Car Dealer Magazine: Issue 126

ROAD TO LE MANS: CAN FORD’S FIESTA CUT IT ON A TREK THROUGH FRANCE?

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Issue 126 | September 2018 | CarDealerMag.co.uk | £5

BMW’S F O N IO S R E V P O DRIVEN: DROP-THYBRID ARRIVES AT LAST HEAD-TURNING

GUIDE TO THE AFTERMARKET L YOUR ESSENTIA ROUND-UP OF WORKSHOP NEWS

INTERVIEW: : WHY VAUXHALL BOSS ING WE’RE DOWNSIZ

S W E N C I T S A T VAN S, ROAD TESTS SALES STAT OPINION AND INDUSTRY PAGES IN FOUR PACKED

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P U E N I L A D N O WHAT A HSE MOTORS THAT HAVE

CLASSIC JAPANE ERS DOWN THE YEARS DELIGHTED DRIV

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Editorial HEAD OF EDITORIAL Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @believebecca

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

FEATURES EDITOR Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

STAFF WRITER Ryan Hirons

ryan@blackballmedia.co.uk Twitter: @RyHirons

STAFF WRITER Tom Wiltshire

tom.wiltshire@ blackballmedia.co.uk Twitter: @mctreckmeister

Advertising SALES MANAGER Jon Hickey

j.hickey@blackballmedia.co.uk Twitter: @cardealerjon

ACCOUNT MANAGER Michelle Searle

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Suits CEO, BAIZE GROUP James Baggott james@thebaize.com Twitter: @CarDealerEd

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors John Bowman, Jess Ernerth

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Welcome.

IF YOU’VE been living under a rock then you might not have heard, but the economic landscape is changing. It’s all over the news.

Every paper you pick up has doom and gloom about the government’s latest Brexit move or changing buying habits to fill your heart with dread – and here in the trade press we’ve not been much better.

We like to think we have our heads screwed on at Car Dealer Magazine and can look at any given situation with a careful eye to help you make sensible business decisions for your dealership.

This month it has felt as if the sun is finally shining on retailers, with reports that the hot weather has loosened people’s purse strings. Fortunately, this was reflected in car sales too, with 163,898 cars registered in July – up 1.2 per cent. July is always a slower month as Brits choose to enjoy the sunshine or head abroad for a break.

It’s still nice to be able to say that the market grew, though. After months of falling figures, to see something positive feels good.

While the figures might look a little brighter, we’ve seen the usual reports from many that the sun has been keeping shoppers away as they choose to enjoy the weather rather than spend time at dealerships. It’s to be expected at the start of the summer holidays, and we expect the sun will keep forecourts a little quieter for the foreseeable future.

If you’re feeling that times are tough, two new sections in this magazine should offer up some ideas about how you can make more money.

We’ve seen that used cars have created huge opportunities for dealers to increase their sales volumes and increase bottom lines, but where else could you be focusing your efforts?

It’s no surprise that aftersales add-ons are a terrific place

to make money for generally little expense. We’ve featured many businesses before that offer fantastic solutions, but to give you a wider view of this part of the industry we’ve introduced the Aftermarket section, which you can find on pages 64 and 65 of this edition of the magazine.

We’ve also got a new section that looks at vehicles larger than the average ones tested within these pages. You’ll have seen on the front cover that we’re adding van news and reviews to our repertoire.

You can find this section from p60 to 63, with information about how choosing to sell LCVs could give you another product line and market.

I won’t reveal everything we’re talking about, but there are huge opportunities in both these areas of the market, and those who seize them could reap massive benefits.

If there’s one car that has been a huge success for dealers, it’s the Ford Fiesta. In this month’s magazine you can read how Jon Reay celebrated the new model in style, by taking it on a mammoth road trip so it could pay a visit to its big brother, the GT supercar, at Le Mans.

Jack Evans has also been paying homage to Honda’s collection of classics, with a look back at some of the cars that have won it legions of fans over the decades.

Finally, in a huge moment for this magazine, we’ve been allowed back into Vauxhall’s Griffin House – conveniently as it’s about to be sold. New man in charge Steve Norman sat down with me to talk about his new strategy for the brand and how Vauxhall has gone from being in the red to profit for the first time in almost two decades.

Enjoy the issue.

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

Intelligently connecting people to their next vehicle Codeweavers provides you with the ability to sell more cars by using our range of beautifully tailor-made solutions, which include: Finance calculators Lead generation tools Online car retailing solutions Powerful quoting Multi-lender systems Online vehicle reservation

For more information on how we can help you sell more cars online, email info@codeweavers.net with the subject line ‘CarDealer Mag’ 04 | CarDealerMag.co.uk

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £49.99 subscription

Hyundai Kona Electric Tom Wiltshire tries out an electric car with a mightily impressive range

All the latest news from Lookers’ Electric Charge

ISSUE 126 I SEPTEMBER 2018

Dashboard.

The Big Picture More From Leasing Around the UK Used Car Awards Rebecca Chaplin Big Mike Around the World Feedback Finance

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Features.

Honda legends French fancy in a Fiesta

Data File.

The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock

Forecourt.

BMW i8 Roadster Kia Sportage Hyundai Kona Electric

38 40 41

Real Deals Market Insight Long-termers James Baggott

42 46 58 60 64 66 68 70 72 73 79 82

A trek through France to the bright lights of Le Mans

Van that boasts a great Kombination of features

Our events...

As voted for by dealers, Car Dealer Power is unique. Details of our 2018 winners are online at bit.ly/CDP-18. Watch this space for news of the 2019 event !

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Get involved in this year’s event – and find out more on pages 22-23.

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

It’s all over for 2018 – but we’ll soon be revealing our plans for 2019.

CarDealerMag.co.uk | 05

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THE BIG PICTURE

Goodbye wing mirrors, hello live camera screens

06 | CarDealerMag.co.uk

A look at executive cars in this month’s Deal Finder.

Finance, p34-37

Blind spots become a thing of the past as drivers will get a clear view of the traffic on either side of all-electric e-tron

A

udi has offered a glimpse of the technology inside and outside of its all-electric e-tron concept sport utility vehicle.

The company has revealed a closer view of its previously-announced virtual wing mirrors, which do away with the traditional way of seeing what’s going on behind you.

Blind spots are made a thing of the past with the new solution, as drivers are offered a full view of traffic on each side, via two live screens under the windows.

The e-tron also flashes yellow warnings on the screens whenever another vehicle is getting too close on the relevant side.

Audi’s latest EV effort is focused on using a

recuperation system – not only when the car is already moving but also when it brakes, so that nearly all normal braking manoeuvres feed energy back to the battery.

The concept is able to go from zero to 60 miles per hour in under six seconds. Outside of the vehicle, you will also find electronic flaps for the two DC and AC electric charging points that open and close automatically.

Elsewhere, Audi’s concept car offers live 360-degree footage of its surroundings that the driver can navigate around on a touchscreen – although the company is keeping this feature under wraps for now.

The all-electric Audi e-tron SUV is expected to be officially revealed later this year.

CarDealerMag.co.uk | 07

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MANHEIM POLL

Survey reveals dealer confusion over WLTP

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ealers are confused about the forthcoming Worldwide Harmonised Light Vehicle Test Procedure, according to new research

by Manheim. Results from its latest dealer sentiment survey have revealed that more than a third of dealers (35 per cent) aren’t aware that the procedure governing emissions comes into force on September 1.

In addition, nearly two-thirds (61 per cent) of dealers aren’t up to speed with the timetable for the roll-out and are unclear on what the new testing means for new cars after the deadline.

WLTP is a new protocol to measure vehicles’ fuel consumption, CO2 and pollutant emissions.

The procedure was developed by the United Nations Economic Commission for Europe to replace the New European Driving Cycle (NEDC), which has been in use since the 1990s.

One of its key aims is to better align laboratory test results with realistic vehicle usage, based on current engine technologies. WLTP also aims to

A more aggressive look and some racy additions

by TRISTAN SHALE-HESTER @tristan_shale

harmonise test procedures on a global level, to create an equal playing field in the market.

The sentiment survey is conducted monthly among Manheim’s independent panel of dealers and receives approximately 240 responses.

In a wake-up call for the market, just under half of the dealers polled (47 per cent) believe the new procedure is creating supply shortages, while the rest are experiencing little or no impact.

The survey also revealed that almost nine in 10 dealers (86 per cent) believe there will be tactical registrations ahead of the deadline. Philip Nothard, Manheim’s head of external relations, said: ‘The response to these questions is startling.

The fact that a third of dealers are saying they are unaware of WLTP should be of grave concern to the government and manufacturers.’

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

* Unique motors users per month. Gumtree internal data warehouse, three-month average, August 2017–October 2017 ** Unique motors users per month. eBay internal data warehouse, three-month average, August 2017–October 2017

08 | CarDealerMag.co.uk

SEAT LIMITED EDITION

SEAT has revealed the Leon ST Cupra Carbon Edition, which gains some extra carbon bits for a more aggressive look — plus some racier mechanical additions.

It’s available in just one colour, Monsoon Grey, and can be identified by genuine carbon-fibre front and rear diffusers, along with side blades made from the material.

There is also a full set of Brembo brakes housed in 19-inch alloy wheels on all four corners, while inside the car there are Cupra bucket seats as standard.

As for performance, that’s unchanged from the standard Leon ST Cupra — its 2.0-litre turbocharged four-cylinder engine delivers 296bhp and 380Nm to all four wheels via a six-speed DSG gearbox.

CARSHOP

Charity given a £10,000 boost E xecutives from CarShop have tackled a variety of outdoor challenges to raise money for the company’s charity partner.

Travelling to Edale in the Peak District to ‘Challenge the Wild’, the team embarked on a busy seven-hour session of activities.

These included a nine-mile hike over varying terrain, climbing rock faces and abseiling down them, and crossing a canyon on a rope with nothing to help them but gravity and their strength – known as a ‘Tyrolean traverse’. Most of the party achieved the feat in less than a minute!

Money raised via the event – held as part of the CarShop Cares programme – will go to Make Some Noise, which is the official charity of media and entertainment group Global.

Jonathan Dunkley, chief executive of CarShop, the used car division of Sytner Group, said: ‘It was a great day that not only pushed us to our limits, but also raised a lot of money for CarShop’s charity partner, which does fantastic work.

‘The tremendous effort from the executive leadership team meant they met their goal of raising £10,000 for the charity and the total is still rising.’

The amount that the CarShop Cares programme hopes to raise for Make Some Noise is a substantial £80,000 – and it aims to reach that sum by the end of the year.

The charity supports small projects across the UK, all of which work to change the lives of youngsters and their families who are living with illnesses or disabilities or are experiencing a lack of opportunity in their lives.

Staff from across CarShop are embarking on their own challenges to ensure the £80,000 target is met, with every member of staff entitled to a

day in lieu to raise funds. Since the scheme began at the end of 2016, a huge £117,676 has been raised for Make Some Noise, with that figure getting bigger every day.

Pictured enjoying their time in the great outdoors are, from left to right, CarShop finance director Nick Roberts, commercial director James Dunkley, marketing and IT director Leo Nelson, people director Fiona Cottle, Jonathan Dunkley, operations director Kirk O’Callaghan and chief financial officer Brian Scott.

Two of the UK’s largest motor marketplaces have joined forces to create one powerful sales platform.

One listing on eBay Motors Pro now connects you with 6m* customers on Gumtree and 3.7m** on eBay. That means more eyes on your cars – and more opportunities to sell.

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CarDealerMag.co.uk | 09

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News from somewhere other than the UK

Around the World: p29

Harrison

MORE FROM LEASING

Do dealers have their hands tied on leasing?

Leaf blows the European competition away THE new Nissan Leaf is the best-selling electric vehicle in Europe for the first half of this year, the Japanese manufacturer has announced.

More than 18,000 of the zero-emission cars, which are produced in Sunderland, were registered in Europe between January and June. European customers

have now placed more than 37,000 orders for the new Leaf since it first went on sale in October 2017.

Gareth Dunsmore, electric vehicle director at Nissan Europe, said: ‘The momentum continues to build for electric cars. The new Leaf has transformed the experience of driving.’

Most young motorists say they’d be happy to use an app to buy a car

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otorists aged between 25 and 34 would be the most likely to buy a car via an app, according to a survey from automotive data and valuations expert HPI. Only 19 per cent in this age range said they wouldn’t consider buying a new car in this way and just over a quarter (26 per cent) wouldn’t consider an app purchase of a used vehicle.

The survey saw 1,003 motorists polled, with virtually a 50/50 male/female split, and of the motorists aged 65 and above, almost three-quarters (71 per cent) would never consider buying a new car online, while for used cars the figure was even higher at 76 per cent.

Wanting to kick the tyres was the most common reason for not buying a used car online, while fears of getting ripped off came in at number two. Almost one in five of those questioned said they’d never buy anything online at all, with one in six saying they weren’t comfortable with how their data might be used.

More than a third of those who wouldn’t buy a second-hand car over the internet admitted that it was because of a lack of consumer protection in the event of problems. The research found that men would also be more likely than women to 10 | CarDealerMag.co.uk

by TRISTAN SHALE-HESTER @tristan_shale

buy a car via a mobile app. Meanwhile, 13 per cent of those questioned had already bought a new or used car online without viewing it first.

Furthermore, while almost two-thirds of those who bought online had no worries about doing so, more than one-third did have reservations yet still went ahead with the ‘blind’ purchase.

Fernando Garcia, consumer expert at HPI, said: ‘It’s easy to see why consumers feel quite relaxed about buying a car without seeing it ‘‘in the flesh’’ first.

‘Virtually all car manufacturers have an approved used scheme in place that allows consumers to buy a used car with a long warranty, often providing the same peace of mind as when purchasing a new car.

‘The faith in these schemes is illustrated by our research.

‘Of those who would buy a car without trying it first, the majority would feel the most comfortable if the app was created by an official dealer or a car manufacturer.

‘If the app was developed by a thirdparty company, that peace of mind was much less evident amongst consumers.’

T

he most recent figures from the Finance & Leasing Association (FLA) show personal contract hire remains the fastest-growing form of consumer new car finance in the UK. Email inquiries via our own leasing marketplace mirrored this upward trend, growing 44 per cent during the first half of 2018, as consumers favoured email contact rather than phone calls with salespeople.

But while personal leasing is now more popular than traditional hire purchase agreements, it still lags some way behind the dominance of personal contract purchase (PCP). However, does it stand a chance of matching PCP’s popularity?

Leasing has grown considerably in recent years, largely thanks to the growing number of high-quality brokers who specialise in contract hire products and savvy retailers who have spotted growing consumer demand and introduced offers to their suite of showroom products.

However, some franchise networks aren’t always incentivised to sell personal contract hire (PCH) deals in the same way they are with PCP deals.

While it’s true that contract hire has its roots in the very different fleet sector and it continues to establish itself in retail, it is important that consumers are made aware of all their funding options when considering their next car.

It’s no secret that the Financial Conduct Authority has been looking into the motor finance market, and despite recent bad publicity in some areas of the mainstream media, the regulator’s findings did not support the dramatic tabloid headlines.

Far from it.

In fact, in March it found that growth in motor finance had been strongest among consumers with better credit ratings, arrears and default rates remained generally low, and lenders were adequately managing the risk of a fall in used car prices.

However, the FCA is currently still looking into conflicts of interest arising from commission arrangements between lenders and dealers, and whether they are appropriately managed and provide fair outcomes for consumers.

It’s often the elephant in the room in discussions about PCH, but when many manufacturers now lead with monthly lease prices in their TV and print advertising campaigns, which in turn generates consumer awareness and demand, it’s something that needs to be talked about.

‘Consumers need to be made aware of all their funding options.’

Paul Harrison is head of strategic partnerships at ContractHireAndLeasing.com

CarDealerMag.co.uk | 11

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News from around the UK

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

New recruits on board after refurbishment

VERTU Honda Derby is welcoming three new sales team recruits.

Andrew Kinsey and Vik Sandhu have more than 25 years’ experience in motor retail and Anne Robinson is starting her first role in the sector. Vertu Honda Derby is also celebrating the dedication of two staff members. Aftersales manager Jeffrey Rex has worked for 42 years, while general manager Peter Wileman has worked in the Derby area for almost 30 years. Vertu Motors recently spent more than £100,000 on refurbishing the site.

HAMPSHIRE

Hendy renews links with women’s cricket team

HENDY has renewed its partnership with the Hampshire Southern Vipers women’s cricket team.

The dealer group has joined forces with the players for the third consecutive season, strengthening its

CANTERBURY

CHISWICK

Motorline delighted to acquire East Kent Audi

Dealer group launches electric taxi franchise

MOTORLINE Group has added Audi to its offering after buying the East Kent branch from Inchcape.

There is now a total of 53 Motorline dealerships in the UK, as well as four Trade Parts Specialist centres.

The group employs more than 1,650 staff and has an annual turnover of nearly £800 million. Glen Obee, chairman of Motorline, said: ‘We are especially pleased to have acquired the business in Canterbury, which is where our business was founded by my father, Tom Obee, in 1972.’

12 | CarDealerMag.co.uk

ONE of the UK’s largest Volvo dealer groups has launched an electric taxi franchise. Endeavour Automotive has operated Volvo dealerships in and around London since 2014, and is now also selling the London EV Company’s TX vehicle in Chiswick.

Endeavour said it decided to become a franchise holder after seeing the popularity of the new taxi with passengers and drivers, as well as the level of support from national and local government for the electric taxi project.

commitment to support sports initiatives across the south. As part of the deal, the Vipers have received new sets of Hendy-branded kit and two cars to transport them to and from training matches.

Top-selling cars in July July 2018

Source: SMMT

Ford Fiesta 6,222 Volkswagen Golf 5,582 Volkswagen Polo 3,847 Vauxhall Corsa 3,670 Nissan Qashqai 3,470 Audi A3 2,867 Mercedes-Benz A-Class 2,840 Ford Kuga 2,776 Volkswagen Tiguan 2,687 Kia Sportage 2,442 The statistics, p58

ST ATHAN

Second phase of new assembly plant finished

ASTON Martin has completed the second phase of its new car assembly plant at St Athan. The board of directors held their first meeting at the Glamorgan site to mark the completion of building work there, which is seeing the conversion of three super-hangars at the former RAF base into a state-of-the-art plant. Directors and shareholder representatives of the producer of luxury handcrafted sports cars were briefed on the progress of the scheme.

The bizarre cases handled by Lawgistics.

Car Dealer Club, p66

KENDAL

ROCHDALE

CROYDON

Work completed on £4.1m JLR dealership

Cartime’s expansion will create 25 jobs

New Vauxhall site is looking just fantastic!

BUILDING work on a new Kentdale Jaguar Land Rover showroom in Kendal has been completed.

The £4.1m project by Caddick Construction for family-run dealership JF & E Hadwin Ltd began last September and saw the existing JLR showroom, which is on the corner of Shap Road, significantly upgraded and expanded. The site now boasts increased showroom and workshop space, while the area for staff and customer parking has been increased as well.

CARTIME is driving forward its expansion plans after exchanging contracts on a new showroom site in Rochdale. The deal, which marks a £1.6 million investment for north-west England’s biggest independent used car dealer, will see the creation of 25 jobs. The 1.6-acre site in Edinburgh Way will be its second sales operation, alongside its dealership in Bell Lane in Bury.

Cartime will spend £500,000 on transforming the Aldi supermarket that is currently on the site.

‘I engaged the assistance of a local Jaguar specialist to ensure the big cat would keep purring smoothly . . .’

Big Mike, p27

VAUXHALL has opened a new site in south London. Go Vauxhall, Croydon, has been specially designed with the customer in mind.

The dealership features a modern showroom, the ability to service larger commercial vehicles and extra service bays that double its workshop capacity. Tim Pickering, group operations director at Go Vauxhall, said: ‘It’s a really exciting time. Our new state-of-the-art retail site looks fantastic and I’m sure our customers will agree.’

MANCHESTER

An alternative way to explore the Ford range

FORD has launched a new retail experience in the Next store at Manchester’s Arndale shopping centre. It provides an alternative environment for consumers to browse, finance and order vehicles directly from Ford Motor Company, outside of the dealer network. Five vehicles are on display, including the Mustang and all-new Fiesta ST. Customers are provided with a relaxed environment in which to explore the Ford range and find the car of their choice.

BRADFORD

Suzuki dealership that’s a victim of its own success!

COLIN Appleyard Cars has opened its latest Suzuki dealership with a 12-car showroom, five-bay workshop and 30-car forecourt in Bradford. The success of the branch forced a relocation from its old site in the nearby town of Shipley to the newer and larger location. The team from the dealership were joined by local business representatives, Suzuki GB and the lord mayor and lady mayoress of Bradford for an official opening.

Managing director Robin Appleyard said: ‘The need for this move has been on the cards for some time. You could say we have been the victim of our own success! Not only will it help to heighten the company’s profile in West Yorkshire but it will also greatly enhance our customers’ buying and aftersales experience.’

First drive BMW i8 Roadster Soft-top version of iconic hybrid sports car is put through its paces Forecourt, p38 CarDealerMag.co.uk | 13

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You can offer your customers an alternative way to pay that is fair, transparent and meets their needs. Plus, we offer expert guidance through the regulatory world, allowing you to build your business with confidence.

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It’s the industry’s biggest party of the year!

Used Car Awards, p22-23

FUNDING

Musk talks to wealth fund about taking Tesla private T esla boss Elon Musk has said he is in talks with the Saudi Arabian sovereign wealth fund about taking the electric car and solar panel maker private.

Musk said in a blog that most of the funding would be in stock rather than debt, although he added that no deal had yet been finalised.

Investors who do not want to stay with a private company would be paid $420 (circa £329) per share.

Musk said he expected that onethird of shareholders would sell.

The tycoon said he left a meeting with wealth fund officials on July 31 with no question that the deal could be closed – which is why he tweeted on August 7 that funding had been ‘secured’.

Musk wrote that since August 7, the fund’s managing director had expressed support subject to due diligence. His announcement on August 7 caused the company’s stock to spike.

by REBECCA CHAPLIN @believebecca

That tweet came hours after the Financial Times reported that the sovereign wealth fund had built a significant stake in Tesla, but it was unclear at that point if that was the funding to which Musk was referring. Soon afterwards, Tesla’s shares were up more than five per cent at more than $360 (circa £278).

The price of $420 would be up 22 per cent on the closing share price of August 6, and nearly nine per cent above the stock’s all-time closing high of $385.

His tweet was followed by another sharing a post from the car maker’s blog, explaining why he was considering this move.

The post read: ‘The reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are

subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders.

‘Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term.

‘Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.’

Musk’s tweet came two weeks after Tesla revealed it had burned through $739.5m (circa £571m) in cash on its way to a record $717.5m (circa £554m) net loss in the second quarter, as it cranked out more electric cars. Tesla has spent millions

as it reached a goal of producing 5,000 Model 3 sedans per week by the end of June.

The company says production is rising, with the goal of 6,000 per week by the end of August.

Musk, pictured above, pledged earlier in August to post net profits in future quarters, and said he expected the company to avoid returning to the markets for capital and to be self-funding.

‘The reason for doing this is all about creating the environment for Tesla to operate best.’

Elon Musk

We’re gaining momentum, says Pendragon CEO

Dealership delight at four-star award

PENDRAGON PLC’s half-year results ending June 30 show profits before tax fell by £20.1 million to £28.4 million owing to the performance of its UK motor division. Group revenue was down 0.9 per cent like-for-like but up 0.2 per cent in total.

Used revenue was down 0.9 per cent like-for-like (up 1.2 per cent total), while gross profit dropped 16.1 per cent like-for-like (down 14.3 per cent total).

New vehicle revenue fell 1.7 per cent like-for-like (down 1.6 per cent total), outperforming the market as a whole, which was down 6.3 per cent. Gross profit was down six per cent like-for-like (down 5.9 per cent

MG MOTOR’S parent company has awarded its prestigious Four-Star Overseas Dealer Award to Panda Motors Swansea.

The Welsh dealer won the SAIC Motor award thanks to its excellent customer service and strong sales performance.

Panda Motors was appointed as Swansea’s main MG dealer in 2016 and has continually exceeded its sales targets since then. This year it achieved a whopping 102 per cent increase on its target.

Dealer principal Anthony Jones said: ‘We are delighted to receive this prestigious SAIC Four-Star Overseas Dealer award.’

16 | CarDealerMag.co.uk

total). Aftersales were also down 2.4 per cent like-for-like (down 2.3 per cent total), while gross profits were down 2.7 per cent like-for-like (down 3.2 per cent total).

However, the company announced plans to double its used car revenue by 2021, having appointed an experienced used car director to manage the operation of its used Car Stores, opened Car Stores in Norwich, Shrewsbury and Ipswich, opened two used car refurbishment centres with plans to add another two this year, and closed in-house refurbishment centres at Car Stores.

The firm’s US motor group saw its first disposal of a US franchise. Back

in the UK, the company released £26 million by selling four premium brand franchises. Pendragon also further rolled out its Software As A Service licences around the world.

Trevor Finn, chief executive of Pendragon, said: ‘We are gaining momentum as we lead the transformation to fully online used car retailing. This will give us greater self-determination and deliver more reliable, sustainable earnings.

‘Our industry-leading software company gives us unique technology and expertise to reformat our business model. We are also continuing to reallocate our capital into higher return areas to increase shareholder value.’

Dashboard.

Do you give discounts to customers?

Feedback, p30-31

A GRAND TOUR

It’s captured everyone’s imagination!

We celebrate the Lookers Electric Charge and discuss the future of motoring with Lookers Chief Operating Officer Nigel McMinn.

L

ookers is now into the second half of the Lookers Electric Charge, which sees a relay of electric and hybrid vehicles travel 2,000 miles to all 154 of the retailer’s franchised dealerships, where all sorts of fundraising events are being held in aid of motor industry charity Ben. Representing this year’s Industry Leader Challenge, the baton was handed over to Lookers Chief Executive Andy Bruce at the end of last year and has since been grabbed with both hands by the entire group.

Currently travelling through the midlands, staff from dealerships including BMW Stafford and Vauxhall Selly Oak will be completing everything from carpool karaoke challenges to dressing up as the craziest characters they can think of.

Other regions have seen the involvement of the Super Mario Brothers, the entire cast of The Avengers and even Bill and Ben the Flowerpot Men, so the possibilities are endless.

It’s an epic challenge and, although it’s far from over, one that Lookers chief operating officer Nigel McMinn, pictured below right, is already celebrating as a huge success.

Hi Nigel, the Lookers Electric Charge seems to have created quite the buzz around the group.

Has it gone as well as you had hoped so far?

It’s gone really well and seems to have captured the imagination of our fantastic team across the UK and Ireland. The workplace posts have been really funny and the creativity of our people has been amazing! The engagement on social media throughout the wider industry has also been brilliant. A big thank you to all our staff and partners for helping to make this happen.

Were you excited to get the chance to raise money for Ben? Yes, it’s a great cause that’s not widely understood. It’s operated by the motor industry for the motor industry and seeing first-hand the great work they do to support people who work in the automotive sector and their families in their hour of need is humbling. So it’s been a great opportunity to raise its profile.

Hosting the challenge over a number of months is unusual, what benefits do you think this has had?

I think it’s given us the time and space to really promote all aspects – electric and hybrid engine development, Ben’s services, the subject of carbon

The team at Ellesmere Port Vauxhall join in the fun

offsetting – something that has been a big feature of the relay, as well as our great network of Lookers dealerships.

Carpool karaoke has been a big feature of the challenge. Have you had a go and do you think you would make it to the X Factor boot camp?

Yes, it’s been a central part of the challenge and a consistent theme. Myself and group financial controller Simon Atkinson did attempt a pretty poor rendition of Electric Avenue, our theme song for the challenge. I don’t think we’ll be winning any prizes! My favourite is still the Dublin Used Direct guys who kicked off the tour and sang their version of the song dressed as Batman and Robin!

Why did Lookers focus on electric cars for the challenge?

It’s going to be a revolution in our sector. Within 10 years the majority of all new cars on the road will be electric or hybrid so it’s interesting to see where we are starting from now. Being aware of the environment and utilising environmentally friendly power

sources and sustainable materials is essential to the future of our industry.

What is your personal opinion of electric cars and where the industry is positioned at the current time?

It’s just starting to become a seriously impressive powertrain. With the Jaguar I-PACE and Audi e-tron beating Tesla at their own game and with ranges of over 300 miles and fast charging of up to 80 per cent in 30 minutes, it is now a more than credible alternative to petrol or diesel.

Which electric car would you choose to own and when do you personally think you’ll be ready to become an electric car owner?

I drove a Nissan Leaf for six months when they first arrived in the UK, so I would happily have a Jaguar I-PACE or an Audi e-tron and probably will actually.

What do you think are the main barriers stopping people from going electric?

The main barriers have been range, charging infrastructure and lack of choice. All that’s changing rapidly now.

You can follow all the action from the Lookers Electric Charge at LOOKERS.CO.UK/EC4BEN, the Lookers YouTube Channel LookersWebTV, and Lookers’ Facebook and Twitter pages @lookersgroup, all of which use the hashtag #LookersEC4Ben. CarDealerMag.co.uk | 17

Dashboard.

INTERVIEW

A smaller network, yes, but one that will be stronger Pre-reg and dealer numbers down; van sales and profitability up. Rebecca Chaplin meets Vauxhall boss Steve Norman to discuss his vision for the future.

I

n the future-facing automotive industry, with new tech and processes arriving almost every day, it feels very unusual to be visiting a building that seems to be something of a throwback. In fact, it’s a beige, 1970s box just off the M1, with little distinguishing it from the gloomy skies above.

It might be a Monday morning, just after 9 o’clock, but it doesn’t really feel like the start of a busy working week at all.

I’ve arrived at Griffin House, Vauxhall’s HQ in Luton, Bedfordshire. I’m being escorted into the premises and feel a bit of an imposter as I sneak under the barriers – but had I arrived alone, I’m not sure anyone would have noticed.

If you ever went into school after-hours or during the holidays for some reason, you’ll know what I mean. I’m not being too harsh on Vauxhall; it actually is the school holidays after all and the brand will shortly be vacating the property – quite a symbolic event as the company is engulfed by the PSA Group.

The setting feels like an old polytechnic, and I certainly feel as though I could be in trouble for not completing an assignment of some sort.

I’m ushered into a conference room, and someone here has definitely been doing their homework. Prominent on the wall is a presentation slide that says: ‘Vauxhall Motors, Rebecca Chaplin, Car Dealer Magazine.’

In walks Steve Norman, who’s been managing director of Vauxhall Motors in the UK and Opel Ireland since February. Small in stature, he looks out at me from behind glasses, reaches for a handshake and politely welcomes me before taking a seat in this equally beige room.

Outside lies bleak Luton, but our immediate 18 | CarDealerMag.co.uk

surroundings are brightened by Union Jacks festooned with various pieces of marketing material. Vauxhall might be a company that’s twinned with a German, has been sold by the Americans and bought by the French, but it’s not forgotten its British roots.

Our interview today starts with a history lesson, and an important one for anyone in business – particularly those who might have forgotten just how volatile the automotive industry can be.

In the early-1980s, the company was third in the sales charts with a nine per cent market share compared with Ford’s 30 per cent and British Leyland’s 18. By the end of the decade the tables had turned in Vauxhall’s favour – thanks in part to both the failings of the Ford Sierra and success of Vauxhall’s Cavalier. Vauxhall was up to 16 per cent, Ford was down to 25 per cent and BL had dipped to 14 per cent.

‘You will observe the movement in the Vauxhall share is less significant than its competitors’. British Leyland [eventually] went out of business and Ford went from 30 to 11 per cent,’ says Norman.

An increase in demand for premium cars over the past 30 years has driven down the market share of many volume manufacturers. Vauxhall’s was just eight per cent at the end of last year.

It would be fair to say the tale of the Cavalier is a story that demonstrates how simple changes can make a big impact, and we saw it again earlier in July when Vauxhall and Opel announced their half-year results. Under the ownership of PSA and with Carlos Tavares at the helm, the company was back in profit for the first time in nearly 20 years.

Norman would be happy to see Vauxhall’s

‘We undercut our own prices, and there’s no logic in that at all.’

Your essential guide to the van market

Fully Loaded, p60

Steve Norman, left, is looking for more profit and volume from van sales in future

‘In the next two years for Vauxhall, the principal increase in profit will be vans.’

‘I have a little expression. You know how John Lewis’s slogan is “never knowingly undersold” – I say Vauxhall undersold itself.’

market share continue to be between 7.5 and 10 per cent, but the profit growth he wants will largely be driven by van sales.

‘In the next two years for Vauxhall, the principal increase in profit will be vans,’ he confirmed. ‘That doesn’t mean we’re going to go backwards on cars, but the increment in terms of volume will come from vans.’

We flick through a few slides, and Norman presents me with graphs and charts predicting the years ahead.

He’s matter-of-fact, and for someone who has headed up marketing for other manufacturers including Rover, Renault, Fiat and PSA – as well as a stint as Volkswagen’s MD and chairman for France – his words don’t strike me as spin.

‘I have a little expression.

You know how John Lewis’s slogan is “never knowingly undersold” – I say Vauxhall undersold itself,’ he says.

It’s true. Much of the criticism from the industry, and indeed this magazine, has been driven by the excessive preregistration and price-cutting from the brand.

‘Lack of marketingdriven demand for new cars [led CarDealerMag.co.uk | 19

Dashboard.

‘Carlos Tavares has a strong belief that pricing power precedes marketing change, as opposed to the other way around.’

Carlos Tavares

to the high level of pre-registration]. I mean, it’s a stopgap,’ said Norman frankly. ‘I estimate that pre-registration activity in the UK represents 16 per cent of retail car sales, and for Vauxhall it’s currently running at 21 per cent.’

That 16 per cent excludes Vauxhall from the total, he says, and by including it, the national average would rise.

‘As you know, Carlos Tavares has a strong belief that pricing power precedes marketing change, as opposed to the other way around. He’s used that to very good effect in Renault and Peugeot, is beginning to with DS, and with Opel and Vauxhall it’s much quicker.

‘When you buy a car that has a 12 to 14 per cent discount, you’ve already got a fantastic deal and, quite possibly, you’ll be beginning to wonder why that is – but if someone says you can have 25 per cent you’re not more likely to buy.

‘We undercut our own prices, and there’s no logic in that at all.’

To reverse the manufacturer’s fortunes, each of the UK’s Vauxhall dealerships will get the opportunity to become more profitable and increase the number of cars sold from 2020 – in 20 | CarDealerMag.co.uk

fact, Norman says it’s pretty much guaranteed.

However, this will come at a price for around 80 dealerships, as today’s 330 sites will become just 250, including satellite operations.

The announcement in April that Vauxhall would be terminating all contracts and renegotiating only some was an unusual move for a car manufacturer.

And as a few Vauxhall dealerships have since closed, one might be forgiven for thinking that Norman shouldn’t have given the impression that no-one would end up out of work.

‘We’re mixing up three different things here, and this is really key because we’re talking about humans,’ said Norman. ‘There is full employment today in the retail motor industry. There is a shortage of talented sales and technical staff.

‘We see movement within franchises on a daily basis in the UK and some brands have an annual movement of maybe 30 per cent of their staff between franchises.

‘Even if a retail outlet closes today, the people who work in that retail outlet – so long as they’re qualified – can find work in the retail motor industry tomorrow. That is the point.’

‘When you buy a car that has a 12 to 14 per cent discount, you’ve already got a fantastic deal and, quite possibly, you’ll be beginning to wonder why that is.’

Vauxhall will soon be vacating its headquarters building in Luton

He added: ‘Incidentally, two [that recently closed], Stafford and Wednesbury, were not related to us. These were related to performance issues. I see a lot of dealers now, and I was with three last week who said they were closing such-and-such business for such-and-such a brand. In fact, the attrition of Vauxhall, I think, is remarkably low when you consider what we’ve been through.

‘What I said, though, is that in the movement from 330 to 250 I do not expect the people who work in those sites to not be working in the motor industry tomorrow if that is their desire. But not necessarily for Vauxhall.’

The positive of this change for those who stay with the brand is that the number of retail sales through each franchise will increase from 290 to 415 a year. Actually, the 415 is on the black line and not the red line,’ adds Norman.

‘So there’s a further margin there. There are no guarantees in this industry, but this should give us a stronger network looking into the 2020s.’

Norman’s account of what’s gone on in recent months indicates that it wasn’t an easy process.

While the initial decisions were a numbers game

‘There are no guarantees in this industry, but this should give us a stronger network looking into the 2020s.’

based on which Vauxhall dealerships were ‘viable businesses’ for the future, Norman spoke to every dealer and has continued discussions with those few who were unhappy with the choice.

To fix the drastic pre-registration, he explains that there’s only one solution. ‘You can only do that as Volkswagen has by only producing the cars that are ordered. We will do that. Don’t write it as if I’ve said it’ll happen this year, it’ll take time but we will. It’s not a light-switch moment.’

Norman explains that he intends ‘to bring the amount of pre-registration activity that Vauxhall is involved in back to the national average excluding Vauxhall’.

Based on its total new car registrations from last year of 195,137, that would be a difference of almost 10,000 cars – with more than 30,000 remaining pre-registered by its dealers.

‘There’s a quantitative increase that’s largely vans,’ he added, ‘but the qualitative move means that we will reduce the amount of pre-registration activity that is mainly passenger cars – so it’s sort of a double movement.’ Pacing around the boardroom, Norman gazes out of the window, as if he’s given these figures so many times the

presentation is no longer required. This increase in van activity will require fresh infrastructure for the network. ‘We will be specialising our network of retail outlets into between 50 and 70 what we call business van centres.

‘These will distribute all of our volume of LCV, including to other retail dealers if they continue to sell,’ he says.

‘They will all have the right to sell. However, when it comes to aftersales, the entire network will be able to service the product.

‘It might seem a little old hat but we’re trying to have the best of both worlds – specialising the sales activity into 50 to 75 van business centres and leaving the servicing to all retail outlets.

‘We will not be requiring these van centres to invest in bricks and mortar.

‘This is very much soft standards in terms of training and specialised personnel.’

We’re just over a year into PSA Group leadership, with the first few months of Norman’s rule marking a key change in strategy, but is this really the first step to success for Vauxhall? As the doors prepare to close at its Luton headquarters, at least it wasn’t in the way we were all expecting. [CD] CarDealerMag.co.uk | 21

Used Car Awards.

WE’RE SUPPORTING DEALERS

COUNTING DOWN

How YOU could be a winner at the party of the year

At Black Horse we have a range of tools to help you meet the latest FCA requirements. With dedicated account managers we can help you create a transparent experience and deliver great customer outcomes.

A better way of doing business

W

ell, that didn’t take long! As soon as we launched the 2018 Used Car Awards in the August edition of Car Dealer the nominations started to flood in!

As you must know by now, the Used Car Awards is the glitzy event that gets the whole used car industry talking. Now in its seventh year, it has become THE awards ceremony for the used car industry, with winning dealers and sponsors proud to shout about their successes – and keen to have a party as well!

Make no mistake: winning a Car Dealer Used Car Award is a seriously big deal.

The awards celebrate and recognise all the different areas of this vital backbone of the motor industry. From the smaller independents to the larger

groups, every dealer who has an involvement with buying and selling used cars can take part.

This year, the awards ceremony will take place on Monday, November 26, and on the night we’ll be handing out gongs in a variety of categories.

If you reach one or more of the final shortlists, you’ll be invited to the event, to be hosted, as ever, by TV’s Mike Brewer and held at The Brewery, London.

You’ll be able to enjoy a great meal, free drinks and – if it’s your thing – plenty of dancing!

Don’t delay in entering for the 2018 Used Car Awards. Tickets and sponsorship packages always sell out fast, so inevitably we have to disappoint many of you when there isn’t any space left.

Don’t let that happen to you this year... after all, it’s the dealers’ biggest party of the year!

For the full list of categories and to fill in the online 22 | CarDealerMag.co.uk

FOR WHATEVER IS AROUND THE NEXT CORNER. Why you must be there The prestige: The Car Dealer Used Car Awards are sponsored by Black Horse and have become THE awards ceremony for the second-hand car sector. Winning a trophy can give your business a terrific boost because customers will know they’ll be getting high-quality service from you.

It’s priceless: But it doesn’t cost you a bean to enter the awards.

It’s quick and easy: You can enter online.

The variety: There are more than 20 categories to choose from, so you can play to your strengths to give yourself the best chance of success.

The glamour: The event is held at The Brewery in London – an amazing venue in a great location that’s small enough to give an intimate feel to the evening yet large enough to host a fantastic celebration.

Networking: The awards ceremony gives you the opportunity to rub shoulders with fellow motoring professionals and to make top contacts with people from across the industry.

The entertainment: With food, drink, cocktails and a disco all part of the package, the awards night is also the ideal excuse for a preChristmas party to put on expenses!

As industry regulation and customer trends continue to change, we’re here to help.

Discover more at: blackhorse.co.uk/abetterway

When is it?

The awards night takes place on Monday, November 26 and will be hosted by TV’s Mr Wheeler Dealer himself, Mike Brewer.

Simply go to carawards.co.uk to fill in the online nomination form – you can enter for as many categories as you like. Make sure that you give plenty of detail, though, to help our judges decide who should go on the shortlists, which will be drawn up by our judging panel, headed

by Brewer. The closing date for nominations is October 5.

If it’s tickets you’re after, we’ve got a great range of packages to suit all budgets. You can book tickets and tables by calling the Car Dealer team on 023 9252 2434.

So, what are you waiting for? Get your entries in and make sure those tickets are reserved! We look forward to seeing you at The Brewery on Monday, November 26…

nomination form go to carawards.co.uk

A better way of doing business CarDealerMag.co.uk | 23

“The iVendi 2018 Online Retailing Report�

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24 | CarDealerMag.co.uk

Behind the scenes REBECCA CHAPLIN

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

A balance is needed when it comes to physical sites versus websites

A

late-night journey back from the pub is always the best place to start for column fodder.

After our usual musing that we should move into the vacant lot on the roundabout near our office, set up our own car dealership and write about it for the pages of this magazine, Lord Baggott chimed in with a popular (or possibly unpopular) theory.

He was adamant – after a few pints, I’ll add – that today you don’t need a pitch at all. If your website is good enough, then you don’t even need to entertain the sales you might make from passing trade.

That’s all well and good, I said, but would everyone trust a dealer who tells them to meet them on an industrial estate at a certain time where they will let them view a car? And how many people don’t want the pressure of an appointment when they’re only in the very early stages of car shopping?

‘Who doesn’t look online when they’re buying a car these days? Seriously, who would buy a car without at least looking online first?’ garbled our illustrious leader.

It’s true, I thought. Despite the beer, wine and three types of cocktails that had passed his lips that evening, the man was talking sense. People don’t just see a car, walk in and buy it there and then any more, surely?

Even though I don’t want to buy anything unless it can arrive in a box four times its size with enough space for me to live in (if it wasn’t filled with plastic packaging), and for free thanks to my Amazon Prime membership, I still found myself wanting to disagree. For me, a forecourt is an important part of marketing a car, or at least the dealership itself, and building trust with customers.

Despite my penchant for old cars and distaste for anything practical, there have been several times I’ve passed a Ford or Skoda franchise and my eye has been caught by the monthly deals on some of their cars. Of course, I’ve had to Google the unbelievable offer immediately after. That’s then taken me to a completely different dealer’s website and I’ve still not bought the car – but it’s the thought that counts, right?

‘A lot of people want to go and snoop around the car on the forecourt without having the pressure of actually talking to a salesman,’ says the sober angel to my right, Jon Reay, who was

taking us on a tour of Gosport to get home. From the back seat, Baggott came back to life, having momentarily started to snooze.

‘It would have to be something pretty special to catch your eye, though. I’m talking about the times when you’d be out on a Saturday, see a car parked on the forecourt with balloons and all, then go in because you actually wanted to buy it.’

It’s got to be a balance, though, retorted Jon and I. There are plenty of businesses out there with no roadside presence but a spectacular website to compensate.

And you know what they do very well? They build into their website every element of a car dealership that helps to sell cars.

If you want to meet the sales team, you can see them, read about them or even watch videos from them, then follow them on Twitter, email or call them.

If you want to see where you’re going, many of the best dealerships out there have several photos of their sites, while some also use Google Maps’ Business View to give a 360-degree view of their showrooms, or even host video tours on their websites.

Why would you need to sneak around a forecourt after hours if you could see every angle and element of the car online?

Those barriers we talked about are being broken down. You might be going to an industrial estate in Milton Keynes next to a warehouse distributing gardening gloves, but the customer knows that when they arrive it’ll be a legitimate business.

Only one question from me remains: ‘How do I find that business in the first place, though?’

Why would I search for Bill’s BMWs and end up on its website rather than Matt’s M-Sport Emporium – or do we just accept now that being higher up on Google or promoted in someone’s feed is the only way to attract that passing trade?

Maybe we just need to accept that every buyer is different.

It’s fair to say that in this difficult economic climate, no-one should be writing off ways to sell cars, but adding expense for very little isn’t the way forward either.

‘Ouch!’ says Baggott, as we crash over a really big bump as he’d fallen asleep.

Maybe midnight isn’t the best time to start arguing about how to sell cars, but one thing’s for sure: it’s far better than talking about Brexit.

‘There are plenty of businesses out there with no roadside presence but a spectacular website to compensate.’

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 | 25

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26 | CarDealerMag.co.uk

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

N

It was an open-and-shut case of stupidity on my part!

o amount of experience of working in the motor trade can counter your own occasional brain fart, as I discovered just a couple of weeks ago while prepping a car for sale.

The car in question was a lovely Jaguar XJ6, a 2004 model with less than 100k on the clock and a history almost as impressive as the Valley of the Kings. Perfect retail fodder, especially in an environment where I find specialist vehicles are a much easier to sell than mainstream cars these days.

People who buy this kind of car are looking for one just like it, rather than just ‘a car’, and their budget is often based around the total asking price rather than a fanciful ‘whatever it costs per month’ finance package from Kneecap Loans Ltd. Anyway, I digress. As the XJ’s history was so impeccable, rather than give it the usual oil service on site, I decided to keep its leather service book stamped properly, and engaged the assistance of a local Jaguar specialist to ensure the big cat would keep purring smoothly for its next lucky owner.

I went to pick it up, and when driving home it started binging and bonging at me, with a warning message popping up on the instrument binnacle. I donned my trusty Easy Readers, a quid a pair at my local pound shop, to discover that the pixellated message was telling me the bonnet wasn’t shut properly.

Figuring this was down to the garage not slamming the lid properly, I drove cautiously to a bus stop and hopped out to investigate.

Sure enough, the bonnet wasn’t fully latched on one side, so I popped it open and gave it a jolly good slam.

I then opened the driver’s door, only to see the (!) warning symbol still well and truly aglow. So I decided to repeat the process by popping the bonnet and slamming it even harder, then yanking hard on each corner to check that it was well and truly shut. It was.

So imagine my surprise when I opened the driver’s door to once again see that rather startled (!) glowing at me from the dashboard.

Now, if this was my car I’d have blithely ignored it. After all, I’d checked the bonnet was closed fast, and it was, so there was no immediate cause for concern. But this was a

retail car, and minor electrical faults such as that are often enough to put a potential buyer off. After all, if I can’t be bothered to check the bonnet latch mechanism, what other electrical maladies would I have ignored?

Assuming it would be a fairly simple problem – a dirty contact, or maybe a slightly sticky latch mechanism, I dived into my man bag for my trusty multi-tool and set about having a fiddle. I wiggled the bonnet latches (there’s one on each side) back and forth with the screwdriver attachment and they seemed to move freely and easily, then I flipped out the penknife attachment to clean up the electrical contacts that would no doubt be sending the message to the trip computer to warn me of imminent bonnet closure failure.

Convinced that this would do the trick, I once again gave the bonnet a good hard slam, followed by a precautionary wiggle. It was as closed as my local branch of Woolworths.

Confident I’d get no error message, imagine my frustration when I went round to the driver’s side, opened the door and once again saw the familiar (!) glaring at me like an embittered ex-wife.

On to the smartphone I went, seeing if Doctor Google had a remedy for troublesome bonnet catches on alloy-bodied Jaguars.

It wasn’t a common fault, with only one or two owners in the forums reporting it and each of them having cured the error by following the process I had, albeit with something a bit beefier than a Rolson multi-tool.

So, having already had a load of earache off the drivers of both the 74 and the 352, who objected to the presence of my Jaguar in their bus stop, I decided to wait until I got back to the lot to have a better look.

Back on went my Easy Readers – and with them a lightbulb that illuminated my senior moment.

With clarity restored and the driver’s door still ajar, I noticed the LCD display and its rather attention-seeking (!) logo were accompanied by the words ‘Driver’s Door Open’, which, of course, it had been each time I’d looked into the cabin to see if the pesky warning symbol had gone out.

And as soon as I’d shut the door, it had. Along with the ‘Bonnet Open’ warning sign, which I’d long since extinguished by closing the lid properly the first time…

‘Figuring this was down to the garage not slamming the lid properly, I hopped out to investigate.’

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 | 27

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28 | CarDealerMag.co.uk

Dashboard.

Around the world Dealer news from somewhere other than here

USA

A fibreglass statue of a Native American has been removed from a dealership in Asheville, North Carolina. The 23ft structure, called Chief Pontiac, had stood at Harry’s on the Hill for more than 50 years but became a controversial figure recently because of its overtones of cultural appropriation. The final decision to remove the figure came after a now-sacked employee sent a rude text to a Cherokee customer. The statue will now be put on display at a museum.

ARGENTINA

Nissan has begun producing the Navara in Argentina, making it the fifth country to manufacture the company’s most popular pick-up as global demand continues to grow. The expansion of Nissan’s global manufacturing footprint, at Alliance partner Renault’s Santa Isabel plant in Cordoba, is a key milestone for the company. Nissan has announced a mid-term plan to increase sales of light commercial vehicles (LCVs) by 40 per cent by 2022 globally.

SOUTH AFRICA

Suzuki is on a roll in South Africa. The Japanese manufacturer reported 1,237 registrations for July – a monthly sales record.

The new Swift, which enjoyed its first full month on sale after launching in June 2018, led the way with 403 units sold, reported the Carmag website. The recent expansion of Suzuki’s South African dealer network has aided the brand’s progress.

PHILIPPINES

The president of the Philippines, Rodrigo Duterte, has overseen the public destruction of £4 million-worth of luxury cars as part of a campaign against smuggling. The stunt saw 68 cars destroyed by construction machinery in front of an audience to demonstrate Duterte’s stance against corruption and deter future attempts to import cars to the Philippines illegally.

A full list of the destroyed cars wasn’t available but footage shows exotic models from the likes of Lamborghini and Porsche being crushed.

VIETNAM

A new Vietnamese car company, VinFast, is developing a range of world-class vehicles to be produced at a new manufacturing facility in the north of the country. Spearheading the company’s launch, an SUV and a sedan – both developed by Pininfarina – will be given their public debut at the Paris Motor Show in October. VinFast is rapidly developing other vehicles, too.

CarDealerMag.co.uk | 29

Feedback.

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

Our website at CarDealerMag.co.uk

Give discounts or not – A WHILE back now, we started our policy of, ‘this is the price, we sell a good car for a reasonable price’ and it’s still working fine for us. Good, decent stock is even harder to source these days and that makes our terms even more important to us now. This is always mentioned before a test drive. Any shrugs or huffs ’n’ puffs and the keys go back in the office – in a polite manner, of course. This approach has worked fine for us; we can’t think we’ve lost any sales. I see few on here taking this stance on quality, rather than being the cheapest, so ‘are you with me or against me?’ as all the great social reformers say. tradex We’ve done it this way for seven years and I can see no reason to change it at all.

SC Derby I’m definitely with you on this. Our vehicles are priced well and always come up good or low priced on AT, so if a customer is not happy they can go somewhere else. Discounting is taking food from the plate at the end of the day. All of us work hard and take risks. Customers seem to think you’re making thousands but don’t see the £1,000+ rent bill, wages and VAT. RHO 100 per cent. The price is the price is the price. Mr Customer, if you want to pay less, go and buy a lesser vehicle (it’s in my script).

Arfur Dealy I am against you, but not by much. Sold a C1 today. It was priced at £2,195. The customer tried his hardest for £2,000 but I said, ‘Sorry my old mate, the best I will do is £2150 which gives you a year’s tax and half a tank of fuel.’ In this day and age, everyone is after a bargain and while I am confident in my stock, the small £45 goes a long way to not coming across as hard-faced.

Plus, the first-time buyers in the lower end price market, which I know you all love to bits,

Picture of the month

THIS issue’s Picture of the Month features Car Dealer’s sales manager Jon Hickey, the man on the right in the image above. Jon took part in an ‘Ultra White Collar’ boxing event in Portsmouth to raise money for Cancer Research – despite never having put on a pair of boxing gloves before! He did amazingly well, won his bout and raised more than £300 for a very worthy cause. Well done, Jon! often end up breaking something, so being the guy who did give them something off when they come back seems to soften their attitude. Go on, flame me to death – I await the wrath of the forum! justina3 Not at all. I’d give someone 50 quid off a car if they asked nicely. It’s those that somehow want to reach into my pocket and take £500 off an £8k car that I’m deterring. The ‘come on, you’re a dealer, what can you throw in?’ type.

EPV I always take the hard line. If I’m asked, ‘What’s the price?’ the answer is, ‘the advertised price’.

However, I’m sure we ALL discount occasionally.

I had an overpriced (by my own admission)

Megane CC in stock for a couple of months and when one cheeky chappy bid me £300 less BUT WAS FACE TO FACE (absolutely no email negotiation here) talking the ‘cash, no comeback’ talk, he bought it. I did give him 20 seconds of brutal talk along the lines of, ‘Don’t come back, I don’t care if it blows up tomorrow. If you phone me, I’ll tell you to sod off, do you understand?’

BHM Different strokes for different folks. We’re pitchbased and 87 per cent of our stock is overpriced according to Auto Trader (I’d probably agree with that). Lots of stuff we sell for full money, some we knock the £xx95 off at the end of the price and the odd few we discount by up to a couple of hundred pounds. We’d be crazy to lose a deal for a small reduction given our stock is expensive anyway. I can understand those home traders or pitches that price super-competitively and stick rigidly to price. grant8064 You can create more issues by discounting. If you have said the price is fixed but then relent and agree to give a customer £100 off, they will push for £200. If you give £250, they will want £400.

Nice stock priced well sells, and for me that’s that.

SC Derby No hard and fast rule here. Our stuff is prepped and priced right so we look at each deal as it comes. Worked for a guy once when I first started in the trade who many a time let customers walk for the sake of £50! c_cars If you keep your price set in stone, you will lose a few along the way. I don’t entertain ridiculous offers. However, I wouldn’t be turning someone away for a few hundred quid. In my experience, some people are prepared to walk away over a couple of hundred quid. Each to their own.

MSP Motors

Top tweets Our mission statement is to deliver an outstanding motoring experience.

Megan did that to the point where her customers decided to send her a little thank-you. Well done Meg, left, and well done for living and breathing our values every day! bristolstreetburton @bsmburton Simon Barwick has recently joined our @CarlisleAudi team as aftersales manager. Coming off the back of 30

30 | CarDealerMag.co.uk

years with VW Group brands, Simon fancied a change of scenery and the brand switch! Welcome aboard, Simon! #SwanswayFamily Swansway Group @Swanswaygroup Make sure you’re ready for your summer adventures with our wide range of #OutlanderPHEV accessories!

Mitsubishi Motors UK @MitsubishiUK

Test Drive From Your Drive has arrived in Manchester. Experience the luxury of the DS 7 CROSSBACK at home or at work in the Greater Manchester area until August 26.

DS UK @DS_UK_Official Our Brooklands management team have a total of 137 years’ service with the JCT600 Group between them.

What an incredible achievement!

JCT600 @jct600

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

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

what works for you? ... and do we try to get money off?

SO, we don’t take bids – but do we bid ourselves?

When you’re buying, do you bid less? Just last week, I did. I was buying tools and asked for a discount. I do it whenever I am spending cash.

New TV? Discount! Anything? Discount!

New or second-hand, if I think there’s an opportunity, then yes, not ridiculously low, and not if I think the price is good or the seller is struggling! have a word with the wife Personally, it wouldn’t enter my head to walk into Curry’s and ask for a discount on a new custard.

Or a hammer in B&Q. I might do if the goods were damaged, but then I probably wouldn’t buy a damaged brand-new telly.

EPV No. I’m not originally from a car retail (or any sort of retail) background and still believe if

you think the price is right for a given article then pay without quibble.

That’s probably why I’m a s*** salesman. I sell cars but I’m certainly no car salesman – my negotiation generally centres on ‘yes’ or ‘no’.

I know to the penny what I have in every car before a punter turns up, so those cars I want away I decide pre-sale the bottom line but on my good sellers I won’t budge a single penny.

I’ve seen other members of the motor trade haggling over £25, or trying to give a painter £80 for a £90 job – I wouldn’t embarrass myself. ‘That’s the price of sod off’ is my mentality.

There are too many people with double standards, and to be honest there are just as many horrible, greedy people in this industry as there are among the general public.

BHM

REPAIRS & SERVICING

Who does MOTs as well as sales?

DO MANY of you guys operate MOT stations or carry out general repairs/servicing as well as vehicle sales? I’m on the lookout for premises and was toying with the idea of getting something big enough to put in an MOT station, with the idea that it would hopefully cover the costs of the unit as opposed to really taking a wage from it.

I know the cost of the equipment is £25-30k, but surely it would pay for itself soon enough?

It would also give me the benefit of cheap MOTs and a mechanic on site....

D7neo Nice theory. However, an MOT tester is going to cost north of £35k and where do you find a good all-round reliable mechanic? If you can, that’s another £40k. You might be better off buying an up-and-running MOT station then adding on vehicle sales. trade vet Workshops are hard work. Some jobs go wrong and take ages, some jobs are very straightforward. Some of the straightforward ones cost more – we had a mechanic that

kept on knocking TPMS sensors off every time he changed a tyre. To be honest, if you find someone that needs your business and will not rob you, stick with them.

Stalker We run with one full-time mechanic. Getting an all-rounder is really hard, as you say. Recruiting and retaining is really difficult. Our current one is great, he knows his stuff and nothing will beat him. He’s incredibly thorough and cars that come back for stupid things that should have been picked up within the first couple of days are at an all-time low. The trade-off is that he knows one pace and that’s slow.

Our previous mechanic was a younger, likeable lad. He had a fiery temper and used to be incredibly quick – he’d fly through the work, stay late, smash the overtime and was earning serious money with us. He was a maverick and used to cut corners, though. He couldn’t accept ever being wrong and we used to clash quite regularly. A combination of the two would be ideal but it’s never going to happen. Robots are not sounding so bad now!

Rory RSC

Customer called from Holland to buy a Mercedes of mine...

I TOOK a call from a chap on Saturday from Holland. He wants a Merc I have. I pointed out my geographical location just in case he’d been in the dimly lit shops of Amsterdam, above, enjoying the local brew but no, he knew exactly where I was and is moving to the UK. I was sceptical of course, told him to call me Monday morning and we’d firm up arrangements. Well, he did actually call, and after a reassuring conversation that I was genuine (and so was he), a deposit has appeared in my account and he’s coming to collect next Monday. So, Holland. Anyone beat that?

EPV I sold a few ultra low mileage school minibuses to a guy in Africa. I seem to remember he was from Tanzania. He paid upfront and sent a guy over here to drive them back...

Arfur Dealy I sold an Escort Turbo to a lad from France back in the day. To be fair, he was already here at university but did take it back to France, so it still counts in my book. justina3 We are near the airport and there was a time when Irish punters – often without notice – would be waiting for you to open up having flown in early from Dublin or Belfast for £10. trade vet Sold a Saab diesel into Ireland a few years back.

The buyer liked my car and my location because the bus from the airport had a stop directly opposite my premises. I was good enough to ‘put it on hold’ when he messaged me a copy of his plane ticket for the next morning!

Matt Reid

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CarDealerMag.co.uk | 31

32 | CarDealerMag.co.uk

Guest opinion.

No such thing as a bad car? Not true!

James Baggott, p82

FROM CLOSE BROTHERS MOTOR FINANCE

Finance penetration boosts used car market

by SEÁN KEMPLE Director of sales

I

t’s difficult to dispute that we are facing challenging times, not just for some dealers but for our industry. Continued economic uncertainty, Brexit fears and the ongoing diesel scepticism have contributed to a decline in car sales. The first six months of 2018 alone have seen a 6.3 per cent fall in new car registrations – a striking contrast to the EU’s 2.9 per cent increase.

The sector has seen reduced turnover, and there was a three per cent fall in UK manufacturing levels in 2017.

However, it’s not all doom and gloom. Our Britain Under The Bonnet report found that 95 per cent of dealers across the country actually expected their business to grow this year.

The most recent used car data from the SMMT showed that the used car market stayed strong, with 8.1 million vehicles changing hands.

In fact, the UK remains the largest used car market in Europe.1 There’s no getting away from the fact that consumer behaviour is changing rapidly.

Confidence is down, and confusion around diesel and electric cars continues to run rife. But not all change is to the detriment of dealers.

In fact, 16 per cent of consumers said they were

1 2

now more likely to buy a used car over a new one, which is good news for those offering a diverse range of used car stock.

Consumers also tend to sell their cars more frequently in the UK than elsewhere in Europe,1 powering a strong used car market turnover.

A key factor behind this is the rise of car financing agreements. As the relative cost of owning a car outright has increased, it’s unsurprising that we’ve seen growing demand for point-of-sale finance and a shortening of the time people hold on to their cars.

The Britain Under The Bonnet report also found that nearly a quarter of car buyers (23 per cent) would use finance towards their next purchase, with the chief reasons being that they’d be able to spread payment and it’d give them the means to drive the model that they really want.

This figure increases to 40 per cent of those under 30, so we can expect this trend to continue.

The Finance and Leasing Association (FLA) recently reported a 15 per cent increase in the value of advances in May 2018, and a 10 per cent increase in the number of cars bought on finance.

This is a stark increase on the previous year – in fact, lending on cars is the fastest-growing part of the consumer finance market.2 This should shine a light on an opportunity for dealers to meet customer demand and simultaneously support their business’s bottom line.

From speaking to dealers, there’s still some hesitancy regarding the benefits of finance, due to perceived complexity and risk. However, with the vast amount of training and expertise available, the benefits far outweigh the costs.

Along with improving customer retention and protecting dealers from fluctuations in the market, commission is likely to be higher and there’s an increased feasibility of strong aftersales.

The rise of the digital age has facilitated the increased finance penetration in the market, and is a key method for dealers to engage with consumers in an increasingly technological society.

Not only can drivers research hundreds of options from the comfort of their own home, but they can also spend time on digital forecourts without even visiting the dealership.

Crucially though, almost four out of five consumers (79 per cent) actually bought their last vehicle via a dealership.

Car buyers are now turning up with a wealth of knowledge that previous generations didn’t have, and this includes which type of finance would best suit their needs.

Dealers need to be equipped to offer fair and reasonable advice to their customers, ensuring that everyone leaves with a great deal.

As consumer buying behaviour continues to evolve and dealers have to adapt to changing behavioural patterns, as well as challenging economic circumstances, it is going to be ever more important that they have partners in place that can provide the tailored insight and support needed.

Society is changing, and it’s no surprise that the motor industry is mirroring this change.

Dealers need to be adaptable, reacting quickly to changes in demand and supply, to stay on top of the game.

www.apex-insight.com/product/uk-car-finance-market-2017/ www.theguardian.com/business/2017/jun/29/uk-fca-car-loans-market

CarDealerMag.co.uk | 33

Finance.

OFFERS

Kia confirms special launch deals for five new models K ia’s five new models – Ceed, Sportage, Optima, Optima Sportswagon and soon-to-arrive Ceed Sportswagon – went on sale on August 1 with special launch offers.

The Ceed and Ceed Sportswagon boast a 2.9 per cent APR representative deal, with a £1,500 deposit contribution available to customers opting for personal contract purchase through Kia Finance.

It means a mid-grade ‘2’ 1.0 T-GDi 118bhp, featuring 16-inch alloys, a seven-inch colour touchscreen, reversing camera, Apple CarPlay and Android Auto connectivity, Bluetooth, lane keeping assist and high-beam assist, can be had for £149 per month with a £4,841.50 customer deposit.

The monthly instalment for the equivalent Sportswagon model, which has a luggage-carrying capacity of 625 litres, is £171 with the same customer deposit.

Meanwhile, the Sportage, pictured, which features updated design and technology, is being offered with 4.9 per cent APR PCP, with up to £1,000 deposit contribution available

on diesel derivatives including the 1.6 CRDi and Mild Hybrid 2.0 CRDi powertrains. With prices starting at £20,305, the ‘1’ grade 1.6 GDi version can be driven away for £189 per month with a £500 Kia deposit contribution and a customer deposit of £5,752.50.

Finally, Optima and Optima

Sportswagon, which benefit from the introduction of the new, Euro6dcompliant 1.6 CRDi 134bhp engine, have a £2,000 deposit contribution with 4.9 per cent APR PCP. The promotion is for registrations up to September 30 and gives buyers who have taken a test drive their first three scheduled services free as well.

LAUNCH

VW Rent-a-Car service aims to address customer concerns VOLKSWAGEN Financial Services UK has launched its first sites for Rent-a-Car in the UK. The initial launch phase sees three Volkswagen retailers and two Skoda retailers operate the Rent-a-Car service from their existing showrooms and wll grow throughout the year.

Customers will be able to book online by choosing the retailer they want to use and booking their chosen vehicle from a selection of the two brands’ most popular models. They C

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will be able to specify the dates they want to hire it for and pay online.

VWFS UK says research shows that a significant number of short-term car rental customers dislike collection locations, ‘hidden costs’ such as unclear damage, fuel and excess mileage charges and high-pressure sales techniques at the collection desk. It says this new service intends to address those concerns.

The Rent-a-Car service will provide customers with simple, clear pricing

of hire costs, a low excess as standard and paperless vehicle check-in and out. This includes six-point photography of the vehicle to alleviate potential concerns over vehicle damage charges. All vehicles will be under eight months old.

Mark Forton, director of mobility services at VWFS UK, said: ‘As we see customers moving from ownership to usership, we are very excited to launch our first mobility offering to the UK market.’

AGREEMENTS

Brits ‘paying £1bn-plus each month’

MORE than 4.74 million British motorists are paying for their car on a finance package, with the average monthly cost £226.12, making a total monthly bill of £1,072,713,000, or £12.9bn each year, according to new research.

Buying a car on finance allows people to drive a pricier model than they might otherwise be able to afford, and the new study of 2,006 British adults for Kwik Fit reveals exactly how big an upgrade they make with finance.

Drivers who bought their current car outright paid an average price of £10,511, while those using finance ‘bought’ a car costing 47 per cent more, with an average price of £15,438.

The north-west of England has the biggest overall bill, with 867,000 motorists paying an average of £226.94 a month, while Scottish motorists had the lowest at £188.36 per month.

Roger Griggs, pictured, communications director at Kwik Fit, said: ‘This study reveals the huge sums of money which the country’s drivers are spending each month on car finance payments, either through PCPs, leases or other types of borrowing.’

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

L

Businesses have nothing to fear from the rise in interest rates

ate last year, you may remember that we had an interest rate rise, and that in December I forecast that we may be set to have another in early 2018, and then again in late 2018. I’m quite happy to have been wrong on this occasion as a lot has happened, and obviously the economy could fluctuate as we edge closer to Brexit.

My forecast was way out and it actually took until August 2 for the Bank of England to raise interest rates from 0.5 per cent to 0.75 per cent. This rise has come after almost a decade of being at that level or lower.

The Bank of England monetary committee actually moved it down to 0.5 per cent following the credit crisis way back in March 2009.

The Consumer Price Index had been above the government’s target of two per cent since February 2017, and at the point of the interest rate increase back in November the Consumer Price Index was actually above three per cent, so there was a real need to get inflation back in line.

This latest increase comes after the Consumer Price Index has remained steady at 2.4 per cent for many months. The BBC website stated: ‘Mark Carney, the Bank’s governor, said there would be further “gradual” and “limited” rate rises to come.’ I read this as more 0.25 per cent increases, spread across the next couple of years to try to keep CPI in check.

But what does this mean to businesses and consumers?

From a business point of view, it may mean very little straight away. The Bank of England uses increases to try to slow down

consumer spending. However, I don’t see that happening too quickly. My thoughts on this whole area are that this change should be seen as a positive one, even though homeowners who are currently on a variable rate mortgage will see their mortgage payments increase. I haven’t run through the figures myself, but the BBC published a great piece on the impacts, stating: ‘On a £150,000 variable mortgage, a rise to 0.75 per cent is likely to increase the annual cost by £224.’

This is £18.67 a month and may not seem a lot, but obviously if we consider this increase on mortgages that are at the UK average value of £275,000, this could be considerably more per month.

However, as I said before, even though mortgage costs may go up, this shouldn’t scare business owners like you, as the economy is actually quite strong and seems stable enough to take this change.

For instance, areas such as unemployment in the UK have been great for a while now, and stood at 4.2 per cent for the three months to May – the joint lowest since 1975. Wages have increased across the country, and in many occupations, UK workers’ total earnings have actually increased by an average annual 2.5 per cent in the same three months.

This average figure has stood at 2.5 per cent to 2.9 per cent since October last year, and I believe that this is why the monetary committee felt confident enough to make this change.

Yes, we have Brexit ahead of us and there will be some bumps along the way, but I think we’re in the strongest economic position that I have seen in a very long time.

‘I think we’re in the strongest economic position that I have seen in a very long time.’

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 | 35

Dealfinder.

Finance.

YOUR ESSENTIAL GUIDE TO EXECUTIVE CARS

Audi A5 Sportback

Volkswagen Arteon THE Arteon has shaken the executive class up since it went on sale in 2017, if only for its stunning looks Its R-Line trim is laden with standard equipment including 19-inch alloy wheels, adaptive LED headlights and adaptive cruise control. We’ve chosen the powerful 187bhp 2.0-litre diesel engine paired with a seven-speed DSG transmission and Volkswagen’s all-wheel-drive 4Motion system.

Volkswagen is currently offering a hefty £3,000 deposit contribution. The customer then adds £6,000 to this, before following it up with 35 monthly instalments of £465.39, setting them back £22,288.65 in all. If they then want to buy their Arteon outright, they can make a final payment of £16,665.30 plus the £10 option-to-purchase fee, bringing the overall amount payable to £38,963.95 – just £83.95 more than the £38,880 cash price.

RENOWNED for its top-class build quality, the Audi A5 Sportback is the choice to go for if class and luxury are top priorities.

The A5 Sportback – in a similar way to the 4 Series Gran Coupe on the next page – blurs the boundaries between the A4 Saloon and A5 Coupe. We’ve chosen the 148bhp 2.0-litre diesel engine paired with an S tronic automatic transmission and in sportylooking S line trim, which comes with LED front and rear lights, 18-inch alloy wheels, sat nav and a host of safety features.

Audi gives customers a £2,000 deposit contribution, to which the customer adds £5,800. They then make 35 monthly payments of £518.81, which brings the total to £23,958.35. A final payment of £16,659.20 can then be made to buy the car. With this and the £10 fee, this brings the overall amount payable to £40,627.55 – nearly £2,000 more than the £38,785 cash price.

POLL

Eight in 10 car buyers ‘don’t shop around for best finance deal’ A

n estimated two million Brits regret jumping straight into the first car finance deal offered without shopping around, according to a new report by AA Cars, the AA’s used car website.

The research, which was conducted via an AA-Populus poll of 16,328 drivers in May, also found that less than a fifth of drivers using car finance (18 per cent) to buy their vehicle actually compared offers to make sure the deal they were selecting was the best one available to them Twelve per cent admitted that they simply couldn’t be bothered or didn’t have the time to shop around and so could easily have missed out on a more suitable finance option.

Nevertheless, most drivers (60 per cent overall) C

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by JOHN BOWMAN john@blackballmedia.co.uk agreed that they were happy with the finance they had chosen. There was an age split, though, when it came to customer satisfaction – nearly three quarters of over-65s (72 per cent) were happy with their car finance deal, compared with less than half (47 per cent) of 18-24s – possibly reflecting the greater experience of, and wider range of options for, older drivers.

AA Cars chief executive James Fairclough, pictured, said: ‘With complex jargon and a wide range of financial products and rates available through car dealers, banks, manufacturers and other providers, it is no surprise that car finance

is baffling for many to understand. Although it is good to hear that six out of 10 people are happy with their deals, many of them could be paying a lot less if they had shopped around first.

‘Our research suggests that perhaps up to two million Brits have opted for the first offer available to secure the car they really want and may not know if they’ve got the best deal. It’s really important to consider what’s available and not let your heart rule your head so you end up making an impulse decision you might later regret.’

IN ASSOCIATION WITH

BMW 4 Series Gran Coupe THIS is the BMW to go for if you fancy something the size of the 3 Series but with swoopier looks that don’t sacrifice on practicality.

You’d think they’d be quite niche, but the Gran Coupe is a popular car for BMW and an excellent choice thanks to its large boot, classy looks and great driving dynamics.

We’ve chosen the 187bhp 2.0-litre ‘420d’ engine in M Sport trim, which comes with 18-inch alloy wheels, LED front and rear lights, front and rear parking sensors and satellite navigation.

BMW is offering a deposit contribution of £3,840.26, to which the customer adds £5,749. They then make 35 monthly payments of £438.28, bringing the total to £21,088.80 at the end of the three years.

A final payment of £14,402.45 can then be made if the owner wishes to buy their 4 Series. This brings the full amount to £35,491.25 – £2,433.75 less than the £37,925 cash price.

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SURVEY

June sees slight drop in profit performance – and watch out for WLTP

Drivers ‘feeling trapped by their finance deals’

THE average UK motor retailer turned a profit of more than £41,000 for June, reported ASE. While the dealer profitability specialist called it ‘a creditable profit’ and ‘a strong performance’, the result was slightly behind the figure for June 2017, when retailers made just under £46,000 for the month.

The reason for the drop, said ASE, was down to the recognition of new car bonuses. Despite the slight decrease, the overall picture for the second quarter was very good, it added, with retailers on average improving profitability by 74 per cent compared with 2017’s second quarter.

Each of the three months delivered a profit in its own right and there were positive contributions from across the business. However, it warned: ‘We are starting to see WLTP have a real impact on retailer profitability as we move into the second half of 2018.

‘Whilst this is very franchise-dependent, vehicle supply is becoming a real challenge for some retailers.’

MILLIONS of drivers in the UK are feeling trapped by their car finance deals.

That’s the findings of Drover, which polled 1,500 people who have a PCP. The car subscription service was told by 28 per cent of them that they felt confined to the deals, as they were unable to afford the final ‘balloon’ payment.

With roughly 8.7 million UK drivers on car finance agreements, that translates to nearly 2.5 million motorists who felt ‘trapped’, and of those people some 65 per cent said they felt they had to start another PCP arrangement as they couldn’t stump up the money for the final payment and didn’t want to lose out on what they perceived as the investment that they had made so far.

Nearly half – 46 per cent – said they didn’t shop around for the best deal, while 36 per cent didn’t know their rate of interest.

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Forecourt.

FIRST DRIVE

BMW i8 Roadster

Storage

You actually get more storage space in the Roadster over the Coupe – nearly 35 litres more in fact.

The i8 Roadster is a drop-top version of BMW’s instantly recognisable hybrid sports car. Jack Evans headed out to Valencia to see what it’s like.

What is it?

After years of teasers, reveals and promises, we’re finally behind the wheel of the BMW i8 Roadster.

A soft-top version of the iconic hybrid sports car, the Roadster is aimed at those who want the wind in their hair when piloting one of the most futuristic-looking vehicles available. It’s also able to offer low running costs and emits next to nothing, but can that help the i8 Roadster top the bill when it comes to performance drop-tops?

What’s new?

The biggest change here is, of course, the lack of a roof. BMW has whipped off the i8’s top and, because of its predominantly carbon-fibre underbody, it hasn’t had to laden the car down with additional strengthening. That means the Roadster’s weight stays down, and as a result it’s just 60kg heavier than its hard-top brother.

The roof mechanism itself is clever too, taking 38 | CarDealerMag.co.uk

just 15 seconds to raise or lower at speeds of up to 31mph. The exterior of the car has also been lightly breathed upon to freshen its looks.

What’s under the bonnet?

The i8 Roadster makes use of the same powertrain as the regular i8, so you’ll find a 1.5-litre three-cylinder turbocharged petrol engine linked to an electric motor. The combustion engine powers the rear wheels via a six-speed automatic transmission, while the electric motor powers the front wheels through a two-speed automatic ‘box. BMW has also increased the car’s battery cell capacity, so while you still get 369bhp and 570Nm of torque, the Roadster can still travel up to 33 miles on electric power alone. Both units combine to offer good levels of performance, with the electric motor filling in the gaps of the petrol’s power delivery. Thanks to this, 0-60mph takes 4.4 seconds and its top speed is 155mph.

What’s it like to drive?

Usually when converting a regular hardtop into a convertible, you’d expect a significant penalty to the way the car drives. Lopping the roof off usually requires additional bracing to stop the car from flexing too much, and this adds weight, blunting the vehicle’s performance. However, as we mentioned, the i8 Roadster hasn’t suffered too much with the conversion.

This means that it steers just as keenly as the Coupe, and manages the weight it does have well through the corners. Push the i8 Roadster a little harder and it does fall into understeer, the front tyres scrubbing wide with little effort. We’d also like the brakes to be sharper.

How does it look?

The regular i8 still looks like nothing else on the road, despite having been around for some time now. The Roadster, in our eyes at least, looks

Seats

THE KNOWLEDGE

Whereas the Coupe i8 is a four-seater, the Roadster only has space for two people.

Model (as tested):

BMW i8 Roadster Price: £135,810 Engine: 1.5-litre turbocharged petrol linked to electric motor Power: 369bhp Torque: 570Nm Max speed: 155mph 0-60mph: 4.4 seconds MPG: 141 Emissions (g/km): 46

Power

The i8 Roadster can travel on allelectric power for 33 miles.

TARGET BUYERS: Wealthy types keen to burnish their green credentials while having fun in the sunshine.

THE RIVALS: Porsche 911, McLaren 540C, Aston Martin DB11 Convertible.

Roof

The i8 Roadster’s roof can be raised or lowered in just 15 seconds at speeds of up to 31mph.

even better – particularly in the ‘E-Copper’ colour our test car was finished in. The bubbles behind driver and passenger have been accentuated, giving it the look of a 1950s racer, while the two-tone alloy wheels fitted to our test car stood out too. The front of the car has benefited from some additional design touches. There are revised air ducts finished in gloss black, while the headlights’ look has been updated as well.

What’s it like inside?

The i8 Roadster’s interior remains largely unchanged over the Coupe’s, though it does benefit from the addition of a few new colour and material combinations. It’s still a well-made place to be, albeit one that is starting to feel its age a touch now; the screen, though clear, isn’t quite as pin-sharp as rival systems while the multifunction steering wheel hasn’t got the features you’ll find on other current BMWs.

The Roadster, does however, have practicality on its side. Though soft-tops are usually the less spacious option, this i8 packs more luggage space than its hard-top stablemate. In fact, you’ll find 188 litres of storage space in the Roadster – close to 35 litres more than the Coupe.

What’s the spec like?

Prices for the i8 Roadster start at £124,735, there’s plenty of equipment included as part of that base price. You get 20-inch alloy wheels, for instance, and full leather upholstery too, while a suite of safety assistance systems such as forward collision warning, city collision mitigation and high beam assistant all help to keep the Roadster as safe as possible.

It can be easy to ramp up the car’s price however. Apple CarPlay, for instance, is a £235 optional extra – which seems a little mean given it is standard on the majority of hatchbacks

KEY SELLING POINTS: 1. Hybrid powertrain.

2. Standout looks.

3. Elegant design.

DEAL CLINCHER: The i8 Roadster’s striking looks are backed up by genuine levels of performance.

currently on sale today. Our test car weighed in at a hefty £135,810, with options such as LaserLight headlights (£5,100) contributing to its rather chunky price tag.

What do the press think?

Car said the i8 Roadster is a ‘tighter, more intuitive and more rewarding car to push than its predecessor’. Autocar said: ‘It may have been a long wait, but the i8 Roadster does not disappoint.’

What do we think?

BMW already claims that the Roadster will outsell the Coupe three to one. There’s little reason why you wouldn’t go for the soft top; it’s quick, great to look at and its roof mechanism is simple and easy to use. The hybrid powertrain keeps running costs to a minimum, yet despite that, there’s a whole lot of performance drivers can enjoy.

CarDealerMag.co.uk | 39

Forecourt.

FIRST DRIVE

Kia Sportage

THE KNOWLEDGE

Tristan Shale-Hester went to Slovakia to put the South Korean manufacturer’s facelifted SUV to the test and struggled to find anything really wrong with it.

What is it?

Having already established the Sportage as a mainstream choice when it comes to affordable yet well-equipped full-size SUVs, Kia is looking to refresh the model.

What’s new?

The design has been somewhat streamlined, with new bumpers at the front and rear, as well as updated headlights.

The Sportage’s infotainment system has received an upgrade, with a sleeker, frameless eight-inch touchscreen now available as an optional extra. Semi-autonomous features such as lane keep assist are included as standard from a lower grade than before. There’s a new choice of engines as well.

What’s under the bonnet?

We tested two engines – the 1.6-litre four-cylinder U3 diesel and the 2.0-litre four-cylinder 48V mild hybrid powertrain.

The 134bhp diesel is economical and punchy – offering 58.9mpg and providing a plentiful 320Nm of torque. Acceleration is perfectly adequate, reaching 60mph in 11.4 seconds and carrying on to 112mph.

That said, the mild hybrid is the superior powertrain. There’s a great thump of instant torque – a whopping 400Nm – plus an output 40 | CarDealerMag.co.uk

of 182bhp and top speed of 125mph.

It’s also available with a 1.6-litre GDi or T-GDi petrol unit, with up to 174bhp and 265Nm of torque.

What’s it like to drive?

It does have the quite light steering that is commonplace among cars in the Kia range.

However, this isn’t much of a problem in this case because it’s sensible for a big car such as the Sportage to be easy to manoeuvre, while the Sport mode setting does a fantastic job of weighting up the steering, creating a much heftier feel that gives you a lot more confidence in the corners.

How does it look?

The new bumpers at the front and rear and the updated headlight signatures offer a slightly smarter look. However, the Sportage still isn’t an exciting or trendy-looking car. It stands up to some rivals, such as the Nissan Qashqai and Skoda Karoq, but can’t match the stylishness of examples such as the Mini Countryman.

What’s it like inside?

In spite of a few scratchy plastics lower down in the cabin – which are acceptable in any non-premium model – the Sportage’s interior is generally a nice place to be. There’s

an abundance of leather for a car of this value, and despite having a wide range of gadgets, the buttons have been laid out in a logical way.

The optional eight-inch frameless touchscreen is also a highlight. As for the infotainment system, there’s a pleasing symmetry between its digital layout and colour scheme and that of the Sportage’s other dials and instruments.

What’s the spec like?

The starting price for the Sportage is £20,305, which will buy you a grade 1 model with cruise control and DAB radio among the standard features. Grade 2 specification starts at £22,405 and adds 17-inch alloy wheels, sat nav and some basic semi-autonomous driver aids.

Costing from £25,510, the GTLine model includes front parking sensors and a smart entry system.

The Sportage Edition 25 starts at £25,655 and includes an eight-inch touchscreen infotainment system with sat nav. The grade 4 car costs from £27,260, which gets you a panoramic sunroof plus more aids.

Finally, the top-spec GT-Line S costs from £31,245 and includes a 360-degree monitor, powered tailgate and wireless phone charger.

What do the press think?

Auto Express said ‘the latest round of

Model: Kia Sportage Price (as tested): £32,545 Engine: 2.0-litre four-cylinder

48V diesel mild hybrid Power: 182bhp Torque: 400Nm Max speed: 125mph 0-60mph: 9.2 seconds MPG: TBA Emissions (g/km): TBA TARGET BUYERS: Large families, lifestylers, pet owners.

THE RIVALS: Nissan Qashqai, Skoda Karoq, Mini Countryman.

KEY SELLING POINTS: 1. Loads of space inside.

2. Good choice of engines.

3. Affordability.

DEAL CLINCHER: Seven-year warranty. updates have only strengthened [the Sportage’s] position’. Autocar’s verdict was largely positive but they didn’t feel the new mild hybrid powertrain was worth the extra money.

What do we think?

It may not be the most interesting or stylish car in the world but it’s a winner in terms of driveability, practicality and affordability. Add the new dimension brought to it by the introduction of the mild hybrid powertrain and it becomes clear that this really is a vehicle that could suit pretty much anyone’s needs.

FIRST DRIVE

Hyundai Kona Electric

THE KNOWLEDGE

Tom Wiltshire headed to Oslo to see how Hyundai’s compact SUV measures up now that it has an electric powertrain with a mightily impressive range.

What is it?

What’s it like to drive?

This is a fully electrified compact SUV with a class-leading range of up to 300 miles on a charge, but despite that, it’s priced to compete with the Nissan Leaf. Is it too good to be true?

For nipping around town, the Kona Electric is absolutely ideal, with reasonably precise steering and a low centre of gravity making tight cornering easy. The stylised SUV body with its slightly raised driving position also improves visibility at the front, but thick C-pillars hinder the view out of the back.

The Kona Electric is quite a heavy car thanks to all those batteries, and that weight numbs the handling somewhat, but it’s still fun to drive.

What’s new?

The Kona’s gained a new, aerodynamic front grille that conceals the charging socket and it’s made the most of losing a mechanical gear linkage by adding a raised centre console with flyby-wire drive selection and extra storage. There are also some unique paint colours and new alloy wheels.

What’s under the bonnet?

The Kona is available with two battery packs. There’s a lesser 39kWh battery pack mated to a 134bhp electric motor and capable of 194 miles on a charge, but we suspect most will opt for the heftier 64kWh battery, which comes with that headline range.

It offers good performance thanks to a 201bhp power output and bags of instantaneous electric torque. As is the nature of electric vehicles, power tails off over 60mph – which means motorway cruising is less effortless than in a similarly powered diesel – but it’s really zippy from a standstill.

How does it look?

The front grille has gone, replaced by a solid fascia dappled with a diamond pattern. A horizontal bar links the daytime running lights, although Hyundai still positions the headlamps underneath in an ‘upside-down’ arrangement.

The rest of the car is fairly standard Kona, which means it retains a familiar compact SUV shape. It also keeps the standard car’s rather jarring rear light arrangement, but happily there are still some nods to SUV utility – including roof bars and black plastic cladding around the wheelarches.

What’s it like inside?

The centre console has had a makeover. With no physical gear

linkage to accommodate, the whole arrangement has been raised to bring key functions closer to the driver, give a cockpit-like feeling and to provide storage underneath.

Drive is now selected by individual buttons but they take up as much space as a physical gear knob and are less intuitive to use. We also dislike the shiny silver plastic Hyundai’s added, as it makes the car feel very cheap inside.

However, there’s plenty of space and Hyundai’s instrumentation and major controls remain some of the most instinctive in the business.

What’s the spec like?

There’s adaptive cruise control, blind-spot warning, lane-keeping assist and reversing camera as standard on the safety front. You also get climate control, heated and ventilated front seats and an eight-inch touchscreen infotainment system with Apple CarPlay and Android Auto.

What do the press think?

Auto Express recently gave the Kona EV its Affordable Electric Car of the Year award, saying: ‘The core of the car’s talents are its genuinely usable real-world electric range and that affordable price tag.’ Top Gear said: ‘A proper tipping point BEV: genuine

Model (as tested): Hyundai

Kona Electric Price: £33,995 Engine: Electric motor Power: 201bhp Torque: 395Nm Max speed: 104mph 0-60mph: 7.6 seconds Range: Up to 300 miles Emissions (g/km): 0 TARGET BUYERS: Those who need a little extra range from their electric car.

THE RIVALS: Renault Zoe, Nissan Leaf, Kia Niro EV. KEY SELLING POINTS: 1. Long range.

2. Affordable price.

3. Decent to drive.

DEAL CLINCHER: The most range for the money on sale today.

300-mile (ish) range in a small SUV for under £30k. Consider it.’

What do we think?

The Kona Electric would have been a fine electric car even with a lower range, but offering 300 miles on a charge means it doesn’t just compete with the likes of the Nissan Leaf – it triumphs in a pretty decisive way.

In fact, the Kona is the most usable electric car on the market this side of a Tesla Model S – a car that starts at well over twice the price. This could be the kick-start people need to leap to electricity.

CarDealerMag.co.uk | 41

Feature.

ICONIC CARS

s d n e g e l Honda

The Japanese manufacturer’s range of classic cars is extensive and varied – and Jack Evans headed to Barcelona recently to check out some of the models from the brand’s illustrious history.

H

onda has produced some incredible cars over the years. These vehicles have been able to combine performance, reliability and exceptional driver involvement at not-too-scary prices. Though many modern Hondas continue to impress, the brand’s reputation was built on a series of iconic classics – and we’ve been driving them. We were invited out to Barcelona to test out some of Honda’s legends, taking to Spanish roads to see just how these oldschool motors perform in the modern age.

1976 Honda Civic

We started with a 1976 Honda Civic. It’s a joyous little thing, with a thrummy 1,169cc engine endowing it with a brisk turn of pace. The brakes aren’t too bad, though take some getting used to as they require far more input than a modern car’s. The steering, meanwhile, is bristling with feedback and serves as a stark reminder of how little connection we get with today’s cars.

There’s a fair amount of space inside, but the front pillars are spaghetti-thin and look like they’d be less use in an impact than a chocolate kettle.

It was a Spanish summer’s day with 35-degree heat when we drove it, though, so we hopped out of the non-air-conditioned Civic and moved on to the next car.

42 | CarDealerMag.co.uk

1989 Honda NSX

Wow, talk about legends. The NSX is arguably one of the most iconic Hondas to ever be produced, and the pop-up headlights of our test car were more than enough to keep us initially occupied. However, there’s more to the NSX than just motorised headlights – with a 3.2-litre V6 pushing out around 280bhp, it’s got a whole lot of performance up its sleeve. There is a drawback here, however, and that’s the gearbox.

Though the NSX was available with a slick manual gearbox, our test car came with a clunky automatic. It blunts the car’s performance, and though it was hugely exciting to get behind the wheel of such a classic, a manual would have provided a far more involving experience.

1995 Honda Civic

It’s funny to see how things change over time.

There’s little to connect this 1995 Honda Civic with the 1976 model we’d driven earlier, other than the fact it has four wheels, a steering wheel and three pedals. However, it turned out to be one of the best surprises of the day.

You see, the way this car rides is quite astounding – it puts many modern cars to shame. It manages to absorb all of the bumps in the road, while the 1.6-litre engine feels remarkably silky. It may not be the most electrifying of driving experiences, but it’s still a stark reminder of how well-made these early cars were – everything feels tight and solid despite the Civic’s vintage.

2001 Honda Integra Type R DC2 (main picture)

1999 Honda CR-V

Crossovers are hugely popular at the moment, with nearly every manufacturer producing a compact, lifestyle-orientated model. But Honda was somewhat ahead of this trend, thanks to the 1999 CR-V. It was designed to be as car-like as possible, and therefore less intimidating to drive than a traditional SUV. It’s incredibly spacious inside, and it packs a hidden feature too – a picnic table located underneath the boot’s floor. Wouldn’t cars nowadays be better if they had these sort of touches? We certainly think so.

2010 Honda CR-Z

Moving closer to the present day, we arrived at the CR-Z. In truth, it looks as fresh as it did when it was released back in 2010, and the hybrid system on board makes sense in today’s ecoconscious motoring world. The styling is certainly eye-catching, and we were pleased to find out just how well balanced the CR-Z’s chassis is.

It’s a bit of a giggle to drive, in fact, and this is mostly down to the car’s manual gearbox – a feature relatively unheard of in hybrids.

It’s also – thankfully – got air-conditioning, which comes as a welcome relief after a series of hot and sweaty classics. It may sound trivial, but funnily enough, Barcelona in June is pretty warm, and a short break from the heat was a great relief.

HONDA fanboys and girls, listen up – here’s the one you’ve been waiting for. The Integra Type R is one of the all-time greats, and has gained legendary status among Honda aficionados. We can understand why – it’s a very special car to drive.

The 1.8-litre VTEC engine under the bonnet requires you to drive it hard, and it rewards commitment too; this isn’t a vehicle to potter around in. Keep it high in the rev range and it feels utterly frenetic, the engine goading you into driving it harder and harder with each and every bend. We found ourselves leaving the car hanging in second gear and revving it out – shifting is cheating in the case of the Integra.

The steering is refreshingly communicative compared to modern-day equivalents; you can feel everything the front wheels are doing and it gives you the confidence to place the car accurately each and every time.

The low-speed ride is firm, that’s for sure – but the by-product of this is excellent body control, with very little roll felt through the bends. It just means you can take corners far more quickly than you’d expect.

Though a 0-60mph time of 6.5 seconds may not be fast by today’s standards, it feels far quicker than the numbers would lead you to believe. Though it can’t hit 60mph quite as quickly as many hot hatches currently on sale, it delivers a driving experience that few modern cars can match – and it’s the reason why the Integra has got such a strong reputation among petrolheads.

CarDealerMag.co.uk | 43

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Feature.

ROAD TRIP

y c n a f h c n Fre a t s e i F a in Jon Reay enjoys an automotive fling in an ST-Line en route – and a scenic route at that – to the 24 Hours of Le Mans. Ooh la la!

A

s bucket-list road trips go, I think it’s fair to say that not many people would have ‘drive through northern France’ up there as an item to check off. I’m as guilty as anyone of this – as far as I’ve been concerned, anything between Calais and Paris exists only to be driven past on the way to somewhere prettier, or warmer, or more cosmopolitan.

I reckon it’s about time someone gave the likes of Picardy and Normandy a chance though, and so it’s with this in mind that I find myself 10 miles east of Boulogne, crawling through a tiny French village in the middle of some bizarre rural rush-hour traffic jam.

My destination – eventually – is Le Mans: home of the world-famous 24-hour endurance race that bears its name, and soon to be teeming with tens of thousands of fans that make the trek every year.

A surprising majority of those are Brits, heading across the English Channel in droves every summer to watch the race, soak up the atmosphere and – largely, it seems – consume as much cabernet sauvignon as the local Carrefour can supply. More surprising still is the sheer diversity of the cars they choose for the trip.

Anything from 1960s Lotuses and Triumphs to new Ferraris and Lamborghinis get taken along for the ride, and as a result, the autoroutes from Calais and Le Havre can feel like a moving motor show of their own at times.

As for me, I’ve chosen something a little more down to earth for the trip: Ford’s latest Fiesta, 46 | CarDealerMag.co.uk

launched to some fanfare last year. My reasoning is simple: I want to see how Britain’s best- selling car holds up to a road trip of this magnitude. Just 20 years ago, the thought of taking a Fiesta all this way would’ve raised a few eyebrows, but since then, Ford’s second-smallest car has morphed into a bigger, comfier creature altogether.

Anyway, back to my route. Perhaps a little foolishly, I’ve thrown caution to the wind and ticked the ‘avoid toll roads’ option on the Fiesta’s navigation – hoping that I’d end up seeing a bit

more of the ‘real France’ on my route, rather than tripping over fellow tourists at motorway service stations. So far, the plan is working: I’ve not seen a British numberplate since Calais, and traffic jam or not, at least the surroundings aren’t bad. Pretty stone-built gîtes, a boulangerie straight from the front of a French text book, locals dozily chatting to each other under a hanging basket; I’m suddenly aware of how out of place my ST-Line and its Southend-on-Sea bodykit must seem.

Still, I think it looks pretty good – there are just

PICTURES: JON REAY

View from the top The winning formula that has made Fiesta an enduring hit A VARIETY of factors has kept the Fiesta at the top of its particular tree for many years – that’s what dealers are telling Ford.

Paul Singleton, director of dealer operations at Ford of Britain, said: ‘Ford has been the UK’s market leader for 41 years and the Fiesta has accounted for an enormous chunk of that success.

‘The Fiesta has been the best-selling car in Britain each year since 2009, with more than a million examples sold in that time.

‘Our dealers attribute this to the eye-catching styling, its high levels of equipment and the progressive updates throughout its life, such as USB, Bluetooth and the popular EcoBoost engines.

‘In addition, the award-winning ST and sporty ST-Line variants have enabled dealers to find new customers. Finally, the previous model is an extremely popular used car, which has enabled dealers to offer strong part-exchange prices against new sales and also achieve healthy margins with the car from the used car pitch.’

‘I’ve thrown caution to the wind and ticked the ‘‘avoid toll roads’’ option on the Fiesta’s navigation.’

‘Toto, I’ve a feeling we’re not in Calais any more...’

CarDealerMag.co.uk CarDealerMag.co.uk | 47 | 47

Feature.

‘There are just enough sporty bits without it appearing like a total ST wannabe.’

enough sporty bits without it appearing like a total ST wannabe. It’s much better proportioned than the last Fiesta too: more squat and purposeful than before, and now without the look of a tall car on tiny alloys.

Before too long I’m back in open country – and I mean open.

When you live in the UK, and particularly the south of England, it’s easy to forget what wide open spaces actually feel like. Drive for an hour in even the most rural of areas and, eventually, you’ll find a retail park, or a new housing development, or a National Trust castle with adjoining tea room.

Clearly, the people of this particular bit of France, which I’m going to call the Brioche Basket, didn’t get that memo. After mile upon mile of wheat fields interrupted only by the occasional grain silo, I begin to feel like I’m not in France at all but some agricultural mid-western US state. If the tornado from The Wizard of Oz dropped Dorothy and Toto here, they probably wouldn’t realise they’d left Kansas.

Speaking of scary weather, the brooding clouds on the horizon are doing little to convince me I’ve got a 48 | CarDealerMag.co.uk

pleasant journey ahead. But press on I must, and bizarrely I’m soon met with even more Route 66 vibes.

First it’s an unashamedly American roadside diner – or at least what’s left of one: now just a lonely neon sign in the middle of some fencedoff waste ground.

A few miles later, it’s the caricature of a ’60s Mustang on the sign of an otherwise ordinary used car lot that has me musing, not least because there’s nothing even close to any Detroit metal nestled among its selection of Renault Meganes.

Realising neither of these is much good for a photo stop, I do pull in when I spot Americanism

number three: a motel – complete with its very own fighter jet, of all things. For all that the French like to pretend they hate the US of A, there’s an awful lot of Americana floating around in their countryside…

Back on the road again, it seems like days before I’m even halfway to Le Mans. Yet more wheat fields, yet more 80km/h roads, barely any sign of civilisation.

Thankfully, the Fiesta is proving to be an excellent companion, even on these snoreinducing stretches of tarmac.

The ST-Line’s body-hugging sports seats are surprisingly supportive, and despite the optional 18-inch alloys of our car, it rides well too.

It’s the Fiesta’s optional B&O play sound system that’s really keeping me sane, though.

A £350 option on our car, it’s well worth the extra cash and sounds far better than a stereo in a Ford Fiesta has any right to.

With an hour to go, France finally delivers a set of curves where I can really stretch the Fiesta’s legs.

A road closure forces me on to the equivalent of a British B-road and now, a little impatient for dinner and bed, I give the ST-Line all it’s got to try to make up some

There’s an air of America in the heart of France (if you ignore the French fighter jet)

‘France finally delivers a set of curves where I can really stretch the Fiesta’s legs.’

The ST-Line looks right at home on a chicane of the Mulsanne Straight at Le Mans

time. Thankfully, the Fiesta doesn’t disappoint.

It might be the plushest generation to date, but on roads such as this it’s still an absolute hoot.

The quick, accurate steering and nimble chassis encourage you to chuck the car into corners at surprising speed, while the 1.0-litre EcoBoost thrives on being taken (nearly) all the way to the top of the rev range.

It doesn’t even seem to matter that our car isn’t the most powerful 1.0 Ford offers – 123bhp is still enough to have fun in a car of this size, and if anything, having less power eggs you on to keep up momentum by hitting corners just that little bit more quickly.

It’s not long before the city of Le Mans is finally in sight, resplendent in banners and signs for the race that’s due to start in just a few hours’ time.

The Fiesta’s journey might be over, but for its bigger brothers a mile down the road – the Chip Ganassi Racing team’s quartet of Ford GTs – it’s only just beginning.

With that, I tuck the ST-Line up for a welldeserved rest in the hotel car park.

Over the last few hundred miles it’s proved itself as a surprisingly capable road trip steed – and frankly, I can’t think of a better small car for the job.

Oh, and the race was pretty good, too. [CD] CarDealerMag.co.uk | 49

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50 | CarDealerMag.co.uk

Focus on. eDynamix

Hardest job in the dealership just got a whole lot easier EDYNAMIX

T: 0845 413 0000 W: edynamix.com

STEVE URE, strategic account manager at eDynamix, discusses the company’s Active Digital Reception (ADR) app.

S

ervice advisers have the hardest job in the dealership is what I was told when I was in that role, and it certainly felt like it. There were so many systems and processes to follow even before we started talking to customers.

On top of this is a plethora of paperwork – even the job card these days has a million and one tick boxes and data-capture points. Inevitably things get missed and, as a result, entire processes fail.

Now imagine if all the ‘best practices’ a service adviser should do when checking in a customer during arrival at the dealership and discussing what had happened during the day when they come to collect their vehicle could be done on a user-friendly app from a tablet device.

Processes such as: • Updating customer contact details • Capturing marketing consent* • Agreeing the best ‘on the day’ contact method and progress update time • Recording if jobs are ‘waiting’ or when they are required for • Capturing payment type • Recording vehicle condition (including image capture) • Recording service book and locking wheel nut location • Checking basic VHC items (customisable to dealer preferences) • Offering additional upsell opportunities • Booking out loan cars (including damage and fuel level recording) ... and much more…

All this is possible within eDynamix’s Active Digital Reception (ADR), the new extension to the iVHC module.

ADR runs on both iOS and Android tablets and can even work offline, allowing service advisers to use it out of wifi range (or even off-site if collecting a vehicle). What’s more, as with all our products, installation, set up and training is FREE

The eDynamix Active Digital Reception app will aid the smooth running of any garage

and you are never tied into more than a onemonth rolling contract.

As a special promotion, all Car Dealer readers get the first month’s subscription FREE, whether you’re an existing eDynamix customer or not.

Simply quote CAR DEALER when enquiring.** For more information or to book a FREE, no-obligation demo at your premises...

• Call 0845 413 0000 • Email enquiries@edynamix.com • Visit www.edynamix.com *Requires iConsent subscription **Terms apply, demo must be booked by September 30, 2018 to qualify

‘ADR runs on both iOS and Android tablets and can even work offline, allowing service advisers to use it out of wifi range.’

Steve Ure, strategic account manager at eDynamix CarDealerMag.co.uk | 51

Focus on.

Autoglym

LifeShine – How Autoglym has made the best even better AUTOGLYM

E: lifeshine@autoglym.com T: 01462 677766

L

ifeShine from Autoglym, a revolutionary vehicle protection system (VPS), has exploded in popularity in recent years.

It’s a proven, industry-leading product from a market heavyweight, and one which can provide an invaluable additional revenue stream to your business while also providing your customers with a tangible benefit.

The need to provide adequate aftersales support to your customers while still maintaining all-important profit margins has long been a tricky balance to maintain, and this has only become tougher in the present, uncertain economic climate.

It’s no coincidence that LifeShine has become increasingly popular as the decade has progressed, with thousands of dealerships turning to Autoglym’s class-leading VPS as a means of offering their customers extra value for money. Now, the best has just got even better. April saw the launch of new, improved LifeShine, which provides two significant points of difference to the overall offer.

The formulation for paint protection has been improved, with a new, highly significant property finding its way into the mix – colour enhancement.

This means that a single application doesn’t merely protect your customer’s paintwork, it will provide superior depth of colour, helping to return even used cars closer to their former, ‘as new’ brilliance. Tests carried out with four competitor products showed that the improved LifeShine product had a far superior depth of colour difference of up to 31 per cent. This will doubtless prove an invaluable tool in the cut-and-thrust world of used car sales, enabling dealerships to further add value while increasing penetration rates on pre-owned vehicles.

The second benefit is a real game changer – and finally gives dealership sales staff a true ‘in’

for that most common of airborne contaminants – bird droppings. LifeShine’s guarantee has been enhanced to cover damage to vehicle paintwork caused by bird droppings – just another example of how Autoglym is listening to dealer personnel to give them the objection-handling benefits they need to close a sale.

Two key features that were essential to preserve with the new product were speed of application and durability. The market-leading speed of application has been maintained, with the whole process taking just half an hour. Autoglym is only too aware of the relationship between cost, profit and time, and has developed LifeShine accordingly. This ensures that dealers can work through a large number of cars in a single day.

Further tests also revealed that product durability is unchanged with the new formula. Not only is it just as durable as the outgoing formulation, but it has far superior durability compared to competitors, forming a longlasting (500+ washes) barrier against a wide variety of common contaminants including UV rays, fallout and inclement weather.

Independent testing verifies LifeShine’s effectiveness in this respect, with previous controlled durability tests confirming the ability of LifeShine Carbon Shield Technology to significantly outlast competitor systems.

Commenting on the changes to Autoglym’s premier dealership product, Autoglym CEO Paul Caller said: ‘We’ve listened closely to both our trade customers and end-users to create what we firmly believe is a game-changer for the motor trade. It’s a product that’s easy to apply, works better than the competition and, best of all, offers profit to the dealer and value to the end user.

‘We’ve already seen huge interest in the trade from our previous LifeShine offerings, and this latest, all-new incarnation promises the best opportunity yet.’

To find out how LifeShine can benefit your business and for a free demonstration, call 01462 677766 or email lifeshine@autoglym.com 52 | CarDealerMag.co.uk

TO U G H CO LO U R We’re broadening the spectrum for vehicle protection systems.

Our new, improved formulation produces superior depth of colour and locks it in with first-class protection and exceptional durability.

Put the shine back into your profits and discover how your dealership can benefit from increased penetration rates when you switch to LifeShine.

For a free demonstration, call 01462 677 766 or email lifeshine@autoglym.com.

Carbon Shield TechnologyTM

CarDealerMag.co.uk | 53

Focus on.

Dealer Management Systems

DMS-driven integrations can deliver many benefits DRAGON2000

E: sales@dragon2000.co.uk

T: 01327 222333

D

ragon2000 is encouraging car dealers and garages to switch to DMS-driven integrations to simplify their working practices and engage their customers.

Using multiple systems can result in dealers inputting the same information into a variety of places, with the risk of data errors and omissions becoming greater with every duplicate entry.

This can lead to lost sales opportunities as well as potential GDPR compliance issues, due to the higher risk of data inaccuracies, along with managing data processed or stored in many different places.

The key to reducing such errors is to have a single point of data entry so the adding and editing of data is carried out in one place, which is where the DragonDMS dealer management system can really benefit dealers.

DragonDMS integrates with the individually designed websites that Dragon2000 builds for dealers, to update stock instantly and receive enquiries direct into the customer relationship management section of the DMS. The Dragon2000 APPraise mobile app is also fully integrated and has a suite of tools designed to improve customer trust, upsell service work, speed up the sales process and help stock-buying decisions. Features include sales presentation and vehicle health check videos, along with the ability to appraise vehicles with photos, carry out full VHC reports and also add vehicle stock to the DragonDMS remotely.

The recently announced Codeweavers finance integration within the DragonDMS has now been expanded to Dragon2000’s APPraise mobile app – embedded within the web page where customers view sales presentation videos.

Sales videos are already a powerful tool in speeding up the sales process, with a quality walk-around video affirming the prospective customer’s interest before they agree to the sale or visit in person to test-drive the vehicle. This offers a more personalised experience for the customer and also helps to create trust, as well as accurately

DragonDMS integrates with the websites that the company builds for dealers showing the condition of the vehicle.

The new optional finance feature for APPraise will help customers check the affordability of the vehicle they are interested in while their engagement is at its highest, having just watched the vehicle presentation video on the dealer’s customised landing page.

Customer quotes and applications integrate straight into DragonDMS, where dealers can manage the resulting proposals in one place, saving huge amounts of time jumping from system to system and rekeying data.

Mark Kelland, commercial manager at Dragon2000, said: ‘In addition to the integration with our websites and the APPraise app, the

seamless integration into Sage 50 accounts cuts out any double entry of DMS transactions.

‘The DragonDMS also outputs stock feeds to numerous online advertisers, allowing dealers to manage their advertising all in one place, including the recent addition of Auto Trader Lead integration, bringing enquiries directly into the DragonDMS. ‘With all this in mind, there’s no benefit in using additional stand-alone systems when the DragonDMS can be used as the single point of data entry, making use of integrations with other platforms and systems where necessary, which saves a huge amount of time and is cost-effective too.’

‘The DragonDMS can be used as the single point of data entry, making use of integrations with other platforms and systems where necessary.’

Mark Kelland, commercial manager of Dragon2000

54 | CarDealerMag.co.uk

Send Sales Videos to your customers

Dealer Management System of the Year

Our free mobile app, APPraise, is a must-have tool for DragonDMS users.

Provide a unique experience for your customers by recording and sending walk-around videos of stock vehicles directly to their mobile phones.

Offer a more personalised experience to the customer and help create trust by accurately showing the condition of their desired car.

Finance Integration added to the Sales Presentation Videos Your customers can now check the affordability of the vehicle straight after watching your sales presentation video and apply for finance at any time - day or night!

Quotes and applications integrate directly into the DragonDMS so you can easily manage them through to purchase.

DMS

Websites Dragon2000

Apps

Dragon2000 E: sales@dragon2000.co.uk

W: dragon2000.co.uk

T: 01327 222 333

CarDealerMag.co.uk | 55

56 | CarDealerMag.co.uk

Focus on.

Dealer Management Systems

Dealer-centric tech from Click Dealer – DMS Provider of the Year CLICK DEALER

T: 01782 454354

E: cardealermag@clickdealer.co.uk

C

lick Dealer is leading the way with dealercentric technology, by providing a vibrant eco-system of real-time data integration and giving dealers the tools, support and security to gain greater productivity and improve performance within their businesses.

Click Dealer’s aim from the conception of its award-winning DMS in 1999 has been to consign disparate systems to the history books and give dealers an all-encompassing one-stop shop from which to run their businesses.

Unlike a generic back-office system, ClickDMS can tell dealers exactly how they are performing – not just in terms of stock management but in all facets of their company.

The DMS Provider of the Year – as voted for by the readers of this very magazine in the 2018 Car Dealer Power survey – has created an end-to-end solution which not only improves dealership performance but also gives them access to better data and streamlined processes to save them valuable time and money.

With a full suite of insightful reports available at the push of a button, Click Dealer is able to analyse dealers’ data and provide valuable insights which have been configured from their KPIs. From stock analysis, team performance and commission calculators to FCA-compliant reports, Click Dealer’s innovative system goes the whole nine yards for its dealers and more.

Whilst Click Dealer’s DMS doesn’t replicate every single piece of functionality from the vast array of solutions on the market, the digital dealership experts use the latest technologies available to allow third-party platforms to talk to its DMS, so dealers can manage their businesses in one place using tools that they choose.

Whether it be chat integrations on enquiries, or Xero for accounts, Click Dealer has removed the need for multiple disparate systems and double data entry. The reporting and analytical abilities within ClickDMS are vast. Dealers can save time by creating one advert with multimedia options, using video and image-editing facilities – then set up automatic feeds to all major portals.

Ollie Moxham from Click Dealer collects the company’s Car Dealer Power trophy from magazine editor Rebecca Chaplin They can also increase their professionalism with digital invoicing, document repositories and silent salesman functionality.

Having been carefully honed and perfected over almost 20 years in the automotive sector, ClickDMS enables dealers to be accurate with VAT analysis, understand where their money is with debtor and creditor reports, stay consistent and in control with PDI prep and after-sales processes, as well as providing the ability to manage stocking plans with ease including APAK integration.

As a cloud-based system, ClickDMS can give busy dealers peace of mind wherever they are in the world. The robust and resilient system boasts advanced server infrastructures to ensure data compliance and privacy are taken care of.

Also included are permission controls, unlimited user log-ons and personalised menu options to give varying levels of control and visibility to different tiers of staff.

Click Dealer has placed a strong focus on improving sales and order processing to provide clearer visibility to sales staff, thus making the journey easier for both dealers and consumers.

With chip and PIN capability and advanced integration with major finance lenders, Click can demonstrate full visibility by pushing data straight into the DMS. This streamlined finance presentation, integrated with its showroom solution and forward-thinking open API mantra, illustrates a winning formula for used vehicle dealerships across the UK.

With industry disruptions and legislation changes around every corner, it’s vital that dealers have a supplier they can trust to stay ahead of the curve. Click Dealer has seen tremendous results for dealers with its multi-award-winning online retail software and GDPR-compliant data-management solutions. The dealership performance experts are already HMRC-compliant in preparation for the important online VAT submission changes next April.

Discussing the company’s success at this year’s Car Dealer Power Awards, the magazine’s founder, James Baggott, said: ‘Click Dealer have got more than 15 years’ experience in the automotive software market but at its core is DMS. ‘They’re the market leaders and have a one-stop platform for enabling dealers to manage their workload and they link seamlessly with leading classified platforms.

‘Our survey respondents said that ClickDMS is an easy-to-use system from a company that is constantly striving to be the best; a pro-active company, who are always innovating.’

Don’t get bogged down with dozens of disparate software packages! Manage your business using one system with Click Dealer, the performance partners for dealerships.

For more information on the DMS Provider of the Year and ClickDMS, contact Click Dealer today on 01782 454354 or by emailing: cardealermag@clickdealer.co.uk. l

CarDealerMag.co.uk | 57

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK |

SMMT sales data July/year to date

5

Top

Most-improved manufacturers in July

MG +167% Bentley +103% Suzuki +62% Mitsubishi +46%

MODEST INCREASE

How July’s heatwave helped new car sales

T

he UK new car market remained stable in July, with year-on-year demand growing by 1.2 per cent, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). A total of 163,898 new cars were registered in the month as the market stabilised following a turbulent first half of the year.

Although registrations by businesses with fleets of 25 cars or fewer fell by 10.2 per cent, demand from private buyers was up by 0.1 per cent on the same month in 2017. Meanwhile, large fleets grew by 2.6 per cent.

In terms of fuel type, the market followed the trend of previous months, with diesel registrations falling 24.4 per cent as petrol demand grew 20.1 per

cent. Meanwhile, alternatively fuelled said: ‘The feel-good factor from a vehicles enjoyed an uplift of 21 per sun- and sport-packed July, combined cent, with market share of hybrids and with some fantastic deals on a raft plug-ins reaching a record 6.5 per cent. of exciting new models, helped keep Growth was particularly strong showrooms relatively busy.’ for plug-in hybrids, up by a Ian Gilmartin, head of third (33.5 per cent), while retail and wholesale at hybrid registrations grew Barclays Corporate Banking, 17.5 per cent, followed by commented: ‘The return battery-electric cars, up to growth for the new car 2.4 per cent. market in July is significant Year to date, the market and will provide some remains down by 5.5 per much-needed reassurance cent, broadly in line with Mike Hawes to the industry. The fall posted expectations as demand begins in June will have ruffled a few to level out. In the first seven months feathers, so this immediate return to of the year, almost 1.5 million new cars form should provide a real shot in the were registered in the UK. arm for the sector as we begin the runMike Hawes, SMMT chief executive, in to September’s plate change.’

Aston Martin +44%

5

Bottom

Worst-performing manufacturers in July

Infiniti -92% DS -59% Lotus -54% Nissan -36% Jeep -31%

Decline in diesel continues... with rest of 2018 too hard to predict THE real story in the latest SMMT new car registration figures is the continuing decline in the popularity of diesel, accrording to Richard Jones, managing director of Black Horse.

And that, he added, is caused by ‘the mistaken view’ that removing all diesel cars from the UK’s roads is the quickest way to reduce emissions.

Rather, Jones said: ‘The most important issue today is the more general removal of older, more 58 | CarDealerMag.co.uk

polluting cars, whether petrol or diesel.’

Sean Kemple, director of sales at Close Brothers Motor Finance, said: ‘After a turbulent first six months for the new car market, July’s positive results offer some respite for dealers.

‘Record temperatures across the country led to a surge in demand for soft-top cars, and we’re still seeing a slow but steady increase in consumer interest in AFVs.

‘That said, more clarity is needed around government investment for charging points and the taxes paid on AFVs for consumer interest to translate to buying habits.’

Ian Plummer, director at Auto Trader, said: ‘With the industry still facing unprecedented challenges, not least the uncertainties of Brexit, the outlook for the rest of 2018 is hard to predict.’

Top 10 best-sellers, p12

Volkswagen

Alfa Romeo

+19%

July 2018 Marque

2018

-19%

July 2017

% market share

2017

Year-to-date (YTD)

% market share

% change

2018

% market share

2017

% market share

% change

Abarth

305

0.19

275

0.17

10.91

3,344

0.23

2,568

0.16

30.22

Alfa Romeo

261

0.16

324

0.20

-19.44

2,798

0.19

3,025

0.19

-7.50

Alpine Aston Martin Audi Bentley BMW

11

0.01

0

0.00

0.00

11

0.00

0

0.00

0.00

121

0.07

84

0.05

44.05

810

0.05

1,066

0.07

-24.02

13,460

8.21

12,896

7.96

4.37

102,723

6.95

102,615

6.56

0.11

246

0.15

121

0.07

103.31

1,079

0.07

1,089

0.07

-0.92

9,978

6.09

9,083

5.61

9.85

102,374

6.93

101,721

6.50

0.64 -42.86

0

0.00

7

0.00

0.00

28

0.00

49

0.00

Citroen

3,431

2.09

3,206

1.98

7.02

31,678

2.14

33,055

2.11

-4.17

Dacia

1,366

0.83

1,460

0.90

-6.44

14,983

1.01

15,847

1.01

-5.45

Chevrolet

216

0.13

523

0.32

-58.70

4,112

0.28

5,669

0.36

-27.47

Fiat

2,286

1.39

1,935

1.19

18.14

22,232

1.50

30,630

1.96

-27.42

Ford

DS

16,028

9.78

16,934

10.45

-5.35

161,569

10.93

185,250

11.85

-12.78

Honda

3,636

2.22

3,840

2.37

-5.31

33,293

2.25

33,067

2.11

0.68

Hyundai

5,966

3.64

6,187

3.82

-3.57

57,007

3.86

56,287

3.60

1.28

Infiniti

28

0.02

340

0.21

-91.76

579

0.04

2,472

0.16

-76.58

Jaguar

2,234

1.36

2,200

1.36

1.55

20,386

1.38

22,590

1.44

-9.76 -10.08

299

0.18

434

0.27

-31.11

3,800

0.26

4,226

0.27

Kia

7,369

4.50

7,155

4.42

2.99

58,875

3.98

57,805

3.70

1.85

Land Rover

3,843

2.34

5,265

3.25

-27.01

45,275

3.06

50,940

3.26

-11.12

Lexus

784

0.48

843

0.52

-7.00

7,692

0.52

7,285

0.47

5.59

Lotus

13

0.01

28

0.02

-53.57

145

0.01

193

0.01

-24.87 -20.77

Jeep

117

0.07

106

0.07

10.38

847

0.06

1,069

0.07

2,522

1.54

2,477

1.53

1.82

24,403

1.65

25,038

1.60

-2.54

68

0.04

57

0.04

19.30

458

0.03

321

0.02

42.68

11,395

6.95

11,617

7.17

-1.91

102,737

6.95

110,174

7.05

-6.75

MG

813

0.50

305

0.19

166.56

5,099

0.35

2,298

0.15

121.89

Mini

3,351

2.04

3,007

1.86

11.44

37,476

2.54

37,995

2.43

-1.37

Mitsubishi

1,513

0.92

1,035

0.64

46.18

11,644

0.79

9,951

0.64

17.01

Nissan

6,312

3.85

9,786

6.04

-35.50

65,893

4.46

94,871

6.07

-30.54

Peugeot

5,561

3.39

4,861

3.00

14.40

50,550

3.42

52,407

3.35

-3.54

Porsche

758

0.46

1,048

0.65

-27.67

9,632

0.65

8,605

0.55

11.93

Renault

3,196

1.95

3,592

2.22

-11.02

37,832

2.56

44,416

2.84

-14.82 23.54

Maserati Mazda McLaren Mercedes-Benz

Seat

5,689

3.47

4,171

2.57

36.39

41,585

2.81

33,662

2.15

Skoda

5,546

3.38

7,031

4.34

-21.12

47,943

3.24

49,589

3.17

-3.32

Smart

535

0.33

769

0.47

-30.43

4,366

0.30

6,756

0.43

-35.38

SsangYong

132

0.08

175

0.11

-24.57

1,757

0.12

2,451

0.16

-28.31

Subaru

112

0.07

152

0.09

-26.32

1,739

0.12

1,564

0.10

11.19

Suzuki

4,519

2.76

2,791

1.72

61.91

24,983

1.69

24,608

1.57

1.52

Toyota

6,632

4.05

6,410

3.96

3.46

63,031

4.26

62,838

4.02

0.31

Vauxhall

11,781

7.19

11,528

7.12

2.19

109,731

7.42

124,015

7.93

-11.52

Volkswagen

16,761

10.23

14,094

8.70

18.92

130,147

8.81

122,121

7.81

6.57

Volvo

4,381

2.67

3,404

2.10

28.70

27,986

1.89

27,923

1.79

0.23

Other British Other imports Total

51

0.03

91

0.06

-43.96

439

0.03

452

0.03

-2.88

272

0.17

350

0.22

-22.29

2,821

0.19

3,235

0.21

-12.80

163,898

100

161,997

100

1.17

1,477,892

100

1,563,808

100

-5.49

Figures supplied by SMMT

CarDealerMag.co.uk | 59

LCV news.

Fullyloaded

| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |

MERCEDES-BENZ

New programme to meet buyers’ needs

MERCEDES-BENZ Vans UK Ltd has launched a new Approved Used Van Programme designed to further support customer needs, thanks to an enhanced warranty from Allianz Partners.

The scheme provides customers with a 24-month warranty on Mercedes-Benz vans up to four years old. In addition, vans from four to six years old will be covered by a 12-month minimum warranty, with the option to upgrade to a 24month warranty.

VOLKSWAGEN

Crafters help major broadband project

HYPEROPTIC has taken delivery of a fleet of new VW Crafters to support its expansion as it rolls out the super-fast broadband infrastructure it has developed.

Based in Hammersmith, Hyperoptic has built a network of fibre-optic cables that aims to provide the fastest internet in the country. Supplied by Van Centres at Cordwallis Heathrow and Imperial Commercials Derby, 11 liveried Crafters have already been delivered, with 18 more due later this year.

60 | CarDealerMag.co.uk

CARAVAN SALON

Grand California due for Düsseldorf debut V

olkswagen’s new Grand California campervan was due to make its debut at the Caravan Salon in Düsseldorf in August. The Grand California sits above the standard California, offering a larger, more luxurious product for those who’ve perhaps outgrown the regular vehicle or just want more comfort when touring.

The standard California is based on the Transporter van and is the world’s most successful camper.

Although Volkswagen campers have been massively popular since the original Type 2 of the 1950s, it’s only since 1988 that Volkswagen itself has been directly involved.

Californias are now built on their own dedicated production line and sold through Volkswagen Commercial Vehicles dealerships.

Based on the Crafter, the Grand California is significantly larger than its older brother. It’s nearly six metres long and can sleep four people in comfort.

A major advantage over the standard California is the addition of a washroom compartment. It’s fully featured, with a cassette toilet, fold-out washbasin, ventilating skylight and – best of all – shower.

A 110-litre fresh water tank provides plenty of shower capacity.

There are two main sleeping

berths. The rear of the van contains a transversely mounted double bed, but if you need somewhere for the kids there’s also an optional highmounted bunk bed over the cab.

The Grand California benefits from all the comfort and safety features of the latest Crafter, giving it some of the most comprehensive equipment in the van class.

There’s autonomous emergency braking, lane-keeping assist, blindspot monitoring, rear traffic alert and park assist, plus adaptive cruise and rear-view cameras all available.

For the adventurous, there’s even 4Motion four-wheel drive on offer.

The vehicle will go on sale in 2019.

Top-selling LCVs in July Ford Transit Custom 3,263 Ford Transit 2,444 Volkswagen Transporter 1,375 Peugeot Partner 1,370 Vauxhall Vivaro 1,141

Source: SMMT

Ford Ranger Ford Transit Connect Citroen Berlingo Peugeot Boxer Toyota Proace

1,048 1,031 905 804 726

LCV registrations, p62

Sales stats

First drive

Latest registration figures from SMMT

New VW Caddy is well worth a look

Sliding doors WITH CRAIG CHEETHAM

A look at the world of buying and selling vans and pick-ups

T

Why now is a good time to consider a van franchise

he market’s tough right now for everyone in the automotive sector, with economic uncertainty, Brexit speculation and a rise in interest rates making it harder and harder to sell. However, there’s one area of the industry that’s holding up better than most.

The new van market is down by a fraction year-on-year, but over the past three years it’s seen incredible growth, driven by a number of factors that aren’t directly related to the automotive sector itself.

In 2017, over 360,000 vans were sold in the UK, a comparable number to the previous year, and in 2018 the final tally looks set to come close to that again. It means that more than a million new vans will have hit the roads over a three-year period, with over four million LCVs now on Britain’s roads and some significant growth in two key areas – pick-ups and the 3.5t large van market.

While the upturn in pick-up registrations is more related to non-commercial use and tax benefits for business users, the growth in 3.5t vans is much more significant, as it reflects a trend in British society.

As the high street continues to suffer, our online shopping habits are booming, and it’s vans such as these that are helping the goods to reach our doors – not least because there’s a driver shortage in the HGV industry and some of the major parcel companies are moving away from larger goods vehicles to those that can be driven on a standard licence.

It’s a move that’s creating jobs and bringing convenience to the masses, and while HGV specialists are feeling the pinch, those that specialise in LCVs are making good money, be it through new van sales, used vans or servicing and maintenance.

Back in June, Volkswagen Commercial Vehicles opened the UK’s biggest LCV servicing centre close to Trafford Park in Manchester.

With out-of-hours servicing to avoid vehicle downtime and mobile

support, it makes owning a van much easier for the end user and generates a good stream of income for the dealer.

Unlike cars, vans cover a much higher mileage and will often require a trip to the service bay twice or more a year. And if that’s not enough for you to consider an LCV franchise, there are also some fantastic upselling opportunities.

Unlike car buyers, who you may be able to reel in with mud flaps, carpet mats and paint protection products, van users often need more heavy-duty accessories. Ply-lining, racking, towing equipment, auxiliary lighting, underbody protection and additional security are just some of the opportunities out there to maximise your profit opportunity. Throw into the mix the more demand they create for consumables – tyres, brake pads, oil and AdBlue for starters – and you have plenty of things to go at to influence the bottom line.

There are some downsides, of course. First, most customers are fleets or SMEs, meaning they’ll often be buying on cost rather than desirability, and it’s harder to upsell them into higher-spec vehicles or PCP contracts, although LCV contract hire can still bring many advantages.

You’ll also need more space, both in the service bay and on the forecourt, to accommodate their additional height and length.

But unlike the new car market, where economic jitters can send a shockwave through the entire industry, vans will always be a business requirement, and as more and more of us buy the goods we need online, the need for them to not only be bought but also be kept in roadworthy condition shows no signs of going away.

For the van dealer, then, the market is a lot more stable than the passenger car sector right now – and if you’re a franchise owner looking to expand your business, then vans could be just what you need to deliver the goods.

‘For the van dealer, the market is a lot more stable than the passenger car sector right now.’

Craig Cheetham is an experienced automotive journalist with specialist knowledge of the LCV sector.

Turn over the page for more LCV stories CarDealerMag.co.uk | 61

LCV news.

LATEST STATISTICS

New LCV market declined 5.9 per cent in July, according to SMMT THE UK new light commercial vehicle (LCV) market declined 5.9 per cent in July, with 23,309 vans and pick-ups registered, according to figures released by the SMMT. While pick-ups enjoyed a particularly popular month, with a 13.9 per cent uplift in registrations, demand for small, medium and large vans fell

by 2.8 per cent, 28.0 per cent and 3.8 per cent respectively. Year-to-date registrations are down 2.7 per cent, with 204,005 new LCVs joining British roads since January, a result of fluctuating fleet buying cycles and low business confidence.

Mike Hawes, SMMT chief executive, said: ‘While variations in buying cycles are a natural

feature of the light commercials sector and demand is still at high levels, the overall trend is one of decline. Ongoing uncertainty and low business confidence are having an effect.

‘The government must address these concerns and create the conditions necessary for the market to prosper.’

Registrations of new commercial vehicles less than 3.5 t July 2018 Marque

2018

Figures supplied by SMMT

July 2017

% market share

2017

Year-to-date (YTD)

% market share

% change

2018

% market share

2017

% market share

% change

8,111

34.80

7,944

32.08

2.10

72,504

35.54

67,462

32.17

7.47

Volkswagen

2,908

12.48

2,817

11.37

3.23

24,633

12.07

23,736

11.32

3.78

Peugeot

2,760

11.84

3,253

13.13

-15.16

21,360

10.47

21,087

10.06

1.29

Citroen

1,952

8.37

1,888

7.62

3.39

16,292

7.99

16,152

7.70

0.87

Vauxhall

2,085

8.95

2,112

8.53

-1.28

14,504

7.11

16,820

8.02

-13.77

Mercedes

819

3.51

1,813

7.32

-54.83

13,320

6.53

16,821

8.02

-20.81

Renault

734

3.15

1,205

4.87

-39.09

8,873

4.35

12,326

5.88

-28.01

Nissan

858

3.68

979

3.95

-12.36

7,875

3.86

10,102

4.82

-22.05

Mitsubishi

558

2.39

562

2.27

-0.71

6,144

3.01

6,031

2.88

1.87

Toyota

1,122

4.81

565

2.28

98.58

5,919

2.90

6,073

2.90

-2.54

Fiat

556

2.39

828

3.34

-32.85

5,196

2.55

6,763

3.23

-23.17

Isuzu

282

1.21

369

1.49

-23.58

2,710

1.33

3,066

1.46

-11.61

Iveco

111

0.48

237

0.96

-53.16

1,807

0.89

1,671

0.80

8.14

Renault Trucks

101

0.43

109

0.44

-7.34

916

0.45

700

0.33

30.86

Land Rover

122

0.52

0

0.00

0.00

748

0.37

20

0.01

3,640.00

Isuzu Trucks

39

0.17

23

0.09

69.57

365

0.18

215

0.10

69.77

MAN

82

0.35

0

0.00

0.00

261

0.13

0

0.00

0.00

LDV

50

0.21

27

0.11

85.19

235

0.12

184

0.09

27.72

SsangYong

43

0.18

21

0.08

104.76

170

0.08

262

0.12

-35.11

11

0.05

10

0.04

10.00

96

0.05

103

0.05

-6.80

Ford

Mitsubishi Fuso Dacia

5

0.02

2

0.01

150.00

48

0.02

43

0.02

11.63

Hyundai

0

0.00

2

0.01

0.00

25

0.01

29

0.01

-13.79

0

0.00

0

0.00

0.00

4

0.00

26

0.01

-84.62

23,309

100.00

24,766

100.00

-5.88

204,005

100.00

209,692

100.00

-2.71

Great Wall Total light CV

Registrations of new commercial vehicles 3.5 t to 6.0 t July 2018 Marque

2018

Figures supplied by SMMT

July 2017

% market share

2017

Year-to-date (YTD)

% market share

% change

2018

% market share

2017

% market share

% change

228

37.32

30

6.76

660.00

1,639

30.46

322

7.74

409.01

Ford

116

18.99

76

17.12

52.63

1,183

21.99

1,289

30.99

-8.22

Fiat

16.77

Peugeot

160

26.19

105

23.65

52.38

1,170

21.75

1,002

24.09

Mercedes

68

11.13

121

27.25

-43.80

976

18.14

981

23.59

-0.51

Iveco

17

2.78

49

11.04

-65.31

180

3.35

250

6.01

-28.00

Citroen

6

0.98

1

0.23

500.00

73

1.36

42

1.01

73.81

Vauxhall

2

0.33

17

3.83

-88.24

53

0.99

72

1.73

-26.39

Renault

7

1.15

39

8.78

-82.05

45

0.84

41

0.99

9.76

Volkswagen

3

0.49

1

0.23

200.00

43

0.80

112

2.69

-61.61

MAN

4

0.65

0

0.00

0.00

10

0.19

0

0.00

0.00

Isuzu Trucks

0

0.00

2

0.45

0.00

7

0.13

19

0.46

-63.16

Renault Trucks

0

0.00

2

0.45

0.00

1

0.02

2

0.05

-50.00

Nissan Total heavy CV

62 | CarDealerMag.co.uk

0

0.00

1

0.23

0.00

0

0.00

27

0.65

0.00

611

100.00

444

100.00

37.61

5,380

100.00

4,159

100.00

29.36

FIRST DRIVE

Volkswagen Caddy

Craig Cheetham tries out Volkswagen’s compact panel van to see how it fares against the likes of the Ford Transit Connect and Nissan NV-200.

What is it?

The Caddy is Volkswagen’s compact van, built on the shared-platform architecture of the Golf. As a result, it is positioned as one of the most comfortable and dynamic small vans on the market but with the added practicality of a load bay that can swallow a lashed-down Euro-pallet with room to secure it.

What’s new?

The Business Pack is the latest key feature for Caddy buyers, costing £950 and including reversing sensors, alarm system and air conditioning or climate control, depending on model. In addition, there’s a new infotainment system with Apple CarPlay and Android Auto, while all VW vans now get autonomous emergency braking as standard – the first van manufacturer to standardise the technology across its range.

What’s under the bonnet?

The Caddy comes with a choice of engines, comprising 1.0 and 1.4 TSI turbocharged petrol units and a choice of 2.0 TDI units with either 102 or 148bhp outputs. The latter, as tested here, is extremely swift and is ideal for long-distance courier work thanks to its 57.6mpg fuel economy and decent performance, though the smaller engines are both cheaper and perfectly up to the job.

What’s it like to drive?

In terms of ride and handling, the Caddy is excellent, with car-like dynamics and a supple ride.

The acoustics are a bit tinny, though, with a noticeable boom through the load bay and cabin. Our test van had a laminated rubber floor, which may have contributed to this, but it’s notably louder than the Ford Transit Connect and Nissan NV200 models that we drove recently.

The noise is only really noticeable at low speeds, though, and at cruising speeds the Caddy becomes a refined companion.

How does it look?

With new versions of the Citroen Berlingo, Peugeot Partner and Vauxhall Combo on the horizon, the Caddy is one of the older vehicles on the market – but it certainly doesn’t look left behind. It’s clean and neatly styled, if a little plain.

With that in mind, though, it’s unlikely to age as dramatically as some of the more unusually styled vans on the market, which will give a major boost to its residual values.

What’s it like inside?

Up front, the Caddy is like a Golf. It’s smart, comfortable and ergonomically laid out, while the quality of the dashboard plastics and minor controls is as good as it is in the passenger car range. It’s

based on a car-sourced platform but with a bespoke body capable of carrying up to 3.2 cubic metres, or 4.2 cubic metres if you opt for the extended wheelbase Maxi model.

The load bay is easy to access, with a flat load floor, unobtrusive wheel arches and a wide side-loading door where specified. The maximum payload is 857kg.

THE KNOWLEDGE Model (as tested): Volkswagen

Caddy High Line with

Business Pack Price: £24,445 Engine: 2.0 TDI Power: 148bhp Torque: 320Nm Max speed: 119mph 0-60mph: 9.2 seconds MPG: 57.6 Emissions (g/km): 129 TARGET BUYERS: Key fleets and small businesses.

What’s the spec like?

Like all vans, the entry-level Caddy models are fairly basic, although electric windows and remote locking are standard features, as is AEB, which we think is a major win for the German brand.

Move up the range and it gets quite plush, with great audio and climate options that will prove popular with owner-drivers and small business owners. High Line versions also get 16-inch alloys, sat nav and a leather steering wheel and gear knob.

the Caddy at the head of the small van sector.’

What do the press think?

Honest John Vans summarised it by saying: ‘High-quality interior, refined and comfortable, makes it ideal for both long and short work.

Impressive TDI engines are punchy yet frugal.’ Commercial Fleet said: ‘Technological advancements and new clean engines, added to Volkswagen’s already legendary build quality, once again re-establish

What do we think?

With recent spec enhancements and the addition of AEB as standard, the Caddy maintains its position as a strong choice in the small van market, despite newer rivals coming on the scene. It’s not the cheapest or newest van in its sector, but the Caddy is still a class act with a feeling of quality above most of its rivals.

THE RIVALS: Mercedes-Benz Citan, Vauxhall Combo, Ford Transit Connect.

KEY SELLING POINTS: 1. Premium image.

2. Class-leading safety.

3. Business-focused security.

DEAL CLINCHER: Autonomous emergency braking as a standard feature.

CarDealerMag.co.uk | 63

Workshop.

Aftermarket

| SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES

MTS

‘Best aftermarket exhaust available’

EXHAUST systems from MTS have been given a boost by one of the country’s largest independent motor factors, Melksham Motor Spares.

The firm says the brand, distributed in the UK by Opera Automotive, is the ‘best exhaust available in the aftermarket’.

Phil Dodd, above, Melksham Motor Spares managing director, said: ‘MTS exhausts have been an instant hit with customers and it’s exciting to see a brand with quality aspirations trying to do things a bit differently.’

SMPE

Ignition coils for lots more vehicles

STANDARD Motor Products Europe has boosted its application coverage for some of its most popular ignition coils by 400 vehicles.

The coils fit the latest VW, Audi, Skoda, Seat, BMW, Mini, Dacia, Nissan and Renault vehicles and now include the most recent models of some of Europe’s most popular vehicle marques. SMPE is one of the UK’s largest independently owned automotive parts manufacturers and suppliers.

64 | CarDealerMag.co.uk

JENNINGS KIA & MAZDA

Lucy keeps it in the family with new role

by JOHN BOWMAN john@blackballmedia.co.uk

T

he latest aftersales recruit to join Jennings Kia and Mazda in Sunderland is looking forward to a successful future after taking a completely new career path.

Lucy Jones, 37, from Leam Lane in Gateshead, has been appointed as a full-time service adviser at the motor dealer group’s new Stadium Way dealership in Sunderland.

Before joining the company, she spent a number of years working at a local care home, providing care for elderly people, but that all changed when she wanted to increase her hours from part-time to full-time.

‘Although I enjoyed working within the care industry I was ready for a complete change, and I really wanted to be in a full-time role.

I’m very much a people person, so I knew something in a customerfacing role would be ideal,’ she said.

Her 20-year-old daughter, Samantha Robinson, works as a service adviser at the company’s Washington service department, and Samantha’s father, Paul Robinson, is a sales executive at Jennings’ South Shields branch.

They both suggested that she should apply for the service

Lucy Jones has been praised for being enthusiastic and determined adviser role. Jones said: ‘I was delighted when I found out I’d got the job – we’re certainly keeping it in the family!’

Working as part of an 11-strong team, her new role entails liaising with existing and potential customers, arranging and confirming bookings, processing orders, invoicing and taking inquiries.

She will undergo a series of internal and external training programmes organised by her

employer and the manufacturers.

Welcoming her on board, service manager David Murphy said: ‘Lucy’s enthusiasm and determination to succeed was evident at the interview, and she’s already proving to be an asset to the aftersales team at Sunderland.’

Over the years, she has also worked as an assistant manager for a local newsagent, in addition to spending time as a claims adviser and a bartender.

Euro Car Parts consolidates Euro Academy into Autoeducation EURO Car Parts has brought together its extensive Euro Academy training offer with Andrew Page’s Autoeducation programme, to create one of the largest technical and training resources in the independent aftermarket. Both

businesses will work together to deliver a revised Autoeducation prospectus, offering over 75 different training courses to repairers.

The extended Autoeducation programme continues to deliver IMI-accredited training

for technicians and includes a dedicated technical phone helpline and online diagnostics database with a reference library of previous faults. The database is growing every day, with in excess of 2,500 repair details added weekly.

RETIREMENT

Changing of guard for Kia aftersales

HAMISH McCowan has retired as aftersales director at Kia Motors (UK) Ltd after a long spell with the company and more than 40 years of experience in the industry.

Before arriving at Kia in 2000, McCowan held a number of roles at Saab, Toyota, Volvo, Porsche and Mazda.

He started his Kia career in the role of regional business manager, becoming head of aftersales in 2003 and aftersales director in 2005.

His department is continuously exceeding targets and setting new sales records.

‘I am exceptionally proud to be leaving the aftersales department in such great shape after a record-breaking start to 2018,’ McCowan said.

‘The growth that Kia has achieved in the UK over recent years has been extraordinary and I am delighted to have been a part of it and the Kia family.’

Paul Philpott, president and chief executive at Kia Motors (UK) Ltd, said: ‘Hamish has been a central and vital part of the tremendous partnership we have built with our dealer network. His experience and professionalism are unrivalled.’

Replacing McCowan will be Chris Lear, pictured right with McCowan, who is moving from his role as national aftersales manager. He said: ‘It is an absolute privilege to be taking over from Hamish, who has superbly guided the aftersales growth of Kia.’

This is the first time Mountune has been able to unlock the potential in an ST diesel product

MOUNTUNE

New power upgrade for Focus ST diesel O

wners of Ford’s highperformance Focus ST diesel can now unlock even more oomph with the launch of Mountune’s m460D power upgrade kit. The m460D kit includes an OBDII flashing cable, dongle, performance calibration and a Mountune badge. With a focus on real-world performance, Mountune’s calibration will reduce the 0-60mph time by 0.7 seconds and cut the 3160mph time by 0.5 seconds.

David Moore, the company’s global brand manager, said: ‘Mountune has been producing market-leading power upgrades for over a decade and this is the first time we’ve been able to unlock the potential in an ST diesel product.

by ADAM WELLER @AdamNeverKnows

‘The standard Focus ST diesel is a great base car, but with the m460D kit installed we’ve been able to make it smoother, quicker and generally even more fun to drive.’

Power output is increased by a healthy 20bhp while torque is improved by 50Nm, resulting in a significant performance gain while retaining the correct DPF regen strategy, meaning safe, reliable response is assured.

The kit can be installed at home, but Mountune would encourage customers to have it fitted at the team HQ, where the company builds

its BTCC and Rallycross engines.

Customers can use a free Xbox and enjoy snacks and drinks while specialists work on their car.

Priced at £429 for DIY installation or £350 for installation at Mountune HQ in Essex (due to the fact that a DIY fit requires an individual dongle and cable) m460D, which is only available for cars with a manual transmission, is one of the most affordable ways to add both performance figures and real-world ability to a Focus ST diesel.

With its HQ in Brentwood and a base in Los Angeles, Mountune brings its decades of experience of Ford performance products to the latest models while ensuring that the vehicles remain safe and reliable.

GardX excited over alloys protection addition to portfolio GARDX is excited to announce the introduction of GardX WheelGard – the ultimate protection for a vehicle’s alloy wheels.

This revolutionary product is a welcome addition to the ever-expanding GardX portfolio and adds another offering to the ‘non-insured’ Protect range of the vehicle protection products GardX provides.

GardX WheelGard is an innovative protection product that is fitted to alloy wheels and protects them against

unsightly kerb damage. Made from tough and durable military-grade polymers, WheelGard is applied using advanced adhesives to protect the alloy wheel.

Richard Hage, international development manager at GardX, said: ‘This really is an exciting new product for GardX – one that is so simple, yet seriously effective.

‘After rigorous testing, we are confident that this is the best alloy protection product on the market and we are sure it will be a huge success.’

CarDealerMag.co.uk | 65

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

The most ridiculous claims we’ve seen

Q

You get to deal with a large number of court claims brought by consumers against the motor industry. What would you say are the most extreme or bizarre you have dealt with?

We do get an awful lot of claims brought by consumers against motor dealers. And yes, we do get some that stand out from the crowd. For example there are those who issue court proceedings because (in part) their car radio could not pick up one particular frequency, or because they were not given a key on the manufacturer’s original fob.

Similarly, they demand compensation (or rejection) for not being able to connect their modern phones to the Bluetooth in the car that is not quite so new – or where an alloy has cracked thousands of miles and many months after an MOT given at the point of sale.

We recently had one case where a client was being sued for just £54. On the very same day as that came in, a judge became incandescent

A

with fury when a consumer emptied a bag of oilsodden parts (complete with a large deposit of oil) all over the court’s lovely walnut table!

There are several reasons for the rise in the number of silly claims. Historically, consumers had to visit their local county court, complete a form in writing and pay the fee by cheque.

Nowadays, it can take less than 30 minutes to issue and pay for an online claim – and the ability to do so is available 24/7. One wonders how many are completed after a visit to the pub!

In this day and age, we require everything now. Immediately. E-mails, text messages and even Whatsapp messages form evidence given to the court by each party. The problem is that many of those (like the claims themselves) are written in haste with no proper consideration as to reason or common sense. Buyers and sellers get caught up in the heat of a rapid exchange of communications, to such an extent that to settle out of court becomes too painful for each to

consider – they simply don’t want to lose face.

And so, up comes the Money Claim Online website and before you know it the claim (however spurious) is issued.

That said, some people we find are beyond reason and will bring a claim despite many attempts to negotiate perfectly reasonable settlement proposals. They will, for example, demand £600 but decline £500 – and proceed to spend more in bringing the claim than the £100 extra they insist upon. In essence, they run the risk of getting nothing at all in court as opposed to only a small amount extra if they were to win.

Still, this writer’s best example of a ridiculous claim was one many years ago when he worked in trading standards. A consumer sued a bus company for £3.50 – because he says he got to the bus stop one minute before the timetable said it was due – but that it had gone early and so he had to pay to get another ticket on another bus, not covered by his weekly pass!

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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.

Refund request

Q

We sold a vehicle and one of the sensors failed.

We offered to repair it and the customer accepted our offer but they have now refused to collect the vehicle and want a refund.

Generally, if the consumer has accepted a repair as the remedy and the trader has complied with their obligations under the agreement within a reasonable timescale and the repair has been successfully completed, the consumer cannot simply change their mind.

If the repair is not successful or has not been carried out in a reasonable timescale, the consumer will possibly have entitlement to refuse the repair.

If the consumer fails to collect the vehicle after repeatedly being requested and you have put the consumer upon notice that storage fees will accrue, the trader can issue a notice under the Torts (Interference with Goods) Act 1977.

The notice is simply putting the consumer on notice that you intend to sell the goods, should the vehicle not be collected.

Please note, this is not an overnight fix and the trader will require legal assistance.

WANT TO UPGRADE?

WHY WE LOVE LAWGISTICS

It’s a fantastic all-round service and I have recommended it to other people already!

CROWN Car Sales is based in Featherstone, Pontefract and specialises in cars between the price points of £1,000 and £10,000. It typically has 60 to 80 vehicles on its forecourt at any one time.

Craig Ashton, manager at the dealership, says he has only been signed up to Lawgistics for 10 months, but is already recommending its services to other dealerships. His association with the firm has even led to his customer reviews improving.

He said: ‘Lawgistics is reasonable, shows no favouritism to either us or the customer and is always straight to the point.

‘When it comes to a customer being unhappy with something, and both sides want to know where they stand, we need to know a solution quickly and this is where Lawgistics really impresses us.’

Ashton recounted numerous occasions where contacting Lawgistics had allowed situations to be resolved in under an hour, but he has been particularly impressed with Lawgistics contacting a customer directly on request.

‘It is under no obligation to contact a customer on our behalf, but will happily do so, and the staff always offer to help. By taking that weight off my shoulders, it allows me to concentrate on my job and build new sales.’

He also said that he has seen the number of negative online reviews drop since signing up to Lawgistics.

‘Aftersales is where we get our reviews from and Lawgistics guides us as well as correcting customers when they’ve given the wrong information. If we didn’t have Lawgistics and we knew we were correct in a situation, the customer wouldn’t see it that way and would leave us a bad review.

‘There have been instances when Lawgistics spoke to customers who thought we were at fault, but corrected them and we still got a good review which is important as positive reviews help bring us more customers.’

Finally, Ashton added: ‘Lawgistics is a fantastic all-round service and I’d direct any dealership to Lawgistics. In fact, I have referred several people already.’

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LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £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.

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CarDealerMag.co.uk | 67

Auctions.

New executive director at Vertu Motors

Recruitment: p75

DEVELOPMENT

Aston Barclay reveals plans for ‘mega centre’

A

ston Barclay has announced plans to open a new vehicle auction mega centre near Wakefield.

The 18-acre development will open its doors later this year and will provide 70,000 square feet of space, which Aston Barclay will transform into its own version of the ‘northern powerhouse’.

Following in the footsteps of the company’s Midlands Mega Centre at Donington Park, which was opened in September 2017, the plans are to make Wakefield the most modern and technologically advanced auction facility anywhere in Europe.

It continues Aston Barclay’s focus on combining digital technology with a first-class physical auction experience, and confirms the group’s strategy of creating large regional auction hubs, rather than a network of smaller centres.

Its dynamic approach to bridging the gap between a digital and physical auction environment remains a unique proposition in the UK. Banks of video screens throughout the Wakefield Mega Centre and a high-specification internal finish will mean it will resemble a dynamic retail environment.

The West Yorkshire site will feature two glass-fronted auction halls and employ around 90 full- and part-time staff once it

is fully operational in early 2019.

With the ultimate capacity to sell 50,000 used vehicles annually, Wakefield will contribute to Aston Barclay’s plan of doubling its sales volume to 160,000 vehicles by 2022.

It will boast internal storage for more than 200 cars in a fully lit, air-conditioned, dust-free environment.

Aston Barclay’s Leeds auction base has outgrown its existing six-acre site following continued strong demand from vendors and buyers, and its 40 staff will be relocated to Wakefield.

Aston Barclay’s chief executive, Neil Hodson, said: ‘There will be no other auction like Wakefield in Europe.

‘It offers a five-star building with enough space to auction and store hundreds of cars all undercover. This further supports our ambition of revolutionising the UK remarketing sector.’

recoveries specialist at Banque PSA Finance.

Macklin has joined City Auction Group to develop a management tier, enhance the current operations and administration teams, introduce new vendors and help deliver higher volumes for the group’s 4/4/18 12:01 Page 1 successful auction events at Rockingham.

s sourcing good-quality stock becomes ever more competitive for dealers, identifying and retaining those retail-quality part-exchange cars is essential.

In the September plate-change period, dealers will see increasing numbers of PX vehicles, and sorting the wheat from the chaff will be critical to trading profitably.

BCA Dealer Pro allows dealers to appraise, value and remarket PX vehicles and maintain inventory at the touch of a screen, with the freedom to see what is available across the entire dealer group where applicable.

Available now as a fully functioning app, BCA Dealer Pro allows for the part-exchange process to be managed quickly and easily, helping dealers to appraise, value and retain or remarket part-exchange vehicles with the minimum of fuss and maximum efficiency.

The new Dealer Pro app makes generating a quality partexchange appraisal even more accessible for all dealers.

In partnership with BCA Partner Finance, the PX itself can be funded, helping cashflow and freeing up capital.

Operating within the Dealer Pro platform, it allows dealers to appraise the vehicle and then apply for funding based on the BCA valuation. All this can be done while the customer is on site, giving dealers flexibility to package an affordable deal for their customer, safe in the knowledge of the real-time view of the trade price for that vehicle.

It creates a unique stock-management solution for the market. The Dealer Pro platform enables dealers to monitor stock levels, refresh valuations and decide which vehicles to remarket through BCA, while BCA Partner Finance offers dealers secure funding to purchase used cars at BCA and through part-exchange.

Together, Dealer Pro and Partner Finance create a stock-management solution that is flexible and scaleable, allowing dealers to react quickly to market conditions and make the most of any profit opportunities that arise.

Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0845 600 6644.

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68 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 69

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

Latest data shows the strength in depth across used car market No surprise that demand from professional buyers softened a bit in July, but activity level was still healthy, says Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.

W

ith the hottest summer since the 70s sending temperatures soaring, seasonal pressures saw the headline average value slip by just £178 (1.8 per cent) to £9,463 from the June results. The strength of this year’s market continues to be emphasised with year-on-year values for July up by £501, a 5.5 per cent rise over the 12-month period, despite average age and mileage rising.

Having reached record levels in June, the average values for fleet and lease values saw a marginal reduction of just £97 to £11,101, although both dealer part-exchange and nearly-new values continued to climb.

It was no surprise that demand from professional buyers softened slightly as the hot weather and holiday season began, but overall market activity continued at very healthy levels in July. Buyers focused more attention on

cleaner vehicles that could be retailed more quickly, with poorly presented, damaged or incomplete examples needing to be sensibly valued to sell first time.

While fleet and lease values fell marginally, taken in the context that this was from record levels in June and we are in the peak holiday season, it demonstrates the strength in depth across the used car market. Underlining this, dealer partexchange stock posted the sixth consecutive month of record values at BCA and nearly-new values hit one of the highest points on record.

Average fleet and lease values slipped by £97 (0.8 per cent) to £11,101, with retained value against original MRP (Manufacturer’s Retail Price) falling by half a percentage point to 43.23 per

Average value of used car in fleet & lease sector :

£11,101

70 | CarDealerMag.co.uk

cent. Year-on-year values were up by £615 (5.8 per cent), with age rising and mileage declining, although both by small margins.

Average dealer part-exchange values improved by £33 (0.5 per cent) to £5,033, the sixth consecutive month of record average values in this sector.

Year-on-year values were ahead by £406, representing an 8.7 per cent increase over the 12-month period with age and mileage decreasing.

Values for nearly-new vehicles increased by £1,967 (8.7 per cent) to £24,377, the fourth consecutive monthly rise with values up by £5,616 – a significant 29.9 per cent increase – year-on-year.

As always, the effect of model mix and availability is significant in this very low volume sector.

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CarDealerMag.co.uk | 71

Real Deals.

Why this comically sized Toyota had an iQ well ahead of its years Ted Welford looks at the ingenious four-seat model which led the way in showing the benefits of compact cars.

I

t’s rare that you’ll see something that’s not a hot hatch, sports car or supercar in this slot, but this month we’ve gone for something a little smaller and cheaper, although one that’s no less clever.

While the rise of the cumbersome SUV was just beginning to get under way in 2008, Toyota was proving something entirely different – that practicality could come in miniature packages.

And this miniature package was a car which was as impressively innovative as it was small – being less than three metres in length and only 30cm longer than a two-seat Smart Fortwo.

But despite its tiny dimensions, it could squeeze in three adults, with the fourth seat behind the driver best kept as a child’s seat or folded down for luggage. With all seats in place, you’d struggle to fit more than a couple of A4 sheets of paper in the boot. It’s for this reason the iQ was imaginatively labelled a ‘3+1’.

Unveiled at the 2008 Geneva Motor Show, the production car varied little from the iQ Concept shown the previous year.

With the ‘i’ symbolising individuality, intelligence and innovation, and the ‘Q’ standing for quality, the forward-thinking iQ was ahead of its time – looking at the future of ‘social mobility’ years before other manufacturers would start releasing their concepts for this – few of which have materialised into road cars.

Unfortunately, as is so often the case with advanced cars, its availability was short-lived.

It remained on sale until 2014 when the model was canned. That said, buyers still had the option of the Aygo city car and Yaris supermini, although neither came with the flair and imagination offered with the iQ. Its looks weren’t (and still aren’t) suited to all tastes with its tiny front and rear overhangs, and its frankly odd road presence, but its innovative interior featured slim seats, clever dashboard packaging and flat-folding rear seats – undeniably touches of imaginative engineering genius.

Underneath the surface, there’s yet more ingenuity, with a compact engine, flat under-floor fuel tank and 72 | CarDealerMag.co.uk

The iQ features lots of clever engineering touches and this example has an excellent service history smaller air-con unit all maximising interior space and reducing the front and rear overhangs.

Sadly its size and high list price limited the iQ’s appeal, as a starting price of £9,500 for a city car was a lot of money in 2008. That said, it was nothing compared to what Aston Martin would charge for its glammed-up iQ – known as the Cygnet – in 2011, which goes down as one of the worst examples of badge engineering ever created.

The iQ’s standard 1.0-litre motor was painfully slow, but thankfully, a more powerful 98bhp 1.33-litre engine joined the fray in 2009 – the unit fitted to the model you see here.

At £3,995, it’s hardly the cheapest example

on the market. Prices tend to start from around £2,000 for cars equipped with the 1.0-litre engine, while £3,000 will get a 1.33-litre version, but not one as good as this.

Its 68,000 miles on the clock is not something worth shouting about, but what is worth mentioning is its spec. It comes with satellite navigation, leather seats and keyless entry. Add an excellent service history and pearlescent white paint, and we’re tempted to get our wallets out.

As this car is also the range-topping ‘3’ version, it comes with larger 16-inch alloy wheels and chrome mirror housings. This iQ has one of the highest specs you’ll find, as it comes with all four of the additional option packs offered on the new model in 2009 – amounting to £2,695 and including optional leather upholstery, which is a hefty chunk of extra spend on a city car which cost £11,495 new.

This example is for sale via Maidstone-based Mote Park Vehicles – a one-man operation which specialises in affordable, wellprepared vehicles.

Cars as groundbreaking as this don’t come around very often, that’s for sure...

Market Insight.

...in association with ASE-global.com

BCA has been much calmer after the withdrawal of the Apax bid for the business

Tough July spells summertime blues for motor retail stocks The month featured results from Inchcape and trading updates from Vertu and Motorpoint, says Mike Jones

T

he franchised motor retail stocks had a tough July, with falls in nearly all of the stock prices. We saw half-year results released by Inchcape and AGM trading updates from Vertu and Motorpoint. The Inchcape results saw strong distribution profits offsetting weaker retail, with the UK trading profit down significantly. Vertu reported that they were on track with expected performance.

Motorpoint reported that they were confident of delivering a full-year performance in line with management expectations.

Share price performance We saw a significant drop in the vast majority of the listed motor retailers during the month of July. The largest faller was Inchcape, on the back of their half-year performance update, but we also saw slippage in some of the other motor retail stocks. After significant gains in recent months, we also saw a steadying in the non-franchise stocks, with BCA being significantly calmer after the withdrawal of the Apax bid for the business.

In the current year, the non-franchise and support services average has outperformed that of the franchised motor retailers.

Financial performance Inchcape issued their half-year trading update at the end of July. Whilst the overall results

Share price movement since the start of 2018

Share price movement over the past month

Pendragon

-18.1%

-4.5%

Vertu

-3.0%

-1.2%

Lookers

1.9%

-3.1%

Inchcape

-9.8%

-9.6%

Cambria

-4.1%

-4.1%

Caffyns

2.4%

0.0%

Marshall

-4.8%

-4.2%

Motorpoint

11.2%

2.6%

BCA

14.6%

7.0%

Auto Trader

20.5%

-0.1%

showed encouraging revenue and profit growth, this was down to a strong performance from the distribution side of the business. The motor retail side showed significant vehicle margin pressure, with profits down 61 per cent. The UK was singled out as being particularly tough, being the principal driver behind the 60 per cent drop in retail trading profit seen in the UK and Europe region. The business suffered from a ‘supply and demand imbalance and the resulting elevated level of pre-registration activity causing pressure

on both new and used margins’. Vertu issued a trading update at their AGM, detailing that during the four months to June 30, 2018, the group continued to deliver profits in line with the board’s expectations.

There were like-for-like improvements in used and aftersales revenues and gross profits.

Whilst new sales volumes were ahead of the market, lower new retail, fleet and commercial vehicle margins were experienced as manufacturers continued to react to currency weakness. There was also an indication that the introduction of WLTP is producing short-term new vehicle supply volatility.

Motorpoint issued a brief trading update at its AGM, with Q1 trading for both sales and profit described as ‘solid’. Group stock and vehicle supply was ‘strong’.

Transaction activity Over the course of recent months, we have seen Teleios Capital Partners continue to build its stake in Pendragon, rising to a total shareholding of 12.6 per cent. By August 6, their stake had risen to 14.4 per cent, a significant rise from the 5.3 per cent it held at the start of June.

We will wait and see whether this acquisition continues to the point where they have to make a formal approach for the business.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month.

CarDealerMag.co.uk | 73

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Recruitment.

CONTINUING GROWTH

MITSUBISHI

Manufacturer strengthens academy with new recruit MITSUBISHI Motors in the UK has strengthened its dealer training academy with the appointment of Annette Baber Smith as the new aftersales training manager, responsible for the preparation and delivery of non-technical training.

Baber Smith, pictured, joins the company with over 22 years’ experience in the motor trade with various brands. Starting as an apprentice technician, she quickly moved through parts and service advisor roles and later progressed to the role of service manager.

While working as a service manager in 2008, Baber Smith completed a degree in automotive retail management at Loughborough University, and went on to become divisional contact manager for a large dealer group.

She said: ‘I am very pleased to be joining the Mitsubishi Motors in the UK training academy.

‘I have always believed that coaching and mentoring staff is an essential part of any managerial role, and to see people grow and fulfil their potential is particularly rewarding.’

Vertu Motors appoints new executive director

V

ertu Motors has appointed David Crane as its new executive director.

Crane, pictured right, joined Vertu at its inception in 2007 and has 25 years of experience in the automotive industry, working with both manufacturers and retailers.

He is currently the group’s chief operations officer, a role to which he was appointed last year.

Before he joined Vertu, Crane was the commercial director of Reg Vardy plc.

In his current position, Crane is responsible for the management and running of the group’s operations infrastructure, including aftersales support, IT, purchasing, fleet sales and ancillary business activities. In addition, he’s responsible for two franchised dealership divisions.

Following his promotion, Crane will remain instrumental in the strategic and operational development of the group and will continue in this way as a member of the board.

Robert Forrester, CEO of Vertu Motors, said: ‘David is a key member of the team which has

built Vertu Motors from an idea 12 years ago to the reality of being the UK’s sixth largest automotive retailer. David has been instrumental in the operational and strategic development of the group and the board will be strengthened by his appointment.’

Crane commented: ‘We have a fantastic team at Vertu and I am very proud of what we have achieved together over the last 11 years.

‘I am looking forward to working with the board as the group continues its growth in the evolving motor retail sector.’

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CarDealerMag.co.uk | 75

Data file.

James Litton

TRADER TALES

Why dealing with used cars can be like a round of golf

F

rom what I am told by people who play the game and love it, golf can be the most infuriating of sports.

Whilst it is possible to go out on a Saturday afternoon and play like Tiger Woods, it is more likely that the ball will end up ricocheting off trees, aquaplaning across lakes and burrowing into bunkers. However, one good round lives long in the memory and every time a golfer starts a new game, it is the ideal round which he or she is looking to emulate.

Used cars remind me of golf. How is it that you can buy the exact same car as one you had a few weeks earlier and returned a tidy profit from, only to see the next example go overage and blow your brains?

I have been canvassing opinions from many friends in the trade about the perfect used car process, and every person has a different idea. Some have a disposal policy, some retail to the end. Some have a write-down budget, some take the pain as and when it happens. Whatever way a used car process works within a group, there is no silver bullet to deal with ageing cars with no profit.

This predicament is as old as the game of golf, but whilst the length of a drive off the tee has improved and average round scores have come down over time, used car performance is going the other way.

This issue is exacerbated within franchised dealer groups, particularly with those brands beholden to a branded used car programme.

In my opinion, manufacturers are pushing retailers so hard to deliver purchase and sales contracts designed to prop up residual values, that there is very little financial benefit outside of aftersales parc growth and F&I upsell opportunities.

It’s a situation that’s far from ideal. Approved warranties are too expensive, sales bonuses are not big enough to counter punitive purchase prices, and customer expectation levels of condition often lead to large refurbishment bills meaning the dealer is left with next to nothing.

I spoke to one retailer who has not made a single penny on cars bought from the brand in 2018. Had they even managed to break even, the site would be £93,000 better off.

The big winners are used car supermarkets.

Representatives of those companies can show up to auctions, get heavily discounted fees due to their purchase volume, avoid as much prep as possible, add minimal warranty coverage, and are buying in the open market.

This can make the cost differential more than enough to a consumer to justify the supermarket option.

I don’t blame supermarkets though. Many are highly skilled, process-driven machines, and I could no doubt learn a lot from them.

‘There is no silver bullet to deal with ageing cars with no profit.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves.

76 | CarDealerMag.co.uk

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Customer failed to notice our juvenile badge prank

L

et’s face it, the 1980s were a wonderful time to be alive. Mrs Thatcher was in Number 10, Return of the Jedi was in cinemas and AC/DC was on the radio. Life was good – at least for some people.

It was also the decade when I first entered the motor industry, leaving school at 18 and joining the sales team at a small used car dealership.

It was fairly uneventful most of the time, so as a young team there was plenty of banter to keep spirits high.

I do recall one incident in particular though that could have very easily backfired on us.

We had an Austin Montego in stock that was only a couple of years old (yes, that’s how far back we’re going now). I don’t remember much about it – only that it was brown and unappealing.

For those who don’t remember the Montego, it’s the car that was sold with such terrible slogans as ‘Montego faster’ and ‘Austin Montego – what a car’.

These slogans were, of course, total nonsense because the Montego was an absolute dustbin, even back in its day.

That’s why we wanted to get rid of this example as quickly as possible.

Fortunately, a willing customer came along just a few days after the car landed on our forecourt. Unfortunately, he was a nightmare.

He was unbearably rude to every member of staff he encountered and constantly asked inane questions about the inner workings of the Montego.

When I took him on a test drive, he even told me to shut up when I was showing him how the radio worked.

I couldn’t stand the man.

By the time we got round to preparing the car for handover, we were so fed up with this horrible bloke that we decided to play a rather childish joke on him.

We removed the letter ‘e’ from the Montego badge at the back of the car and then turned the ‘M’ upside down, so the whole thing spelled ‘WONT GO’, which was as grammatically close to “won’t go” as we could get.

The irritating customer later came along to pick up his new wheels and failed to notice that we’d taken the mickey out of his new pride and joy.

Looking back, we were very lucky to get away scot-free with that one. Nowadays there’d probably be some sort of inquiry and we’d all be in deep trouble...

‘He even told me to shut up when I was showing him how the radio worked.’

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 | 77

Key Notes.

...in association with Traka

Subscription idea well worth a look Paul Smith, director of Traka Automotive, discusses the potential of ‘Mobility as a Service’

O

ne of the interesting trends I picked up while walking the floor of CDX this year, was the rapid progress of ‘Mobility as a Service’ (MaaS) start-ups like Drover. Drover is less than three years old but has completed two successful funding rounds and garnered a total of £7.5 million of investment capital.

It started in January 2016 as the preferred partner for the provision of vehicles for Uber drivers in Liverpool, Manchester and London.

Having cut its teeth dealing with the numerous operational pressures associated with Uber driving, ie high mileage, high vehicle turnover, large volumes of accidents, maintenance issues and even the processing of parking tickets, it launched its business-to-business/retail partnership offer aimed at car rental firms, OEMs and car dealerships in February this year.

It is currently building a network of more than 100 retail partners and has already signed up Avis, Budget and Europcar on the car rental side, as well as BMW direct and two dealership groups with Nissan, Mazda, Peugeot and Honda franchises. Half a dozen more dealerships are close to signature at the time of writing.

So, what is the attraction for dealers? Drover says that it is finding favour with medium to large-sized dealers selling around 100-plus new cars per month, although they are also talking to smaller dealerships with a strong focus on serving the customer in a more flexible way.

Matthew Caudle, head of fleet partnerships & operations at Drover, explained: ‘Our offer is a response to changing customer behaviour amongst younger people. Nearly all Drover

subscribers are between the ages of 25 and 40 years old and the average age of all our customers right now is 37. Millennials tend to make the vast majority of their purchases online and they access nearly all the services they use on an affordable, flexible monthly subscription basis – from Netflix to Amazon Prime and Microsoft Outlook 365.

‘We just bring the subscription model to car buying and, in the process, take out the hassle of haggling at initial sale/lease by offering an online, all-in, total monthly cost including maintenance, tax, insurance and even a reduction on fuel through specific Drover fuel partners.’

So how are the deals cut with the dealers?

Essentially, Drover offers dealers the opportunity to earn an income on pre-reg, ageing, demo, used and existing rental stock. Dealers simply need to decide what types of (age, model etc) vehicles they are able to make available to Drover and at which monthly price, building in maintenance liability into that figure. They retain ownership of all cars they offer for usage via Drover.

Drover is then able to give them insight, based on the thousands of cars it’s currently renting out, into what the estimated take-up is likely to be on those models at agreed subscription prices. Dealers then provide their stock feed to Drover for uploading and online promotion at full bundled prices once Drover has added its 12.5 per cent sales commission and its insurance estimate.

It’s a great way for dealers to reach the younger buyer market which many dealers struggle with.

It’s also a good way of monetising excess pre-reg, demo and ageing stock – taking the pain out of write-downs which have been a drag on many

dealers’ profitability since early last year.

It also offers a regular subscription-based income stream. Dealers no longer need to rely solely on new car sales or servicing income which can be lumpy. This lumpiness can of course stimulate excess pre-reg.

Regular monthly subscription from underutilised stock may supplement or replace some monthly subscription-based F&I-based income.

Most vulnerable right now is income from Guaranteed Asset Protection (GAP) insurance sales. GAP sales fell by between 16 and 23 per cent following the Financial Conduct Authority’s intervention in this market in September 2015.

What, if anything, is likely to prevent dealers talking to Drover when they come calling?

Is Drover using data intelligence about your customers (that it signs up to the service) to stimulate rapid switching and – as they bring more dealers on board – offering more choice of vehicles which they might get from a competitor dealership? There is no evidence or reports of this yet.

Is there likely to be a conflict of interest if they have direct relationships operating with OEMs which happen to be the same as yours? In theory, yes, so you will need to assure yourself that proper Chinese walls exist so that your proprietary stock data is not flowing to the OEM. However, by and large, the new subscription model looks well worth exploring for dealers and rental businesses alike, particularly those facing tightening margins on the sale of new cars and seeing pre-reg, demo and ageing stock as a growing threat to profitability.

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.

Keys can make you money…

Find out how at www.traka-automotive.com The only viable key management solution for automotive Email automotive@traka.com or call 0845 225 2910 78 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1

15/12/2016 09:56

Long-termers.

LATEST FROM THE FLEET...

Audi SQ5 A series of unfortunate events is starting to cause alarm for our long-term Audi custodian.

by JAMES BAGGOTT @CarDealerEd

I

’ve spent a lot of time behind the wheel of our Audi SQ5 lately, and while singlehandedly attempting to make a dent in the world’s stock of super-unleaded, I’ve also had a lot of time to think about things.

At the foremost of my mind, a pressing quandary: They say bad luck comes in threes – but how do you know what actually constitutes bad luck? My point being, at what level does a mild annoyance become a full-blown recordable bad luck event?

I ask because my little green SUV seems to have suffered a spate of problems recently and I’m trying to work out whether I’ve hit the triple.

Let me explain. First up was a car park prang that left me nothing short of fuming.

Parked up in one of those multi-storey concrete monstrosities in a space that was barely big enough for a Smart car, let alone an SUV, I delicately squeezed myself out of the Audi, careful not to touch the BMW parked poorly next to me.

When I returned an hour later, my fellow German car driver had not been so cautious. As they’d exited the space, I can only assume in the manner they entered it (with their eyes closed), they scraped the SQ5 behind the front left wheel.

Most of the damage has polished out, but there’s still a noticeable fold in the paintwork.

Naturally they hadn’t left a note, so I’ll have to sort some repair work. Bad luck, strike one.

A few weeks later, a strange fault developed.

When I started the Audi, the tyre pressure warning system shouted at me loudly. It said the right rear rubber had lost pressure and to reset the car’s sensors. I’ve investigated and pumped the tyre up but it still seems to be playing up. I think it’ll need a trip to a dealer.

Strike three is the questionable one. It could be the fact the keyless entry has an intermittent glitch. Every now and then, it refuses to open at the pull of the handle just as it should when it senses the key is nearby. It’s annoyingly infrequent and hard to pinpoint why it does it.

I’m unsure if that counts as a strike or if the next one does. During the recent hot spell, I’ve been leaving the sunroof open while the car is parked in the sunshine. Cleverly, the Audi lets

James and his long-term Audi SQ5 have had mixed fortunes lately – has he hit the triple?

THE KNOWLEDGE Model: Price (as tested): Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions (CO2): Mileage:

Audi SQ5 £64,405 3.0-litre TFSI 349bhp 500Nm 155mph 5.4 seconds 34 195g/km 4,901

THIS MONTH’S HIGHLIGHT: The fact I’m still enjoying driving the car despite my recent run of bad luck. you open the sunroof but keep the mesh blind in place so the heat escapes but things don’t fall in.

Unfortunately, it’s not an infallible system.

After parking under a tree, I discovered that while the mesh blind might stop things falling in, it also acts as a perfect sieve, helping to beautifully and liberally distribute a huge bird lime strike across the leather seats. It wasn’t particularly the easiest or most pleasant thing to clean up either.

Whether the key problem or bird strike can be classed as bad luck instance number three is up for discussion, but I’m certainly hoping they can be and that I can get back to enjoying the fabulous off-roader.

I still love driving the Audi, and I enjoy the popping exhaust note and its rapid turn of speed on every journey. Yes, it might have a horrible drinking habit (currently 25.9mpg), but it’s wonderfully comfortable and the multimedia system is a joy to use. It almost makes the money spent on fuel bearable. I’ve even treated her to a detail from our resident car-cleaning expert and she’s come up beautifully.

I’m still unsure quite who the target buyer is for this high-performance, petrol-powered SUV, but I for one am certainly enjoying running the Audi, despite the latest poor run of form.

Next up on the to-do list is getting some quotes for that car door repair and remembering to shut the sunroof when I park under a tree. I think I might put a Post-it Note on the dash to remind me of the latter, as I don’t fancy another rubber-gloves-and-scrubbing session thanks to Sally the seagull’s perfect shot.

CarDealerMag.co.uk | 79

Long-termers.

LATEST FROM THE FLEET...

VW Transporter Kombi This vehicle combines the ability to carry five people with a massive and very useful load area.

by JACK EVANS @jackrober

W

ell, what do we have here then?

You may recall that a little while back we had a Volkswagen Amarok – the all-singing, alldancing V6-powered pick-up.

That’s left us now though, and this is its replacement – the Transporter Kombi.

And while it may not be suited to tackling snowy roads or steep mountain gradients quite like its four-wheel-drive stablemate, it does still have a few tricks up its sleeve.

You see, being a Kombi van, this combines the people-carrying ability of a personnel van with the practicality of a traditional panel van. So inside you’ll find a second row of seats followed by a large, square load area. Hence, Kombi – or combination. See what they did there? It’s also a short-wheelbase van, which – to my mind at least – is the best-suited layout for most jobs.

But what’s powering this vehicle? Well, under the bonnet sits a pretty traditional 2.0-litre turbocharged diesel, which produces 148bhp and a useable 340Nm of torque. It’ll hit 60mph in 11.7 seconds (unladen, of course) and top out at 113mph. Power goes to the front wheels through a six-speed manual.

Now, the powerful V6 in the Amarok was a brilliantly strong unit, and there was something to be said about a pick-up that can outpace even reasonably punchy hatchbacks, but then at times it was only averaging about 30mpg. And that’s where the Transporter chimes in.

You see, Volkswagen claims that this van will do 45.6mpg combined, and so far that seems pretty much on the money. During daily driving, it’s been averaging well over 40mpg – which is impressive for a vehicle of this size. Of course, it doesn’t feel half as punchy as the truck, but there’s still enough poke there for most circumstances. If you’re after an all-out sports van, then we’d recommend the bi-turbo version.

Our van is also finished in special ‘Edition’ specification. You may notice the exterior decals on the flanks and rear of the car, but what else do you get as part of this special equipment pack?

Well, for starters you get Volkswagen’s full Discover Media system, which houses satellite navigation and media functions.

80 | CarDealerMag.co.uk

Jack took a trip to the local lifeboat station for our new arrival’s welcome photo call

THE KNOWLEDGE Model: Volkswagen Kombi Edition T30 SWB Price (as tested): £38,789 Engine: 2.0-litre turbocharged diesel Power: 148bhp Torque: 340Nm Max speed: 113mph 0-60mph: 11.7 seconds MPG: 45.6 Emissions (CO2): 162g/km Mileage: 6,854 THIS MONTH’S HIGHLIGHT Getting good levels of fuel economy out of a sizeable and well-equipped vehicle.

Some of the biggest bonuses with the Edition trim line are the inclusion of front and rear parking sensors, along with a reversing camera.

Short-wheelbase it may be but this van still takes a little effort to park, and these features do remove some of the sting from positioning the vehicle. You’ll also see a high-gloss black roof and matching wing mirrors highlighting the exterior of the car, and these look excellent against the metallic white paint. The 17-inch alloys are included as part of the Edition spec too, and they do add to the van’s overall aesthetic.

Then we come to the price. You see, vans ain’t cheap – and the Transporter Kombi is no exception. Prices for the basic, no-frills Kombi van start at £30,125. That’s a lot of money in anyone’s book. This van, in Edition spec, weighs in at £38,789. But that said, it does combine the ability to carry five people with a massive load area. It’s also one of the most car-like van driving experiences you’ll find on the market today.

OTHER CARS WE’RE DRIVING

Seat Arona Xcellence Lux Mileage: 6,605 Smart, sharp and bang up to date, it’s a vehicle that’s certainly well suited to Car Dealer Dave (not). More trips to Gloucestershire and London have been dispatched with ease in recent weeks.

Vauxhall Grandland X Fully loaded, L9 VXL makes short work of a house move – and is still impressively frugal with fuel.

by TOM WILTSHIRE @mctreckmeister

O

ne of the perks of this job is having access to big, practical cars whenever you need to move large loads.

One of the downsides is having access to big, practical cars whenever your friends, family or random acquaintances need to move large loads.

And so it was that L9 VXL and I got called into action to help two of my friends condense their two Bath flats into one as they moved in together.

Of course, a van would have been the ideal transport for this, but the Grandland X has plenty going for it when it comes to acting as an impromptu delivery vehicle. First of all, as I’ve mentioned in previous reports, it’s a big, capacious car. Fold the rear seats down and there’s a 1,652-litre load bay, plus a flat floor courtesy of the boot divider on our car.

With some creative packing, we managed to transport everything from clothing to sofas across the city. The wide tailgate opening made loading easy, although the fragile blind for the panoramic sunroof necessitated some careful loading. I also had the opportunity to make use of the Grandland’s built-in 4G hotspot – stringent parking regulations meant I had to remain with the car as my friends unloaded, giving me plenty of time to browse.

Normally I find myself wishing our Grandland

Tom found his long-term Grandland X ideal when it came to helping out with a house move

X had a torquey diesel engine, but a day of stopstart driving made me glad we had the petrol. I always feel a little guilty using a diesel engine for repeated short trips, knowing full well that while it’s cold it’s at its most polluting.

I had no such qualms with the petrol, zipping back and forth many times over the course of the day. The 1.2-litre unit still grates with its lack of low-end shove, though – the rolling hills of Bath and a fully loaded car proved challenging for it

and it required some serious revs and plenty of unsatisfying rowing through the notchy, six-speed manual gearbox.

Again though, I found myself surprised at the fuel economy. An entire day of stop-start traffic saw our average figure drop a little, unsurprisingly, but the car’s still returning 43mpg overall. I don’t think I would have achieved any better in the equivalent diesel on that day.

Outside of being a delivery van, the Grandland’s mostly been racking up the miles heading to and from airports and launch venues.

I’m sad to report, though, that it’s still to blow me away in any department besides the continued decent economy.

I’m finding myself coveting my neighbour’s own compact crossovers – never a fun position to be in – and avoiding the Grandland in favour of almost any other car we have in the office.

However, soon we’ll get some time in a highspec Grandland X ‘Ultimate’ fitted with – blessed be – a 2.0-litre diesel engine. We’ll report back on whether this improves the Grandland experience as much as we’re hoping.

THE KNOWLEDGE

Citroen C3 Aircross

Kia Stonic

Mileage: 7,725

Mileage: 4,403

Cheryl continues to be impressed by the all-round ability and distinctive, quirky looks of KS67 OVH. It’s certainly a car that will be much missed when the time comes for it to be returned to Citroen!

Ryan headed north to attend a gig in Manchester and meet his new baby nephew in Hull. He covered around 1,000 miles on the trip and the Stonic proved a comfortable motorway cruiser.

Model: Vauxhall Grandland X 1.2 Turbo

S/S Sport Nav Price (as tested): £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 (CO2): 117g/km Mileage: 9,343 THIS MONTH’S HIGHLIGHT: Helping my pals get settled in their new home.

CarDealerMag.co.uk | 81

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

No such thing as a bad car? Yes there is – and I nearly drove it into the sea...

N

ow, I’ve learnt my lesson and paid the price on far too many occasions – character assassinations get me into trouble. But sometimes, just sometimes, they’re justified. I mean every now and then we motoring journalists need to be free to have an opinion – and opinion is what this is.

I’ve heard many people say it – ‘there is no such thing as a bad car any more’ – but you know what? That’s horse crap. There are plenty of dreadful, dreary, poor and utterly useless cars on the market.

Over the past week, I have had the misfortune to suffer one of these hateful cars and I feel an unquantifiable need to put angry fingers to my computer keyboard to tell you about it.

First there are the looks. The exterior and interior of this car – which will remain nameless for now – have been vajazzled with all the skill and style of a blind badger. Littering the interior are hideous flicks of ‘flair’ that a magic mushroom-eating designer with more say than the engineering team must have insisted would ‘improve’ the cabin.

The buttons look like pieces of overcooked, oven-baked ham; the clock, a poor imitation of a Salvador Dali melting timepiece, is impossible to read, thus rendering it a failure in terms of meeting its primary objective, while the quilted seats and door panels really should have been left in the Ikea reject bin, where I can only assume they were stolen from.

Outside, the lights are needlessly fussy – the rears looking like they’ve been wrapped in a red fence.

Then there’s the gaping front grille that only serves to remind me of a bottom-feeding fish, usually found sucking excrement from a marina seabed.

Then there’s the usability of the car’s ‘technology’ to contend with. I can only imagine the designers of the media system wanted to claim the title of most infuriating and impossible-to-use human-machine interface ever.

They succeeded, usurping Windows 95 from the top spot. It’s like they designed it while drunk, then carried out a usability survey that deemed it impossible to use, which they weren’t happy with, so made it harder.

I’ve never had to consult a handbook so many times in such a short space of time to find out exactly nothing I wanted.

For some reason, the car bonged at

fire-alarm decibel levels, emitting the sort of sound that makes you want to soil yourself. Incessantly. When I realised it wasn’t bonging because death was imminent and deduced it was in fact merely warning me of speed cameras somewhere within a 10-mile radius, I attempted to turn it off.

A simple request, you’d think, but one I’ve since realised that Google, other humans or the car’s manual cannot solve.

In fact, I’m sure the only way it’s possible is by driving it into the sea, which is where you can now find it.

No, I jest. It’s not at the bottom of the Solent, purely because it’s so hideous I’d have been fined for polluting.

The whole multimedia system is so horribly complicated that without a degree in computer science most normal humans will struggle to even turn it on and off.

The buttons are placed where your hand rests, so you keep turning on the wrong functions, and I honestly couldn’t work out how to plumb an address into the sat nav. I’m sure that, given another year or so with the car, I might have eventually worked it out, but that would have meant spending 364 days at the bottom of the ocean, because that’s where I’d have pushed it after a day behind the wheel.

Then there’s the driving characteristics.

Never have I driven such a floaty car that wafts and wallows from corner to corner in such a sick-inducing fashion.

Apparently, this is a ‘thing’ – an engineering decision that customers actually wanted. Quite who these customers are who want a car to float like a butterfly and sting like one too is beyond me, but they’re apparently out there. Somewhere.

The steering wheel is too far away and the seat not comfortable enough when you move closer. In fact, I’d describe the driving position as stool-like. The bar type, not the other type.

Although both are accurate descriptions.

I’ve driven some brilliant cars but never have I driven one quite so bad as this. It made me angry.

Shouty even. Obviously, this is purely a personal opinion – I’ve actually read some good reviews of this car – but then each to their own. I can only imagine buyers agree as the brand’s currently running around 25 per cent down year on year, and that’s despite this car being launched. If you don’t believe me, try a DS 7 for yourself. Oh…

‘The buttons look like pieces of overcooked oven-baked ham.’

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.

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A GREAT PART-EXCHANGE

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