SMTA Auto Insight – Issue 04 by SMTA

ISSUE

SKEOCH: THE SCOTTISH CAR STORY 100 YEARS IN THE MAKING IMI SKILL AUTO

MEMBER PROFILES:

Augustus Autos KICKSTART GATEWAY Clarkson Commercials James Kennedy-Pratt wins gold

SMTA secures approval from Department of Work & Pensions

The Magazine for Scottish Motor Professionals brought to you by

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CONTENTS 4 THE IMPORTANCE OF CONTRACTS 8 AS GOOD AS GOLD 12 MEMBER PROFILE 24 WHAT’S IN MY GARAGE? 28 MEMBER PROFILE 36 FEMALES IN FOCUS 38 KICKSTART SCHEME 40 COX AUTOMOTIVE The trends to look out for

Pauline Hughes of Just Employment Law explains

James Kennedy-Pratt excels in IMI competition

Clarkson Commercials

Dalbeattie Men’s Shed innovative project

Augustus Autos

Central Car Auctions Mary-Anne McNaughton

Kevin Millar explains the benefits

If you would like to take advantage of advertising in this brand new magazine which reaches all SMTA members and beyond to approximately 5,000 sites across Scotland, or have an article you would like to discuss for publication contact: Wendy Hennessy Email: wendy.hennessy@smta.co.uk For details of all up and coming SMTA events please contact: Karen Thompson, Events & Media Manager Tel: 0131 331 5510 or Email: karen.thompson@smta.co.uk

Welcome... ..to edition four of our SMTA Magazine which now incorporates Scots Auto Scene following our acquisition of the archives and intellectual rights of Bell Johnstone Publishers who sadly met their demise in 2020. This addition to our portfolio allows us full access to the huge archive of material built up over the 17 years of Scots Auto Scene existence and of course now means we are the oldest industry specific trade magazine in Scotland serving our sector. I look forward to reminiscing in future editions using the back editions as our source. Brexit is gone and we ended up with a last minute deal after all, so now we start to work our way through the ramifications of the details that the Civil Servants have put together both sides of the Channel. There will be numerous directional changes for many months to come as these details inevitably throw up challenges that have to be overcome, this is always the case when a long standing relationship breaks down. We, of course, will ensure that we keep those closest to these negotiations as well informed as possible as to potential impacts on our sector. The impact of the second full lockdown introduced early in 2021 has been extreme in many cases. We have been dealing with an increased level of calls and enquiries for support and guidance through the various changes in legislation introduced on a rolling basis by the Scottish Government. We have continued to lobby the Scottish Government as well as Westminster on behalf of our members on issues that relate directly to our sector, MOT, Click and Collect and Test Drives are all recent examples some, with better outcomes than others. However, we will continue to lobby on a weekly and in some instances, daily basis until we are through this terrible pandemic. The long term impacts of the last year will not be known for some time but there is likely to be ramifications to us all, particularly the ability of business and individuals alike to shoulder the burden of repaying the enormous levels of financial support that has been pushed into the system to keep the fragile economy going over the period. The SMTA will always be there to fight the corner for our sector of that you can be assured! For now we are able to look forward with a degree of optimism that was not with us when we last went to press given the on-going roll out of the vaccine, which is a huge step forward for us all. As always we wish you and yours the very best of luck in keeping good health and being able to create positive prosperity for your business in 2021.

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS SMTA Ltd Tel: 0131 331 5510 | Scotsure MBI Ltd Tel: 0131 331 5512

www.smta.co.uk

Sandy Burgess FIMI Chief Executive, SMTA sandy.burgess@smta.co.uk

SMTA is proud to support:

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MARKET INSIGHT

by Philip Nothard Insight & Strategy Director, Cox Automotive

2021: THE TRENDS TO LOOK OUT FOR As the world’s largest automotive services organisation, Cox Automotive are committed to helping dealers navigate uncertainty in the wake of COVID-19 and help them on the road to recovery. In his last update, Philip Nothard, insight and strategy director for Cox Automotive UK, shared some of the key trends that emerged in the car market in 2020. Now in the new year, Philip takes a deeper dive into how these trends could evolve in the coming year and how retailers can capitalise on them.

DIGITISATION, E-COMMERCE AND THE END-TO-END CUSTOMER JOURNEY Much has been written in recent years about the shift from a service economy to the experience economy; a move which has seen organisations focus on the way in which the customer accesses their services, rather than the service itself. Indeed, the original advocates of the experience economy model, Pine and Gilmore, talk of four key focal points on the experiential journey: Education, Escapism, Entertainment and Esthetics. When organisations create the digital customer experience, they should be thinking about how to meet all four elements – providing information, aspiration and diversion or distraction, humour or fantasy, and something which draws on all the senses. Appealing to the 4Es, many automotive organisations create immersive advertising experiences

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and use storytelling to capture the imaginations of prospective buyers. The showroom is an extension of the storytelling environment. With the experience beginning the very first moment a consumer considers purchasing or financing a vehicle and running all the way through to disposing of that vehicle after its useful life, there are hundreds if not thousands of potential touchpoints along the way. Manufacturers, dealers, and the aftermarket have significant opportunity to create resonance with the consumer, offering an experience which is seamless, integrated, personalised and multichannel. For a multi-channel customer journey in automotive to be successful, consumers need to buy into the notion of purchasing big-ticket items online. It seems that consumer behaviours have started to move that way, accelerated by the global pandemic. Speaking to NADA in May 2020, Lissette Gole, Head of Automotive Retail at Google, outlined some of the key consumer behaviour trends that have emerged since the start of the pandemic. Around seven in ten (68%) auto shoppers at the time saw digital experiences and interactions as good alternatives to visiting the dealership, with one in five saying they would purchase immediately if given an online option. Search queries relating to buying a car online have also continued to increase, up +82% in the UK, while at-home test drives were the most popular alternative to visiting a dealership, and vehicle review videos are the most popular digital alternative. While the data has revealed an increased appetite for a multi-

channel buying experience, trust and transparency between the retailer and consumer are vital to carry this out seamlessly. As an industry, it is important to put in place the tools and processes to support customers and consumers in the right way. Consumers want to know that if they make the wrong decision, they can put it right with minimal hassle and little to no cost. They need to trust that the information they are getting is correct and see a transparent process to manage any issues which may arise. One particular area retailers should consider is the part-exchange. More than 50% of vehicle transactions have a part-exchange attached to them, and as the industry drives towards e-commerce, and digital retailing becomes core, being able to handle part-exchange vehicles remotely is critical to the success of the journey. Cynicism and a lack of trust may historically have led dealers to require physical appraisals while consumers often sought out a second opinion, but that’s no longer the case. As highlighted by Paul Humphreys, Managing Director of Car Buying and Mobility at Cox Automotive: “Part-exchanges have the potential to cause friction. Our mission is to improve online and in-store vehicle transactions for everyone. By removing the barriers, implementing a transparent process, and enabling a frictionless experience, we create an environment in which trust is at the heart of the relationship.” What was once an area of contention between the retailer and consumer, can become very simple when transparency is added to the process. The tools to do this both online and in-store exist today,

and Cox Automotive, with its largescale auction and vehicle services businesses, is well placed to support the change.

BUILDING ON THE SUBSCRIPTION ECONOMY: DIGITISING THE EXPERIENCE The number of miles driven continues to rise, even while the number of vehicles sold declines. Although individuals and organisations still need to keep on the move, the appeal of owning a depreciating asset is waning, particularly to a generation which is also struggling to get on the housing ladder. However, shifting trends do not spell the end of the automotive sector as we know it, perhaps just a rebalancing of priorities. Whereas manufacturers used to speak of being car companies, now the word of choice is mobility. Albeit the concept of Mobility as a Service (MaaS) or Car as a Service (CaaS) is not a new one, its importance has risen sharply in recent years. The desire to access vehicles and wider mobility services at the touch of a button, or app, without the hassle of having to insure, store or maintain the asset provides comfort to those whose work and personal lives are complex. Throw COVID-19 into the mix, as we saw in 2020, and the waters are further muddied. After the initial 2020 global lockdown, Google Trends data showed people worldwide had been looking for affordable private transport options to avoid having to catch a bus or train; ride-sharing services were hit by social distancing measures; and dealer data suggested there is a ripe market for good quality used vehicles to meet that consumer demand.

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MARKET INSIGHT

There has also been a sharp increase in the number of manufacturers offering subscription services, allowing consumers to pay a monthly fee to access one or more vehicles on quick-change cycles and with all add-ons such as insurance, breakdown cover, fuel, and so on included. Indeed, the subscription model is arguably ideal for those reeling from the pandemic and looking for flexibility and minimal commitment. According to a report from enterprise software company Zuora, subscription-based businesses continue to outperform traditional business models even throughout the pandemic. Four in five subscription companies were still growing, when the report was compiled in May 2020, with half of companies growing just as fast as before the pandemic.

“It seems inevitable that subscription models will become much more commonplace in automotive in the future...” While the subscription model has been proven to work in other industries, automotive continues to be slow off the mark. In fact, twothirds (66%) of dealers in the Cox Automotive sentiment survey have made no attempt yet to build a business strategy around the shift from ownership to usership. While some felt the move would be delayed due to COVID-19, others talked of the difference between the new and used markets, with the

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former more likely to see further subscription options. For one respondent, the key question was whether consumers want or can afford to be ‘in debt’ or making monthly payments forever. Perhaps more interesting is that one in five dealers (22%) say they have created a business model around usership. There is clearly a manufacturer bias at play, with some OEMs much further down the line in creating product than others. David Bilsborough of Cheshire Cars had this to say on the matter: “The usership model is in some way already with us, in the form of PCP/ lease agreements. Total usership, though, I cannot see being big enough to greatly affect the market. Especially while the outcome of COVID-19 is to encourage people to stay in their own vehicle.” And let’s not forget that while the vehicle sourcing and selling journey is becoming increasingly digitised, there will always remain a need to process the physical asset. Indeed, organisations like Manheim Vehicle Services continue to invest in increasingly sophisticated and environmentally responsible ‘one stop solutions’ – geographic locations where all elements for whole life vehicle management can be completed. This includes body repair, mechanical and diagnostic recalls, MOT, retail quality imagery and integrated logistics. It seems inevitable that subscription models will become much more commonplace in automotive in the future just as they have done in other industries. But for now, the majority of dealers remain cautious while the true long-term impact of COVID-19 is yet to be seen.

INSIGHT REPORT 2020

Take a deeper dive into the key topics discussed in this article and more in our 2020 Insight Report. Be sure to visit the Cox Automotive Fuel content hub to read the report and keep up to date with our latest market insight and opinion.

coxauto.co.uk/fuel

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MARKET INSIGHT

by Pauline Hughes, Solicitor, Just Employment Law

ARGUABLY, THE MOST IMPORTANT DOCUMENT IN THE EMPLOYMENT RELATIONSHIP IS THE CONTRACT OF EMPLOYMENT. An employer must issue an employee with “written statement of particulars of employment” at the start of the employment relationship. The statement should set out the employee’s main terms and conditions of employment, including their hours of work, remuneration and holidays, and should outline both parties’ obligations for the duration of the working relationship, along with any that might continue after termination. It is in an employer’s interests to ensure that all employees are issued with a contract of employment, not least as employees have the right to receive their written statement of particulars of employment no later than the first day of their employment. Importantly, this also to ensures that, insofar as is possible, the employer’s interests are protected throughout the employment relationship. An employer should therefore ensure that key matters on which they may need to rely in future (for example, paying employees in lieu of their

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notice period or placing an employee on garden leave) have been agreed at the outset, in writing, in the contract of employment. The need for having robust and legally compliant contracts of employment in place with staff was reinforced in April 2020, when new laws came into effect, increasing the level of detail required in the written statement of particulars. Since then, information needs to be included in the contract relating to training requirements, the types of available paid leave at the employer and what benefits (if any) beyond salary and pension are provided. Whilst taking steps to roll out of contracts of employment can be overlooked by employers, it is undoubtedly a worthwhile exercise, given that an employee has the right at any time during their employment to make a complaint to an Employment Tribunal if their employer that they have not received all the required written information about their terms and conditions from their employer. Where a case

like this succeeds, the Employment Tribunal has the power to declare what the missing terms of the contract actually are. Additionally, as long as this claim had been brought alongside another claim, the tribunal must make an award of between two and four weeks’ pay to compensate the employee for this omission. With that in mind, as we start the new year with the hope that 2021 will bring prosperity and a return to normality, it would be an ideal time for employers to ensure they have appropriate employment documentation in place which, importantly, is legally compliant. As employment law specialists who are well placed and, indeed, experts in drafting contracts of this nature, Just Employment Law would be pleased to assist organisations with this project. If you are interested in learning more about Just Employment Law or our services, please contact us on 0141 331 5150 or at enquiries@ justemploymentlaw.co.uk.

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MARKET INSIGHT

by Bobby Lamond, Development Leader, Marsh Commercial

DRIVING ABROAD AND MOTOR INSURANCE COVER DOCUMENTATION POST BREXIT For those driving in the EU post Brexit it is important to be aware of the regulatory changes and ensure that you have the correct documentation to do so. The United Kingdom formally left the EU on 31 December 2020 and a new deal came into effect on 1 January 2021. Post-Brexit, there are new rules which change the way you can now drive in Europe, including the documents you will need to carry while there which includes your Motor Insurance Certificate and a Green Card.

WHY A GREEN CARD IS NOW NECESSARY A Green Card is a European Economic Area (EEA)1 certification of insurance which provides motorists with evidence of the minimum level of compulsory motor insurance required by the law of the EEA country in which travel will take place. UK motorists therefore now have to carry a Green Card as proof of insurance cover when driving in the EEA, Switzerland, Serbia, Andorra and also in Ireland. UK motorists driving all classes of vehicles, both privately owned and those within a company’s fleet, will need to carry a Green Card as proof of third-party motor insurance cover. Some countries also require separate insurance for trailers, so a separate Green Card will also be required for a trailer. A physical copy of a

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Green Card will be necessary when travelling in Europe, as digital copies are not currently accepted. Green Cards therefore need to be applied for in advance of planned travel to ensure insurers can provide these prior to departure. Failure to comply with the requirement to have a Green Card could lead to severe consequences. If drivers do not carry a Green Card, their vehicle could be seized, they could face a fine and/or the risk of prosecution.

OBTAINING A GREEN CARD Each insurer is obliged to provide a Green Card when requested by their policyholders and many insurers have released their own guidance in relation to Green Cards. There may be a cost associated with the issuance of a Green Card, and this will vary between insurers. In view of the timing of the application process and the possible consequences of failure to carry a Green Card, consumers and businesses are advised to contact their insurers as far in advance of the intended trip as possible to ensure the

Green Card is obtained and received in time. The insurer will advise the period of validity of each Green Card.

“BLACK AND WHITE IS THE NEW GREEN” Insurers are now able to issue Green Cards that are in black ink on white paper and send them directly to policyholders by e-mail, who can later print them in black ink on white paper. Issuing Green Cards in black ink on green paper is still permitted, but all countries must recognise black on white Green Cards from visiting motorists. If you have any queries about any of the issues discussed in this article, please do not hesitate to get in contact with our dedicated SMTA Marsh Commercial contact.

Dedicated SMTA point of contact: Bobby Lamond Tel: 07920 502310 Email: bobby.lamond@marshcommercial.co.uk

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AS GOOD AS GOLD JAMES KENNEDY-PRATT WINS GOLD AWARD AT THE IMI AUTO SKILLS COMPETITION 2020 IN LIGHT VEHICLE TECHNOLOGY This competition was open to all apprentice technicians in the UK and over 500 applicants entered with the top 84 from the passive round making it through to the next digital phase where there was one exam in each of the six categories. Jamie’s Transport Services in Montrose is a small family run garage with James and his Dad in the workshop and his mum in the office. James was trained by his Dad and also attended Edinburgh College. The family has been in the motor trade for over 100 years and James is a 5th generation to take up the tools and become a fully trained technician. James has always been interested in cars and competed at Autograss racing where he raced for four years in a class one in a classic Mini and that’s where his interest in cars grew! Asking James for the best thing about taking part in the IMI competition his response was “the shock when I heard that I had achieved the gold” he added “I was definitely not expecting that!”

As to the actual competition, which he thoroughly enjoyed, he did however comment “the only thing I’d change about the competition would be the COVID-19 restrictions as I feel that I excel at the practical element and feel that properly implemented the practical tasks could have been completed. What drives me is the changing technology as it presents more of a challenge within this job and that’s what I find interesting.” And the final thoughts of a young man who is clearly on top of his game? “I feel the most important thing I have learned is that independent garages can be just as good if not better than the larger dealerships.”

The SMTA thinks it is absolutely fantastic to be able to recognise such success from a Scottish based James told us “The hardest part of business in the most challenging the competition was the fact it was of times and James’ achievements all academic as I feel I am better at certainly illustrate that there are no “What drives is the changing the practical on sideme of things about barriers to success in our industry, this job. I hope I can my technology asdevelop it presents more this is a fantastic example for many skills in the future with the training new entrants to aspire to follow. of a challenge within this job” and the IMI membership which was We wish James continued success part of the prize. Remember he won with his career. the gold medal! – James Kennedy-Pratt

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COMPETITION WINNER Our competition winner is Karen Plowman from J&G Sutherland in Halkirk, Caithness, Karen correctly identified the popular saloon from the seventies which was a ‘Ford Consul Capri Coupe’. The Truecolour automatic welding helmet prize will be with her shortly!

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by Gavin White, CEO, Autotech Group

AUTOTECH ACADEMY – HELPING NEWLY QUALIFIED

TECHNICIANS GET ONTO THE AUTOMOTIVE CAREER LADDER The pace of change in the automotive industry has never been faster than it is now. Huge strides are being made in connectivity, with electric and autonomous vehicles set to dominate the roads over the next two decades.

work with colleges to identify the right person with the right qualities, skills and attitude before finding them the right internship position. In turn, garages, or any maintenance repair employer, will pay an hourly rate for a fully vetted, and fully equipped, intern over the six months.

The progression to hybrid and fully electric cars is very much a reality and the technological advancements built into these increasingly SMART cars continues unabated.

Interns will be equipped with a top box of tools, uniform, and PPE by Autotech Academy, who will also continually monitor their progress, and offer ongoing training, delivered through a vehicle manufacturer’s own training facility, or through equivalent OEM standard training. Every intern will also be trained to Level 3 IMI Electric Vehicle accreditation.

The car mechanic of yesterday has been superseded by the vehicle technician today, and it is critical that the industry attracts a new pool of talent to manage the inevitable servicing and repairs of these vehicles. The next generation of vehicle technicians will need strong engineering and technological abilities to excel within the automotive industry and it is the younger, school or college leaving generation, with their online culture and communication habits, who will play an integral role within this future. At the forefront is the work which needs to be done to blow the misconception of what working within the automotive industry today is really like. To some, it is still perceived as an old-fashioned trade, but if the sector is to thrive, this view has to change so a career as a vehicle technician becomes an attractive option to ensure future generations are enthusiastic and willing to learn the necessary skills. As an industry we are not great at selfpromotion and this has to change.

What is most concerning, is the annual cohort of around 10,000 students who leave colleges across the UK with an automotive qualification - but cannot secure a role within the industry. This is a loss the sector can’t afford. Couple this with the fact that investment in future technicians has significantly dropped, particularly during the pandemic where there was a fall in apprentice recruitment, the industry is reaching a critical point. While armed with the theoretical knowledge, college leavers lack experience to hit the ground running – which is often a deterrent to many time poor garage owners and dealership managers. As a direct result, the Autotech Group have announced the launch of Autotech Academy, a unique initiative providing qualified, college leavers with a gateway into the industry through a paid internship. Through the academy, college leavers will gain valuable experience across any area of an automotive business, with a view to securing full-time, paid employment within just six months. Working in partnership with both FE colleges and the aftermarket, Autotech Academy will

At the end of the six months, the employer can either decide to employ the intern free of charge on a full-time basis, or not, effectively it’s a ‘try before you buy’ solution. “Through Autotech Academy, vehicle manufacturers, dealerships and independent garage can expect to break even within six weeks.” Comments Gavin White, CEO of The Autotech Group. “Within six months they will have a fully qualified, brand loyal, trained vehicle technician. It is, essentially, a ‘grow your own’ concept which will help create the steady stream of young talent which the industry vitally needs to thrive.” For further information on Autotech Recruit contact hello@autotechrecruit.co.uk or call 0141 413 4021 or visit autotechrecruit.co.uk

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CONSUMER RIGHTS

by Howard Tilney, Legal Advisor at Lawgistics

ARE YOU SELLING MORE THAN YOUR CUSTOMER’S CAR? Used cars are a treasure trove of personal data and a data breach in the making, which could have serious consequences for all concerned

REMEMBER THE RULE OF FIVE

1 2 3 4 5

We recommend that all car sellers (private and trade), hirers, company and fleet car users and the like, adopt the ‘Rule of 5’ before handover, which may be summarised as follows:

EMOVE PHONE R CONTACTS DELETE MAPS AND ADDRESSES CLEAR MOBILE APPS SCRUB GARAGE DOOR CODES REMOVE DIGITAL CONTENT SUBSCRIPTIONS

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Last year, a survey by Which? revealed that four in five car owners failed to adequately remove personal data stored by or in their cars before selling it on thus placing them, their family, friends and any other contacts they have at the mercy of criminals. Ignore this when handing over any modern car and you risk handing over the keys to your life and everyone you know, including your valued customers’ data, which is likely to attract the attention of the Information Commissioners Office (ICO) under the provisions of the Regulations and Data Protection Act 2018. This might result in non-criminal enforcement and an audit of your business. The ICO also has the power to serve a monetary penalty notice imposing a fine of £1,000 per breach. Modern cars are computers filled with data. They pair with smart phones and other electronic devices via Bluetooth or USB and absorb huge amounts of our personal data. They also hold information about our movements, often saved in navigation modules, which also need to be cleared down. If this data is not erased properly and all electronic connections are unpaired, then not only could such highly sensitive and valuable data be accessed by the new owner and others, including criminal gangs, but the previous owner could even track the vehicle, open its doors and drive it away! Responsible car dealers would not dream of handing over customer’s personal details to third parties without the customer’s consent but that is precisely what is happening if a car is sold/handed over without the previous owners and perhaps even their own personal data erased from the car’s database. Patently, this has major implications for all concerned and could represent a serious data breach if a dealer allows any car to go out with

third party data stored in its electronic brain. Indeed, most right-minded new owners will not want their new car clogged up with someone else’s data, in any event. This applies equally to hire and loan cars, so all personal data must be removed after each user returns the car to the supplier. Removing personal data from a car should be relatively quick and easy, similar to restoring a smart phone to its factory settings. Usually, it requires accessing the car’s infotainment system, entering the settings menu and finding the option to erase account details and data. Different manufacturers use different systems so, if in doubt, check the car’s manual or online guidance and follow the instructions. Remember, do not allow your smartphone to automatically reconnect to the car after reset, so disconnect the Bluetooth function. In summary, car dealers are strongly advised to make it their practice to remove all personal data and unpair connected applications as part of their preparation and certainly before handover of any used car. This should be recorded on a PDI checklist and or any handover documentation and a copy should be retained by the car dealer with the sales documents to prove that all third-party data was fully and properly erased, in the event of any allegation of a breach or a data audit by the ICO. By providing evidence that all such data has been removed and access rights revoked, car dealers can not only stay on the right side of the law and protect themselves from sanction, but add extra value to the customer experience. For more information call 01480 455500 or visit www.lawgistics.co.uk

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SIMPLY EMAIL YOUR ANSWER TO norman.stirling@smta.co.uk Need help? Please call Niall Farmer of GES Scotland on 07483 827734 The small print; no purchase necessary, free to enter draw, no alternative price will be offered, closing date for submission 31st March 2021 – A winner will be by ‘random selection’ picked by the SMTA Chief Executive presented by the end of April 2021, please ensure contact details are on the email – the winner will be notiﬁed by email. Voucher provided courtesy of Niall Farmer of GES Scotland. Competition entry only open to those businesses in current membership of the SMTA and SMTA staff are excluded. 20 WWW.SMTA.CO.UK

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MARKET INSIGHT

by Mark Standish, CEO, Moto Novo Finance

THE OPPORTUNITY OF A NEW ERA OF TRANSPARENCY FOR ‘NEW’ DEALER FINANCE From January 28th new regulatory changes to dealer finance will; Ban the ability of retailers to set higher interest rates to earn more commission Require new commission disclosure standards designed to provide consumers with appropriate and timely information

In leading the call for change in the trade over the last year, I have highlighted the change and risk-based pricing as an opportunity consistently. However, my optimism for the future of dealer finance is tempered by concern that some market players risk not buying fully into the spirit and letter of the Financial Conduct Authority (FCA) changes.

THREAT - THE COUNTERPOINT OF OPPORTUNITY In their Final Rules Policy Statement, the FCA made the spirit of the changes required by lenders and dealers evident, noting; ‘Firms will need to satisfy themselves that they are acting within the rules and meeting our intention behind the ban.’ The FCA intention in calling for change was clear; ‘To break the strong link between customer interest rates and broker earnings in order to decrease financing costs for consumers.’ It is a change which the FCA believe will save consumers £165m annually. Replacing discretionary commission with flat-rate structures that build in commission at a broadly similar level to that previously enjoyed by a dealer, strikes me as a significant risk. Inherently, there is a rate spread link in such models and finance costs may not decrease overall. Inevitably, it invites the potential of FCA and Claims Management

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Companies action at a business and under the Senior Manager and Certification Regime, personal level. From a longevity perspective, I suspect the inherent lack of price competitiveness for many people will mean that trying to sustain rate spread artificially is unlikely to be sustainable. Market disruptors, competition from other lending sources, transparency and ease of access for consumers will see to this.

THE OPPORTUNITY Dealers may be worried that changes will leave them worse off and in such a challenging climate that has to be a genuine concern, but there is no need to be worse off for many. The type of risk-based pricing we introduced last year has seen finance penetration and income and customer trust all increase. The mortgage market shows perfectly how a positive approach to a similar change can reinvent a market positively and we can do the same thing. At the heart of a sustainable motor retailing and financing model must be addressing deeply embedded, often harmful, perceptions of the car finance experience and solving customer needs fairly and positively.

In 2021, we can shake off unwanted ‘baggage’ and reduce the potential for disruptors to prey on what is often portrayed as a negative experience by embracing the spirit and letter of the FCA changes; 1. Let customers control their finance journey online 2. Use the FCA’s transparency requirement to provide a high integrity approach 3. Embrace a finance pricing model that matches the rate to the customer. Risk-based pricing is fair, enabling dealers to welcome a broader number of customers 4. Leverage the marketing opportunities of promoting the changed, ‘new dealer finance’ To coin an old phrase’ attack is the best form of defence. In 2021, dealers should have a finance model they can share with customers proudly. Transparency provides an excellent foundation stone that can see dealer finance as the natural choice for all car buyers. For more information visit www.motonovofinance.com

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MEMBER PROFILE

Clarkson Commercials

CLARKSON COMMERCIALS Glasgow-based, Clarkson Commercials is a family-run firm started in 1978 by David Clarkson. The SMTA talks to David’s son, Barry Clarkson about the company’s 42 year history.

SMTA: Tell us a little bit about how your business started? Barry: My father was sales manager with Watsons of Airdrie (a long gone Vauxhall / Bedford dealership) for 19 years. Upon reaching late 30’s he thought it was now or never so he took the plunge in 1978 .... and 42 years later I’m glad he did ! SMTA: How has the business grown since then? Barry: My father retired some 15 years ago and in that time the boom in online sales has been phenomenal so it’s fair to say online growth in that period has transformed what we do and how we do it. We now sell 500+ used light commercials annually UK wide from our base in Glasgow ... all off the back of online exposure and marketing. SMTA: Can you run me through a typical day? Barry: Where do i start ! .....I spend much of my day sourcing stock for resale. Also buying new vehicles for our rental fleet, having an over view of the rental department, ensuring all sales stock is displayed online. Keeping an eye on workshop throughput for sold vehicles heading out the door. I love good quality photography & video of our sales vehicles and I get involved with this too. Finally working alongside our experienced and committed team on various ongoing projects and challenges with the operation. We also have monthly meeting looking at the P&L’s and cash flow .

24 WWW.SMTA.CO.UK

SMTA: What’s been the highlight of your business so far? Barry: Above everything taking the business forward from my fathers retirement around 15 or so years ago. With modern technology and hard work we’ve seen our business go from strength to strength .... in a controlled and organic manner. SMTA: What’s the one thing your business couldn’t function without? Barry: Cash flow and a kettle ! SMTA: What’s the best thing about working for yourself? Barry: Pride .... amid a sea of faceless multinational operators there is real pride in having your name above the door. There is a quiet revolution going on where the general public really are warming to the concept of buying from the independents as opposed to the cold sterile faceless multinationals. SMTA: And the hardest part? Barry: This isnt a job, its a lifestyle where you need to continually keep yourself motivated and mentally on top of the operation....365 days a year / 24 hours a day. You can’t switch passion on and off at will. SMTA: What do you wish you’d known when you first started out? Barry: Nothing really ..... however as a side note : when serving my time as a mechanic here in my late teens I never wanted the stigma of being ‘the bosses son’ and grafted hard from the word go to carve my own reputation in the trade. This early principle really stood me in good stead and without question was the basis of the motivation that still carries me forward today.

financially secure position. SMTA: How do you maintain customer levels? Barry: We have a very long serving dedicated team here at Clarksons highly skilled in what we do. To add to this we have a continual rolling vehicle replacement programme on our rental vehicle where we rarely operate a rental vehicle over 18 months old. On the sales side we always aim to exceed expectations in all areas and this is reflected in our glowing online reviews. SMTA: What form does your marketing take? Barry: Purely online nowadays . Online marketing, social media exposure, Google adwords, weekly email broadcasts and our continually evolving websites. SMTA: What is the biggest challenge in used vans? Barry: Stock availability is always an issue, even more so in light of the Covid19 pandemic which has seen used van prices spiral upwards in 2019 / 2020. As a result margins are squeezed which run head long into relentless customer demands of discount and cosmetic perfection. The retail public have lost sight of the concept of buying a ‘used’ vehicle, expecting brand new standards at a used vehicle price. It’s a contradiction in terms .... it doesn’t equate. SMTA: What drives you? Barry: For me there’s huge pride in now running a business that my father risked it all for back in 1978. In my mind big isn’t beautiful .... however a financially secure, well rounded family business with an awesome reputation is . And that’s us ! Keeping the family theme alive I’m also very proud to have my wife Melanie on board as a fellow director who in fairness has a far more analytical eye than me !

SMTA: If you could go back and change one thing what would it be?

SMTA: What’s the most important thing you’ve learned in your career, and how have you made use of it?

Barry: Vehicle electronics .... we’ve exceeded the point of common logic & purpose where electronics are concerned. Do we really need such extreme gadgetery in vehicles nowadays ? Do we really need vehicle suspension to anticipate the upcoming undulations on the road in advance via satellite ???

Barry: Relationships, respect and moral values are everything. Good relationships build respect, built upon a solid foundation of strong moral values and beliefs. This mindset applies to everyone, staff, customers, suppliers .... and life in general !

Barry’s father, David started the business in 1978.

SMTA: How does your SMTA membership help? Barry: In such a consumer led industry where we operate in such a litigious business environment its great have the support, back up and accreditation of the association. Being an independent you ‘set out your own stall’ and the SMTA reaffirms everything we stand for in terms of professionalism. SMTA: Where do you hope your business will be in five years’ time?

And finally... On a personal note, Melanie and I would like to thank our committed and dedicated team here at Clarksons for their hard work, understanding and commitment during the Covid19 pandemic. Its been a roll coaster year for everyone but together we’ve done a sterling job of managing the stormy waters. Thanks again to all involved. www.clarkson-commercials.co.uk

Barry: Amid these very choppy economic waters its all about keeping our business in a strong, stable and

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S M R C U P D AT E

2020 SMTA CITROEN C1 CUP CHAMPIONSHIP REVIEW

As with most sporting contests in 2020, the Scottish Motor Racing Club (SMRC) season was certainly not a conventional one! The effects of coronavirus pandemic meant that the original 7 event calendar, which was due to kick off in April, was re-scheduled and drastically compacted into a 3-event calendar spanning across September and October at Knockhill Racing Circuit. The events were run behind closed doors with a range of protocols in place to ensure they were safe for all involved. However, these restrictions and the reduced calendar did not deter the SMTA C1 Cup drivers and teams, nor did they detract from the on-track action. We saw record grids with an average of 24 cars taking part across the three events, with hard fought racing throughout the field. With only 3 qualifying sessions and 6 individual races, a new arguably more intense challenge awaited the drivers and teams; there would be little opportunity to make up ground from any mistakes made if you were going to mount a serious championship challenge, so consistency was key! Consistency was indeed a quality that eventual championship winner, Ross Dunn, had in abundance. The Micro Machines Racing team driver finished on the podium in all but one of the 6 races, taking two race wins along the way to earn a deserving maiden championship win.

26 WWW.SMTA.CO.UK

“To win the 2020 SMTA Scottish Citroen C1 Cup feels fantastic! Reflecting back on what was a tough year for everyone, it was great that we could get racing up at Knockhill. The condensed season provided a unique challenge…3 Race Weekends in an 8 week period with a tight time schedule, consistency was key in every session. To take a Pole Position, 2 wins, 2 seconds and a third in the 6 races is an achievement that I am proud of in what was a fiercely competitive & close field! (12 cars separated by 1 second in Qualifying) A big thank you to our Sponsors and Supporters (Strathclyde Gearbox Services Ltd, BPS Group, Hellcat Graphics & Smart Systems Scotland) and we hope to continue our teams form into 2021 with repeated results.” Ross Dunn, 2020 SMTA C1 Cup Champion He was pushed hard all year by Glasgow’s, James McCracken, who just missed out on the title by 19 points in the end. James raced for the West

Ross Dunn celebrating winning the 2020 SMTA Citroen C1 Cup

College Scotland team who – alongside Edinburgh College – are one of the two College teams that field cars in the SMTA C1 Cup; quite an achievement for all the students involved to challenge for the title in only their second year of competition! 2019 Champion, Finlay Brunton, quietly kept himself in the mix all year and took a closely fought win in the final race of the season to secure 3rd place in the championship. His Minimax teammate and 2019 runner up, Ryan Smith, also showed some impressive pace but with just one podium finish to his name, he could only manage 6th in the points table, proving just how competitive this championship has become. All in all, despite the testing circumstances, 2020 was a great year for the SMTA C1 Cup. With record grids, it has grown to become the most popular championship on the SMRC schedule with close racing on the track as well as a close community of drivers off the track. The SMRC would like to extend a huge thank you to the Scottish Motor Trade Association, for their support and commitment to growing this championship. We’re looking forward to the 2021 season (which we hope will be a little more normal!) and welcoming more new teams and drivers to the grid. For more information, visit C1 Cup Championship at www.smrc.co.uk

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W H AT ’ S I N M Y GA RAG E

The Skeoch Utility Car

BACK TO THE FUTURE 1921-2021 The Skeoch utility car was one of Scotland’s first affordable cars and was built in Dalbeattie in 1921 by car designer, James Baird Skeoch. The car provided a comfortable two-seater which was suitable for business or pleasure. The car was launched at the Scottish Motor Trade Association’s 1921 Scottish Motor Show held in Glasgow’s Kelvin Hall. The Skeoch car was meant to be produced in volume (for the time) in the Burnside Motor Works, however only twelve were produced before a fire ripped through the works destroying all the cars in build and crashing the ambitions of the designer in December 1921. The founder’s son, Ronald Anderson Skeoch, began thinking about resurrecting the Skeoch and had gathered several genuine parts

28 WWW.SMTA.CO.UK

but he sadly died in 2017 before he could realise this dream. James’s granddaughter Fiona Sinclair and her parents Archie and Betty (James’s daughter) were clearing Ronald Skeoch’s house when they came across the car parts and original linen drawings, original photographs, and several radiator badges. With a background in conservation architecture, Fiona was keen to see her late uncle’s dream realised. So, the idea was hatched to recreate a replica of the original Dalbeattiemanufactured 1920s car, hopefully

Main picture: The original 1921 Skeoch Utility Car. Above left: Founder, James Baird Skeoch. Right: Ronald Anderson Skeoch. Centre: Burnisde Motor Works. Left: The original catalogue for the 1921 Scottish Motor Exhibition,

in time to celebrate its Centenary. The ‘Dalbeattie Mens Shed’ trustees were keen to accept the challenge and at a meeting in February 2018, it was agreed that DMS would raise the necessary funds, retain ownership of the car and receive legal title and a copy of the original drawings from Fiona Sinclair. Working from copies of original drawings, contemporary photos, engine, gear box and other parts received from Fiona, the team got to work. It became clear, early on, that the team could drive this project forward at full throttle by exploring new and emerging technologies in addition to traditional methods. In Summer 2018, a small team of DMS members led by Chairman Robin Gilchrist and Secretary Geoff Allison began bolting together a new steel and ash chassis to carry the 348cc, Glasgow built, Beardmore Precision engine, two-speed Burman gearbox and twin seats. Now a dynamic project it was fitting to complete the project in time for the 2021 exactly 100 years after the Skeoch’s debut. As normal in projects like this, not everything went to plan, some things failed, but it was all an exciting learning curve that drove the team to embrace the challenge even more. They then got help to create a virtual Skeoch and converted the imperial aluminium casting drawings into metric CAD drawings and .stl files (stereolithography). The virtual Skeoch allowed viewing from any angle on screen, assisting layout and confirming measurements. The .stl files and plastic replica parts created on the Shed’s 3D printer were used to decide how to manufacture the finished parts in aluminium, and to check tolerances, alignment and fit. Help was on hand in the shape of UK Model T Ford Owners Club, who highlighted some design similarities, and it was decided that some Model T components could be adapted to fit the Skeoch. This project has seen interest from around the globe and from all walks of society with even Sir Billy Connolly casting his eye over the work in progress when he visited the Shed for his BBC2 programme Billy Connolly: Made in Scotland.

March 2020 and along came Covid-19, the car was moved to the garage of DMS member and former SMTA apprentice mechanic, Tom Parker (82). Tom, actually served his apprenticeship for five years (1953 58) in William Robertson & Son built on the location of the original site where the Skeoch cars were made. Tom has lived with Parkinson’s for 17 years and suffered a relapse in lockdown which took a huge toll on his mobility and wellbeing. He then emersed himself in this unique automotive project—five days a week in lockdown—along with a small number of socially-distanced fellow Dalbeattie Men’s Shed members (called shedders) in the process he has certainly discovered a genuine new lease of life.

RECREATING A LEGEND...

Tom (featured driving the car on the magazine front cover) states: “Helping with the car has made such a difference to my life. I can still work with my hands and building it really was therapeutic for me and I am so proud and excited that it is almost completed.” Today, the car is almost complete and is currently with a local paint shop getting a coat of fresh burgundy paint which was the original scheme used on the launch / press car. The car was first unveiled to the general public at the 1921 SMTA Scottish Motor Show priced at just £180. DMS Secretary, Geoff Allison, said: “The Skeoch was one of very few cycle cars ever made in Scotland and it was manufactured right here in Dalbeattie. It was a local man who designed it and the likes of which have never been built again until now. There are no other cars like this known to be in existence. “We could not have done this without the support of our ‘Shedders’. We have drawn on their mechanical and engineering skills (both traditional and new methods) and the expertise of local volunteers and businesses alike.” Every step of the car’s journey has been well-documented at dalbeattiemensshed.co.uk/skeoch

Former SMTA Apprentice Mechanic, Tom Parker shows off the almost complete Skeoch. Left: Tom’s SMTA Certificate from 1958

WWW.SMTA.CO.UK 29

YEAR END CAR FIGURES 2020 FUEL TYPE

REGISTRATIONS BY REGION

DECEMBER 2020

YEAR TO DATE Petrol

84,003

Diesel

24,203

9,246 441

11,714

Petrol/Electric

973

1,631,064 13,000

12,148

Ford

11,289 10,141 8,043

BMW

7,724

Audi

7,489

Toyota Mercedes Kia

143

6,500

Vauxhall

6,041 5,736

Peugeot

5,648

Nissan

5,196

9.54%

8.86%

7.26%

6.31%

6.06% 5.88%

4.74%

4.50% 4.43% 4.08%

TOP SELLING

MARQUES YTD 2020 30 WWW.SMTA.CO.UK

Fife

1,232 Lothian

127,394

Volkswagen

Tayside

Strathclyde 4,619

TOTAL UK CAR MARKET:

649 478

Petrol/LPG

618

Central

109

Diesel/Electric

Highlands

Grampian

7,313

Electric

Summary

Total Scotland

Borders

Dumfries & Galloway

3,000

6,000

5,236

Vauxhall Corsa

4,261

Ford Fiesta Volkswagen Golf

2,790

Volkswagen Polo

2,776

Mercedes A Class

2,648

Ford Focus

2,600

Mini Mini

2,567

BMW 1 Series

2,388

Ford Puma

2,344

Vauxhall Crossland X

2,239

YEAR TO DATE

TOP 10 CARS Figures courtesy of SMMT (Society of Motor Manufacturers and Traders)

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MARKET INSIGHT

by Andrew Croxford, Senior Partner at Thomson Cooper

HOW MUCH IS MY BUSINESS WORTH?

As well as setting new year resolutions, the start of a new year is often a time when business owners reflect and ask what is their business worth. From the inside, it might be hard to say what that value is. You have put hours of hard work into building your business but what does that mean to a buyer in monetary terms? As a starting point, it is important to work out what it is you’re actually selling. Is it the business name, and the reputation that comes with it? Is it the lease on the premises – and is this currently owned by you or by your company? The kind of business you run, the sector it is in, the assets it holds and the people who work there could all make a difference to its overall value.Setting out this information will help you to reach an accurate valuation, and be able to communicate it clearly to potential buyers.

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BENEFITS OF VALUING A BUSINESS When it comes to selling your business, valuing it can also help you to determine the right time to sell, to negotiate the best possible deal, or to move negotiations along quickly. It can also be useful to know when you’re planning your retirement and thinking about your financial future. You might want to find out whether selling your business could provide an income throughout your retirement. Alternatively, valuing a business can help you and your team to focus on areas for improvement, and grow your business. You may choose to conduct a valuation to give you an up-todate picture of the stage your business is at.

THINGS TO CONSIDER There are several factors that might come into play when determining your business’s value, and some of these are included in the valuation methods set out below. Structure: Can the business function effectively without you? If you find it needs your constant attention to remain profitable, you may need to look at ways of streamlining, automating or delegating work. Circumstances: If you are under pressure to sell quickly – for instance, because you need to pay off creditors or you want to retire due to ill-health – the price may be lower than if you have time to achieve a better deal. Financial records: Detailed, accurate records that show a sustained history of strong financial performance will work in your favour when your

business is being valued. Reputation and customers: Is your business well-known within your field, and do people have a positive impression of the quality of your service? Similarly, do you have a solid base of returning customers who trust your brand? Staff: The skills and experience of your staff can often be a major part of your business’s value. A loyal team who work well together may mean a higher value – but remember to consider how much of that depends on your leadership. Product or service: A high-quality product or service can mean a higher-value business. This should take into account how niche your product is, and how it compares to competitors. Age of the business: Businesses in their early stages may have a lot of potential, but they’ll often make losses due to start up costs. More established businesses tend to be profit-making and face fewer risks.

BUSINESS VALUATION METHODS Once you have assembled all of the relevant information about your business, it’s time to get into the technical details of calculating its value. There are three main methods used as set out below. The most appropriate valuation method for your business will largely depend on the type of business you operate: the sector it is in, the size of the business, how long it has been running, and so on.

VALUING ASSETS This method looks at the value of the assets owned by your business, deducts any liabilities, and bases the overall value on that figure. This makes the most sense if you have a stable business with a lot of tangible assets – things that have measurable value, and usually a physical form, such as equipment, machinery, furniture, land, and so on. Property and investment businesses tend to be good examples.

Intangible assets, such as the skills and experience of your workforce, or intellectual property like patents, copyrights and trademarks, tend to be much harder to value. Businesses that rely on these assets rather than tangible assets will generally need to use an alternative method.

ENTRY COST VALUATION This method is usually used to value new businesses. It is a way of working out a business’s value by estimating how much it would cost to launch a similar start-up. It considers the cost of everything from raising finance, buying assets and developing products, to employing and training staff, or building a customer base. It can also factor in any savings you could make, such as adopting more advanced technology, using cheaper materials, or basing the business in a less expensive area.

MULTIPLES APPROACH Also referred to as the ‘price to earnings ratio’, this method uses a ratio based on the value of other similar businesses. This tends to suit more established, larger businesses that have had stable growth and sustained periods of positive earnings. In general, businesses with stable or growing profits and operating in mature markets will sell for a higher multiple of profits.

WHAT NEXT? Ultimately a business is worth what someone is willing to pay for it, but having a fully researched valuation and a clear strategy could mean that when the time is right to sell your business, you will be well placed to maximise any value that can be achieved. www.thomsoncooper.com Andrew Croxford is Senior Partner at Thomson Cooper, Accountants based in Dunfermline and Edinburgh. He heads up their audit and corporate finance departments and acts as auditor and business adviser to many companies operating in the automotive sector.

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MEMBER PROFILE

Augustus Autos

AUGUSTUS AUTOS WAS FORMED BACK IN EARLY 2012.

Founder and director, Steven Brown now aged 37 started Augustus Autos in 2012 having a complete change in direction of career and having never worked in the motor trade or having really any experience other than selling a few personal cars here and there. Steven’s background was in golf, having been Scottish champion in three age groups and playing all over the world from a young age then moving on to do a PGA degree at Gleneagles golf resort. Steven dropped golf completely by the age of 21 and returned to his amateur status, but still maintains a 0-handicap playing a handful of rounds a year. Steven was a time served roofer

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working for his father’s small business, Alan Brown Roofing and in 2011 Steven was set to move to the French Alps where he wanted to set up a roofing firm and pursue his love for snowboarding and mountain biking, but unfortunately, a bad knee injury put this on hold and so started his motoring career! A couple of cars at around a £1,000 each were bought, prepared and sold for a small profit and the rest is history!

Starting with a clean slate was beneficial, with no bad habits Steven had to learn every aspect of preparing, selling cars, after sales, finance etc quickly! It’s been a constant progression and getting better at each area of the business, every day. The name Augustus came from Steven’s grandad who was William Augustus Brown who sadly passed away around the time that the business came together. It has been a steady rise, building, improving and progressing the business every year, Augustus Autos has enjoyed the progress and is now at a point where they can look back and see how far it has come nearly ten years down the line. Steven’s passion for good cars and selling a quality product, along with immense hard work and long hours combined with great support from family and friends leads them to where we they are now. Augustus Autos’ new facility had a been a dream for many years and only became an option in the last couple of years. Everything began to fall into place and with a great team including GS Robertson for the steel and cladding of the building and design ideas from Steven, the site is now looking amazing while being able to stick to a strict budget. Augustus Autos’ showroom comes with many great features thanks to Metaltech UK, which include custom floating ceiling panels, bespoke signage and office desk giving a nice edge and an ultra-modern/spaceship like appearance that Steven wanted. The main brand Augustus Autos have sold over the years have been BMW, a lot of M cars due to Steven’s passion for them, they have had an e46 and an e92 race car and regularly attend Knockhill Racing Circuit for driving and events. Steve is looking to progress in this area and compete more in the future. Drivers cars have taken up a large portion of the sales over the years, they are

now quite well known for it, it’s not that they don’t sell ‘normal’ cars too, but the business is always looking for enthusiasts who own very wellmaintained cars. Augustus Autos deal in quality and not huge quantity, the preparation and detail that goes into each car makes sure everyone is getting their dream car, whether it’s a car that costs £5k or £150k. The progression of Augustus Autos will be to continue doing what they are doing, expand the servicing side and further development within the specialist and performance car sales market, it’s what they get excited about and find a lot of their customers recognise this and trust their experience in the marketplace. They give guidance on what cars are going to hold their value etc. and now have built up a UK-wide clientele with cars regularly being sold to all corners of the UK. The business is now able to offer a full range of services from servicing, detailing and sales. Every car that leaves the garage is perfect, cars are machine polished, ceramic coated, wheels refurbed, new tyres! Sometimes the time and prep will leave little profit, however, we are so set on putting out a high-quality car with proper attention to detail! Steven said he is passionate about what he does and gets a great buzz from dealing with high quality cars and enthusiastic customers. His brand new facility has given his business a massive boost and hopefully a very positive and exciting future. Augustus Autos have been SMTA members since the beginning and really appreciate the levels of support and fantastic offers we get on insurance, garage consumables and general advice to keep us right. Having never been in the trade before we found this very helpful from the start. www.augustus-autos.co.uk

WWW.SMTA.CO.UK

FEMALES IN FOCUS

MARY-ANNE MCNAUGHTON Mary-Anne recently became the first ever recipient of the Nan Lindsay Award. Here she talks to us about her career in the Scottish Motor Auction industry.

Tell us about yourself?

Manager which was a big mile stone for me,

What’s the best thing about your job?

At 16 I left school and joined Scottish Motor Auctions group at Kinross, This was a Youth training scheme as the office junior, through the years worked my way up from receptionist to cashier before becoming the office manager.

now at 45 years old and a mum to twins Director.

The best parts of the job has to be Auctioneering, I Auctioneer three times a week. I still love the buzz on the rostrum!

Since joining the company nearly 16 years

And the hardest part?

ago, I have been fortunate to work closely

The next step was to go into sales, I used to clerk for the auctioneers, loved the buzz on the rostrum on the sale days. I remember Ewan who was a Director saying to me “if you can auctioneer that will be great for your career” so from that point I thought I can do that.

with Jonathan and Jason Miller and Financial

The hardest part of the job would be when the market changes and the prices dip while trying to keep everyone positive. We know the market trends, we see it every year but I suppose it’s only natural to want each sales to be better than the last!

I was really fortunate to have great mentors during these early years of my career and I am grateful for the opportunities and career progression. I used to work every sale on the rostrum, I wanted to learn from all the auctioneers, everyone has a different style, after a while I decided I was ready to give it a go and became the first female car auctioneer in Scotland. I moved to Central Car Auctions in 2005 to be the Assistant Branch Manager, it was a big change for me going from knowing every part of the business at Kinross to starting to learn all the systems again at Central. I embraced this challenge and learned everything from booking the cars in right through to the cars exiting the site, I think it’s important to learn the basics to all the stages within the process of the business to manage it. Through time I became the Branch

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Michael & Rachel age 7, I am the Operations

Director Stuart on a daily basis. I have learned loads from these guys, they have been incredibly supportive over the years. Can you run me through a typical day? I work with Jason (Managing Director) heading up the daily operations with Ryan our Branch Manager and our fantastic team implementing processes/systems and managing projects to keep Central ahead in the marketplace. We are always looking for new ways to keep us on top to grow the business and improve the level of service. With the current lockdown restrictions auctions have moved from physical sales to “on line only” forcing a change to the business dynamics. This has allowed us to strengthen our online facilities with projects in the pipeline that will push our services to a new level. Our enhanced online presence and system improvements will strengthen our performance once the restrictions are lifted and we are able to re-open our physical auctions. Exciting times ahead.

What’s been the highlight of your career so far? The highlight of my career so far would have to be when I was promoted to Operations Director, this was something that I had in my future vision but I didn’t expect to get it so soon, it means so much to me. If you could go back and change one thing what would it be? To be honest I would not change anything, everything in my career has helped me be who I am today. What’s the most important thing you’ve learned in your career, and how have you made use of it? Find a job you love, you need to love what you do, be grateful, work hard and treat the business like your own. Never stop learning, My commute takes me an hour each day, I use this time to listen to podcasts and audiobooks. You are what you read!

A TRIBUTE TO NAN LINDSAY Nan Lindsay, who died of cancer aged 75, was a well-known figure in the Scottish car industry, the first and to the present date, the only female to serve as President of the SMTA. During her term in office, 1992-94, one of her most enjoyable memories was overseeing the opening the Scottish Motor Show at Glasgow’s Scottish Exhibition and Conference Centre, now known as the Scottish Event Campus. The SMTA was formed in 1903 to “encourage, promote and protect” Scottish car dealers big or small and Nan spent many years doing so long before, and after, the two years she wore the golden chain of the president’s office. Nan spent most of her career in the industry. She was the wife and business partner of Dumbarton car dealer John Lindsay, who ran Dumbuck Garage, outside Dumbarton, at the junction where drivers from Glasgow choose between the road to the Highlands or the Mull of Kintyre. That key crossroads, and the fact that the garage had long been a famous Jaguar dealership run by Sir Jackie Stewart’s father Bob, made it a natural stopping-off point for car buyers, or simply enthusiasts.

FEMALES IN FOCUS EVENT 24TH SEPTEMBER 2021 NORTON HOUSE HOTEL, EDINBURGH 100% COVID Protection guarantee on all bookings! We are delighted to launch our first ever ladies networking lunch called ‘SMTA ff21 – females in focus’. The aim of this lunchtime event is to provide a platform within the Scottish motor industry to bring together women (and men – you are more than welcome to attend!) from all sectors of the industry to network, exchange experiences and create business contacts and of course, to raise awareness of opportunities and celebrate the work of the women in our industry. The event will be hosted by Alison Walker, Alison has more than twenty years of experience working with the BBC in television and radio and she will be facilitating discussions with our panel of guest speakers which includes the winner of the inaugural Nan Lindsay Award – Mary-Anne McNaughton of Central Car Auctions.

Nan was also a gifted musician, having taken piano lessons from an early age and having studied in Glasgow, gained her LRAM (Licentiate of the Royal Academy of Music). For many years she cared for triple Formula 1 World Champion, Sir Jackie Stewart’s elder brother Jimmy who himself was a leading car racer of his era as he battled a long standing health condition. For much of their lives, Nan and John lived in the bungalow next to Dumbuck Garage, the house Sir Jackie was born in and which now bears a plaque saying so. Latterly, they moved to the village of Rhu, near Helensburgh, where they enjoyed sitting on their balcony watching submarines, Royal Marine RIBs and other vessels come and go through the Gareloch and the Clyde estuary. Lifelong friend Sir Jackie Stewart continued to visit and keep in touch with Nan until her death.

Alison Walker

Tables of 8 - £350 plus vat (individual tickets £50 plus vat) this includes a three-course lunch and a glass of wine on arrival! We are aware of the uncertain times we live in due to Covid-19 and if this event cannot run on the 24th September we will reschedule to another date or offer a full refund to all bookings not able to make the new date, guaranteed! All enquiries please contact Karen Thompson, Events & Media Manager on 07922 079889 or email karen.thompson@smta.co.uk Please note: this event is open to SMTA members and non-members.

WWW.SMTA.CO.UK 39

MARKET INSIGHT

by Kevin Millar, Gateway Project Manager, SMTA

HERE’S WHAT YOU NEED TO KNOW ABOUT THE UK GOVERNMENT’S NEW JOB SCHEME Kickstart is a new £2 billion UK Government scheme that is creating hundreds of thousands of subsidised job placements to help young people make the transition into the workplace while supporting the UK’s economic revival. Under the scheme, managed by the Department for Work and Pensions, the Government will cover 100 per cent of employment costs for 25 hours a week. This includes the employee’s salary at the appropriate minimum wage for their age, along with National Insurance and pension contributions over the 6-month job placement. Kevin Millar is our Gateway Project Manager, and he can now advise that the Scottish Motor Trade Association has secured Government and DWP approval as a certified Kickstart Gateway in support of Scotland’s automotive industry. Kevin is delighted to bring this opportunity to our members and would encourage employers of all sizes to engage with this key initiative. Drawing from extensive experience in the delivery of both National and Local Government business support initiatives, Kevin’s remit will be to guide and support you through the application process and liaise with the Department for Work and Pensions on your behalf. The Kickstart scheme will not only be pivotal to our young workforce’s future employment aspirations and ambitions but to Scotland’s economic recovery following a year like no other. Every Kickstart job placement is a potentially life-changing opportunity for a young person while allowing you as the host employer to engage, evaluate, and potentially secure your future workforce at zero cost or risk to your business. SMTA offer a comprehensive wrap-around support package for employers, allowing

40 WWW.SMTA.CO.UK

you to focus on day-to-day business activity while we manage all programme administration, deliver the mandatory employability training and oversee recruitment and onboarding. There’s no obligation beyond the placement as you will have provided a young job seeker with the key experience and skills to enhance their employability. However, Kickstart can serve as a 6-month interview allowing you to recruit with confidence and retain your trainee as a valued new addition to your team should you wish to do so. As a Kickstart employer, SMTA will give you access to a pool of fresh young talent with the desire and potential to embrace the much-valued employment opportunities you present. We want to work with you to deliver high-quality placements that go beyond the minimum requirements of the scheme to deliver an outstanding experience for both you and your new recruit/s. Our industry tailored training package is designed to best prepare and equip young people to positively and productively integrate and engage within the dynamics of your existing team. These weekly 90-minute

online training sessions will initially focus on soft skills, such as building self-confidence and resilience, workplace behaviour and include our well-being toolkit. Further modules cover teamwork and effective communication, problem solving, planning, organisation and resourcefulness. Latterly, training will reflect more practical job search activities like CV writing, interview and application techniques to help trainees achieve their goals and secure and sustain future employment. Many employers have already signed up with SMTA and are utilising Kickstart to fulfil a range of key job roles, including preapprenticeship placements, administration, sales, and not least in the midst of a pandemic, vehicle valeting posts. They’re also discovering that it makes sound business sense to engage young people in these roles while this can release and enable experienced staff to better utilise their time and skillset in prioritising their workload and achieve business objectives. At the end of the placement, you can be confident that you have invested in Scotland’s future workforce while your young trainee will have acquired the key skills and knowledge that places them in a better position to secure employment, and that’s something you and your business can be proud of!

To find out more on how you can put Scotland’s young workforce at the very heart of Scotland’s economic recovery, and explore how Kickstart can support your business needs, Contact Kevin Millar on 07593-800386 or email kickstart@smta.co.uk

FULL WAGES PAID FOR A TRAINEE FOR 6 MONTHS, 25 HOURS A WEEK

£1,000 GRANT TO COVER START-UP COSTS PAID TO YOU

We invite you to apply through SMTA, a Kickstart Gateway organisation specifically designed for the needs of SME’s across Scotland’s Automotive Industry. We will; Confirm your Kickstart opportunity fits the eligibility criteria Offer guidance and support with your Kickstart application Deal with The Department of Work and Pensions (DWP) on your behalf Pay you £1000 start-up costs when the placement begins Pass on monthly DWP wage payments to you Provide a £500 Employability Training Package No obligation, you can use the funding at any time in 2021

£500 EMPLOYABILITY TRAINING PACKAGE FACILITATED BY SMTA

What is it? The Kickstart Scheme is a £2 billion fund to create hundreds of thousands of high quality 6-month work placements for young people. It was announced on the 8th July after the Chancellor announced the Kickstart Scheme as part of the Plan for Jobs. Funding available for each job will cover the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. Through the scheme, you’ll be able to access a large pool of young people with potential, ready for an opportunity.

Interested? Secure your funding now via SMTA with no obligation.

APPLY TODAY Contact Kevin Millar, your Gateway Project Manager on 07593 800 386 or email kickstart@smta.co.uk for an informal chat on how SMTA can support your application for Kickstart funding at no cost to you and to expand on the offer and address any of your questions. WWW.SMTA.CO.UK

D V S A U P D AT E

DVSA UPDATE – DISCIPLINARY PROCESS, EMISSIONS RECORDS AND ANNUAL ASSESSMENTS 1. MOT TESTING GUIDE AND MOT INSPECTION MANUAL The MOT testing guide and MOT inspection manuals (all classes) was be updated on 11 January 2021. What’s changing? All defect changes within the MOT inspection manual will come into effect and show within the MOT testing service on 1 February 2021.

2. DISCIPLINARY PROCESS From February 2021, DVSA has removed the traditional disciplinary points from this section and will be using predetermined sanctions for each shortcoming. These changes mean: ● less uncertainty for the authorised examiner (AE) and tester, as they will know the outcome straight away ● there are now predetermined sanctions ● it’s a straightforward process for everyone

shortcoming are found in a 5-year period.

results for 3 months.

Examples of shortcomings that will be sanctioned include:

Failure to produce an emissions record when requested may result in disciplinary action being taken.

● non-calibration of MOT equipment ● major pieces of test equipment defective ● mandatory signs and notices not displayed or displayed incorrectly ● a new vehicle record created on the MOT testing service that does not match the presented vehicle Mitigation Where the outcome of the case would normally lead to cessation (other than single offence cessation) DVSA currently consider credit points. As the consideration of credit points is only applicable in this scenario DVSA is removing credit points and moving to a process where in all cases AEs and testers can provide relevant mitigation that will be considered and may lead to a reduction in the sanction that is imposed.

● it frees up our enforcement teams to concentrate on more serious issues

This means that DVSA can apply the same process to all cases, and decisions can be made fairer and more proportionate.

The sanctions

3. EMISSIONS RECORDS

The level of the sanction depends on the severity and the number of times the same shortcoming has been identified.

Issuing of emissions records

Level 1 – Give advice. Level 2 – Issue temporary suspension notices – this is a new sanction. DVSA will stop testing at a site if the shortcomings found impact the quality of testing. The site will be prevented from testing, until the shortcomings are rectified. Level 3 – Start a disciplinary repute case. A formal disciplinary repute case will start when multiple occurrences of the same

42 WWW.SMTA.CO.UK

A record of the emissions test does not need to be issued to the customer with every test. However, the record must be retained in all cases and must be produced if requested. If the vehicle passes the test, the emissions record only needs to be issued to the customer if requested.

4. CALIBRATION OF EQUIPMENT Since 31 October 2020, calibration of equipment became mandatory again and testing must stop if a piece of equipment falls out of calibration. As part of the new disciplinary process, DVSA will suspend testing if uncalibrated equipment is found during a site visit. You will not be able to resume testing until the equipment has been calibrated.

5. CONNECTED EQUIPMENT KEYS Connected equipment currently only applies to class 4,5 and 7 testing stations. The way MOT connected equipment keys are requested has changed. Previously keys were ordered via an email to the MOT Admin hub – they are no longer able to provide keys. Ordering a key AE designated managers (AEDM), AE delegate (AED) and site manager roles can request keys using the links on the ‘Vehicle testing station’ page. You must get the key before you install your equipment. You can read full details on how to request a key in the MOT approved testing equipment guidance.

6. ANNUAL ASSESSMENTS

Retention of emissions records

As a result of the continued coronavirus pandemic, DVSA has decided to extend the annual training year. You will now have until 30 April 2021 to complete this year’s annual training and assessment.

You must keep emissions records for all test

Read the full report at www.gov.uk

If the vehicle fails the test, the emissions record must be issued to the customer.

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GLASGOW BRANCH: Address: Unit B & C, Tay wood Enterprise Centre,Duchess Place, Rutherglen, Glasgow, G73 1DR, UK WWW.SMTA.CO.UK 43

You can judge a car You can judge a car Youby canits judge a car cover by by its its cover cover

SCOTSURE

SCOTSURE WARRANTY SCOTSURE Scottish Motor Trade Association WARRANTY WARRANTY

Scottish Motor Trade Association Scottish Motor Trade Association

manual manual gearbox gearbox manual gearbox

starter starter motor motor

alternator alternator

£946 £946 £946 turbo charger fuel injection £1023 £477 gearbox £1491 £1023 £477 automatic gearbox £1491 £477 £1023 automatic automatic gearbox £1491

ignition system ignition system

fuel injection fuel injection

ignition system alternator £376 £406 £394 £376 £406 £394 £376 £406 £394 starter motor

Builds customer confidence in their vehicle and

strengthens relationships business Builds customer confidence inwith their vehicle and u Builds customer confidence in your their vehicle and strengthens relationships withwith your business strengthens relationships your business u

Treat warranty as a profit opportunity, not a cost

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Warranty will protect your customer, your business and your margin

Warranty willprotect protectyour your customer, your business and your margin Warranty will customer, your business and your margin

Market leading products and back-up

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All Scotsure Warranties are fully underwritten

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ENCOURAGE - PROMOTE & PROTECT

Established 1903

ENCOURAGE - PROMOTE & PROTECT ENCOURAGE - PROMOTE & PROTECT

Established 1903 Established 1903

Why do I need an extended car warranty? No matter howImuch you spend preparing a vehicle for sale it is impossible to predict many failures these days. A component failure that is do need extended car warranty? WhyWhy do Iand need anan extended car warranty? covered paid for under warranty will avoid unnecessary time and stress for you. The warranty can also provide you with the advantage No matter how much you spend preparing a vehicle for sale it is impossible to predict many failures these days. A component failure that is

that how the customer does not have to bewill asked tounnecessary pay forsale a repair, and option to have the vehicle repaired either back with or wherever No matter much spend preparing aavoid vehicle for ittime is impossible to many failures these days. A component failure that is covered and paidyou for under warranty andthe stress forpredict you. The warranty can also provide you with you, the advantage is most convenient. covered and for under will timeand andthe stress fortoyou. The can also provide you you, withor the advantage that thepaid customer doeswarranty not have to beavoid askedunnecessary to pay for a repair, option have thewarranty vehicle repaired either back with wherever that theis customer does notbecoming have to be asked to pay for a repair, andcan theoften option the vehicle with wherever most convenient. With distance selling more and more common vehicles endtouphave many miles awayrepaired from the either selling back dealer. Theyou, vital or backis mostup convenient. and convenience a warranty means having the claimcan handled you not having to directly dealdealer. with, orThe pay,vital a third With distance selling that becoming moreoffers and more common vehicles oftenfor endyou up and many miles away from the selling backparty garage for repairs.

up and convenience that a warranty offers means havingvehicles the claimcan handled you you miles not having directly with,dealer. or pay, The a third With distance selling becoming more and more common oftenfor end upand many awaytofrom thedeal selling vital backgarage forthat repairs. up andparty convenience a warranty offers means having the claim handled for you and you not having to directly deal with, or pay, a third party garage for repairs.

Why should I choose Scotsure? Scotsure has been providing warrantiesScotsure? from its offices in Edinburgh since 1982 and is wholly owned by the Scottish Motor Trade Why should I choose

Association. has no share holders and profits back intosince the motor industry. hasScotsure been providing warranties from itsall offices ingo Edinburgh 1982 and is wholly owned by the Scottish Motor Trade WhyScotsure should I choose Scotsure? Association. Scotsure has no share holders and all profits go back into the motor industry.

Scotsure has been warranties from its offices Edinburgh since entirely 1982 and is wholly owned by the Scottish Motor Trade Scotsure has aproviding strong reputation for customer servicein and is administered from our offices in South Queensferry. Association. Scotsure has no share holders and all profits go back into the motor industry. Scotsure has a strong reputation for customer service and is administered entirely from our offices in South Queensferry.

Ask about a Scotsure Warranty today! Ask about a Scotsure Warranty today!

SCOTSURE

WARRANTY SCOTSURE Scotsure has a strong reputation for customer service and is administered entirely from our offices in South Queensferry.

Ask about a Scotsure Warranty today!

WARRANTY

Scottish Motor Trade Association

SCOTSURE

Scottish Motor Trade Association

WARRANTY

Scottish Motor Trade Association

SMTA Auto Insight – Issue 04

Articles inside

WHAT’S IN MY GARAGE

COX AUTOMOTIVE