11 minute read
SWOT
Simon Harris > SH Head of valuations, UK Vehicle Data Mark Jowsey > MJ Head of TCO AutoTrader Martin Ward > MW Manufacturer relationship specialist Jon Wheeler > JW Head of vehicle valuation services, CDL Vehicle Information Services
Strengths, weaknesses, opportunities and threats of four rivals are analysed by the Fleet World quartet of industry experts
AUDI Q5 • BMW X3 • GENESIS GV70 • MERCEDES-BENZ GLC
Audi Q5 40 2.0TDI S Line
STRENGTHS
SH Perhaps the most conventionally attractive of this group, with clean cut lines and a solid, high-quality interior. MJ Consistent and competent with a comfortable ride, Q5 has a quiet refined cabin. Stable Res help underpin success. MW Looks good, value for money, plenty of standard equipment on all models. JW A solid choice for any user, a very well finished interior, cutting edge tech and great driving characteristics.
BMW X3 xDrive20 2.0d M Sport
STRENGTHS
SH Perhaps the best known car of its type, and a class benchmark in many areas, including efficiency and driver appeal MJ Delivers SUV flexibility yet with a dynamic drive that gives it a saloon car feel. MW It’s a BMW, so of course it will do well. X3 has always been
WEAKNESSES
SH Q5 was facelifted in 2021,
popular with fleets and much sought after on the used market. JW Dynamic, frugal, engaging and loaded with tech – the wellestablished X3 is the most costefficient model is this line-up.
WEAKNESSES
SH Apart from possible supply but probably feels longer in the tooth than any of the cars in this group, plus it looks expensive. MJ The MMI controller has been removed, so touchscreen means eyes off the road longer. Handling is not the most dynamic. MW The Q5 has never been a drivers’ car – a bit dull to drive JW Expensive and not as engaging as some competitors.
OPPORTUNITIES
SH Rarer than rivals, so could be appealing for those who don’t want to make an obvious choice, while the Genesis is a step too far. MJ Q5 reputation is positive, SUV volume in this sector remains strong and Res are stable. MW So much going for the Q5, it has everything you’d ever need in a large SUV.
issues, there is little against the X3. Updated in 2021 it still looks and feels fresh, although rivals are also good. MJ The 2.0-litre diesel unit can be a little noisy when driven hard. But generally, it is hard to fault. MW X3 has grown over the years, is it just getting too big now? It’s now larger than the original X5. JW The stiffer suspension set-up is not to everyone’s taste and the high list price is getting close to the ceiling for its segment.
OPPORTUNITIES
SH Tough to single out opportunities for a dominant player in the market, but BMW’s new discipline in sales volume might make the X3 more appealing than before. MJ Tough sector competition, but BMW continues to attract new clients. MW Being lighter and more efficient than competitors, the X3 will appeal to even more user-choosers. JW A great success story for the brand. With the addition of electrified powertrains there’s a solution for fleets and private buyers.
THREATS
SH Probably the strongest proposition here but, like the others, being diesel could be vulnerable to future local clean air zones. MJ In this sector diesel makes perfect sense at high mileages, but BMW’s iX3 BEV is sure to take sales if availability allows. MW X3 is more practical than plush, which may put some off. JW In such a competitive sector it’s hard to keep on top with so many models fighting it out over price point and market share.
JW Well established as one of the most popular premium SUVs in the market. If Audi can get physical vehicles on UK soil, it’ll pull volume away from key competitors.
THREATS
SH As the third-placed model of the German three, Audi must also feel vulnerable to Volvo, Jaguar, Alfa and others. MJ Declining A4 sales may be reducing the flow of prospects. Huge competition way beyond just those here. MW Always been ultra-popular, new and – especially used – a solid choice, but are there just too many around now? JW New players in the segment are entering the market with cheaper, attractive, and well spec’d models that are capturing consumer interest.
Genesis GV70 2.2D Sport Line
STRENGTHS
SH A high-quality package for a new brand with eye-catching looks and strong performance. MJ Excellent levels of equipment and a very high-quality interior. The five-year warranty and roadside assistance package will appeal to many. MW High quality, and a high
Mercedes-Benz GLC220 AMG Line
STRENGTHS
SH Special feeling interior design makes it stand out from the crowd and advanced diesel engine is strong on refinement. MJConservatively styled, but with a purposeful SUV look, the interior is a quality environment, and the brand is highly aspirational. MW There’s a GLC for everyone level of standard specification. JW Stylish, appealing and offers buyers a luxury alternative to the premium German rivals. High end interior and an aggressive price point stand out.
WEAKNESSES
SH Hard to become established
– a great looking SUV, with good design throughout. JW Premium quality and style, the GLC is quiet and comfortable with competitive running costs and a high-quality interior.
WEAKNESSES
SH Not quite as good on CO2 as in the cut-throat premium sector when so much rests on image. Promising early signs though. MJ Higher kerbweight means a solid rather than sporty feel. Lower mpg and higher CO2 mean bigger costs and increased BIK/Employers NI and VED. MW 2.2 Diesel engine not the smoothest and Genesis will have an uphill struggle for recognition. JW High CO2 figures, insurance ratings and lower claimed mpg figures than the key rivals hold it back. No electrified option yet.
OPPORTUNITIES
SH Online sales model, keen pricing and fair residuals. Genesis plans to keep used cars off the market until 2024, giving greater control of RVs. MJ A valid alternative to a Jaguar or German product. Genesis will rapidly evolve into an EV-brand.
the X3, which increases the relative BIK tax burden for drivers, despite a P11D price advantage. MJ Multimedia screen is not the biggest. Nor the freshest product, with its replacement due to arrive fairly soon. MW Servicing costs can be higher for a Mercedes-Benz than its rivals, best to check before you buy. JW Starting to look a little dated and not quite as refined as some of the modern competition, which is reflected in the GLC’s residual values.
OPPORTUNITIES
SH Pence per mile depreciation and SMR a little lower than for the X3, the former partly because of a lower P11D. MJ Brand loyalty will support sales until the new car arrives. MW A handsome car that stands out in the crowd. Its design makes it a real crowd-pleaser. JW The potential of some great deals as the model approaches end of life will certainly attract consumers. Expect a new GLC towards the end of the year.
THREATS
SH Mercedes-Benz’s strategy of dominating the premium sector has weakened RVs a little. A difficult area to turn around. MJ GLC drivers are very likely to choose another, but this group shows that the competition is very strong. MW Practicality and driving dynamics maybe not as good as others in this sector. JW The GLC was once the go-to model, but it’s tough to compete with the newer competitors when the model is so late on in its lifecycle.
MW Genesis offers hassle-free ownership with five-year warranty, breakdown cover, collection and delivery servicing. JW As a well-established brand in global markets Genesis has a natural growth approach in the UK.
THREATS
SH While it appears good value and well equipped – offsetting its high-ish CO2 emissions –GV70 remains vulnerable to fleet CO2 caps. MJ Rejecting a traditional Dealer network model may concern some prospects. MW Breaking into any sector with a new brand or name is always going to be difficult, however good the product is. JW The UK premium SUV market is dominated by the Germans, making it difficult for the GV70 to gain traction.
SWOT
Simon Harris > SH Head of valuations, UK Vehicle Data Mark Jowsey > MJ Head of TCO AutoTrader Martin Ward > MW Manufacturer relationship specialist Jon Wheeler > JW Head of vehicle valuation services, CDL Vehicle Information Services
THE VERDICT
SH 1st MJ 1st MW 3rd JW 1st
SH 2nd MJ 4th MW 2nd JW 2nd
SH 4th MJ 3rd MW 1st JW 3rd
SH 3rd MJ 2nd MW 4th JW 4th BMW X3 xDrive20 2.0d M Sport
OTR: £46,970 P11D: £46,370 Fuel: 47.9mpg CO2: 154g/km RV: £21,996 (47.44%) BiK: 35% SMR: £3,723 Fuel costs: £8,615 Insurance: £4,893 Finance: £6,260 NI: £6,655 VED: £1,505 Cost per month: £1,558 Standard equipment: DAB, BT, USB Apple CarPlay/Android Auto Automatic climate control Front and rear parking sensors Heated front seats M Sport suspension
Options: Metallic paint: £695 Harman Kardon audio: £820 Panoramic roof: 1,190 Technology plus pack: £2,400
Genesis GV70 2.2D Sport Line
OTR: £41,800 P11D: £40,850 Fuel: 40.0mpg CO2: 186g/km RV: £18,444 (45.15%) BiK: 37% SMR: £3,380 Fuel costs: £10,541 Insurance: £6,063 Finance: £5,515 NI: £6,257 VED: £1,875 Cost per month: £1,558 Standard equipment: DAB, Bluetooth, USB Apple CarPlay/Android Auto Multi-zone air conditioning 14.5-inch Navi screen Sport suspension Cat 1 alarm
Options: Innovation pack: £4,190 21in alloys: £1,310 Metallic paint: £750 Sunroof: £1,460
Audi Q5 40 2.0TDI S line
OTR: £45,445 P11D: £44,835 Fuel: 44.8mpg CO2: 165g/km RV: £20,603 (45.95%) BiK: 37% SMR: £3,028 Fuel costs: £9,419 Insurance: £4,893 Finance: £6,053 NI: £6,868 VED: £1,535 Cost per month: £1,558 Standard equipment: DAB, BT, USB Apple CarPlay/Android Auto 12.3-inch touchscreen Amazon Alexa integration Three-zone electronic climate control Reversing camera
Options: Storage package: £225 City Assist pack: £500 19-inch alloy wheels: £1,750
Mercedes-Benz GLC220 AMG Line
OTR: £45,210 P11D: £44,600 Fuel: 44.8mpg CO2: 166g/km RV: £21,844 (48.98%) BiK: 37% SMR: £3,079 Fuel costs: £9,419 Insurance: £4,749 Finance: £6,021 NI: £6,832 VED: £1,535 Cost per month: £1,512 Standard equipment: DAB, Bluetooth, USB Apple CarPlay/Android Auto 10.25-inch touchscreen Keyless go Reversing camera Active bonnet
Options: Metallic paint: £715 Special paint: £925 Trailer coupling: £750
It is easy being Green, with Tusker
More and more, organisations are realising the need to reduce their environmental footprint and offering a Tusker salary sacrifice scheme enables the company to provide the opportunity for mass market employees to access lower or zero-emitting vehicles.
The scheme works very well with electric cars, with many more affordable than their diesel or petrol equivalent models. Not only is the scheme therefore helping lower the UK's emissions, but it’s also supporting the Government’s Road to Zero strategy.
Tusker’s salary sacrifice scheme supports the recruitment and retention of staff too, which in the current market is so important for businesses. With increased competition in the workplace for employees, companies providing a salary sacrifice scheme can retain staff but also attract new talent because of the power of the salary sacrifice offering.
With Tusker, the scheme also provides protections for employees with comprehensive early termination, redundancy, and long-term sickness protection so employees or employers are not penalised in the event of unforeseen changes.
With a current fleet of over 20,000 cars, Tusker has been providing this employee benefit to a growing customer base for more than 14 years. We have over 900 salary sacrifice customers including NHS Trusts, Councils, and many corporate businesses including British Airways, EDF and AstraZeneca.
Contact Tusker Team T 0333 400 1010 E hello@tuskerdirect.com W www.tuskercars.com
Education is the key to salary sacrifice success
There are three words that are key to ensuring a successful green salary sacrifice scheme: education, education, education. This is fundamental to ensuring maximum employee engagement and encourages optimal employee take-up. Our electric vehicle salary sacrifice schemes have around 12% employee take-up in the first year, compared to an average industry take-up of around 6%. Why do we get double the take-up of our competitors? Because we put so much emphasis on educating employees in the types and models of EVs that are available to them, including, obviously, cost, tax and, just as importantly, range.
To ensure that we provide employees with all the relevant information they need to make the right decision regarding their, typically, first electric car, we fact check all the range information supplied by the OEMs. You'd be surprised how often this is overstated by as much as 30% - which can be the vital difference between making the journey with juice to spare, and running out of power frustratingly short of your destination. We’d like to see manufacturers break range down into two categories: for motorway driving and for urban driving, as this would give a more realistic picture of the actual range that was achievable, and do much to remove employees’ range anxiety.
Contact Andrew Leech T 0300 302 0626 E Andrew.Leech@fleetevolution.com W www.fleetevolution.com/
