AM - Automotive Management magazine April 2015 preview

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www.am-online.com April 2015 £8.00

LONDON MORGA N / P4 4

AUTOMOTIVE MANAGEMENT

Giving car customers the Savile Row treatment C U S T O M E R S AT I S FA C T I O N / P 31

MAKE THE BUYER YOUR STRONGEST SALESMAN Focus on what’s best for customers and a loyal army of advocates will sell your products for you

BENTLEY / P23

CUSTOMER SERV ICE / P4 0

Why the luxury carmaker’s SUV needed a new CI

From free food to saving lives – 10 amazing things dealers do for customers

NEW CARS / P78

Our round-up from this year’s Geneva Motor Show


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Demanding targets make customer satisfaction more important than ever

R

umblings about the true strength of the UK new car market continue, and with them come accusations that manufacturers have lost touch with the real world. Much of the year-on-year growth recorded so far in 2015 has been in the fleet and rental sectors, but as March draws to a close the private market’s figures are sure to suggest some growth as that crucial Q1 volume-related bonus looms near. Several dealers have told us their 2015 targets have been set too high, yet they cannot afford to miss them and the extra pot of cash they bring. Such challenges were a hot topic of discussion at our recent AM Round Table, featured on page 74, and the way certain brands approach target-setting is also reflected in the results of the latest NFDA Dealer Attitude Survey on page 15. With yet more sales growth being demanded by carmakers, maybe now is the time to review and hone the customer experience delivered by your dealerships. Our insights into customer advocacy on page 31 and page 37 show that consumers now expect a joined-up journey, digitally and physically, when searching for their next car and purchasing it. It may challenge some traditional sales processes, however the rewards are there for the taking. In this digital age, consumers are prepared to applaud the dealers getting it right with reviews, recommendations and shares reaching hundreds of others. Isn’t that worth as much focus as your volume bonus? The editorial team Email: am@bauermedia.co.uk Website: www.am-online.com Twitter: @amchatter LinkedIn: am-online.com/linkedin

ouR ExpERT conTRIBuToRS Rupert pontin is head of valuations at Glass’s. with more than 29 years’ experience in the motor trade, he has worked for companies such as BcA and car Shop, as well as running his own successful independent used car business. In this issue (p27), he explains how residual values will be one of the main drivers behind increased uptake of electric vehicles. prof Jim Saker As director of the centre of Automotive management at loughborough University’s Business School, Saker is a key figure behind the drive for management recognition and skills in the motor retail sector. This month (p53), he says connected cars may shift the balance of power from dealers to manufacturers, but what will they do with it?

AM Af ter sa Conferenc les e

Book ticke t am-onlinse today at: af tersales .com/ 2015 Jeremy Bennett Editor

Tim Rose Managing editor

Danielle Bagnall Senior reporter

April 16, 2 015 am-online.com April 2015 5


In this issue April 2015 37 CUSTOMER ADVOCATES GET YOUR BUYERS TO SHARE THE LOVE

FACE TO FACE LONDON MORGAN

Your news

9

News digest This month’s round-up includes Kia and Vertu warning against forcing the market via discounting and pre-reg; flotations for Marshall Motor Group and Auto Trader; and Mitsubishi speaks against updating dealers’ corporate identity.

Market intelligence

15

NFDA survey

16

New car registrations

17

Analysis

23

27

Mercedes-Benz knocks Land Rover off the top spot in the dealer satisfaction league.

Retail registrations returned to growth in February, but year-todate were still down on 2014.

Dealer profitability The average UK motor dealer made a loss of £59 for the month of January.

6 April 2015 am-online.com

44

Why Bentley has built a new home for its first SUV Bentley aims to widen its audience with the launch of its first SUV, the Bentayga, next year and the luxury carmaker wants its 22 dealers to upgrade to a new corporate identity before then.

Do used car sales hold the key to EV adoption? Glass’s Rupert Pontin explains how residual values will be one of the main drivers behind increased uptake of electric vehicles.

Insight

31

37

Building trust with your prospects

To set your customers on the road to recommending you and your products, first you have to give them something to recommend.

40 44 48 50

Turn your buyers into customer advocates

Focus on what is best for your customers and they will sell your products for you.

10 amazing things dealers have done for customers Free breakfasts, international rescues, and surprise birthday cakes – just some of the ways dealers show they care about customers.

London Morgan’s tailored customer experience

London Morgan has turned its small size to its advantage with highly focused customer service and imaginative promotions.

AM & IMI People conference update

At this year’s conference, the IMI will launch a 10-point guide to help dealers keep their staff engaged.

AM Poll

Most dealers run or are considering a reward scheme that encourages customers to share their experiences.


For the latest motor retail industry news, visit am-online.com Sign up to get AM news daily by email: am-online.com/newsletter

DEALERS AND SUPPLIERS IN THIS ISSUE:

BENTLEY A NEW CI FOR ITS FIRST SUV

23

78 GENEVA MOTOR SHOW

53 56 68 74

Jim Saker’s view from the business school

82

Smart ForTwo & ForFour

What dealers want

84

Suzuki S-Cross

Getting inside the mind of the digital car buyer

85

Volkswagen Golf

86

Mazda3

Connected cars may shift power from dealers to manufacturers, but what will they do with it?

Dealers tell us what sets a potential supplier partner apart.

Advice from speakers and workshops at the AM & Auto Trader Digital Marketing Conference.

Dealers struggle with ‘artificial’ sales targets

Franchised dealers told a recent AM Round Table that targets from manufacturers are unsustainable.

Showroom

78

Geneva Motor Show

A look at some of the new cars to delight dealers from this year’s Geneva International Motor Show.

With the ForFour, Smart has added four-seat practicality to the cult following of the ForTwo.

Suzuki’s crossover SUV has a sales hill to climb.

VW Group’s MQB platform makes producing cars more efficient, but may also benefit customers and dealers.

Why a high-speed test drive is crucial to sell the lower-powered version of the Mazda hatch.

Coming soon

90

In May’s issue – published April 24

Why Nissan dealers must “shout more” about services to local fleets; what will PCPs do to the used car market; and the Mazda2 reviewed.

ASE .......................................................................17 Audi.......................................................................12 Auto Trader..............................9, 31, 37, 68, 70 BCA..................................................................9, 20 Benfield Motor Group.....................................40 Bentley.................................................................23 Black Horse...............................................32, 38 Boots....................................................................70 Brayleys Cars....................................................45 Bridgestone .......................................................11 CAP.......................................................................11 Carmart ................................................................9 CDK Global.........................................................32 Charles Hurst ...................................................41 Charters Peugeot ........................................... 44 Chrysler ..............................................................11 Donalds Volvo................................................... 44 Experian Automotive......................................32 FLA ................................................................16, 20 Ford ......................................................................12 GForces........................................................31, 37 Glass’s..................................................................27 Harratts Group.................................................75 Hendy Group .....................................................69 HR Owen......................................................42, 69 Inchcape................................................................9 Jeep ......................................................................11 John Clark Motor Group ...............................75 Judge Service ...................................................37 Kia ....................................................................9, 32 Kinghams ...........................................................40 Lifestyle Europe.............................................. 44 London Morgan............................................... 44 Lookers ...............................................................11 Luscombe Group .............................................75 Macrae & Dick ..................................................41 Manheim.............................................................20 Marshall Motor Group .......................9, 42, 75 MG.........................................................................12 Mitsubishi ...........................................................11 Moneyway ..................................................32, 38 NAMA...................................................................20 NFDA....................................................................15 Penton Motor Group.......................................12 Perrys Motor Sales.........................................75 Retail Automotive Alliance .......................... 44 Richard Sanders ..............................................41 Ridgeway Group...............................................37 SGH Martineau .................................................40 SMMT............................................................12, 16 Social Advisors .................................................68 Swansway ............................................41, 56, 75 Sytner..............................................................9, 38 The Car Finance Company...........................11 Unity Automotive..............................................42 Vantage Motor Group..............................11, 42 Vertu Motors .......................................................9 Vospers................................................................11 Whocanfixmycar.com.....................................69

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NEWS DIGEST

T H E N E W S YO U C A N ’ T A F F O R D T O H AV E M I S SE D

11

F O R D A I L Y N E W S , V I S I T: w w w.am-online.com

Lookers Lookers has reported a sixth year of successive profit growth.

T O g E T A M ’ S F R E E D A I L Y N E W S L E T T E R , V I S I T: w w w.am-online.com/newsletter FOLLOW AM ON TWITTER: @amchatter

Discounting will force up sales, warns Kia UK chief

Philpott believes some manufacturers are heavily discounting their vehicles to push units into the market, encouraged by a stronger pound-to-euro exchange

VERTU MOTORS

Vertu Motors has become the latest AM100 car dealer to publicise “an increasing disconnect” between new car registrations reported by the Society of Motor Manufacturers and Traders (SMMT) and the levels of real sales dealers are making to new car buyers. The SMMT’s published figures, which do not split out the number of new cars registered by car dealers, manufacturers and daily rental companies, have clouded over a tightening of trading condi-

MARSHALL MOTOR gROUP

Mg MG is seeking 30 dealers to fill open points created by its growing popularity – sales were up 361% last year.

IN BRIEF

FORECAST

If UK new car registrations rise by more than 1% this year, it will be due to forced sales activity and daily rental sales, not genuine retail sales, Kia Motors UK president and chief executive Paul Philpott has warned.

12

rate: “Manufacturers have spare capacity in mainland Europe and their margins in the UK have

increased because of the exchange rate. “That could have an impact on the new car market here. There are already some big discounts out there,” Philpott said. “The market is forecast to be flat or a slight increase. If it increases by more than 1%, it will be driven by other factors.” n Why manufacturers’ obsession with growing market share cannot continue: Page 74

tions since September 2014. In its pre-close trading statement to the London Stock Exchange, Vertu Motors said franchised dealers had been increasingly engaging in selfregistration of vehicles to achieve the growing volume targets set by vehicle manufacturers, leaving them with brand new cars that they must sell as used stock. As a result of these trends, Vertu’s statement said, its like-forlike private new retail sales volumes grew by only 0.5% in the five months to the end of January, compared with national private

registrations reported by the SMMT as growing by 5.4% in the same period. However, Vertu said its like-for-like gross profit per new retail unit has slightly increased. Days earlier, when announcing Lookers’ record results for the year to December 31, managing director Nigel McMinn spoke of the pressure being placed on dealers by manufacturers to hit “challenging” targets. “Once March is out the way there will have to be a sensible discussion on realistic targets,” he said.

Kia Motors UK president and chief executive Paul Philpott

AUTO TR ADER

Marshall Motor group has officially applied to float on the London Stock Exchange.

Auto Trader has floated on the London Stock Exchange, pricing its shares at 235p. This valued the business at £2.35 billion.

The application states: “The group is the only dealer group in the UK to represent all of the top five prestige (Audi, BMW, Mercedes-Benz, Land Rover and Jaguar) and top 10 volume (Ford, Vauxhall, Volkswagen, Nissan, Peugeot, Toyota, Citroën, Hyundai, Kia and Škoda) brands.” The expected admission date is April 1.

The offer comprised 590 million shares, representing 59% of Auto Trader’s issued share capital. The shares jumped to 266.5p in early trading, hitting a value of £2.6bn, before closing the first day’s trading at 256p. Auto Trader is expected to drive into the FTSE 250 the next time the index is reconstituted.

BCA

BCA is to be acquired by a consortium known as Haversham Holdings, according to reports. Haversham is led by Avril PalmerBaunack and was set up last year to buy “substantial companies and businesses in the UK and European automotive, support services, leasing, engineering or manufacturing sectors”. Private equity firm Clayton Dubilier & Rice acquired BCA in 2009 and has been exploring ways of selling it since an IPO failed last year.

C A R M A R T. C O . U K Steve Edwards, the former chief executive of Hurst Publishing, the business that launched Auto Trader in the UK, has announced the launch of a free-to-list rival website. CarMart.co.uk will go live on August 1.

SYTNER Sytner has beaten household names such as American Express and McDonald’s in The Sunday Times 100 Best Companies to Work For. It came second in the ‘25 best big companies’ category, behind TGI Friday’s, which is a new entry in the countdown. Sytner was number four last year. Inchcape UK is at number eight, up from 17 last year.

INCHCAPE Inchcape has begun construction of a new Volkswagen car dealership in Exeter. The 35,000sq ft showroom and workshop at Matford Green Business Park will rehouse the VW operation later this year from its current base at Marsh Barton. n Snows Group will also relocate Lexus Exeter to Matford Green Business Park from its current site, also at Marsh Barton.

F I AT A N D V W F A C E MP g L AW S U I T An Italian consumer group has launched a new legal action against carmakers over the claimed fuel economy performance of their cars. Altroconsumo has filed a writ of summons against Fiat Chrysler Automobiles and Volkswagen after it carried out an investigation, which it claimed showed consumers were being misinformed by advertised fuel efficiency information.

am-online.com April 2015 9


NEWS DIGEST LOOKERS

Lookers has reported a sixth year of successive profit growth and a record performance in its motor division. For the year to December 31, 2014, revenue increased 23% to £3.04 billion (2013: £2.46bn), operating profit increased 31% to £76.6 million (2013: £58.4m), profit before tax increased to £59.2m (2013: £43.9m). The motor division delivered an increase in profit before tax of 37% to £58.3m, compared with £42.6m in 2013. Lookers’ parts division saw PBT increase to £12.2m (£11.8m). New car retail sales increased 9.2% in 2014 compared with a UK market increase of 9.8%. The group’s fleet business increased by 14.1%, compared with the market’s 8.9%.

VOSPERS

Car dealer group Vospers is to add the Seat franchise to its portfolio for the first time. The family-owned AM100 motor retailer is investing £750,000 into extending its multi-franchised site at Marsh Mills, Plymouth, to accommodate the VW Group brand. At the same time, Vospers is updating its Mazda showroom at Marsh Mills to the latest corporate identity, and investing further in its Ford dealership in Exeter and a site at Truro. n Cox Motor group has acquired a new franchised site in Blackpool. Situated next to its Honda dealership on Lytham St Annes Way, the business is the group’s second Seat dealership and will tie in with its existing Kendal Seat business.

VA N TA g E MOTOR gROUP

Vantage Motor group has acquired David Ian Škoda in Morecambe – its first Škoda dealership – boosting group turnover by £8 million from £215m to £223m and increasing its network of sites to 21. The deal sees Škoda join Toyota, Kia, Citroën, Honda, Hyundai and Lexus in Vantage’s portfolio and follows the group’s acquisition of Honda Bradford in February. The dealership will be rebranded as Vantage Škoda later this year and will undergo “significant redevelopment” to reflect the manufacturer’s new corporate identity. All staff are being retained.

T O R E A D A M ’ S D A I L Y N E W S L E T T E R , V I S I T: w w w . a m - o n l i n e . c o m / n e w s l e t t e r

MITSUBISHI

Manufacturers are getting carried away with the recent up-turn in the market by getting dealers to invest in new corporate identities (CI), says Mitsubishi managing director Lance Bradley (pictured). Manufacturers such as Renault, Hyundai, Seat, and Bentley recently announced that they have asked dealer networks to invest in a new CI, and Bradley feels this is down to recent industry success. “I’ve never heard of a customer go into a showroom and say; I really like the car, I really like the way you’ve dealt with me, and the price is great, but I can’t buy a car off those tiles – they just don’t care,” he said. “We have made a big point of not changing things; we don’t push dealers to spend money on their premises, we just think it is important that a standard is maintained – more house-keeping rather than a change of CI. “Our dealer network had a fantastic year last year, with sales up 75%, and dealers are now more profitable than they have ever been with the franchise.”

PEOPLE NEWS STEVE z ANLUNgHI Jeep has appointed Steve Zanlunghi head of the Jeep brand for the EMEA (Europe, Middle East and Africa) region. He replaces Chris Ellis, who will take on new responsibilities within Fiat Chrysler Automobiles (FCA). Zanlunghi will be responsible for all sales, marketing, product, and network development operations for the Jeep brand, alongside his current role as managing director of Fiat Chrysler Automobiles UK, with operational responsibilities for Ireland.

NIgEL CLIBBENS CHRYSLER

Chrysler franchisees have been issued two years’ notice that the brand will withdraw from the UK in 2017. Chrysler UK said the latest possible date that the brand will be operating in the UK will be March 15, 2017, and its network of car dealers has been given 24 months’ notice of termination. The exit was widely expected, as Fiat Chrysler Automobiles UK, the parent group, had begun promoting Jeep as a separate entity over the past 24 months after years of trading from Chrysler Jeep dealerships. Chrysler’s product line-up, including the Ypsilon supermini, Delta family hatchback, 300C large saloon and Grand Voyager MPV, have struggled to garner significant interest among UK consumers. In 2014, Chrysler’s UK registrations totalled 1,982 units.

USED CAR PCPs

Used car personal contract purchase (PCP) finance products will make it easier for retailers to compete with new car deals, according to independent car information experts CAP Automotive.

The rise in new car registrations in recent years has been largely fuelled by low-cost PCP schemes, enabling more private motorists to afford a new car. However, this has come at a cost for many dealers, who report difficulty in selling younger used cars without painful discounting that eats into profit margins – this is because the brand new car is often more affordable through a PCP deal. CAP says it has meant a constant worry for franchised dealers who pre-register cars to meet manufacturer targets, because they find themselves carrying late, low-mileage stock that is harder to sell than a new car. The introduction of used car PCPs, with low or zero deposit schemes and more affordable monthly rates, will help to level the playing field, it says.

Nigel Clibbens has joined The Car Finance Company as its chief financial officer. Clibbens joins having spent more than 20 years working with Lombard (RBS Group), where he was latterly the chief operating officer. He is currently the chairman of the Finance and Leasing Association. Mark Smith, The Car Finance Company managing director, said “Attracting an industry figure of Nigel’s esteem is clearly a big deal for us. It is a testament to the hard work of everyone and demonstrates that sticking to core customercentric values attracts the very best.”

gUY jONES Guy Jones has joined the senior management of tyre firm Bridgestone. Jones was previously sales and marketing director at MG Motor UK, where he had worked since 2009. Before that, he served as marketing director of Kia Motors UK and brand manager at Bentley. His role as north region business development director will be to manage the delivery of a number of key projects as part of a process to transform the sales and profitability of the European business.

am-online.com April 2015 11



MARKET INTELLIGENCE 16

Registrations

New car retail registrations rose 3.4% in February compared with 2014, but are down 2.6% year-to-date.

17

Dealer profitability

The average dealer made a loss of £59 in January, a deterioration of over £9,000 on the profit made for the same month in 2014.

THE NEWS IN DEPTH

20

Used cars

Sponsored by

The average value of all cars was £5,567 in February, 2% ahead of February 2014, but down £261, or 4.5%, compared with January.

M A N U FAC T U R ER S

Mercedes-Benz tops dealer satisfaction survey German brand knocks Land Rover off the top spot in NFDA Dealer Attitude Survey 2012. Honda on 5.5 and Subaru on 6.6 have also Mercedes-Benz has scored the highest in the both seen marked progress in this survey, up 0.9 Winter 2015 National Franchised Dealers Assopoints and 0.8 points respectively.” ciation Dealer Attitude Survey to the question The franchises that have seen the most decline ‘how would you rate your manufacturer overall?’ since the summer are Citroën (down 1.5), Škoda The result follows Mercedes’ success at the (down 1.3) and Peugeot (down 1.2). AM Awards. It took the Franchise of the Year Peugeot’s score has for some time been Award, voted for by franchised dealers. beneath average but the score of 4.9 for this The NFDA received 1,554 responses – or 38% survey moves them to third from bottom in the of total dealer networks covered – in its twicetable. yearly survey into dealers’ relationships with most improvement, both increasing their scores The NFDA reports that, based on survey manufacturers. by 1.5 points to 7.0 and 6.2 respectively. results, dealers in general are dissatisfied with Twenty-eight franchises were surveyed. “This puts Renault firmly above the average the target process with their manufacturers. Mercedes achieved a score of nine out of 10. Kia for the first time in many surveys. The improve“Also, there is a lack of confidence in the was in second place, with Suzuki and Audi in ment is also marked by the fact that it has manufacturers’ volume aspirations and that the third and fourth place. Renault and Volvo have increased its score by a full three points since situation is significantly worsening,” said seen the most improvement, with the French last winter. Robinson. brand seeing an above average score for the “Volvo has had a much more erratic survey “Some dealers feel manufacturers are first time in several years. history. Its current score puts it just below imposing stiff targets as they aspire to higher Škoda dealers returned the lowest score (4.1) average, much improved from its summer volumes as the new car market grows”. to the same question. survey score when it was towards the bottom of ■ Read dealers’ views on targets in the “Last winter, the score was 7.8, comfortably the survey for this question. AM Round Table report on Page 74. above the average score of 7.2. Last summer, “However, its scores have moved up and down ■ Read each manufacturers’ NFDA Dealer the score fell drastically to 5.4 and this has quite significantly over the past few years, even Attitude Survey results at am-online.com/ami. continued for this survey. The score suggests scoring above average back in the summer of the network has significant issues,” said NFDA director Sue Robinson. Among those issues, the NFDA H O W W O U L D Y O U R A T E Y O U R M A N U F A C T U R E R O V E R A L L? noted, was the pressure to hit targets and pre-register vehicles. Seat has the next lowest score, at 4.8. This is 0.4 points lower than in summer 2014, and 0.9 points lower than last winter, when its score peaked. “It cannot be ignored that, like Škoda, Seat is from the same manufacturer stable and it also should be noted that Volkswagen, although performing close to the average at 6.7, fell by 0.4 points from the summer and 1.7 points from last winter,” said Robinson. Also at the bottom are Peugeot, which scored 4.9, and Alfa Romeo at 5.0. Both have seen their scores fall since the summer; Peugeot by 1.2 points and Alfa Romeo by 0.9 points. Renault and Volvo have seen the

“This question has one of the lowest average scores in the survey”

Source: NFDA Dealer Attitude Survey

am-online.com April 2015 15


market intelligence F i n A n C e S TAT S

n e w C A R R e G i S T R AT i o n S

loans by FlA members to retail buyers of new cars rose by 11% year-on-year in the 12 months to January, hitting a record 76.2% of the total. however, January volumes fell 3% year-on-year. Geraldine kilkelly, head of research and chief economist, said consumer new car finance in the year to January grew faster than private new car sales. despite the quiet start, she expects retail car finance to grow in the year. Consumer used car finance volumes grew 3% in January and by 12% in 12 months (page 20).

Retail new car registration figures returned to growth in February, but the year-to-date figure is still down on 2014. new car retail registrations increased by 3.4% in February compared with last year. The yearto-date figure is, however, down by 2.6%. last month, retail sales were down 5.1%, the first fall in four years. however, the overall market was up 6.7% year-on-year, largely due to fleet registrations. Figures released by the Society of Motor Manufacturers and

Traders showed the uk new car market grew for a record 36th consecutive month in February. in February, traditionally one of the quietest months of the year ahead of the March plate change, the market grew 12% year-on-year with 76,958 new cars registered, a year-to-date rise of 8.3%. Fleet buyers drove this increase, with registrations up 19.9% in February, while the private market saw an increase of 3.4%. dealers AM has spoken to in recent weeks have, however, reported they have

J A n u A R y M o T o R F i n A n C e M A R k e T: n e w C A R S new cars bought on finance by retail buyers through dealerships Jan-14 Change on 3 months to previous year Jan 2014 Value of advances (£m) 821 + 3% 2,713 number of cars 51,932 – 3% 167,232 new cars bought on finance by businesses through dealerships number of cars 32,344 +6% 104,123

12 months to Jan 2014 14,107 895,798

Change on previous year +16% +11%

+2%

456,977

+12%

2015

Private 98,

Private 10

2014

0

50,000

FinAnCe oFFeRS Audi’s ‘open season’, featuring three models with fold-down roofs, was launched in chilly January and is scheduled to continue until the end of June (see right). The manufacturer is running PCP and contract hire programmes on the A3 and A5 Cabriolets, and TT Roadster. All are 36-month deals with a charge for excess mileage over an annual 10,000. MG also carries over its offers from Q1 into the spring quarter. The entry deal is a 36-month PCP on the MG Form Sport, which requires a deposit of £2,785.22, then £129 a month.

The full list of manufacturers’ finance offers can be found at www.am-online.com/offers

16 April 2015 am-online.com

Top finance offers for retail buyers Model

Finance type

For a searchable list of manufacturers’ finance offers, go to www.am-online.com/offers Deposit

Term

Audi A3 Cabriolet 2.0 TDi Sport PCP * £5,558.06 † 36 months A3 Cabriolet 2.0 TDi Sport contract hire ** £2,094.00 +vat 36 months A5 Cabriolet 2.0 TDi S line PCP * £7,437.82 †† 36 months A5 Cabriolet 2.0 TDi S line contract hire ** £2,514.00 +vat 36 months TT Roadster 2.0 TDi Sport PCP £6,285.18 36 months TT Roadster 2.0 TDi Sport contract hire ** £2,394.00 +vat 36 months Annual mileage capped at 10,000: excess per mile * 7.2p ** 6p. Dealer deposit contribution † £500 †† £4,000 MG MG3 Form Sport PCP £2,785.22 36 months MG3 Style PCP £2,825.94 36 months MG3 Style Lux PCP £2,840.33 36 months MG6 GT S diesel Personal lease £1,233.36 36 months MG6 GT SE diesel Personal lease £1,315.32 36 months Vauxhall Corsa 1.2 3dr Limited Edition PCP £2,787 * 24 months Corsa 1.2 3dr Excite PCP £2,751 ** 24 months Adam Jam 1.2 PCP £2,295 *** 24 months Astra Excite 1.4 5dr HP £4,995 **** 60 months Deposit contributions: * £600 ** £500 *** £1,340 **** £2,000 Volkswagen Take up 1.0 3dr PCP † £2,557.31 * 36 months Polo 1.0 S 3dr PCP † £2,283.50 36 months Beetle Cabriolet PCP † £5,276.78 36 months Golf 1.2 TSi BMT S 3dr PCP † £4,351.56 ** 36 months Golf 2.0 TSI GTI 3dr PCP †† £7,126.52 36 months Deposit contributions: * £1,000 ** £750. Annual mileage cap 10,000: excess per mile † 4.4p †† 7.2p

Mon

R e G i S T R AT i o n S b y M A R k e

Source: FLA

Change on previous year +9% +5%

been pressured to ‘pull forward’ registrations from March and are under intense pressure to preregister vehicles. The uk car market’s sustained expansion is the longest ever seen, beating the previous record of 26 months set in the late 1980s. The number of new cars registered has risen every month since March 2012, as the uk continues to bounce back from the recession and consumer demand has been driven by new products and attractive finance deals.

Monthly payment

Final payment

APR

Offer ends

£349 £349+vat £399 £419+vat £399 £399+vat

£14,772.58 n/a £15,732.00 n/a £16,198.45 n/a

7.0% n/a 7.1% n/a n/a n/a

30/06/15 30/06/15 30/06/15 30/06/15 30/06/15 30/06/15

£129 £139 £149 £205.56 £219.22

£3,263 £3,375 £3,578 n/a n/a

6.9% 6.9% 6.9% n/a n/a

30/06/15 30/06/15 30/06/15 30/06/15 30/06/15

£149 £139 £99 £189

£7,500 £6,251 £6,225 n/a

2.9% 2.9% 2.9% 0%

01/04/15 01/04/15 01/04/15 01/04/15

£95 £129 £215 £215 £275

£3,964.50 £4,826.11 £7,485.30 £6,356.15 £12,288.35

7.9% 7.7% 7.4% 7.5% 7.2%

31/03/15 31/03/15 31/03/15 31/03/15 31/03/15


Sponsored by

N T H ly v o l U M E p E r C E N T A G E G r o w T H

AdvErTiSEMENT proMoTioN Source: SMMT

blAck horse comment By Chris Sutton, managing director, Black Horse

E T S E G M E N T y E A r -T o - d A T E Source: SMMT

8,527

Fleet 135,549

01,180

Fleet 113,241

100,000

150,000

Business 7,738

Business 8,877

200,000

250,000

dEAlEr Kpis Source: ASE

Key ratio

Net profit as % sales Overhead absorption Used: New sales Expenses as % gross Sales per salesman Used vehicle stockturn (days) Return on used car investment Overall Labour efficiency Service gross profit % on labour Service expenses as % gross Hours per retail job card Parts gross profit Parts expenses as % growth Parts stockturn

rolling 12 months Jan 2015 1.40% 54.7% 0.87:1 62.7% 182 55 77.7% 82.0% 75.6% 75.6% 1.64 22.3% 44.6% 7.6

rolling 12 months Jan 2014 1.49% 56.7% 0.90:1 62.1% 193 56 80.1% 81.2% 75.8% 75.8% 1.65 22.4% 44.4% 7.5

Benchmark

3.0% 80% 1.5:1 50% 150 45 100% 100% 75% 75% 2.5 22% 40% 8.0

The average UK motor dealer made a loss of £59 for the month of January, a deterioration of over £9,000 on the profit made for the same month in 2014, according to data from ASE. This has produced a significant drop in the rolling 12-month return-onsales ratio, which has fallen to its lowest level in more than a year. New vehicle sales levels for the month were marginally down on the prior year. “Given the official registration statistics for January showed a growth of 6.7% on January 2014, we can see tangible evidence of an increase in self-registered vehicles now coming through the figures,” said ASE chairman Mike Jones.

February 2015 saw growth of 12% in the new car market, a record 36 months of consecutive increases and the longest period of sustained growth since the late 1980s. What is remarkable is that February is traditionally one of the motor sales industry’s quieter months, before the number plate change in March. This growth bodes well for the coming year. Customer confidence is rising, manufacturing is up and exports are strong. Against this healthy backdrop, we at Black Horse are committed to achieving our ambition to be the best motor finance provider and placing customers firmly at the heart of our proposition. That means understanding the changing needs of customers, such as the impact of technology and online sales, the demand for honest and fair customer service, and added value. It means helping our dealers manage the challenges and opportunities of today’s fast-paced marketplace. And it means meeting the regulatory demands of building a transparent, customer-centred industry. To achieve this, we are embarking upon an exciting and considerable programme of investment that will focus on developing our core capabilities, our infrastructure and technology. This will support our dealer relationships, help deliver outstanding customer experiences and add value to their processes, creating the potential for increased sales. New processes will make it easier to do business with us, leaving you to focus on providing excellent customer service. Investing and utilising technology that is safe, secure and appropriate is key to this enhanced dealer and customer experience. Our commitment to underpinning the integrity of the vehicle finance market and the motor vehicle industry is a principle that guides us in terms of our dealer relationships and investing in streamlining processes will make a real difference. The experience of our teams and our understanding of the industry will be maximised to ensure we support dealer ambitions for increased sales, greater profitability and customer retention throughout 2015.

am-online.com April 2015 17


market intelligence

Sponsored by

10-year market trends available: www.am-online.com/ami

n e w C A R R e G i S T R AT i o n S

8

1 2 3 4 5 6 7 8 9 10

BranD mitsubishi maserati Jeep abarth lexus mini Subaru Volvo SsangYong nissan

YtD (%) 163.21 105.95 93.45 55.65 38.08 33.39 29.09 27.48 26.87 23.96

R i SeR S & FA l l eR S

There was no change in the top five positions in February, although the three leaders, Mitsubishi, Maserati and Jeep, have strengthened their growth further. volvo has slipped slightly, despite strong demand for its v40 and XC60 models. A strong February drove Mini into the top 10 risers. its growth came largely in the fleet market, with corporate sales responsible for two thirds of its additional registrations. Another new entrant is nissan, after fleet deals doubled its yearon-year registrations of Qashqai and trebled its year-on-year X-Trail volume since the start of 2015.

10 9 8 7 6 5 4 3 2 1

BranD aston martin alfa romeo Jaguar Bentley Smart chrysler chevrolet mia Perodua Proton

YtD (%) -10.34 -18.78 -20.77 -29.28 -36.40 -61.88 -99.92 -100.00 -100.00 -100.00

8

18 April 2015 am-online.com

Marque

2015

February % market 2014 share

Ford Vauxhall Volkswagen BMW Audi Mercedes-Benz Nissan Peugeot Citroën Toyota Hyundai Kia Škoda Fiat Mini Renault Honda Mazda Seat Suzuki Volvo Land Rover Dacia Mitsubishi Jaguar Lexus Jeep Porsche Alfa Romeo Smart MG Maserati SsangYong Subaru Abarth Bentley Infiniti Chrysler Aston Martin Lotus Chevrolet Mia Perodua Proton Saab Other British Other Imports

9,858 9,552 7,710 5,091 4,412 4,347 4,145 3,917 3,074 2,958 2,602 2,334 2,260 1,941 1,756 1,709 1,580 1,306 1,176 923 920 794 569 553 249 234 196 172 123 105 63 58 49 47 46 28 18 12 7 5 1 0 0 0 0 24 34

12.81 12.41 10.02 6.62 5.73 5.65 5.39 5.09 3.99 3.84 3.38 3.03 2.94 2.52 2.28 2.22 2.05 1.70 1.53 1.20 1.20 1.03 0.74 0.72 0.32 0.30 0.25 0.22 0.16 0.14 0.08 0.08 0.06 0.06 0.06 0.04 0.02 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.03 0.04

Total

76,958

9,935 9,332 5,559 3,037 4,178 3,638 3,480 3,258 3,106 2,411 3,109 2,126 2,341 1,810 979 1,021 2,023 1,109 930 1,199 831 727 475 199 231 228 74 155 145 179 47 21 40 37 32 67 16 66 8 1 535 0 2 0 0 30 9 68,736

2015

Year-to-date % market 2014 share

% market share

% change

-0.78 2.36 38.69 67.63 5.60 19.49 19.11 20.23 -1.03 22.69 -16.31 9.78 -3.46 7.24 79.37 67.38 -21.90 17.76 26.45 -23.02 10.71 9.22 19.79 177.89 7.79 2.63 164.86 10.97 -15.17 -41.34 34.04 176.19 22.50 27.03 43.75 -58.21 12.50 -81.82 -12.50 400.00 -99.81 0.00 -100.00 0.00 0.00 -20.00 277.78

31,338 26,487 21,703 13,099 15,766 13,695 15,221 11,088 8,488 9,669 8,396 7,248 7,376 6,125 3,999 4,725 5,189 4,646 5,313 2,820 3,929 5,097 2,189 2,361 1,049 1,240 532 802 359 297 198 173 170 213 179 157 79 69 52 18 1 0 0 0 0 73 186

12.96 10.95 8.98 5.42 6.52 5.66 6.29 4.59 3.51 4.00 3.47 3.00 3.05 2.53 1.65 1.95 2.15 1.92 2.20 1.17 1.62 2.11 0.91 0.98 0.43 0.51 0.22 0.33 0.15 0.12 0.08 0.07 0.07 0.09 0.07 0.06 0.03 0.03 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.03 0.08

14.21 10.85 8.95 4.91 6.68 5.12 5.50 4.87 3.84 3.84 3.66 3.05 3.31 2.70 1.34 1.72 2.34 1.75 2.06 1.36 1.38 2.29 0.83 0.40 0.59 0.40 0.12 0.30 0.20 0.21 0.08 0.04 0.06 0.07 0.05 0.10 0.04 0.08 0.03 0.01 0.55 0.00 0.00 0.00 0.00 0.04 0.03

-1.23 9.34 8.54 19.52 5.63 19.82 23.96 2.01 -1.04 12.64 2.73 6.26 -0.32 1.52 33.39 22.70 -0.76 18.79 15.65 -7.48 27.48 -0.27 18.45 163.21 -20.77 38.08 93.45 18.99 -18.78 -36.40 7.03 105.95 26.87 29.09 55.65 -29.28 -3.66 -61.88 -10.34 5.88 -99.92 -100.00 -100.00 -100.00 0.00 -25.51 195.24

11.96

241,814

% market % share change 14.45 13.58 8.09 4.42 6.08 5.29 5.06 4.74 4.52 3.51 4.52 3.09 3.41 2.63 1.42 1.49 2.94 1.61 1.35 1.74 1.21 1.06 0.69 0.29 0.34 0.33 0.11 0.23 0.21 0.26 0.07 0.03 0.06 0.05 0.05 0.10 0.02 0.10 0.01 0.00 0.78 0.00 0.00 0.00 0.00 0.04 0.01

31,727 24,224 19,995 10,960 14,925 11,430 12,279 10,869 8,577 8,584 8,173 6,821 7,400 6,033 2,998 3,851 5,229 3,911 4,594 3,048 3,082 5,111 1,848 897 1,324 898 275 674 442 467 185 84 134 165 115 222 82 181 58 17 1,232 5 10 1 0 98 63 223,298

8.29


market intelligence

Sponsored by

Average used car value up 2% on February 2014

yeAR-onyeAR

eConoMiC i n d i C AT o R S Pay

Fleet/leasing Feb 2014 Feb 2015 40.15

+1.8%

40.02

6.8% or £220 higher. “Purchasing habits in the part-ex market are likely to be influenced by seasonal changes. we’ve certainly seen that in February, with the promise of spring weather encouraging buyers to stock up on an array of vehicles that traditionally do well this time of year,” said daren wiseman, valuations services manager at Manheim Auctions. he warned that an influx of partexchanges often comes from the end of March. bCA’s uk operations director Simon henstock said: “From the dealer’s perspective, now is a great time to appraise any over-age stock and get it sold, rather than chasing the market in a few weeks time if values soften.” Retail stock acquisition bCA saw its average ex-fleet car value rise 2%, or £195, to a new record level of £9,673, which was 5.2% or £482 ahead year-on-year, with average age and mileage almost static. Manheim’s Market Analysis for February showed the average selling price of ex-fleet vehicles fell to £7,319, a month-on-month drop of £39 or 0.5%. The average value was still £243 or 3.4% higher year-on-year.

47,528 £9,191 £9,673 98.64% 99.07%

Part-exchange Feb 2014 Feb 2015 88.98

Company car tax

+3ppts

90.48 73,442

increase in the percentage of list price for cars emitting more than 75g/km Co2, on which company car users’ benefit-inkind tax will be based, to a maximum of 37%, in 2019/20, as announced in the 2015 budget by George osborne.

72,055 £3,797 £4,041 97.54% 98.41% Nearly new Feb 2015

unemployment

8.27

Trade-in disposal The uk’s largest motor auction group, bCA, reported that its average value for dealer part-exchanges in February fell for the third month running to £4,041, a £34 or 0.8% drop. year-on-year February trade-in values were ahead by £244 or 6.4%. The average age and mileage of part-exchanges was slightly lower than that of a year previously. At Manheim’s auction rooms the average part-exchange value for February was up 8.2% or £268 monthon-month to £3,536, a 12-month high. year-on-year, the average value was

The average weekly wage, including bonuses, between november and January was £482, a rise of 1.8% year-onyear, and outstripping the current 0.3% rate of CPi inflation.

46,094

used car wholesale values dropped in February from January as volumes rose, according to the national Association of Motor Auctions. The average value of all cars was £5,567, a fall of £261, or 4.5%, compared with January’s average. The average value was 2% ahead of February 2014. February’s volume of used cars through auctions rose by 11%, or 9,450 units, to 102,848 units. That was up 7% year-on-year. The first-time conversion rate rose for the second consecutive month to 84%, which was slightly behind the 86% recorded during February 2014.

-1.5ppts

9,310 £20,454 100.03%

The unemployment rate for the three months ending January 2015 was 5.7%, down from 7.2% a year earlier, according to the office for national Statistics. The number of people unemployed is now 1.86 million.

Average age (months) Average mileage Average value Sales vs CAP

u S e d C A R vA l u e T R e n d S

manheim Fleet £ manheim Part ex £ Bca Fleet £ Bca Part ex £

The high street

12,000

+0.2%

10,000 9572

9624

9537

9191

9448

9411

9593

9445

9533

9633

9478

9673

uk retail sales were up 0.2% year-on-year in February on a like-for-like basis. Adjusted for inflation, total growth was 3.4%. Fuelling the rise was growth in sales of holidayrelated items, furniture and household appliances.

9126

8000 7791

7791 7376

7076

7273

7260

6964

7135

7045

6948

6000

4000

3797

3216

3906

3285

3982

4048

3973

4065

4032

4059

3016

3077

3125

3130

3162

3162

7358

7319

4075

4041

6693

4136

4188

4113

3390

3395

3383

3536 3268

house prices

0

2000

+1.3%

Feb 14

Mar 14

Apr 14

May 14

Jun 14

Jul 14

Aug 14

Sep 14

oct 14

20 April 2015 am-online.com

dec 14

Jan 15

Feb 15

12 months to Jan 2015 10,705 1,049,107

Change on previous year +19% +12%

38,842

– 34%

Source: FLA

used cars bought on finance through dealerships Jan 15 Change on 3 months to Change on previous year Jan 2015 previous year Value of advances (£m) 944 +7% 2,494 +11% number of cars 92,813 +3% 239,074 +6% used cars bought on finance by businesses through dealerships number of cars 3,186 – 29% 9,124 – 17%

nov 14

house prices in January were up 1.3% since december, according to data from the land Registry. The year-on-year increase was 6.7%, which takes the average property value in england and wales to £179,492, compared with the peak of £181,101 in november 2007.



WORKSHOP 1

Managing the consumer journey Terry Hogan, managing director, Motoring.co.uk This workshop will discuss how franchised dealers can take a larger portion of the aftersales market by providing an integrated service for their customers, accommodating the consumer’s entire car-owning lifecycle. Consumers don’t always use the franchised dealer at key points in their car ownership journey, especially as the car gets older. Independent garages and fast-fit outlets are successfully marketing their services to consumers, but in many cases franchised dealers could offer their customers a more rounded service at an equally competitive price. This workshop will look at why dealers are losing customers and how they can bring them back. WORKSHOP 2

Upselling to consumers Rob Purfield, author and consultant To upsell successfully, you need to understand why people buy. It is also important to understand how to create an offer that will appeal to them at the point of sale. This workshop will show dealers how they can successfully adopt this mindset. During this workshop, you will: understand the post-recession ‘aftersales tsunami’; learn how thinking like a dentist can revolutionise your aftersales performance; discover what McDonald’s and KFC can teach you about sales; identify the No.1 mistake people make that drives business away, and much more.

mymotoring.co.uk making motoring easier


insight People management

Are you getting the most from your employees? This year’s AM & IMI People Conference can help you to measure and motivate a flexible workforce

T

ips to ensure dealers can keep their staff engaged and happy to serve customers well will be shared at this year’s AM/IMI People Conference. The Institute of the Motor Industry (IMI) will launch a guide entitled ‘10 Principles of People Management’ at this year’s event, which will be opened by IMI chief executive Steve Nash. The guide is designed as an easy reference for dealers to identify the principles required in their business to create an engaging, empowered and rewarding working environment. Staff who feel engaged, empowered and ultimately enjoy their working life are more likely to be more productive and therefore more profitable for the business. The IMI’s 10 principles will focus on what at first sight may appear to be obvious, but on closer inspection, are often the areas most overlooked in the workplace. The guide is intended to enable dealers to benchmark their practices and easily identify areas that are missing or need strengthening. Equally, the principles will provide an easy way for dealers to pinpoint the areas in which they excel. AM editor Jeremy Bennett said: “As part of our job at AM, we interview practically all the top directors in automotive retail and they invariably say the same thing: the key to their success and strength is the people who work in their businesses. “At the same time, many dealers cite recruitment and staff retention as one of the biggest challenges they face for growth. “The conference allows us to explore ways in which we can create a profitable and sustainable workplace that also delivers a healthy work-life balance, rewards and benefits as well as career progression. We will be exploring new ways of working, flexible working and new thinking.”

“staff who feel engaged, empowered and ultimately enjoy their working life are more likely to be more productive”

how the A M & IMI PeoPl e C oNfereNCe C A N hel P the 10 Principles of People Management Steve Nash, CEO, Institute of the Motor Industry The IMI rebranded its qualifications following the introduction of its IMI sales accreditation and Nash will explore the organisation’s role in developing the sector as a highly professional field in its own right as well as launching ‘10 Principles of People Management’ as an at-a-glance best practice guide. the future of employee engagement Find out how dealers can build innovative and versatile ways to engage and measure staff and create a forwardthinking, transparent and inspirational workplace. Persuading education to fly the automotive flag Professor Jim Saker, director of the Centre for Automotive Management, Loughborough University To broaden its appeal, the automotive sector needs to develop a clearer and more accessible career ladder, particularly for its aftersales personnel. the Greenhous way – from apprenticeship to the board Nahara Hanson, HR manager, Greenhous Group Greenhous’s chief executive, Derek Passant, began his career with the group as a YTS employee. This ‘homegrown’ talent is the key to sustainability for Greenhous, whose apprenticeships include traditional mechanical and electrical disciplines, but also accounting, IT and software development, sales and customer care. how to succeed in a competitive environment William Holden, chairman, Sewells What drives improved behaviour and results? How do you adopt the right attitude to business? How do beliefs affect performance? Holden, the author of the bestselling The Guide, will look at the ingredients for success. Developing an agile workforce Agile Future Forum Agile working is highly suited to the demands of automotive retail. This session from the Agile Future Forum, made up of companies such as Tesco, KPMG, John Lewis, ITV, B&Q, Ford, Lloyds Banking Group and BT, will explore how the sector can adopt its practices further.

thursday, June 11, 2015, the Park Plaza riverbank london hotel IMI chief executive Steve Nash at last year’s AM & IMI People Conference

48 April 2015 am-online.com

to book, contact emma-louise Kinnaird on 01733 395133, email emma-louise. kinnaird@bauermedia.co.uk or visit www.ampeopleconference.co.uk


INSIGHT AM & Auto Trader Digital Marketing Conference conference chair ginny Buckley

getting inside the mind of the digital car buyer Advice and case studies on search trends, targeted advertising and online compliance digitAl RetAil lessoNs fRoM tHe us

Need to kNoW n Price transparency, for new cars and part-exchange, ‘has not hurt us dealers’ profitability’ n Half of visits to a dealer website come from google, but 40% of those searches included dealer’s name chip Perry, Auto trader Car dealers in the UK could learn from their American colleagues, according to Chip Perry, who established America’s Autotrader.com brand in 1997 and now sits as a nonexecutive board member of Auto Trader in the UK. US dealers are now advertising unregistered new cars online, often showing an asking price that varies from the manufacturer’s list price. Perry said there is at least 90 days of unregistered inventory available for consumers at US showrooms. There is more transparency around pricing – consumers can see online the average price paid for a new car – and the dealer invoice price has been available to consumers since 1996. Despite dealers’ fears about the consumer having such information, US dealers’ profitability has not suffered, he showed delegates. There is also more transparency of part-exchange pricing online, and major US dealers are embracing digital retailing – to make their own websites transparent and convenient

68 April 2015 am-online.com

to consumers, and to allow online consumers to create their desired deal and print it out to take to the dealership. Behind this, the dealers’ profits are secured. “You might say all this transparency is evil. Actually, done right it gives the consumer a sense of control and a greater sense of convenience in the process,” Perry said. When Perry established Autotrader. com in 1998, he said 80% of consumers would make an enquiry by phone and 20% by email. Today, 69% of consumers walk into the showroom without an appointment, but knowing what car they want. Only 11% email and 20% call ahead. Consumers use two key webpages on classified websites – they shortlist from the search results page and make a decision from the full page advertisement (FPA). “It’s possible for a dealer who has 20 cars to have the same FPA views as someone with 100 cars – it’s about marketing your cars well; excellent photos, offering in-demand cars, competitive price and a solid description. The average car in England receives eight FPA views,” Perry said. “The more FPAs the more cars you’ll sell.” Consumers are discovering dealers from those FPA views. “Data shows that half of a dealer’s website traffic is generated by Google, but 40% of those visits included the dealer’s name in the search phrase – people are jumping off AutoTrader and searching for the dealer,” Perry said. “Google is the new Yellow Pages.”

PRoMotioNs ANd coMPliANce - HoW to HARNess f&i iN tHe digitAl WoRld

Need to kNoW n fcA is concerned with content being fair, clear and not misleading – this applies to social media too n dealers must keep a record of all social media activity that relates to finance and insurance offers social Advisors’ managing director simon Ryan With the Financial Conduct Authority (FCA) monitoring compliance in finance and insurance promotions, dealers need to record everything they do in social media, said Simon Ryan. While the FCA does not yet stipulate this, Ryan said someone will eventually query a finance promotion dealers have put on Facebook and if a dealer cannot find a record of it, there will be concern. The FCA’s primary concern is content, and the main mantra is about being fair, clear and not misleading – this must translate to your social media. He said digital promotions must emphasise the risks as well as the benefits – for example, that a longer finance term may mean the consumer pays more interest. “Don’t obscure important information statements or warnings. Consumers are more likely to trust you if you make the warnings clear.” In the mortgage sector, no promo-

tion can go ahead without saying the home is at risk if the consumer fails to keep up payments, he pointed out. Content must also avoid jargon or unverifiable claims. Ryan also spoke of his recent work with Luscombe Motors on its social media strategy to grow followers by 15% and increase engagement and reach. The two-month campaign included posting about events of interest to the local community, unique blog posts with balanced content and no sales pitches, videos, and tips such as on preparing a car for winter, Christmas shopping in Leeds and drink-driving warnings, which local pubs and bars retweeted. Ryan calculated the activity resulted in three quarters of a million people seeing the Luscombe brand, and website visitor numbers rose by 30%, with almost 20,000 new visitors.


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JoiNed-uP digitAl MARketiNg

Need to kNoW n original content is better than manufacturer-created material n HR owen creates lots of social media content at dealership level Alex Brown, head of digital marketing and platforms, HR owen Luxury car dealer HR Owen is using digital marketing to get around the expensive constraints of operating from properties in London. Alex Brown said a downside to operating in London is that expanding showroom space is expensive, which means digital has to be the group’s forecourt. As such, it is heavily engaged in web optimisation, social media and electronic CRM. HR Owen represents brands including Aston Martin, Bentley, Ferrari and Lamborghini, all of which have clear appeal to car enthusiasts. However, it also needs its own brand to shine through to prospective customers, which is why it produces a free customer iPad magazine, Drive, and it publishes original content on its webpages and social channels for every make and model it sells. Brown said HR Owen is using digital to communicate that it has more to offer than a list of stock, car specs and manufacturer-created materials. “When we take manufacturer materials and put them online there’s relatively little value in them, because customers have seen them before and Google has seen them before and it’s not original content. Original

content is better for SEO and for customers because it’s simply more interesting.” Some of the original content is also generated by dealership events. “If it’s worth doing an event, it’s worth the extra effort in putting it online, as it all counts for SEO signals and if it gets shared or liked, the business may get a customer out of it,” Brown said. Lots of social media is created at dealership level with locally relevant, interesting content, such as customers picking up new cars, customised Lamborghinis, rare classic cars coming into stock, or celebrity customers with their cars. The group is up to 50,000 Facebook likes. Brown said the aim is to dominate organic SEO results on Google’s first page for key search terms. HR Owen’s organic traffic has tripled in the past three years to become the single largest source of enquiries. Brown said increased web traffic doesn’t equate to increased sales, as some visitors will be enthusiasts or children dreaming about supercars, but there is a correlation to calls. “I think that audience of people just helps in terms of clicks, shares and engagement, so when it comes to trying to catch the people who are genuine customers you rank more highly and you’re more likely to catch those people and get their calls.”

“Original content is better for SEO and for customers”

AfteRsAles iN tHe digitAl sPHeRe

Need to kNoW n 40% of website’s customers want repairs booked quickly and easily rather than choice of garages n Price difference between franchised and independent sectors is small for Mots and electrical work Alex Rose, marketing director, Whocanfixmycar.com Research by Whocanfixmycar, a vehicle repair comparison website used by 5,500 UK workshops, has shown online aftersales customers can be split into two groups – one that wants a choice of garages, and a second, 40%, that simply wants to make the enquiry online and get the job booked quickly and easily. “Speed is absolutely the most important factor in what we see. If you respond with a price within an hour, you win three to four times more business than you do if you take a day to respond,” Rose said.

The winning price is on average £11 lower than the average price for a job, so bidding garages have to be in the right area to win the job. However. the garages that often then win the most work are the ones with the best feedback, he said. So dealers must encourage all their customers to review them online. There’s a perception that franchised dealers cannot compete on price. However, analysis of the data generated from Whocanfixmycar.com’s 65,000 users shows the price difference between franchised dealers and independents is very small for MoTs and electrical work. Franchised dealers struggle on price competitiveness with elaborate technical jobs, such as cambelt and clutch work, where they are two thirds more costly. Overall, the price difference between franchised dealer and independent garages is 18%, which isn’t difficult for the franchised dealer to justify given the extra services they provide, said Rose. They must justify it, however, to counter the assumption that the dealer from which the customer bought the car doesn’t offer the best value for money in aftersales.

cAse study: tARgeted tV - tAkiNg deAleRs oNto tHe sMAll scReeNs ANd iNto liViNg RooMs

Need to kNoW n dealer group uses sky Adsmart to target customers n 30-second ad saw ford fiesta special edition sales rise by 50.6% Mark Busby, new car sales and group marketing director, Hendy group New technology that allows highly targeted digital television advertising could produce excellent results for dealers, said Mark Busby, new car sales and group

marketing director at South Coast dealer group Hendy. The group, which represents six franchises, has become the first UK business to try Sky’s AdSmart, which allows a TV ad to be downloaded to the Sky box of a carefully targeted customer demographic and incorporated into normal, real-time viewing. With an ad designed to promote a dealer-created Ford Fiesta special edition, a sales uplift of 50.6% was seen during the campaign. Total Fiesta sales in the same period increased by about 23%. “There is no way we could justify the marketing spend needed to use traditional local television advertising, but AdSmart provides us with a whole

different approach,” said Busby. At a cost of 5p per impression, the 30-second Hendy ad was viewed about 300,000 times by potential customers, defined by factors such as geography, lifestyle and personal finances. The response was strong, with most viewers watching the ad all the way through. “We cannot afford to compete with the production values of manufacturers, for example,” said Busby. “Instead, we concentrated on making something that was animated and quirky, and it worked very well.” An important point was to ensure Hendy Group had a responsive dealer website in order to make the most of the TV ad because customers tended

to reach straight for their tablet or smartphone while viewing. “The next step for us,” Busby added, “is to produce an ad that will appeal to our existing customers. “This is something that we definitely believe is worth using again. It is an effective, affordable and powerful marketing medium.”

“We cannot afford to compete with the production values of manufacturers” am-online.com Aptil 2015 69


INSIGHT AM & Auto Trader Digital Marketing Conference oMNi-cHANNel MARketiNg

Need to kNoW n Retailers need to connect with customers during their research phase n dealers must plan marketing to match customers’ timeframes sean Meehan, social media marketing manager, Boots Marketing to customers in 2015 is all about making a connection, said Sean Meehan, socialmediamarketing manager at Boots. “It doesn’t matter whether you are selling a £3 moisturiser or a £30,000 car, the connection is what matters,” he said. Meehan emphasised the importance of adopting an omnichannel, rather than multi-channel, approach to marketing. “Using a multi-channel approach is all about you, the dealer, but an omnichannel means that you are meeting the needs of them, the customer.

What you need to be doing is facilitating the customer every step of the way. A lot of people think that the customer experience is about what happens after the sale, but really, it is all about the prospect.” Meehan said an important step in the customer journey was something called the “zero moment of truth”. “This is the point before the customer starts looking at your goods or products directly in-store or at a dealership, but is gathering information. It is the research phase, when the homework is done.” Meehan conducted a poll in the room that showed many dealers tended to plan their marketing three to four months in advance. “This is not enough. There is research to show that many customers start thinking about their next car purchase 12 months in advance. You need to be working to similar timeframes. “It is the same as making sure that the images of cars on your website are concurrent with the seasons. It is no use having summer stock shots right now. They do not connect.”

is youR sAles PRocess fit foR tHe digitAl Age?

Need to kNoW n if a dealer delights customers, he can turn them into fans or friends n People choose cars with emotion and justify the decision with logic Nick king, market research director, Auto trader Dealers need to hone their sales processes to get customers to love them. That was the advice of Nick King, market research director at Auto Trader, following research into consumer behaviour. Online search and winning their awareness isn’t enough because there is so much vying for their attention now, so dealers must truly

connect with customers, he said. King advised that if dealers delight customers and create love then they can turn them into fans or friends. People often choose their car with emotion and justify the decision with logic, so dealers must connect with their emotions. King said there must be more focus on getting the customer into the car quicker as this is the emotive part of the experience. Dealers also need to offer more “delighters” that build trust. One dealer he cited collected buyers from the railway station and deducted their train fare from the deal, and another called customers that evening to check they got home safely. Negative aspects to address include failing to respond to calls, a car being sold when a customer visits, or having to deal with multiple people for one transaction.

iNsigHts iNto tHe digitAl cAR-BuyeR

Need to kNoW n dealer websites play central role in car buyers’ research phase n consumers look at an average 4.5 franchised dealer websites stuart Bluck, head of research & insight and Rakesh Patel, digital sales director, Auto trader The average car buyer is not searching specifically for a new or used car, but simply their next car. Auto Trader’s Stuart Bluck, head of research and insight, and Rakesh Patel, digital sales director, said the current availability of car choice and finance offers is such that consumers are finding it easy to tailor their choices between the two options up until the purchase point. While much of the attention is given to Google and other third-party influencers, dealers’ websites figure significantly in consumers’ research phase and dealers need to ensure transparency in what they can offer in order to maximise opportunities. Revealing the findings from research

70 April 2015 am-online.com

in December into the research habits of 1,300 used car buyers, Bluck and Patel said they were looking for the following, in order of importance, on dealers’ websites: n range of stock n pricing n availability of vehicle of choice n opening hours n contact details n pictures of the showroom n map of the dealership n discounts available n dealership history n pictures of staff. “Initially, consumers go to classified sites to work out what car they want to buy, not where they want to buy it from. Dealership websites come next as they seek to be convinced you are the business they want to deal with,” said Bluck. He said consumers look at an average 4.5 franchised dealer websites as they decide who to buy from, so ensuring a website builds trust is essential if they are to visit your showroom. When asked what the key triggers were for buying from a particular dealer, 88% said it was the right car at the right price; a third because they had bought from this dealer before and 76% because the staff were “friendly and courteous”.

is youR WeBsite legAl?

Need to kNoW n you are legally responsible for the data on your website. n finance offers must show terms and conditions – even on twitter Andrew Brennan, intellectual property and technology lawyer, sgH Martineau “You’re responsible for your website. Even if the data is held on third-party servers,” was the message from Andrew Brennan, an intellectual property and technology lawyer at SGH Martineau. Key points included: copyright Only use what you know to be your content – don’t just lift content from elsewhere. When advertising social media accounts; i.e Facebook or Twitter – use their exact logos. cookies To ensure compliance with ecommerce regulations and data protection Headline sponsor

law, you must let people visiting your website know if you’re using cookies. consumer contracts regulations Consumer contracts regulations apply when a customer has bought something online without ever meeting a seller. Pricing and delivery information must be detailed and if items are of different prices, an explanation into how you came to those different prices. Right to cancel You must detail on your website that customers have the right to return goods, at their cost, up to 14 days after purchase. Personalised items, such as number plates, are exempt. Privacy policy If you’re collecting data from people, you must register with the Information Commissioner’s Office. social media and the fcA Terms and conditions must be included on finance offers. Twitter’s 140 characters make this difficult, but you can use images and links. You must be able to report on every social media interaction.


insight AM Round Table

dealers feel unable to fight carmakers’ ‘artificial’ sales targets Franchised dealers anticipate a slowdown in the new car market this year, but say manufacturers behave as if it will grow forever Need to kNow n Manufacturer targets for 2015 ‘unsustainable’ n Carmakers see reducing targets ‘as sign of weakness’ n dealers say franchised networks lack ability to challenge effectively By tim Rose ranchised dealers expect 2015 to be a more challenging trading period than 2014, when the new car market continued to grow strongly and used car values remained robust, leading to strong dealer profitability. Delegates at a recent AM Round table, held in conjunction with total Lubricants, reported that consumer demand for new cars had been strong in the first three quarters of 2014, but has tailed off since, leading to considerable dealer pre-

F

‘Manufacturers are playing on a different wavelength to the real market’

74 April 2015 am-online.com

registration activity in order to achieve volume-related bonuses. Registrations to private buyers since the start of 2015 are down year-on-year. Manufacturers have also ramped up the volume of rental and demonstrator registrations to maintain market share and to absorb excess production, while the sterling exchange rate remains strong, and dealers fear their own businesses will suffer from the depreciating impact this has on their nearly new cars, demonstrators and used car stock. “As soon as the retail market is seen for what it really is, their targeting is going to be unsustainable,” one dealer said. Others said there are already brands planning to revise dealer targets upwards, and some carmakers had asked dealers to pull their orders forward. “Every single month is being mortgaged,” one added. Another dealer boss said: “Manufacturers are playing on a different wavelength to the real market, and they won’t listen and they will not reduce targets, they have their volumes to

“Manufacturers won’t listen and they will not reduce targets, they have their volumes to push, end of story”


In association with

d e l e g at e s

push into the UK, end of story, and there’ll be no sympathy from the manufacturers.” Delegates said manufacturers’ constant obsession with growing market share cannot continue. Craig Fraser, operations director at Harratts group, said: “this continual growth aspiration is artificial and if that continues there will be a big fallout. “now there is a lot of uncertainty in the world and the UK is a safe haven, so all the manufacturers are using the UK to take extra production and we’re at the end of that. i think we need to be strong and say it can’t continue. it can’t go on forever.” however, delegates felt the franchised networks lacked the ability to challenge effectively. the national Franchised Dealers Association (nFDA) publicly supports the monthly sMMt registrations statements rather than signalling the underlying dealer sentiment, and manufacturers have greater control than ever. “in the past we had dealer councils that could have a strong discussion with the manufacturer, but we don’t have that anymore, and there have been the changes to Block Exemption as well,” said John Clark, chairman of John Clark Motor group. “Another issue the manufacturers are missing is a reduction in the dealers’ return on investment due to the development, redevelopment and remedial works we’re all engaged in to make premises bigger and bigger in order to cope with the volumes they perceive as being part of their future. it doesn’t work, it can’t work in the long term, unless the market is sustained. the problem is that for the manufacturer to reduce targets is seen as a sign of weakness.” Dealers accept they are in the hands of their franchisor. “As a franchised dealer we’re controlled by the manufacturer. if we’re making too much they squeeze us a bit harder, if not making enough they relax it. Just at the moment they’re forcing what they want and they know everybody has made money so they can stand it,” said luscombe group managing director Robin luscombe. he said an upside is that the incentives for the consumer to buy a new car have never been better, because the strength of the exchange rate allows manufacturers to make significant contributions to the deal. Ray sommerville, chief executive of Perrys, said volume targets are driving down the margin, and it is vital to set out the stall in the first month of the quarter and dealers have to do the “skinny deals” early on to get on top of their targets. swansway director Peter smyth said it is difficult for dealers to know if they’re making money until the end-of-quarter bonus. Delegates discussed whether an increasing car parc was benefiting their aftersales profits. some, like Luscombe, said they are seeing growth in aftersales, but others questioned the impact on their workshops’ recovery rate of being pushed by manufacturers to offer cheaper service deals.

Robin luscombe, managing director, luscombe group

daksh gupta, chief executive, Marshall Motor group

Ray sommerville, chief executive, Perrys Motor sales

amarjit shokar, managing director, Romford Mazda

Pete Parker, operations managing director, Birchwood group

daryl Pimbley, general sales manager, Humphries and Parks

Marcus Joy, managing director, Humphries and Parks

John Clark, chairman, John Clark Motor group

danny Holden, group marketing manager, Harratts

Craig Fraser, group operations director, Harratts

lee evans, Uk automotive sales manager, total

kevin Yeadon, Uk automotive oeM manager, total

darren guiver, managing director, spire automotive

Peter smyth, director, swansway garages

keith kingham, managing director, kinghams of Croydon

Chris Clark, business development director, John Clark Motor group

“I think we need to be strong and say it can’t continue” Craig Fraser, Harratts group

Fraser said manufacturers’ involvement in service plans is diluting the dealers’ margins, yet helps them sell their OE parts, and now finance volume bonuses have changed. “gradually, with what’s happening to a lot of these ways of making money, we need to reinvent ourselves,” he said. Much of the success is dependent on which brands dealers have, he said. Luscombe agreed, adding that there is a lot of new product coming to look forward to. Clark said the market conditions are not doom and gloom, but they are challenging. it was a view echoed by daksh gupta, chief executive of Marshall Motor group. “if you’re a privately owned group, are you going to risk what you’ve invested? You can’t. But most of us are entrepreneurial people, so we adapt.”

am-online.com April 2015 75


SHOWROOM First Drives first DriVe smart fort Wo anD smart forfoUr - on sale noW

Smart has big hopes for its small cars

smart has already begun tV and print campaigns to market the new forfour and fortwo

With the ForFour, Smart has added four-seat practicality to the cult following of the ForTwo By Tim Rose mart, the small car brand from Daimler that sits in Mercedes-Benz’s shadow in 54 UK locations, has launched two models, which it hopes will tempt motorists away from fashionable cars such as the Mini hatchback and Fiat 500. Sales of the previous generation Smart ForTwo city car averaged about 5,000 to 6,000 annually since its arrival 16 years ago, but the brand is expected to increase overall volume with the new cars, which include a crucial four-seater Smart ForFour that will compete in the supermini segment. The new cars continue Smart’s premium positioning, with the ForTwo range priced from £11,125 and the bigger, more practical car, which the company says will account for 80% of annual UK sales, starting at £11,620. That the two-seater’s aspirations are so low is a signal that Smart understands its impracticality, yet it retains a cult following. The ForFour, in contrast, now gives the Mercedes-Benz network a chance to offer its customers a

S

82 April 2015 am-online.com

“The ForTwo’s distinctive styling attracted plenty of attention during our test drive”

comparably modest priced second or third car of the household, thereby maintaining the brand relationship. With the right marketing behind it (a TV and print campaign is already under way), the brand could begin its climb back towards Smart’s previous UK peak of almost 12,000 registrations in 2004, when it had a four-car range and an ill-fated plan by Daimler to grow sales to 25,000 units and to split Smart from Mercedes into separate standalone showrooms. the smart forfour The previous ForFour, based on a Mitsubishi Colt platform, ended production in 2006, leaving Smart as a one-car brand. Now the model has been reborn, this time in a partnership with Renault. Renault already supplies Daimler with small engines for the Mercedes-Benz A-Class, and now the German group has made use of the platform from the Renault Twingo and created the ForFour. It’s a four-door supermini with space for four adults, with a rear bench seat that folds flat into the floor to create a maximum load capacity of 975 litres – slightly better than an Audi A1’s – and that can accommodate a 2.2-metre long Ikea flatpack if the front seat is also folded down. That is impressive for a car that’s only 3.5 metres long, some 25 centimetres shorter than the old ForFour. In normal use, the boot capacity is only 185 litres, a third smaller than the A1’s.


f o r m o r e r e V i e W s V i s i t: w w w . a m - o n l i n e . c o m / r o a d t e s t s

s p ec i f i c at i o n Smart ForTwo Price £11,125-£12,415 Engine 1.0-litre: 71bhp, 0.9-litre turbo: 90bhp Performance 0-62 10.4-14.4secs, top speed 94-96mph Transmission 5sp man, 6sp auto Efficiency 67.3-68.9mpg, 93-97g/km CO2 RV 3yr/30k 42% Rivals Mini Roadster, Renault Twingo

smart expects the forfour to account for 80% of Uk sales

Daimler describes the fortwo as ‘small on the outside, big on the inside’

Smart ForFour Price £11,620-£12,910 Engine 1.0-litre: 71bhp, 0.9-litre turbo: 90bhp Performance 0-62mph 11.2-15.9secs, top speed 94-102mph Transmission 5sp man Efficiency 65.7-67.3 mpg, 97-99g/km CO2 RV 3yr/30k 40% Rivals Fiat 500, Audi A1, Mini, Vauxhall Adam

WHat yoUr cUstomers Will reaD aboUt smart cars

Customers can choose between a 71bhp, 1.0-litre engine that accelerates the car from rest to 62mph in 16 seconds, or a 90bhp turbocharged 0.9-litre unit which will do the same almost four seconds faster and which is far more suitable if they’re likely to take it onto motorways. Both engines are mounted at the rear, have a five-speed manual gearbox and start-stop and keep official CO2 emissions below 100g/km, meaning owners will pay nothing for VED and anyone using it as a company car will pay only 12% benefit-in-kind tax. Smart says this is its most advanced and safest four-seater yet, with ultra-high-strength steel chassis structure, a tridion safety cell, seven airbags and systems such as crosswind assist and hill start assist all standard. The three specification choices are called Passion, Prime and Proxy. Passion, from £11,620, comes with orange, black and grey interior, 15in alloys, climate control, cruise control, multifunction leather steering wheel and an audio system with USB connection and Bluetooth. An extra £795 gives the customer the choice between Prime and Proxy – the former with bi-colour 15in alloys, a panoramic glass roof, leather seats and heated front seats, while the latter has 16in black alloys, lowered sports suspension, sports steering wheel and leather-look/fabric seats with white and blue interior. In addition, the sales executive can offer a Premium package on all three trims, which adds rear parking sensors, a 7in

touchscreen with navigation and multimedia functions, heated electric door mirrors and height-adjustable driver’s seat and steering wheel. For Prime and Proxy models, a £1,295 Premium Plus package adds all the Premium features plus ambient lighting, front foglamps, Halogen headlamps and LED rear lights, auto wipers and lights and a rear-view camera. the smart fortwo “Small on the outside, big on the inside” is how the carmaker describes the new generation ForTwo. At just 2.7 metres long, it is a car that, like its predecessor, can fit nose to the kerb in on-street parking bays. Its second trick is its ability to u-turn in a single carriageway road – its 22.8ft turning circle is two feet tighter than a London black cab. These, combined with official urban cycle fuel economy nearing 60mpg and zero VED due to its sub-100g/km CO2 emissions (it shares the same engines and trims as the ForFour), should make it any suburban commuter’s ideal shuttle into the city. Yet it won’t appeal to all. Even though this city car is almost 11cm wider than its predecessor, the passenger’s arm will still get in the way of the gear lever and its 260-litre boot looks full with the addition of a couple of overnight bags. It’s not a car for the self-conscious either, as the ForTwo’s distinctive styling attracted plenty of attention during our test drive through Durham and Newcastle. None of these will matter for customers who want to buy one, of course. The car will have sold itself before they even enter the showroom. Buying a Smart ForTwo is making a statement, a decision from customers’ hearts, not their heads.

Honest JoHn in reality, the forfour is noticeably shorter than a ford fiesta, so it never feels like a large car. if you like the smart styling and urban capability, but the fortwo’s lack of space has been off-putting, the forfour is precisely what you’ve been looking for. the price is fairly steep though – rivals like the Volkswagen Up are just as practical and are as cheap to run, but cost less to buy. parkers the smart fortwo is back and this time it means business. priced above most of the usual city car suspects, it offers something a little different for sure. for those who don’t need the extra practicality of two more seats, the low running costs, fun and refinement of the fortwo are sure to appeal.

am-online.com April 2015 83


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June 11 2015 – The Park Plaza Riverbank, London (Preceding the AM100 Dinner)

񡑔񡑢񡑙񡑀񡑑񡑧 !񡑣!"!񡑙񡑀񡑨񡑠񡑀!񡑢񡑙񡑀񡑒񡑨!񡑨񡑱񡑀񡑑񡑧񡑘" !񡑱&񡑀񡑁񡑑񡑒񡑑񡑂񡑀񡑕񡑧񡑘񡑀񡑉񡑒񡑀񡑢񡑕#񡑙񡑀񡑩񡑱񡑨񡑘"񡑗񡑙񡑘 񡑣! 񡑀񡑇񡑆񡑀񡑓񡑱񡑣񡑧񡑗񡑣񡑩񡑥񡑙 񡑀񡑨񡑠񡑀񡑓񡑙񡑨񡑩񡑥񡑙񡑀񡑒񡑕񡑧񡑕񡑡񡑙񡑦񡑙񡑧!񡑅񡑀񡑐񡑙 񡑣񡑡񡑧񡑙񡑘񡑀񡑕 񡑀񡑕񡑧񡑀񡑙񡑕 & 񡑱񡑙񡑠񡑙񡑱񡑙񡑧񡑗񡑙񡑀񡑡"񡑣񡑘񡑙񡑃񡑀񡑕񡑀񡑰"񡑣񡑗񡑤񡑀񡑗񡑢񡑙񡑗񡑤񡑀$񡑣񡑥񡑥񡑀񡑙񡑧񡑕񡑖񡑥񡑙񡑀񡑘񡑙񡑕񡑥񡑙񡑱 񡑢񡑣񡑩 񡑀!񡑨 񡑖񡑙񡑧񡑗񡑢񡑦񡑕񡑱񡑤񡑀!񡑢񡑙񡑣񡑱񡑀񡑩񡑱񡑕񡑗!񡑣񡑗񡑙 񡑀񡑕񡑧񡑘񡑀񡑗"񡑥!"񡑱񡑙񡑀!񡑨񡑀񡑗񡑱񡑙񡑕!񡑙񡑀񡑕񡑧񡑀񡑣񡑦񡑩񡑱񡑨#񡑙񡑘 $񡑨񡑱񡑤񡑩񡑥񡑕񡑗񡑙񡑀$񡑢񡑣񡑗񡑢񡑀񡑣񡑧񡑀!"񡑱񡑧񡑀$񡑣񡑥񡑥񡑀񡑖񡑙񡑀񡑡񡑨񡑨񡑘񡑀񡑠񡑨񡑱񡑀񡑖" 񡑣񡑧񡑙 񡑅񡑀񡑔񡑢񡑙 񡑙񡑀񡑖񡑙 񡑱񡑙񡑠񡑙񡑱񡑙񡑧񡑗񡑙񡑘񡑀!񡑨񡑀!񡑢񡑱񡑨"񡑡񡑢񡑨"!񡑀!񡑢񡑙񡑀񡑗񡑨"񡑱 񡑙񡑀񡑨񡑠񡑀!񡑢񡑙񡑀񡑘񡑕&񡑅

For more information visit: www.ampeopleconference.co.uk or contact Emma-Louise Kinnaird on 01733 395133 or email emma-louise.kinnaird@bauermedia.co.uk

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IN MAY’S ISSUE

C O N TA C T U S

PUBLISHED APRIL 24

AM, Media House, Lynch Wood, Peterborough PE2 6EA Email: AM@bauermedia.co.uk

Used car finance The PCP has driven new car retail sales, but what will it do to the used car market? We explore the trend in motor finance offerings in the used car sector, including the emergence of used car PCPs, and examine if they will help dealers to sell.

If you or someone you know are aged 16-24 and are interested in work experience opportunities at Bauer Media go to www.gothinkbig.co.uk Editor Jeremy Bennett 01733 468261 Managing editor Tim Rose 01733 468266 Senior reporter Danielle Bagnall 01733 468343 Industry editor Tony Willard AM production Head of publishing Luke Neal 01733 468262 Production editor Finbarr O’Reilly 01733 468267 Designer Erika Small 01733 468312 Contributors Debbie Kirlew, Chris Lowndes, Rupert Pontin, Prof Jim Saker, Richard Yarrow

Win with warranties Experts in the sector share their tips on how dealers can more effectively sell extended warranties throughout the customer journey.

First drive: Mazda2 Efficiency, technology and value will help Mazda’s new stylish supermini to take on the market leaders

Motors.co.uk ...............................................30

AM is published 12 times a year by Bauer Consumer Media Ltd, registered address 1 Lincoln Court, Lincoln Road, Peterborough, PE1 2RF. Registered number 01176085. No part of the magazine may be reproduced in any form in whole or in part, without prior permission of the publisher. All material published remains the copyright of Bauer Consumer Media Ltd. We reserve the right to edit letters, copy or images submitted to the magazine without further consent. The submission of material to Bauer Media whether unsolicited or requested, is taken as permission to publish in the magazine, including any licensed editions throughout the world. Any fees paid in the UK include remuneration for any use in any other licensed editions. We cannot accept any responsibility for unsolicited manuscripts, images or materials lost or damaged in the post. Whilst every reasonable care is taken to ensure accuracy, the publisher is not responsible for any errors or omissions nor do we accept any liability for any loss or damage, howsoever caused, resulting from the use of the magazine.

Supagard.......................................................77

Printing: Headley Brothers Ltd, Kent

With a workplace presentation programme in place, Nissan dealers must “shout more” about their services to local fleets, says its corporate sales director Barry Beeston.

ADVERTISERS’ INDEX

90 April 2015 am-online.com

AM publishing Managing director Tim Lucas 01733 468340 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions 01635 588494. Annual UK subscription £99, two years £168, three years £238. Overseas one year/12 issues £149, two years £253, three years £358.

Analysis: Nissan

Alphera Financial Services..............58/59 Autoclenz .....................................................77 BDM Voice.....................................................37 Bluesky Interactive ...................................38 BCA .................................................................76 Call It Automotive.......................................47 CBW Design ..........................................72/73 Chris Eastwood Automotive...................88 Contact At Once ..........................................60 David Southgate Consulting ...................89 Dealer Management Services ...............25

AM advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Head of project management Leanne Patterson 01733 468332 Project managers Kerry Unwin 01733 468327 Angela Price 01733 468338 Lucy Peacock 01733 468338 Account managers Sara Donald 01733 366474 Richard Kerr 01733 366473 Kelly Crown 01733 366364 Recruitment enquiries Richard Kerr 01733 366473

DSG Financial Services ..................22 & 51 GForces ........................................ 21/10/1949 Infomedia......................................................92 Institute of the Motor Industry...............43 iVendi........................................................26/81 Lawdata.........................................................76 Lloyds Banking Group.................34/64/14 Manheim Retail Services...............4/13/19 Mapfre Abraxas UK.....................................8 Mediabase Direct ................................66-67 Mercedes-Benz UK ...................................88

Moneypenny..........................................33/54

Symco Training ...........................................50 Tracker Network Systems .....................36 TRACS Solutions ........................................89 Trader Publishing ...........................62/2/71 Trusted Dealers..........................................12 World of Warranty.....................................89 Yeomans........................................................88

Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.


D I N N E R 11th June 2015, Park Plaza Riverbank, London Jeremy Vine will be the guest speaker at the AM100 dinner this year which will be held on June 11 at the Park Plaza Riverbank in London. Vine established his reputation as a smooth-talking but tough presenter on Newsnight. He now presents the lunchtime show on Radio 2, hosts Eggheads and pops up with a range of graphic wizardry whenever there’s an election. Jeremy joined the BBC as a news trainee. His first reporting assignments were on Radio 4's Today programme, covering issues as diverse as punishment beatings in Northern Ireland and sheep-racing in Dorset. He then took up the reins as a political correspondent, under John Sergeant.

One of Jeremy’s early reports was an award-winning exposé of South African police brutality, which led to twenty four officers being suspended. In a lighter vein, he was famously challenged by Jeffrey Archer to a race on Brighton beach, after remarking that the Tories had become elderly. Archer pulled out, complaining of ‘tiredness’. The AM100 publication is the annual industry guide to the 100 largest dealer groups in the country, according to their company turnover. In addition, the AM100 provides a detailed analysis of the state of the industry and looks at the key issues facing dealers and their customers.

igious gala dinner on the calendar The most Prest Headline sponsors:Headline sponsors:

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Book your table now at www.am100dinner.co.uk

or call Emma-Louise Kinnaird on 01733 395133 or email: emma-louise.kinnaird@bauermedia.co.uk


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