivery is hampered by the large turbo, so initial throttle response is a little delayed. Once the twin-scroll turbo is spooled up though, the 308 GTi really gets into its stride. Despite the pace, the exhaust note is a little muted, especially from within

the cabin – it tends to drone on at motorway speeds too. Cornering performance is very good. However, the steering feedback isn’t there, with the electric power steering struggling to translate events on the road back to the driver. The ride, though a little jostling at low speed, is excellent higher up the speedo.

WHAT DO THE PRESS THINK? Autocar says: ‘Despite its dynamic limitations, the 308 is a more vivacious and interesting driver’s car than the Golf GTI and runs it close enough as an ownership prospect to just about seal the deal.’

WHAT DO WE THINK? The 308 GTi is certainly an attractive package, with good levels of equipment and an impressive engine to boot. It just lacks the final handling edge to fully challenge its rivals. It’s not disappointing to drive, it just feels at times that this hot hatch needs a little more heat.

THE KNOWLEDGE Model: Peugeot 308 GTi 270 Price: £28,155 Engine: 1.6 litre turbocharged petrol Power: 268bhp, 329Nm Max speed: 145mph 0-60mph: 5.8 seconds MPG (comb’d): 47mpg Emissions: 139g/km

TARGET BUYERS: Family drivers looking for a little more pace without sacrificing space.

THE RIVALS: Volkswagen Golf GTI, Ford Focus ST, Renaultsport Megane

KEY SELLING POINTS: 1. Decent levels of standard equipment, even on base model 2. High levels of performance 3. Excellent emission and consumption figures

DEAL CLINCHER: There’s a whole lot of performance on offer for the money.

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FORECOURT. ENGINES

REFINEMENT

New 2.0 TFSI petrol offers impressive fuel economy and power, but pick of the range is still the 2.0 TDI diesel

Audi A4

Audi are boasting wind noise levels on a par with the posh A8 saloon, and ride quality is equally impressive

WEIGHT

Audi has shaved up to 120kg off the new A4’s chassis, and it has paid dividends in both handling and fuel economy

The A4 is dead, long live the A4! But, asks Jon Reay, is there more than meets the eye to Audi’s 3 Series rival? WHAT IS IT?

are all the usual executive toys like blind spot alerts and so on, but Audi has dreamed up some new ideas too – like adaptive cruise control that, thanks to some GPS data, know when corners, hills and speed limits are approaching. Safety features aside, there’s a pleasing amount of new tech WHAT’S UNDER THE on display inside the A4 too. Audi’s BONNET? virtual cockpit from the TT makes an As you’d expect, there’s plenty to appearance, while a high-resolution choose from. The range now starts 8.3-inch screen perches proudly in the with a 148bhp 1.4-litre petrol, middle of the dash. replacing the old entry-level 1.8, and It’s a much nicer interior to sit tops out at a 268bhp 3.0-litre V6 diesel. in than the previous car. From an The 2.0 TFSI, now with 187bhp, has aesthetics point of view alone, there been redesigned for efficiency, and are far more interesting details to emits just 116g/km of CO2 thanks to catch your eye, and everything feels some clever engineering. like it’s really had some thought The big seller will probably be put into it. the 2.0-litre diesel in either 148bhp or 187bhp ‘Ultra’ forms – both have WHAT’S IT LIKE enough torque to be motorway friendly, and crucially for company car TO DRIVE? Impressively refined. Audi boasts that drivers, they chuck out between 99things like levels of wind noise are on 103g/km of CO2 in manual mode. par with the A8 luxury saloon – and WHAT’S THE SPEC LIKE? we’re inclined to agree. Despite the new engines big and Incredibly comprehensive. There It’s the brand new Audi A4 – yes, honest! It might have familiar styling, but don’t be fooled: this is a totally redesigned car that sits on the same new modular platform as the Q7.

52 | CarDealerMag.co.uk

small, the pick is probably still the 2.0-litre diesel – Audi seems to have worked hard to keep noise out and it’s not only quieter but sounds more pleasant than BMW’s new 320d. It handles tidily too – perhaps not the last word in dynamic abilities, but the A4 is willing to be hustled along a B-road at a decent pace.

WHAT DO THE PRESS THINK? Fleet News said: ‘Interior quality is the new class benchmark, while refinement and noise suppression are excellent. The new A4 is perhaps the most competitive it has ever been.’

WHAT DO WE THINK? The A4 has never been a car that shouts over its competition to be heard, selling well all the way through its life. This new car is much the same: there’s no outlandish new styling, or promises of sports car-like dynamics, but get behind the wheel and it’s clear just how great a package this new A4 is.

THE KNOWLEDGE Model:

Audi A4 2.0 TDI 190 Ultra Sport Price: £31,000 Engine: 2.0-litre turbocharged diesel Power: 187bhp, Max speed: 147mph 0-60mph: 7.7secs MPG (comb’d): 68.9mpg Emissions: 102g/km

TARGET BUYERS: Fleet buyers chasing low BIK and a premium badge

THE RIVALS: BMW 3 Series, Mercedes C Class, Lexus IS, Volvo S60

KEY SELLING POINTS: 1. Incredibly refined and comfortable cabin 2. More gadgets on offer than rivals 3. Impressively low fuel consumption across the whole range

DEAL CLINCHER: Most advanced and refined A4 to date

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CarDealerMag.co.uk | 53

FEATURE.

BMW’s French connection Writer JACK EVANS and snapper JONNY FLEETWOOD got behind the wheel of a facelifted BMW 3 Series and set out to meet dealers in France. They discovered that their customers have rather conservative tastes . . .

t was a trip that we’d been looking forward to for a long time. We’d pick up the keys to a brand new, facelifted BMW 3-Series from its media launch in Bilbao, Spain and travel back to the UK. What’s more, on the journey, we’d visit three BMW dealerships to find out if there was any difference in buying habits ‘en France’ compared to those back in Blighty. France is, of course, west of BMW’s heartland in Germany, but is one of its largest markets – 47,682 Bimmers were sold there during 2014. But why is BMW so popular among our Gallic cousins? We were about to find out. Before setting off on our journey of discovery, we chatted to BMW medium cars product manager for the UK Mark Costello about what made this latest 3-Series different from those that came before. With a facelift it can sometimes be difficult to differentiate a car from the previous model, but Costello was keen to dispel any such idea. Showing us to our particular car, a 320d xDrive saloon finished in Mineral Grey, he said: ‘At the front of the car we’ve got brandnew headlights. The base headlights get LED daytime running lights. They help to broaden the front of the car and make it wider.’ Indeed, the 3-Series really does have a great stance on the road – but so it should! Our car had an onthe-road price of £45,450. The previous generation car had suffered unfavourable reports about interior build quality and design, but it seems that BMW has addressed this too. Costello added: ‘We’ve listened to journalists’ feedback and so there’s greater amounts of aluminium. The central

54 | CarDealerMag.co.uk

information display is completely revised for this model, with sharper resolution and software that has 4G connectivity which allows over-air map updates.’ Costello re-affirmed that the future of the 3-Series is very much rooted in hybrid technology too. ‘We’ve got quite a range of hybrid cars with the X5 and the 7-Series. There will soon be several cars which will feature the same technology.’ Asked if a BMW would be a car that younger drivers could potentially buy, he added: ‘With everything based around levels of CO2 now, our smaller-engined cars will be more accessible to younger drivers. From an entry-price point of view the smaller engine size makes BMW cars a more achievable goal for younger drivers.’ Good news. Both inside and out, the newest 3-Series really does look fresh, with interior quality back to an all-time high. Our car, with its Coral Red leather seat upholstery felt genuinely special. It was just the place to be during a 980-mile journey back to the UK. OUR JOURNEY BEGINS The first destination was Pau, which features one of the smallest BMW dealerships that France has to offer. The trip there from Bilbao flew by, with the 3-Series already showing its effortless cruising prowess. En route we decided to stop in the small Pyrenean town of Formigal, which was pretty and seemingly deserted. After a pleasant stay overnight, photographer Jonny Fleetwood and I got up early and headed back down through the Pyrenees towards Pau, and, as we’ve said, our first dealer destination.

The xDrive technology meant the BMW was capable even on damp and slippery mountain roads. Traction out of corners was exceptional, as was the economy. The 3 was easily averaging 40mpg, even when sat in traffic behind a tractor. Pulling into the car park of Passion Automobiles, it could have easily been any other BMW dealership. Stepping inside, however, revealed something quite different - large quantities of interior trim physically displayed up on the walls. The French, it would appear, like to be more hands-on when choosing their car options. Struggling with the Anglo-French dialect, we managed to chat with a young salesman called Thomas Courade, who was happy to go outside and cast an eye over the facelifted 3-Series. ‘It’s a premium car’, he said. ‘People come for the looks of the car, as well as the price. The person who loves BMW will always come back, and they love our dealership here.’ Although young, Courade still had the best interests of the brand very much at heart – ‘we like to give customers an experience here and offer the best level of service we possibly can.’ He added: ‘We may be a smaller dealership, but we still offer the best-quality service we can. For me, the 3-Series is our most popular car because of its history and quality.’ BMW values, it seems, easily cross borders. Saying our goodbyes, we got back in the car and entered the next destination into the satellite navigation – or ‘central information display’ – and headed off towards Toulouse. We had been informed by the PR manager for BMW France that the Roland Pelras dealership there was

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The BMW was capable even on damp and slippery mountain roads. Traction out of the corners was exceptional. CarDealerMag.co.uk | 55

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FEATURE.

Jack and Jonny enjoyed putting the car through its paces – and chatting to the dealers they met en route

one of the largest in the country – second only to the flagship Paris showroom. Upon arrival the claim was confirmed, the dealership was indeed massive. If we were going to find out about French BMW buying habits anywhere, it was going to be here. There was a much larger inventory of cars than we’d seen at Pau, two i8s framed the entrance, and there seemed to be many more premium models on offer. Plus, there was an upper level at the dealership, on which perched classic motors – an E30 BMW M3, the front of a Z8, and a corner of what appeared to be a Renault 5 Turbo. We stepped inside to discover more. Introduced to product genius Guillaume Veljovic, we got talking about what makes a BMW 3-Series just that. ‘I think the new image is recognisable through its sportiness,’ he said. Turning to the French buying habits, Veljovic added: ‘I think that people coming into the dealership look for something different. You see other manufacturers with an old image and with the BMW it’s not the same thing. ‘Basically, the 3-Series is an historic car for BMW. With this new facelift, it’ll certainly be an easy car to sell. All the time the 3-Series is best because of its history.’ LOOKING TO BE DIFFERENT Strolling through the dealership, Veljovic leads us upstairs and past a velvet rope. The upper section of the building is larger than we first anticipated – and it held an incredible amount of metal. There were two E30 M3s, two BMW Z8s, a variety of Porsche 911s and even two original Fiat 500s. Veljovic explained why it was all hidden away: ‘We like a visit to our dealership to be an event. We have a coffee with the customers and make the whole buying process more of a journey. ‘French people come to BMW because they want to be different, they want a car that you can take to work and think “I am happy with this car”.’ Even when they weren’t around, it seemed that Veljovic was concerned with his customers, keeping their needs at heart while also maintaining key BMW brand ideals in mind. In other words, he loved the brand and loved keeping customers happy. He then turned his attention to our own 3-Series. Walking around the car, he immediately pointed out the updated headlights and the revised bumpers, as well as the larger chrome additions at the front. Veljovic was also keen to get across what it was that French drivers were looking for. ‘Currently, French drivers prefer a more standard-looking car, but they do like M-Sport too. They always want the Harman Kardon stereo as well,’ he said. The Roland Pelras dealership really was one of the largest, but the enthusiasm demonstrated by the staff there was incredibly personal. We were offered coffee, encouraged to sit in a variety of cars and taken CarDealerMag.co.uk | 57

FEATURE.

The car took everything in its stride, swallowing the miles and appearing to use only a pipette of fuel per 100 miles. It certainly managed to tick the economy box!

THE DEALERS WE CHATTED TO

DAVID PROUST

THOMAS COURADE

GUILLAUME VELJOVIC

ABM MONTAUBAN

PASSION AUTOMOBILES, PAU

ROLAND PELRAS, TOULOUSE

Passion Automobiles. On arrival, it seemed that we’d hit the sweet spot. After waiting a little while in the clean but rather empty showroom, we got chatting to salesman David Proust, who did an excellent job of deciphering our attempts at French. Confirming the statistics that we’d seen about the sales figures surrounding the 3-Series, Proust chatted to us while strolling through the cars parked neatly on the forecourt. ‘We sell more 3-Series than any other car here, with the 4-Series following up just behind,’ he said. ‘We sell a lot of the X4s too.’

added with a grin. Topped up with coffee once more, we said our goodbyes and rolled out of our last dealership. Our questions had been answered – and French buying habits really were different from those back home. It seems that the French buyer looks for a standard car, with enough space for the family and luggage. Anything too flashy won’t sell, but a car that strikes the right balance between individuality and maturity will. Buyers are attracted to the brand not only because of its heritage, but also because of its premium image. It also appeared that BMW buyers, through our own experiences, were getting the very best in-dealership experience, with salesmen walking customers through purchases with a strong interest in the brand behind them. Our facelifted 3-Series was undoubtedly a progression for the segment, pushing the standards of both quality and refinement just that little bit further. It truly is an excellent product, offering buyers a car that can be all things to all people. And we were more than happpy to board YA15OVD once again to make the 500-mile journey back to Blighty. [CD]

to an area reserved for special clients. French hospitality, it seemed, even in a car dealership, was excellent. Saying goodbye, we left with a better idea of what it was the French people wanted. They like luxury, certainly, but for it to be delivered in an understated way. Like Veljovic said about our car: ‘It’s muscly, but it’s just right for the family too.’ A BMW, it seems, cannot be too fancy in order to succeed in the French market. Our third and final destination, Montauban, was around half an hour’s drive away. Luckily, the 3-Series had settled into its new role of motorway cruiser with aplomb. With 188bhp available from its four-cylinder engine, overtaking was effortless. Power delivery was perfectly linear and suited the long, sweeping motorways that flow through central France. Stopping only briefly for coffee, the journey from Toulouse to Montauban was a breeze, with the ride from the 3-Series’ 19-inch alloy wheels surprisingly good. The adaptive suspension fitted to our car was left firmly in ‘comfort’ mode, it should be added. We’d chosen the dealership in Montauban because it offered a fitting middle-ground between the enormity of the Roland Pelras dealership and the much smaller one at Pau’s 58 | CarDealerMag.co.uk

COLOUR IS A PERSONAL THING We’d noticed throughout the journey that the colour of cars, both on the forecourts and the motorways, were pretty subdued, a point Proust acknowledged. ‘The most popular paint colours here are white, grey and black – but I think that’s the case for most of France,’ he said. ‘In Britain, I think that drivers choose brighter colours. The cars we have here are all quite dark and that’s the case across the country.’ Proust also mirrored what we’d been told back in Toulouse: ‘Customers prefer M-Sport cars, but with standard-sized wheels – nothing too big. ‘I’m more of an X5 person, though’, he

Rob is the 44 year old general manager of an independent used car dealership. On Monday morning, when he sat down at his laptop, he found he had received four highly qualified leads overnight showing named individuals and their contact details. These people had already been prequalified as eligible for finance for specific cars on his forecourt by at least one of Rob’s providers. Two came through after browsing the leading car portals over the weekend and the other two directly off his own website. Wouldn’t you like to be making your vehicles more affordable across all your digital channels, generating more leads and managing your finance all in one place, just like Rob?

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CarDealerMag.co.uk | 59

FEATURE. Lots of reasons to be cheerful as manufacturers set out their stalls

Bentley Bentayga

The long anticipated Bentayga made its debut at the recent Frankfurt Motor Show, following an online release. After the criticism levelled at the EXP 9 concept, Bentley received a warmer reception this time around. Using the new MLB platform, the Bentayga is powered by a 6.0L twin-turbo W12, producing 600bhp.

by DAVE BROWN @CarDealerDave

otor industry watchers could be forgiven for being in a state of pessimism right now. With the emissions scandal at the heart of one of the world’s largest car manufacturers, the automotive world finds itself occupying the front pages of the general press for a rare and unwelcome change. A swathe of new and forthcoming models is just the tonic then, to bring some enthusiasm through the dieselly fug. Jaguar and Bentley are leading the charge, with all-new premium SUV models, but many manufacturers are bringing new and improved versions of existing nameplates for 2016. With the majority of the Mini range already updated, the brand has taken the wraps off a new Clubman, while a new Sunderland-built Infiniti – the Q30 hatch – is a significant car for the UK too. Sister brand Nissan is also bringing along a battery update for its popular Leaf EV, which should help along zero-emission vehicle uptake. Fast saloon cars are always popular, so 2016 should be a good year with Audi’s S4 and the ‘Ring-conquering BMW M4 GTS hitting the dealers. Some manufacturers are replacing their most important cars for 2016 too, as Kia brings in a new Sportage and there’s a new Renault Megane – while Seat has revealed the ethos behind the latest Ibiza and signalled its intent to join the SUV set. All in all, the following pages provide a fascinating glimpse of what 2016 will bring. Enjoy!

Alfa Giulia

Alfa Romeo displayed the saloon which is intended to reverse the downward spiral that the brand finds itself in. The Giulia sent tongues wagging after Alfa unveiled the 503bhp Quadrifoglio range-topper in Milan last month, and other variants were shown for the first time recently, ahead of a mid-2016 release.

Future stars We highlight the 10 models that are getting us excited – from concepts to flagships via crossovers and hot, hot hatchbacks

KIA Exploring opportunities and looking to grow p66 60 | CarDealerMag.co.uk

Jaguar F Pace

Jaguar has finally revealed its much-anticipated SUV in full production trim. It is powered by a cluster of diesel and petrol engines, as well as a supercharged V6 range-topper. Similar to the Bentayga, the F Pace is a departure for the British carmaker, going on sale in early 2016 and rumoured to start at £30,000. Jaguar F Pace in detail– Page 62

MINI A true Brit – and one that’s been very well received so far p71

Bugatti Vision Gran Turismo concept

Bugatti unveiled its Vision Gran Turismo concept, which could provide a hint of what to expect from the Veyron’s imminent successor – the Chiron. Designed for the Gran Turismo videogame, the concept celebrated Bugatti’s glittering motorsport past, particularly the 1937/9 Le Mans victories in the Type 57.

Porsche Mission E Concept

This all-electric car is a first for the company, and has Tesla directly in its sights. The Mission E has 592bhp and a lightweight body comprised of aluminium, steel and carbon fibre-reinforced polymer. Even the wheels are made from carbon, with a 21 inch wheel at the front and 22 inches at the rear. Porsche are claiming a 0-62mph time of 3.5 seconds and the Mission E Concept will also feature four-wheel steering and Porsche’s own Torque Vectoring system.

Renault Megane

The fourth-generation Megane made its bow ahead of production at the end of the year. Borrowing the new design language made familiar by the Talisman, the hatch is initially offered in sporty GT Trim, more than hinting at a future RenaultSport variant, alongside the predicted Expression and Dynamique models.

Rolls Royce Dawn

Rolls Royce displayed its new drop-top ‘Gran Turismo’ which, while closely related, is not intended as a convertible Wraith. Instead, it is a stand alone model in its own right. Boasting typically class-leading cabin dynamics, the Dawn also contains 80 per cent new body panels, representing an evolution of Rolls’ distinctive design language.

Porsche 911 991.2 Lamborghini Huracan Spyder Lamborghini unveiled the Huracan’s roadster variant which kept the coupe’s 602bhp 5.2L V10, and commands a price of around £190,000. Pleasingly, the Spyder uses a folding soft-top roof, saving weight and arguably improving aesthetics, too.

This may appear like a standard, blink-and-you’dmiss-it facelift, but Porsche has gone about one of the most revolutionary changes in 911’s lineage. Boasting a 3.0L turbocharged flat six, the new Carrera may upset the purists but it drastically improves efficiency, as well as blasting to 62mph two-tenths faster than before.

Ferrari 488 Spider

The drop-top variant of the sensational 488 GTB made its debut in Frankfurt, following an online release in July. Despite the folding hardtop, the spider is only 50kg heavier than the GTB, resulting in an identical 0-62mph time of 3.0sec. Prices have not yet been revealed, although we can expect a premium of at least £20,000 over the coupe.

INFINITI UK playing a pivotal role as Q30 arrival approaches p77

AUDI e-tron quattro SUV concept is a major talking point p78 CarDealerMag.co.uk | 61

FEATURE.

In detail: Jaguar F-Pace JAGUAR: It’s the SUV even Jaguar never thought they would produce. So, has this long-awaited crossover model come with the attention to detail customers will expect?

aguar has finally taken the wraps off its long-awaited SUV contender, the F-Pace. By breaking a world record loopthe-loop the night before the Frankfurt Motor Show, the British manufacturer took the wraps off its most important car for decades in typical, big-budget JLR fashion. The stunt, rumoured to have cost £1.5m, saw driver Terry Grant pull off the huge loop in front of hundreds of VIP guests. But while that may have grabbed the attention of the social media generation, and the headlines from the Germans in their own backyard, it was the car’s details that we were really interested in.

Kitted out:

Blind spot detection, closing vehicle alert, lane assist, traffic signal recognition are all standard, as is a forward-facing camera that can spot pedestrians in places drivers can’t. Occupants can even connect up to eight devices to the car’s WiFi network on the go.

Design decisions:

Jaguar’s director of design, Ian Callum, said he ‘never dreamed we’d do a crossover SUV’ and that the only reason they did was because customers wanted one. Callum said he was pleased with the short overhangs, the integration of the Jaguar grille and the bonnet bulge. ‘The F-Type has been the inspiration in so many ways,’ he added.

Interior advances:

The inside of the F-Pace is a whole new world for Jaguar. A 10-inch touchscreen with a new user interface looks and works brilliantly, while there’s a 100GB SSD hard drive for owners to store music and video, four USB ports and four 12V sockets.

62 | CarDealerMag.co.uk

Digital display:

A 12.3-inch digital display sits where the clocks should be. They are represented digitally but all can be changed to display a full-screen map for the sat nav. Twitter and Spotify are fully intergrated, while users can use apps to pre-heat and cool the car, locate it and they even work on your Apple watch.

All change:

2015 has been a year of change for Jaguar. The AWD F-Type has arrived, alongside the BMW 3 Series-challenging XE, a new XF and now the firm’s first ever crossover, the F-Pace.

All terrain:

Borrowing tech from its Land Rover siblings, the F-Pace features a clever four-wheel drive system that seamlessly switches between ice, snow/very wet, sand/deep snow, seamlessly. This may be a crossover, but it’ll still be capable off road.

Porsche beater?

Jaguar referenced the Porsche Macan no less than 10 times in its press presentation – so it’s clear who the brand is targeting. The F-Pace will cost £34,170 when it arrives, which prices it ‘at the heart of the medium SV market and makes it better value than a Macan,’ says Jaguar.

Starter’s orders:

Customers desperate to be the first to own an F-Pace will be offered a special First Edition. Priced at a whopping £65,275, just 2,000 will be offered worldwide with only 200 coming to the UK. They can have it in any colour they like as long as that’s blue.

Material matters:

There is more aluminium in the car than any other in its sector – some 80 per cent, with a third of that from recycled sources. 70 new robots have been installed at Jaguar’s Solihull plant to make the F-Pace, with £120m invested in the project overall.

Pulling power:

A supercharged 380bhp 3.0-litre V6 petrol will see the Jag hit 60mph in 5.3 seconds, while the 300bhp 3.0-litre V6 diesel has a whopping 700Nm.

Watch this:

Sporty types can use a wristwatch-style waterproof key for times they don’t want to take the original with them. Drivers lock the car by tapping the ‘Activity Key’ against the ‘J’ on the boot. It uses RFID technology and is waterproof to 20 metres. CarDealerMag.co.uk | 63

FEATURE.

Interview: Jeremy Hicks JAGUAR: The MD of Jaguar Land Rover has plenty of reasons to be cheerful in what he describes as a sustainable sector. And, he tells Car Dealer, the new F-Pace could be Jaguar’s ‘Evoque moment’ How big will F-Pace be for Jaguar? Who knows? It’s always very difficult to gauge reaction, but I’ll go back to Evoque. For us, that was a pivotal car for Land Rover, and F-Pace is similar. Don’t get me wrong, XE is important too. XE is doing really well in the market, but F-Pace is pivotal. Will it become your best selling car? We’re being really sensible with our plans for the car, actually, really sensible. We’ve got one half of our family, Land Rover, that is rooted and has absolute expertise in SUVs. The F-Pace is a crossover, but we need to be mindful it’s in the same vein. It’s a first foray for us, and we’re really being sensible with our planning volumes.

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Are you going to be able to match supply and demand with this car? I don’t know, let’s see – it’s too early to tell. It’s very easy to get carried away. We have a very rigorous process of demand-planning with a monthly review. We sit down and look at hard inquiries from customers – customers who have actually configured a car – and we also take into account the customers who have asked us to keep them informed. We use this as a way of gauging demand. For F-Pace we had 15,000 people ask to be kept informed on the day we announced it… When was that? That was back in January, when we announced it, and since then it’s been trickling through.

We know how KMIs trickle in for configuration, which trickle into a demo request, that then convert into a sale. We’ll look at that and analyse it. That’s the best way of doing it, rather than put a wet finger in the air, because with a wet finger in the air you are always going to be wrong. Do you think this feels like Jaguar’s ‘Evoque moment’? I joined Jaguar Land Rover (from Audi) at the time of Evoque, and it feels like the Evoque moment indeed. It just feels exactly the same, in terms of the sentiment – and we fixed that in terms of a supply point of view. I’d much rather be in an environment where we launch a car into the market place and we’re being pushed,

than being in another place where we’re sucking our teeth.

about managing growth, you’ve got to look at where you are.

What worries you the most? Managing growth. It takes up more energy than anything else. And then managing the capacity in the retailers, keeping them informed and in touch with everything that’s going on, motivated and engaged – that’s a continual job.

So does that mean you think premium is where the growth will be? Yeah. We’ve seen no let up in inquiries, or confidence. XE is just coming to the market, and we’ve seen a fantastic growth with that. So the point I would make is if I track our performance with JLR over the last four years, it’s embedded in retail. We’ve got an enviable retail position.

Do you think the growth in the market is sustainable? Ours is. And I can only speak for ours. Others have said they’re concerned about their sectors and, to be honest, I don’t spend any time looking at those sectors, because that’s the other thing

Does a possible interest rate rises worry you? Of course it does. It depends when and how much, because it’s going to affect everyone in the same way. The general view is we’re going to see

very small steps of interest rate rises. Even though most people now finance a car, still the biggest debt is the house, and I think that is where people are going to potentially feel it more. We have been predicting interest rate increases for the last two years, but it hasn’t come to pass. What is your message to dealers right now? You can’t ever forget that there’s a customer and without them there is no business. People and capacity are important – make sure we are scaled up to cope – and pay attention to presentation standards. It is important that we make sure we present ourselves consistently right across the whole of the UK.

“

It’s a first foray for us, and we’re really being sensible with our planning volumes CarDealerMag.co.uk | 65

FEATURE.

Exploring opportunities and looking for growth KIA: UK president Paul Philpott talks to JAMES BAGGOTT about the new Sportage, his take on the current car market and what his dealers need to be focused on next You’re unveiling the new Sportage here at Frankfurt – is this new model good enough to continue rising sales? Absolutely. The model’s been on sale now for five-and-a-half years, and this year we’ll sell more than 22,000, maybe 22,500. However, the new model addresses some of its weaknesses. If you stick the new design against the current one you will see it ages the existing model quickly. Are you planning on increasing sales with the new Sportage? We are looking to grow sales next year by around five per cent on this model. I think Sportage has been absolutely right for the brand, but as we bring out new products, we’re seeing sales growth. New Sorento has been on sale since April 1 and sales in its first five-and-a-half months are up 60 per cent on last year. New products will help continue the growth we’re seeing at the moment as we aim to get to 100,000 sales by 2020. Where will that growth come from? As we replace each new model they will all play a part. For example, Optima has been selling between 800 and 1,000 units a year with a 1.7 sedan, but by this time next year we’ll also have the wagon derivative and a high-performance GT – both will have broadened the range widely. Just how tough is the market out there? I think this year has been an interesting one. First half we beat all our targets with record sales, then July and August we found things quite

66 | CarDealerMag.co.uk

challenging, particularly on small cars. The A retail segment is down by something like 16 per cent – we’re only down about 13 or 14 per cent – but it’s the small-car segment that’s been hit hardest. Why is that? Well, they are true retail buyers. We improved our offers on B-segment cars as well and I guess that is squeezing some of the A-segment demand. We enhanced our finance offers from August 1 and we’ve seen a clear uptake in orders and we’ll hit our targets in September. I think it’s a very price-sensitive market now and customers want good offers. Are you concerned about the car market? If I look at the size of the new car market, we could get to 2.6m this year. That would probably be the second biggest new car market on record. But it’s very competitive out there and I think consumers like a great offer, and they’ll be demanding a great offer, so we’ve got to make sure that all of our product range is competitive. In the end, though, new product is what drives momentum of the franchise. But how much of that is forced? I think it is very, very difficult to say. Ultimately, customers are buying all the cars that are

registered. It’s what process they go through, depending on their franchise. We take our cars to market with an offering and we sell them to enthusiastic customers, whether that be fleet or retail customers, and we’re sticking to our strategy. But how much is real demand? I don’t honestly know. What sector do you think Kia needs to conquer next? Sectors like the D-segment, where we’ve been a small player with wagon and a larger engine offering. We’ve got the opportunity for growth in that segment. You then look at those areas that we’re not in and where are we not so strong – B, SUV, sports car? These are opportunities. How are your dealers performing in terms of return investment? For the first half of the year they were at 1.7 per cent return on sales. That was down slightly on last year and part of that is model ageing as we make the best margins in the early years. Our warranty parc, because of our seven-year warranty, will be the fourth largest in the UK this year. So, one of the areas we’re working on with dealers is their service capacity, because they can’t survive with 10 or 12-day lead times because they’ll lose the work to independents. They’ve got to be ready for growth.

Quality is no barrier to the younger driver SEAT: Staying accessible to all in a broad market is the aim, as carmaker sets out to ‘Leonise the Ibiza’ with hatchback

he Frankfurt International Motor Show doesn’t keep many secrets, and it’s not surprising to hear that the industry’s leading manufacturers are set on raising the bar when it comes to quality. While carmakers strive to reduce CO2 emissions and increase fuel economy, they’re also set on pushing their brands further into ‘premium’ territory. But are they missing a trick? Improving the quality and adding more tech inevitably raises the price tag, leaving little or no opportunity for young drivers to take advantage of modern-day motoring. However, according to the UK director of Seat, a car can be ‘premium’ while still remaining accessible to all buyers. ‘A younger buyer base doesn’t necessarily mean a cheaper car,’ Richard Harrison told Car Dealer. ‘Seat has always been a brand that appeals to the younger driver and we’re proud of that – a Seat customer is eight to 10 years younger than the average buyer. ‘But just because we’re satisfying a lower target audience, it doesn’t mean we don’t offer the refinement and build quality that appeals to our senior buyers.’ He added: ‘When we think of quality, we tend to think of materials. But a car can be rich

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

in technology, strong in design and tick all the right boxes in terms of performance and driver engagement.’ Following the launch of the new Leon hatch and estate models, Seat proved once again that it can hit the mark in terms of design, connectivity and appeal for a broad target market. The new Leon has helped the brand to retain its strong mix of male and female buyers, while also helping to secure more female interest. Seat believes the forthcoming launch of the new Ibiza will further strengthen these facts, after ‘Leonising’ the new sporty hatchback. ‘The outgoing Ibiza continues to achieve a 50/50 split between male and female buyers, and the new Leon has also managed to secure sales with a significant number of female buyers, unlike the previous model,’ Harrison explained. ‘The new Leon really changed the brand and it’s time for the new Ibiza to be reborn – our aim is to what we call ‘‘Leonise the Ibiza’’.’ He added: ‘The younger buyer is also the modern buyer, and our aim is to keep them

connected to the worldwide web while they’re on the go, in a safe and friendly way.’ To ensure the brand keeps ‘connected’ to its buyers, and to coincide with the launch of the allnew Ibiza in November, Seat is also rolling out its new corporate identity. ‘Eight of our UK dealers now showcase the new corporate identity,’ Harrison explained. ‘By the end of the year this figure should reach 30, with all showrooms converted by the end of 2016.’ As more carmakers dive into building versatile, high-riding movers, Seat’s set on entering the ever-growing SUV segment and this week lifted the sheet on the Leon Cross Sport (pictured top), which is based on the Cupra 290 and follows the 20V20 concept previewed at Geneva in April. ‘The SUV segment has seen growth of up to 70 per cent, and the Cross Sport, along with the 20V20, is a glimpse at what we can achieve and offer in this segment,’ said Harrison. ‘At Seat, we are great at covering the market where we have cars – give us a car in this segment and we’ll sell it.’ CarDealerMag.co.uk | 67

FEATURE.

New Mégane will make our dealerships busier RENAULT: More than just check it out online, we want customers to really experience the new car, says UK MD

he new Renault Mégane will persuade car buyers to visit the brand’s dealerships more frequently in future – because they’ll be keen to experience the car’s wide range of features for themselves, not just check them out online. That’s the hope of Ken Ramirez, the managing director of Renault in the UK, talking exclusively to Car Dealer at the Frankfurt Motor Show. Ramirez has high hopes for the latest incarnation of its hugely popular Mégane, which he described as an excellent evolution of the vehicle. He said: ‘If you look at it from a content perspective it’s revolutionary. In the segment it’s adding features that no-one else has. We’re making quite a stretch for the brand, going into areas that no one else has in the segment. ‘It will have a significant effect on dealers because these days a lot of the customer journey is online, but for customers to experience all those features they will need to visit a dealer. If we do it right, it will attract more footfall to the dealer than before.’ All-new Mégane – the fourth version – comes 20 years after the launch of the original model, which has sold more than 6.5 million units worldwide. The car is based on Renault’s Common Module Family (CMF) vehicle architecture, which makes it possible to offer high-tech features normally associated with higher segments. The segment-firsts Ramirez mentioned

68 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

include a full colour head-up display, a seven-inch colour TFT instrument display, a portrait-format 8.7-inch touchscreen and fourwheel steering for the GT. The six engines that will be available at launch have power outputs ranging from 90 to 205hp, with fuel consumption and CO2 emissions as low as 85.6mpg and 86g/km for the Energy dCi 110. The car will go on sale in the UK next year, along with a GT version. Before then, dealers will be making the most of the arrival of the Kadjar crossover and, of course, continuing to take advantage of the opportunities presented by the Dacia brand. Looking back to Dacia’s introduction into the UK, Ramirez said: ‘The timing was very good. We launched it at the same time as we renewed the Renault line-up so it didn’t take away from Renault – both grew at the same time.’ In some cases, Dacia sales have been so strong that dealers have established separate facilities to handle the brand, he added.

We planned our rapid bounceback REWIND a few years and Renault was a brand in trouble, reducing the size of its dealer network and deleting a number of cars from its range. Asked if it was fair to say that the French manufacturer had ‘bounced back’, Ramirez replied: ‘Yes, exactly. ‘We planned it by signing a five-year plan with our dealer network and declaring a strategy for growth. It was a journey we had to go on together. ‘By the end of this year we will have nearly tripled our sales when compared to 2012. It’s a huge step up. Our dealer network has the second highest throughput per site in the UK. Only Volkswagen has higher sales per site than us. We have undergone a huge evolution.’ Along with its progress on the sales front, Renault has been busy expanding its UK dealer network too – heading towards 165 outlets from around 150 at the start of 2015. ‘We’re growing cautiously to maintain the value of the franchise,’ said Ramirez. ‘We’re growing with key partners that we’ve always had very good relationships with, such as Vertu, Arnold Clark and Lookers. And we are attracting good investors, too – these are indicators that our franchise value is perceived very highly.’

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FEATURE.

So.. you’d like a Qashqai? What about a Leaf? NISSAN: Geeks and greens used to head the queue for Nissan’s pioneering EV but its appeal is broader now . . .

he days when ownership of electric cars was restricted to ‘green eco-warriors’ are well and truly behind us, according to Nissan marketing director Chris Marsh. And a new, beefed-up Nissan Leaf, featuring a new 30kW battery that increases the car’s range from 124 miles to 155 miles, will help to broaden their appeal still further, he says. Available on Leaf Acenta and Tekna trim grades, the new battery is the same size as the existing 24kW unit with a modest 21kg increase in weight. The Leaf is the UK’s best-selling pure EV by a country mile, and more and more people are being attracted to the economic and environmental benefits of owning one. Speaking exclusively to Car Dealer, Marsh said: ‘There’s been a massive change in the marketplace and an increase in familiarisation with EV and the infrastructure around it. ‘You’re also seeing, alongside us, a lot of new market entrants coming in. That’s a great thing 70 | CarDealerMag.co.uk

Nissan tightens its Gripz on segment CROSSOVER pioneer Nissan revealed a new concept car at Frankfurt which points to an interesting new future for the marque. Conceived by designers in Europe and Japan, the Nissan Gripz blends the ability and practicality of a compact crossover with the excitement and performance of a sports car. Infused with an exciting and adventurous feel, thanks to its radical design and advanced powertrain concept - theNissan Gripz Concept is Nissan’s next move as a game changer, and is a glimpse of how a future compact crossover from the pioneer of the segment might look.

by DAVE BROWN @CarDealerDave because as that happens consumers increasingly see electric cars as something which is normal.’ There’s no doubt that dealers too have been on a pretty big learning curve with regard to Leaf. Nissan Motor (GB) managing director James Wright told us: ‘It was quite tough to begin with but I think everybody’s on board with it now. ‘Once the dealers understood they could sell it, they started to sell it. In the early days, dealers were meeting people who knew far more about the car than they did. These days people are interested in how much it’s going to cost them to run it and how it works in real life.’ Also looking back to those early days, Marsh added: ‘We knew there would be those who, from a green perspective, would want the car, but we underestimated the interest from those with an engineering and technology background who wanted to understand how the vehicle worked.

‘We’re through that now, we’re five years down the line. The dealer knows now that if someone comes in and they’re maybe thinking about buying a Qashqai, they should talk to them about a Leaf. It’s not so different and I think that was quite a big mental jump for a number of dealers, that you don’t treat a potential Qashqai deal and a Leaf deal as two separate strata of opportunity.’ Sales of the model year 2016 Nissan Leaf 30kW will begin in the UK in December. Priced from £24,490 for the Acenta trim, the Leaf 30kW will be available for just £1,600 more than the equivalent Leaf with a 24kW battery.

The moment I knew Clubman was a true Brit MINI: How the brains behind marque’s first entry into the premium compact segment impressed his toughest crowd

s project manager for the new Mini Clubman, Dr Ernst Fricke headed up a talented and highly qualified team of designers, engineers and other product specialists. Getting the car to the stage where it was ready to be built was, not surprisingly, a long, complicated and hugely involved process. It was when the first cars were rolling off the production lines at Mini’s Oxford factory that Fricke knew he and his team had succeeded in their mission. Speaking exclusively to Car Dealer at Frankfurt, Fricke said: ‘When we came to the plant to build the first cars, the associates on the shop floor came to me and said, ‘‘I love it!’’ ‘And these were people who had been building the three-door version for generations. I was pleased because the people who might have given me the toughest test in terms of acceptance said

by DAVE BROWN @CarDealerDave

they loved it. I could tell they had the passion to bring it to a perfect launch.’ Of course, Mini is a beautiful British brand now owned by BMW, and Fricke added: ‘If I ever had a doubt over whether new Clubman was British enough or not, it was at that point that I realised that it was a British Mini and that we had managed to keep it true to its roots. ‘That’s also why we decided to make it at Oxford. We had the smaller three-door Mini on one line and we are building the Clubman on the same line, in fact. Cars from two different sectors are normally on different lines.’ The point Fricke makes is an interesting one because Mini’s new Clubman marks the brand’s

A few of Fricke’s favourite things ASKED to identify his favourite feature of the new Mini Clubman, Ernst Fricke is in no doubt what to go for: the car’s clever anti-theft system, and the blinking light on the rooftop shark fin that lets you know that it’s switched on. The light also acts as a helpful location device in the event of absent-mindedness in a big car park. Secondly, he mentions the fact that the Mini logo is projected onto the ground floor from the exterior mirror on the driver’s side when the door is opened and closed. And thirdly? ‘Well, I wouldn’t describe it as a feature but I like the handling very much.’ first foray into the competitive premium compact segment – and company bosses clearly have high hopes for its success. The car is the largest member of the new Mini generation, as the brand seeks to position itself further upmarket. It is 27 centimetres longer and nine centimetres wider than the Mini five-door, and its wheelbase is 10 centimetres longer. It scores highly in the practicality stakes with a luggage compartment boasting a volume of 360 litres, which can be extended to as much as 1,250 litres by folding down the rear backrest with its optional 40:20:40 split. The company say it offers the highest levels of everyday practicality, refinement over long distances, versatility and comfort ever seen in a Mini. Clubman also offers several features that appear in a Mini for the first time. These include an electric parking brake, eight-speed Steptronic gearbox – available as an option depending on the model – electrical seat adjustment and the option of ‘Mini Yours’ interior styles with backlit door bezels. And despite the fact it’s been supersized, its small-car credentials have been retained. Fricke told us: ‘It has to look like a Mini and it has to drive like a Mini. ‘If it looked like a Mini but didn’t feel like a Mini, we’d be doomed.’ The car launches nationwide in the UK on October 31. CarDealerMag.co.uk | 71

FEATURE.

Skoda goes crossover crazy with new SUV SKODA: Superb leads the way as Czech brand gets itself back in the game with a ‘human touch’

emand for Skoda’s sturdy new Superb is rocketing and, with the second-generation Yeti due to hit the market in 2018 and an all-new coupe SUV expected before then, Skoda UK MD Alasdair Stewart says the brand is officially ‘back in the game’. Launched earlier this year, the new Superb is bigger, wider and more appealing than ever before. It’s also lighter, weighing in at 75kg less than its predecessor, and it’s £500 cheaper, with a £18,500 starting price for the hatchback. In the UK, the brand has already racked up a 12-week order bank for the new Superb, while achieving a healthy split between the two models, with demand reaching 65 per cent for the estate and 45 per cent for the hatch. ‘2015 marked a new era for the brand,’ said Stewart. ‘The Superb has been the hit we expected it be, but it’s certainly reaching beyond our expectations in terms of demand – and by the end of the year we’re expecting to hit a total of 80,000 sales in the UK, with a large proportion of those sales coming from Octavia, Fabia and Superb. ‘We’re not trying to be premium, but we aim to provide our customers with more for their money by adding, what we call, a human touch. This is 72 | CarDealerMag.co.uk

by SOPHIE WILLIAMSONSTOTHERT

another Jozef Kaban design, meaning the Superb follows in the footsteps of the Fabia and Octavia, showcasing our latest styling traits and design language.’ As 2015 draws to a close, the focus shifts to the rapidly expanding SUV segment. The Czech brand has revealed further plans for its mainstream Yeti and a wave of SUV crossovers, which Skoda will launch in a bid to catch up with the likes of Nissan, BMW and Citroen. Alongside a restyled Yeti, these new people movers are expected to come in the form of a Tiguan-based crossover, an X4-rivalling coupe SUV and small utility vehicle designed to take on Nissan’s Juke. ‘Looking forward, our focus is on refreshing and extending the range,’ said Stewart. ‘The new Yeti is on its way and a new SUV should be with us by the end of 2016, marking yet another milestone for the brand,’ said Stewart. ‘The SUV sector continues to expand and, in all honesty, we are a little behind in this segment – but I have no doubt that we’ll catch up quickly.’ The Yeti’s controversial design caused quite

a stir amongst the press and buyers alike when it was first launched back in 2010, even after a traditional face-lift in 2012, but that didn’t prevent it from helping the brand achieve record sales. But the new model isn’t expected to suffer the same fate, sharing more characteristics with the Volkswagen Tiguan and the rest of the Skoda line-up. According to Skoda, the new Yeti, and the first of the brand’s new SUVs – destined to be a sevenseater based on the MQB platform – which could arrive in the form of a plug-in hybrid, will help push those record sales even higher, with an aim to reach 1.5 million in the next five years. With an 80 per cent increase in UK sales coming from the SUV sector alone, Skoda’s future product line-up is likely to help the brand to another record-breaking sales score.

A game-changing year for loyal dealers HONDA: Japanese marque has bounced back in style with the newest model line-up in the UK market

or the Japanese carmaker, the past few years have been memorable for all the wrong reasons. But, thanks to a network of loyal dealers, the firm’s UK MD tells Car Dealer that 2015 has been the gamechanging year Honda was desperately longing for. Prepped with a fresh Jazz, an all-new HR-V, the recently launched Civic Type-R, above, and the new Active Tourer on its way, Honda has bounced back, giving its dealers something to shout about. In what looks to be a new era for the brand, Phillip Crossman promises them there is still plenty to look forward to. ‘Five months ago, we had the oldest model line-up in the market. Now we have the newest,’ he explained at the Frankfurt International Motor Show. ‘It’s true, we still have a few more big steps to take, but 2015 has shaped up to be the gamechanging year we expected it to be, setting the pace for what’s to come.’ At a time when Honda appeared to have lost its way, the dealers didn’t lose hope. Instead, the network held faith in the product range and helped to retain the 71 per cent of returning, loyal customers, of which Crossman says the brand is very proud. ‘Our dealer commitment is what has kept Honda going,’ he said. ‘They’ve stood by the brand and they’re loyal to us. The Tourer, the new Type-R and even

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

the Jazz have been extremely important cars this year. We launched the Tourer in 2014 and it’s already achieved a 14 per cent market share in its segment. Similarly, the Type-R hasn’t arrived yet and we’ve already sold out until January, with 800 units.’ With the brand looking to be back in the game, it’s crucial that Honda keeps its focus on satisfying and reaching out to an ever-evolving buyer base, which Crossman explained is helped by an attractive PCP offer and improved residual values. ‘We understand that it’s not just about the product we have to offer, it’s about customer satisfaction and loyalty,’ he said. ‘As the times change, so does the process of buying a car. Customers are online and they’re doing their homework. But customer engagement is still

a crucial part of the process. That’s why we’re running the Type-R Road Show, which puts our brand and our experts in front of the buyers.’ He added: ‘People didn’t understand how PCP would work for Honda and we admit it was very poor. But, this year, we’ve proved that it can work – our PCP market penetration is at 80 per cent and our residual values are better than ever.’ As the industry continues its quest to reduce its carbon footprint by 2020, Crossman has confirmed that Honda still sees hydrogen fuel cells as the way forward, but there is a possibility that the firm’s hybrid-powered Jazz, currently on sale in Japan, could arrive in the UK. ‘Will we bring the hybrid Jazz to the UK? I’d certainly like to think so,’ he said. ‘It’s big in Japan and, looking at how the market is evolving here in the UK, we’re sure it’d fit. Alternative fuel is still posing a big question for manufacturers – is hybrid or electric power the way forward? Even now, the internal combustion engine is becoming cleaner than ever – as we downsize our engines, the more efficient they become.’ He added: ‘For Honda, our end game is still focused on hydrogen fuel cell. It won’t be long until hydrogen can be generated at petrol stations, and that’s when we’ll be ready to pounce.’

CarDealerMag.co.uk | 73

FEATURE.

More and more M people make it a great year BMW: UK drivers love cars with a sporty slant... and their preferences are helping drive BMW to new sales heights

ports-oriented design, power with efficiency and precise driving dynamics are the hallmarks BMW claims for its high-performance M Division. And the latest incarnation of this approach would seem to tick all three boxes. The German manufacturer’s new car is the awesome M4 GTS – and, quite simply, it is the fastest production road car the brand has ever offered to customers. Developed and tested extensively at the Nürburgring, it has recorded a lap time of 7mins 28 secs – almost 30 seconds quicker than a standard M4. There will be a limited production run of 700 cars, with 30 coming to the UK. On sale from March 2016, it will be priced at £120,770 on the road. Under the bonnet is an enhanced version of BMW’s 3.0-litre six-cylinder twin-turbo petrol engine, tuned to deliver 500hp. The result is a car which accelerates from zero to 62mph in only 3.8 seconds, and has a top 74 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

speed limited to 190mph. However, the car still delivers 34mpg on the combined cycle. With a kerb weight of only 1,510kg, it has been engineered to provide an authentic motorsport-derived driving experience, and although designed primarily for track use, it meets all global regulations for public roads. Its launch comes at a time when BMW’s M Division is flying high. After we admired a track version of the car at BMW’s stand at the Frankfurt, Motor Show, Dirk Hacker, vice president for engineering in the M Division, told

UK ‘shining light’ as sales increase THE proportion of BMW cars sold with the M badge is increasing at the moment, Car Dealer was told. Dirk Hacker told us: ‘The market is waiting for models, not only M models but also the M Performance models. We have big volume for the models we offer and we are looking forward to more success in the future. In general, the performance sector is growing worldwide.’ BMW’s sales figures are powering ahead – not just in the UK but right across Europe. The company is running 10.2 per cent ahead of last year’s figures across all European markets so far this year – with the UK described as the ‘shining light’. us: ‘We are sure we will have some success with this car because it offers a much higher level of performance. We think it’s the right answer for the demands of the market. ‘And we are very satisifed with the success of the M3 and the M4 after the first complete year. We have seen a lot of volume and a lot of numbers. We have increased last year, in comparison to the year before, about 44 per cent for the M cars. This year we are very happy to see that there is still good development and we are striving for a record year. The UK as a market is characterised by a very sporting preference, so if you look at the uptake of M Sport on even our conventional cars, it is among the highest in the world. The specification of vehicles in the UK has a sporty slant.’

CarDealerMag.co.uk | 75

FEATURE.

New stores give huge range room to breathe FORD: Blue Oval is moving away from sealing the deal, and focusing instead on promoting the product

ord is already the best-selling carmaker in the UK and, if its popular hatchback Fiesta were a brand in its own right, it would be the fifth bestselling firm in the world! In terms of sales performance, then, the British carmaker has nothing to worry about. So, when success is already at the heart of the brand, where does it go next? According to Ford UK MD Andy Barratt, the brand will focus on the areas it’s already well versed in. The small SUV segment continues to grow, with the likes of Skoda announcing plans to launch new contenders in order to keep up with the market leaders. Ford’s Kuga has a healthy order bank, while dealers continue to seal deals for the EcoSport. But it’s not just the

76 | CarDealerMag.co.uk

Power boost

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

SUVs that are attracting interest; anticipation is building as customers await Ford’s all-new, all-wheel-drive Focus RS. When it goes on sale in 2016, Ford says the 350bhp performance hatch, powered by a 2.3-litre EcoBoost unit, will sprint from 0-62mph in an impressive 4.7 seconds. ‘SUVs are currently the key growth area in the industry, and we’re more than comfortable with our products in this range,’ Barratt said. ‘In fact, our range has something for everyone.’ With so many options available, Barratt is confident that Ford’s dealers won’t have any trouble satisfying customers, especially with the installation of the brand’s new flagship Ford stores. ‘Our range is so vast, with a 20+

FORD has given its Focus ST a boost in power with a new performance upgrade for UK buyers. Much like the upgrade for the Focus ST’s baby brother – the 1.6-litre Fiesta ST – the kit from engine tuner Mountune increases the power output of the Ford ST’s 2.0-litre EcoBoost petrol engine from 247bhp to 271bhp. The kit costs £1195, which includes fitting. It takes two hours to fit and, when carried out by a Ford dealer, does not affect the vehicle warranty. The upgrade includes a large-capacity intercooler and air filter and a specially developed performance remap calibration. model line-up, dealers might worry that we’ll end up running out of space to fit examples of all of them in our showrooms,’ said Barratt. ‘That’s why we’ve launched our Ford Stores. ‘There will be 56 stores across the UK, meaning 85 per cent of the population will be within an hour of their closest outlet. Our customers can view the entire range, including the Transit, and this means that dealers will have a reason to call customers and get them into the showroom.’ He added: ‘The focus is moving away from making the deal and onto promoting the product.’

We need to build solid foundations BOSSES at Infiniti certainly have high hopes for their new baby, a car which they say defies categorisation with its rare shape and elevated stance. But asked about sales targets for the new Q30, the first UK deliveries of which take place early next year, Carl Bayliss was reluctant to be specific. He told us: ‘Internally, we have our expectations, but it’s much more about growing healthily and organically, making sure we have steady growth and making sure that we have the opportunity to continue our portfolio expansion – whether we’re talking about Q30 today or QX30, its sister product, a little bit later on.’ Bayliss himself has been heading up the UK arm of Infiniti’s operation for almost a year now. Has he enjoyed the past few months? ‘Yes, thoroughly. ‘Absolutely. There’s nothing quite like a new challenge every day.’

‘Q30 will help us reach all corners of the globe’ INFINITI: Exciting new model with great driving dynamics really is something to behold

mall but perfectly formed – that’s how the UK’s Infiniti network might best be described. But although modest in scale, the brand has plenty to look forward to at the moment. The reason, of course, is the imminent arrival of the British-built Q30, the manufacturer’s challenger car in the competitive C-segment. The phrase ‘game-changer’ is a rather over-used one in the car world but in the case of Q30 – described as ‘a new type of premium vehicle for a new type of customer’ – it would seem to be justified. We caught up with Carl Bayliss, Infiniti’s country manager for the UK, who told us: ‘The opportunities in the UK alone provided by the Q30 exist on so many levels. ‘We’ve spent £250 million in Sunderland and created 300 new jobs – and strengthened our relationships with Daimler and the RenaultNissan alliance. ‘Our development is sprouting from the UK and going to all corners of the globe really, so this car is really turning a corner for us.’

by DAVE BROWN @CarDealerDave

Asked what he admired most about new Q30, Bayliss told us: ‘Look at its outstanding design. ‘I could point to many characteristics but the striking design of the interior and exterior sets it apart from other available products out there at the moment. The C segment is a particularly strong segment globally, as well as within the UK. There is plenty of opportunity for choice for the customer and Infiniti is delivering a credible

alternative. The driving dynamics of the car are something to behold.’ We happened to be speaking to Bayliss on quite a significant day for Infiniti. He told us: ‘Our centre managers are in Sunderland today testdriving the car. The excitement is palpable at our centres across the UK. ‘Following the Q50, and the Q70 as well, we’re really developing momentum from the perspective of both private and business customers. Whenever that happens, dealers are always going to be on the front foot. ‘And where we have a nice, snug, petite dealer network of 10 centres strategically placed across the UK, our cars are garnering a lot of interest from our other investors into the brand so for us, that’s a positive step forward.’ With such a small network to utilise, it’s perhaps no surprise that Bayliss and his team place a lot of importance on Infiniti’s online presence. ‘This year, we launched a new web platform which took us to another level,’ he told us. CarDealerMag.co.uk | 77

FEATURE.

New S4 blends luxury with RS performance e-tron is sign of things to come

AUDI: Business is booming and new flagship saloon is hailed as most technologically advanced in its segment

t’s 50 years since Audi came to the UK. Back then, the German carmaker sold 32 cars in a year. Since then this has grown to two million. Between January and August this year, Audi sold 104,000 cars in the UK alone, and that’s not including September registrations. For Audi, business is booming, which is strengthened further by the unveiling of the performance flagship model of the best-selling A4 – the S4 (pictured below). Producing 349bhp, it boasts a 0-62mph time of 4.7 seconds, which means figures that could easily be associated with an RS model are now being delivered by the all-new Audi S4 and S4 Avant. Hitting dealerships in 2016, the new performance saloon combines the lightweight design and re-engineered platform of the latest A4 with a completely new turbocharged V6 TFSI engine, which replaces the A4 and S4 predecessors’ supercharged unit. ‘We have more than 20 years of expertise in developing our sporty S models,’ said Audi UK brand director Andre Konsbruck. ‘Our formula for success has been a combination of outstanding 78 | CarDealerMag.co.uk

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

quattro performance and state-of-the-art drive train and suspension technology. ‘The new S4 and S4 Avant models continue this tradition – they are the most technologically advanced vehicles in their segments.’ Looking forward, Audi appears to be placing its focus on the development of electric drivetrain technology with the e-tron quattro concept. ‘The e-tron quattro SUV is on its way and will arrive in production form in three years time,’ said Konsbruck. ‘Our expertise in the development of hybrid and electric vehicles goes from strength-to-strength and you will see more e-tron models in the near future. ‘We don’t believe this is the end of the internal combustion engine but e-tron is the future. ‘As alternative fuelpowered vehicles become more popular, our model line-up offers something for everyone.’ [CD]

ELECTRIC power isn’t new, but it’s still capturing the imaginations of carmakers worldwide, as they continue to eliminate range anxiety for their alternatively-powered cars. This year’s talking point at the Audi stand was the e-tron quattro SUV concept, left, which is set to hit production form in 2018. This car is the firm’s statement about the future of electric mobility: it’s responsive, efficient and suitable for everyday use. ‘Our battery technology has come on leaps and bounds over the past few years and we’re confident that we can build a userfriendly family vehicle that our customers won’t feel is going backwards in terms of convenience or performance,’ said UK brand director Andre Konsbruck. The e-tron quattro concept uses the power of three electric motors; one drives the front axle, while the two others act on the rear. Total output is 320 kW and the driver can combine this power with more than 800 Nm of torque, meaning it has the potential to perform like a sports car. From standstill the e-tron concept quattro can sprint from 0-62mph in 4.6 seconds and will reach an electronically governed top speed of 130mph. ‘The e-tron quattro concept is a platform for our first large-scale production electric car, which combines efficiency with luxury, without compromising performance and driver engagement,’ said Konsburck. ‘And there will be more to come.’

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FOCUS ON.

Contract Hire and Leasing

Offering dealers a fantastic CONTRACT HIRE AND LEASING

ore and more people are looking at car usage in a different way, and increasingly don’t want to own one. That’s the view of Mike Best, head of sales at ContractHireAndLeasing.com, the industry-leading car contract hire and vehicle leasing website. The only surprise, he says, is that most dealers have yet to realise that their potential customers are changing. ‘We are living in a direct debit society and more consumers than ever before want the latest products,’ said Best. ‘Take mobile phones. People expect to be able to upgrade them every couple of years at least, and that is what is happening with cars. Consumers want to drive the latest, best car they can afford; it doesn’t necessarily matter if they ‘‘own’’ the car in the traditional sense.’ In the US, around one in four cars are leased. Here in the UK, the overall figure is lower, but growing fast. And with 2.4 million personal and business deals online every month, ContractHireAndLeasing.com is leading the way. ‘There’s an already large market that’s growing but dealers are not taking it up and are missing out,’ says a perplexed Best from his Stockport base. ‘The question is, why are they not doing it? ‘It’s very simple and sounds a bit cheesy, but the reality is we can get them more leads and significantly increase their sales. The return on investment for the dealer is substantial.’ Since launch in 2000, ContractHireAndLeasing. com has grown rapidly and visitor numbers are up 95 per cent over the past three years (45 per cent year-on-year), with six million visits predicted for 2015. When online, prospective customers are able to filter thousands of available lease deals starting from a car’s make, model and any other specification through to the initial down-payment and length of monthly instalments. Once decided on a vehicle and lease deal, the customer can request a full quote by email or a call back. The lead details go directly to the dealership, which can immediately make a connection with the prospective buyer. ContractHireAndLeasing.com says surveys of its advertisers indicate an inquiry-to-sale conversion rate of around 35 per cent. A number of high-profile national dealer chains have already seen the light, with the likes of Inchcape, Sytner, Peter Vardy, Lookers and 80 | CarDealerMag.co.uk

W: ContractHireAndLeasing.com

Border Cars on the books. Out in the market, car leasing is familiar territory for many business car owners and fleet managers, but it is the ‘phenomenal’ growth in personal contract hire inquiries that is breaking new ground, says Best. With many motor manufacturers pushing the simplicity of a single monthly payment out in their advertising and marketing, the consumer market is increasingly being made aware of the virtues of leasing. Avoiding the financially sobering impact of instant depreciation the moment a new car leaves the showroom is only the most obvious benefit of the lease options. Monthly repayments (which are typically lower than car loan instalments) are a big feature, of course, but other factors include smaller initial upfront payments, and the ability to head off in a more upmarket car than a motorist could otherwise afford. In addition, at the end of the deal (which typically lasts two or three years) the driver simply returns the vehicle to the dealer and signs up for a new lease – an increasingly popular option. Taken together, its simplicity, transparency and value make leasing the ideal choice for more and more audiences. Best explains: ‘It’s a great product for dealers to be able to offer and it works for all kinds of people across the whole customer base and all age groups.’ By way of example, he cites stories from opposite ends of the customer lifetime. Once upon a time, retirement would see a big, one-off purchase of a new car that would see the owner to the end of his driving days. Now it is increasingly likely that the retiree will lease. ‘For the person retiring it means that they don’t have to take a large lump out of their capital, and can instead budget around a known, settled monthly payment,’ Best explains. ‘And rather than a single, final purchase, a lease is more likely to extend the customer lifetime for the dealer.’ By the same token, leasing is proving a popular option for those at the beginning of their motoring life. ‘Many students are coming out of university and going into their first jobs, and they are

finding that leasing is attractive and accessible,’ Best says. He admits that such customers are not likely to be in the market for high-end luxury models, but points out that entry-level wheels, say a Fiat 500, can be acquired for as little as £100 month under some of the lease deals available on ContractHireAndLeasing.com. Between these two groups are a range of potential customers who will be taking the leasing option so

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It’s a great product for dealers to be able to offer and it works for all kinds of people across the whole customer base and all age groups. Mike Best, head of sales at ContractHireAndLeasing.com

they can stay abreast of the ever-expanding technology and innovation available to the modern motorist. ‘Take someone who has bought a particular car because of its high mpg figures,’ says Best. ‘A year or two down the road, the manufacturer could bring out an upgraded variant with even better figures. ‘Leasing gives the customer an easy route to a hassle-free replacement and upgrade. People like to be able to keep up with progress. ‘It’s a huge group of people across all age groups, customers who appreciate the value of fixed-cost motoring,’ he adds. ‘At ContractHireAndLeasing.com we are not

brokers, we are not funders and we are not complicated. What we are is a place where dealers can get their offers out to their customers.’ Rather like some of their customers, dealers make a simple monthly payment to ContractHireAndLeasing.com and can put up to 15,000 deals online every month. Best concludes: ‘We will never have the knowledge on individual cars that dealers do, but we know leasing and we know how to put people in touch with dealers. ‘And for some, that will be for the whole life of the customer. It’s a fantastic opportunity.’ [CD] by Phil Riley (@PhilRiley5) CarDealerMag.co.uk | 81

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SELL CARS THE SMART WAY 82 | CarDealerMag.co.uk

FOCUS ON.

Lead generation

Leads, the vital lifeblood of any dealership Talk to the selected suppliers on the following pages, and you’ll find yourself with more hot prospects. by DAVE BROWN @CarDealerDave LEAD generation is at the core of any sales business and this month in Car Dealer we have been speaking to third-party lead generation companies about their strategies for bringing real customers in through dealership doors. Car Keys classifies lead generation as if it were internet dating, bringing together leads and dealers in much the same way as a matchmaking service – though with none of the flightiness. The company comments that ‘Car Keys leads are all qualified by our call centre, only sending the very best opportunities to our partners and saving the dealership’s salesperson those high volumes of calls that might be required from other lead sources.’ Of its dealer partners, Car Keys only requires that they call their leads within 12 hours. ‘Nobody likes to be kept waiting on a date!’ Meanwhile the RAC’s lead generation focuses on a strongly recognisable brand. Sean Kent, account director, tells us that ‘most dealers struggle to attract customers from beyond a radius of 20 miles or so but, with RAC BuySure, we regularly hear of people driving from one end of the country to another to see a dealer’. There are already 180 dealers on the RAC Approved Network and though it requires some additional work for dealers, the leads generated

are typically willing to pay more for a top-quality vehicle. Over at Motors.co.uk there’s a number of tools to help customers find the right car and connect them to the dealers that advertise them. Identifying a spike of traffic to car search websites between 6pm and 10pm, the company has created Night Owl, allowing customers to send a priority email to dealerships for contact the next morning. Managing director Phill Jones remarks: ‘By making this simple change we were able to increase out-of-hours leads by over 120 per cent. Even more impressively, around 15 per cent of Night Owl leads are from car buyers reserving the car!’ The strategy at AA Cars is all about flexibility. Paul Yates, the operations director, notes: ‘Any dealer with us at AA Cars can decide what they want to upload to a third party and there is no charge.’

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Matchmaking with lead generation CAR KEYS

W: carkeys.co.uk T: 07759 860972

t’s no surprise that dating sites took early advantage of the internet when it gained hold late last century; the ability to trawl hundreds of profiles, images, likes and dislikes anonymously and without pressure was always sure to be a hit. People could compare, contrast, dream… and if they wanted, make contact. It should also come as no surprise then that car buyers are increasingly moving online, researching their considered cars, hunting out the best deals and searching for the comfort that they are getting a great price. Buying a car is a big purchase, but the growing expectation from buyers is that they want comparisons and prices of vehicles online, before of course still closing the deal at the all-important dealership. That is where lead generation partners like Car Keys are invaluable, assisting a relationship to develop. Rather like an online dating agency, Car Keys helps put those with something to offer and those with a need together, simply and without stress. The dating website analogy can only go so far however; operating in the online automotive space is challenging, requiring a high-quality, easy-to-use and content-rich website. Users also increasingly expect a presence on social media such as Facebook and Twitter, and professionally-produced video content on YouTube. Unique and engaging content needs to be produced to feed these channels, requiring teams of experts writing news, guides and features, producing videos and posting on social media on a daily basis. For their part, Car Keys have spent many years building a content team and a comprehensive history/archive of written and video reviews achieving hundreds of thousands of views per

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Car Keys leads are all qualified by our call centre, only sending the very best opportunities to our partners.

month – a massive undertaking. And that’s before we even think about the online advertising that remains a crucial way of generating leads in the automotive space. Whether it’s Google AdWords, email ads, native advertising, or affiliate solution, a good lead generation partner will effectively employ all of these. So how does all of this help you sell more cars? Well, the Car Keys team have the experience, expertise and passion for working with the industry. They know how busy sales people in a dealership can be, managing everything from walk-ins off the street, the latest CSI scores to handing over people’s brand new cars. And they want to provide you with only the very best leads for in-market car buyers. In dating parlance, call it matchmaking. Car Keys leads are all qualified by the company’s call centre, only sending the very best opportunities to their partners and saving the salespeople those high volumes of calls that might be required for other lead sources. They are exclusive too – they only send each lead to one partner, so you won’t be competing against another dealership in the next town on the same car. Car Keys are, after all, in the relationship business. The consumer must confirm they are planning to place an order in no more than three months, and they only refer them once they’ve been presented

with the price you provided and have confirmed they would like to be contacted by you. It might all sound too good to be true, having a pre-arranged purchaser walk through the door like your perfect date, but with Car Keys it’s real. Many of their partners experience conversion rates of 15-25 per cent or more, which is no surprise when you take into account all the effort that goes into generating the lead, and then qualifying it to ensure only the best are referred. What commitment does Car Keys ask of its dealer partners? Competitive prices play a part, but it’s more that that. As the matchmaker, they want to provide a great service to the consumer too. On that basis they ask for all leads be called within 12 hours, and they have the statistics to show that if it’s quicker, the conversion rates go up. Nobody likes to be kept waiting on a date! Working as part of the industry, and particularly with their dealer partners, Car Keys is making a difference both for the consumer and for the partners they work with. In short, they make sure you’re right for each other. n If you would like to join the hundreds of your colleagues across the country working with Car Keys then please get in touch with the Matchmaker himself – head of Car Keys, Chris Smith – by email chris.smith@CarKeys.co.uk or phone on 07759 860972. (PS: He’s married!) CarDealerMag.co.uk | 85

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Lead generation

How the RAC brand can help RAC

Email: dealernetwork@rac.co.uk T: 0330 100 3807

n a highly competitive used car market, how do you differentiate yourself and create leads that have a high chance of converting into sales? More than 180 dealers across the country now do so by being part of the RAC Approved Network, which has already doubled in size this year. At its heart is RAC BuySure, a unique used car initiative that is designed to meet consumer expectations of the RAC brand. RAC head of dealer propositions Mario Dolcezza said: ‘RAC BuySure has been developed specifically to provide used car customers with a used car proposition, available nationally, that is open to all kinds of dealers and sets very high standards. ‘Being part of the scheme does mean additional work for dealers but they are rewarded with leads and customers who are prepared to pay a little more for a vehicle of this quality. Our research indicates additional unit chassis profits of £200-300 while there is also reduced pressure to discount.’ Dolcezza said that much care had gone into ensuring that only dealers who were willing to commit to representing the RAC brand with the appropriate level of enthusiasm for customer service had been recruited to the Approved Dealer Network. ‘Our policy has always been to allow only the right dealers to join the programme, those who share our commitment to delivering the very best customer experience. We have increasingly seen interest from businesses of this calibre over the past few months and would like to hear from more who believe they can meet our standards.’

ALL ABOUT RAC BUYSURE RAC BuySure sees dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a car data check, and a minimum of three months of RAC Warranty cover. In support of this, the RAC will provide 12 months’ RAC Roadside breakdown cover. 86 | CarDealerMag.co.uk

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RAC BuySure has made selling cars easier for us. Customers are coming from further afield because of the RAC brand, and they have confidence in the car they are purchasing. Anthony Betts

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The product offers customers a great level of cover to give them confidence in their purchase. Our affiliation with the RAC has certainly attracted customers to the dealership. Adam Newman

you generate leads MORE CUSTOMERS FROM A BIGGER FOOTPRINT ONE OF the advantages of being part of the RAC Approved Network is that the strength of the brand delivers customers from further afield. Sean Kent, account director, works with some of the largest dealers who are taking part in the RAC BuySure initiative and reported: ‘When a customer is browsing used cars online, having the RAC name next to the vehicle is a major selling point. Most dealers struggle to attract customers from beyond a radius of 20 miles or so but, with RAC BuySure, we regularly hear of people driving from one end of the country to another to see a dealer. They rightly believe that the RAC would only put its name to a used car programme of the highest quality and so are willing to travel hundreds of miles for the right car prepared to our standards. In a sense, RAC BuySure turns all of our dealers into national companies and, as long as you are buying stock that is attractive to customers, delivers leads that are very close to being customers.’

EIGHT MILLION MEMBERS AND ONE MILLION VISITORS MONTHLY A KEY advantage of becoming part of the RAC Approved Network is that it plugs you straight into the unrivalled marketing power of the RAC with its eight million members. For example, your dealership will be listed on the RAC website and route planner, which attracts more than a million visitors a month. You will also be given access to brand assets to maximise the impact of the RAC name. Approved Dealers also get prominent exposure on RAC Cars – the RAC’s free-toadvertise used car portal with more than a million pairs of eyes browsing every month.

For more information about joining the RAC Approved Dealer Network visit rac.co.uk/approved-dealer or email: dealernetwork@rac.co.uk

CarDealerMag.co.uk | 87

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Lead generation

Now you can be open, even MOTORS.CO.UK

W: media.motors.co.uk T: 0845 265 6001

oday, more than ever, car buyers have easy access to a vast array of information when researching their next vehicle purchase. But while the internet has empowered consumers with a wealth of resources available at their fingertips, it has also opened up new challenges for dealers who must respond to the change in pace. With change, though, comes opportunity. Motors.co.uk in particular has recognised the importance of providing its dealer customers with access to analytical data as part of its advertising packages, not only with regard to clearly showing the sales leads that have been generated through tools such as ‘The Eye’, but also by giving an insight into how prospective car buyers interact with a dealer’s stock online. With a clear view on the journey consumers take from click to car before ever stepping foot on the forecourt, dealers can utilise this intelligence by taking steps to ensure stock is presented correctly and sales leads are handled in line with customer expectations, building strong customer relationships at the start of the purchase cycle. Knowing exactly what buyers are looking for in terms of make, model, trim and equipment can be the difference between making a sale and a customer leaving the dealership empty-handed.

THE MARGINAL GAINS MINDSET The team at Motors.co.uk are strong believers in the aggregation of marginal gains – ‘not doing one thing 100 per cent better, but doing 100 things one per cent better’ – practising what they preach on their own site, with a strong focus on product innovation to ensure consumers find the right car easily and connecting them in ever more intelligent ways to the dealers advertising the car. They have created seriously forwardthinking services that recognise and meet the needs and expectations of the modern-day consumer and dealer – and that’s absolutely essential in this fast-moving world. Here’s how Motors.co.uk has risen confidently to the challenges of the 21st Century marketplace . . . Being open when you’re closed may seem like a contradiction in terms, but that’s essentially what Night Owl achieves for dealerships. This 88 | CarDealerMag.co.uk

service lets consumers send a ‘priority email’ to dealerships about a specific car when the showroom is shut, which means the dealer can talk directly to a potential customer first thing in the morning. Managing director Phill Jones sees Night Owl as an excellent tool for consumers and dealers alike. ‘The sweet spot for us is where we can identify a consumer and a dealer need,’ he said. ‘Night Owl is the perfect example of this. With an evening spike of visitors to car search sites, it has previously been difficult for dealers to convert these valuable leads into sales due to simply being closed. ‘However, Night Owl opens up communication channels between dealer and consumer during the peak activity hours of 6pm and 10pm by providing consumers with a quick, easy and convenient method of contact, along with an early morning list of potential leads for dealers. ‘By making this simple change we were able to increase out-of-hours leads by over 120 per cent. Even more impressively, around 15 per cent of Night Owl leads are from car buyers reserving the car!’ By anyone’s standards then, Night Owl is a massive asset just on its own, but Motors.co.uk goes even further . . . Uppermost in the minds of customers looking to part-ex their vehicle is its value. And that’s where Motors.co.uk’s ‘What’s Mine Worth?’ service comes in. It’s another perfect example of aligning consumer and dealer interests. It lets drivers not only find out their car’s value but – crucially – also find a local dealer to trade with or advertise themselves for free on Motors.co.uk. By bringing together all of these options in one place, Motors.co.uk believes it not only provides a strong element of consumer choice but it also helps connect local sellers with their local dealer.

GETTING THE MOST FROM ONLINE ADVERTISING Motors.co.uk knows the importance of getting the most from online advertising, and how even simple changes can help dealers capitalise on their digital presence. This means ensuring that they stand out from the crowd in a busy marketplace, where more than 700m pages are viewed on car search sites per month and each page is viewed for an average

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The sweet spot for us is where we can identify a consumer and a dealer need. of just 39 seconds. It’s all a stark indication that competition is just as fierce on screen as it is on dealership forecourts. Small amendments such as adding more quality images to an advert, as well as more indepth descriptions, can make or break a decision by a buyer. For example, for cars priced between £15,000 and £20,000, 10 photographs can mean a 215 per cent improvement in click-through rates compared with vehicles that have no images. Speed is also of the essence these days. A quick reply makes a huge difference to perceptions of customer service, with 33 per cent of potential buyers expecting a reply to an email enquiry within four hours. Incredibly, 27 per cent would want a response in 60 minutes before moving on to the next car. The seamless link-up between dealership and website is important to Motors.co.uk, and Jones

when you’re closed

emphasises this, saying: ‘We have a breadth of visibility for dealers. Not only do we get them lots of sales leads, but we also give them full transparency about those leads. They can listen to every telephone call, they can read every email and they can see the engagement on their stock in ‘‘The Eye’’. So ultimately, we think it’s about allowing dealers to have control over their own marketing spend, identify where those leads are coming from and assess the quality of the leads in order to help them manage their marketing as profitably as possible.’

ALIGNING THE ONLINE AND OFFLINE EXPERIENCE With a potential buyer now capable of scrolling through hundreds of vehicles, lining up the online and offline experience is more vital than ever. A recent survey conducted by Motors.co.uk

of more than 750 car buyers has shown some key themes emerge, with the desire for a longer and more in-depth test drive coming to the top, followed by a desire from consumers to talk to product specialists, not salespeople, when they arrive at the dealership. Given the amount of detailed information available online about specific vehicles it’s no wonder that dealerships are facing increasing pressure from smartphonearmed buyers on the forecourt. Director of dealer insight Peter Watts further explained the problem: ‘When the buyer has experienced some beautiful layouts online and then comes offline to visit the dealership, the dealer has to ensure they deliver against that customer expectation. This means that if a buyer has contacted a dealership in advance, you need to make sure the car is available to drive when they arrive and remember that the

customer hasn’t come to your dealership to have a cup of tea; they’ve come to test-drive the car they’ve spent six weeks trying to track down – so capitalise on this enthusiasm and excitement and get them into the car as soon as possible!’ It’s also important for dealers to avoid the ‘fast food’ moment – when the image on the screen doesn’t match the car in person. Watts continues: ‘You can walk on to a new car forecourt now and you’ll see customers with their mobile or tablet in hand comparing with a car website. Any disconnect between what they see online and in person threatens to decrease trust between buyer and seller.’ Finally, converting visitor information into usable statistics is of vital importance to Motors.co.uk, as being able to provide dealerships with those cold, hard facts gives them an incredible advantage over those without access to such information. Even simple figures – such as knowing that 69 per cent of consumers looking for a new vehicle see parking sensors as the numberone ‘must have’ feature, or that 65 per cent see Bluetooth technology as vital – can be invaluable to the dealer when it comes to the text used in online adverts or when talking to them on a Saturday morning. This is the story so far. But Motors.co.uk also has exciting plans for the future. It’s planning a big TV campaign in January, having seen visits, visitors and leads more than double since starting its TV push in January 2014. And it’s looking forward to greater contact with the Cox Automotive group of companies. Phill Jones said: ‘We had our US colleagues over here recently and we’re looking at ways we can bring to the UK some great products they have over there.’ Manheim features in a big way too. ‘We’re also working closely with our Manheim colleagues in the UK on providing greater insight into dealers’ stock and how it benchmarks against the market to improve their stock turn and importantly get cars onto their forecourt which are in demand.’ All in all then, Motors.co.uk is working hard to keep dealerships ahead of the game in generating leads, setting them up to succeed – and that can only be good news. By Jack Evans (@jackrober) CarDealerMag.co.uk | 89

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Lead generation

Making AA Cars the must-have choice for dealers AA CARS

W: theAAcars.com T: 01920 252 474

ll car dealers are looking for an online edge or the angle that will help them stand out from the crowd, particularly when the most casual internet search will generate a host of car-purchasing options from a dozen outlets all vying for the attention of the prospective customer. As edges go, then, being able to operate a car sales website with the imprimatur of such a highprofile motoring organisation as the AA is no small thing. So, logic suggests, the option to sign up and join AA Cars has to be worthy of consideration. Unsurprisingly, AA Cars’ operations director Paul Yates reckons it is, adding that the unique package they have makes them competitive with anything the opposition has to offer in the car sales website world. ‘We completely recognise that Auto Trader is the 90 | CarDealerMag.co.uk

giant out there and that most dealers will feel they need to have their stock up on its website,’ said Yates. ‘However, many dealers are with two or three online sites. What we are about is making AA Cars the must-have choice for dealers, and we believe that the free, inclusive package we offer is one that will offer significant value to their business. ‘We are not trying to match the volume of stock offered on other websites,’ adds Yates. ‘We aim to deliver a quality car through trusted dealers – maybe not the largest but certainly one of the best, and definitely the one offering the best value. ‘Other car sales websites offer additional features and options but they are add-on extras that the dealer has to pay for, often at a premium rate. With AA Cars it is all part of the package and there are no hidden extras or costs. Most dealers would be paying significantly more for the same package

through other car sales websites.’ At the heart of the AA Cars offering is a free website with an integral stock management tool. For both the dealer – and indeed their online customers – the interface is similar to ones they will already be familiar with. Crucially, however, from a dealer perspective AA Cars offers something different – the ability to also advertise their stock on other websites with no additional charge. ‘Any dealer with us at AA Cars can decide what they want to upload to a third party and there is no charge,’ says Yates. ‘It’s a unique offer as no other online car sales website will do that without charging a fee, a premium. Simply put, it’s all part of the AA Cars service and it adds value to the dealer.’ Aside from the big plus for dealers of being able to refurbish and upgrade their existing website – or

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‘Our reach is growing and we offer consistent, sustainable traffic. We are working hard to broaden the ways we drive traffic to the website. create one for the few not already having an online presence – complete with AA branding, AA Cars also takes advantage of the association with its parent company. The highlight offer from this is that every car sold by an AA Cars dealer goes out on the road with free 12 months AA breakdown cover. Significantly, this offer stands even if the car is sold via a website the dealer has uploaded stock to. Allied to this, and a big part of the trusted dealer theme running through the whole AA Cars offer, is the fact that any car put up on the website has been subjected to a background check to ensure it has never been written off or stolen. Any car that fails to pass the test is stopped from going up on the site. In addition, the customer has the option – again at no extra fee – to access other details of

the vehicle’s history including recorded mileage, number of owners, and any number plate or colour changes. ‘It’s a comprehensive service,’ says Yates, ‘and one that is entirely free to the customer and a real bonus for the dealer to be able to offer.’ Yates is keen to point out that AA Cars is on the up, highlighting 40 per cent growth year-on-year with currently two million car views a month. In terms of AA Cars’ client base there is currently a 60:40 split favouring independents over franchise operators. ‘We are growing, and growing at a great pace,’ added Yates. ‘Our reach is growing and we offer consistent, sustainable traffic. ‘We are working hard to broaden the ways we drive traffic to the website.’ Many might say that having access to no

fewer than 15 million members of the parent AA motoring association is not a bad resource to draw on, and members will be made aware of the benefits offered by AA Cars on a number of occasions during their AA involvement. Again and again in our conversation, Yates returns to the central tenet of what he says AA Cars is all about. ‘We are the only one of the big four not to just go and chase after stock volume. It’s one of the reasons we haven’t boosted the number of cars on our site with private sales, as that can just open a can of worms. We present quality cars working with trusted dealers, that’s our offer.’ AA Cars is not resting on its current offer and no doubt has plans and an enhanced offering for the future. Watch this space. [CD] by Phil Riley (@PhilRiley5) CarDealerMag.co.uk | 91

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For over 30 years Rapleys has been synonymous with the automotive & roadside market, providing our clients with an unmatched continuity of service and level of experience. For more information on how we can help your business, please contact: Geoff Sayer 07769 671 488 grs@rapleys.co.uk

Portfolio Advice Lease Consultancy Valuations & Appraisals Expert Witness Rating Appeals Planning Applications & Appeals Building Consultancy & Project Management Development Consultancy Investment Brokerage

0370 777 6292 LONDON HUNTINGDON MANCHESTER BRISTOL EDINBURGH 92 | CarDealerMag.co.uk

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Property

Being in the right place can make a massive difference Expert advice takes the potential pain out of tricky decisions

eing in the right location with appropriate facilities and a welcoming ambience can make the difference between success and failure for a great many car dealerships. Deciding to make improvements or a more dramatic change can bring new opportunities, along with any number of unanticipated pitfalls and traps for the unwary. Over the next couple of pages we offer some expert advice on helping you decide between the relative merits of choosing relocation or refurbishment.

Our guide on this voyage of exploration is a certified expert in the field, Geoff Sayer, from the automotive and roadside team at Rapleys. Sayer has come up with 10 top tips, some posing the vital questions that any dealership has to find the answer to before making such a major decision. Knowing exactly what you want to achieve sounds like a fairly basic and fundamental question, but it is one that you must give your full focus and attention to â&#x20AC;&#x201C; and thatâ&#x20AC;&#x2122;s just the starting point. Read on for the best advice in getting the right answers.

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

CarDealerMag.co.uk | 93

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Property

Making the right choices in RAPLEYS

W: rapleys.co.uk T: 0370 777 6292

ven in the increasingly virtual world of the internet-savvy car-buying customer, a dealer’s actual physical presence on the ground still plays a key role in converting interest into a confirmed sale. Facilities, location, access, convenience and overall ambience all have a part in the customer experience, and dealer sales. So any decisions around relocation or refurbishment of a dealership’s showrooms, reception and public spaces have to be taken with care and calm consideration. If there is one company with the know-how to pass on some good advice it’s Rapleys, a multidisciplinary property and planning consultancy, synonymous for more than 30 years with the roadside property market. Geoff Sayer, a partner in the automotive and roadside team at Rapleys, offers his top tips for making the right choices before relocation or refurbishment.

Why are you relocating? It sounds obvious, but you have to ask yourself ‘why am I doing this?’ There are lots of good reasons, such as a lease coming to an end, or choosing to unlock value through a sale for residential use, but sometimes a restructuring could be a better option. For independents, most people are coming to view a particular car they have seen online, so access, parking and convenience are key if you are trying to expand. Your existing site may be unsuitable, prompting a move. In the branded, franchise sector, the dealership is a manufacturer’s statement and still needs to be high-profile but the requirements are tending towards securing larger sites to fulfil the expectations of the brand.

What do you want? A good location is still a key consideration, but where that is will change according to the particulars of your business. Location, location, location is a cliché but remains true, albeit for a range of reasons. For the bigger independents, especially the high-volume players, it’s all about the efficiency of the sales process. Dealers are increasingly trying to replicate the buyer’s online experience 94 | CarDealerMag.co.uk

on site, so terminals will be provided in a suitable area. The dealer may provide coffee while discussing the planned purchase, and it’s an upselling opportunity. It’s a more customer-focused experience and far more controlled. The retail sector has an input here, so dealers have to accommodate that in their plans. Many smaller independents still have 30 cars on a quarter-acre site but are moving on from the ‘Arthur Daley’ image with a decent pitch and a good website. Meanwhile, others may be operating a high-end operation in an affluent area. Here the location needs to afford a prestigious environment for the customer, or rather ‘client’ perhaps, with character replacing the glass-box experience. These are more often like brokerage agencies, and sourcing the vehicle replaces a large stock. It’s about making the right statement.

How long will it take? This is probably the single issue which creates most problems. It’s all about practical considerations, working out how long it will take to acquire new premises, how long to build, rebuild or refit. It is very easy to underestimate the time it takes to find a site, get planning, get through the design and legal phases, and build or refurbish. Think early! Planning alone can easily take five to six months and there is plenty of scope for delays. Experience has taught Rapleys’ experts in all these fields, that being prepared early on means you’ll only end up fighting battles you know you have the best chance of winning. The larger groups often know the score and have resources already in place, while the independents typically have less wherewithal or ready access to such expertise. Refurbishment is often a more likely option; however, once again, timescales should not be under-estimated.

How much will it cost? There are a lot of factors to take into account here, not all of them immediately obvious. Negotiating prices, rents and build costs can all be anticipated and accounted for, along with financial fees, though they are frequently underestimated.

Geoff Sayer offers expert advice to dealers on the pros and cons of relocation Building costs are likely to increase over time and building regulations, particularly those incorporating sustainability issues like energy efficiency, can change over the course of a long development project. Then there are environmental considerations and clean-up costs that might not be immediately apparent. Taxation is not something that is always considered, including stamp duty and capital gains, and inheritance tax where a family-run independent changes hands at the time of a relocation. Finally, it doesn’t always have to go in the minus column. Your current site may have inherent value which could make a compelling case for relocation, or you may in some cases be entitled to compensation if you’ve made improvements or if you are being pushed out.

Make sure you know what you’ve already got. Your current site may be a significant part or more of your funding to support a relocation. Automotive sites are often low-rise and lowdensity so it pays to understand the value of what you have. Relocation will be expensive, so it’s worth revisiting your decision to move even if the site isn’t quite right as it is. Could you adapt your site to meet your goals or needs without the cost of a move? Is there any scope to expand into an adjacent site? If you are going to go, make sure you have

the relocation game 8

Keep people in the know. Relocation is a great PR opportunity with plenty of chances to get publicity, all the way up to the ribbon cutting at the opening ‘event’. It is important, too, to keep your staff involved and engaged at all points of the process, although that isn’t always possible.

realised all the value of the site you are vacating (that includes if you are a tenant) and make sure your liabilities for ‘empty’ rates and other holding costs are minimised on vacated premises.

Make sure you know your patch. Most dealers consider themselves to be pretty clued up in their area, and rightly so. They often have a detailed idea of who is moving out or moving in to their area thanks to their established business, but remember also that there is a wealth of local knowledge to be gleaned from various people including staff and customers. It isn’t always evident what is going on with large development sites. However, there is a potential new source of premium sites from those that until recently were earmarked for food stores. Tesco and Sainsbury’s, for example, have pulled

out of several planned projects, often leaving site owners and developers searching for someone to take over the site.

Get know-how when you need it. The chances are you will need the services of surveyors, architects, planning, financial and environmental consultants at some point in the process. Making the investment early in the process will help you make informed decisions at the right time. The perhaps unfair stereotype of the independent owner-operator is someone who knows it all, but even if that is the case there is still plenty of opportunity to get tripped up so take care. Getting the right advice at the right time requires some investment but it will save you money in the long term.

Make sure you know the law. There are a few areas that can catch out the unwary or ill-advised. One of those for leaseholders is compliance within the terms of your lease, so make sure you have met all the conditions, including any repairs. Having your landlord after you for a large dilapidations claim can give rise to a significant cost and early advice will allow you to account for the liability and minimise it. If your route to relocation involves operating a break clause in your lease, make sure you have a good lawyer on board at least six months before you have to serve your notice to help you identify what needs to be done. The law is very strict here and recent cases have seen tenants failing on minor technical matters leaving them with a further five or 10 years’ rent commitment – that’s enough to scupper a relocation. Make sure you take care to dot the ‘i’s and cross the ‘t’s. If you need to market your current site then you will have to arrange for an Energy Performance Certificate (EPC) to be prepared before doing so.

Be prepared to innovate. Sometimes it pays dividends to go in a different direction – if you can’t go sideways can you go up? A Nottingham Nissan dealer has gone up four storeys to get round site constraints and high land value, and the profile is there for all to see. Car decks, despite the recent bad press, are still a good idea and can be really cost-effective. Technology is also offering some great innovative ideas, led by Audi’s virtual showroom and the entrance into the market of giants such as Google and Apple. [CD] CarDealerMag.co.uk | 95

DASHBOARD. FEATURE.

Ask Lawgistics

E-cigarettes present us with new challenges

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

I am being taken to court over a car that we sold. The buyer wants a refund for the purchase price, which happened to be £9,995. On his court papers he has added interest and his court fee. Does this mean that my case will not be heard in the Small Claims Court, as the total amount being sought is over the £10,000 threshold? It will still be heard in the Small Claims Track, as it is called, as the value of the claim is £9,995. The interest and court fees are added to the claim but do not form a part of it. The total amount sought is more than £10,000 – but not the amount of the claim for breach of contract, which is for the value of the vehicle. Interestingly, where a defendant issues a counterclaim against the person bringing a claim, both the claim and the counterclaim will be considered in the Small Claims Track so long as the value of each are individually less than £10,000. So, in the question above, if the car dealer defendant wished to issue a counterclaim against the buyer for, say, £3,000 then although the total amount of both is well in excess of £10,000, the value of each claim against the other is individually less than £10,000. Accordingly, the rules of the Small Claims Track would apply. The differences between cases heard in the Small Claims Track and those heard in the ‘Fast’ or ‘Multi’

Track are of far greater significance than just the value of the amount claimed, as there are far more stringent rules for the parties to follow. These include: n The consequences of not accepting an out-of-court offer of settlement can be very serious indeed. n Stricter rules of evidence. n The need to disclose all of the evidence (even if it goes against you) as opposed to disclosing only the evidence that a party intends to rely on in support of their case. n More rules about expert witnesses. n A longer time until the matter gets before the court for determination. n Often a ‘hearing’ before the main trial so that the judge can assess and direct the parties as to what they have to do. n The ‘winner’ being allowed to recover all his legal costs back from the ‘loser’. This is not to say, however, that a claimant can artificially lower the value of a claim just so that it falls within the Small Claims Track threshold. So, if in the case of this situation, if the value of the car that the buyer was seeking to reject was, say, £10,500 the buyer could not go to court and ask for ‘just’ £10,000 in order to avoid the more stringent rules of the ‘Fast Track’.

.com

How were we affected by this summer’s Budget?

Q A

What did the summer 2015 Budget do for me? On July 8, 2015, the chancellor announced several new policies that will affect both motor traders and drivers of new and used cars. The biggest change involves payment of road tax or Vehicle Excise Duty (VED). Presently, VED is charged according to carbon emissions. Pre-March 2001 vehicles were rated by engine capacity. The prevalence of more environmentally-friendly cars paying low or no VED has produced

a significant loss of revenue to the exchequer, which is now to be addressed. Under the new system, owners of cars registered after April 2017 will pay tax based on emissions for the first year and then a flat annual rate of £140. The exception is cars that cost £40,000 or more new, which will be charged at a higher rate for their first five years. Other policies are yet to be finalised but these are likely to

affect the MOT, where it is proposed that cars and motorcycles should have their first MOT four years from registration, rather than the current three. Thereafter, the annual inspection and certification remain unchanged. Fuel duty remains frozen for the fifth year running. Finally, from 2020/21, all money raised through VED in England will go towards a new road fund dedicated to the upkeep and maintenance of English roads.

ADVICE

Should employers have a policy on the use of e-cigarettes in the workplace? If organisations have smoking policies in place already, these should now also include details of their approach to the use of e-cigarettes or vaping. E-cigarettes are not covered by the statutory ban on smoking in enclosed spaces, but many employers prohibit their use regardless on their premises in order to protect employees and others from being exposed to their vapour. However, some employers may consider a complete ban on vaping in the workplace to be counterproductive. An alternative is to permit e-cigarette use in certain designated areas. However, employers should not send e-cigarette users to the same areas as regular smokers. Designating a single area for the two groups could result in users of e-cigarettes bringing grievances, or even constructive dismissal claims, as they are being exposed to second-hand smoke. Staff taking too many smoking or vaping breaks present another challenge. Employers should review their no-smoking policies to ensure that employees understand that excessive or unauthorised breaks will result in disciplinary action. They may wish to copy other organisations, which ban staff from taking breaks either to smoke or vape during working hours.

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH

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WHY I JOINED CAR DEALER CLUB

WANT TO UPGRADE YOUR MEMBERSHIP?

Legal advice at a very reasonable price is proving really useful to Prestige Diesels of Portsmouth.

OUR member of the month for November is Alexis Cassey, who first approached Lawgistics to seek advice on a private issue within her company, Prestige Diesels of Portsmouth. A loyal member of the Car Dealer Club, it was only natural that Lawgistics should be her first port of call. And as a result of the helpful advice from the company’s legal advisers, she decided to upgrade to Small Business Membership, which she has found extremely useful since she did so three months ago. Lawgistics has since provided Prestige Diesels with employment contracts for two new members of staff who were due to join the company. Cassey explains: ‘They were brilliant. When I asked for the documents they were sent to me within minutes, and as they were slightly different they explained both types of contract and what we needed to look out for. They ensured that we knew exactly what we had to do.’ Cassey continued: ‘For a small business in any industry, to have the legal support of somebody like Lawgistics behind you at the drop of a hat – you pick up the phone and

they’re there – is quite comforting.’ Cassey is now looking to refine her business, including her sales processes, and she has found that Lawgistics can provide her with the information and advice to help her achieve this. The company has already received a loan car form, which clarifies insurance arrangements and the company’s policies when it lends a vehicle to a customer. With the implementation of the new Consumer Rights Act at the start of October, Cassey is doubly glad that she upgraded her membership. While she doesn’t believe her firm will ever find itself in too serious a situation, she feels her membership acts as a useful safety net. ‘Car dealers as a whole need to understand where they stand with this new law change, and I think this is where Lawgistics will really help independent dealers,’ she said. On a final note, Cassey said: ‘If we all had to go out and get lawyers and pay £150 a go, nine times out of ten, dealers wouldn’t bother, they’d remain in the dark. ‘Lawgistics is legal advice on tap at a really good price.’

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LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that Club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There’s a package for everyone with Lawgistics.

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Dragon2000 CarDealerMag.co.uk | 97

DATA FILE.

Thestatistics n

SMMT Sales Data

Taking Stock

Demand still strong for diesel in a busy plate-change month Positive data welcomed after a difficult couple of weeks for the industry

ew car registrations in the UK reached their highestever September total last month, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). A total of 462,517 cars were registered in September as buyers took advantage of a range of competitive deals on the latest 65-plate, making it the 43rd consecutive month of growth in the market. The total number of cars registered in 2015 so far is 2,096,886 – 7.1 per cent higher than at the same point last year. It is the first time that the two million mark has been passed in September since 2004. Gains were made across all market sectors – private, fleet and business – while petrol, diesel and alternatively-fuelled vehicles all saw increased demand. In line with typical performance so far this year, registrations of diesel and petrol cars in September grew 4.1 per cent and 12.3 per cent respectively, and alternatively-fuelled vehicles (AFVs)

recorded another strong month with volumes up 21.7 per cent. This puts total year-to-date growth at 3.1 per cent for diesel, 9.5 per cent for petrol and 48.7 per cent for AFVs. Mike Hawes, SMMT chief executive, said: ‘September is traditionally one of the year’s biggest months for new car registrations, and last month set an autumn record. With plenty of attractive, affordable deals available on the new 65-plate, Britain’s car buyers – whether private, fleet or business consumers – were busier than ever. The market reached pre-recession levels some time ago, and we anticipate some levelling off in the coming months.’ In a veiled reference to the

Volkswagen emissions scandal, he added: ‘It is too early to draw conclusions, but customer demand for diesel remained strong, accounting for one in two cars registered.’ Ian Gilmartin, head of retail and wholesale at Barclays, said: ‘September is always a crucial month for the motor industry, and following a difficult couple of weeks, this positive data will rightly be welcomed. However, we need to ensure that increasing registrations really do translate to good results in the showrooms and forecourts. ‘Margin pressure is a growing concern for some dealers, and finding the right formula to ensure that the whole industry continues to succeed is going to be vital in the final part of 2015.’ The best-sellers for September were as follows: Ford Fiesta (22,807); Vauxhall Corsa (15,670); Ford Focus (14,258); Volkswagen Golf (13,603); Volkswagen Polo (11,026); Nissan Qashqai (10,119); Mini (8,754); Vauxhall Astra (7,920); Vauxhall Mokka (7,670) and Fiat 500 (7,460).

Sportage remains popular as Kia powers ahead... KIA enjoyed its best-ever September sales performance with 13,980 new cars delivered to customers during the month – helping the marque reach a sales total of 64,028 in 2015 so far, nearly three per cent higher than in 2014. Kia’s September sales has only been surpassed by the brand’s performance in March this year when 15,017 new cars were delivered. Kia’s September sales sufficiently contributed to quarter three also being 98 | CarDealerMag.co.uk

a record quarter for the brand in the UK totalling 21,960 sales, a 1.2 per cent increase on 2014 sales at 21,689 sales. Even in its sixth and final year of sales, the Kia Sportage retained its best-selling position within Kia’s range in Q3, attracting nearly 6,000 sales (5,974). This was followed by the ever popular Picanto with 4,547, cee’d with 4,065 and then Rio totalling 3,637 in the quarter. Paul Philpott, Kia Motors UK

president and CEO, commented: “In a very competitive marketplace it was reassuring to see that Kia’s continued record performance held throughout quarter three and especially September to deliver our best-ever autumn sales month. The Kia Sportage is still creating impressive sales in its sixth and final year of sales. Luckily we do not depend on this vehicle entirely, with strong sales figures coming from Picanto, cee’d and Rio.’

SMMT sales data Sep/year to date

Top

Most-improved manufacturers in September

Jeep +175% smart +129% SsangYong +122% Abarth

+113%

Porsche +86%

Bottom

Worst-performing manufacturers in September Perodua -100% Chrysler -99% Chevrolet -66% Infiniti -50% Bentley -26%

DACIA +26.45%

INFINITI -50.47% Figures supplied by SMMT

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

September 2015 2015

706 878 148 28,437 152 29,713 1 2 12,496 4,455 2,584 12,467 55,083 10,734 15,504 106 4,860 2,097 13,980 9,809 2,578 22 232 9,917 27,610 511 0 11,095 2,686 28,473 0 16,875 1,910 0 15,148 0 8,655 11,384 1,838 806 821 7,701 19,095 43,848 39,263 7,388 98 351 462,517

% market share 0.15 0.19 0.03 6.15 0.03 6.42 0.00 0.00 2.70 0.96 0.56 2.70 11.91 2.32 3.35 0.02 1.05 0.45 3.02 2.12 0.56 0.00 0.05 2.14 5.97 0.11 0.00 2.40 0.58 6.16 0.00 3.65 0.41 0.00 3.28 0.00 1.87 2.46 0.40 0.17 0.18 1.67 4.13 9.48 8.49 1.60 0.02 0.08

September 2014 2014

331 1,014 144 25,535 206 24,891 3 390 14,270 3,523 0 12,147 54,322 9,642 14,865 214 3,173 762 13,292 10,915 2,131 27 158 8,066 23,382 357 0 9,996 3,527 22,550 2 17,865 1,022 0 12,993 0 9,594 10,991 802 363 617 8,070 17,232 41,175 37,852 7,230 63 157 425,861

% market share 0.08 0.24 0.03 6.00 0.05 5.84 0.00 0.09 3.35 0.83 0.00 2.85 12.76 2.26 3.49 0.05 0.75 0.18 3.12 2.56 0.50 0.01 0.04 1.89 5.49 0.08 0.00 2.35 0.83 5.30 0.00 4.20 0.24 0.00 3.05 0.00 2.25 2.58 0.19 0.09 0.14 1.89 4.05 9.67 8.89 1.70 0.01 0.04

% change 113.29 -13.41 2.78 11.36 -26.21 19.37 -66.67 -99.49 -12.43 26.45 0.00 2.63 1.40 11.33 4.30 -50.47 53.17 175.20 5.18 -10.13 20.98 -18.52 46.84 22.95 18.08 43.14 0.00 10.99 -23.84 26.27 -100.00 -5.54 86.89 0.00 16.59 0.00 -9.79 3.58 129.18 122.04 33.06 -4.57 10.81 6.49 3.73 2.19 55.56 123.57 8.61

2015 2,029 3,924 727 133,300 1,027 124,309 9 136 66,338 20,386 4,549 51,867 268,328 43,563 70,623 891 17,966 8,420 64,208 49,881 10,618 263 1,161 37,923 116,509 2,461 0 47,182 18,100 124,967 0 84,593 9,559 0 59,221 0 40,520 60,144 6,363 2,681 2,734 28,706 81,604 212,100 182,441 32,391 567 1,597 2,096,886

Year-to-date (YTD) % market share 0.10 0.19 0.03 6.36 0.05 5.93 0.00 0.01 3.16 0.97 0.22 2.47 12.80 2.08 3.37 0.04 0.86 0.40 3.06 2.38 0.51 0.01 0.06 1.81 5.56 0.12 0.00 2.25 0.86 5.96 0.00 4.03 0.46 0.00 2.82 0.00 1.93 2.87 0.30 0.13 0.13 1.37 3.89 10.11 8.70 1.54 0.03 0.08

2014

1,286 4,464 695 126,487 1,160 113,520 2,764 1,673 66,542 18,583 0 53,781 262,754 44,102 65,564 591 14,627 2,844 62,538 45,483 8,629 180 921 31,373 99,096 1,840 5 36,584 11,162 106,890 27 85,418 6,483 1 50,732 1 42,611 60,386 4,016 1,215 2,140 31,431 76,055 210,357 168,662 30,784 624 1,115 1,958,196

% market share 0.07 0.23 0.04 6.46 0.06 5.80 0.14 0.09 3.40 0.95 0.00 2.75 13.42 2.25 3.35 0.03 0.75 0.15 3.19 2.32 0.44 0.01 0.05 1.60 5.06 0.09 0.00 1.87 0.57 5.46 0.00 4.36 0.33 0.00 2.59 0.00 2.18 3.08 0.21 0.06 0.11 1.61 3.88 10.74 8.61 1.57 0.03 0.06

% change 57.78 -12.10 4.60 5.39 -11.47 9.50 -99.67 -91.87 -0.31 9.70 0.00 -3.56 2.12 -1.22 7.72 50.76 22.83 196.06 2.67 9.67 23.05 46.11 26.06 20.88 17.57 33.75 -100.00 28.97 62.16 16.91 -100.00 -0.97 47.45 -100.00 16.73 -100.00 -4.91 -0.40 58.44 120.66 27.76 -8.67 7.30 0.83 8.17 5.22 -9.13 43.23 7.08

CarDealerMag.co.uk | 99

TAKING STOCK. The latest BCA Pulse report reveals there was a good balance between supply and demand during one of the most hectic months of the year.

Independent buyers were active and bidding strongly during a busy September Cars in poor colours, with high mileages, or requiring repairs should be valued realistically, says UK network operations director Simon Henstock.

eptember was a busy month in the used car markets, with average values rising over the month for fleet/lease and partexchange cars. According to our latest Pulse report, fleet values rose by £52 (0.5 per cent), with part-exchange values climbing by £91 (2.1 per cent). Despite this, the headline average value declined by £137 (1.7 per cent) as there was an increase in the share of dealer part-exchange cars sold over the month, compared to higher-value fleet and lease cars. With this change in model mix, the headline average value of a used car fell to £7,702, with performance against CAP Clean improving by a point to 98.65 per cent. Year-on-year, average values were up by £273 (3.6 per cent), with age static and mileage falling. Performance against CAP was up by one percentage point compared to 2014. Both fleet/lease and dealer P/X values also recorded year-on-year value increases and improved CAP performance. To sum up, September was a strong month at BCA, with independent buyers particularly active and bidding strongly. We are seeing a good balance between supply and demand in the wholesale markets. There is still plenty of volume in the pipeline due to arrive, however, and we will be seeing greater numbers of ex-fleet and part-exchange vehicles over the coming weeks. With greater choice for buyers in the marketplace, volume sellers should review their pricing strategy to reflect this changing dynamic. Cars in poor colours, with high mileages, or

requiring paintwork and repairs should be valued realistically to sell, reflecting their condition and grade. Stock that is not priced realistically will be picked over and left as fresh stock arrives in forthcoming weeks. In other words, dealers will look to buy stock that requires little or no refurbishment and any stock that needs paint work or repairs will need to be priced accordingly. Fleet and lease cars averaged £9,700 in September, up by £52 (0.5 per cent) compared to August and maintaining the steady price performance in the fleet and lease sector seen throughout most of 2015 – average values have been relatively stable around £9,700 since February of this year. Retained value against original MRP

Year-on-year average values up by

£273

100 | CarDealerMag.co.uk

(Manufacturer’s Retail Price) was down slightly at 42.09 per cent over the month, with age and mileage broadly static. Average fleet and lease values were up by £255 (2.7 per cent) compared to September 2014, with performance against CAP Clean up by half a point and retained value down by a third of a percentage point on 2014. Average values for dealer part-exchange cars also improved over the month, climbing by £91 (2.1 per cent) to £4,334. Year-on-year values remain ahead by £275 (6.7 per cent), with CAP Clean performance ahead by 2.74 points compared to a year ago. Nearly-new values fell in September, down by £711 (3.3 per cent) to £20,525. As we often point out, model mix has a significant effect in this very low volume sector. CAP Clean performance improved slightly to 101.54 per cent.

Nearly new values down by

£711

CarDealerMag.co.uk | 101

102 | CarDealerMag.co.uk

AUCTIONS.

Motor groups advised to enhance their online presence. bit.ly/online92

New in-car smoking rule offers financial benefits too, according to BCA Presentation is key when it comes to determining the value of a used car

AUCTION STATIONS

When threats can also count as opportunities

rivers in England and Wales are now banned from smoking in their cars while carrying passengers under the age of 18 – in a move to protect children and young people from the dangers of second-hand smoke. But, as well as the clear health benefits of the ban, BCA suggests there are clear financial advantages too. ‘Presentation is absolutely key when it comes to determining the value of a used car,’ explained Tim Naylor, editor of the BCA Used Car Market Report. ‘And lighting up behind the wheel can be seriously damaging to the resale potential of your car. Smoking not only leaves a lingering smell in the cabin, issues with visible damage such as cigarette burns and nicotine-staining are a real concern for used car buyers.’ Naylor added: ‘Our experience shows that specialist pre-sale valeting techniques have to be used to eradicate the signs of

Henstock

smoking in a used car. Even then, nicotine staining may require the headlining or other fabric in the interior trim to be replaced. This means the potential for added expense, inconvenience and time for the seller if they want to maximise the potential value of their car.’ He concluded: ‘Smoking in a car is not only a health risk, it is potentially detrimental to the value of that car when the time comes to sell it. ‘So the ban will not only be good news for motorists’ and passengers’ health but will potentially be a positive for used car values too.’

A Minor miracle as classic car is sold again time in nearly 60 years. A CLASSIC Morris Minor last Included in the paperwork sold by BCA in 1980 has was the 1980 BCA purchase returned to be sold again. invoice, confirming that The two-door car was the car originally sold for sold at the former BCA £680. It was due to go Frimley centre in 1980 by under the hammer at BCA the original owner who had Blackbushe on 14 October bought it as a new car in – just after Car Dealer went to press. 1957. The buyer in 1980 recently returned Car dealer May 24/4/15 Page 1 Check our website for an update! to BCA to sell the car 2015 for only the second 10:53

No cowboys. Just Just trade trade professionals. professionals.

ne fascinating new feature in this year’s BCA Used Car Market Report is the unique survey of used car dealers. We polled senior personnel at franchised and non-franchised used car dealerships across the UK to get the inside track on their views on the issues and opportunities facing automotive retailers today. Retailers consider competition by far the biggest threat to their business – be it from fellow franchised and independent dealerships, or from larger or even smaller operations, as many respondents cited car supermarkets and individual ‘freelance’ traders as concerns. Nearly twice as many were concerned about competition than about the economy, for example. The second biggest issue was stock – where to get it from and getting the right vehicles to meet the needs of their customers. Ironically, the biggest single opportunities are those that dealers also cited as threats. Used cars and stock were mentioned by 24 per cent of respondents, as sellers welcome a greater availability of younger second-hand cars. When asked which methods they employed to source used car stock, retailers pointed to part-exchange vehicles and both physical and online auctions as the most important supply channels. Part-exchanges were cited as the single most important source of stock by 45.2 per cent of dealers, while auctions are collectively considered the most important stock source by a third (32.9 per cent), with physical auctions just ahead of online channels at 17.1 per cent versus 15.8 per cent. Used car dealers were also alert to the opportunities created by the internet and social media, which were referenced by 15 per cent as being the most important factor. BCA’s 25th annual Used Car Market Report is now available to download from bca.co.uk

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 | 103

MARKET INSIGHT.

..in association with ASE-global.com

Share prices come under pressure as the market gets more challenging FTSE 100 performs poorly on the back of concerns over China and the emerging markets

eptember may have been a quiet month for announcements, but share prices were impacted significantly by the VW emissions announcement, the longterm impact of which on the sector is difficult to assess with the VW Group representing around 20 per cent of the UK car market. In addition, the FTSE 100 as a whole had a disappointing performance on the back of concerns over China and the emerging markets, together with the impact of a potential rise in the level of interest rates. Share price performance Share price performance was largely flat in the month until the VW emissions announcement in late September. Although not all the motor retailers have a VW franchise, following this news, the average share price in the sector as a whole fell by six per cent, and there remains uncertainty in the market about the longer-term impact and whether additional manufacturers have been involved in similar activity. On a positive note, the recall of five million vehicles by VW will generate significant footfall

Share price movement from Jan 1 to September 30, 2015

Share price movement from Jan 1 to September 8, 2015

Pendragon

127.7%

140.0%

Vertu

111.9%

115.8%

Lookers

128.8%

138.7%

Inchcape

98.8%

96.8%

Cambria

132.6%

156.4%

Caffyns

96.4%

106.3%

Marshall

112.1%

118.0%*

*movement since admission to AIM on April 2 within those dealerships and the subsequent opportunity for sales that will bring. Together with a potential move away from diesel to petrol or alternative fuels, this may generate further growth for the sector. We were interested to note that on October 1, Vertu acquired SHG (South Hereford) Holdings, representing their first Audi franchise and further investment by that company in the

Volkswagen Group – suggesting that dealer confidence in the brand remains high at this difficult time. Financial performance There were no results announcements or trading updates this month, perhaps as retailers focussed on achieving September registration targets. Transactional activity Following Lookers’ headline £87.5m acquisition of Benfield Motors in early September, this had been a quiet month until Vertu’s acquisition of SHG (South Hereford) Holdings on October 1 for £12.8m. Initially queried by the wider market due to their increased exposure to the VW group, the acquisition will enhance EPS (which is reflected in the goodwill paid of £8.5m c.4 times EBITDA) and Vertu will still have less exposure to the VW Group than the national average. This deal shows that further consolidation of the market over the coming weeks and months can be expected as the larger groups vie for market presence. Confidence in the Audi brand would appear to remain high, despite the headlines of recent weeks

Who is Mike Jones? He’s the chairman of dealer profitability specialist ASE plc. You can read ASE’s column here every month 104 | CarDealerMag.co.uk

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#CDPower CarDealerMag.co.uk | 105

RECRUITMENT.

John, 31, becomes used car sales manager at Crewe Audi ‘Brand has a fantastic product range and I can’t wait to get stuck in’

ohn Buckley, 31, has been promoted to used car sales manager at Crewe Audi, part of the Swansway Group. He has been with Swansway for 12 years, gaining his motor trade experience from the ground up. He began as a service advisor for commercial vehicles at Crewe Volkswagen, before moving into sales at Crewe Seat. Buckley said: ‘I joined Swansway when I was 19 years old in the service department, moved across to sales at Crewe Seat and never looked back. I went from sales executive to business and sales manager at Seat, before moving to Swansway Chester Peugeot as sales manager, and now to Crewe Audi as used car sales manager. It’s certainly

an exciting time for me.’ Buckley will work with general sales manager, John Doorbar, overseeing a team of 11 sales executives and he’s committed to delivering the high level of customer service for which Crewe

MMG careers advert_Layout 1 26/07/2012 15:29 Page 1

Only

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. 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.

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Two senior appointments FORAY Motor Group has made two senior managerial appointments, from within its own ranks. Luke Mundy has been promoted to become group service manager, while Mark Grant is the new sales manager at English Ford in Poole, Foray’s flagship showroom. Chris Yoxon, managing director, said: ‘Both Luke and Mark have shown exceptional talent during their time with Foray, which was founded in 2000. We were lucky both of them were already on the staff when their dealerships became part of the group. ‘It pays to be find talent within your workforce and not to be drawn into graduate schemes as the only way to discover managerial material.’

Reach new heights... need apply!

106 | CarDealerMag.co.uk

Audi is renowned. Head of business at Crewe Audi, John Nimbley, said: ‘John joined us in February 2015 from one of our other sites, Swansway Chester Peugeot, and it gives me great pleasure to promote him to this role. ‘We hope to build on his previous success in the group; he was the manager responsible for the most used car units sold in one month.’ Buckley added: ‘Swansway Group has a history of promoting from within and I’m proof of that, having built my entire career with them. The Audi brand has a fantastic product range and I can’t wait to get stuck into my new role.’

PROMOTIONS

We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to

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...with a career at Vertu Motors

Welcome to Vertu Motors PLC, the largest growing motor retailer in the UK Whether you’re starting your career or changing jobs, it is important that you apply to join a company that is right for you, one that shares your values, will appreciate your work ethic and reward your achievements. It is not that different from buying a car. Get it right and you’ll feel good every time you make a journey. Get it wrong, however, and you’ll never feel satisfied. Choosing an employer is similar but, considering how much time we spend at work, it is far more important to get that choice right. After all, this is a decision that will literally change the course of your life. You need to know, however, that we are equally choosey when deciding who will make this journey with us. You would expect no less.

to find out more about the Group and see our current vacancies.

To apply or to explore all our exciting career opportunities, visit...

www.vertucareers.com

Due to phenomenal growth, GardX Protection are now hiring! Account Managers. Regional Managers. Nationwide Positions Available.

We are currently seeking talented and motivated individuals to join our forward thinking team and become a part of this exciting journey. If a future at GardX Protection is for you - please send your CV and a cover letter to: recruitment@gardx.co.uk

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DATA FILE.

James Litton TRADER TALES

This new legislation is simply a nightmare

ames Baggott’s column last month touched on the need for an independent body to protect legitimate car dealers from nefarious characters. The article took me back to 2011 when I decided to wind up my own business and return to the Mercedes network. While I was decimated at the time, emotionally and financially, I now look back on the years of The Internet Car Lot with great fondness. It led to my return to the West Country to rediscover my relationship with my parents after years away, and, in addition, I learnt many valuable business lessons which still benefit me today. The forum member Wheelerdealer1, to whom James referred in his post, will hopefully take heart from reading this column. You can start again, you just need to throw yourself into another opportunity. I wish you the best of luck. So, to James’s point. October 1 marked the introduction of the 2015 Consumer Rights Act. While it would be great to think this legislation would answer some of James’s criticism that back-street dealers are allowed to get away with bad practices, I fear this latest attempt to protect consumers will only make it more difficult for those who do it properly. For most franchised networks, 30-day exchanges are nothing new. However, for independents, this is a nightmare. Say a customer toe-drops his part-exchange on you and then 29 days later says the new car is simply not for him. Can you afford to sit on the part-exchange if you have to unwind the deal? Not easy for many independents. Under the new law, consumers have six months’ protection that should the car go wrong more than once, they are entitled to a full refund or replacement. This is a complete nightmare. If the customer takes the vehicle to another repairer and they misdiagnose the problem, you could be replacing the vehicle months later. This is by far the scariest element of the new rules and is sure to strike terror into the heart of every dealer, not just the independents. The only consolation I have is the fact that we have been here before. When the Distance Selling Regulations came into force in 2000, we were all worried that internet business – although in its infancy at that point – was done for. In the intervening 15 years, I think a customer has quoted it once to me.

‘You can start again, you just need to throw yourself into another opportunity.’

Who is James Litton?

James is sales manager at Mercedes-Benz of Taunton. He always has something to say about the industry he loves. 108 | CarDealerMag.co.uk

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We played around with our golfing boss

t’s never nice to feel that you’re being taken advantage of; that you’re the one doing all the hard graft when the boss is away doing something else. In our case, at a dealership I worked at back in the 1990s, the ‘something else’ in question was golf. The DP was always out on some course or another, wandering around hitting small balls with big sticks while we were slaving away back at the ranch trying to sell some cars and earn the company enough money so that our wages could be paid. Of course, on the odd occasion when it was quiet, it wasn’t really a problem – but all too often, the guy would vanish when we needed him most, leaving us holding the fort and struggling to cope. What made matters worse was the fact that quite a few of us at the dealership were keen golfers ourselves at the time, so our sense of injustice at being left to get on with it was heightened by our own desire to be out on the fairways. Anyhow, one day, as you might have guessed, we hatched a little plan to get our own back. Our boss, let’s call him Bill, because that was his name, was chatting loudly on the phone one morning about meeting his pals that afternoon and heading out for 18 holes. We could all feel our hackles rising, especially as the phones were ringing off the hook and, amazingly for a Tuesday morning, quite a few punters were walking through the doors. So while he was waffling away, we put our cunning plan into action. We pinched Bill’s car keys from his desk and got hold of his clubs which were in the boot of his car, parked outside. What did we do? Well, Bill was quite a short chap (5ft 2ins in his stockinged feet) so we simply swapped some of his clubs for those belonging to one of our sales executives – Darren – who, if I remember correctly, was at least a foot taller, maybe more. Why do I say ‘some of his clubs’? Just to add to the confusion really. Anyway, Bill came back the following morning and amazingly took the prank in good heart. Even invited the rest of us out for a round at his club the following weekend, which was nice.

‘While he was chatting to his mates on the phone, we put our cunning plan into action.’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email the editor (you can find our details on page three) or post them on our new forum – simply type cardealermagazine.co.uk/forum into a web browser and get confessing! CarDealerMag.co.uk | 109

KEY NOTES

..in association with Traka

Get ready to change What will the connected car revolution mean for car dealers? asks Paul Smith

ecently, I was emailed an image of the Connected Car which showed a car of the future split into four parts, each controlled by different organisations. Uber, Google and Apple were the first three highlighted. That left only about 25 per cent of the value of that car in the hands of the original manufacturer. It got me thinking what this vision of a world dominated by Connected Cars would mean for car dealerships in 2020 and beyond. Several developments are hastening the arrival of the Connected Car. Firstly, 2011 saw the emergence of the OPEN Alliance 100 Mbps BroadR-Reach (OABR) automotive ethernet standard supporting faster and more dataintensive communications for infotainment, parking cameras and on-board diagnostics. Automotive ethernet will gradually replace existing protocols like CAN and LIN as they can’t handle the increasing volume of data needed for the next wave of sophisticated car electronics. Secondly, traditional in-car copper cabling is relatively heavy and expensive compared with the single, unshielded twisted pair (UTP) cabling used for ethernet data transmission. As more electronics are put on to cars, so the amount of copper cabling has increased. Broadcom estimates that replacing copper wiring with UTP can save 45kg from a car’s weight, assisting manufacturers to meet increasingly stringent fuel emission standards and increasing performance. Thirdly, the IP (Internet Protocol) revolution has had a transformative impact on several markets, with innumerable efficiencies found by getting IP-based systems to talk to each other. This creates smarter systems with greater functionality and more automation, helping to unlock previously undreamt-of business benefits. We are only at the beginning of the IP journey

– ethernet’s penetration of the new car market was just one per cent last year, but according to ABI Research will rise to 40 per cent by 2020. When both Apple and Google start sizing up the opportunity you know things are changing. Apple wants to control the in-car ‘infotainment’ market and has developed the CarPlay platform which takes all the things we do with our iPhone today and transfers them to your car’s dashboard. So you can get directions, make calls, send and receive messages, listen to music and download apps and infotainment content, all from your CarPlay-run dashboard. Half of all car infotainment systems could be run using Apple’s iOS by 2018, according to ABI. Market research house IHS expects car manufacturers to increasingly integrate apps into their vehicles, the most popular being ones that improve the driving experience, including navigation, weather, music, news and social networking. Google has developed its own driverless cars and there is no doubt the market will see wider adoption of Driver Assistance Systems (DAS). Within a few years, it will also be the norm for

vehicles to have their own direct connection to the internet – with all the opportunities, as well as security and safety challenges, this implies. Then there is the Uber revolution. Already, car manufacturers are putting forward carsharing services responding to changing habits of consumers. In the US, fewer young people are rushing to get their driving licences and buy cars. There, only 63 per cent of19-year olds have a driving licence, down from 83 per cent just 10 years ago. The 18-34 year olds in America have bought 30 per cent fewer cars than the historical norms. Many are instead using services like Uber to share cars or rent one when they need one. If car ownership in the west has peaked, what implications could that have for car dealers? The answer is to begin to start building services for this new generation of connected consumers. Will dealerships be running their own vehiclesharing services in the future? Who knows? There is no doubt that IT skills of technicians in dealerships will need to evolve as data networking skills will be more and more vital. Infosecurity bug fixing and firmware upgrades could also be handled in the dealership or via a download service run by dealers, who might also sell IT support services alongside leasing policies and GAP insurance cover. Clearly, some of this Connected Car future is a long way down the track but elements are already included on prestige models. My experience is that when markets migrate to IP and faster data, this has always triggered disruption as well as positive transformation. There will be losers as well as winners. It brings instant efficiencies and a vast well of technological innovation. It is time for dealers to start thinking about how they can add value in this vast new IP connected car world.

Who is Paul Smith?

ASSA Abloy recently purchased the electronic key management software provider eTag Solutions. eTag was founded by Paul Smith, who now heads Traka Automotive, part of the ASSA Abloy Group brand Traka. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.

Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive POWERED BY

Email sales@etagsolutions.com or call 0845 225 2910

110 | CarDealerMag.co.uk

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