Car Dealer Magazine: Issue 124

ROAD TEST: CAN FORD FIESTA ST PULL OFF A TRIUMPHANT COMEBACK?

H C I N U M LEGEND

Issue 124 | July 2018 | CarDealerMag.co.uk | £5

DRIVEN: WHY BMW’S M3 CS IS ALREADY ONE OF GERMAN FIRM’S TRUE GREATS

PLUS: WE HEAD NORTH ON ELECTRIC AVENUE

CDX 2018 WHAT YOUO MISSED AT OUFRROMETHXE BIPG EVENT FULL REPORT & PICTURES

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Editorial HEAD OF EDITORIAL Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @believebecca

HEAD OF DESIGN Graeme Windell

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PRODUCTION EDITOR Dave Brown

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FEATURES EDITOR Jack Evans

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STAFF WRITER Ryan Hirons

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STAFF WRITER Tom Wiltshire

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Welcome.

HERE’S an interesting story I heard from an industry colleague this month. Can you guess how one Renault dealer manages to sell more electric Zoes than any other dealer in the country?

He asks every customer, regardless of what car they’ve inquired about, to test-drive one.

Proof, is it not, that more people could be right for an electric car than we give them credit for?

It’s a sign of the times but, once again, we seem to have created an issue focused on electric cars.

Apologies in advance if you’re opposed to lithium batteries or allergic to charge points – as we found out this month that our CEO appears to be – but people can’t stop talking to us about them so we’ll keep reporting it.

I’ll start with just over the page, where we begin with an investigation. It seems that dealers have been taking the blame for poor EV sales and we’ve been looking into just that.

Recently, I also went to speak with a man who’s definitely keen on shifting a few EVs – Nissan GB MD Alex Smith. While there’s a lot going on within the business, a huge part of it for the past seven years has been building a solid understanding of EVs with the Nissan Leaf. Now the car is back in a new guise and Smith is preparing to wow a next generation of electric car buyers.

Finally, and a bit by fluke, we ended up needing to get three electric cars to Manchester for CDX. An easy task we’d been led to believe, but the result wasn’t quite as rosy as we’d hoped. On the plus side, Jaguar transported a prototype I-Pace to the event venue itself as we weren’t allowed to drive it. Much as we wanted to get behind its wheel, at least that was one less car to worry about.

That left James, Ted and me as the last to be assigned a

mode of transport, with the job of making sure the Tesla Model X and Nissan Leaf made it there safely. Did we manage it, though? You’ll have to read the full feature on p48 to find out.

EVs aren’t the only important cars we’re talking about.

The one and only Fiesta ST is finally back and it’s been absolutely knocking the socks off the industry. I’m sure there are at least a few Ford dealers reading this who are still buzzing from having tried it and are champing at the bit for when it arrives in showrooms.

Arguably making it two ‘five star cars’ tested in one month, we’ve also got our hands on the incredible BMW M3 CS, and this wild beast of a car has certainly stirred up emotions in the office. That’s not to say we weren’t over the moon with the performance of the more subdued Volvo V60 this month and totally blown away by the Aston Martin DB11 AMR, all of which you can read about in this month’s forecourt section, starting on p40.

This month we’re also bringing you some of the CDX highlights that we can cram into the magazine. The event was held at Manchester Central Convention Complex, and with so much taking place on both days we’ve whittled it down to just a few of our favourites.

The great news is that if you want to find out about anything that happened there we’ve covered it on our website and you can watch all of the Live Stage panels on YouTube!

Enjoy the issue!

Rebecca Chaplin Head of Editorial CarDealerMag.co.uk | 03

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Ford Fiesta ST

Jack Evans took to Nice’s country roads in the Blue Oval’s revamped hatchback

How charged up are dealers over an electric future?

ISSUE 124 I JULY 2018

Dashboard.

Big Story: The electric vehicle Around the UK More From Leasing Lookers Electric Car Challenge Rebecca Chaplin Big Mike Around the World So You Wanna Be A Car Dealer?

Feedback Finance

06 10 14 18 27 29 30 32 34 36

Features.

CDX 2018 What Car? Insight

Data File.

Car Dealer Club The Statistics Market Insight Auctions Taking Stock Real Deals

Forecourt.

40 42

Ford Fiesta ST BMW M3 CS

Suppliers Guide Key Notes with Traka Long-termers

48 70

78 80 83 84 87 89 90 93 95

CDX 2018 reports and pictures

Vauxhall Grandland X is the new kid on the long-termers block

Our events...

As voted for by dealers, Car Dealer Power is unique. Details of our 2017 winners are online at bit.ly/ winners-2017 – and this year’s awards ceremony is on June 28.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Go online to bit.ly/UCA-winners to find out who won what in 2017.

Europe’s biggest automotive trade expo features the Live Stage, breakout sessions, workshops and much more.

Our coverage of this year’s event starts on page 48 with an electric road trip...

CarDealerMag.co.uk | 05

Dashboard.

THE BIG STORY

Who is leading the charge to eliminate the internal combustion engine?

There is still much dispute over the world domination of the electric vehicle and even dealers are reluctant to sell them – despite the impending Road to Zero strategy to discontinue the internal combustion engine.

Sophie Williamson-Stothert reports.

E

lectric cars are the future – it’s a phrase that has almost become a cliché yet still sets off alarm bells for both consumer and trader. The Road to Zero strategy, which aims to achieve zero-emission motoring by 2040 (or 2032 in Scotland), tells us the end of the internal combustion engine is truly nigh, but not all manufacturers agree – and neither do their retailers.

A team of researchers carrying out a mystery shopping experiment across Denmark, Finland, Iceland, Norway and Sweden discovered that salespeople tended to distract a customer’s focus from buying an electric vehicle and encouraged them to stick with a petrol- or diesel-powered car.

The study, published in environmental journal Nature Energy, involved visits to 126 dealerships in 15 cities across the five countries. Of the ones that sold EV brands, 77 per cent didn’t discuss their existence with prospective customers and a mere 8.8 per cent left the shopper preferring an EV option to a petrol or diesel vehicle, despite the fact that a third of car sales in Norway this year are expected to be electric.

According to the study, there were four key ways in which salespeople diverted customers away from electric power. Firstly, they dismissed EVs entirely, perhaps by saying the economics of their fuel efficiency didn’t make sense. Secondly, they would misinform the customers, possibly by saying the car had a lower range than it actually did – as we all know, eliminating range anxiety is proving to be the largest hurdle for manufacturers.

Thirdly, they neglected to mention EVs at all, and lastly, they depicted EVs as being inferior to conventionally powered alternatives.

It would seem, then, that the electric car isn’t favourable among those who, arguably, are the most influential people in the car-buying process. If traders don’t trust electric cars, how can the buyers? Unsurprisingly, London is the EV leader here in the UK, with an air-quality 06 | CarDealerMag.co.uk

charge already in place and a structured agenda to decarbonise its entire transport system by 2050. Cities such as Southampton, Birmingham and Leeds aren’t far behind, and work has already started on introducing their clean air zones next year.

The problem, however, appears to point directly at infrastructure, and it’s the manufacturers pointing the finger.

A business, energy and industrial strategy committee meeting at the House of Commons on May 22, 2018 focused on developing the market and its infrastructure, with representatives from leading brands such as Nissan and Toyota there. Ian Robertson, member of the board of management at BMW Group, said: ‘Consumers are at the point where they’re asking, “Is it really for me?” and so there’s only a gradual take-up of electric and plug-in hybrid cars.

‘I think a zero-emission target in 2040 for the majority of customers is probably achievable, but it’s somewhat against the customers who have a 500-mile commute ahead of them and need a vehicle that has the ability to provide the range.

‘So, rather than taking the step which says we’ll have no combustion engines in 2040, let’s aim for a target – one I think we all agree with – which is a very low-emission environment.’

Asked what the biggest challenges were that vehicle manufacturers faced over the next two decades, Tony Walker, managing director of Toyota Motor Europe, said: ‘It’s a huge challenge to change a production base that creates many internal combustion engines into a plant that makes batteries and motors. There aren’t enough plants in this country to require that sort of investment, meaning the majority will have to be imported and we’ll have to compete against other countries that are already further ahead.

‘Toyota is invested heavily in the UK, but the current 2040 plan will make today’s vehicles unsaleable. The challenge isn’t the timing; the issue we’d be raising is that the target should be such that hybrid electric vehicles can continue to

Can we talk about nice punters for a change?

Feedback, p34

‘The challenge isn’t the timing; the issue we’d be raising is that the target should be such that hybrid electric vehicles can continue to be a part of the mix.’

Tony Walker, Toyota Motor Europe

‘Consumers are at the point where they’re asking, “Is it really for me?” and so there’s only a gradual take-up of electric and plug-in hybrid cars.’

Ian Robertson, BMW Group

be a part of the mix – Toyota has a 2050 target of an 80 per cent reduction of emissions worldwide.

‘Not everyone will move at the same speed.

We want to step up and meet the demand as EVs grow and produce a greater range of vehicles. We over-invest in training and advertising at Toyota because we believe this is the future of mobility.

However, at the same time we need to deliver a consistent support service in helping customers with their charging needs, whether that’s motorway infrastructures, charging at home, or creating a second-life battery facility so motorists can store batteries in their homes and businesses.’

Gareth Dunsmore, electric vehicle director at Nissan Europe, believes the key to reaching the 2040 target lies in the successful implementation of a firm infrastructure across the UK. ‘One of the main challenges is the scale of the changeover,’ he said. ‘Another is challenging the supply

chain and making sure we secure the right cost improvements for our products. For example, we achieve a better mileage range with our fourthgeneration battery but at a similar price to the first one we introduced.’

Dunsmore also pointed out that the customer needed to be better educated about the future of mobility, which links back to the influence that dealers have over customers. ‘The main barrier from the customer’s perspective is perception – we need to educate our customer base about what is really possible with an EV,’ he said.

Robertson said: ‘Is the target for 2040 the right target? In Norway, we’re already on our way to being able to achieve that – 50 per cent of our cars in that segment are electric versus an industry average of 20 per cent. However, we need a clear pathway to achieve this here. We need a staged transition with the right infrastructures and

vehicle choices. As long as there is a path, we’re ready to deliver.’

While fully electric-powered vehicles aren’t quite drawing in the buyers, plug-in hybrids continue to generate sales at a steady rate – mostly because range anxiety is eliminated thanks to an onboard combustion engine.

To put into perspective the popularity difference between pure EVs and plug-in hybrids in the UK, Robertson listed a few figures from BMW’s latest sales data.

‘We sold roughly 15,000 EVs here in the UK in 2017. Only 1,000 of those were full battery power and 14,000 were plug-in hybrids.’

It’s difficult to predict how long the transition to the plug-in hybrid and, ultimately, the fully electric vehicle will be. One thing’s certain, though: there still is – at least for the foreseeable future – a role for the internal combustion engine in a low-emission environment, and the dealer network needs to have faith in electric power if it’s going to revolutionise the transport industry.

CarDealerMag.co.uk | 07

Dashboard.

JCT600

Another year of record sales and increased profits

B

radford-based car retailer JCT600 is marking another year of record turnover with revenues reaching £1.251 billion – a two per cent rise on the previous year’s figure.

The family business’s strong performance comes in the face of challenging market conditions with fierce competition continuing.

Despite falling demand for new vehicles in the UK car market, JCT600’s strong performance in the retail sector showed only a modest decline, significantly outperforming the overall market.

A strategic focus on the sales of used vehicles and aftersales provided another year of growth in those key areas.

Together with the growth in sales, the group also saw an improvement in its gross profits and that, together with a tight control of expenses, provided an increase in the group’s operating

08 | CarDealerMag.co.uk

profit before exceptional items to £19.1 million.

Throughout the year, JCT600 continued to invest in its programme of new premises and redevelopments, with a further £7 million being spent. This included the opening of a new Porsche Centre in Teesside as well as major refurbishments at Mercedes-Benz Sheffield and Peugeot Bradford.

John Tordoff, chief executive of JCT600, pictured, said: ‘Whilst there was definitely a degree of uncertainty in the UK economy last year, which made trading conditions a challenge, the confidence of our customers appears to be resilient. Given the strength and longevity of the JCT600 name, the company is continuing to outperform the market as we stick to our core

value of being a trusted partner for our colleagues, customers and brand partners.’

JCT600 saw the total number of visitors to its website and social media channels increase significantly once again.

Founded in 1946 as Brooklands Garage in Sticker Lane, Bradford, by current chairman Jack Tordoff, JCT600 has grown from a single dealership into the largest privately owned business in Yorkshire.

With 50 dealerships from Yorkshire and the north-east of England to Derbyshire, Lincolnshire and Nottinghamshire, the group represents 18 of the world’s leading car marques and has a team of 2,200 people.

CarDealerMag.co.uk | 09

Dashboard.

News from around the UK

What’s been hitting the headlines on the home front? Here’s a round-up of stories LANCASHIRE

Grass verge to make way for display

WEST YORKSHIRE

It’s a regional first for McLaren’s new showroom McLAREN Automotive has opened the doors at its first Yorkshire-based dealership. McLaren Leeds, based on the Gateway 45 Leeds site in Aire Valley Drive, joins the brand’s existing UK sites in London, Ascot, Hatfield, Birmingham, Glasgow, Bristol and Manchester. Operated by Park’s Motor Group, which already runs McLaren Glasgow, the new dealership is set to enter phase two of its development process, with a 12,000 sq ft, purpose-built bespoke showroom due to be completed by the end of the year.

A CAR dealership in Lancashire has been granted permission to expand. The BCC Citroen showroom in Throstle Street, Blackburn, will lose its grass verge for an outdoor vehicle display on a large tarmacked surface. The Lancashire Telegraph reported Blackburn with Darwen Council development manager Gavin Prescott as saying: ‘It’s allowing expansion of the business, which we feel outweighs the harm of the loss of the landscaped area.’

Picture: Google Street View

HAMPSHIRE

NEW SOUTHGATE

Unbeatablecar store to be transformed

Going up in the world with new flagship site

SOUTH coast automotive company Hendy Group is to buy and transform Unbeatablecar Portsmouth. It will be rebranded, refurbished and restocked, opening as Hendy Car and Van Store on July 1, 2018. All staff from Unbeatablecar will be retained as part of the acquisition and chief executive Paul Hendy said he was delighted to be opening such a large outfit in Portsmouth, where the group already has Ford, Honda, Kia and commercial vehicle operations.

10 | CarDealerMag.co.uk

ENDEAVOUR Automotive has opened its all-new flagship Hyundai dealership in north London. It has relocated the showroom from Hendon to a new two-storey solus site in New Southgate, which boasts more than 1,000 square metres of display space including a 16-car showroom. It also features Hyundai UK’s first indoor used car display area in London – capable of holding 34 cars – on the first floor. Staff numbers have also increased by more than 20 per cent to 42.

Top-selling cars in May May 2018

LARBERT

Source: SMMT

Ford Fiesta Ford Focus Volkswagen Golf Nissan Qashqai Volkswagen Polo Vauxhall Corsa Mini Mercedes-Benz C Class Mercedes-Benz A Class Audi A3

6,896 6,573 6,372 4,956 3,961 3,932 3,505 2,955 2,939 2,791

The statistics, p80

Bye bye Peugeot, hello Suzuki, says Hardie

HARDIE Peugeot of Larbert is to close its dealership after 60 years in business. Launched in 1958, the showroom has become something of a landmark in the village but, according to the Falkirk Herald, economic factors and issues with Peugeot management have led owner Gordon Hardie with no choice but to shut up shop at the end of July. Hardie has now joined with Suzuki and will run its base in Kerse Road, Stirling.

Picture: Google Street View

Hard-hitting opinion from Car Dealer’s founder

James Baggott, p98

WORCESTERSHIRE

SOUTH YORKSHIRE

KENT

May the Toyota C-HR force be with them...

Motordepot creates 40 jobs with Barnsley site

Dacia dealership opens in Dartford

AN ELDERLY Bromsgrove couple collected their new car in style on May 4th – Star Wars Day. Fans of the sci-fi movie series Cynthia and John McCall, both in their 70s, dressed as Princess Leia and Darth Vader to pick up the keys for the Toyota C-HR from Motorline Toyota.

Sales executive Andy Parton told the Bromsgrove Advertiser: ‘I jokingly suggested they collect their new car in Star Wars-themed fancy dress. They called my bluff and said they would if I did too.’

CAR supermarket group Motordepot has opened a site in Barnsley, creating 40 jobs. The purpose-built premises just off the M1 at junction 36 on the Dearne Valley Parkway can hold more than 400 vehicles and boasts 75,000 sq ft of internal display space coupled with a state-of-the-art vehicle preparation centre. It’s the eighth branch in Motordepot’s growing portfolio, joining sister sites in North Shields, Birmingham, Grimsby, Hessle, Hull, Scunthorpe and Worksop.

‘We work in a very dynamic industry that has lots of opportunities and lots of challenges.’

Alex Smith interview, p22

DACIA has a new dealership in Dartford. Owned by WJ King Group, the showroom is on The Brent, just off the M25, and is the seventh franchise in the group’s portfolio.

The new dealership has been given a complete makeover, incorporating a modern five-car showroom – showcasing the full range – a spacious eight-bay workshop with aftersales facilities, and a large used Dacia forecourt. Dacia Dartford is one of 14 dealerships run by WJ King Group in north Kent.

PEMBROKESHIRE

Magnificent seven for WP Lewis & Son

VAUXHALL retailer WP Lewis & Son has been named best in class for customer care in Wales for the seventh consecutive year. Based on the results of Vauxhall’s satisfaction surveys, the Pembroke Dockbased dealership is one of only four retailers in Britain to achieve award status year-on-year since their inception in 2012. Vauxhall Motors communications director Denis Chick visited the dealership to present the brand’s 2018 customer excellence award to the team.

LONDON

Mercedes-Benz opens pop-up store in Westfield MERCEDES-BENZ has opened a pop-up store in Westfield shopping centre. The store, which will be at the White City mall until July 4, features some of the most popular models, letting customers experience the cars up close and arrange test drives. As well as housing the new A-Class, the shop launched with an Approved Used C-Class Cabriolet and smart fortwo cabrio, with a revved-up Mercedes-AMG takeover in mid-June. The carmaker says more than a million people have visited its pop-up shops since the first one opened in 2015.

First drive

BMW M3 CS What did James Baggott make of the new and lighter Club Sport?

Forecourt, p42 CarDealerMag.co.uk | 11

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News from somewhere other than the UK

Around the World: p30

Harrison

MORE FROM LEASING

Will GDPR help us better understand our customers?

MUSTANG ENHANCED: Ford is adding a series of upgrades to its Mustang muscle car.

Buyers are now able to specify Active Valve Performance Exhaust technology on the 2.3-litre Ecoboost-powered model – a piece of equipment formerly only available with the 5.0-litre V8-powered model. The larger 5.0-litre V8 will now benefit from rev-matching technology, which enables smoother gearshifts. The system automatically ‘blips’ the throttle when the driver downshifts, effectively matching the engine rotation speed to the selected gear.

Two new colours have been added: Velocity Blue and Need for Green. They come alongside the special-edition Bullitt Dark Highland Green colour. An all-new Bang and Olufsen sound system is now available on the Mustang, too.

Inchcape Group ‘looks forward confidently’ after revenue increase

I

nchcape Group has announced that group revenue is up to £2.99bn in its trading results for 2018’s first quarter.

Group revenue rose by 2.9 per cent at actual currency and 6.2 per cent at constant currency.

Meanwhile, distribution revenue increased 4.1 per cent at actual currency and 9.5 per cent at constant currency.

Finally, retail revenue saw a 1.9 per cent actual currency improvement, equating to 3.6 per cent in constant currency.

The UK and Europe saw the lowest profit increase – up a mere 1.1 per cent – compared with 4.4 per cent in Asia, 11 per cent in Australasia and 31.3 per cent in the emerging markets. The group’s outlook for the year hasn’t changed, with overall yearto-date performance remaining broadly consistent with the trends it expected for its 2018 profits.

In terms of distribution businesses, Inchcape expects a strong performance across its value drivers and easing comparatives following a challenging period for retail.

The firm also predicts a solid year-onyear profit growth, thanks to its Central America distribution acquisition.

Stefan Bomhard, chief executive of 14 | CarDealerMag.co.uk

by TRISTAN SHALE-HESTER @tristan_shale

Inchcape, said: ‘I am pleased with the strategic progress we have made in the period, despite a challenging market backdrop in some regions.

‘Our performance over the first four months of 2018 is reflective of the trends we had anticipated.

‘Sales performance has been solid, with strength in emerging markets and Australasia off-setting weaker performance in the UK and Europe.

‘Our distribution profit performance has remained strong, with a good performance in Asia, despite the current downturn in new car sales in the Singapore market.

Vehicle margins remain under pressure in both the UK and Australian markets.

‘In March, we were pleased to announce the acquisition of a Suzuki-focused distribution business in Central America – our sixth distribution deal in 24 months.

‘I’m excited by the opportunities that a stronger presence in the region and globally enables. We look forward to the future with confidence.’

Market Insight, p83

U

nless you’ve been hiding in a cave for the past six months, you’ll be aware that we are now living in a post-GDPR world.

The new European-wide data protection laws have led to detailed and wide-ranging changes for all our businesses, but at their heart are key themes that we’re all constantly trying to master: to better understand our customers’ needs, to provide interesting and relevant content and to provide excellent levels of customer service.

Here at ContractHireAndLeasing.com, people come first.

We want to help our consumer audience find the right car to lease for the right price, and to provide engaging information to help them make an informed choice at whatever time of day that’s convenient for them.

One of the most significant changes we have made is how we pass leasing inquiry data on to our advertising partners. We’ve removed all personal data from our email inquiry notifications. Partners are now notified they have an inquiry and are taken to our secure Admin Panel to obtain the information, communicate directly with the inquirer and keep them up to date with their order. We’ve seen a huge increase in engagement levels between partners and consumers via our Admin Panel following the introduction of GDPR, not a decrease.

For many automotive businesses it’s been a welcome kick up the bumper for them to look at their data policies and ensure they are only holding the information they need, for as long as they need it.

Like many of you, we talk to our consumers on a regular basis and GDPR has helped us to better understand how consumers want to engage with us, how often and when.

We publish a weekly content newsletter, featuring the latest news, views and reviews, but did you know you can also register for daily or weekly leasing offers by email on the specific makes, models, terms and prices you’re interested in? As savvy, modern retailers, this will help you stay in touch with market and franchise trends.

We also produce a newsletter for advertising partners, which keeps them up to date with the most searched-for and inquired-about vehicles to help them better understand consumer search and buying behaviour.

There is no such thing as one size fits all when it comes to communication – bespoke insights are what we all crave.

GDPR has helped all our businesses stay in touch with our customers, not prevented communication.

Who predicted that?

‘We can help retailers stay in touch with market trends.’

Paul Harrison is head of strategic partnerships at ContractHireAndLeasing.com

“The iVendi 2018 Online Retailing Report�

Get your free copy Email tellmemore@ivendi.com or call 0330 229 0028

CarDealerMag.co.uk | 15

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TAKEOVER BID

BCA Marketplace rejects £1.6bn offer – but it’s not over yet A PRELIMINARY £1.6bn cash takeover bid for BCA Marketplace by private equity firm Apax Partners has been rejected by the auction house.

BCA released a statement at 7am on June 11 saying that Apax had issued an ‘all cash offer for the company of 200 pence per BCA share’ on May 9 but the board had decided to reject the offer.

However, in a separate release issued at the same time, London-based Apax confirmed that it was in the early stages of considering making an offer for BCA by a new entity – known as Apax Funds – controlled by funds advised by Apax. It added that this didn’t amount to a firm intention to make an offer. Under stock market rules, Apax Funds has until 5pm on July 8 to make an offer or walk away, but BCA hadn’t received another offer at the time of going to press.

It was floated on the stock market in spring 2015 at 150p per share, and the offer of 200p would have been a 5.2 per cent reduction on its June 8 closing price of 211p.

BCA Marketplace works in a range of automotive arenas from vehicle remarketing and logistics to owning the website WeBuyAnyCar.

ONLINE

Mr Wheeler Dealer’s site is geared up to O ne of the best-known names in the world of buying and selling cars, Mike Brewer, has launched an all-new website aimed at enthusiasts, consumers and wannabe wheeler dealers.

Packed with features, car-related news and reviews, consumer advice and engaging vlog content from the cheeky chappie himself, the new site offers more than any of the traditional motoring sites, thanks to its carefully crafted mix of high-quality advice and entertaining, interactive video content.

Created with the Baize Group, which owns Car Dealer Magazine publisher Blackball Media, mikebrewermotoring.com aims to inform and entertain with stacks of petrolhead content.

For those who want even more, the site also has an exclusive subscribers’ area where, from as little as £2.49 a month, visitors can gain access to premium content from Mr Wheeler Dealer

One car Two audiences Get your cars seen in two markets at once with a single advert

16 | CarDealerMag.co.uk

himself, including exclusive weekly videos, advance access to Mike Brewer Motoring events and the chance to buy a half-price, signed copy of Mike’s Used Car Bible. Oh, and you also get a mikebrewermotoring.com coffee mug!

‘I’ve been wanting to do something like this for a while,’ said Brewer, whose own dealership business, Mike Brewer Motors, has branches in Sheffield and Luton.

‘I’ve spent my life with cars and made an

COURT

Trader is jailed for 27 months over £91k finance frauds

new delight amazing career out of them, so it seems logical to have a place where I can share the benefit of my experience, my anecdotes and some of my car-buying and selling advice with like-minded petrolheads.’

James Baggott, CEO of the Baize Group, added: ‘We’ve known Mike Brewer from when we first started out, as he was – naturally – magnetically drawn towards a title called Car Dealer.

‘In that time, the world of publishing has changed beyond recognition, but Mike’s easy charm, wise advice and ability to spot a deal from a mile off haven’t altered. We’re delighted to partner with him on this new venture, which we fully expect to fly off the virtual forecourt.’

Brewer is well known to Car Dealer Magazine readers as the host of our annual Used Car Awards.

‘I’ve been wanting to do something like this for a while.’

A CAMBRIDGESHIRE dealership owner has been jailed for 27 months after conning friends, customers and finance companies out of more than £91,000.

Luke Mills, 38, used his position as the owner of Edgerley Park Motor Dealership, in Peterborough Rd, Eye, to acquire his victims’ details to apply for loans from multiple finance companies on vehicles, Peterborough Crown Court was told.

The complex and varied frauds stretched over more than a year, and an example would see Mills assure a customer who had bought a car on finance through him, but who subsequently wanted to sell it, that he would settle the difference on the finance.

He would then fail to do so, but the finance company would still be withdrawing money from the customer’s account.

Mills, of The Cloisters, Eye, admitted nine charges of fraud between January 2015 and April 2016.

Throughout the period, he repeatedly lied to his victims so that he would continue to receive illicit payments, said the Cambridgeshire force.

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CarDealerMag.co.uk | 17

Dashboard.

The lessons we learnt at CDX 2018

Rebecca Chaplin, p27

A GRAND TOUR

Lookers sees the benefits of joining the electric car conversation

A

nother day, another headline about electric cars. It seems the conversation among industry analysts and motor journalists has gone into overdrive in recent weeks.

Fuelled primarily by the UK government’s ambition to be the global leader in electric transportation, it’s a hot topic that seems to gain fresh impetus on an almost daily basis.

A quick look online reveals that a new law is to be introduced next year that will ensure all electric cars will have to emit a noise at low speeds, while many suggest that drivers are ditching diesel in favour of electric and petrol.

Many still lament the government’s drawn-out approach to infrastructure.

Add this to the backdrop of current widespread environmental concern in the media, from plastics to particulates, and you have a perfect storm that promises to pepper us with electric car headlines for months and years to come.

Here at Lookers we have certainly seen the positive effect that this ever-present narrative has had on electric car inquiries around the business, with opportunities to do business up 20 per cent in the five months to the end of May 2018 compared with the same period last year.

Of course, one of the biggest reasons for our increased engagement with the electric car marketplace recently has been the Lookers Electric Charge. This initiative sees colleagues, including senior directors, raise money for industry charity Ben by travelling more than 2,000 miles to over 180 stops around the country, including Lookers’ 155-strong dealership network, in a glorious relay of electric and hybrid cars.

Carbon credits will also be bought to offset any carbon footprint.

Following a successful launch in Ireland, the relay recently visited all 14 of the group’s sites in Scotland – which also operate under the Taggarts brand – with the leg featuring a wide range of fundraising activities, including a carpool karaoke and fancy-dress challenges.

Among the cars that were tested for their driveability and range were the new model Nissan Leaf, the Hyundai Ioniq, the Audi A3 e-tron, the Range Rover Sport P-HEV, the Volvo XC90 plug-in hybrid and the brand e-Golf – 18 | CarDealerMag.co.uk

Lookers chief executive Andy Bruce and Glasgow Audi sales executive David McVey help bring the Electric Charge to Scotland. Below: The new Nissan Leaf is one of the cars involved the fully electric version of the classic Volkswagen model.

While the Electric Charge’s main aim is to raise as much as possible for a charity that provides so much vital support to those industry colleagues in need, the initiative has also provided some incredibly useful insights into the electric vehicle marketplace.

For example, data showing that it’s the older demographic that seems to be adopting electric vehicles at a markedly higher rate than younger drivers can only help us to ask the right questions and focus our efforts as an industry.

By working together and joining the conversation we can truly make the most of a technology that is clearly here to stay.

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CarDealerMag.co.uk | 19

Dashboard.

COURT CASE

Fraudulent car dealer is jailed for three years

A

Berkshire dealer has been jailed for three years after being found guilty of fraud related to his used car business.

Issa Abuissa, 47, of Manchester Road, Reading, had operated a used car business under various names, including Binfield Trade Cars, Budget Trade Cars, Budget Car Sales, Compare Trade Cars and Crown Auto Motors, from his premises in Moor Lane, Binfield.

The sentencing at Reading Crown Court followed a lengthy, complex investigation by the Public Protection Partnership (PPP) Trading Standards Service working with the PPP Joint Case Management Unit, prosecuted by Wokingham Borough Council’s legal team.

The probe was launched when Trading Standards received complaints from the public who felt they had been misled by Abuissa, said the council.

After a two-week trial, the jury found Abuissa guilty of four counts of supplying an article for

use in fraud, after selling customers used cars with altered service books suggesting the cars had been serviced when they hadn’t been, and two counts of possession of an article for use in fraud, where he had two false stamps used in service books, four altered service books and 13 blank warranty booklets.

He was also found guilty of seven charges of dishonestly making false representations to customers who bought used cars from him.

These false claims amounted to telling customers the cars had a full service history when they didn’t, that the car had the benefit of a WMS Group warranty when he didn’t intend registering the warranty applications, and in one instance falsely stating the car was in excellent condition.

Abuissa was sentenced to 36 months in custody. Wokingham borough councillor Norman Jorgensen, chairman of the joint public protection committee, said: ‘The level of criminality is demonstrated by the sentence.’

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RESTRUCTURE

New managing director at Jaguar Land Rover UK

RAWDON Glover has been appointed UK MD of Jaguar Land Rover as part of a major restructure. Jeremy Hicks remains with the business to take up a new position of (global) market performance director.

From July 2, Anthony Bradbury, global marketing communications director, will become UK marketing director and Scott Dicken will take up the role of UK sales director. Glover, pictured, said: ‘I am delighted to be taking the role of managing director for Jaguar Land Rover UK at such an exciting time for the industry.’

Hicks said: ‘It has been a privilege to help shape the future of Jaguar Land Rover in its home market during such a strong phase of growth and positive change.’

Beyond finance “I’m more like a consultant, taking time to understand the dealership so that we can add real value to their business.”

Watch Aimee's video to see how: blackhorse.co.uk/beyondfinance

Aimee Winder Account Manager North East Region

A better way of doing business CarDealerMag.co.uk | 21

Dashboard.

INTERVIEW

Dealer network gets volt of pure confidence from the top brass Alex Smith has been heading up the UK arm of Nissan for two years and has just introduced one of the most important cars into the range. He speaks to Rebecca Chaplin about the successes, changes and challenges for the brand.

‘The consumer interest has been stunning and we started to see that in the pre-launch.

We measured online activity very closely and started to see online inquiries for Leaf reach really impressive levels.’

N

issan might appear to be fully focused on the new powertrains and new technology, but UK managing director Alex Smith is still firmly fixed on ensuring that the dealer network remains strong and on top of the EV game.

‘The Nissan dealer network has got a really strong competence in being able to represent the product, the product’s capabilities and the way the product integrates into the wider environment for customers,’ he explains.

Nissan dealers are now on the exciting next step of retailing, as he puts it – the ‘first secondgeneration electric car’ to hit the market.

After seven years of retailing the Leaf, Nissan has built up a vast fount of knowledge when it comes to educating customers about their future EV lifestyles.

‘When I joined Nissan, I knew I really had to increase my education level of EVs, and the best people to speak to were the Nissan dealer network, without a doubt.

‘Seven years of experience representing the product correctly, really understanding customer queries, customer needs, the way that an EV integrates into someone’s mobility lifestyle – it was the Nissan dealer network that had seven years of experience and can tell you what you need to know.’

Communication has been key, and Smith tells us that this has been a focus for him and senior management at Nissan.

‘I think we’re making progress,’ he says. ‘I think 22 | CarDealerMag.co.uk

Nissan’s Leaf has the distinction of being the first second-generation electric car on the market that it’s absolutely critical. We work in a very dynamic industry that has lots of opportunities and lots of challenges, and the best thing you can do is communicate.

‘If you do my job, you go home in the evening and you feel like you’ve never done enough, no matter how much emphasis you put on network communication. It’s something that’s imperative to make time for, but you always want to do more.

I also think that the answer is not just with the MD of a business. One of the things we’ve done that has hopefully made a positive difference to the network is change our field sales structure to put more senior management in the field, in

direct, daily, multiple-times-per-day-if-necessary communication with the dealer network, and to that extent I think that’s starting to get recognised as a positive step.

‘I think when we meet with the Nissan Dealer Association, which we do regularly and very intensively, the spirit and the constructiveness really does come through. And where we have issues, I do feel we are pretty good with them with tackling them together.

‘There is nothing that can’t be said in the room.

Sometimes they’re pretty frank, but they are always constructive and always trying to improve the business, which is all you can ask for.’

Will dumped car court action succeed?

Lawgistics, p78

‘When I joined Nissan, I knew I really had to increase my education level of EVs, and the best people to speak to were the Nissan dealer network, without a doubt.‘

Nissan’s UK MD Alex Smith Although things haven’t been ideal with the dealer network, there has been a clear improvement in Nissan’s relationship with its dealers. ‘We’ve started to make progress in terms of NFDA [National Franchised Dealers Association] results, which in the middle of last year obviously weren’t particularly happy reading for the Nissan brand, and we’ve just had the Winter 18 survey, in which overall the sector moved back – but we were the most improved brand,’ says Smith.

Things are looking up, but the Nissan network still has a big challenge ahead. It might have seven years of experience when it comes to EVs but some have certainly questioned whether the brand is falling behind. Tesla is now delivering its third electric car, Jaguar has released a luxury EV, and at the more affordable end of the market Kia and Hyundai are adding a selection of all-electric vehicles to their line-ups – meaning there’s more competition than ever.

However, the number of Leafs registered has now surpassed 100,000 in Europe, with 37,000 of the new car ordered in the past eight months.

‘The consumer interest has been stunning and we started to see that in the pre-launch. We measured online activity very closely and started to see online inquiries for Leaf, even before it went on sale, reach really impressive levels. We referenced the data we had compared to data we had for other models, and we thought this looks not just encouraging but quite phenomenal. However, you never really know exactly how a car is going to be received before you put it on sale, but the interest in Leaf and the conversion to customer orders has been exceptionally strong.’

It’s fair to say that the lessons learnt from the last generation of Leaf don’t mean that Nissan dealers have all of the answers. With new technology being introduced on the Leaf, Smith explains that it’s changing test drives.

‘It’s the technology in the vehicle which is being specified by customers, and the high level of technology is really encouraging.

‘Obviously, every Leaf has the regenerative braking e-Pedal, which has really been a hit with customers. It’s modified the way that test drives

are carried out,’ he said.‘It’s something you come from two angles on.

‘First, it’s a piece of technology that can be explained and can be simulated but really has to be experienced to be understood. But then when people drive new Leaf the response we get to e-Pedal is really fantastic.

‘Customers are finding it very intuitive, and because people are enjoying driving it in a different way, it then becomes a competition with yourself to work out exactly where and how much you need to lift off to get from a 50mph limit to a 30mph limit at exactly the right point without using the brake pedal.’

Smith added: ‘My drive home is just short of 50 miles, and genuinely I will touch the brake pedal twice in that journey.’

It’s certain he won’t be able to slow down in the business any time soon though, as the next generation of crossovers will have electrified options and a fully electrified crossover is coming before Nissan’s mid-term plan ends. It sounds like there will be plenty to keep those EV specialists at dealerships busy for the foreseeable future.

CarDealerMag.co.uk | 23

Dashboard.

DISQUALIFICATION

APPOINTMENT

Company ban for dealer over accounting failure

Howkins is new managing director of Citroën UK

A

car dealer who bought and sold luxury vehicles has been banned from running companies for 13 years after failing to maintain adequate accounting records.

Zaid Fares Al-Safee, 29, from west London, was a registered director of Exotic Global Ltd, which traded from Park West Garage, Underground Car Park, Park West Place, London, and sold new cars and light motor vehicles.

Unexplained trading activities included the purchase and sale of 14 luxury vehicles in excess of £1.2 million, VAT assessments totalling £498,106.80, the expenditure of a £318k loan, as well as the purchase and sale of 45 vehicles totalling £354,553 and two personalised number plates totalling £40,023.

The company was first incorporated in 2013 but in June 2015, after almost two years of trading, Exotic Global was placed into creditors’ voluntary liquidation and an insolvency practitioner appointed. However, an

unco-operative Al-Safee failed to deliver Exotic Global’s accounting records to the practitioner.

The Insolvency Service then carried out an in-depth investigation but the continued absence of accounting records prevented the government agency from being able to verify who had control of the company’s affairs. This included the income and expenditure of the company, including Al-Safee’s remuneration, the acquisition or subsequent disposal of assets and the full nature of Exotic Global’s trading activities.

After a two-day trial before Insolvency and Companies Court judge Clive Jones at the High Court, Al-Safee was disqualified for 13 years, banning him from directly or indirectly becoming involved in the promotion, formation or management of a company without the permission of the court.

Ken Beasley, Official Receiver for the Insolvency Service, said the length of AlSafee’s disqualification reflected his ‘serious misconduct’.

KARL Howkins has taken over as Citroën UK’s managing director. He has replaced Bek Hassan, who is transferring to a senior position in Paris for the PSA Group.

Howkins, 46, pictured, was previously MD of Opel Switzerland.

Stéphane Le Guével, director general of Peugeot Citroën Automobiles UK Ltd, said: ‘It is a great pleasure to welcome Karl to the team as Citroën UK’s new managing director. The Citroën brand will launch several significant new products in the next few months, so I am pleased that Karl’s appointment is happening now.’

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Behind the scenes REBECCA CHAPLIN

Blackball Media’s head of editorial is never afraid to tell it like it is

It’s time to embrace change – one of the key lessons we learnt at CDX

I

might manage a couple of magazines for a living and occasionally spill some words on to a page but even I was listening intently at CDX 2018 for top tips that could change the way I work. I don’t run a dealership, but I do have a team of people and something to sell – even if it’s just getting you to agree with me by the end of this column.

You might have noticed that I spent most of my time sitting on stage or hosting breakout sessions during the two days of the event.

This meant I had a good opportunity to listen, and there were a few key themes that struck me.

Of course, I would say this, but if you read one thing about CDX then read this column. However, as I’ve been collating the words and pictures from the show into the feature just a few pages beyond here, I have realised there’s no way I could cram every excellent point on to a single page.

I’d strongly advise reading the coverage, but there is nothing like actually being there on the day and taking part in what goes on. I was in the privileged position of being able to ask plenty of questions and these were the recurring themes I noticed in the replies I was given.

by finding people similar to them on social media. True, you don’t know who these new people are, but you can advertise to them and that’s what really matters.

Convenience keeps customers While your customers might want to feel like they’re being treated as individuals, that doesn’t mean they actually need to be greeted by an individual every time. There are a lot of ways that you can make the shopping experience easier, but one easy solution to suit customers at all hours of the day would seem to be chat bots on your websites or social media channels.

You’ll have seen that Volvo is working with Amazon to offer Prime Now test drives in two hours, and more car dealers are offering the option to shop online and have cars delivered to your home. It might not be convenience that every business can offer but there’s a market for it. It’s simple: if you make life easy for people, they’re much more likely to buy from you.

‘More dealers are offering the option to shop online and have cars delivered to your home.’

Treat everyone as an individual We’re all different – that’s something we should have realised by now. It seems we’re still trying to force customers, employees and colleagues all into the same boxes, but by treating everyone as an individual it can make everyone’s lives a little bit easier.

On our customer service panel, we talked about whether we still really need salespeople at all. While artificial intelligence is being used more and more, there are some personal touches that only a real human can offer.

We all need to appreciate the roles our staff play, though, and we discussed in the Women in the Motor Industry breakout session that it’s not just about how women are treated – it’s about enabling everybody to have a work-life balance and be happy in their jobs.

Use data to find people who are the same Did I say everyone was different? We’re individuals but many of us have the same tastes, are interested in the same events locally, maybe eat in the same restaurants and watch the same TV. As GDPR was just days away when CDX took place, it was a key topic. However, by using your existing approved customer database it is possible to increase your spheres of influence in a completely legal way,

Have the right people in your team We talk a lot about technology changing – but do you have the right people in your team to make the most of new ways of working?

Manufacturers and dealer groups responded to the growing need for customers to understand more complicated systems on their cars by bringing in product geniuses.

Ask yourself, do you have the right people in place to make the most of the bits you don’t understand in your dealership? Do you have expertise on hand when it comes to technology?

We can’t avoid the fact that mobility is changing Many at the show seemed keen to prove that the end of the dealership is not near. My argument? Well, the car has been around for longer than the dealership and we’ve been owning them in the same way for a very long time – until now.

All of a sudden we seem more willing to share these big investments, borrow them when we need them and pay for them over much longer periods of time. As Mark Thomas from Ridecell pointed out, only one in 100 miles travelled today is in a ridesharing situation but by 2030 it’ll be a third.

I’ve already mentioned Volvo’s new scheme, which might seem small-scale and gimmicky right now, but if the industry doesn’t wake up and make some changes, the big boys of online retailing will be muscling in…

Rebecca Chaplin is head of editorial at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV. CarDealerMag.co.uk | 27

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WINNER WINNER

Big Mike Our man on the inside shares his thoughts on the car business

Transport of delight that got me back on the right track for a journey home

I

’m kicking myself this month. The reason? I was hoping to get to CDX – the expo and trade event organised by the people who bring you this very magazine. I’ll explain in a minute why I couldn’t attend, but one gentleman dealer of my acquaintance who did make the journey to Manchester told me he had a whale of a time.

Not only did he learn a few things from those on stage, which proves that you certainly can teach an old dog new tricks (very old in his particular case), but he mentioned that he ended up having to re-evaluate years of ‘dealer’s nose’ wisdom from the Car Sales 101 sessions at the show.

I’d love to have been there with him but a long-planned family get-together meant that although I was heading north at the time of CDX, my destination lay about 40 miles away from the venue for the event. Leeds, to be precise.

The family do went rather well, thank you very much. The only mistake I made was to stay on for a few extra days afterwards and then place my reliance on public transport.

The failings of the Northern Rail franchise’s timetable have been well documented in the press, but that wasn’t enough to prepare me for the problems I encountered, thanks to the introduction of the new timetable – not least, of course, because I’m not what you’d call a regular train passenger.

I had, however, sold a very tidy Land Rover Discovery Td5 in an eBay auction earlier in May, and being the wily old fox that I am, I offered to deliver it for a few extra quid, knowing that the winner lived in West Yorkshire and I had to get up there to see my folks.

The drive up went without a hitch – the Discovery buyer was very happy with her purchase, and I was cast into the public transport network with the best part of two large tucked away in the inside pocket of my North Face.

As I’ve said, the family visit went swimmingly, but trying to get home from Leeds was a nightmare, thanks to the blithering idiots at Northern Rail who decided to implement a new train timetable for the entire ‘top half’ of England without (seemingly) telling any of the drivers, guards or station staff.

The platform at the station when I first tried to go home was like a scene from The Walking Dead, with zombified commuters trudging from one platform to another in a state of utter

bewilderment. The notion of trying to get from one provincial station north of London to another filled me with more dread than the idea of being nipped at by a blood-sucking member of the recently undead, so I turned in desperation to my iPhone for help.

But it wasn’t a taxi number I was after…

Instead, I called up the Gumtree app, and a couple of text messages and a quick phone call later had me jumping aboard a Honda Accord courtesy of Uber and out into the city’s northern suburbs.

Within minutes of arriving, I was thankfully on my way again, this time at the wheel of a Racing Green Rover 400 diesel, which I’d agreed to buy on the phone for £150 – roughly the same price as my train ticket home. What’s more, in the car I was even guaranteed a seat, albeit a beige velour one.

Two hours later, I was pulling up on my drive, somewhat chuffed that the quarter of a tank of heavy oil had managed to get me all the way back to base in a way that no modern diesel can do, because they’re impossible to drive ‘off-the-turbo’ – a hypermiling technique I picked up back in the days of first starting my business and being bereft of the proverbial pot in which to urinate.

The experience reminded me of my early days in the trade, where we used to head to the auctions in Walsall at the wheel of whatever heap of steaming dog-doo we’d taken in part-ex that week to buy new stock, as it was easier than buggering about with public transport.

Often, if we bought something better, we’d then book the vehicle we’d driven up in to go through the following week’s general sale, where we’d get a few quid back.

If it was truly nasty, we’d just leave it parked up with the doors unlocked and the key in the barrel, until it eventually disappeared in the way that unlocked cars in Walsall with visible ignition keys tended to do…

I even shifted a baby-poo-green Marina 1.3 that way back in the day.

As for my £150 Rover? I considered doing the same, as avoiding the one hideously congested all-stops train that Northern Rail had decided to lay on that day was worth every penny. Except for one thing... It’s actually quite nice.

That’s it in the picture – clean, isn’t she? So, £595 ono? PX to clear with a piffling 76k on the clock?

There’s life in the old dog yet…

‘I was cast into the public transport network with the best part of two large tucked away in the inside pocket of my North Face.’

Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we’re likely to know.

CarDealerMag.co.uk | 29

Dashboard.

Around the world

NOVA SCOTIA

A dealership in Tusket is switching off the lights at its giant showroom overnight to reduce light pollution for stargazers. According to The Chronicle Herald, Marcel Pothier of Tusket Ford said the owner of the Deep Sky Eye Observatory in Quinan had spoken of the light pollution caused by the dealership. Observatory owner Tim Doucette is reported to have said that it was much darker since the dealership lights had been turned off.

Dealer news from somewhere other than here FLORIDA

A car salesman insisted customer Marci Robin tick a Captcha box using pen and paper to prove she wasn’t a robot.

Alphr.com said the Allure Magazine contributing editor was completing the paperwork for a used 2016 Fiat 500X when the salesman at the unidentified dealership handed her a printed version of the checkbox – found on websites to prevent internet bots filling out forms. She said: ‘He just matter-offactly said “And this one is just to ensure you’re not a robot.”’

FRANCE

PSA Retail has opened its first Opel dealership in Paris.

According to Automotive World, the dealership is expected to sell 150 new vehicles this year and 400 on an annual basis. It marks the first step in PSA Retail’s growth plan in France and across Europe, with two more Opel dealerships planned to open this year in Bois-Colombes and Bondy.

JAPAN

Mitsubishi dealerships are installing Dendo drive stations that combine the CHAdeMO DC fast charger with vehicle-to-building capability and solar power. Since plug-in electric vehicles are becoming increasingly in demand, it’s important for dealerships to be equipped with the appropriate charging technology.

With 28 stations already in place, the carmaker plans to install 200 by 2020.

INDIA

Having made its entrance into the Indian car market with the Compass, which became one of the country’s biggest-selling SUVs, Jeep plans to bring in more cars, starting with the Renegade at the end of the year. According to India Today, the Renegade could receive a facelift for the international markets ahead of its launch in India.

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CarDealerMag.co.uk | 31

Dashboard.

Part 15: Staffing up

Cars are flying off the forecourt, business is booming and you could use a spare pair of hands. Time for a new recruit… Dan Read gives you the lowdown.

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o matter how much hard graft you do yourself, it’s likely that – after a while at least – you’ll need some help, whether it’s someone to answer calls, valet cars, transport them around, prep them, or maybe a bit of everything. But when it comes to hiring and firing, car dealerships are no different to other businesses. Employment law can be an obstacle course with all sorts of booby traps, but don’t let that put you off – as ever, our experts are here to help…

CONTRACTS AND SMALL PRINT Before you go writing the job ad, think about who you really need and what exactly you need them to do. If it’s just someone to wash a few cars or move them from one place or another, you could consider using a self-employed contractor, who would invoice you for the work like any other supplier. But watch out, because the line between ‘worker’ and ‘employee’ can be easily crossed, and – if not properly managed – could land you in trouble.

‘If they come in every day – effectively working full time for you – and you tell them what to do, then there’s a likelihood they will be considered an employee and you then have obligations, such as making National Insurance contributions,’ says Graham Jones of motor trade legal experts Lawdata.

In other words, there’s no fudging it.

If you want to employ someone and become a big boss, there are certain things you must do in order to keep everything on the straight and narrow. To find out more, we spoke to Nona Bowkis of Lawgistics, providers of legal help to the motor trade.

‘Independent car dealers should have a basic understanding of employment law if they are going to employ someone,’ she says.

‘For example, there are certain terms and

‘Independent car dealers should have a basic understanding of employment law if they are going to employ someone.’

Nona Bowkis of Lawgistics 32 | CarDealerMag.co.uk

conditions employers are legally required to give an employee within the first eight weeks of their employment.’

Top of this list is a proper contract. Don’t worry if you haven’t written one before, because help is at hand. Lawgistics, as well as Lawdata and other providers, can supply you with templates with all the right wording.

‘At Lawgistics, we are about to launch an online compliance portal which will include an HR Manager function – dealers will just need to input names, addresses and other simple details and it will automatically generate a contract, making it easy to meet the eight-week legal requirement.’

HR ADMIN

Let’s be honest, you’re here to sell cars, not deal with doctors’ notes and lame excuses. But nobody’s perfect, and that goes for bosses as well as employees. Which is why it’s a good idea to put some procedures in place to protect yourself and your workforce in case things get sticky.

A good place to start is acas.org.uk, which has loads of tips on how to log hours, sick days and holidays. Keeping good records of these is really important, especially if there’s ever a dispute.

It also has tools for dealing with disciplinary issues in order to avoid expensive employment tribunals. But what if things do take a turn for the worse?

Back to Bowkis. ‘In many cases, it’s relatively risk-free to dismiss an employee if they have been employed for less than two years,’ she says. ‘This is because for most cases of unfair dismissal, ex-employees can only access an employment tribunal after two years of service. However, there are times when they can make a claim for unfair dismissal, so always seek specialist advice before considering dismissal.

‘For employees with more than two years of service, the dismissal process is very different, and so you must follow the Acas Code of Practice and not take any shortcuts. The same applies to all parts of the disciplinary process, including when issuing warnings.’

You’ll also have to think about maternity leave, paternity leave, compassionate leave and, of course, health issues – both physical and mental.

Take special care around these and seek as much advice as possible.

Portals such as the Lawgistics HR Manager will help to lighten the load – it sets out the required steps and provides template letters for all sorts of issues. It’s included in all but the most basic membership packages.

PAY

Almost all workers in the UK are entitled to be paid at least the National Minimum Wage. The current rates are: Age Minimum hourly rate 25 and over £7.83 21 to 24 £7.38 18-20 £5.90 Under 18 £4.20 Apprentice (first year) £3.70 You might also read about the ‘National Living Wage’, which is effectively the highest rate of the National Minimum Wage.

Then there’s the Living Wage (without the ‘national’), which is set by a separate foundation and is voluntary. The rates for that are £8.75/hour nationally or £10.20/hour in London.

Finally, you may decide to offer your staff a basic rate of pay that is topped up by bonuses for achieving certain targets, especially in sales.

If you opt to pay your staff like this, make sure that the arrangement complies with employment legislation, and remember, an employee’s overall pay must still meet the National Minimum Wage.

OTHER IMPORTANT STUFF

If by now you’re wondering whether it’s all worth it, bad news, because there’s more…

Taking on staff means you’ll have to set up a payroll (most accountants can run this for you), make National Insurance contributions, and – thanks to a new law – employers must automatically enrol workers into a workplace pension scheme if the employee is aged between 22 and pension age and if they earn more than £10,000 per year.

Then there’s employer’s liability insurance, which according to Bowkis is ‘a must for employers from day one of taking someone on, as failure to have adequate insurance in place can

‘Don’t forget good old health and safety, and the importance of doing proper risk assessments.’

lead to large fines’. It’s not expensive, and many providers wrap this into other insurance plans.

Don’t forget about good old health and safety and the importance of doing proper risk assessments, either. ‘It really can’t be ignored,’ says Bowkis. ‘The Lawgistics online portal also has a digital health and safety system, which means checks can be undertaken on an iPad and digitally stored.’

GET HELP

There’s a lot to get your head around, and on top of everything else you have to worry about you simply won’t have time to become an expert on HR and employment law. So seek as much help as you can. Seriously consider signing up to Lawgistics or Lawdata.

Also, take a look around the Acas website (it has all sorts of practical advice and workshops) and keep an eye on gov.uk for updates to employment law. It may seem like a huge hassle, but as your dealership grows and you take on more staff it’s essential stuff.

‘If you get it right from the outset it’s a lot easier,’ says Bowkis. ‘Treat it as a serious issue from the beginning and you’re less likely to have problems as you go along.’

CarDealerMag.co.uk | 33

Feedback.

Your comments via email to dave@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

Can we talk about nice THEY do exist! I had a young lad come all the way from Shropshire to me (Kent) to buy a Black Edition Audi. He’d paid a deposit on seeing the video and photos and was literally coming to pay the balance and drive off.

The test drive confirmed his enthusiasm for the car and we drove into town to visit a bank to complete the financials as his online banking wasn’t working. I drove the car back and 30 yards from my door the EML came on!

I drove it straight round to my local garage and they plugged her in. Oil pressure switch was the guilty party. Punter was completely fine with all this, was happy to drive it home, take it to his local garage, get a quote and get it fixed and I would pay the bill. Two days later it’s sorted and he left me a five-star review.

EPV I had a lovely couple buy a Mini off me last week.

They left a hefty deposit and travelled all the way from Dorset to Corby! Said they loved the car and were extremely pleasant to deal with.

Mikey360 I like all the customers, regardless of their behaviour. It’s only the time-wasting, best-offer brigade that really get my hackles up. Sold six this month, all genuinely good folk.

Mark101 We have lots of repeat customers. I am always reminding the staff when things go wrong, now is our time to shine. Show the customer why they paid that little bit extra. Get the car in, get it fixed, cleaned and keep them informed. That’s how you can turn a fault into a repeat customer. justina3 Had a very lovely young family buy an Audi Q3 off me recently. After a couple of days, they called to say the brakes were grumbling a bit at the rear. The car had passed an MOT fine but probably a combo of wheel acid and standing

Picture of the month

when he had an issue with the last one after a couple of months I got it fixed for him with no hassle. Nice to hear from a customer that doing the right thing by them does (sometimes) count for something. I think people generally respect you being open and honest – but we all have a scumbag now and again who spoils your day.

Matt Reid I sold a Golf GT TDI MkVI yesterday. Lovely bloke, no-hassle sale, they do exist.

Tom

Well done on CDX!

Silence in court! This edition’s Picture of the Month had to come from CDX. It features events manager Amanda Philp, who has donned the wig normally worn by ‘The Judge’ from Lawgistics (Ian Gardner, left). Also in the shot is sales and marketing director Joel Combes. All three have very suspicious looks on their faces... Guilty as charged ! about killed them off. I suggested they come back and said that if I agreed, I would change them.

They duly came back and after we changed the discs and pads FOC while they had a coffee locally, they were on their way.

They actually sent a text message thanking me later that day. And last week they left a five-star review. Genuinely nice, decent people.

Rory RSC I’d class most of my paying customers as good punters. Had one back in on Friday who had bought a car from me a couple of years ago and said the reason he came back to me was because

I just wanted to thank you and congratulate you and the team for putting on the CDX 2018 event.

Myself and colleague Colin Singh found it very useful and it was a joy to be there.

Access to the venue was very easy and a far more ‘relaxed’ atmosphere than Silverstone.

We particularly enjoyed the Live Stage and the seminars were very informative and excellently presented. Well done and many thanks.

David Cheadle Cheadle Motors, Wolverhampton Thoroughly enjoyed CDX. Lots to take in, interesting workshops, although I couldn’t get to them all. Great speakers and panel Q&A sessions.

Also great to meet so many dealers face to face, some I’ve never met and others just to catch up. umesh It was a great event, well worth making the effort to go. You get out what you put in in this game.

I am already money up having attended. A few little tweaks soon bring the money in.

Rory RSC Found it very useful, met some great guys and girls for the first time, had some interesting and constructive chats and overall people spent the time to engage with us and sign up.

Kieran @ Cazana

Top CDX tweets Great day at #cdx18 – superb venue and great to see so many suppliers/partners.

Ian Godbold @Godders99

the government taking its responsibility to ensure the necessary charging infrastructure is there.’ #CDX18 Land Rover UK PR @LandRoverUKPR

Proud. Marshall Motor Group – @CarDealerMag ‘Most Influential Dealer on Social Media 2018’. #CDX18 #marshallmoments Marshall Motor Group @MarshallGroup

Thanks for having me @CarDealerMag #CDX18 Cheryl Croly @chez

Jeremy Hicks, JLR MD, on the Road to Zero by 2040: ‘As an industry we must continue to be a significant net improver but it’s equally about

Looking forward to speaking at @CarDealerMag #CDX18 today!!

John Tordoff @tordoff_ john

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Rocking the stage with these legends! #CDX18 phill hastings-jones @philljones

More and more of our readers are joining the debate – and it couldn’t be

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

punters for a change?

The best and worst decisions made over the years...

Buying online ‘unseen’ or without having a look before returning and bidding online.

Mark 101 Far and away making the change to get involved full-time in campers [was the best decision I made]. I work longer hours for sure but I enjoy what I do. People seem genuinely interested in what I do, I get huge job satisfaction.

MrC Best: Opening the doors three years ago with no experience and a two-week-old driver’s licence.

The insurance wasn’t the kindest that year but it’s been worthwhile. No worst decisions yet. Lots of stuff hasn’t worked out as planned or has had to be changed but that’s not a bad thing so long as you learn from it. grant8064 A long time ago against a lot of competition, we

acquired the lease on a very good pitch. It was expensive and the car dealer landlord made us pay one year’s rent in advance. However, we did very well there. Come the first rent review, the rent was being doubled so we sold the lease and bought what seemed to be a good out-of-town showroom. It was a bad move and we had to board it up and move out. trade vet I like opening on a Sunday – everyone is a bit more laid back, I find. Boosts our sales figures massively with a minimum 10 extra cars sold over a month. It also works out as a good day to catch up on videos in between customers.

Rory RSC There’s absolutely no chance of even getting to speak to me on a Sunday because my phone is off. I don’t care whether I’ve had a purple patch or not sold a car in a fortnight – I made the

decision about five years ago to sack off Sundays due to the tyre-kicker contingent.

BHM Best decision: Get a stocking facility and move away from the £3,995 price point. Second best: Get a much cheaper stocking facility a year later.

Worst: Quitting my full-time job (health and safety, didn’t enjoy it) in 2006 instead of 2005 when I first decided I want to deal in cars.

Nick M.K. Best decision was to walk away from the paid job at the main dealers I’d been with for 15 years and start up on my own in 1997 (and close Sundays from day one!). Worst decision was to take a friend on as a salesman many years ago who wasn’t performing. I lived with the situation for far too long ... nearly three years too long.

Expensive mistake but we all learn! umesh

SERVICING & REPAIRS

Do you do mechanical work or outsource it?

Been under the wife’s C-MAX for most of this morning replacing the lower wishbone bushes. Thankfully it all went well and the lower ball joints actually came off with a little encouragement from my trusty hammer. I’ve always been reasonably handy with car work – I learnt from the old man.

I’m looking at changing the cambelt and water pump on an Audi TT I picked up yesterday from Birmingham, and the engine bay just looks too tight! Been quoted £390 to get it done this Thursday and it’ll be the first time I’ve had a garage do something like that.

What jobs do you guys outsource?

Mikey360 Everything. I’ve changed a flat tyre and the occasional wiper... nothing else.

Arfur Dealy Mostly everything. Have changed window mechanisms a couple of times, etc, but everything else goes to mechanics. tradegirl Most things. I’ll do the odd bulb, battery, coil

pack and fault diagnosis etc, but as for getting my hands properly dirty, those days are behind me. I can get discs and pads changed for between £10-£20 labour depending upon their mood, and the other week I had a secondhand gearbox in a petrol Zafira both supplied AND fitted for £150. At these prices there’s no chance of me getting oil behind my fingernails.

BHM We don’t get our hands dirty. Don’t have the time or the skill set. grant8064 I think in this job we can make a lot of money by working smart and working to our strengths. Can make far more money in buying and selling than I can fixing cars or cleaning them.

Rory RSC Spot-on. No point in changing a set of brake pads when you need to be sourcing cars or working on

ways to sell what you have. If I had a decent valeter who would do a car to my standard for £75, I’d happily pay that. As it stands, my local place does an okay job for £75, but if I want shampooed carpets, air vents cleaned and door shuts degreased, I have to pay £125 and book him three days in advance. So I spend six hours doing it all myself and getting it done to my standard.

But yeah, changing brake pads and oil to save £50, not for me.

EPV I trade as a second job and only sell two or three a month. As my margin is around £400 per car, I do most of the work on the car myself.

Will do some small paint jobs/ touch-ups myself but leave bigger jobs to my paint guy. Nearly everything mechanical/electrical though I will do myself, as if I pay someone else I might make 50p per car!

I have a few Haynes manuals for the cars I regularly do.

Mistermuttley

easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum

The publisher reserves the right to edit submissions.

CarDealerMag.co.uk | 35

Finance.

EXCLUSIVE SLOTS

JBR Capital is made finance partner for £1.2m Brabham O ne of the UK’s leading independent finance providers dedicated to highend vehicles has been revealed as the official finance partner for the unique track-only 700bhp, £1.2 million Brabham BT62.

JBR Capital has five exclusive build slots to offer clients, along with bespoke finance packages, including monthly repayments quoted at £16,005 (over a 36-month term).

The first BT62 deliveries are expected later this year.

Powered by a 5.4 litre V8 engine and delivering 1,200kg of downforce, only 70 of these highly anticipated supercars will be made.

The limited production run of the BT62, pictured, celebrates 70 years since the start of Sir Jack Brabham’s illustrious racing career, in 1948.

Alternatively, for mid-to-entry-level Ginetta racing cars, a G55 GT4 can be financed by JBR Capital with monthly payments of £2,367, or a G40 GRDC would be £818 per month.

To date, JBR Capital has, as a direct lender, created bespoke finance

packages on Aston Martin Vulcans, Porsche Cayman GT4 Club Sports, Ginetta sports racers and BTCC saloons, as well as some of the more legendary marques from Formula One. Darren Selig, JBR Capital’s executive chairman, said: ‘We tailor finance for top-level to entry-level racers and the collector. No matter if

it’s class-leading speed our clients are after or if it’s a unique piece of motor racing history, we individually assess every car we finance and create a bespoke finance package that works for each unique buyer.

‘It is a privilege that JBR Capital has been selected as the official finance partner for the Brabham BT62.’

Outstanding finance is always a deal breaker, say most buyers

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Milestone of 100 billion quotes reached MORE than 100 billion motor finance quotes are now being generated for dealers by iVendi every month, the company says.

The quotes are preconfigured to almost every possible variation of vehicle, finance product, quote length and deposit across many thousands of dealers, so that they can be delivered instantly to used car buyers using a payment search online.

Chief executive James Tew said: ‘Every month we quote using an average of 768 parameters for every vehicle listed by each of our dealers for every one of the finance products and providers that they offer.

‘That’s how we have hit the 100 billion milestone.

‘It’s a reflection of the growth in the number of dealers using our technology and the general increase in online motor finance that the car market is seeing.’

CAZANA

SURVEY

NEARLY two-thirds of used car buyers CDL Vehicle Information Systems, say outstanding finance is ‘always which owns mycarcheck.com, said: a deal breaker’, according to a new ‘Under popular types of finance survey by mycarcheck.com – and the agreement, notably PCP, ownership vehicle history checker says that’s a of the vehicle is often retained by the problem, since one in four cars on UK finance company. roads have debt secured against them.

‘The crux for buyers is that the It asked 100 callers to its Glasgow finance provider can be within their centre in May 2018: ‘When buying a rights to seize the vehicle back.’ used vehicle, is outstanding finance He added: ‘To complicate matters, always a deal breaker?’ Sixty-five of the picture has changed a bit in recent them answered yes and 35 no. years. As some of the respondents First response 11:15:13 Mark Bailey, who is- Strip the 1.pdf head1of04/05/2018 who said finance wasn’t necessarily a

iVENDI

deal breaker pointed out, third-party payments can sometimes be made to clear the outstanding debt.

‘On the other hand, some of those who said finance was a deal breaker had been bitten before and would rather walk away.’

CDL Vehicle Information Systems carries out more than a million lookups a day for companies including Auto Express, CompareTheMarket, GoCompare, Moneysupermarket, Swiftcover and Tesco.

First US reseller partnership AUTOMOTIVE start-up Cazana has signed its first US reseller partnership with a company led by ex-BMW Financial Services USA chief executive Ed Robinson. The deal with Robinson Advisory was struck during a trip to the States organised by Lord Mayor of London Charles Bowman to boost trade.

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

Remember the golden rule: if at first you don’t succeed, try and try again

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ou may have noticed that we have had a new direction of message within our adverts recently, moving away from the adverts of old and venturing into sharing our new IT-focused approach.

The non-prime market has always been seen as being behind the prime finance market from a technological perspective.

Now we feel we can challenge this perception face on, with an application process that equals, if not surpasses, other processes.

As a company, we have spent the past few years developing our own bespoke underwriting software, with internal customer relationship management and an interlinked bespoke dealer portal. This has all been built internally by our IT department, and at the time of writing this article we have had 130 sprints of development, with three to eight developments in each sprint. Each and every development has been done with our dealers and customers in mind, working to improve our workflow, bringing you quicker, easier and more efficient processes.

For instance, we now offer instantaneous decisions whereby you or the customer have a decision in seconds from submitting an application. This process is far superior to the old way, which would take days – sometimes weeks – to get a decision.

Another area of efficiency improvement is that we now receive the customers’ proofs directly from the customer. We’ve all had a customer who comes down to the dealership/showroom without their proofs, which meant they needed to go back home and couldn’t get back to the dealership for a few days. That issue has now gone with our

document/proofs uploader, as a customer can upload them from anywhere via their phone or PC. The customer can also upload as soon as they need to, speeding up this area significantly.

Another stumbling block in the past was the timeframe between customers coming to sign up, or the effort of having to print their documents off multiple times, etc. This has now been given to the customer to do at their leisure, which means you don’t need to make appointment after appointment just to sign. The customer just needs to read and sign the contract on their phone or PC. You may feel this article is a bit of a sell, and I suppose it is a little, but I’m really proud of the way that dealers are talking about our new online portal and all the changes we’ve made. We’ve done a lot and have had some really great feedback from you all.

However, this article is also meant to be a thought-provoking piece. People say that ‘Rome wasn’t built in a day’ and some add ‘but they laid bricks daily’, which is of course true. To make things work in a way that people enjoy and want to use, you need to build it over time – you need to refine it and edit it constantly.

So, for instance, if you are having a website built or redesigned, you must be prepared for it to have issues or for it not to be perfect immediately. It will need a number of changes to get the user experience correct. You may get the customer landing on your page quite easily but that’s just the start. Getting them moving through to an action point, such as applying for finance or booking a test drive, is the tough part. So please remember: if at first you don’t succeed, don’t give up – try and try again.

‘You may get the customer landing on your page quite easily but that’s just the start.’

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

Turn over the page for more finance stories

CarDealerMag.co.uk | 37

Dealfinder.

Finance.

YOUR ESSENTIAL GUIDE TO HOT HATCHES

Hyundai i30 N

VW Golf GTI PERHAPS the most iconic hatch of all time, the Golf GTI is now more than 40 years old and in its seventh generation. The latest model has a fantastic interior, a great engine and is just as good to drive as it’s always been.

As well as 227bhp, it comes as standard with 18-inch alloy wheels, LED lights, sat nav and customisable digital dials.

Volkswagen is currently offering a £1,500 deposit towards the GTI, to which the customer adds £4,487.91. Over the three years, they will make 35 monthly payments of £364.86, so that at the end of the contract the customer will have paid £17,258.01.

If they wish to buy their GTI, they can make the final payment of £12,372.30, as well as the £10 option-to-purchase fee. This brings the total amount payable by the customer to £29,640.31 – roughly £1,000 more than if it had been bought with cash.

THE i30 N is one of the newest hot hatches on the market and was a cracking effort by Hyundai as its first proper hot hatch.

We’ve chosen the more powerful i30 N Performance 275 with 271bhp here, although it’s still fantastic value for money. Standard equipment includes satellite navigation, 19-inch alloy wheels, traction control, an electronic limited-slip differential and a fruity sounding variable exhaust system.

After the customer’s deposit of £5,599, 36 monthly payments of £325.97 follow. At the end of the three years, this brings the total to £17,333.92.

If the customer then chooses to settle the outstanding finance on their i30 N, they can make a final payment of £13,329, bringing the total amount to £30,662.92 – just over £2,500 more than if it had been bought outright.

SURVEY

UK car buyers ‘keen on digital financing but adoption is slow’ A

global survey on car financing has revealed that while 63 per cent of UK consumers got their most recent loan at a dealership, just 15 per cent got a loan online.

Announcing its findings, Silicon Valley analytic software firm Fico said consumers were planning to move to digital lending – 48 per cent of the UK respondents said they would prefer to apply online next time, which was the highest figure among the nine countries surveyed.

The independent research polled 2,200 consumers across the UK, USA, Canada, Mexico, Chile, Australia, New Zealand, Germany and Spain. The respondents were aged between 18 and 64 and had secured a loan on a new or used vehicle within the past- Strip three years.

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by JOHN BOWMAN john@blackballmedia.co.uk It showed that convenience and immediacy were important motivators. The sample size for the UK was 264, and even though UK consumers experienced the shortest loan application wait time globally, with 63 per cent of buyers waiting less than 30 minutes, 86 per cent said they would accept or consider an instant loan offer to avoid dealing with a bank or completing additional paperwork.

UK consumers were also less likely to consider multiple lenders than those in Spain and Germany: 67 per cent of Spanish and 54 per cent of German consumers considered two or

more offers before making a decision, while in the UK 50 per cent of borrowers considered just one lender. Steve Hadaway, general manager for Europe, the Middle East and Africa at Fico, said: ‘The survey results underscore that consumers expect more transparency, personalisation and speed. There is tremendous opportunity for the industry to move beyond transactional relationships into a long-term, customercentric relationship by providing personalised experiences that give customers more control over the auto buying process.’

First response - Column.pdf 1 04/05/2018 11:21:49

IN ASSOCIATION WITH

Honda Civic Type R THE latest Civic Type R is perhaps the best yet, largely because of how fantastic it is to drive. It’s also helped that the current-generation Civic was designed to be a Type R from the outset. With 316bhp on tap from its 2.0-litre turbocharged petrol unit, it’s the quickest hot hatch here, too.

Standard equipment includes LED headlights, 20-inch alloy wheels, wireless charging plus front and rear parking sensors, not to mention the striking ‘look at me’ bodykit.

A customer deposit of £6,509 is needed, followed by 36 monthly payments of £363.72. This brings the total payable by the customer at the end of the three years to £19,602.92. They can then choose whether or not to make a final payment of £15,559.65 to own it, adding the £10 option-to-purchase fee, bringing the overall amount payable to £35,172.57 – noticeably more than the £31,525 cash price.

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ASE

POS consumer new car finance business grows by value and volume

April recovery as average retail profit rises by £9,900

LATEST figures from the Finance & Leasing Association show that new business in the point-of-sale consumer new car finance market grew 31 per cent by value and 27 per cent by volume in April, compared with the same month in 2017.

The percentage of private new car sales financed by FLA members through the POS was 89.7 per cent in the 12 months to April 2018.

The POS consumer used car finance market also reported new business growth in April of 28 per cent by value and 20 per cent by volume.

FLA chief economist Geraldine Kilkelly, pictured, said: ‘These figures partly reflect a relatively subdued April last year.

‘The POS consumer car finance market overall reported new business volumes up in the first four months of 2018 by four per cent compared with the same period in 2017, in line with expectations of modest single-digit growth in 2018 as a whole.’

THE average UK motor retailer produced a strong performance for April with profit improving by £9,900, according to ASE. The automotive retail profitability specialist said it reflected the upturn in the new vehicle market and the continued strength in used car retailing.

Aftersales also had a strong month in April, delivering £6,000 more profit in the month than in the prior year. This was driven by an increase in hours sold, which in turn drove up labour sales income.

While there was good retail labour growth among some franchises, some are very reliant on warranty income.

ASE chairman Mike Jones said: ‘May registration levels also showed signs of growth, therefore there could be the real prospect of a period of comparative prosperity.’

Market Insight, p83

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Forecourt.

FIRST DRIVE

Cornering

Ford Fiesta ST

Performance Pack cars gain a limited-slip differential.

Jack Evans took to Nice’s country roads to find out if the Blue Oval’s revamped hatchback can regain its place at the top of the pecking order

THE KNOWLEDGE Model as tested: Ford Fiesta ST Price (base): £18,995 Engine: 1.5-litre turbocharged three-cylinder Power: 197bhp Torque: 290Nm Max speed: 144mph 0-60mph: 6.2 seconds MPG (combined): 55 Emissions (g/km): 114 TARGET BUYERS: Those wanting a characterful hot hatch to use every day.

THE RIVALS: Volkswagen Polo GTI, Seat Ibiza Cupra, Renaultsport Clio.

KEY SELLING POINTS: 1. Low entry price.

2. Decent performance.

3. Sharp, nimble handling.

DEAL CLINCHER: The Fiesta ST remains one of the best hot hatches on sale – which is why you should get one.

Tyres

All cars get sticky Michelin tyres bespoke to the ST.

Engine

The new ST makes use of a turbocharged 1.5-litre engine, replacing the old 1.6 unit.

What is it?

What’s under the bonnet?

Following on from a model that set the hot-hatch segment alight, this latest version is designed to be more grown up but just as exciting to drive as that iconic original. Based on the updated Fiesta, the ST needs to do a lot to live up to the reputation set by its forebear, while fending off competition from some serious rivals.

The new Fiesta ST has dropped a cylinder compared with the older car, with a 1.5-litre three-banger now under the bonnet rather than a 1.6-litre four-cylinder. Economy is the name of the game, after all, and a smaller capacity engine is designed to deliver better efficiency. However, performance seekers needn’t despair, for the new ST still packs a pretty decent punch. The compact engine produces 197bhp and a healthy 290Nm of torque, allowing for a 0-60mph sprint time of 6.2

What’s new?

There’s a lot going on here to make this latest Fiesta ST as competitive as possible yet easy to live with on a daily basis.

The main things to look out for are the redesigned bumpers and larger alloy wheels.

It manages what the old car did – to appear special enough but not go overboard into the big wings and flared arches territory. Some may think that’s a shame; we think it makes the ST more appealing to a wider audience.

40 | CarDealerMag.co.uk

seconds. Power is sent to the front wheels via a six-speed manual gearbox – there’s no automatic, paddle-controlled version here.

What’s it like to drive?

Though the new ST has lost a cylinder over the older car, you really don’t feel like you’re lacking in engine excitement.

It revs with a keenness you don’t expect from a unit this small and feels properly engaging at all times. The engineered exhaust pops feel a little like overkill on occasion, but they certainly add to the drama.

The three separate driving modes do genuinely change the attitude of the car, with the steering weighting up considerably as you progress through the different settings. It takes a little getting used to, but it’s well judged and feels more than matched to the car’s performance.

‘Performance seekers needn’t despair, for the new ST still packs a pretty decent punch.’

Interview Chris Rushton Product manager for Ford Was the expectation for this latest ST in the back of your mind during development, given the huge success of the old car?

Absolutely. We had a real winner with the prior Fiesta ST. It was a sales success, it captured the media’s attention and it captured the hot hatch fanatics’ attention too! It was the right package and it was the right price – it was a real flyer out of the dealerships. We needed to match that.

Was economy a consideration when you were developing this new car?

I think it has to be. It’s real-world, and it’s about people living with the vehicles. Fords are accessible and fun to live with as well as realistic. The key thing for us was making sure that we harnessed what the ST stands for and what the British consumer wants.

We’ve also added cylinder deactivation technology, and this helps to lower the car’s CO2 figures. We just wanted to make sure this ST was as polished as possible.

Can you explain the new specification line-up?

We now have an ST-1, 2 and 3 – so we have a range of options. We’ve always traditionally done well with the top spec.

The British hot hatch buyer is a discerning one – they want all of the capability but all of the kit as well. Of course, the Fiesta is available as either a three- or five-door too, which gives us an edge over rivals.

How does it look?

The Fiesta ST is rather similar in appearance to its more conventional stablemates. Yes, there are some sportier touches to be found here and there, but overall it looks quite close to any currentgeneration Fiesta. However, that’s no bad thing – the regular car is sharply styled and looks fresh, so the ST is just a follow-on from this, albeit in a slightly sportier direction.

The dual-pipe exhaust at the rear does signal somewhat the car’s intent, while small ST badges in the front grille and on the boot help to distinguish the car from the rest of the range.

What’s it like inside?

The interior of the new ST features just enough sporty touches too, without overcooking it.

The Recaro bucket seats are hugely supportive and have a decent level of adjustment to them.

The flat-bottomed, multifunction steering

wheel is just chunky enough, too. The majority of plastics are of a good quality, and the main dashboard section looks leagues ahead of the car it replaces – largely down to the reduction in buttons.

What’s the spec like?

Our test car came in top-spec ST-3 trim line, with all the bells and whistles that you could possibly want. In this trim, you get 18-inch alloy wheels as standard, along with leather-trimmed Recaro sports seats that are heated in this instance, and you also get the all-important red brake callipers.

It’s crucial to mention that the Performance Pack can be added to ST-2 and ST-3 trim levels for £850. This adds the Quaife limited-slip differential, which is ideal for those after a slightly sharper turn in and more out-of-corner traction. It’s a reasonably priced option that really does add to the capability of the car.

The Fiesta ST is also available in either three- or five-door layouts.

What do the press say?

Top Gear said: ‘The fast Fiesta is more grown up in all the ways you’d want.’ Autocar called it ‘another class leader in waiting’.

What do we think?

The new Fiesta ST has more than lived up to the expectations people had of it.

Though it’s considerably different to the car it replaces, Ford has managed to recapture the spirit of the older model, making it just as exciting and involving to drive as the old ST. We’ll have to wait to test it out on UK soil to see how it gets on with our roads, but for now the leading impression of the latest hot Fiesta is a wholeheartedly positive one – this is one triumphant comeback.

CarDealerMag.co.uk | 41

Forecourt.

FIRST DRIVE

BMW M3 CS

Gearbox

The CS is only available with a seven-speed dual-clutch gearbox.

James Baggott is left in no doubt that the Munich manufacturer’s new and lighter Club Sport is a classic in the making

Suspension

All cars get adaptive dampers and upgraded springs for a sportier ride.

What is it?

Meet BMW’s latest lightweight hero – the M3 CS. After a strict greens-only diet from a motorsportinspired engineering division, the M3 has managed to shed 30kg of flab and gain some intoxicating driving characteristics in the process.

Buoyed by a sales surge that saw 80,000 M cars find homes in 2017, BMW is working hard to increase its performance division’s portfolio and this is the latest to hit showrooms. Limited in numbers to just 1,200 units worldwide and 100 of those in the UK, BMW says it’s already nearly sold out, so if you want one you need to be quick.

What’s new?

In an attempt to shave those all-important kilos, BMW fitted new forged alloy wheels and replaced heavy panels, such as the roof and bonnet, with carbon-fibre-reinforced plastic. The front seats have been thrown out in favour of new weight42 | CarDealerMag.co.uk

saving replacements, while even the centre console has been stripped back and lightened.

BMW fans might be wondering why the CS is missing an ‘L’ in its name – made famous most recently by the E46 M3 CSL. Well, according to BMW’s M boss, although the diet for the CS was extensive, it wasn’t quite enough to justify the ‘Lightweight’ tag that comes with a CSL nameplate.

But don’t let that put you off – this is still one very special machine indeed.

What’s under the bonnet?

BMW has worked its magic under the bonnet to extract more horses from the already-impressive 3.0-litre twin turbo unit. Power is up 10bhp to 460bhp while torque increases nine per cent over the 550Nm in an M3 Competition Package to 600Nm. That extra oomph and trim waistline means

the CS will hit 60mph in just 3.9 seconds – enough to furrow the brows of many a supercar owner. Engineers have even ditched the speed limiter, so German autobahns can be navigated at speeds of up to 173mph. And believe us, thanks to a Munich-based test drive, we can confirm the Germans weren’t joking. As if that were a thing…

Cautious drivers can expect to see returns of 33.2mpg, although it’s unlikely many CS buyers will be cautious types. In reality, you’ll be languishing in the teens if you use it as its creators intended.

What’s it like to drive?

On road or track, the CS is astonishing. Revving to a heady 7,600rpm, the engine is awash with power, accompanied by a noise that sends shivers down your spine like a first love.

The Michelin Pilot Sport Cup 2 tyres are super-sticky, and on a hot, dry track – like that

‘The automatic gearbox rockets through gears faster than an Aldi assistant firing a week’s shopping down the checkout.’

THE KNOWLEDGE Model as tested: BMW M3 CS Price: £86,425 Engine: 3.0-litre twin turbo Power: 460bhp Torque: 600Nm Max speed: 173mph 0-60mph: 3.9 seconds MPG: 33.2 Emissions (g/km): 198 TARGET BUYERS: Performance BMW fans who want something a little bit more unique.

Engine

The CS uses a 3.0-litre twinturbocharged straight-six engine.

THE RIVALS: Porsche Cayman GT4, Audi RS5, Mercedes C63S. KEY SELLING POINTS: 1. Incredible performance.

2. Spine-tingling exhaust note.

3. Thrilling driving dynamics.

Roof

The carbon-fibre roof saves 6kg over the standard car’s steel section.

which we were blessed to lay black lines across in Germany – serve only to compose the BMW like a ballerina balanced perfectly on her toes.

The way the CS sheds speed, thanks to huge carbon ceramic brakes, is a close match for a direct impact with a tree, while the seven-speed DCT automatic gearbox is a delight, rocketing through gears faster than an Aldi assistant firing a week’s shopping down the checkout.

In some driver settings (of which there are many) the steering does lack feel but it’s not awful, and we’d like the seats to be a little more comfortable and easier to adjust.

slung and aggressive, it’s lost none of the M3’s imposing road presence.

How does it look?

What’s the spec like?

A pretty carbon-fibre spoiler, wailing quad exhaust pipes, speed-bump-kissing front splitter and distinctive matt purple paintwork (one of five unique colours) help the CS stand out from the fast-lane-inhabiting 3 Series crowd. Low-

Adaptive LED headlights, electrically folding mirrors, navigation and parking assistance all come as standard, with the rear-view camera relegated to the options list. Why? It saves weight...

What’s it like inside?

Inside, an optional BMW M Performance Alcantara steering wheel with 12 o’clock marker is a must-buy. It’s simply wonderful to hold and adds to the CS’s drama. The usual BMW smattering of technology can be found too – including the much-improved new iDrive system with connected information services, such as traffic and weather updates, and an impressive Harman Kardon stereo.

DEAL CLINCHER: With just 1,200 units being made, it’s a future classic in the making.

What do the press say?

Car Magazine said: ‘The BMW M3 CS is a truly exciting car to drive, capable of thrilling its driver more convincingly than the regular M3’, while Autocar said: ‘The CS metes out ruthless performance with clinical control. It’s questionable value for money but a stellar drivers’ car, and a fitting finale for the F80 M3.’

What do we think?

BMW’s M division really is on a winning streak and the CS proves it. Just weeks after it unleashed the new M5 on the world we get another hit with this – a future classic in the making, if you can afford the near-£90k price tag.

With a raucous turn of speed, soundtrack to worry a hip hop chart topper and driving experience that few cars could even come close to delivering, the M3 CS is surely set to become yet another Munich legend.

CarDealerMag.co.uk | 43

Forecourt.

FIRST DRIVE

Aston Martin DB11 AMR The iconic brand is keen to stress that its more powerful grand tourer possesses the beating heart of a sportscar. Has it succeeded? Jack Evans finds out...

What is it?

Responding to an increase in rival offerings, Aston Martin has taken its DB11, boosted the output of that car’s V12 engine and produced the DB11 AMR. Power has been increased, handling sharpened and exhaust tuned to produce a car more in line with other grand tourers on the market.

What’s new?

There’s quite an extensive list of upgrades to the AMR over the regular DB11. The most significant is that power boost, now 30bhp more than the older car’s 600bhp. The standard DB11 was never lacking punch, but Aston Martin has responded to other, more powerful cars from rivals (we’re looking at you, Bentley) and thrown some extra horsepower into the AMR for good measure. Torque, however, remains the same at 700Nm. It has also recalibrated the eight-speed automatic transmission for faster shifts, while the chassis has been reworked to provide better cornering ability without reducing the car’s excellent comfort levels.

What’s under the bonnet?

Underneath the DB11 AMR’s long, flowing bonnet sits Aston’s glorious twin-turbocharged 5.2-litre V12 engine.

It’s a masterpiece of engineering and a reminder of just how good these large-capacity units can be in a world where downsizing seems to be reigning supreme. It can power the AMR to 60mph in 3.5 seconds, before pushing it to a top speed of 208mph. It’s a huge amount of performance and endows this DB11 with a frankly ridiculous turn of pace – particularly for a car of this size.

What’s it like to drive?

One of the main complaints about the old DB11 was that it felt just a little too supple in the bends and lacked the poise that we wanted from an Aston Martin. However, this criticism has been firmly rectified. The range of tweaks to the chassis now make the DB11 genuinely capable in the corners, with body roll expertly managed and the well-weighted steering adding to the overall experience.

Then there’s the sheer performance of the 44 | CarDealerMag.co.uk

THE KNOWLEDGE Model as tested: Aston Martin

DB11 AMR Price: £174,995 Engine: 5.2-litre V12 Power: 630bhp Torque: 700Nm Max speed: 208mph 0-60mph: 3.5 seconds MPG: 24.8 Emissions (g/km): 265 TARGET BUYERS: Those who want unparalleled performance in a comfortable package.

THE RIVALS: Bentley Continental GT, Ferrari 812, Mercedes S63 Coupe.

KEY SELLING POINTS: 1. Blistering performance.

2. Decent ride quality.

3. Characterful engine.

Engine

The AMR is powered by a twinturbocharged 5.2-litre V12 engine.

DEAL CLINCHER: The DB11 AMR now heads up the DB11 range and is a fitting range-topper.

thing. Press the throttle and there’s an almost undetectable pause while the turbos get going.

From there, power is available in spades. The first three gears are practically unusable without threatening your licence, while the whole thing is accompanied by the now-enhanced howl of a V12 – one of the best sounds in the business.

How does it look?

The regular DB11 was always an elegant thing to

look at and the AMR builds upon this. There are a few distinct touches that help distinguish it from the regular car, such as dark headlight surrounds, smoked tail lamps and a gloss black roof. They’re subtle touches, we’ll admit, but they certainly do add to the car’s overall look in a positive way.

If subtlety isn’t your thing, then Aston is offering the AMR in three versions of ‘Designer Specification’, as well as a limited-edition model that features a ‘Stirling Green’ and lime livery. It’s

‘The range of tweaks to the chassis now make the DB11 genuinely capable in the corners.’

Interview Paul Barritt, vehicle line director, Aston Martin What are the biggest standout changes on the AMR over the older DB11?

We’ve got an increase in power – from 600bhp to 630bhp – and I’m sure it’s not lost on many that it’s now got just a little more punch than the new Bentley Continental GT. The net result of that is that the top speed goes up to 208 which, amazingly, is also more than the Bentley. It’s a useful increase in performance, and it’s all been done through calibration. It’s fair to say that this engine isn’t quite at its peak yet – we’ll see this a little later on.

How have you improved the dynamics of the car? The previous DB11 V12 got a fair amount of criticism for not being quite sporty enough.

One of the first changes you’ll see are the forged wheels, but we’ve learnt from some of the revisions to the chassis we’ve made on DB11 V8 and DB11 Volante. The bushes are stiffer, though we’ve kept the spring balance the same, as we still want the car to ride well. There’s approximately 10 per cent more damping than before.

Exhaust

Lights

Smoked headlights help differentiate the AMR from the regular DB11.

certainly not one for shrinking violets, but if it is up your street, be quick – it’s limited to just 100 units worldwide.

What’s it like inside?

The AMR’s interior feels exceptionally well made, with a variety of high-quality materials contributing to a cabin that is just what you’d expect from a prestige GT car.

The seats are supportive yet comfortable, while the leather and alcantara sports steering wheel feels excellent in the hands, both in terms of feel and shape. The wheel is a component sometimes overlooked by manufacturers, but Aston has got it spot-on here.

The central layout of the car remains unchanged over the DB11, and as such stays just a little cluttered for our liking.

The Mercedes-sourced infotainment screen isn’t too bad but lacks the sharpness or definition

The exhaust has been redesigned to offer up a sportier noise.

that we’ve come to expect, while the general button layout could do with simplifying.

Though user-friendly enough, the overall feel of the central dashboard section is just a little behind the times.

What’s the spec like?

Prices for the DB11 AMR start at £174,995 and first deliveries are expected before long.

Though that’s an impressively high price tag, you’re getting an awful lot of engineering and prestige for the money. That V12 is worth the cost on its own, offering up one of the very best soundtracks around, as well as a colossal amount of performance.

Prices for the regular DB11 start at around £160,000, and while we can’t fault that car for the way it drives, we’d struggle to see why you wouldn’t just opt for this AMR version, given its relative closeness in price. It’s a more capable car,

What’s so special about the Signature Edition?

It’s got all the bells and whistles – and it’s limited to 100 units, too. It gets you a carbon roof, carbon mirror caps and other elements. The standard car gets the smoked lights and black grille, which is an easy way to distinguish this new DB11 from the older one. The interior gets carbon-fibre inserts, and we’ve got a new steering wheel that can be trimmed in leather or alcantara.

and the way it drives is reason enough to pick it.

What do the press say?

Autocar said: ‘The most driver-focused DB11 yet is a night-and-day improvement over Aston’s original V12’, while the Sunday Times said: ‘The lime green stripe might not be standard but an engaging drive is, and that’s a good enough reason to choose the Aston over most rivals.’

What do we think?

The DB11 always felt so close to the complete package – and thanks to the tweaks added to the AMR, it now is. The way this car steers, along with the way it can transform from savage performance car one minute to luxurious grand tourer the next, is downright remarkable. Aston has said that the AMR is now the fastest model in its current series production range, and going off this test it’s easily one of the best, too.

CarDealerMag.co.uk | 45

Forecourt.

FIRST DRIVE THE KNOWLEDGE

Volvo V60

Model: Volvo V60 D4 Inscription Price: £37,610 Engine: 2.0-litre, four-cylinder diesel Power: 188bhp Torque: 400Nm Max speed: 137mph 0-60mph: 7.7 seconds MPG: 67.2 Emissions (g/km): 122 TARGET BUYERS: Need a posh estate but don’t want to buy German? The V60 is for you.

THE RIVALS: BMW 3 Series Touring, Mercedes C-Class Estate, Audi A4 Avant.

KEY SELLING POINTS: 1. Sharp design.

2. Safety.

3. Packed with tech.

Tom Wiltshire heads to Barcelona to test the latest rung on the Volvo ladder – and finds the executive-sized estate is another feather in the Swedish brand’s cap What is it?

One of the last of the old line of Volvos to be replaced, the new V60 is more premium than ever, with bang up-to-date hybrid powertrains plus V90-inspired exterior and interior styling.

What’s new?

This is an all-new car and, as such, ditches the old platform for Volvo’s Scalable Product Architecture – the same chassis tech that underpins the XC90, XC60, S90 and V90.

Although the overall shape isn’t far off the old car, the detailing ensures you’ll never get the two mixed up. The interior is a rather more radical change, and apes its bigger siblings with a large portrait-mounted touchscreen.

New for the V60 is a lower-powered hybrid drivetrain, named the T6 Twin Engine.

What’s under the bonnet?

Our car was fitted with the more powerful of the two diesel engines coming to the UK. Badged D4, it has 188bhp which, mated to an eight-speed automatic and front-wheel drive, is good for a 0-60mph sprint of 7.7 seconds.

Speed demons will best be served by the smooth, powerful but thirsty T6 petrol, although from launch they’ll only be offered a lowerpowered T5 unit with 247bhp.

What’s it like to drive?

Volvo says the V60 is its most dynamic car yet, but anyone expecting a sporting drive on the same wavelength as the BMW 3 Series will be disappointed. The V60 is best enjoyed as a 46 | CarDealerMag.co.uk

relaxing cruiser, with a ride more comfortable than its competitors and excellent refinement regardless of engine.

Hustle it a bit and the car corners tidily, although the steering is a little remote and the brakes feel oddly interfering.

Adjustable driving modes do make a genuine difference to the way the car performs, with the Dynamic setting sharpening the steering and firming up the ride.

How does it look?

The muscular front end sees Volvo’s upright grille flanked by updated ‘Thor’s Hammer’ headlights, while round the back there’s a nod to the practical estates of old, with a more upright rear tailgate than its larger sibling contributing to greater boot space. There’s more glass area all round, and a bold accent line sits above the rear wheel arch.

What’s it like inside?

Unsurprisingly for a modern Volvo, the interior is a lovely place to be. Slide into the supremely comfortable driver’s seat (14-way adjustable, heated and ventilated on our test car) and you’re met by Volvo’s usual combination of digital dials and a portrait-orientated nine-inch touchscreen infotainment system.

The overall ambience is dependent on spec but what you get regardless is space – and lots of it.

The V60 is the longest car in its class and boasts better boot space and rear legroom than all of its rivals. Certain areas, such as the shuttered cupholder cover, don’t feel quite as solid as we’d like – and relegating functions to the

DEAL CLINCHER: Scandi style in a smaller package.

touchscreen can lead you to take your eyes off the road for long spells.

What’s the spec like?

Every V60 comes with a large suite of City Safety tech, but you’ll pay extra for radar-guided cruise control, blind spot assist or the semi-autonomous Pilot Assist. Our Inscription model came heavily laden, though, with everything from heated and cooled massaging front seats to a truly epic Bowers and Wilkins stereo.

Base Momentum trim is well equipped but it’s worth stepping up to the ‘Pro’ pack to gain active LED headlights and a head-up display. Expect a sporty R-Design trim to follow later in the year.

What do the press say?

Auto Express said: ‘The Volvo V60 is a spacious, stylish and well-made rival to the BMW 3 Series Touring, Audi A4 Avant and Mercedes C-Class Estate’, while WhatCar? similarly enthused: ‘Tidy handling, beautifully built, with a comfortable ride. And did we mention it’s blooming roomy, too? All round, the V60 is a great estate car.’

What do we think?

The V60 soundly thrashes its German rivals on space, interior ambience and looks. The case is less clear cut after driving, however, with the Volvo’s comfort-biased set-up bound to put some drivers off. It’s still a good car to drive though, and the allure of Scandinavian style and safety is hard to resist. Make no mistake, the V60 is seriously worth thinking twice about, even over rivals such as the Audi A4 Avant.

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CarDealerMag.co.uk | 47

CDX 2018.

ROAD TRIP TO CDX 2018

Motorway journey makes Before CDX starts, you’ve got to get there. We decided to try out two EVs from the south to Manchester, but the results were mixed…

Becca Chaplin My journey took a strange turn at first, as I had to go and pick up the car from Heathrow. It was a Friday, so the traffic was appalling. When I set off in our Tesla Model X, I wasn’t feeling particularly calm. Although it had all the bells and whistles, sitting up high in this electric SUV didn’t feel the same as the Model S I knew and loved. This wasn’t at all helped by the fact that I had to roll straight back into M25 traffic, before crawling up the M1 in rush-hour hell.

James Baggott Cards on the table – I didn’t think this would work. Electric cars such as the Nissan Leaf are brilliant if you’re going to use them as intended: in towns, on relevant journeys. This was not one of those occasions. On our trip to Manchester, colleague Ted Welford and I calculated we’d need two charging stops using Ecotricity’s pay-as-you-go charging stations. These would take 45 minutes a time. And so we set off from Gosport with Ted in awe of a car powered by electricity and me in awe at Ted’s Yorkshire accent. This was going to be a long journey...

Becca I could charge for 45 minutes too but that would get me to 80 per cent of my 298-mile range and I could stay plugged in as long as the station wasn’t busy. Starting the journey proper from Silverstone and preparing to get back on the M1, I smugly texted the boys about lunchtime to say I’d be making a quick stop at the services in Northampton to charge the batteries enough to get me to Manchester… with more to spare.

James Ted and I arrived at Chieveley services – our first charging stop – after just 50 miles. While I tucked into a cheese and ham sandwich and Ted had something northern (possibly coal), we waited for the Leaf to recharge. Using the Ecotricity app, we monitored the charging and eventually paid £6ish for the privilege of a top-up back to full. It took the full 45 minutes, but by that time I’d managed to drink a coffee and have two ‘rest’ breaks. Lovely stuff. Our next charging stop was planned for the services on the M6 Toll – a worryingly close-to48 | CarDealerMag.co.uk

empty 110 miles away. So we set off with a plan to use the air con sparingly.

Becca I, meanwhile, was happily cruising along with the air con on full, blasting my music and driving at a ‘spirited’ pace. Annoyingly, service stations don’t tell you if they have Tesla superchargers but the Tesla does tell you where the superchargers are – often close to real services but not an accessible distance on foot. In this case, my stop just off the M1 was actually at a Northampton Holiday Inn. My bottle of water only cost £1 here and I could sit in this sunny but eerily quiet car park in peace – apart from a few sceptical questions from an elderly couple. After 20 minutes I was charged to 160 miles – and it had cost me nothing.

James Unlike the Tesla, there’s no real way of knowing if someone is using the charging points you’ve planned to use on your route, which adds a certain level of stress to long-distance electric car journeys. Imagine if you pulled up at a petrol station and then had to wait 45 minutes for someone to fill up their car before you moved in and then waited a further 45 minutes to top up yours. Well, that’s exactly what can happen. With the miles to the M6 Toll slowly ticking down and the range of the Leaf dropping, my palms were getting clammy. I didn’t feel Ted’s to see if his were the same, but I did notice the further north we got, the happier he seemed to be. Strange.

Becca It seemed like things were getting a bit angrier in the Leaf. I’d spoken to the guys and we’d planned to meet just beyond the M6 Toll at Keele services. Trying to combine our trips for a convoy into Manchester was becoming more difficult.

I was desperate for a services with food at this point, having not eaten since breakfast and it was coming up to 4pm. And then I got a call from Team Leaf to say they were going to have to stop sooner because the car wouldn’t make it that far.

Everything seemed to be going wrong until I saw the big green Starbucks emblem come into view.

James Angry? Pah! We were cruising comfortably to our M6 Toll destination and things in the Leaf

The Leaf, right, sits next to a hybrid BMW

The Tesla recharges at the Holiday Inn were going well. Ted was saying stuff I couldn’t understand, I was politely nodding and we were both enjoying a really rather pleasant cruise.

We arrived at the services with around 15 miles to spare, found the Ecotricity charger, plugged in and settled in for another 45 minutes of wandering aimlessly around a service station.

Becca By this time, I had more than enough charge to get to Manchester and back to Keele comfortably.

I’d wandered into Starbucks, bought myself some food from Waitrose, sat in the car watching other Tesla Model Xs and Ss come and go, had another chat with an elderly couple and still there was no sign of the others. I was weighing up doing the only proper thing and leaving them behind, but I didn’t really know where I was going and I was too lazy to figure it out. I got on the phone to the Leaf’s plus one – Jon Reay in a Mercedes-Benz Vito van – only to find out the situation wasn’t getting any better on the M6 Toll…

James Ted and I returned to the Leaf having been informed by the Ecotricity app that our charging time was up. In we jumped and turned the Leaf

hard power point Ted Welford’s view UP UNTIL the M6 Toll all had been merry, with James taking the proverbial out of my accent (I’d take it to heart if he wasn’t from Gosport – Hampshire’s Benidorm) and being comfortable in the Leaf.

The world seemed to fall apart when we discovered the Leaf hadn’t charged fully – me pretending to be angry but quietly laughing at James’s teenage rage fit, and the chat resembling all the enjoyment of two people small-talking about the weather for 45 minutes. Not fun.

At Keele services, James indeed had a sit down – one that involved him skulking off before returning and shoving the Leaf’s keys in my face. ‘Ted, you can drive it.’ I happily obliged.

As the Tesla drove away, Jon Reay was left abandoned, with me waiting for the Leaf to finish charging. That’s right – another 45 minutes at a services...

Driving in convoy for the last stretch – only about 60 or so miles – was better, but it was hard to remain positive when I had the thought of another eight-hour journey back down in the Leaf a few days later.

Electric cars might be here, but we’re not ready for them when it comes to this type of driving.

Chieveley – the first stop of many for the Leaf on. But what was this? It was showing only 78 miles of range. The 45-minute charge hadn’t, as we’d expected, filled the Leaf but instead had taken it to only around half. This meant our two-stop strategy had been ruined and we were facing our third 45-minute recharge stop as part of a journey that should have only taken 4½ hours. To say I was a little cheesed off is putting it mildly. Even Ted seemed a bit miffed – but that could have been wind.

Becca It’s funny you should mention wind, because at this point it was like the air turned cold on this blisteringly hot day. Jon had made the smart move of getting away from the Leaf as soon as possible to keep me company, but there was soon the faint whine of an electric motor being driven as aggressively as is humanly possible. Once it was plugged back in, James decided the best course of action was to stop talking to us and sit down on his own. We hid in Starbucks.

James OK, that’s a fairly accurate representation of what happened. I‘m a huge fan of the Leaf – the way it drives, the technology and the fact it’s an electric

The Nissan Leaf at CDX in Manchester car is cool – but it’s not suitable for journeys such as this. The charging infrastructure on motorways isn’t good enough and a 45-minute stop must be enough to fully recharge the batteries. I’m all for frequent stops, in fact they’re positively encouraged (by my bladder), but two hours 15 minutes for a four-hour journey is too much.

What really got my goat was the fact we thought the M6 Toll charge would have fully replenished it, but the shock of it being only half full soured my mood. I feel for Ted who basically had to cope with a 37-year-old man’s temper tantrum.

Becca I continued to gloat about the virtues of the Model X, because I know exactly what would have happened if the roles had been reversed.

It was bad news for Ted though, as the lanky baby (James) had decided there was no way he was driving any further and I’d be leaving Keele with a pouting passenger. There’s no hiding from the fact that comparing a Model X to a Leaf is like comparing a big diesel SUV to a small petrol hatchback – of course one will go further than the other, especially when it costs almost four times the price. There are a lot of features to love, though, and there’s something great about knowing a charger is free, pulling up and just plugging in without having to press a button.

Coverage of CDX 2018 starts over the page CarDealerMag.co.uk | 49

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CDX 2018.

INTRODUCTION

Two amazing days of top opportunities

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PHOTOGRAPHY: JONNY FLEETWOOD, KIRSTEN FARQUHAR & ALASTAIR FARQUHAR

DX 2018 played host to a grand assortment of automotive industry suppliers, dealers, panels and workshops – all under one roof.

As our first foray to Manchester and a two-day event, focusing the conference and expo at the centre of this incredible city allowed for not only a fast-paced, metropolitan setting with great access, but also the possibility to relax and connect with others in the industry after hours.

We set it up, but it was those taking part who really highlighted the current key opportunities for car dealerships and simple ways to turn small mistakes into big profit with a few changes.

The CDX partners were the four pillars of the expo. GardX, iVendi, WMS Group and Perfect Placement created the biggest stands that CDX has ever seen and received huge acclaim for their creativity and top-notch advice on the day.

Whoever thought we’d see a restaurant pop up within the hall for the event?

There were some vital themes that kept occurring throughout our discussions on stage and in the expo hall. While consumers can’t seem to get enough when it comes to buying older metal, with many dealerships looking for ways to maximise on their used car sales, our industry is being challenged by incoming new technologies.

However, the key lesson of the event was to make the most of these new platforms and

by REBECCA CHAPLIN @believebecca technologies – embrace change and don’t be left behind. While buying a car online is becoming an easier feat and competing on the vast platform that is the internet is even more of a challenge, here are a few stats from the show that might inspire you to think differently. Maybe it’ll even confirm some of your suspicions.

According to What Car? research revealed at the show, only seven per cent of consumers would actually want to buy a car online and have absolutely no interaction with a dealer ever.

However, 68 per cent would consider buying a car online.

At the other end of the spectrum, Auto Trader’s Nick King revealed from its data that 52 per cent of people don’t consider interest rates when buying a car on finance, adding: ‘Not that many people really care about APR rates unless they are over 10 per cent.’

And when it comes to your spend online, around 85 per cent of the top results on Google will be paid for with probably one organic listing.

That said, by 2020 50 per cent of searches online will be done by voice. Would any of that make you change your focus in your business? Read on to find out more.

In association with

CarDealerMag.co.uk | 51

CDX 2018.

THE FUTURE OF THE AUTOMOTIVE INDUSTRY

We need clarity not confusion from government, says JLR boss James and Rebecca are joined by, from left, SMMT CEO Mike Hawes, Jeremy Hicks, Richard Jones and Lookers chief operating officer Nigel McMinn

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onfusion created by the government is stopping people buying cars, according to Jaguar Land Rover’s UK managing director Jeremy Hicks.

The uncertainty largely revolves around the issues of emissions and taxation, Hicks told the audience at CDX. Taking part in a discussion on the future of the automotive industry, he said: ‘There needs to be clarity. In the market, there is so much confusion now and it has been created by the government.

‘It has left consumers wondering whether it is even okay to buy a vehicle with an internal combustion engine any more. That has caused an untold amount of hold-off.’

Hicks explained that as a manufacturer JLR was heavily dependent on diesel, and added: ‘It’s in my interests to understand what’s going on.

‘Half of the consumers we asked didn’t even know what EU emissions standards are. A number of them think EU6 is a lower standard than EU1. And a third of consumers don’t know the difference in impact between diesel and

by DAVE BROWN @CarDealerDave

petrol engines from a CO2 point of view. And then you’ve got taxation policy. The government has an unclear policy, which is basically saying just don’t go out and buy a diesel vehicle.’

Hicks added: ‘From our point of view, we have been very public with the government. We are saying “Make it clear. Be really, really clear about what you mean.”

‘It doesn’t do any of us who are involved in the industry any good to have confusion. We are now on the road to zero – 2040 – when there will be no more internal combustion-engined cars.

‘That’s fine, but last year cars without internal combustion engines represented only two per cent of the market. We’ve got a long way to go to get to that position where we have no more internal combustion engines. If we could get some clarity back, that would provide a high degree of stimulation into the marketplace.’

Fellow panel member Richard Jones, MD of Black Horse, the UK’s leading provider of motor finance, said: ‘The best way to make progress on the government’s air quality agenda is firstly to make it not just about cars – cars are actually a minority contributor to emissions in the UK. ‘The second thing I’d do is get old cars off the road and provide a clear set of guidelines for consumers. You can go into the new ultra-low emission zone in London driving your four-and-ahalf-litre diesel-powered car as long as it’s Euro 6.

‘How many people would have thought you could take a four-litre diesel car into that zone and not get charged?’

Jones added: ‘With some of the facts out there we do have some real sanity, but no-one is grouping it together for consumers and saying look, for most of you, an electric vehicle is three or four buying cycles away.’ Consumers needed to be persuaded to ditch Euro 3 or Euro 4 cars, buy more modern vehicles, and be encouraged to understand the role they have to play in improving air quality in the UK, he said.

EXPANSION

Is this the year for used cars? It’s all about opportunity!

THOSE businesses taking advantage of used car retail models are reaping the benefits, according to the panel discussing the right time to expand.

Imperial Cars operations director Neil Smith said: ‘Used cars in the last nine to 12 months has seen a resurgence, and we’ve seen the 52 | CarDealerMag.co.uk

opportunity to expand and spread our reach across the UK. ‘We’re doing it in a slightly different way to dealers in our sector, and we’re taking on smaller sites rather than the large sites, which was our model two to three years ago.’

Cedar Specialist Cars owner Sean Cantillon added: ‘It’s about opportunity, rather than is it the right time. It’s about what exists out there.’

Martin Forbes, chief operating officer at Cox Automotive, speculated that this could be the year for used cars.

Watch all of the CDX Live Stage panels online at bit.ly/CDX18

The audience listens intently to the discussion

From left: John O’Hanlon, Natasha Patel, Paul Singleton and John Tordoff discuss the ramifications of the KPMG survey

THE FUTURE OF THE PHYSICAL CAR DEALERSHIP

Warning on what lies ahead for showrooms ‘frightening and damaging’ KPMG’s survey about the future of dealerships shocked Car Dealer Magazine readers earlier this year, but the boss of motor group Waylands Automotive called it ‘frightening’ and ‘damaging’.

Chief executive John O’Hanlon sat on our expert panel at CDX alongside KPMG associate director Natasha Patel, Ford director of dealer operations Paul Singleton and JCT600 chief executive John Tordoff.

‘I take KPMG’s point about trends, and those are inevitable. I think what was frightening, and potentially damaging, was the number of 50 per cent in six and a bit years.

With the level of investment that the trade has tied up, that’s damaging. That’s where

I take issue with it, and there’s a little bit of clickbait,’ said O’Hanlon. ‘I think there’s a lot of life in our model as it stands. There has been a disappearance of some motor groups, but it’s been an evolution not the revolution that the headlines suggested.’

Patel commented on some of the survey responses at the start of the session, explaining the message it was trying to convey. ‘In 1960, the S&P 500 companies had an average life of 60 years. Today, they have an average life of 12. There is a lot of change and it’s coming faster and faster – that’s the first point I’ll make.

‘My second point is that the auto industrial executives themselves felt that 30 to 50

per cent of dealerships would disappear.

You can pick a number in there, but I think the message we’re trying to convey here is that change is coming and we need to be prepared,’ she said.

Tordoff added: ‘I agree in principle with some of the findings of the survey, and I think we’re seeing that already. With networks, Vauxhall has done it very publicly, others are doing it a bit more under the radar, but it’s inevitable that we will see fewer dealerships but they will cover bigger territory and have more throughput. I don’t know who any of these executives are though, because all of the people I’ve spoken to say “Well, nobody asked me.”’

CarDealerMag.co.uk | 53

CDX 2018.

James Baggott chats with, from left, Paul Bradley, Catherine Faiers, Jimi Matthews and Max Stolton

WORKSHOP

Rethink needed over how searches made

THE chief executive of vehicle retailing solutions firm iVendi criticised car search engines for being different to how people search for other items online.

Currently, most car search engines use dropdown menus rather than key words as on Google, for example. This is where the human interprets the machine, in short.

James Tew said: ‘The search experience for cars is totally different to the way we buy other products. Can you imagine searching using dropdown menus on Google? No, it’s bizarre.’ There needed to be a more complex system where the machine interprets the human.

Tew used the Sinclair Group’s website as an example of a more modern type of searching. This means that consumers can type in ‘red Volkswagen Golf’ rather than having to search through menus to find it.

He also emphasised the need to embrace voice searches. ‘Over 50 per cent of all searches will be done by voice in 2020, according to ComScore.

‘2020 is not far away. How well is your website geared up for that?’

54 | CarDealerMag.co.uk

MAKING THE MOST OF YOUR DIGITAL SHOP WINDOW

Don’t treat everyone the same in your marketing approach

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he biggest mistake dealerships make with their internet marketing is that they treat everybody the same. That’s according to Google industry manager Max Stolton.

His fellow panellists were Jimi Matthews, business development director of automotive recruitment specialists Perfect Placement, Auto Trader audience and brand director Catherine Faiers and Group 1 Automotive recruitment manager Paul Bradley.

Expanding on his point, Stolton said dealership marketing messages weren’t necessarily changed whether a prospective purchaser was buying a new or used car, whether they were male or female, or whether they were a parent or not.

He said: ‘When we look at the data and the demographics that come through to our dealership clients, we may say that 22 per cent of your audience looks like a female parent who has recently had a child and is within a certain socioeconomic grouping.

‘We’d ask, ”How do you communicate to that person, as opposed to a single male who works in the City and wants to buy the fastest, flashiest car he can?” You need to adapt your messages and your strategy to really communicate to people in a

by DAVE BROWN @CarDealerDave

way that they want to be communicated to.’

Turning to the importance of a dealership’s presence online, Faiers said a dealer’s brand was ‘more important today than it has ever been’.

She added: ‘We know that 90 per cent of people touch different channels when they’re going through the car-buying journey and that consumers are more confused today than they ever have been.

‘Consistency of brand – both for Auto Trader but also for dealers – has never been more important. We think about that from two angles: the journey that consumers are going through and the value of the brand proposition for dealers. That’s about making sure that with the fragmentation of touchpoints online, you’re in as many of them as you possibly can be.’

Giving his take on best practice online, Matthews said: ‘The main thing dealers need to achieve is to work out the message that they’re trying to get across.

‘Your message online needs to be totally replicated by what you offer when someone does

WORKSHOP

Changing mobility needs can be capitalised on

WORKSHOP

Adapt or risk paying heaviest price of all

actually come into your business. The two have to marry up, otherwise you’re on a hiding to nothing.’

Asked to suggest one change a dealership could make to increase the strength of its brand online, Bradley replied: ‘Catalysing the social media space. There are far too many users who are in that space at the moment but don’t necessarily catalyse by focusing on the core values of their business and their culture.’

He said dealerships needed to provide clear online answers to the questions ‘Why buy from us?’ and ‘Why are we better than the competition?’ and realise that it’s not all about price. ‘People buy from people,’ he said. ‘It’s within the social media space that I would spend my money.’

‘We know that 90 per cent of people touch different channels when they’re going through the car-buying journey.’

Catherine Faiers

DEALERSHIPS across the UK are risking falling behind the competition by failing to adapt to changing buyers’ habits, said Click Dealer boss Gerry Moxham.

The managing director of the dealer management system firm said: ‘We don’t think dealers at this moment touch base often enough with customers. Think of the likes of Apple and Amazon, who have changed the way customers are buying and the customer journey they bring. It doesn’t matter which Apple product you buy, the customer journey is the same across the board and that’s something we feel dealers aren’t quite delivering.’

Moxham suggested that the constant access to online retailers was something dealers could learn from. He added: ‘Customers are also becoming used to incredibly fast delivery times.’ There were lessons to be learnt from the collapse of firms such as Woolworths, Blockbuster and Toys R Us, too. ‘These are all examples of big business failing to adapt to a modern customer’s needs and thus paying the heaviest price of all for it,’ he said.

WITH traditional car ownership at risk from on-demand schemes, dealerships should take advantage of this growing industry and consider launching their own systems.

That’s according to Mark Thomas of Ridecell, a company that provides IT systems for manufacturer schemes such as BMW’s Ridenow and the Daimler Group’s Ride2Go. He said: ‘There’s a real risk of on-demand systems virtually replacing car ownership.’

Thomas believes that by 2035, personal car ownership will have dropped to just 20 per cent of overall vehicles – with high-mileage users or those in more rural areas the only ones hanging on to personal vehicle ownership.

‘It’s like the change we’re seeing from physical media, such as CDs and DVDs, to streaming services like Netflix. There’s no need to actually own the asset any more.’

Thomas believes that the price of new mobility solutions will come down as technology, such as electric cars and autonomous vehicles, improves.

‘The crucial thing to remember is that the market is still in its infancy. Leverage your assets and capitalise on new business. New mobility is coming. The debate is when – not if.’

WORKSHOP

Ape disruptive firms to appeal to millennials CAR dealers must ape disruptive businesses such as Amazon, Netflix and Uber to appeal to the growing customer base of millennials, said Russell Danks, founder of business consultancy agency Future Factory London.

Appealing to millennial customers – those born in the mid-1980s to the late-1990s – requires customer-centric business ideas that major on convenience, time-saving and personalisation, he told CDX delegates. ‘These customers are the ones who pick up Google Maps on their smartphones and see themselves at the centre.

‘They’re the “Blue Dot” consumer – timepoor customers who want convenience, instant gratification and a service that’s personalised to them.’

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CDX 2018.

LIVE STAGE

Getting the customer to walk in from web From left: James Baggott on stage with Hasan Nergiz, Rachael Prasher and Brett Ward

LIVE STAGE

Dealers still needed in the online world

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mazon might not currently be the first choice for your next car purchase but for some it will make sense, said managing director of What Car? Rachael Prasher. ‘There are some customers for whom it is a commodity. We talk about it being the second largest purchase after your house, and yes, it is, but if you weigh it up as £150 a month, it is fairly easy to consider alongside your utility bills, mobile phone, etc.

‘For some people it is a repeat purchase, it’s the third or fourth car in their household, and for some, perish the thought, they’re just not that into cars.’ She added: ‘That doesn’t mean there’s no space for dealers, because there’s still this critically important part of fulfilment.’

Prasher sat on our panel ‘Do consumers want to buy cars online?’ alongside Hasan Nergiz, head of OEM and media agency strategy at Carwow, and Brett Ward, head of online retailing at iVendi.

All of our panellists agreed that selling cars online needed to be about giving customers what they want.

Nergiz said: ‘At Carwow we believe today it needs a blended sales channel, so an omnichannel strategy. If you look at different stages of the customer journey, they require different things.

‘Before purchase, already we can see customers want the full details before they interact with the dealer. This part is very digitalised. When it

by REBECCA CHAPLIN @believebecca comes to purchasing the car and after it’s been purchased, customers want to have a personal interaction and reassurance with the dealer.’

The What Car? boss echoed this message.

Having run a survey on its website, the results showed that actually only seven per cent of people wanted to avoid dealers altogether.

The research also showed that 68 per cent of users would consider buying a car online.

However, 37 per cent were definite that they wanted to meet the car dealer.

Ward added: ‘I can totally believe that. Our research shows that just from a finance point of view, 55 per cent are quite happy to take finance products online. Dealerships aren’t going to disappear. Retailers will be here for an awfully long time, because people have questions.

‘Buying vehicles online is not going to be as simple as adding a buy button to the end of the process. There’s the complexity of part-exchange, add-on sales and everything that goes with that purchase journey.

‘What we need to be able to do is more of that journey online.’

And as technology in cars becomes more complex, it will only add more need for a dealer to explain these functions, said Nergiz.

‘Dealerships aren’t going to disappear. Retailers will be here for an awfully long time, because people have questions.’

Brett Ward 56 | CarDealerMag.co.uk

From left: Rebecca Chaplin, Inchcape Mercedes-Benz general manager Rebecca Sides, Neil Smith, Google industry manager Max Stolton and Brett Ward GIVING the customer everything they need when buying a car online is vital, but how do they make the transition from your website into your dealership?

Brett Ward, head of online retailing at iVendi, said it was important to let consumers make their own journeys.

‘The great bit about that being online is you can see the decisions consumers are making, gain insight and make business decisions based on that.’

Neil Smith, operations director at car supermarket Imperial Cars, said putting all of the information at a customer’s fingertips empowered them to decide to buy a car.

‘The journey now, for us, is getting the customer to commit in their own head to purchasing that vehicle before coming on site. When they do, it’s down to us to let them buy that car.’

WORKSHOP

Going for the conversion CAMBRIA digital director Ian Godbold shared his tips for converting page views to car sales, saying: ‘We’re targeting consumers who are ready to buy the stock we have available now.

‘We track what they’re doing on our site and their journey so we can understand if there’s anywhere that they’re unable to complete.’

Motors.co.uk MD Phill Jones added: ‘Tell consumers what you want them to know, and when it comes to your calls to action, make them really specific.’

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CarDealerMag.co.uk | 57

CDX 2018.

Cheryl Croly chats with Rebecca Chaplin on the Live Stage at CDX

LIVE STAGE

Use the power of Twitter to welcome people

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witter is in the strongest place it has been since it was launched 12 years ago – and dealers can use it to help deliver great customer service and boost their businesses. That’s according to Cheryl Croly, client partner at the social media platform, who appeared on the Car Dealer Live Stage at CDX. Talking to Car Dealer Magazine editor Rebecca Chaplin, Croly said that the average person looked at their phone 110 times a day – and that with this in mind, dealers needed to use Twitter to help deliver great service and show that they are ‘always on’.

She cited Audi as an example of a firm that used social media to its advantage, sponsoring events such as the Baftas to help keep its brand in front of those all-important consumers.

Croly did sound a note of caution, however, advising users not to overdo it with hashtags, links, pictures and videos.

She emphasised that although you could show

LIVE STAGE

LinkedIn wins praise ROMANS International director Tom Jaconelli spoke about social media and whether it still had potential for selling cars.

‘Social media is probably our best form of marketing – it’s far greater than anything else we do marketing-wise,’ he said, adding that its LinkedIn presence got a massive response. ‘If you take one tip from today, get yourself on LinkedIn,’ he said.

58 | CarDealerMag.co.uk

by TRISTAN SHALE-HESTER @tristan_shale

your products off on Twitter, the feed moved very quickly and you needed to pay close attention to how you were using the site to stand out from the digital crowd and have your content seen by the right people.

Explaining how the platform had developed in recent years, she said: ‘Twitter has changed quite considerably. We’ve clearly established why people should have Twitter on their phone.

‘Everyone should have it as an app and that is essentially “what’s happening” – which incidentally are the two words you are presented with when you go to compose a tweet.

‘We have set out our stall to tell people that we are where you can find out what’s happening, whether it’s news, sport, entertainment or what’s going on in your local community.

‘With our feature “moments”, users can pull a number of tweets together and tell a story – it’s a nice way to gather a number of tweets together.

‘We also have “in case you missed it” so when you open the app in the morning you will have those accounts that you regularly engage with and interact with – they will be at the top.

‘We also have the explore tabs and the magnifying glass so that it’s much easier for people to search for content or key words. And then we also have the ”Live” element – we had a nine-hour stream of the royal wedding with Sky News, for instance, which was fantastic. Those big events really do play out well on Twitter.

‘All those changes that we’ve made have resulted in being in the strongest place it’s ever been in the 12 years since we’ve started. In the UK, we’re now at 28 million users.

‘In 2006 when we first launched, it was a service based on SMS – now it can offer so much more.’

WORKSHOP

Google and Facebook don’t have to be complicated ‘DO YOU want to be at the front of the Yellow Pages? It’s a really obvious answer to that question, but with Google and Facebook it can sometimes come across as really complicated,’ said Lee Manning, director of Armchair Marketing, in his workshop about simplifying the platforms.

‘You start thinking about algorithms and how do I rank first, but the reality is it’s as complicated as you want to make it.

‘There’s a simple approach and there’s a

complicated approach. Really, it’s all about common sense.’

The fact remains, explained Manning, that only one in 10 purchases takes place online – but there’s no denying that the more you do online, the more likely it is that people will come into your showroom.

The more listings you can get in front of people, the more people will visit your showroom, he stressed.

Watch all of the CDX Live Stage panels online at bit.ly/CDX18 BREAKOUT SESSION

Top dealers on social media are revealed

®

Getting all sociable at The Social Media 200 session

SOCIAL

THE

MEDIA

200 200

On May 21 at CDX 2018, Car Dealer Magazine revealed the top 200 most influential dealers on social media in an exclusive breakout session.

The businesses were invited to the Social Media 200 session based on preliminary results, before the final scores were worked out to reveal the firms with the most influence on social media platforms.

At the session, we handed out awards to the top scorers in three categories and unveiled the top 200 car dealers on social media exclusively first. This year we also had a further two awards – voted for by the Car Dealer Magazine team – for best engagement and best use of video on social media.

The scores measuring a business’s influence on social media were collated using Klout.

Read on to see who our five winners were and where you placed.

The winners Most Influential Dealer on Social Media Marshall Motor Group Most Influential Independent Dealer on Social Media Romans International

Philip Deacon from Marshall Motor Group

Most Influential Car Supermarket on Social Media Motorpoint Best Engagement on Social Media Lookers Group Lookers Group was awarded the prize for its Easter egg hunt, which it used across social media and was shared and commented on more than 100 times. https://twitter.com/LookersGroup/status/979012345023356928 Best Use of Video on Social Media Glyn Hopkin Group Glyn Hopkin Group produced the video below to celebrate its 25th year in business. It used it across platforms to show the variety of brands, its employees and values. https://www.facebook.com/glynhopkingroup/videos/1758876344168384/

Tom Jaconelli from Romans International

Becky Green, right, from Lookers Group

Social Media Top 50 1 Marshall Motor Group 2 Romans International 3 Motorpoint 4 Porsche Retail Group 5 Bristol Street Motors 6 Hendy Group 7 Amari 8 Stoneacre Motor Group 9 Redline Cars 10 Imperial Car Sales 11 JCT600 12 Swansway 13 Listers Group 14 CarShop 15 Johnsons Cars 16 Specialist Cars of Stoke 17 Carbase 18 Fords of Winsford 19 Sandicliffe 20 Arbury Motor Group 21 Harwoods 22 Saxton 4x4 23 Vantage Motor Group 24 Infiniti Retail Group 25 Evans Halshaw 26 RRG Group 27 Luscombe’s Leeds 28 Lookers 29 Snows Group 30 Renault Retail UK 31 T.C. Harrison Ford 32 John Clark 33 DM Keith Skoda/Seat 34 Jim Reid Vehicle Sales 35 Aston Martin Works 36 Stafford Audi 37 Sturgess Motor Group 38 Greenhous 39 Quirks Car Company 40 Stratstone 41 Ivan Hamill Cars 42 Stafford Land Rover 43 Glyn Hopkin Group 44 Essex Auto Group 45 Norton Way Group 46 H.R. Owen Ferrari 47 Philip Raby Porsche 48 H.R. Owen 49 Harvey Cooper Cars 50 Wrexham Volkswagen

To see the full list of The Social Media 200 go to bit.ly/SoMe200 CarDealerMag.co.uk | 59

CDX 2018.

LIVE STAGE

Go native with adverts, experts urge delegates From left: James Baggott, Amanda Massey, Rob Purfield, NewMotion key account manager Clive Southwell and Mark Thomas, vice-president of marketing & alliances at Ridecell

LIVE STAGE

Profit doesn’t have to be a dirty word

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he CDX profit clinic panel offered clear advice on how to make more money from each sale. Author and sales coach Rob Purfield, who was there on behalf of the WMS Group, told the audience: ‘Don’t make profit a dirty word. People don’t mind you making a profit if you add the requisite amount of value to them.’

It was a sentiment echoed by head of sales at GardX Amanda Massey, who said: ‘Dealer overheads are increasing. I think we have to be mindful that they have to pay wages, they have to keep the lights on, and a customer that purchases a vehicle wants to come back to that dealership in five years’ time and repeat that service.

‘If they’re not there, that’s going to be a very unhappy customer. I don’t think it’s a dirty word and I would echo that it needs to be a fair margin that’s right for the customer. A customer will pay slightly more, but they’ll only pay slightly more if they’re being delivered an excellent service.’

A way to communicate this value, and a theme that keeps occurring, is to engage with customers about these add-on value products before they reach the dealership.

‘For us, it’s about engaging with customers as early on in the customer journey as possible,’ said Massey. ‘We’re conscious that customers now do a lot of research online, and it’s about engaging with the customers at this point and having the products available. I imagine a lot of people still

by REBECCA CHAPLIN @believebecca don’t have these products on their website. What you want is for an informed customer to come into your showroom and be so informed that they ask about the product.’

Purfield shared some key points from his workshop too, explaining how dealers can introduce these products and their value to customers more naturally.

‘A lot of the focus is always put on the sale of the car, but when you start talking about add-ons, like GardX and warranty services from WMS, we talk about making it frictionless. Rather than adding cost to the sale, we need to show the value in adding these products. This makes the customer happy,’ he said.

‘I think when you start adding cost, people see it as a difficult sell and then sales people avoid it.

‘It’s actually about adding value to the sale though, not just taking more money from the customer.

‘When offering this to a customer, rather than just asking “Would you like the warranty?” I would say “Other people who bought a car like yours bought a warranty, would you like to take a look at one too?”

‘I call it “the Amazon method”, because that’s exactly what they do to you.’

‘I think when you start adding cost, people see it as a difficult sell and then sales people avoid it.’

Rob Purfield 60 | CarDealerMag.co.uk

From left: Car Throttle CEO Adnan Ebrahim, CarGurus vice-president of international business development Diego Sanson, Emily Shelley and Lee Williams ADVERTISING experts Lee Williams and Emily Shelley told delegates of the virtue of ‘sit back and enjoy’ advertising that consumers are far more susceptible to.

‘The car dealership has to provide traffic to its own website and its own business,’ said Williams, chief executive of Vertical Intelligence. ‘Native advertising [which matches editorial form and style] and video advertising on the web and via social mean you can now get your message across and can target by location, makes and model.’

Shelley, managing director of Sticky Content, added: ‘You need to also focus on the entire funnel. When you’re only looking at classifieds or stock and price, it can become a race to the bottom, and you’re not focusing on the value you can add as a dealership over and above anyone else.’

WORKSHOP

Monthly is king in finance THE car finance industry isn’t a bubble that’s set to burst – there isn’t even a bubble there, said Auto Trader insight director Nick King.

‘Monthly is king. We live in a world where everyone thinks about what things cost a month.

Phones, electric, gas, insurance premiums – for many, all are paid for each month.

‘For this reason, car finance is not a threat, it’s an opportunity for dealers – particularly ones dealing in used cars.’ He added that an Auto Trader survey showed 52 per cent of people didn’t consider interest rates when buying a car on finance.

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CarDealerMag.co.uk | 61

CDX 2018.

WORKSHOP

Take off that ‘boxing glove’ internal critic

‘SINCE we have high-performance cars, why can’t we have high-performing people?’ Paul McGee gave an inspiring talk at CDX on how people can improve the way they think.

McGee, who has pioneered the Shut Up, Move On (SUMO) philosophy, covered subjects such as positive thinking, general mind-sets and how to make a difference each and every day.

He asked the audience to re-evaluate the way they process different situations, and explained how an improved mentality could not only help the way they sell cars but assist in their personal lives, too.

Attendees were questioned whether their internal critic – or imaginary boxing glove – was making a negative impact on their decisions, with McGee professing that ‘stress makes you stupid’, and how avoiding it was crucial to making clear, well-informed decisions.

He also encouraged delegates to evaluate their business problems and ensure they weren’t making them into bigger issues than they needed to be.

62 | CarDealerMag.co.uk

LIVE STAGE

Experience? It’s not necessarily necessary for a successful career

T

here’s no reason why people with no automotive experience can’t make a success of a career in the motor trade.

That’s according to John Tordoff, chief executive of Yorkshire-based dealer group JCT600, who took part in an employment discussion.

He was on the Live Stage with Zara Ross, chief executive of the automotive charity Ben, and Jimi Matthews, business development director at Perfect Placement.

Asked what he would be looking for in a potential employee, Tordoff said: ‘A mixture of things really – it’s very much horses for courses.

‘Certain jobs in certain dealerships working with certain brands require a particular skill set but more and more now, we are recruiting from outside. More and more, we find that experienced people just bring bad habits with them.

‘Fresh people with no previous experience – but who are from a customer service background – have all the necessary skills in terms of dealing with customers, they just need the sales process training, or the training related to whatever role it is they’re going into.

‘If you take someone from quite a young age, you can ingrain in them the culture of your business. We’ve had a lot of success in taking

by DAVE BROWN @CarDealerDave

people on in trainee roles like that. We also have people in senior management roles now who have achieved that success despite having no motor trade experience whatsoever. Most important of all, they have got the right attitude.’

Asked about the best way to attract new employees, Ross said diversity was key – ‘where you have young, and older, more experienced people working together, and where you have opportunities for supporting people who are less experienced than others’.

There needed to be opportunities for training and learning as well as mentoring and supporting young people, she added. ‘People want to be respected,’ she said. ‘They want to be recognised and they want to be rewarded appropriately. The respect one is really, really important.’

Matthews said salary levels were important to attract candidates to dealerships but that for younger workers the pay packet might not be the be-all and end-all – linked to the fact that property ownership was just a ‘pipe dream’ for so many younger employees.

Watch all of the CDX Live Stage panels online at bit.ly/CDX18 From left: James Baggott, Jimi Matthews, Zara Ross and John Tordoff on the Live Stage

WORKSHOP

Mental health more important than Brexit

From left: Inchcape Mercedes-Benz general manager Rebecca Sides, Naomi Hahn, Auto Trader digital content editor Rachael Hogg, Cox Automotive HR director Alison Fisher and sales coach Dani Grieveson

WOMEN IN THE MOTOR INDUSTRY

Flexible work hours ought to be for everyone WOMEN in the Motor Industry was held at CDX for the fourth time and sparked as much lively discussion as ever about how people should be treated in the workplace.

However, the conclusion was that it isn’t just about women, it’s about having an understanding that everybody’s situation is different and working out how they can be allowed to do the best job possible.

Naomi Hahn, commercial product and strategy director at Auto Trader, said: ‘It is about facilitation and there are a number of things when you bring it back to women.

‘I don’t know if it’s scientifically validated, but I certainly see women demonstrating less confidence than men.

‘I also think there is a challenge with women who have families as well.

‘Not only do you think you’re not good enough for the job, you suddenly think you’re going to have to leave early for the school run or occasionally you’re not going to be able to be on the forecourt because your children might have chickenpox or maybe you’d like to go to sports day.

‘You’re already lacking confidence, and you know there are other things that are maybe going to make you look less attractive to employers, so I think there are certain protocols that businesses need to put in place to make it easier and accessible.’

She continued: ‘Actually, it’s not genderspecific – flexible working hours should be for everyone and anyone, and that’s really important. Consideration of mental health issues is really important as well.’

A STUDY has found that mental health keeps more CEOs from the motor industry up at night than does Brexit.

The survey by automotive industry charity Ben asked 300 chief executives, managing directors and middle management from the motor industry what kept them awake at night, with 38 per cent saying mental illness was the cause and just 28 per cent saying reasons to do with Brexit and the economy in general.

The findings were revealed in a workshop fronted by Matt Wigginton, head of partnership development at Ben. He said: ‘While everyone is starting to talk about mental health and are having more conversations about work on the subject, there is still a stigma surrounding it, and men still don’t like to talk about their mental health.’

He added: ‘There is a disconnect between what businesses see and what individuals feel surrounding mental health, especially when there is a greater blur than ever between work life and home life, although it has to be remembered that there is no blanket approach to solving the issue.’

Establishing a culture that invited people to talk about their feelings was to be encouraged.

WORKSHOP

Interviewing candidates ‘should be like first date’ INTERVIEWING candidates should be treated like a first date, according to one of the motor trade’s leading recruiters.

Jimi Matthews, director of business development for Perfect Placement, said: ‘An interview should be treated like a first date. Both parties should be out to impress each other and showcase the best of what each can offer.

‘However, too many treat them like speed dating – a quick fix that leaves plenty of holes left to pick by the end of it.’ He stressed the importance of leaving no uncertainties with understanding what each side can offer.

‘Make the interview a conversation, which will also allow you to get a better idea of a candidate’s personality,’ he added. [CD] CarDealerMag.co.uk | 63

WHY DID CLICK DEALER BUILD ?

TO ENABLE ALL DEALERS TO BECOME DISRUPTORS ONLINE TO ENSURE CLICK DEALER CUSTOMERS CAN BE THE FIRST RESPONDER TO THE 40% OF CAR BUYERS WHO HAVE ENQUIRED OUT OF HOURS TO IMPROVE FINANCE PENETRATION FOR ONLINE ENQUIRIES TO CONVERT OVER 90% OF ALL RESERVATION FEES INTO SALES TO SUPPORT THE CAR BUYERS WHO WANT TO TRANSACT ONLINE TO PROVIDE A LOW COST, LOW RISK SOLUTION TO SELLING VEHICLES ONLINE 24/7 TO PROVIDE A FRICTIONLESS JOURNEY THAT ALLOWS CAR BUYERS TO DO AS MUCH AS THEY DESIRE ONLINE

F o r m o re i n f o r m a t i o n o r a f re e n o o b l i g a t i o n demo call or email Click Dealer on:

t: 01782 454 354

e: cardealermag@clickdealer.co.uk w: www.clickdealer.co.uk

64 | CarDealerMag.co.uk

Focus on.

Click Dealer

Change is coming: Will your dealership disrupt or be disrupted?

CLICK DEALER

T: 01782 454354 E: cardealermag@clickdealer.co.uk

O

ver the past 15 years there have been two main events in the world of automotive retail, one of which was Auto Trader taking vehicle adverts online, which was ultimately a hugely positive disruption for dealers. The other was the global credit crunch, which limited the ability for consumers to gain approval for finance on vehicles.

Fortunately, during this second instance, finance companies rode to the rescue of dealerships, meaning that the market helped them to adapt to the problems and the uncharted conditions that they were faced with.

Another disruption is coming. The dawn of online retailing is upon us, and without the right strategy many dealerships could be susceptible to plummeting profits and catastrophic collapses.

When Auto Trader told dealerships that their stock would be advertised online in the future many scoffed, but those who heeded the advice early set themselves up with first-class seats on the gravy train. Now that dealers are faced with a similar conundrum related to doing business online it’s much more serious, because it won’t be as easy to catch up with your forward-thinking competitors this time.

ClickEngage enables dealerships to be more efficient and professional, with a seamless online journey that integrates into whichever DMS and web providers you work with, whether you’re an independent dealer or a franchise.

It records major portal leads and drops them straight into your dealer management system, taking away any GDPR headaches, as well as capturing consumer data and even sending out SMS and email messages with key vehicle details automatically, eliminating the age-old problem of losing leads because of delayed responses from busy dealers.

Since launch, dealers live on ClickEngage have seen a 58.6 per cent increase in inquiries, showing that consumers are keen to interact with dealerships online – not to mention the fact that 39.4 per cent of ClickEngage inquiries have been processed outside of normal business hours, illustrating an appetite for online automotive retailing 24/7, as is the case with other industries.

It also gives consumers the ability to choose how much or how little of the car-buying journey they take care of online, providing dealerships with the ability to support their customers in

At CDX, ClickEngage was the only end-to-end process available for demo with live clients to reference the way they want to interact. Wherever you are on your online journey, ClickEngage can support whatever is right for your business to survive and thrive during this market-changing transition.

Online vehicle retailing is still in its infancy.

Some consumers might only want to arrange their finance online; others might want to arrange their part-exchange or reserve a car.

As a low-risk, low-cost solution, ClickEngage offers the ultimate flexibility, whereby dealerships can modularise their approach to selling online, offering as much or as little of the journey as suits their model and strategic goals.

When you consider that 41.3 per cent of ClickEngage inquiries have included finance, 28.3 per cent have had a valid part-ex and 98.2 per cent of vehicle reservation fees through ClickEngage have resulted in a sale, it’s easy to see that consumers are comfortable with conducting the various facets of automotive retailing online.

If you only want to dip your toe into online retailing to begin with, Click Dealer can implement the data-capture element of ClickEngage, part-exchange, finance, add-ons, reservations, click and collect, click and deliver or even a selection of these modules.

It’s all part of creating a joined-up, frictionless journey and understanding how a customer has interacted with your business, whether that be online or in the showroom.

Online vehicle sales bring a tremendous opportunity for retention, especially given the improved data-capture facilities on offer, and this

is something that is more critical than ever postGDPR, enabling savvy dealerships to utilise the lucrative retention market.

A year from now, we believe that 50 per cent of interactions with your business are going to touch an online process. With ClickEngage, you can support how customers want to interact with you.

Without it, you’re turning them off to everything that you’re able to offer them, because they can’t do business the way that they’ve become accustomed to in different industries online.

ClickEngage V1 was designed to provide an end-to-end online journey to support the customer. But now, in V2, Click Dealer has focused on how to provide the processes that will help dealers through the transition into online retailing, detailing a clear vision of the customer’s journey in a consistent way.

Whilst 150-plus dealers might not seem a large number in relation to the UK dealership market, these are just the innovators and early adopters – and let’s not forget that at CDX, ClickEngage was the only end-to-end process available for demo with live clients to reference.

It’s fair to say that we’ve got online vehicle retailing figured out and we can help your dealership to succeed and reap the benefits of being a disruptor.

• Call 01782 454354 or email

cardealermag@clickdealer.co.uk to speak to the market leaders in online transactional processing for vehicles.

CarDealerMag.co.uk | 65

ON CUE .

PR

S

Experts in PR for your dealership

LIST

S

IA PEC

Effective and positive PR can drive traffic to your showroom and help you sell cars. It can position your business at the heart of your local area and community, creating a brand and raising awareness. It also builds trust and recognition, meaning buyers are more likely to consider your dealership over the local competition.

OnCue Comms is THE specialist in automotive dealer PR, working with leading car manufacturers, dealer groups and independent traders the length and breadth of the UK.

Romans International

Our press release on the sale of the UK’s first ‘used’ Bugatti Chiron generated global mainstream media coverage.

023 9252 2434 66 | CarDealerMag.co.uk

Nissan EV first

Our story about a customer taking delivery of the first new Nissan Leaf in Europe made headlines around the world.

takeashot@oncuecomms.com

Fiat 500 Gelato promotion Our ice-cold gelato PR stunt set social media ablaze on the hottest day of the year.

oncuecomms.com

Focus on.

Cox Automotive

Buy, price and sell with even greater confidence COX AUTOMOTIVE

W: coxautodata.com

T: 0333 444 0428

U

nderstanding the market you operate in is an essential factor in helping your dealership succeed.

At Cox Automotive Data Solutions we’ve created Vehicle Insight to help you with exactly this. It houses all the information you need in one easy-to-use platform, allowing you to make more informed buying, selling and pricing decisions that will adhere to the current demands of the marketplace.

It is the only product on the market that uses Manheim, Motors.co.uk and Cap HPI data to provide in-depth pricing and market information that allows dealers to assess vehicles individually or, if they prefer, their entire forecourt or even group in one go.

Manheim receives data on more than 500,000 vehicles every year and Motors.co.uk represents over 70 per cent of retail stock. When combined with Cap HPI data, it means this product will offer you the most up-to-date, accurate insights available on the market, easily accessed all in one place.

Having all of this information to hand means you no longer need to spend time visiting multiple sources to get all the data you require to complete a full vehicle appraisal, therefore allowing you to spend more time selling vehicles and increasing profits.

To support this, Vehicle Insight will assist you in understanding what factors are influencing supply and demand relating to your cars over the past 90 days, as well as letting you know how each of your vehicles compares nationally or to your dealership’s local area. If you operate in a specific region, this tool allows you to set an exact geographic area, which you can benchmark your

‘Vehicle Insight will help you and your team work smarter, not harder, to improve the efficiency of your dealership.’

current or future stock against – ensuring you are appealing to your target audience and letting you buy, price and sell vehicles with more confidence.

Not only has this platform been designed to encompass all the information you need, it is also available in a format that you will easily be able to digest and interpret. You can utilise the .xls spreadsheet or you can make the most of our tool compatible with a number of smart devices to use while on the go.

This mobility enables you to benefit from the information no matter where you are. Use it while you are at an auction to price-check vehicles and assess the market, or even analyse your stock

from the forecourt before leaving for auction to get an insight into trade prices and the retail market you will be entering into.

Vehicle Insight will help you and your team work smarter, not harder, to improve the efficiency of your dealership.

If you would like to find out more about all of the benefits this intelligent platform carries and how it will help you maximise your profits, get in touch with a member of our expert team.

• Visit www.coxautodata.com or call us on

0333 444 0428 to speak to one of our specialists today.

CarDealerMag.co.uk | 67

Focus on.

The Lead Agency

GDPR is here – and The Lead THE LEAD AGENCY

W: theleadagency.com T: 0151 221 9889

H

elping you extend your reach and increase sales have been the twin aims of The Lead Agency since its formation in 2002 – and as we enter the GDPR era, the company has compiled some top tips to help you survive and thrive under the new regime.

The Lead Agency believes that complex and confusing buying processes cause frustration for consumers and make it difficult for car manufacturers to find and acquire new customers. It works hard to remove that frustration and create quality opportunities to sell more vehicles. The firm currently works with the majority of car manufacturers – more than any other new car lead provider.

Its approach focuses on adding genuine value to clients’ organisations through quality new customer leads. So what advice does The Lead Agency have for you in connection with GDPR? Firstly, be responsible If you were a good company on May 24 you’ll still be a good company now. In other words, if you were compliant with the previous data protection laws, the transition to GDPR should have been far smoother than if you had started from scratch.

Be accountable One of the biggest changes from the 1998 Data Protection Act to GDPR is accountability – a company’s ability to demonstrate its compliance.

Review your current processes, procedures and policies so they can be benchmarked against the requirements of GDPR. This will help you to identify where small improvements are needed, as well as bigger gaps that require more time and attention.

Focus on trust Make sure third-party companies that process data on your behalf are compliant. Ensure all written contracts include your instructions and expectations for them to provide a fully compliant service.

The accountability still sits with your

company, but ensuring your partners meet your requirements will provide peace of mind.

Make a record of the data-processing activities that your business is responsible for Examples include the purposes of processing, a description of the categories of the individuals,

categories of personal data, recipients of personal data, retention schedules and the security measures that are in place.

Update your policies Check that privacy notices are clear, concise, transparent and unambiguous. Companies will be expected to provide a lot more information to customers, so the best way to tackle this is by taking a layered approach.

Stay safe GDPR enhances the need for a safe, secure and thorough CRM system, which will benefit all

68 | CarDealerMag.co.uk

Agency can help you

‘The Lead Agency team are a trusted partner to our business.’

Jess Douce, marketing manager for Jaguar Land Rover’s UK new car sales team

stakeholders. This allows customers to be able to further rely on companies to regard their personal data as being of extreme importance and treat it with great care. GDPR also encourages companies to further improve their cybersecurity.

Jaguar Land Rover and Hyundai are among the many car manufacturers benefiting from The Lead Agency’s GDPR-compliant leads.

Jess Douce, marketing manager for Jaguar Land Rover’s UK new car sales team, said: ‘The Lead Agency team are a trusted partner to our business. They’re not only great to work with but they believe in doing things the right way. They

provide the highest-quality GDPR-compliant client portal that I have used, which helps us to send more leads to our retailers.’

Meanwhile, Danielle Hollis, Hyundai Motor UK’s senior manager for CRM and insight, said: ‘The Lead Agency team are a long-serving and trusted partner of Hyundai.

‘They provide the highest-quality GDPRcompliant inquiries at scale, which means we sell more new cars and achieve our targets.’

Tom White, managing director for automotive at The Lead Agency, commented: ‘We believe that the best way to help our clients is by connecting

them with consumers who we know are inmarket and have a genuine interest in the cars that they sell.

‘That clients such as Hyundai and JLR are willing to endorse our high-quality, GDPRcompliant technology and leads is a great testament to the role we have played in helping them grow over a number of years.

‘It also demonstrates confidence in the auditing process we’ve been through, and the procedures we have in place to ensure our service is fully compliant.

‘Through requests for test drives, brochures and quotes or being kept informed of upcoming launches, all of our automotive clients are able to make valuable connections that help them to convert at an exceptionally high rate.’

White said that many businesses had tended to view GDPR as a problem. He continued: ‘Whilst it is clearly a huge business change and challenge for the industry, it is also an opportunity for brands to strengthen trust with consumers, focus on the relevant audience, become more efficient with sales activity and enhance their reputation.’

He added: ‘Inevitably, prospect databases will be depleted, but we can help rebuild with GDPR-compliant in-market leads that have been rigorously qualified by our in-house team.’

The Lead Agency’s compliance manager, Kathy Fleming, who has led the company’s GDPR programme, said: ‘Having built our reputation on high-quality in-market leads, the transition to GDPR is one we’ve been ready for. Our clients trust us to provide leads that are compliant with the new GDPR laws. Combined with being FCAauthorised, this means they can build sales with complete peace of mind.’

CarDealerMag.co.uk | 69

Focus on.

What Car ?

Buyers shying away from WHAT CAR?

W

W: haymarket.com/brands/what-car

hat Car? is the UK’s first choice for in-market car buyers, with more than two million visits to whatcar.com each month. The team has been analysing search patterns on its website once again, revealing some interesting figures about buying trends.

With some great new products being released to the market, it’s resulted in a surge in searches.

The change in MOT regulation has also seen more people heading to whatcar.com for answers.

Looking at this month’s cross-shopping data, which focuses on two popular electric cars, shows a lack of availability in the market of electric cars but also that buyers aren’t committed to an EV when seeking one out.

Other data has shown that mid-April to June usually sees improving new car sales following the dip after the March peak, and this pattern is repeating despite some market fragility.

However, experts are seeing more consumer confidence, but with it an expectation of high discounts. The challenge for dealers is to improve profitability by reducing incentives without losing sales. What Car?’s latest Target Price data reveals evidence of discount stability if not a reduction, with the average rate over the past two months largely unchanged at 8.2 per cent or £2,583 per car. This stability and signs of a sales upturn may see dealers not only enjoying increased sales but also improved profitability.

The market continues to be strongly supported by manufacturers, with an average PCP deposit contribution of £1,415 per car and an APR of 4.4 per cent, but they too are lowering incentives.

Deposit contributions remain high, but the percentage of models available on a zero interest PCP has dipped from 10.3 per cent to 8.4 per cent, and those on sub-five per cent APRs have fallen from 66 per cent to 50 per cent.

Collectively, this evidence suggests a more stable market than of late, if less robust than it was two years ago.

Finally, those looking for savings will find that MPVs are currently the most discounted cars, and despite reaching an 11.9 per cent peak three months ago, savings are now more than 16 per cent above market average.

70 | CarDealerMag.co.uk

Cross-shopping on whatcar.com Nissan Leaf Alternatives looked at by potential buyers Model % VW Golf

4.5

Renault Zoe

3.1

Hyundai Ioniq

2.8

Skoda Karoq

2.2

BMW i3

2.2

Volvo XC40

2.1

Seat Arona

1.7

Nissan Qashqai

1.6

Seat Ateca

1.6

VW T-Roc

1.6

Audi A3

1.4

VW Passat

1.4

Seat Ibiza

1.3

VW Up

1.3

Audi Q2

1.1

This surprisingly disparate array of Leaf alternatives underlines the limited choice of EVs, which is why there are many models here offering only internal combustion engines. The most considered alternative to the Nissan is the VW Golf, which is available as a petrol, diesel, plug-in hybrid and pure electric model. The electric-only Renault Zoe is the Leaf’s most obvious competitor and is indeed the second most-shortlisted rival.

Cross-shopping on whatcar.com Renault Zoe Alternatives looked at by potential buyers Model % Nissan Leaf

8.9

VW Golf

6.4

Hyundai Ioniq

3.7

BMW i3

3.7

VW Up

2.5

Seat Ibiza

2.1

Kia Soul

1.7

Skoda Karoq

1.6

Seat Arona

1.6

Skoda Fabia

1.6

Seat Ateca

1.5

Tesla Model S

1.5

Volvo XC40

1.5

Ford Fiesta

1.4

Audi A3

1.3

Curiously, the electric Renault Zoe attracts a more predictable array of alternatives to buyers’ shortlists.

The Nissan Leaf is the mostconsidered alternative, followed by the VW Golf (for which there is a full EV option), the fully electrified Hyundai Ioniq, BMW i3 EV and VW Up, which has a full EV option.

electric vehicles New Car Buying Cars generating most leads from car buyers at whatcar.com 1 Seat Ibiza

Most popular new car lease searches by brand on whatcar.com 1 Audi 2 VW 3 BMW 4 Volvo

2 Seat Arona 3 Volvo XC40 4 Seat Ateca 5 Skoda Karoq

10 Nissan Leaf

5 Land Rover 6 Mercedes-Benz 7 Nissan 8 Kia 9 Ford 10 Jaguar

Lively activity among What Car?’s New Car Buying Marketplace saw movement in the cars generating the most leads during March. The new Nissan Leaf topped the table in February but has been displaced by the Seat Ibiza. The Leaf – now at 10 – is the only pure electric vehicle in this table, suggesting that there’s some way to go before electric models regularly appear on serious buyers’ shopping lists. Hatchbacks get more of a look-in than they do in the most searched-for models, there being four in this top 10, with Seat’s new Ibiza at the top.

There are only three mainstream manufacturers in this list – Nissan, Kia and Ford – Vauxhall notable by its absence. The rest of the table is made up of premium makers whose residual value performances tend to generate more competitive monthly lease premiums.

6 VW T-Roc 7 Ford Fiesta 8 Volvo XC40 diesel 9 VW Golf

Top 20 most popular used car reviews on whatcar.com 1 VW Polo 2 Nissan Qashqai 3 Ford Fiesta A quartet of hardy perennials from VW, Nissan, Ford and BMW top this list, while the advance of Seat and Skoda is evident in the appearance of the Ibiza and Octavia in the top 10, and the Fabia at 18th.

This is one of the few charts in this report not dominated

by SUVs, which account for eight models here. The rest are hatchbacks, apart from the lone saloon represented by the BMW 5 Series. The most sought-after used brand is Volkswagen, with three of its models appearing here, followed by Ford, Vauxhall, Skoda, Audi, Volvo and Peugeot, each with two.

4 BMW 5 Series 5 Volvo XC60 6 Vauxhall Insignia 7 Land Rover Freelander 8 Seat Ibiza 9 Skoda Octavia 10 Volvo V50 11 Peugeot 3008 12 Audi A3 13 Ford Focus 14 VW Golf 15 Peugeot 207 16 VW Touareg 17 Audi Q3 18 Skoda Fabia 19 Vauxhall Mokka 20 Kia Sportage

Top 10 most popular new car lease searches by model on whatcar.com 1 VW Tiguan 2 Kia Sportage 3 VW Golf 4 Volvo XC60 5 Audi A4 6 Nissan Qashqai 7 Mercedes GLA 8 Range Rover Evoque 9 Nissan Leaf 10 Volvo XC40 The creeping rise of electric cars is evident here, with the freshly updated Nissan Leaf entering at number nine. It’s one of the few non-SUV models, along with the VW Golf and Audi A4. As last month, the VW Tiguan dominates, with the VW Group accounting for three entries and Volvo two.

CarDealerMag.co.uk | 71

HELPING DEALERS SELL MORE CARS.

At Oodle Car Finance we know there’s a better way to help dealers sell more cars.

We do this by helping our partners get fast decisions, at the best possible rates for their customers, while paying out competitive commission.

We also help our dealers with their digital marketing to attract more customers by investing in innovative technologies to drive car buying customers direct to dealer websites. We believe in working with fewer dealers to form high quality long-term partnerships to give our dealers a competitive advantage in their local area, driving more leads, more sales and faster growth.

Contact us to talk to one of our Oodle Dealer advisers about how we can work together, or to find out how we can help you generate more sales leads for your dealership on: Tel: 01865 475 029 Email: dealerenquiries@oodlefinance.com Terms and Conditions apply. Becoming an Oodle dealer partner is subject to successful completion of Oodle’s dealer partner onboarding process. Oodle Car Finance is the trading name of Oodle Financial Services Limited which is a company registered in England and Wales with registered number 07277272. Our registered office is One Callaghan Square, Cardiff CF10 5BT. We are authorised and regulated by the Financial Conduct Authority under Reference Number 702459.

72 | CarDealerMag.co.uk

Focus on.

Oodle Car Finance

Car dealers urged to follow Amazon’s 1-Click lead OODLE CAR FINANCE

F

rom its seamless search functionality, use of video content, one-click buying processes and appetite to provide a positive customer experience before, during and after sales, the retail experience created by Amazon is a model by which all other retailers are now being measured.

New figures show that the online marketplace is now the fifth largest retailer in the UK, accounting for £4 in every £100 spent in the sector last year. According to data from the analytics firm GlobalData plc, Amazon’s online sales growth outperformed all other online sales in the UK in 2017, growing by 22.5 per cent compared with the UK average of 8.4 per cent.

It is estimated that Amazon accounted for 33.5 per cent of all online spend in 2017, rising from 29.6 per cent in 2016.

Were it to enter the UK car market, it would pose a huge threat to many car dealers, but ultimately its model is one to imitate not fear.

Inspired by the Amazon 1-Click model, the Oxford-based fintech Oodle Car Finance has been developing the technology to integrate search and finance into one seamless digital experience. Its proprietary technology is gradually bringing to the industry a level of customer convenience and retail savviness rarely seen before.

Jonny Clayton, CEO of Oodle Car Finance, pictured, believes the only way to create an efficient and modern used car market is to use digital technology to bring customers and dealers closer together. Doing so creates a modern retail environment that most people are accustomed to experiencing elsewhere.

Clayton said: ‘In a fragmented industry where car buyers are often looking for finance and then going off to source their car online, or vice versa, the current system is not always conducive to efficient sales.

‘With car search and finance seamlessly and digitally matched, our systems generate quality and cost-effective traffic and improved sales

W: oodlecarfinance.com/dealers/ funnels for dealers. For the customer, it allows us to take them on a full journey from automated loan application to car purchase online – taking customers out of the market and delivering pre-approved, onboarded customers to the dealers.

‘In the same way that Amazon has created a seamless, fully integrated retail experience online, for the used car industry to follow suit finance needs to be innovatively integrated into dealership sales operations.

‘They need a modern, tech-informed lender that can boost car finance applications and approvals and help them facilitate the best possible experience for their customers, linking directly into dealers’ websites and their online advertising.

‘In our day-to-day dealings with some of the UK’s best car dealers, the quality of the customer experience is completely different from a few years ago and you can sense there is a genuine appetite to improve the industry.

‘There is still work to be done, but if they can find innovative partners to improve their services and get closer to customers, there is no reason why they can’t retain their autonomy, provide a slick online buying experience, keep their commission and thrive during this digital shift.’

Oodle Car Finance’s mission is to revolutionise the used car market by providing ease of sale, using best-in-class technology to provide slick, automated proposal processing.

Oodle Car Finance offers multiple products for differing credit profiles and is committed to matching customers to the best products, to give a wide cross-section of customers the finance they can afford.

Oodle Car Finance is the trading name of Oodle Financial Services Limited, which is a company registered in England and Wales with registered number 07277272. Our registered office is One Callaghan Square, Cardiff, CF10 5BT. We are authorised and regulated by the Financial Conduct Authority under Reference Number 702459. l

‘With car search and finance seamlessly and digitally matched, our systems generate quality and cost-effective traffic and improved sales funnels.’

Jonny Clayton, CEO of Oodle Car Finance CarDealerMag.co.uk | 73

Websites from Dragon2000

Dealer Management System of the Year

We have the best van website in the country

Dragon2000 go the extra mile to make sure we’re happy

Van Sales UK

Tallis of Bath

“The website team have been fantastic throughout the design and implementation process. The results speak for themselves. We have the best van website in the country!”

“We’ve recently moved over to a Dragon2000 website and have been very impressed (but not surprised) by their professionalism and willingness to go the extra mile to make sure we’re happy with the end product.”

Very impressed

I can’t fault them

Absolutely thrilled

Dinan Garage

Flemings Specialist Cars

Manchester Automotive

“Had a website built by Dragon and very impressed. Excellent service, always happy to help and nothing is too much of a problem. Very helpful!

Would definitely recommend!”

“They delivered on the initial design requirement and since then whenever I’ve had an issue, a question or have required assistance they have been superb. Without a question I would recommend them.”

“Absolutely thrilled with the attention to detail and speed and efficiency of this company.

Website up and running in no time at all.”

DMS

Websites Dragon2000

74 | CarDealerMag.co.uk

Apps

Dragon2000 E: sales@dragon2000.co.uk

W: dragon2000.co.uk

T: 01327 222 333

Focus on.

Dragon2000

Dealers benefit from new integrations from Dragon2000 DRAGON2000

W: dragon2000.co.uk T: 01327 222333

D

ealers can get bogged down with maintaining many separate systems and rekeying data, and with the risk of lost and inaccurate information becoming greater with every duplicate entry, the benefits of a single point of data entry are vast – including time and cost savings, as well as making GDPR compliance less complicated.

Dragon2000 already offers a comprehensive Sage50 Accounting integration and individually designed dealer websites, which integrate fully with its multi-award-winning dealer management system DragonDMS, along with the ability to post stock to Twitter and have an integrated Facebook page stock tab.

The innovative mobile app APPraise seamlessly integrates with DragonDMS and features sales presentation videos, the ability to do a digital appraisal of part-exchanges and, for the workshop, customisable vehicle health checks and VHC videos.

To make life even easier for dealers, Dragon2000 has recently introduced two further new major integrations with card payment provider Paymentsense and Auto Trader.

Paymentsense Easy to install and set up, the Paymentsense card terminals seamlessly integrate with DragonDMS and Sage, saving time and eliminating rekeying errors. Multiple terminals can be used in different areas of the business, such as the sales department, service desk and parts counter.

Payments can be taken against any outstanding vehicle, service or parts invoice within DragonDMS for selected transactions or all outstanding amounts. The card terminal will then activate, while on-screen prompts appear within the DMS, showing the transaction’s progress.

Payments are recorded within DragonDMS against the relevant invoices, which will also integrate into Sage, making the whole transaction quick and easy with no double entry required.

Auto Trader Following Auto Trader’s GDPR changes, dealers will no longer receive customers’ personal information for leads, such as email

or phone number, via email. While this information will still be available through the Dealer Portal, thanks to Dragon2000’s new integration those vital details will now be appearing directly within DragonDMS. The leads go straight into the CRM section of DragonDMS with the inquiry date, name, contact information, a link to the vehicle they’re interested in and any part-exchange details. Dealers can also then run HPI checks and Cap valuations against the trade-in vehicle.

Mark Kelland, commercial manager of Dragon2000, said: ‘The Paymentsense integration will save dealers time rekeying information and they will also benefit from introductory offers and favourable rates when switching from another provider.

‘Thanks to our integration with Auto Trader, dealers will no longer have to spend time copying details across from emails or the Dealer Portal, minimising the chance of a sales executive failing to chase up a lead.

‘In addition to feeding dealers’ adverts to Auto Trader, which we have done for many years, DragonDMS now takes care of the full end-toend process by receiving incoming leads that the advertising generates, so dealers can progress inquiries through to sale and monitor their conversions from Auto Trader more accurately. It couldn’t be simpler.’

• For further information, please call 01327 222333 or visit www.dragon2000.co.uk

‘The Paymentsense integration will save dealers time rekeying information and they will also benefit from introductory offers and favourable rates when switching from another provider.’

Mark Kelland, commercial manager of Dragon2000

CarDealerMag.co.uk | 75

76 | CarDealerMag.co.uk

Focus on.

Startline

New ‘flexible prime’ PCP already a big hit at franchise dealerships STARTLINE

W: startlinemotorfinance.com E: enquiries@startlinemotorfinance.com

A

newly launched PCP product from Startline Motor Finance is already seeing 50 per cent penetration at some franchise dealerships.

It is designed to be offered by dealers alongside PCPs from traditional prime lenders and suggested as an alternative source of funding when applicants are declined. However, it offers APRs and general terms similar to those offered by prime lenders rather than resembling a sub-prime product.

CEO Paul Burgess said: ‘At some of our most important franchise dealer customers, half the business that we have written in the last month is for the PCP which, to us, shows that the product has immediately found quite an important niche in the market. In many cases, we are helping dealers to sell cars, and customers to buy them, in a way that would be otherwise unavailable.

‘Certainly, interest is high from a wide range of franchise and independent dealers.

They recognise that it is an innovation that could potentially open up PCP to a wider market that has previously been ignored by the motor finance sector.’

Paul explained that the PCP product was designed for customers who have been rejected by prime lenders even though they are good credit risks, because they do not meet requirements based on their work patterns or other socio-economic factors.

‘We live in a changing world, and just because someone rents their home or works on a series of temporary contracts should not exclude them from a fair approach to motor finance. Around 20 per cent of used car buyers fall into this category.

‘Our underwriting takes a closer look at the circumstances of the person making the finance application, often entering into a dialogue with them and with the dealer.

‘The thinking is that if we can gain an understanding of that person’s overall financial position, then we can work to arrive at a solution

Chief operating officer Gregor Sutherland, left, and chief executive officer Paul Burgess that meets their needs. It’s a more holistic process. Crucially, we provide a third option for dealers who currently only offer prime and sub-prime lenders. Too many customers who do not meet prime criteria are passed straight to sub-prime lenders when they remain good credit risks, we believe. Flexible prime has very much been created for these people and their particular circumstances.’

A whole range of flexible prime products The new PCP product forms part of a range of products that include the core Startline hire purchase product and Finishline, which was launched last year. The latter is designed to provide a further hire purchase option, being targeted at used car buyers who narrowly fail to meet the company’s primary lending criteria but

‘Too many customers who do not meet prime criteria are passed straight to subprime lenders when they remain good credit risks.’

Paul Burgess

are still good-quality applicants. Paul said: ‘We have now built a flexible product range that is unlike anything else in the motor finance sector and which meets a very definite need in the market – especially, we believe, as the economy heads into potentially choppier financial waters during late 2018.’

About Startline Motor Finance Headquartered in Glasgow, Startline Motor Finance is run by a highly experienced motor finance team and has a sales presence throughout the whole of the UK. More details at startlinemotorfinance.com or email enquiries@startlinemotorfinance.com CarDealerMag.co.uk | 77

Data File.

Ask Lawgistics .com

Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £49.99 a year to get advice like this when you need it

Will dumped car court action succeed?

Q

A customer purchased a 13-year-old Volvo XC90 from us, which suffered transmission failure after five months and 6,000 miles. They requested a full refund.

We declined but did offer to have a look at the car, following which we gave some options for a repair, towards which we were prepared to contribute by way of a goodwill gesture. We advised the customer she would need to pay towards the repair.

The customer flatly refused and had the vehicle delivered to us, although it was in fact dumped on the street outside. We did not accept any rejection. The keys were posted to us and unsuccessful attempts were made to have the log book transferred into our name.

The car was eventually towed away by the authorities after receiving numerous parking tickets. The customer has now instigated court proceedings against us for the full amount paid for the car! Is she likely to be successful?

A

If goods do not conform to contract, the remedies available to the customer provided by the Consumer Rights Act 2015 are the short-term right to reject, the right to repair or replacement and the right to a price reduction or the final right to reject. Whether there has been a breach of contract depends on whether the goods are not of satisfactory quality, not fit for purpose or not as described.

From what you say, it seems in this case that the customer has acted irresponsibly. The car remains their property and so to abandon it is likely to have consequences. The Consumer Rights Act does require that the consumer makes clear their wish to reject, but does not provide guidance on how. The act is also silent on disputes about conformity but provides guidance on the remedies for non-conformity. The best scenario is where a situation can be worked out amicably between the parties with an understanding of the legal position in mind, but this often does not

happen, as in your case. The ensuing litigation involves establishing whether or not the car was not fit for purpose, not of satisfactory quality or not as described.

Your customer’s conduct has been inappropriate in trying to force a rejection by attempting to make the car your responsibility five months into their ownership. It’s not reasonable and they should have awaited the outcome of the litigation for a resolution.

However, a district judge will consider whether the car was sold with an existing fault or not, regardless of the customer’s subsequent behaviour, although they could be found to have failed to mitigate losses as a result.

You will need to show that you prepared the car well and it was in good condition. Ideally, you will be able to demonstrate it was pre-delivery inspected, MOTed and in satisfactory, fit-forpurpose condition commensurate with the age, mileage and price paid at the point of sale.

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR Fifty per cent off standard set-up for website sign-up with free-of-charge SEO upgrade – exclusive to Car Dealer Club members

Free DMS when you sign up to our awardwinning, industry-first online retailing product ClickEngage – exclusive to Car Dealer Club members Offers will be running until the end of the year

78 | CarDealerMag.co.uk

A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock, complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. * Subject to vetting

Exclusive 10 per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.

Take notice of this ruling!

Q

Regrettably, we have come to the end of the road with one of our employees and are planning to ‘let him go’. Is there anything we need to be aware of before we do so?

There is something, yes. The Supreme Court has recently confirmed that in employment matters, in departure from the general principles of contract law, a notice you give to your employee takes effect only when the employee has had a chance to read it.

Say you send a notice of dismissal by post. The employee is on holiday and only sees your letter a week later when they return. The notice period starts running only from the day when the employee comes back and has a chance to read your letter.

If the notice is handed over personally, without relying on post, or communicated verbally, (not voicemail), then it will start running from the day on which your employee is given the notice.

Another option would be to include an express term in your employment contracts defining when your notices are deemed as served.

A

WHY I LOVE LAWGISTICS

WANT TO UPGRADE?

A lot of stress and strain is removed from our lives – we wouldn’t use anyone else!

LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation.

There really is a package for everyone with Lawgistics.

AFFORDABLE Cars of Sussex Ltd is an independent used car dealer based in Peacehaven, East Sussex. It typically has 100 cars on site at any one time, with stock priced between £3,000 and £10,000.

The dealer has been signed up to Lawgistics for nearly three years and the firm’s managing director, Jay Russell, said: ‘In that time we’ve had a couple of small issues with customers. Every time we do, we email Lawgistics straight away and it always comes back to us within 24 hours telling us what is the next step. It also composes emails on our behalf and it means we really don’t have to do anything.

‘The issues are nearly always to do with a car, and it’s usually a customer whingeing that something wasn’t right at the point of sale once their warranty has expired.’

He added: ‘We get Lawgistics involved, which states the Consumer Rights Act for us and makes the case work in our favour as much as it does in the customer’s favour. The customer thinks that all the rights are with them, but

as soon as Lawgistics is in the background we feel confident knowing we would win the case or at least be able to put forward our argument without messing up.

‘Lawgistics is also very professional with its emails, to the point that it scares off a lot of customers when they receive something from the company.’

He said his favourite aspect of it was its ‘ease of use’ and just how professional the service always is.

‘We fully recommend it. It takes a lot of the strain and stress out of our lives by having Lawgistics, particularly in the evenings.

‘We wouldn’t use anyone else, and always recommend Lawgistics to all the dealers around us,’ Russell added.

JUST £49.99 Discount on software and free health check app from Dragon2000

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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.

Fifty per cent off your first video shoot or PR package Video has become a must-have for dealers, with branded, broadcastquality video for corporate messaging and social media outlets now the industry standard.

Automotive PR and video experts On Cue Comms, who work with the likes of Glyn Hopkin, Nissan, Mitsubishi, Skoda, Motors.co.uk and many more planning, filming and producing video content, are offering club members 50 per cent off their first video shoot or PR package. For more information, please call 023 9252 2434.

To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Book an appointment with Paragon’s motor finance team and get £50* At Paragon, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777. * Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.

Dragon2000

ON CUE .

PR

LISTS

CIA

SPE

CarDealerMag.co.uk | 79

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK |

SMMT sales data May/year to date

5

SMMT FIGURES

Modest growth hailed as encouraging – now we need some stability T

he UK new car market grew by a modest 3.4 per cent in May with 192,649 new units registered, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

The growth follows a substantial 8.5 per cent decline the previous May, when demand was affected by the dual factors of VED pull-forward and buyer hesitancy ahead of June 2017’s general election.

Private demand in the month grew by 10.1 per cent, with more than 83,000 consumers driving home in a new car and offsetting ongoing declines in the business and fleet sectors – down 9.6 per cent and 0.7 per cent respectively.

The most popular segments were superminis (up six per cent), small family cars (up 1.6 per cent) and dualpurpose vehicles (up 19.2 per cent), while demand for specialist sports cars also rose, by 12.7 per cent. In addition, the hottest May on record saw a surge in demand for convertibles as drop tops rose 11.7 per cent year-on-year.

Meanwhile, there was good news for the alternatively fuelled vehicle segment, as demand for hybrid and

AA Cars CEO James Fairclough plug-in cars grew by 36.1 per cent to 11,240 units, accounting for a record 5.8 per cent of the market.

Plug-in hybrid cars were the biggest driver of growth, up by 72.7 per cent, while hybrids rose by 22.6 per cent and zero-emission battery electrics grew by 18.7 per cent. Registrations of petrol cars also increased, by 23.5 per cent, while diesels fell for the 14th consecutive month, down 23.6 per cent.

In the year to date, the overall market remains down, with new registrations having fallen by 6.8 per cent, as economic and political uncertainty continues to affect demand. Business and fleet confidence

continues to lag in particular, down by 16.2 per cent and 7.1 per cent respectively, while demand from private buyers in the first five months is 5.7 per cent behind 2017 levels.

Mike Hawes, SMMT chief executive, said: ‘May’s growth, albeit on the back of large declines last year, is encouraging and suggests the market is now starting to return to a more natural running rate.

‘To ensure long-term stability, we need to avoid any further disruption to the market, and this will require sustainable policies that give consumers and businesses the confidence to invest in the new cars that best suit their needs.’

James Fairclough, CEO at AA Cars, said: ‘The new car market is now starting to show the early signs of rejuvenation, which is great to see.

Modest growth of 3.4 per cent is a good indication that UK buyers are finally heading back to the forecourts.

‘It’s also interesting to note that Ford and VW continue to dominate sales in the new car market, closely mirroring what we’ve been seeing in the quality second-hand car market.’

Top

Most-improved manufacturers in May

Lotus +900% Jeep

+115%

MG +105% Abarth +79% Porsche +56%

5

Bottom

Worst-performing manufacturers in May

Infiniti -80% Fiat -36% Smart -31% Bentley -24% Maserati -22%

‘Market is relatively buoyant, but consumers are facing uncertainty’ ENTICING offers from manufacturers and unseasonably warm weather helped deliver the positive result for the new car market in May, according to Auto Trader director Ian Plummer.

He said: ‘Importantly, the overall market growth was driven by pure consumer demand – individuals buying cars for personal use – rather than by B2B sales or tactical activity to achieve volume targets. Sales from the private retail 80 | CarDealerMag.co.uk

segment were up by over 10 per cent year-on-year.

‘Nevertheless, there is still underlying fragility in the market. As we move away from some unusual seasonal fluctuations both this year and last, we’re beginning to see a clearer overall trend.

‘Whilst that trend shows that the market is still relatively buoyant, consumers are facing uncertainty on two fronts. Brexit continues to weigh on confidence and raise the prospect of

higher car prices due to a weaker pound, while at the same time there is widespread uncertainty about the government’s emissions policy.

‘The long-awaited publication of the ‘‘Road to Zero’’ strategy in the coming weeks will provide more clarity for both consumers and manufacturers on the transition to loweremission vehicles. This can only be helpful for the industry.’

Dacia

DS

+30% May 2018 Marque

2018 612

Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Citroen Dacia

May 2017

% market share

Abarth

-15%

2017

Year-to-date (YTD)

% market share

0.32

341

355

0.18

269

128

0.07

148

13,687

7.10

13,764

87

0.05

115

12,940

6.72

12,731

6

0.00

4

4,408

2.29

4,028

2,516

1.31

1,939

% change

2018

% market share

2017

% market share

% change

0.16

34.61

79.47

2,497

0.23

1,855

0.14

31.97

2,117

0.20

2,253

0.19

-6.04

0.08

-13.51

571

0.05

870

0.08

-34.37

7.39

-0.56

74,737

6.93

74,638

6.44

0.13

0.06

-24.35

604

0.06

800

0.07

-24.50

6.83

1.64

69,411

6.43

73,489

6.34

-5.55

0.00

50.00

26

0.00

35

0.00

-25.71

2.16

9.43

23,103

2.14

25,164

2.17

-8.19

1.04

29.76

11,617

1.08

11,542

1.00

0.65

0.18

547

0.28

647

0.35

-15.46

3,184

0.30

4,274

0.37

-25.50

Fiat

2,623

1.36

4,075

2.19

-35.63

16,333

1.51

23,633

2.04

-30.89

Ford

21,136

10.97

20,514

11.01

3.03

123,207

11.42

141,221

12.19

-12.76

Honda

3,825

1.99

3,397

1.82

12.60

25,051

2.32

24,184

2.09

3.59

Hyundai

7,387

3.83

7,321

3.93

0.90

42,378

3.93

42,135

3.64

0.58

Infiniti

69

0.04

346

0.19

-80.06

454

0.04

1,749

0.15

-74.04

Jaguar

3,069

1.59

2,564

1.38

19.70

15,192

1.41

17,430

1.50

-12.84 -16.68

DS

652

0.34

303

0.16

115.18

2,857

0.26

3,429

0.30

6,721

3.49

6,682

3.59

0.58

42,344

3.92

42,678

3.68

-0.78

6,566

3.41

5,619

3.02

16.85

35,408

3.28

39,474

3.41

-10.30

Lexus

851

0.44

715

0.38

19.02

5,602

0.52

5,281

0.46

6.08

Lotus

20

0.01

2

0.00

900.00

112

0.01

119

0.01

-5.88

Maserati

83

0.04

107

0.06

-22.43

622

0.06

856

0.07

-27.34

2,408

1.25

2,447

1.31

-1.59

18,253

1.69

19,306

1.67

-5.45 69.71

Jeep Kia Land Rover

Mazda

85

0.04

62

0.03

37.10

353

0.03

208

0.02

13,387

6.95

14,660

7.87

-8.68

76,414

7.08

82,842

7.15

-7.76

MG

811

0.42

395

0.21

105.32

3,415

0.32

1,679

0.14

103.39

Mini

5,094

2.64

4,972

2.67

2.45

25,949

2.40

25,973

2.24

-0.09

McLaren Mercedes-Benz

Mitsubishi

1,400

0.73

1,142

0.61

22.59

8,586

0.80

7,555

0.65

13.65

Nissan

8,699

4.52

10,627

5.71

-18.14

50,941

4.72

72,018

6.22

-29.27

Peugeot

6,335

3.29

6,060

3.25

4.54

37,203

3.45

39,858

3.44

-6.66

Porsche

1,991

1.03

1,278

0.69

55.79

7,711

0.71

6,255

0.54

23.28

Renault

4,964

2.58

4,308

2.31

15.23

29,030

2.69

33,508

2.89

-13.36

Seat

5,674

2.95

3,882

2.08

46.16

29,379

2.72

24,590

2.12

19.48

Skoda

6,337

3.29

6,713

3.60

-5.60

34,164

3.17

35,046

3.03

-2.52

Smart

636

0.33

924

0.50

-31.17

3,198

0.30

5,106

0.44

-37.37

SsangYong

250

0.13

273

0.15

-8.42

1,266

0.12

1,914

0.17

-33.86

Subaru

231

0.12

155

0.08

49.03

1,362

0.13

1,210

0.10

12.56

Suzuki

3,117

1.62

2,722

1.46

14.51

16,561

1.53

18,331

1.58

-9.66

6,774

3.52

6,720

3.61

0.80

46,702

4.33

46,872

4.05

-0.36

Vauxhall

13,983

7.26

14,041

7.54

-0.41

79,732

7.39

91,506

7.90

-12.87

Volkswagen

18,097

9.39

15,656

8.41

15.59

90,162

8.36

85,388

7.37

5.59

3,621

1.88

3,184

1.71

13.72

19,060

1.77

19,501

1.68

-2.26

Other British

95

0.05

51

0.03

86.27

330

0.03

296

0.03

11.49

Other Imports

372

0.19

362

0.19

2.76

1,851

0.17

2,286

0.20

-19.03

192,649

100

186,265

100

3.43

1,079,049

100

1,158,357

100

-6.85

Toyota

Volvo

Total

Figures supplied by SMMT

CarDealerMag.co.uk | 81

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Market Insight.

...in association with ASE-global.com

Rollercoaster continues as stock values fall back from April gain Consolidation activity is expected to pick up once more after continued silence, says Mike Jones

D

uring May we had a raft of trading updates from motor retailers relating to historic annual performance and the first indications of the results for 2018’s first quarter.

Given the strength of the comparative period, these were expected to prove a relatively tough read. However, the retailers should now be out of the prior year headwinds and in a position to outperform their 2017 result. There were some positive themes in used cars and aftersales.

However, there were drops in new vehicle sales across the board.

The share prices continued their rollercoaster ride, with significant drops at Pendragon and Caffyns. While the FTSE 100 is now practically back where it started this year, these monthly motor retail drops mean our motor retail index is now back 2.2 per cent on the year.

Financial performance Inchcape issued a trading update for the four months to the end of April. Overall, the update was positive, with revenues up 6.2 per cent on a like-for-like basis. There was strength among the company’s distribution business and within

Share price movement since the start of 2018

Share price movement over the past month

Pendragon

-8.4%

-10.0%

Vertu

-2.6%

-1.6%

Lookers

3.9%

5.7%

Inchcape

-6.5%

0.7%

Cambria

1.6%

-0.8%

Caffyns

-2.4%

-4.7%

Marshall

-0.9%

0.6%

retail in emerging markets and Australasia.

The company did, however, note a weaker performance within the UK and Europe. It is expecting solid profit growth for the full year.

In addition, Pendragon released an interim management statement for the first quarter.

Profits for the period more than halved compared with the prior year as new vehicle sales fell back in line with the market and used car performance was constrained by a shortage of used cars.

Lookers also released a trading update for the first quarter. Overall trading performance was deemed to be ‘positive’ with a strong result in March driven by used cars and aftersales.

Trading performance since March has apparently been encouraging, with further positive progress expected during the year.

Vertu released its trading results for the year ended February. There was a significant reduction in its profit before tax that was ‘reflective of a tougher trading environment’.

Consistent with the other announcements, there was strength in used cars and aftersales, with the company being significantly affected by the new car market.

Transaction activity With the raft of earnings announcements there was continued silence on the transaction front.

However, I would not expect this to last for long.

Now we have the stability of more representative comparisons and more realism in some vendors’ expectations of the current state of the market, I’d predict we will see consolidation activity start to pick up once more.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month.

CarDealerMag.co.uk | 83

Auctions.

How have our loan cars been performing?

Long-termers: p95

Pearson

CITY AUCTION GROUP

Deal struck with Irish logistics company

AUCTION STATIONS

Accurate valuation builds customer confidence

C

ity Auction Group has partnered with SVS Smith Vehicle Solutions to provide the swift movement of vehicles bought from Rockingham to the Irish market within five working days, guaranteed.

On arrival in Dublin, the vehicles can be tactically refurbished to retail standard before delivery to the purchaser, which is another first for the Irish market.

Michael Tomalin, managing director of City Auction Group, said: ‘This new partnership with SVS will ensure competitive pricing and superfast delivery of purchased vehicles direct to the Irish buyer base.

‘We have long-term business relationships with the Irish buyer network, due to our established centre in Belfast, and they have a requirement for quality UK corporate fleet vehicles for their used vehicle operations.

‘We intend to offer them many incentives to purchase at Rockingham and this is the first of many solutions we intend to develop.’

A Peter Smith, managing director of SVS Smith Vehicle Solutions, said: ‘We recently visited City Auction Group at Rockingham and are delighted to partner with them, providing the Ireland region with vehicle logistics and refurbishment services at our Dublin centre.

‘The quality of vehicles that City Auction Group offers is a game-changing solution, and we believe we can support the growth of this prestigious remarketing centre by providing professional services.’

Hitachi Capital appoints SVA as latest partner HITACHI Capital Vehicle Solutions has appointed Shoreham Vehicle Auctions as its latest car and van remarketing partner.

SVA will be selling ex-Hitachi cars at its weekly fleet sale on a Thursday and its fortnightly light commercial vehicle sale, which it runs every other Tuesday.

During the trial period, SVA has delivered a 100 per cent conversion rate for Hitachi on cars and vans.

Roger Holder, Hitachi Capital’s remarketing manager, said: ‘SVA gained Car dealer new strip adhas Revised a strong reputation for delivering excellent

service levels for its buyers and vendors, which translates into healthy bids and high conversion rates. They are particularly strong in the commercial vehicle sector, which is another reason for choosing them as a remarketing partner.’

SVA managing director Alex Wright said: ‘Hitachi has a great mix of ex-fleet used cars and vans coming into the auction, which our buyers have already responded well to.

‘We look forward to establishing a strong buyer following for Hitachi over 4/4/18 12:01 Page product 1 the coming months.’

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84 | CarDealerMag.co.uk

Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0845 600 6644.

Excellent variety of weekly stock from premium sources

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www.fleetauctiongroup.com

s sourcing good-quality stock becomes ever more competitive for retail dealers, identifying and retaining those retail-quality part-exchange cars is essential. With fewer customers stepping through dealership doors these days, it’s important for dealers to be able to offer a quick and efficient valuation process on a part-exchange vehicle.

It is also important that this doesn’t add to the proliferation of systems a dealer is expected to use but fits in seamlessly with existing systems and processes.

BCA Dealer Pro is an easy-to-use cloud-based car appraisal tool that allows for the part-exchange process to be managed quickly and easily.

Using a simple guided process to appraise, image and then accurately value part-exchange vehicles, Dealer Pro captures all the information needed that allows deals to be done with confidence. And with a new BCA Dealer Pro app about to launch, it has never been easier for dealers to access all the benefits it brings.

Dealers can maintain inventory at the touch of a screen, with the freedom to see what is available across the entire dealer group in real time as and when they are uploaded.

Once the car’s information is entered into the system, BCA Dealer Pro can offer market values to the user, allowing them to relay accurate and dependable prices back to the customer. For non-retail stock, Dealer Pro has already captured all the information needed to start the remarketing process. Vehicles can then be sent directly to the BCA online catalogue straight from the device.

There are huge benefits from getting the appraisal of a vehicle right the first time.

Choosing the right tools for the job helps to ensure a consistent approach that will drive sales, build customer confidence and help to close deals profitably. With used cars driving profitability, getting the price right has never been more critical.

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CarDealerMag.co.uk | 85

A Global View.

...in association with

CDK Global announces new Connected Workshop concept Stuart Miles, CDK Global’s MD for the UK and Ireland, explains how the company is pioneering a new era of open and connected industry collaboration.

T

he Connected Workshop experience is everything a retailer needs to take their workshop digital and deliver a great customer experience every step of the way.

By encouraging collaboration across our industry, CDK understands where new innovation can join the dots between multiple service providers.

A great example of this is the use of integrated video with CitNOW. This gives workshops the opportunity to secure more work from VHCs, while helping to create a truly personalised experience for the customer.

The concept has been developed in response to new trends and challenges faced by retailers today. The first trend is the increasing consumer demand for convenience.

A recent study showed that 79 per cent* of consumers prefer to book their service online, so it’s important for dealers to make sure they meet this expectation.

To help join the dots, products from CDK Connected Workshop work together to send service reminders and allow customers to book appointments online.

The time is then reserved in the workshop diary immediately and the customer gets an automatic confirmation of their booking.

To personalise the experience, customers are reminded of any outstanding work needed to their vehicle when they book their appointment, helping build trust and showing an understanding of their specific needs.

Secondly, creating and maintaining customer loyalty in the aftersales area is a challenge for retailers. In fact, research by CDK found that just 18 per cent** of consumers return to the same dealership after the first two services, so providing an efficient aftersales experience could be a great way to build loyalty in this area.

Thirdly, transforming workshop operations

with digital technologies can help boost workshop efficiency.

Using tablet devices for customer check in/out, technician clocking and vehicle health checks means that tasks can be carried out faster and information is quickly synched with the DMS. This collaborative, consumer-focused approach provides a more connected industry that links the online and in-store experience and enables dealerships to adapt more easily to new retail trends.

‘ The concept has been developed in response to new trends and challenges faced by retailers today.’

Stuart Miles

Stuart Miles is managing director for the UK and Ireland for CDK Global. He is responsible for one of the largest regions and helps deliver growth and market share for CDK Global through customer engagement in the automotive sector. Stuart has more than 20 years of automotive knowledge and experience.

References: * Servicing Stop, April 2017; ** CDK International customer survey, 2017

86 | CarDealerMag.co.uk

Taking Stock.

Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead

Stiff competition keeps average values at near-record levels The seasonal dip usually felt at this time of year hasn’t been as significant, with stock churning quickly, says Stuart Pearson, BCA’s chief operating officer for its UK remarketing operation.

D

emand from buyers continued to keep prices firm at BCA during May, with average values at near-record levels.

The headline average value fell by just £16 to £9,568 in May, with average values up by £707 year-on-year – a 7.9 per cent rise over the 12-month period.

May’s average value is the fourth highest on record.

Fleet and lease values reduced marginally from last month’s record level to £10,963 – still the third-highest point on record – while dealer part-exchange values remained at a record high of £5,000 for the second month running. Values increased for nearly-new vehicles.

Stuart Pearson, BCA chief operating officer for UK remarketing, said: ‘Professional buyers have continued to compete strongly for good-quality

used car stock – a pattern that reflects the high levels of retail demand that dealers have been reporting throughout this year.

‘The seasonal dip that is often felt at this time of year hasn’t been so significant and the strong demand has driven conversion rates, meaning stock is churning quickly, which is good for buyers and sellers alike.’

Average fleet and lease values slipped by just £174 (1.5 per cent) to £10,963 from last month’s record value of £11,137. Despite this, values for fleet and lease cars in May were the third highest on record. Retained value against original MRP (manufacturer’s retail price) fell by half a percentage point to 43.54 per cent.

Average value of used car in fleet & lease sector :

£10,963

Year-on-year values were up by £517 (4.9 per cent), with age rising and mileage declining, although both by small margins.

Average dealer part-exchange values remained at a record level, staying at £5,000 for the second month running. Year-on-year values were ahead by £342, representing a substantial 7.3 per cent increase over the 12-month period, with age and mileage falling slightly.

Values for nearly-new vehicles improved for the second month running, rising by £1,040 (5.4 per cent) compared with April to reach £20,210. Values are up by £1,864 (10.1 per cent) year-onyear. Model mix has a significant effect in this very low-volume sector, with brand-specific winners and losers.

Average dealer part-exchange values:

£5,000

CarDealerMag.co.uk | 87

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Real Deals.

Peugeot that showed the French brand could be interesting again Ted Welford looks at a modern fast coupe that you might not know too much about.

The RCZ R has built up a cult following over the years

P

eugeot was on a winning streak in the ’80s, producing blisteringly good cars to drive such as the legendary 205 GTI hot hatch.

While the 1990s were still, largely, a positive time for the French marque, by the early to midnoughties, Peugeot had hit rock bottom.

Mundane boxes of averageness rolled out of Peugeot factories, with the 407 saloon, 307 hatch and 207 supermini all failing to excite. The GTI range was also at its worst, unfortunately.

Peugeot seemed to be at a pretty low point, although it’s worth noting that its cars remained popular and it was still in good economic shape.

The Peugeot RCZ coupe was the car that began to turn the company’s fortunes around, and while not quite a ‘game-changer’, it signalled a shift for the brand. Initially conceived as a concept car at the 2007 Frankfurt Motor Show, the 308 RCZ Concept was admired so much that Peugeot decided to make a production version – a more or less unchanged version of the concept, other than dropping the 308 part of its name.

And what a beauty it was! Its perfect proportions and glass bubble roof were utter works of art, while it was also well received by the motoring press. Top Gear Magazine declared it its Coupe of the Year in 2010 – the year the car was launched.

The engines were nothing special to begin with, but Peugeot produced a powerful R version in 2013 – an example of which you see here.

While using the same 1.6-litre THP engine as the standard car, it was reworked to produce 270bhp – being the most powerful car in its class per litre at the time.

The R was extensively developed by Peugeot Sport in Paris, using knowledge gained from Peugeot with its single-make series RCZ Racing Cup – having a nearly identical power output to the cars that raced in that championship.

Modifications included an uprated clutch, larger intercooler and turbocharger, as well as a modified exhaust. A Torsen differential also featured, as did stiffer springs, a limited-slip differential and revised dampers.

It also looked the part, too, with large 19-inch alloys, red brake callipers and a new fixed spoiler.

The French firm labelled it as a ‘Peugeot like no other’ – testament to the fact there was more to the R than just a minor increase in performance.

Speaking of performance, it’s certainly no slouch, as it can accelerate from 0-60mph in just 5.7 seconds and go on to a top speed of 155mph.

An asking price of £31,995 in 2013 might have seemed somewhat brave for a performance Peugeot, but the RCZ R has built up a cult following. One owner we spoke to was Kerry Thirkettle, who is on her second RCZ R and liked the first one so much she bought another just five

months after selling the original.

She said: ‘The RCZ R especially has great road-holding ability, and can be pushed on great driving roads. The twistier the better! It’s also surprisingly economical for a sports coupe and it’s a great tourer for longer journeys.’

While a standard RCZ can now be had from as little as £5,000, the R’s values have remained high and start at just under £14,000.

The stunning example you see here is the cheapest we could see on the market – although don’t hold that against it. This is an early 2013 (63-plate) car, painted in Mercury Grey, and while it might have covered 50,000 miles, it has a full service history and looks pristine, with the dealer describing it as ‘unmarked’ and a ‘true testament to its previous owner’.

It’s for sale with Church’s Performance Cars, which typically specialises in AMG Mercedes models, in Loxwood, West Sussex – not so far from where Top Gear is filmed in Dunsfold. It’s also well priced at £13,995.

Unfortunately, Peugeot axed the model in 2015 because of falling sales, but even so it hasn’t aged a day in the 11 years since we saw the concept.

To sum up, the RCZ was, and is, a key car for Peugeot. It signalled a change in the firm’s fortunes, which led to it producing some great ‘normal’ cars such as the 3008 crossover, not to mention wonderful GTI versions of the 208 and 308. Long may the RCZ’s legacy continue!

CarDealerMag.co.uk | 89

Data file.

James Litton

TRADER TALES

A bigger share of the pie... and better levels of service

B

rokers have filled a void in the retail motor experience space for a long time.

Disgruntled customers, bored of tedious sales processes, have flocked to broker websites in their thousands in search of cheap deals and slick service.

As an example, the website contracthireandleasing.com has for years been awash with countless deals offered by a multitude of companies aiming to cash in on a dealer’s inability to retail to target.

Dealers – or at least those not operating in this area – tend to take a dim view of brokers. They traditionally imagine them as being nerdy computer types, probably operating from a shed in their garden and not giving a damn about customer service or relationship building. Conversely, broker perceptions of the dealer environment tend to involve expensive deals, clunky experiences and an imbalanced focus on the sale of insurance products and not the car.

Regardless of perception, the broker marketplace is so well established that there is a set of buyers who would never entertain the idea of buying a car from a retail dealer, having the perception (which may well be true) that they are able to repeatedly get great deals on the cars they buy.

However, some manufacturers are making moves which might result in a change in the broker market as we see it today.

It is no secret that retailer reward mechanisms have not only been under pressure for years, but that they simply do not fulfil the requirement for modern retailing.

Many networks have seen increased overheads through investment in people and premises particularly, yet dealer profitability is decreasing.

Therefore, franchises are having to embrace a philosophy that should have been in place decades ago: focus on selling everything you can well.

It is no longer a given that you make a 1.5 per cent return – every sale from a £10k used car to a key ring is hard fought. Therefore it stands to reason that reward mechanisms are becoming less volume and margin related, and more behaviour and standards focused.

This then frees up historically blown dealer margin into flat fee support that recognises excellence and investment.

Vauxhall’s recent decision to rationalise its network follows a similar move by Renault and others are sure to follow in the future.

This should result in a more consistent service offering from remaining retailers as their share of the pie gets bigger, standards more stringent and there is possibly less space for brokers to operate in.

‘Retailer reward mechanisms have been under pressure.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves.

90 | CarDealerMag.co.uk

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The wild night out that shouldn’t have happened

I

recently changed jobs, moving back into the franchised world after a spell in the independent sector. My colleagues were decent enough to organise a bit of a whip-round for me and the couple of bottles of wine they bought with the dosh went down very nicely, thank you.

The incident reminded me of an unfortunate occasion quite a long time ago when a colleague of mine was making a job move away from the showroom I was working in back then.

I was the one tasked with organising the collection and, to be honest, it was a bit of a struggle as he wasn’t particularly well liked.

Anyway, after a bit of begging and pleading around the dealership, I managed to get a reasonable amount of money together. All I had to do was nip to the off-licence, acquire some reasonable looking plonk and the job, as they say, would be a good ’un.

So far so good. I was just about to head to Oddbins after a long and tiring day when a workmate approached to ask me if I fancied a quick beer before heading home.

Now I was in a bit of a quandary. The only cash I had on me was from the dough from Terry’s leaving envelope (not his real name) – but hey, I thought, I could always replace it in the morning and get his wine a bit later in the week.

This was Wednesday night and he wasn’t leaving until Friday, after all.

By now, you are probably predicting that this confession will include drunken debauchery, lots of money wasted on booze and an embarrassingly empty collection envelope for poor old Tel-boy.

And you’d be absolutely right. As the comedian Micky Flanagan might have said, my mate and I had only planned to pop out but we ended up out out !

The worst bit? I had to confess to my colleagues what I’d done, because I had such a hangover the following day, I didn’t even make it into work.

So someone else was despatched to get the booze using a credit card and I paid them back once I’d recovered from my drunken antics.

I even added another few quid out of my own pocket, as I was feeling so guilty about my behaviour.

What an absolute disgrace!

Right... Anybody fancy a quick one after work?

‘The only cash I had on me was from the dough from Terry’s leaving collection.’

Tell us your story

Have you something to confess? Email our head of editorial (you can find her details on page three) or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 91

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Key Notes.

...in association with Traka

Why telematics really matters...

Steal a march on OEMs by acting quickly and building customer loyalty, advises Paul Smith

T

elematics is forming the basis for a significant ‘connected car services’ revolution. It’s something dealerships can take advantage of to more than double five-year customer retention numbers from the industry average, which sits in the 25-35 per cent range today. And if dealerships don’t begin offering these telematics-based services to existing customers over the next two years then their OEMs most certainly will.

Two years ago, Penny Searles set up the UK’s first connected car service for used cars, called ‘Smart Driver Club’. She saw an opportunity to use increasingly cost-effective wifi, Bluetooth and USB-connectable on-board diagnostics (OBD-II) devices, which provide ready access to all data coming from vehicles’ engine control units, then delivering this data in digestible form to a driver’s internet-connected smartphone as well as dealership service departments.

By so doing, it’s become possible to deliver a rash of mobile-accessed, consumer-focused services designed to protect drivers and manage vehicle running costs.

Penny’s insurance broking background meant she thoroughly understood the value of real-time vehicle usage and driving behaviour data to insurers, who were happy to use this intelligence to reduce motor insurance premiums by as much as 40 per cent for those sharing this data.

But data collected and transmitted via the OBD-II device was capable of passing far more information about the vehicle and driver back to the customer’s original dealership, providing customer permissions had been given in line

with GDPR. Information coming from the OBD-II SmartPlug has been used to create multiple services/benefits for Smart Driver Club users, including: My mechanic: To alert a motorist if the car they are driving requires maintenance.

Crash assistance: In which the Smart Driver Club will alert the police to the location of a collision if the club cannot reach the driver via their phone following an accident.

Stolen car tracking: An in-car tracker activated by the customer so that if a car is stolen, the exact location of the vehicle can be passed to the police.

Breakdown help: The club can even inform roadside assistance of the location of the customer and pass on useful information about the car itself if it has broken down.

MyDriving: Motorists can save money on fuel costs by monitoring fuel efficiency on journeys and tempering driving style accordingly.

Where did I park? A map can be viewed via the app to see where a car is parked.

Club insurance: The Smart Driver Club is also an insurance broker, passing details of vehicle usage and driving style on to insurers to reduce premiums.

Value my car: A combination of telematics information from the OBD-II device and integration with Cap HPI makes it possible to get a highly accurate valuation on your smartphone.

My deals: Lets dealerships put add-on products on offer via the same app.

The Smart Driver Club now has a mature connected car services offering, which can be white-labelled by dealerships and used to deliver

all the above benefits and more to customers.

It is already operating in several major dealerships. The added value that these services deliver has already been found to increase customer retention considerably.

The wisdom of surrounding the customer with telematics-based services that save both time and money and provide additional safety for drivers is not wasted on the OEMs themselves.

It’s interesting to note that some of the manufacturers of prestige vehicles are starting to offer their own connected car services platforms to new car buyers and their franchise dealerships.

Take BMW Group, which is offering new BMW drivers a BMW CarData service via its BMW ConnectedDrive customer portal.

So a question to consider as connected car services are rolled out by your OEM is: ‘Do I want to retain control of my customers’ data and the services I am able to offer my customers to retain them, or am I comfortable with leaving that control to my OEM(s)?’

It may depend what your OEM offers via their connected car service and how much you trust them not to share the information (about the cars your dealership has sold) with other third parties.

If the majority of the cars you are selling are approved used or mainstream brands, then the Smart Driver Club model is the one for you.

The key is to get in early to offer these services, learn what services your customers most value, and which positively impact customer loyalty the quickest. By getting ahead of your OEMs, you will be able to more readily call the shots when they offer you their equivalent of BMW CarData.

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

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Long-termers.

LATEST FROM THE FLEET...

Vauxhall Grandland X We grab the keys to a beige Vauxhall with a personalised number plate for six months.

by TOM WILTSHIRE @mctreckmeister

V

auxhall doesn’t have the best track record when it comes to SUVs. Though its compact products – the Mokka X and Crossland X – are half-decent, it’s yet to produce a good large SUV. The old Antara and its Frontera predecessor were downright terrible. Enter the Vauxhall Grandland X, which we’ll be running for six months to see if the British brand has finally figured out how to crack this market sector.

It certainly stands out from the crossover crowd. I can only picture the Vauxhall press office cackling and rubbing their hands together in glee when they specced our Grandland. Call it whatever you like – Golden Sunstone (brochure), Gold (DVLA), or disgusting (my grandma) – what we have here is a BEIGE Vauxhall.

I’m not averse to interestingly coloured cars – in the past I’ve owned red, brown, spring green and purple – but the metallic beige does no favours for the Grandland’s looks. In one of its other shades, such as the Dark Ruby Red or Topaz Blue, it looks every bit the modern crossover and quite a handsome one too. As it stands, we’re driving around in a mobile retirement home.

The dealer we collected the car from, Eden Vauxhall in Fareham, skirted neatly around the issue of colour but was hopeful that we’d like the car. ‘Grandland X has been really good for us,’ said Adam Street, the dealer’s new car sales controller. ‘There’s no denying it’s a massive improvement over, well…’ he tailed off, with either traumatic memories or brand loyalty preventing him from mentioning the old Antara or Frontera.

There’ll be plenty of time to harp on about the colour during our six months with the car, though. What about the rest of the package?

Well, Vauxhall’s kindly given us a high-end Sport Nav model, so the kit list includes 18-inch alloy wheels, front fog lights and chrome trim to jazz up the exterior.

Inside, niceties such as auto lights and wipers, all-round parking sensors, dual-zone climate control and cruise control all feature, along with Vauxhall’s own eight-inch touchscreen infotainment display. There’s plenty to play with

Tom collects our Grandland X long-termer from Adam Street at Eden Vauxhall, Fareham

THE KNOWLEDGE Model: Vauxhall Grandland X 1.2 Turbo

S/S Sport Nav Price: £28,175 Engine: 1.2-litre three-cylinder petrol Power: 128bhp Torque: 230Nm Max speed: 117mph 0-60mph: 10.9 seconds MPG (combined): 55.4 Emissions: 117g/km Mileage: 5,371 THIS MONTH’S HIGHLIGHT: Cruising in comfort over 700 miles. here, including the OnStar remote assistance service – more on that in a later report.

Vauxhall has also specced a few extra features.

I’m very glad to see full LED headlamps, and the heated windscreen and panoramic glass roof are both pleasing touches. There’s also a wireless charging pad under the armrest – admittedly of limited use to me, with last year’s smartphone – and the Winter Pack, which heats both front and rear seats and the steering wheel.

Our Grandland X packs the product of the brand’s collaboration with PSA Peugeot Citroen – namely, the 1.2-litre PureTech petrol engine. It’s mated here to a six-speed manual gearbox and front-wheel drive.

Standard crossover fare, then – a label that could be plastered over the Grandland’s bonnet if we’re honest. There’s very little here to surprise or excite, either in the way it drives or in the sea of grey plastic inside. I’ve already completed a few long journeys, including halfway around the M25 at rush hour and a blast across the Cotswolds, but the car stubbornly refused to be anything more than competent yet dull.

The recipe’s actually quite a good one, as the PSA engine is a gem in most cars we’ve tried it in – refined at speed, powerful enough at the low end and very efficient. Yet it seems to have had all of its character engineered out of it, along with the low-end torque.

As time progresses we’ll investigate whether it’s more impressive on the twisty stuff than first impressions suggest.

We’ll also be looking into whether rose-tinted sunglasses actually improve the colour…

CarDealerMag.co.uk | 95

Long-termers.

LATEST FROM THE FLEET...

Seat Arona Crossover scores highly on safety, equipment and tech – but there has been a fly in the ointment . . .

by DAVE BROWN @CarDealerDave

S

everal weeks of enjoyable motoring have now passed by thanks to those kind folks at Seat and the nifty new Arona they have loaned us.

We only had space for the briefest of welcome reports last month but the great little crossover continues to impress, with its eye-catching design, clever tech and superb levels of comfort and safety. Trips from my home on the south coast to London and Gloucestershire in recent weeks have been despatched with ease.

Although the Arona is a ‘compact SUV’ there’s no shortage of space for a six-footer like me and the comfortable seats provide excellent support.

The instruments and dashboard have all been designed so that you barely have to take your eyes off the road – which obviously makes things more convenient and, perhaps more importantly, safer.

That’s the good news.

There is a slight downside this month, though, but to be honest it won’t really affect my use of the car. As you may have read, the new Arona is one of three vehicles from the Volkswagen group that has a slight design flaw affecting the central rear seatbelt.

The problem, identified by a Finnish motoring magazine, could see the belt spring open while the car is changing lanes and travelling at speed – and would only occur if all three of the rear seats were being used.

Apart from the Arona, the other two models affected are the car’s smaller Seat sibling, the Ibiza, and the new Volkswagen Polo.

When the story broke, Seat issued a statement saying: ‘We have identified the seatbelt issue that Tekniikan Maailma [the name of the Finnish magazine] has found. We are currently investigating the repair options.’

A quick email to the manufacturer’s press office established that while there was no recall in place just yet, ‘we advise that the middle seat, when the other two seats are occupied, isn’t used’.

Putting that niggle to one side, what else is there to say about KM67 XUU this month?

Well, everything is working exactly as it should, and very impressively too, but one thing I have noticed is that its clock seems to be a bit confused at times. Occasionally, it thinks it’s somewhere an 96 | CarDealerMag.co.uk

The ability to charge a mobile phone wirelessly is just one of the Arona’s clever hi-tech features

THE KNOWLEDGE Model: Seat Arona XCELLENCE Lux Price (as tested): £22,095 Engine: 1.0 TSI six-speed manual Power: 113bhp Torque: 200Nm Max speed: 113mph 0-60mph: 9.6 seconds MPG (combined): 56.5 Emissions: 114g/km Mileage to date: 2,962 THIS MONTH’S HIGHLIGHT Appreciating all the clever tech the Arona has on board to make life easier. hour behind the UK. The car can’t be hankering after its Spanish homeland – last time I checked, Spain was an hour ahead of us. The clock does seem to correct itself after a while, but it could fool you into thinking you had more time at your disposal than you actually do.

Just below it on the centre console is a feature that’s proving a real boon – the wireless phone charger that our Arona is equipped with.

Simply pop your device into the storage tray and a little message will appear on the infotainment screen to let you know the battery is being topped up.

Very handy – but you do need a modern phone with Qi technology to take advantage of it.

That storage tray, incidentally, really is a little bit of design genius – and it’s no doubt one of the many clever touches that led to the Arona winning the Best Product Design 2018 accolade in this year’s prestigious Red Dot Award design competition.

OTHER CARS WE’RE DRIVING

Volkswagen Amarok Mileage: 7,220 ‘Big Blue’ has come to the end of the road with us – yes, the Amarok has gone back to Volkswagen.

It’s been an excellent six-month adventure, involving snow, mud and everything in between.

BMW M240i The BMW M240i is very powerful – but is there more to this sports coupe than outright performance?

by JACK EVANS @jackrober

B

ack when I passed my driving test, I remember the constant horsepower question. Among my group of friends, the thought of a 150bhp Golf or – when we were dreaming really big – a 180bhp BMW 3 Series was almost beyond consideration.

Anything nudging 200bhp was simply too much power to imagine.

I can think of when the halo car for our group was released – the Mk4 Volkswagen Golf R32.

It featured just under 240bhp and was quite possibly the most powerful hatch ever produced.

It wasn’t, but that’s what it felt like to us.

Which brings us to the M240i. This is a relatively mundanely styled, easy-to-live-with coupe with four seats, a boot and even heated seats. Yet, when you look at the car’s power outputs, its 3.0-litre turbocharged straight-six petrol produces 335bhp. Yes, 335bhp. That’s close to 100bhp more than the R32.

Now, I know modern supercars put out a lot more power than this, but the M240i isn’t a supercar – it’s quite a normal sports car. You can use it to go to the shops, and you can get the interior temperature just as you want it without having to navigate a dashboard that looks like it came straight from a commercial airliner.

However, once you’re done pootling around town, you can head out to the countryside and –

When you let its six-cylinder sing, the M240i transforms into a fiercely quick thing

more importantly – proper British B-roads. This is something I did recently – both the pootling and the country roads.

When you do let that six-cylinder sing, the M240i transforms into a fiercely quick thing. It’s impressively free-revving and can easily be left in third gear and dragged out. Not for too long, mind you, or you’ll very quickly be explaining yourself to Mr or Ms Police Officer.

It corners beautifully, and though some of the engine note is artificially generated, the vast majority of the racket coming from the 3.0-litre up front feels organic enough. You can lock the excellent eight-speed automatic in full manual mode and shift via the steering wheel-mounted paddles too, with cogs clicking into place with guillotine-like efficiency. Then, once you’re done,

it’ll happily settle back into all-automatic mode.

Seeing as this car comes as a more powerful update on the also very good M235i, it’s not unimaginable that the model that replaces this one will be knocking on 400bhp’s door. That is, again, a huge amount of power for a regular road car – but I can certainly see it happening.

If I were developing the next incarnation of this, is there anything else that I’d change?

The ride, for one. Unfortunately, it lies just on the firm side of things for me, making driving around town a little uncomfortable. It also means it can feel a little unsettled on poorer-condition country roads – which is where this car is meant to be driven.

Living with the M240i is a reminder of just how far we’ve come – particularly in terms of horsepower. Of course, outright pace isn’t the be-all and end-all, but the BMW really does show which way regular sports cars are heading.

THE KNOWLEDGE

Citroen C3 Aircross

Ford Kuga

Mileage: 6,919

Mileage: 5,422

The C3 Aircross performed superbly on a recent trip to the beach and managed to fit in everything you need for a proper day out. Its quirky styling is great, and the ride makes it ideal around town.

The Ford Kuga coped well when thrust into video team life, providing ample space for Zaak and all his camera equipment. It’s easy to see why it’s still one of the most stylish small SUVs on sale today.

Model: BMW M240i Price (as tested): £39,240 Engine: 3.0-litre six-cylinder Power: 335bhp Torque: 500Nm Max speed: 155mph 0-60mph: 4.6 seconds MPG (combined): 40 Emissions: 163g/km Mileage: 6,880 THIS MONTH’S HIGHLIGHT: Being reminded of just how far we have come in terms of brake horsepower.

CarDealerMag.co.uk | 97

The last word JA M E S B AG G OT T

Against our better judgment, we give our CEO the final say each month

I

Who will want to buy a car when subscribing opens so many doors?

f you’ve never heard of Generation Rent, well, you’ve probably had your head stuck in an over-polluting Volkswagen engine, because their time is now. In fact, you’re probably even one of them. Yes, you might own your own house, but I bet that’s about it – the rest is probably borrowed, rented or streamed, and that’s not going to change any time soon.

Remember when you used to buy records, tapes or CDs? Those days have gone. Now, no one even cares if their new car has a CD player, as all their music is streamed via a phone.

Even owning music digitally on a phone or computer has become obsolete. Gone are the days you’d download a track for 59p from the iTunes Store, replaced instead by a bottomless pit of music on demand from Spotify, Apple Music or that other one owned by a rapper that no one uses.

I found my old iPod the other day and my seven-yearold daughter asked what it was. ‘It’s what people had before iPhones,’ I told her.

‘How does it take pictures?’ she asked, before I gave up on the futile history lesson. Who would have thought a gadget as revolutionary as the iPod would ever seem so obsolete?

We don’t even rent movies any more.

Remember Netflix started as LoveFilm – a DVD and video borrowing service that sent you movies through the post.

And before that, you’d pop down to the local Blockbuster to pick your choice of movie for the night and hope that they had enough discs in stock.

Just think about that now. Can you imagine not being able to watch the film you wanted to because 30 other people had got in before you? Sounds ridiculous, doesn’t it? But it wasn’t even that long ago – just four short years, in fact.

Change happens quickly. And don’t think it’s not coming to a dealership near you soon. At CDX this year we spoke long and hard about the changes afoot in dealerships up and down the country. From digital dealerships and online car sales to the next big thing in the finance world.

But there was one thing that we only touched on, something that could appeal to Generation Rent like no other: Subscription car ownership.

Brands have tried it before in the UK. Peugeot and Volvo dabbled, but the market wasn’t quite ready – but now I think it is, with buyers used to renting now ripe for an offer that

suits their needs. Picture this: The customer doesn’t know what car to buy. They want something sporty but practical, they want boot space for family holidays but also top-down motoring for sunny drives home from work.

They want two-seat fun but sometimes need seven-seat practicality. Well, they’re not going to get that on a standard PCP deal, are they?

But what if for £500 a month they had access to all that? Every car in your brand’s range made available to them as and when they wanted it with 24 hours’ notice, delivered to their door with no questions asked. Do you think that would appeal to some people?

Of course it would!

It’s already taking hold in the States. Mercedes is the latest brand to enter the market with its Collection programme.

For around £800 a month, subscribers get access to pretty much the entire Mercedes range, including the brand’s AMG models. They can book the cars via a smartphone app and they’re delivered by a concierge service to their home with no mileage restrictions to worry about.

Mercedes isn’t the only one doing it in the States – BMW, Porsche and Cadillac all offer similar schemes and they’re growing in popularity.

The services also offer manufacturers an answer to an increasing conundrum too – with cars getting more reliable, the replacement cycle gets longer, and when buyers don’t want to change cars frequently, car manufacturers can struggle. A regular stream of cars to swap into helps all that.

It might not have struck a chord with UK car buyers just yet but it’s only a matter of time before it does. And where does that leave car dealers? Will they simply become elaborate car hire firms, stocking huge numbers of cars for manufacturers, or will there still be a large number of people who still want to own their cars?

If you look at the music or movie markets the signs certainly don’t point towards an ownership model. How dealers fit into this inevitable transition from buy-it to rent-it car ownership remains to be seen, but ignoring the change could be suicide. Just look at what happened to Blockbuster – it came out of the blue, thick and fast. Let’s hope the same doesn’t ring true for the car industry.

‘Gone are the days you’d download a track for 59p from the iTunes Store.’

James Baggott is the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us.

98 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 99

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100 | CarDealerMag.co.uk