Car Dealer Magazine: Issue 136

BIG MIKE: MX-5 REPAIR THAT LANDED ME IN A ‘HOLE’ LOT OF TROUBLE

Issue 136 | July 2019 | CarDealerMag.co.uk | £5

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R E P U D A R P U S TOYOTA’S

A SPORTS CAR ? ) F O R E K C A R C A DRIVEN: IT’S ELL IT’S A BMW IN DISGUISE ( BUT CAN YOU T

PLUS: ANTY THE BEST WARR RANCE AND TRADE INSUHOOSE PROVIDERS TO C

U O Y T A H W 9 1 CDX 20 O P X E R U O T A MISSEDTURES FROM THE BIG EVENT REPORTS & PIC

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We rely on the compliance expertise that Close Brothers “ Motor Finance brings to our partnership. They offer guidance on completing our Gabriel returns, feedback on our advertising, and the support they provided with the introduction of GDPR was invaluable.

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Editorial ACTING HEAD OF EDITORIAL Jack Evans

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HEAD OF DESIGN Graeme Windell

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PRODUCTION EDITOR Dave Brown

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Welcome.

IT’S not very often that I’m described as a VIP – but it happened on the day of CDX. That’s me on the right, with some of the most influential figures in the automotive industry at the special lunch we hosted for selected guests and our headline partners.

It was a convivial (and quite peaceful!) hour or two during a very busy day at Farnborough International. But ‘what a day it was’, as the headline writers say.

This year, we focused more than ever on the quality of our workshop sessions and Live Stage presentations.

And when we recruited names such as Barclays, CitNOW, CarGurus, Google and Cox Automotive to give their latest findings and thoughts on the industry, we knew we were heading in the right direction.

If you’re a follower of Car Dealer’s events and activities, you’ll be aware that we have held CDX at various venues over the years. Silverstone, Manchester Central and the former Rockingham Motor Speedway have all been tried and tested in the past.

The decision isn’t mine to make, but I’d be surprised if we don’t seek a return to Farnborough International next year. Of course, it’s impossible to find a location that’s convenient for everyone across the length and breadth of the UK, so the next best thing is to find a place with decent transport links and pretty close to our biggest centre of population. Farnborough would seem to tick both boxes.

It was great to catch up with friends and colleagues, and the venue seemed to be a great fit for CDX. The workshop rooms were packed, the Business Hub worked well – and I was delighted to have been proved wrong on one key point.

I’d always said that 9am was a bit on the early side to start the keynote sessions and workshops – but as soon as the doors opened at 8.30, a large audience started to gather at the Live Stage to hear Spencer Scott of CarGurus get proceedings under way.

As organisers of the event, the first hour or two is always a bit nerve-racking. Will the weather be kind? Will any of

our special guests get caught up in motorway traffic? Will James Baggott get a little bit angry if he doesn’t have time for a second cup of coffee?

There are quite a lot of things that can potentially go wrong, but as I watched the crowd form in the early hours of the morning, I had a feeling CDX would be a huge success. And I’m delighted to say that it was.

Full coverage appears on pages 6&7 and pages 38-47.

ONE of the most recognisable faces at CDX each year is that of Rebecca Chaplin, editor of Car Dealer Magazine and pictured above among the VIPs. Her duties include meeting and greeting our special guests, grilling panel members on the Live Stage and generally bossing me around as I carry out my reporting duties.

Unfortunately, I’m going to have to correct myself and say ‘former editor’ as she left us a couple of days after CDX to head to pastures new. Sad news but thank you for everything, Becca! You’ll be missed.

Who will accompany James on the Live Stage at CDX next year? Come along and find out !

SO, what’s next in the Car Dealer calendar? The answer to that question is Car Dealer Power – the annual chance for independent and franchised dealers alike to have their say on the manufacturers and suppliers they do business with – resulting in prestigious awards for the top performers.

Having been involved with the awards scheme for a number of years now, I know how much winning a gong can mean. It really is a first-class promotional and publicity tool for those who emerge triumphant, and you can also have a go at those who are annoying you – all done anonymously of course. Turn to page 16 to find out more.

Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

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CDX 2019

John Tordoff, Daksh Gupta and John O’Hanlon drew a big audience to the Live Stage at this year’s CDX. For full event coverage, see pages 6&7 and pages 38-47

Round-up of news from right across the UK

ISSUE 136 I JULY 2019

Dashboard.

Big Stories: CDX Live Stage panels Around the UK Ford’s ‘Bridgend betrayal’ Car Dealer Power Well-known dealer group ‘reborn’ Motorline expands with Nissan Big Mike Feedback Around the World Finance

6 10 14 16 18 20 25 26 28 30

Features.

38

CDX 2019

Data File.

The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock Market Insight Sean Speaks

Forecourt.

34 36

BMW M850i Toyota Supra

Suppliers Guide Long-termers James Baggott

58 60 64 66 68 69 70 73 76 79 82

BCA branch expands apprenticeship scheme

James Baggott on some shocking mobile phone service

Our events...

As voted for by dealers, Car Dealer Power is unique. Get involved with the 2019 survey online at cardealermagazine. co.uk/powersurvey/

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. The 2019 awards will be launched in the next edition of Car Dealer: issue 137.

Car Dealer’s automotive trade expo features the Live Stage, workshops and much more. The 2019 event took place at Farnborough International in June and full coverage appears in this issue !

CarDealerMag.co.uk | 05

Dashboard.

FARNELL

‘Fantastic’ result of £4m spend on JLR retailer FARNELL Land Rover has unveiled the results of a £4m investment in its retailer in Guiseley, West Yorkshire.

The redevelopment – part of an ongoing investment programme by Vertu Motors, which operates the Farnell brand – has introduced a new workshop and expanded the retailer’s existing showroom.

It features a dedicated vehicle handover area, barista bar, MOT testing area, four-wheel alignment facility and increased number of technician bays.

The 10-car new showroom has been designed in line with the Jaguar Land Rover Arch concept to showcase new products, in addition to state-of-the-art servicing technology.

Steve Whitaker, who is local to the Guiseley area and has more than 20 years’ experience in the motor retail sector, will oversee the site.

He said: ‘This is a huge investment for Guiseley, and it displays Vertu Motors’ confidence in the area.

‘The result looks amazing and it represents the brand in a fantastic way.’

AA CARS

Happy to buy without viewing ELEVEN per cent of motorists have bought a car without viewing it first as the rise of online marketplaces with comprehensive listings has improved consumer trust in car dealerships.

Classifieds site AA Cars surveyed 19,350 drivers and found that car buyers are ‘willing to put aside previously held reservations about used dealerships’.

06 | CarDealerMag.co.uk

THE BIG STORIES

Brexit, oversupply of new cars... and the gin palaces that smack of arrogance There was some frank speaking on the CDX Live Stage this year – and a wide range of topics covered by our panels of dealer and manufacturer bosses.

A

no-deal Brexit could lead to a 30 per cent decline in the new car market.

That’s according to Stephen Norman, managing director of Vauxhall Motors, who was one of the three bosses on our manufacturer panel at this year’s CDX. He was joined on the famous Car Dealer Magazine Live Stage by Citroen boss Karl Howkins and Rob Lindley, managing director of Mitsubishi Motors in the UK. All three gave a fascinating insight into the state of the UK automotive market – with Brexit, naturally, front and centre as a topic of debate.

Discussing the possibility of the UK leaving the EU without a deal in place, Norman, who has been in his current role for almost 18 months, said: ‘The biggest single worry that we should have is the short-tomedium-term effect on the demand for new vehicles.

‘We have been oversupplying the UK market so much in the last five to 10 years that many, many consumers can take a new vehicle holiday for two or three years without feeling it. That will have very rapid consequences for the industry. I think the biggest worry of a no-deal Brexit will be that the market will contract, not unfortunately by 10 per cent,

but much more likely by 30 per cent.

And the reason it will contract by 30 per cent is because alone amongst European markets, the UK market has been so desperately oversupplied in recent years. It’s not for nothing that the big manufacturers make less money in the UK at a given exchange rate than anywhere else in Europe.’

He added: ‘A UK car market of 2.3 to 2.5million-plus vans has nothing natural about it. The level of discounting we are all putting into the industry has nothing good about it. So a certain normalisation of the industry will be beneficial, but it may take a number of years before demand increases again.’

Car Dealer founder James Baggott pointed out that Vauxhall was one of the brands pushing product into the market for many years.

Norman responded: ‘We still are.

You don’t suppose my arrival has changed anything, do you?

‘The reason we are pumping vehicles into the market is because for

‘The level of discounting we are all putting into the industry has nothing good about it.’

Stephen Norman, managing director, Vauxhall Motors

silly reasons we are holding a historic market at an artificially high level and supporting it at levels of discount that mean our profit margins are lower here – exchange rate permitting – than anywhere else in Europe.’

Turning to the potential downsizing of dealerships, Norman said it was a move that was ‘long overdue’ – and made a point about ‘some of these gin palaces that we see going up’. He said: ‘We mustn’t ask dealers to invest in something that is brand-specific. In Vauxhall, we have things called brand centres – and all they’re good for is to be brand centres for Vauxhall. I don’t know what sort of arrogance was behind that decision but you couldn’t afford to do that today.’

Online car buying was another topic that cropped up during the debate, with Mitsubishi boss Rob Lindley discussing his company’s Buy Online system. He said: ‘Although it’s an important aspect of the sales process, what we are still seeing is that the overwhelming majority of sales that happen and which are enabled by the Buy Online process still happen through a dealer.

‘The dealer has got a very long future in the business and showrooms are absolutely a critical part of that.

‘It does concern me when I see some of the enormous investments that some dealers have been required to make in certain franchises and that’s not really where we are. A £15-to-£20million investment at the moment would frighten me to death if it was my business. At Mitsubishi,

Another lifeline for Vauxhall’s Luton plant.

Sliding Doors, p61

From left, Rebecca Chaplin and James Baggott of Car Dealer with manufacturer bosses Stephen Norman, Karl Howkins and Rob Lindley

we try to operate with a more modest showroom footprint.’

Online retailing is only going to get stronger and stronger as the younger generation get to the point of car ownership, said Karl Howkins.

‘You know the time when people research products,’ he said. ‘I’ve got youngish kids, you get them to bed at eight o’clock – what do you do then? You get the iPad out and start configuring. The danger is that we’re closed as a manufacturer; a lot of dealers are closed. Is the response time as quick as booking a flight or a hotel? No, not in a million years. As an industry, we are way behind.

‘I still believe, for the dealers out there, that customers still want to come in and see and touch the product.’

Returning to the theme of Brexit, Rebecca Chaplin asked whether the panel thought it would ‘kill off’ the British car industry. Howkins replied: ‘As a country, we have been through lots of challenges. Brexit is something the country will deal with. If the market reduces by 10 per cent it will come back and the other 90 per cent will still be going.

‘Clearly, from our side and probably from the dealer’s side, we will probably have to work harder than before in a condensed industry, but I think it is all cyclical.’

More CDX coverage, p38-47

We’re focusing on used cars and aftersales USED cars and aftersales offer a route to success when times are tough in the new car market, a packed Live Stage audience heard at CDX. John O’Hanlon, chief executive of Waylands Automotive, Daksh Gupta, boss of Marshall Motor Group, and John Tordoff, CEO of JCT600, joined Car Dealer founder James Baggott to discuss the state of the automotive industry in what continue to be turbulent times.

Asked which areas of his business were excelling, Tordoff, who as boss of JCT600 heads up 51 centres across Yorkshire, Lincolnshire, Derbyshire, Nottinghamshire and the north-east of England, told the audience: ‘Three or four years ago, we took a conscious decision to improve our used car and aftersales performance. We’ve always been relatively strong with it but we just put a lot more focus behind it. That certainly drove our performance last year and we can see further growth ahead.

‘The new car market is just so volatile. It’s difficult to make a business case to just focus on new cars these days. If you focus on used cars and aftersales, you give yourself more of a degree of control away from the pressure that the manufacturer puts you under every day.’

Indicating that Marshall, which has 106 dealerships nationwide, has also upped the ante on used cars, Gupta said: ‘We took a conscious decision to do this post-Brexit – we knew the new car market was forecast to decline and that has happened. I believe the new car market will be three or four per cent – maybe even five per cent – down this year.

James Baggott with (from left) Messrs Tordoff, Gupta and O’Hanlon ‘For us, we made a strategic decision to focus on used cars and that’s really worked for us. Last year, our used volumes were up 2.3 per cent and our revenue was up 8.1 per cent. We also had a 13.1 per cent improvement in gross profit which equated to £7.5 million. That improvement more than offset the decline for us in new cars and we were able to deliver record results last year.’

O’Hanlon, who as boss of Waylands Automotive represents only Volvo at its dealerships in Oxford, Newbury, Reading and Swindon, said: ‘I think it’s slightly different for me. The joy of Volvo this year has been its absolute strength. We’re up 34 per cent year-on-year after a terrific 2018.

‘Part of my challenge is absolutely maximising every opportunity coming in. Yes, we’re working really hard on used, working really hard on aftersales, and also for Waylands it’s about trying to build our brand. Volvo is in a happy place. It’s got some fantastic product all arriving at the right time.’

CarDealerMag.co.uk | 07

Dashboard.

Unmasked! How my secret hobby was my downfall.

Confession, p77

Welcome to the club! Hendy rewards loyal staff HENDY has honoured long-serving staff at its annual 25-Year Club event that recognises the growing number of loyal employees within the company.

This year, 14 members of staff joined the club, taking the total to 155.

The new club members this year comprise new car sales director Paul Murrells, who works across the group, service technicians Richard Allen, Donald Kent and James Cheetham, plus parts business account manager Helen Ship.

Also welcomed into the club were Matthew Robinson, who is Kia assistant new sales manager, parts manager Colin Norrell, director Andrew Stevenson, area parts manager Tim Fry, parts administration team leader David Martin, systems and resources director John Hendy, parts driver Martin Phillips, sales administrator Pauline Allen and driver Andrew Packer.

Hendy took the staff and their partners to the Four Seasons Hotel Hampshire in Dogmersfield, where activities included cocktail-making and a falconry experience plus a woodland adventure and croquet, followed by a gala dinner.

Hendy chairman Simon Gulliford, front left, and chief executive Paul Hendy, front right, with new members of the 25-Year Club

FINANCIAL RESULTS

Pendragon shares plunge following profit warning over hefty half-year loss C ar dealer Pendragon saw its shares hammered after warning that it expected to be ‘significantly’ loss-making in the first half of the year as it tackled trading woes and a slew of unsold used cars.

The Evans Halshaw and Stratstone owner’s shares plunged by more than a fifth to 17.21p on June 12, having dropped as much as 27 per cent at one stage on the alert. It said it was set to return to profit in its second half, but the dire half-year trading had put it on course for a small annual loss.

The company blamed a challenging car market, but also said it faced ‘internal operational challenges’.

It revealed widening losses in its Car Store vehicle supermarket arm, high levels of used car stocks left to shift, one-off costs to its bottom line,

and the impact of price cuts to boost new motor sales. A turnaround plan is being launched, which will be outlined in detail alongside interim results in late September.

It said this will focus on improving profitability of its core UK motor and leasing businesses, the launch of growth plans for its dealer management system and software business Pinewood, and overhauling Car Store. Pendragon chief executive Mark Herbert said: ‘Notwithstanding the challenging market and uncertain macro outlook, the expected loss for the year is still disappointing.

‘That said, we see significant opportunities to improve the business and return to profitable growth.’

Pendragon also saw shares dive in April when it announced a review

‘We see significant opportunities to improve the business and return to profitable growth.’

Pendragon chief executive Mark Herbert 08 | CarDealerMag.co.uk

of operations after it dropped to an unexpected loss of £2.8 million in the first quarter.

The performance was around £10m short of board expectations and comprised some £7m from the impact of falling margins, about £2m from cost increases and £1m from the worse-than-expected performance of Car Store, which increased from 26 to 34 sites last year.

Car sales have fallen steadily as nervous consumers hold off on bigticket purchases, with latest industry figures showing new registrations down 3.1 per cent in the year to May and heavy falls in used car values.

Dealers have reduced prices to drive an increase in sales but have seen margins hammered as a result.

Analyst Sanjay Vidyarthi at Liberum said: ‘We think that most of today’s downgrade is self-inflicted – a legacy of previous management. We think any recovery will be a difficult and slow process.’

MOTORPOINT

Revenue tops £1bn and profit on the increase MOTORPOINT saw its revenue top £1bn amid increased profit as it posted its final results for the year ended March 31.

The independent vehicle retailer said revenue had increased by 6.8 per cent to £1,058.7m from last year’s £991.2m. Meanwhile, profit before taxation and exceptional items was up by 10 per cent from £20.8m to £22.9m.

It enjoyed record levels of repeat customers, increasing to 30 per cent of total customers, which was up by four percentage points from the previous financial year. The group was also named one of the Sunday Times Best 100 Companies To Work For for the fifth consecutive year, and it obtained the Gold Trusted Service rating from Feefo for the third year in succession.

Chief executive Mark Carpenter said: ‘We are pleased with the progress that has been made.’

CarDealerMag.co.uk | 09

Dashboard.

News from around the UK

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

Invicta Motors makes double six for Suzuki

INVICTA Motors has been appointed to represent Suzuki in Maidstone.

It brings the total number of Suzuki dealerships in Kent to six and is the sixth new location to start trading this year as part of the manufacturer’s now 160-strong UK dealer network.

Dealer principal Darren Murphy said: ‘This is the first time Invicta Motors has added the Suzuki brand to its portfolio, and the high demand for its products presented us with a strong business case for taking on the new franchise.’

WAKEFIELD

Smart work! Helen wins anniversary car prize AN assistant head teacher from Wakefield has driven away with Motorpoint’s 21st birthday star prize.

Helen Boutle, above, who works at St Michael’s CE Academy, was chosen at random from hundreds of people to win the 1.0 Smart Forfour Passion.

The independent car retailer ran the competition to celebrate its 21st anniversary. To be in with a

KIDWELLY

SOUTHAMPTON

Boot-iful! Family win tickets to top match

Excitement over new Mercedes-Benz site

A LUCKY family from south Wales won two tickets to this year’s Europa League final in Azerbaijan thanks to Kia dealership Gravells in Kidwelly. The competition was run alongside the UEFA Europa League Trophy Tour, which encouraged customers to donate old pairs of football boots that will be given to Syrian refugees in Jordan.

Gravells customer Sarah Bailey won the competition and gave the tickets to husband Andrew and son Owen. Chelsea beat Arsenal 4-1.

SOUTHAMPTON is getting a new Mercedes-Benz truck and van dealership. The £4 million development is being built by Marshall Truck and Van on Nursling Industrial Estate to replace the current one there.

Nine jobs will be created and the dealership will boast eight HGV lanes plus five LCV ramps.

‘It will be much bigger and the staff are really excited,’ said Daniel Stone, head of Mercedes-Benz commercial vehicles at Marshall.

10 | CarDealerMag.co.uk

chance of winning, entrants had to visit their nearest Motorpoint branch between April 5 and 22 and search for a hidden key. Once they had found it, they needed to upload a photo of themselves with the key on to either their Facebook or Instagram page.

The winner was announced on Facebook. ‘I still can’t believe I’ve won,’ said thrilled mum-of-three Helen.

Best-selling new cars in May May 2019

Source: SMMT

Ford Fiesta Ford Focus Volkswagen Golf Vauxhall Corsa Mercedes-Benz A-Class Nissan Qashqai Mercedes-Benz C-Class Nissan Juke Volkswagen Polo Volkswagen Tiguan

6,710 5,556 4,655 3,993 3,735 3,636 3,387 2,978 2,902 2,785

The statistics, p58

HATFIELD

McLaren showroom now officially open

McLAREN Hatfield officially opened its ultra-modern showroom with a launch event featuring a line-up of past and present vehicles.

Following its appointment as an official retailer last year, the dealership opened the doors of its new 378 square metre showroom on Hatfield Business Park, with prospective and existing customers invited to the ceremony. The Hatfield team will offer a range of new and used McLarens, including the recently launched 720S Spider.

A global snapshot of dealership news.

Around the World, p28

BRIDGWATER

HATFIELD

New CV sale brought Dealership renamed in to meet demand as it changes location

BCA HAS responded to significant demand from buyers in south-west England and Wales by launching a new commercial vehicle sale at its Bridgwater remarketing centre.

It sees LCV sales taking place on alternate Wednesdays, featuring CVs from Lex and UKCGR. Jon Gilbert, pictured, business development director for commercial vehicles at BCA, said: ‘The team in Bridgwater has done sterling work to successfully deliver this all-new sales programme.’

ASTON Martin has relocated its long-established dealership in Welwyn Garden City, Hertfordshire, to a new purpose-built site in Hatfield, about four miles to the south. Located on Hatfield Business Park, the showroom, which continues to be owned and operated by the Grange Group, will be renamed Aston Martin Hatfield.

The 1,164 square-metre facility is the first Aston Martin dealership in the UK to showcase the company’s new corporate identity programme.

‘To ensure that a customer never showed up to the local wrestling show one day and then saw me in the dealership the next day, I would compete under a mask.’

Confession, p77

BUCKINGHAMSHIRE

Brands to unite on multi-million site

PLANS for a new multi-millionpound Lookers Jaguar Land Rover dealership in Buckinghamshire have been revealed.

The 16,193 sq ft site in Aston Clinton is expected to be completed by the end of the year, replacing the group’s JLR showrooms in Amersham and Chipperfield.

Around 90 members of staff will be transferred to the dual-branded development. The showroom will hold 18 new cars, with more than 100 used cars outside.

BLACKBURN

Expert Andrew is a Motability marvel

A SENIOR Motability specialist at Bowker Motor Group has been named the best in the UK – pipping more than 18,000 others to the title.

Andrew Holden, who works for Bowker BMW and Mini on Trident Park in Blackburn, was given the 2019 award for consistently offering high standards of service and support to Motability Scheme customers last year, and follows him being commended in 2018. The 45-year-old, centre above, has been at Bowker for more than five years.

BOLTON

JLR dealership supports junior football club A LANCASHIRE Jaguar Land Rover dealership is supporting a newly formed junior football club as part of its community engagement programme.

Farnell Jaguar Land Rover Bolton has kicked off a sponsorship deal that will see members of CMB Junior Football Club wear kits bearing its logo for the 2019/20 season.

James Boyd, head of business at Farnell Jaguar Land Rover Bolton, said: ‘We’re delighted to be supporting CMB Juniors. It’s important that local businesses get on board and help.’

In our picture are club representatives Sam Barnett, left, and Declan Roberts (captain) with Lee Burns, Jaguar brand manager at the dealership.

First drive:

BMW M850i

An intoxicating combination of thunder and drop-top motoring.

Forecourt, p34 CarDealerMag.co.uk | 11

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12 | CarDealerMag.co.uk

Dashboard.

MERGER

More jobs are created as car supermarket firms join forces

T

he used car supermarket group CarShop is adding The Car People’s four stores to its portfolio. CarShop – part of Sytner Group’s car supermarket division – already has stores in Cardiff, Doncaster, Northampton, Norwich and Swindon.

The combination of the two award-winning businesses takes the total number of stores under the CarShop brand to nine.

The Car People’s stores are in Manchester, Wakefield, Sheffield and Warrington and will all be rebranded to CarShop, adopting the new CarShop identity.

Customers across all nine stores will have access to service centres at every location and a wide range of cars. They’ll be able to choose from more than 9,000 vehicles, which

CarShop says can easily be moved between any of the sites.

Customers will also have access to CarShop’s award-winning website, which features its car finance eligibility checker and a tool that will guarantee a part-exchange valuation. The merger has created 32 jobs across the nine locations.

Leo Nelson, marketing and digital

director at CarShop, said: ‘We’re delighted to announce that The Car People will be rebranding to CarShop in what we think will be a real step change for the used car industry.

‘We’re especially pleased that The Car People stores will be adopting and showcasing our new brand identity, which has recently been implemented within our newly refurbished Swindon store.

‘We’re fully committed to offering a convenient, friendly and guided buying experience, and with both brands operating as one, we’re excited about the future.

‘In fact, we have no plans to slow down, as we’re opening two more CarShop stores soon, in Bristol later this year followed by Nottingham early next year.’

FORD

Edged out: Big SUV makes exit from UK THE Ford Edge SUV is no longer on sale in the UK as the Blue Oval looks to replace it with the Puma crossover later in the year.

The large 4x4 has been struggling on these shores, with just 1,700 registered in the UK in 2018 – down more than half compared with the 4,100 new examples hitting the road in 2017.

A facelifted model was introduced late last year but that didn’t seem to make much of an impact. The cancellation will also affect markets on the continent.

The US-based firm said it would instead focus on ‘seven key markets’ where the vehicle is most profitable.

In a statement, Ford added the move was ‘in line with our strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe’.

CarDealerMag.co.uk | 13

Dashboard.

Should I refund this customer his deposit?

Feedback, p26-27

‘DEVASTATING’ DECISION

COLLABORATION

BMW & JLR to work together on electrification

Ford accused of betrayal as it announces closure of Bridgend engine plant F ord has come under attack from unions after announcing plans to close its engine plant in Bridgend next year, with the loss of 1,700 jobs.

The company blamed the ending of a contract with Jaguar Land Rover and a fall in sales of petrol engines amid huge changes in the car industry, stressing that the decision was not related to Brexit.

The 40-year-old plant in south Wales will close in September 2020, affecting jobs in companies supplying goods and services to the plant, and delivers another huge blow to the UK motor industry following news that Honda is to shut its factory in Swindon, while other firms are cutting back. Unions said the news was devastating for the plant and the UK economy, pledging to resist the closure ‘with all their might’.

Ford’s European president, Stuart Rowley, told the Press Association that

Bridgend workers were ‘great’ and had ‘done nothing wrong’, adding that they will be offered enhanced redundancies as well as help with finding other jobs.

He said: ‘Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio.

‘We are committed to the UK. However, changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend make the plant economically unsustainable in the years ahead.’

Ford said factors behind the proposed closure of Bridgend included ‘significant under-utilisation’ of the plant, driven by the impending end of engine production for Jaguar Land Rover, the ending of the previous

‘It’s a real hammer blow for the Welsh economy and the community in Bridgend.’

GMB regional organiser Jeff Beck 14 | CarDealerMag.co.uk

generation Ford GTDi 1.5-litre engine, and reduced global demand for the new-generation Ford GTDi and Pfi 1.5-litre engines.

At expected volumes, the plant also faces a cost disadvantage compared with other Ford facilities, said the company, adding that ‘significant efforts’ to identify new opportunities hadn’t been successful.

Workers were given the news at briefings inside the plant on Thursday, June 6 and told to go home and not return until the following Monday.

GMB regional organiser Jeff Beck said: ‘We’re hugely shocked by today’s announcement. It’s a real hammer blow for the Welsh economy and the community in Bridgend.’

Unite general secretary Len McCluskey said: ‘Ford’s decision to shut its Bridgend engine plant in 2020 is a grotesque act of economic betrayal.’

Ford has another engine plant in Dagenham, Essex, and a plant making transmissions in Halewood, Liverpool.

The company announced in May that it was cutting 7,000 white-collar jobs worldwide, with up to 550 expected to go in the UK.

BMW Group and Jaguar Land Rover have announced that they will be partnering to develop the next generation of electric car technology.

The two companies will work together to design and create electric drive systems, with the aim of lowering the cost of development for both parties.

No timescale has been given as to when buyers will be able to get their hands on this next level of technology but it’s likely to be three or four years away.

BMW spokesman Klaus Fröhlich, member of the board of management for development, said: ‘The automotive industry is undergoing a steep transformation.

‘We see collaboration as key to success in the field of electrification. With Jaguar Land Rover, we found a partner whose requirements for the future generation of electric drive units significantly matched ours.’

ISUZU

Sponsorship is muddy great!

ISUZU UK has been appointed as the official automotive sponsor for the Tough Mudder obstacle course series throughout the UK for the remainder of 2019. The partnership was due to kick off with Tough Mudder’s highprofile Scotland event at Drumlanrig Castle in Dumfriesshire on June 15 and 16.

D-Max review, p79

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Power Awards.

CAR DEALER POWER

It’s time to have your say!

Who are the best suppliers and car manufacturers?

W

ith all the excitement and activity around CDX over the past few weeks, you might be tempted to think we had put Car Dealer Power on the back burner for a while.

Not a bit of it! We have already had a full postbag of completed survey forms from issue 134 of the magazine – and many of you have given your views online.

However, we still need more of our readers to say what they really think about the suppliers and manufacturers they do business with.

As we’ve mentioned before, Car Dealer Power is now in its tenth year, so we are keen for the 2019 results to be the most comprehensive and informative yet.

Ever since the inaugural survey was carried out, more and more dealers have given us their honestly held opinions.

That’s because we don’t ask for any identification from the people making the nominations, so there’s no fear of reprisals.

And your views really do matter, because we make sure they’re seen by the people who need to be made aware of them.

All you have to do is give marks out of 10 and

honest views in our straightforward, no-nonsense survey. We want you to tell us which manufacturers and suppliers are the best and how good they are at helping you.

For example, how do you rate the online auction and trade-to-trade remarketing sites you use? How does your warranty provider perform?

We also want to know, though, which are the companies that give you grief, so don’t hold back!

Your votes and views will be carefully collated to provide the list of winners – as well as a picture of the firms that aren’t up to scratch.

The findings will be shared, so it’s entirely possible YOUR feedback will make manufacturers and suppliers change how they operate.

If you’re a supplier to the motor trade, you can get your customers to nominate you, which means that with enough support you could be taking home one of our prestigious gongs.

Once the opinions have been considered, the marks totted up and the votes collated, we’ll be holding our glittering awards night on Thursday, September 26, 2019. The venue will be Portsmouth’s Spinnaker Tower, right, with its stunning views.

Complete the survey online today at

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16 | CarDealerMag.co.uk

or call 01480 455500 for more information

The closing date for nominations is August 16, 2019. What do you mean there’s no rush? Trust us – it’ll be here before you know it, so head online and complete the survey today!

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Dashboard.

Year-on-year auction prices continue to climb.

Taking Stock, p69

NEW ERA

PRICES

Sherwoods reborn after multi-million-pound deal to buy family businesses

The ‘postcode lottery’ of MOT and servicing

by JOHN BOWMAN john@blackballmedia.co.uk

Simon MacConachie, left, and Alasdair MacConachie at Sherwoods Durham

O

ne of the longest-established car companies in north-east England has launched a new era with the multi-millionpound acquisitions of two prominent family businesses. Sherwoods has bought Springfield Motor Group – incorporating Peugeot, Citroen and Suzuki franchises at Gateshead – alongside Durham Peugeot.

The businesses will be rebranded as Sherwoods Gateshead and Sherwoods Durham, with the partners describing the deal as the ‘first chapter’ in the creation of a Sherwoods group of motor dealers across the region.

Sherwoods, which was established as a family business in the 1920s, sold its Vauxhall sites in Darlington, Stockton and Northallerton to the Drive Group last September.

Sherwoods managing director Simon MacConachie promised at the time that the long-established company name would live on with investments in other businesses.

He said: ‘We are delighted to have fulfilled that pledge by acquiring two cracking businesses with great manufacturing partners in superb locations.’ The deal also includes a large workshop, bodyshop and used car outlet on Washington’s Crowther Industrial Estate, which will be run as a separate business called Sherwoods Car Store.

The combined business expects to have a turnover of £65m a year and secures the jobs of 120 employees.

MacConachie said: ‘This is the first chapter – we would love to work with other brands, and discussions about further opportunities are continuing.

‘We would particularly like to return the Sherwoods name to the south of the region, where we are so well known.

‘This is an exciting time to be involved with Peugeot because they are at a high point in the cycle of their product range, and their attitude towards the dealer network is impressive.’

He added: ‘Suzuki are renowned for their reliability and the “family

feel” they like their customers to experience. This fits perfectly with our family business culture. Citroen has also got some exciting products coming through and we are excited to work with them for the first time.’

He is joined by three partners: his father Alasdair MacConachie as director and investor, Chris Elvidge as chairman, and Kevin Smith as finance director.

MacConachie senior, who developed the Sherwoods brand over 37 years, said: ‘Selling the Vauxhall business was an extremely emotional time, but I couldn’t be happier at the outcome because the name will live on in some exceptional businesses that share Sherwoods family values.’

First Aston Martins roll off the production line in Wales THE first pre-production versions of Aston Martin’s upcoming SUV have rolled off the production line at the firm’s new factory.

Built on a former Ministry of Defence facility in St Athan, south Wales, the 90-acre site will be the home of the DBX when it goes into series production next year.

Aston Martin Lagonda bought the 18 | CarDealerMag.co.uk

site in 2016 to build a second factory to keep up with expected demand for the SUV, and last year it revealed that it would work on its electrified powertrains there, too.

The luxury car maker says the facility has already created 200 new jobs, with 550 more expected as production ramps up.

It could also result in up to 3,000

extra positions across its supply chain and in local businesses.

Andy Palmer, Aston Martin Lagonda president and group chief executive, said: ‘This is an exciting time for Aston Martin Lagonda.

‘Our second luxury manufacturing facility is producing cars and is ready to go into full production in the first half of 2020.’

MOTORISTS in some parts of England and Wales are paying up to 60 per cent more for MOT and servicing compared with other towns and cities.

The newly compiled data shows that motorists in Newham, London, are being hit hardest, with the average cost of MOT and servicing totalling £232.92, while motorists in Penzance, Cornwall, are paying just £138.93 – a massive saving of £93.99.

The website BookMyGarage.com analysed the costs for thousands of MOT and servicing jobs on four-yearold vehicles across England and Wales and uncovered a ‘postcode lottery’ with a huge gap in average prices.

The top five most expensive areas for MOT and servicing costs in England and Wales were Newham, London (£232.92); Camden, London (£228.17); Braintree, Essex (£225.23); Horsham, Surrey (£216.39), and Tower Hamlets, London (£216.24).

The top five cheapest areas were Penzance, Cornwall (£138.93); Caernarfon, Wales (£141.91); Bilston, West Midlands (£145.05); St Austell, Cornwall (£145.50), and Diss, Norfolk (£148.17).

FORD

New research centre opens FORD Motor Company has opened its Ford Research Centre, Israel in the heart of Tel Aviv’s burgeoning technology community.

The new centre will serve as a research hub augmenting Ford’s global Research and Advanced Engineering team.

It will also support Ford’s automotive and mobility businesses.

THE

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Dashboard.

NEW FACILITY

MAY STATISTICS

Motorline creates jobs with bigger Nissan dealership

M

otorline Nissan now has a greater presence in Reading with a purpose-built showroom in the town.

The newly opened dealership – which has seen the team increased from 19 to 34 – replaces Motorline Nissan Reading’s temporary Bath Road showroom, which it had operated since taking over the town’s Nissan franchise three years ago, and strengthens the group’s triangle of Nissan dealerships in Berkshire and Oxfordshire, working alongside the two other sites in Newbury and Oxford.

Occupying a prime position in Imperial Way, near links with the M4 and A33, the larger, 11-car dealership – heralded as the flagship of Motorline’s nine Nissan sites across the Midlands and south-east

of England – saw a seven-figure investment by Motorline.

It has been built from the ground up, with the area previously being brownfield land.

The showroom includes features such as a lounge where visitors can relax with a hot or cold drink, and a design lab for personalisation options to be explored.

There is also a dedicated handover area where customers can take

Average dealer makes £5k profit

delivery of their new vehicle, while the workshop boasts 10 service ramps plus an MOT test bay.

Outside, there is room for 60 approved used vehicles, EV charging points, valeting bays and 50 customer parking spaces.

General manager Gareth Williams said: ‘Ever since Motorline began representing Nissan in Reading, it has always been our strategy to build a state-of-the-art facility. As a group, we are known for investing in dealerships that give our customers a truly memorable brand experience, and the Reading facility is among the very best we operate.

‘We have far outgrown our previous site, and our new dealership will enable us to deliver an even better service. Reading is a great place to be.’

THE average UK motor retailer made a profit of £5,000 in April – a marginal improvement over the previous year – according to the latest figures from ASE Global.

But in the current climate of significantly reduced fast-start tactical activity and reduced overall new car registration levels, this represents a good return and a base to build on through the remainder of the quarter, said the dealer profitability specialist.

ASE Global chairman Mike Jones said: ‘With new car volumes remaining under pressure as a result of the reduced general supply push of vehicles into the UK, used car profits continue to pick up the slack. It was pleasing to see the used car return on investment bounce back from the dip below 80 per cent at the March month-end.’

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A GOLDEN OPPORTUNITY With ten awards and counting, the Isuzu D-Max is class leading.

With such a strong product, it’s an exciting time for the Isuzu brand.

As the Pick-up Professionals, Isuzu are proud of their unwavering focus; manufacturing hard-working vehicles, built to go the distance, sold by a network of dealers who are truly experts in their field.

If you’re looking for a pick-up franchise, becoming a Pick-up Professional is a brilliant opportunity: • Plug-in franchise, simple to operate • Extensive training and marketing support • Healthy margins and opportunity for growth There no better time to become a Pick-up Professional, call Rebecca Lamsdale on 0121 730 8190 or email rlamsdale@isuzu.co.uk for more information.

THE AWARD WINNING ISUZU D-MAX. QUITE CLEARLY, IT JUST WORKS. Trade Van Driver 2018 ds awar

PICK-UP OF THE YEAR

2019

BEST MODEL

CarDealerMag.co.uk | 21

“A terrific night for a good cause�

Shop floor closed.

Dance floor open.

The Ben Ball is a chance to party with colleagues, network in style and help raise funds so we can continue providing life-changing support across the automotive industry.

Celebrate Christmas with the automotive family ben.org.uk/benball #BenBall

22 | CarDealerMag.co.uk

Dashboard.

Another Isuzu D-Max is put through its paces.

Long-termers, p79

EXCELLENCE

BENTLEY

Toyota honours trio of UK retailers for delivering great customer service

Florian Spinoly appointed to directorship

by OLIVER YOUNG @OliverYoungGT

T

hree UK Toyota retailers have been given top awards for excellence in customer service.

Helensburgh Toyota in Scotland, Oakmere Toyota in Northwich, and Harry Feeney Toyota in Blackpool received the manufacturer’s Ichiban honour in the small, medium and large retailer categories respectively – ‘Ichiban’ is Japanese for ‘number one’.

The ceremony took place in Evian, France, with the trio among 45 winning retailers from across Europe.

Senior executives from each dealership collected their trophies from Johan van Zyl, president and chief executive of Toyota Motor Europe, who said: ‘The customer is at the centre of all our key business decisions. Everyone at the awards has demonstrated throughout Europe that ensuring complete customer satisfaction is pivotal.’

He praised the 45 winning retailers for their outstanding achievement and stressed the importance of listening to the customer’s voice.

For Oakmere, it was the dealership’s fifth Ichiban win. Managing director Jonathan Jarratt said: ‘Winning the Ichiban Award for a fifth time

demonstrates the commitment and the consistency that all our staff show in putting the customer first in everything we do.’

Gary Mulvaney, centre principal at Helensburgh Toyota, said: ‘Buying a car or even getting it serviced should be a genuinely good experience, and we try to make it personal by knowing our customers and their individual needs.’

Andrew Harrison, centre principal at Harry Feeney, praised his staff, saying: ‘I am immensely proud of

every member of the Harry Feeney team, who collectively share this award. This award is testament to our team’s hard work and dedication.’

More than 2,500 European retailers compete to be one of the Ichiban winners each year.

Pictured from left are Johan van Zyl, Andrew Harrison, Jonathan Jarratt, Gary Mulvaney, Toyota Motor Europe executive vice-president Matt Harrison and Toyota GB president and managing director Paul van der Burgh.

‘Political climate’ sees Fiat Chrysler abandon merger FIAT Chrysler has pulled out of an offer to merge with French car maker Renault, citing problems with France’s political climate. The surprise move came as a tentative agreement on merger terms between Fiat Chrysler Automobiles (FCA) and the French government fell apart.

The Groupe Renault board met for six hours near Paris to consider the merger, only to postpone a decision at the request of the government, which owns 15 per cent of the company.

For now, it appears the merger has

been scuttled, with FCA thanking Renault and its alliance partners Nissan and Mitsubishi for their work on the proposal.

‘It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,’ a Fiat Chrysler statement said. ‘FCA will continue to deliver on its commitments through the implementation of its independent strategy.’

The combined company would have produced some 8.7 million vehicles a

year – more than General Motors and behind only Volkswagen and Toyota.

Fiat Chrysler had proposed merging with Renault to create the world’s third-biggest car maker, worth almost 40 billion dollars (circa £31.5 billion).

The merger would have saved billions in purchasing costs and helped each company share the costs of developing autonomous and electric vehicles. It would also have reshaped the global motor industry, especially if the new company had maintained ties with Nissan.

BENTLEY Motors has made Florian Spinoly its new director of product and marketing.

With 15 years of product management and marketing experience in the automotive industry, holding executive management positions for a number of premium brands, Spinoly was most recently director of marketing, product and public relations for Cadillac Europe and Chevrolet Performance Cars.

Before that, he spent more than 10 years with BMW in marketing, product management and motorsport. This included working at the Munich headquarters as well as in the Middle East, Asia Pacific, eastern Europe and Africa regions.

Spinoly, pictured, said: ‘Bentley is a company I have always had a great deal of admiration for. I look forward to working with my colleagues on the development of the brand.’

CAP HPI

Where do AFVs sell the fastest?

ALTERNATIVE fuel vehicles (AFVs) are selling faster in the north-east than in London, according to new data from used car valuations expert Cap HPI. AFVs including petrol and diesel hybrids take 35 days to sell there compared with 36 days in the capital. The data also reveals AFVs take 53 days to sell in Northern Ireland and 47 days in the northwest of England.

CarDealerMag.co.uk | 23

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24 | CarDealerMag.co.uk

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

Perishing problem with MX-5 meant major manoeuvre using manhole

W

e’ve all been there… You’ve done the deal, you’re not taking a part-ex and to sweeten the transaction, you’ve agreed to drop a customer’s new purchase to their home, only for the car to crap itself en route.

I sold a lovely Mazda MX-5 last week to a young couple who had just moved up here from London and had found themselves in need of a car for the first time.

They were a pleasure to deal with, paid me a cash deposit of £200 and promised me the remaining £1,800 on delivery, so I made it my last job on a Friday evening to drop the car off, safe in the knowledge that their house was a short walk from one of my favourite watering holes and that the £1,800 in fresh bank notes would be more than enough to cover a cab ride home.

The sun was shining and it was a lovely late spring evening, so I locked up my yard, dropped the roof and set off into the evening rush hour. Five minutes down the road, though, things went a bit pear-shaped, as the little Mazda started to make a horrible clonking noise going over bumps. This was followed by a loud grating and a shower of sparks in the rear-view mirror.

I’m no mechanic, but it soon became clear to me that something wasn’t as it should be, so I pulled into a handy bus stop (much to the annoyance of the driver of the Number 38) and popped my head underneath, ready to make an apologetic phone call and dial the big yellow taxi home – the one with the flashing orange beacons on its roof.

Luckily, the problem wasn’t as bad as I thought – I could see that the exhaust mounting rubbers had perished and sheared, and the back two-thirds of the exhaust pipe was dragging on the ground.

In itself, a minor problem, but I was stuck in Birmingham in rush hour and parked in a bus stop, neither of which was making me at all popular with my fellow commuters.

Confident that I could otherwise mend it in five minutes, I took a long, hard drag on my ballpoint pen (I’d left my blooming cigars in the Jag) and pondered my situation.

Then I noticed a flash of orange at the top of the hill – the welcoming sign of a well-known retailer that sells bikes, tents and occasionally the odd car part. Hopefully, they’d have some exhaust hangers in stock, so I locked up the Mazda, left a note saying

‘Broken down, please don’t kick’ on the dashboard and waddled off up the hill. Twenty minutes and ten quid later, I was waddling back down again, armed with four brand new rubber suspension hangers. I was back in business.

Or, I would have been. But 40 years of post-work pints haven’t been kind to my waistline, and no matter how hard I tried, when I got back to the car I was simply too big to work my way far enough underneath it without getting stuck.

I tried to get a young lad waiting at the bus stop to see if he could slide under there instead, but he simply told me that cars were bad for the environment and my breakdown was a case of karma biting me on the bum, so instead I allowed him to board his bus with a ‘friendly’ gesture from behind.

Looking back towards the bus, though, I had a moment of inspiration. My dad once told me that no idea was a bad idea if it worked, and my salvation was there in yellow and grey, where the markings on the bus stop sat slightly askew. A large, loose manhole cover. With the bus safely on its way, I investigated further. Yes, the manhole cover was loose and, bingo, I could just about lift it free and – full house! – there was a ladder underneath.

I lifted the cover off and gingerly pushed the Mazda backwards, leaving just enough room for me to lie on my belly and slide myself backwards underneath by swinging my legs into the open drain and searching with my toes for a ladder rung.

As I ventured deeper and deeper towards the human by-products of the West Midlands, I found myself able to get far enough in for just my head to pop out the top, with enough room to reach up and replace the exhaust hangers there and then. Something I was able to do thankfully quickly, as hanging around the drains of the UK’s curry capital is never a good idea.

Alas, my egress was somewhat harder than my entry, and I had to rely on some bystanders at the bus stop to pull me free from my stinky hidey hole, much to their amusement.

But the job was done, and with the manhole cover replaced I was able to deliver the car to its new owners without them having even a whiff of trouble. Well, apart from that emanating from my jacket.

It’s also created a new slang term in my household – when nature beckons me to the smallest room in the house, I now declare to my family that I’m off for an ‘inspection pit’.

‘Hanging around the drains of the UK’s curry capital is never a good idea.’

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 | 25

Feedback.

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

Our website at CarDealerMag.co.uk

Should we refund this A FEW days ago, we got a call from an eager buyer who had seen an ad for one of our cars on Auto Trader. After a bit of a chat, he agreed to place a £250 holding deposit on the car.

Today, when he was supposedly on his way to see it, he had a change of heart. My colleague spoke to him on the phone, and he told us that he’d decided he wanted to go for an auto instead of a manual. My colleague told him that as we hadn’t misrepresented the car he wouldn’t be entitled to his deposit back. He knew the car was a manual and he still put a deposit down, so why should we lose out when this car could’ve gone to someone else? Naturally, the customer kicked off and first mentioned that: 1) Our advert on Auto Trader clearly says the deposit is refundable (although it does say ‘subject to terms’ right next to it).

2) Regarding the phrase ‘subject to terms’ – our website doesn’t specify what these ‘terms’ are. It actually gives the impression that if someone changes their mind for whatever reason, they’re entitled to a refund.

The customer eventually hung up the phone.

To be honest, the thought of him getting his deposit back seems completely unjust.

But, I have to wonder – as he hasn’t ever been to see the car and all the transactions/ communications were done over the phone, is this situation not covered under the standard distance-selling laws?

GenghasBANG Seems a tad harsh. A few days holding the car isn’t the end of the world. If you’d held it for a couple of weeks, fair enough, keep the deposit.

MrC You’ve misled him with unenforceable terms. If you haven’t got anything confirmed in writing agreed by the customer then you are skating

Picture of the month

It’s always a bit of a relief when CDX is over and the event has been a great success – but the run-up to the big day tends to be somewhat nerve-racking, as Becca seems to be indicating above. She’s pictured near the Live Stage on ‘build day’ – the day before the show. Just 24 hours later, she’d be on the stage interviewing manufacturer and dealer bosses, and you can find out what they had to say a little later on in this edition of the magazine.

on very thin ice. It is simply not worth the aggravation and the subsequent bad reviews.

Arfur Dealy Do the right thing and refund him. It would be different if he’d viewed and test-driven the car and then left the deposit. In that instance, I’d agree with not refunding it.

SouthernTrader We take refundable reservation fees. It’s refundable if you come out and see the car and don’t like it. We recently adjusted the terms on our website so that if we hold the car for a few days and you just changed your mind, it is not refundable on that basis. Fair’s fair and it annoyed

me no end when people decided not to bother after holding the car for a few days.

Rory RSC Thank you for letting us know, sir. I do understand as many people now opt for an automatic gearbox. We have two options for you: 1) We will refund you straight away and thank you for considering us, or 2) We hold on to your deposit and find you a more suitable car within seven days. Everything else – all the other benefits we discussed – will remain. What would you like us to do, sir?

Mark 101 Just give it back. And if your boss is the decisionmaker, it’s down to him to deal in person with it. Not you. It all adds up to time wasted over a deposit when you should be selling the car to someone else.

Me? I never take a deposit before someone has seen the car. It’s amazing how quickly they can get to see it when they realise someone could buy it before them. But then it’s just me here so I’m not competing with other salesmen (and women). And I’d rather not let a billy put a car on hold till they can pull their finger out to come to look at it.

MattR A deposit is a deposit in my book, nonrefundable. What’s the point of taking one if you’re going to give it back?

Jack Regan If your terms and conditions don’t make clear what a holding deposit means, refund in full.

Get your trading terms stated in your advert but without taking away the consumer’s rights and move on. jason doyle motor sales

Top CDX tweets An honour to share the stage at today’s #CDX19 with legends @johnfohanlon1 @CarDealerEd and @tordoff_john a good debate! Very busy!

Daksh Gupta @MarshallMotorGp Really enjoying the CDX Live Stage sessions today! Some great stuff to take away!

Click Dealer @ClickDealerLTD

Full CDX coverage starts on page 38.

See also The Big Story, pages 6 & 7.

26 | CarDealerMag.co.uk

We’ve had a fantastic day at #CDX19! We’re pleased to have met so many of you and a huge well done to Carol, Ollie and Gordon on their seminars!

CitNOW @citnow

I was lucky enough to be invited to the #CDX19 automotive conference today. Apart from slightly struggling to remember where my suit was, it’s been a great day.

Lance Bradley @Lance_Bradley_ Great day had @CarDealerExpo #cdx19. It was lovely to see everyone and sit in on some great seminars demonstrating the best practice within the industry. Well done everyone.

Susie Ancell @Susie2801 We’ve had a fantastic day at @CarDealerMag’s CDX event! Thanks to everyone who stopped by!

Force24 @Force24uk

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

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

customer’s deposit?

SOURCING

Did you buy this car at auction?

WHEN I’m asked the above question, these are the replies I consider providing: 1. Why does it matter?

2. Probably, since I’m a trader 3. Do I ask about details of your job?

Why do people feel the need to ask where we buy cars from? tradegirl We say sourced from a main dealer, partexchanged into us or from the public, whichever is true.

SC Derby Shock, horror! Buyer of car wants to know a bit about its history and where it came from.

EPV My line is ‘We mainly buy from main dealer groups’. That’s usually enough to end the interrogation.

NOACROSS If you’re offended by people asking where you bought a car from, you may wish to re-evaluate how thick your skin is. It’s a

commonly asked question, as most people think auctions are where old knackers end up.

They want to believe that their next purchase has been driven considerately, washed with filtered water from the Himalayan mountains and powered by unicorn farts. Tell them it came from a part-exchange, or a main dealer part-exchange that you carefully selected from. It’s really not rude.

EPV Let’s cut to the chase. The reason some customers ask that question is because they haven’t got the confidence to buy at auction themselves and they don’t like to think you are making money out of them.

Normally, if you push them you will find they’ve been to auctions lately but the product you are offering and the service included is better than the hammer prices and quality they have seen. If you are getting a lot of these questions, your stock is wrong because these people are more interested in low prices than quality and they mainly don’t buy even though they can’t find better. Bite your lip and move on! jason doyle motor sales

The fools who only want to know the best or last price I’M fed up, having received 20 ‘best price’ or ‘last price’ messages this week. Is it national best price last price week? I reply with the actual price.

One bugger offered me £700 for a £2,000 car.

Seriously, where do these fools come from? I think the recent rise of certain political figures has encouraged more and more of these chancers to emerge and have their say. Two or three years ago, it wasn’t this bad.

TangoVictor32 I blame the rise of all these ‘save money on your shopping’, ‘save money on your car insurance’ sites. We are now a culture of price-driven people. justina3 Have noticed it a lot more. Makes me wonder what they actually buy in the end. Had a couple look at a car last week, it had everything they wanted and they said they had been looking for ages but kept missing out. They saw us drop the price and then bid £2k less, despite telling me they were amazed it had not yet sold.

Contracts These wasters never seem to appear when things are moving quickly. It’s as if they know things are slow and they come out of the woodwork.

Scooby who

I love diesels but have finished selling them JUST sold my last diesel. As much as I love them, I won’t be getting any more to sell here in sunny north-east London. Sign of the times. met

and closing times. They will set up ANPR outside to fine drivers caught driving in the hour before and after school. Homeowners opposite the school will have to register their car’s VRN with the council. Fine is £130 with the usual 50 per cent reduction if paid early. I’m sure, like the ULEZ, all this will be making its way to the shires soon enough as it’s a money-maker. met

I think If I lived down there I would be more worried about knife crime, moped robberies and lack of police and possible terrorist attacks than clean diesels destroying the planet. trade vet Apparently, diesel sales were on the increase last year. There are people in the country that have no idea about low-emission zones, never mind the notion of not buying an oil-burner. There are people who love a three-litre derv with all the toys. Granted, in London things are different.

EPV I actually sold it to two young girls from Maidstone. I rarely sell cars locally – weird. But the upcoming changes to the LEZ will bring it

within spitting distance of me and I’m a little spooked at the prospect. We’ll see what happens when the dust has settled. It’s such a weird market, as many people live in Greater London but work outside of London so the ULEZ won’t affect their commuting at the moment.

But I wonder how soon before the ULEZ stretches out to the M25? I had a letter from the council today asking for my opinion on making the local school a car-free area at school opening

I bought a hybrid today, I’m going to see what happens with it and how much interest I have with it. I doubt the farmers round my way will want it but the middle-class snobs might EPV We sold a diesel 208 this morning, a free tax one and that’s why she bought it. Sold a diesel Fiesta Zetec S last week because it was cheaper to insure. Not as much interest as a few months ago nowadays, but not all people hate them.

David Horgan

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CarDealerMag.co.uk | 27

Dashboard.

Around the world Dealer news from somewhere other than here

CANADA

CHINESE wealth and demand for luxury cars is fuelling a vast money-laundering and tax-avoidance scheme in Canada, according to the South China Morning Post.

The scams involve thousands of fake local buyers of vehicles that are actually destined for the Far East, the paper reported. According to a report compiled for the British Columbia provincial government by a former police officer, the ‘huge’ and illicit grey market has ‘exploded’ in recent years.

USA

THE size of the Subaru vehicle parc in America has almost doubled in the past six years, with the total now standing at 3.5 million. And while that is undoubtedly good news for the brand, it means a lot more Subaru-trained technicians need to be recruited. Currently, there are 6,677 technicians at the manufacturer’s 631 US dealerships – and that figure needs to double in the next three to four years, said service and quality vice-president Mike Campbell.

SOUTH AFRICA

A MAN who bought a Toyota Hilux Raider from a dealership in the town of Emalahleni, 85 miles east of Johannesburg, was carjacked within 10 minutes of taking ownership. The buyer, Wonga Malusi, pulled up at a stop sign after picking the car up only for two armed men to jump out of the Mercedes in front of him. They told him to get out of the car and drove off in it.

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28 | CarDealerMag.co.uk

VIETNAM

CZECH REPUBLIC

HYUNDAI Motor is celebrating the fact that three million cars have been produced at its factory in Nosovice.

The landmark car was an i30 N, ordered by a customer from Germany.

Hyundai president Yang Dong Hwan said: ‘I want to take this opportunity to congratulate all of our employees. I look forward to celebrating this important milestone with them.’ The plant was established in 2008 and employs 3,300 people. A total of 500 high-tech robots produce 1,500 Hyundai cars each day, while advanced technologies and waste-management systems ensure high levels of quality.

SALES of new cars have been unexpectedly slow in recent weeks, despite manufacturers offering a range of tempting discounts, according to a report in the Phnom Penh Post.

One reason for the downward trend has been a government decision to increase registration fees for pick-up trucks from two per cent to 7.2 per cent, according to a market analyst.

CarDealerMag.co.uk | 29

Finance.

REPORT

Generation Rent ‘driving the rise in motor finance’

FLA

New business falls by value and volume

P

aying upfront for a car is increasingly falling out of favour with UK drivers, according to the new Britain Under the Bonnet report from Close Brothers Motor Finance.

In the past year, the proportion of drivers saying they will opt for finance, leasing or renting for their next car has increased by 16 per cent (from 37 per cent in 2018 to 43 per cent now).

While paying for a car upfront was the most common way of buying a car, the proportion planning to do this for their next car fell from 63 per cent in 2018 to 57 per cent this year.

The figures come as predictions of the end of car ownership gain prominence, with younger generations driving the demand for leasing.

Three in five (60 per cent) drivers under 25 said they were looking to pay for their next car either by using car finance, leasing or renting – more than double the proportion of drivers aged over 55 (28 per cent).

Of these young drivers, 48 per cent said they would opt to use finance to

purchase the latest vehicle model, or the model that they wanted, while just 20 per cent said they would do this for financial reasons to allow them to spread the payments.

Sean Kemple, director of sales at Close Brothers, said: ‘We’re now living in a world of monthly subscriptions from mobile phones to food boxes, meaning we can chop and change at the drop of a hat and only pay for what we use. This is now the norm for a whole generation coming through

the market who are used to being able to upgrade and adapt to suit their needs, and the motor industry is by no means exempt. Dealers must keep a close eye on the latest developments in this field, as customers will rely on them as a source of knowledge.’

The figures in the report were based on Close Brothers’ data, a phone survey of more than 200 UK car dealers and on a consumer survey of more than 2,000 UK drivers.

Sean Speaks, p73

IVENDI

5G networks ‘could revolutionise online motor retail’ NEW 5G mobile networks could revolutionise some aspects of online motor retail and the way dealers present vehicles, says iVendi.

The company says that the speed of the networks could make ultrahigh resolution online imaging – especially video – part of every used car description.

CEO James Tew said: ‘In most areas of the online customer journey, such as going through the motor finance process, existing 4G is plenty fast

30 | CarDealerMag.co.uk

enough to meet used car buyer needs.

‘Where 5G will score and, indeed, promises to revolutionise approaches, is in the way the vehicle is presented online. It is designed to deliver speeds of up to 10Gbps compared to 4G’s 300Mps. To give you an idea of scale, this means you could download a complete 25GB ultra-HD movie in about 20 seconds.

‘This has clear implications for how dealers present cars and vans. Vehicle images will take a leap forward in

terms of both quality and quantity, while it is probable that ultra-HD video will become the norm for every online car or van description.

‘This will have two key effects. One is that dealers will need to get up to speed with presenting vehicles in ever-better condition as the degree of resolution will make any cosmetic faults immediately apparent.

‘Secondly, car buyers will become more confident about completing the entire purchase online.’

LATEST figures from the Finance & Leasing Association show that new business in the point-ofsale consumer new car finance market fell two per cent by value and seven per cent by volume in April, compared with the same month in 2018.

The percentage of private new car sales financed by FLA members through the POS was 91 per cent in the 12 months to April 2019.

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

Geraldine Kilkelly, pictured, head of research and chief economist at the FLA, said: ‘Trends in the POS consumer new car finance market continued to reflect private new car sales.

‘Subdued consumer confidence has also contributed to a slowdown in the POS consumer used car finance market in recent months.

‘However, new business volumes overall in the first four months of 2019 held steady compared with the same period in 2018.’

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

Ditch the doom and gloom – here’s how to jump-start the marketplace

T

o look outside at the moment, you wouldn’t believe Things such as getting your prices right you’ll know, but what it but summer is here. People are starting to jet off to about some extra freebies that you have available, that are cheap warmer climates abroad or pack up and go to the seaside for you but you usually charge as an extra for the customer? or maybe a campsite in the UK. Either way, many Everyone loves a freebie. One of the best giveaways I have seen is consumers aren’t thinking of buying vehicles and free labour on the car that you’ve bought, with the customer just the usual summer dip is just around the corner. having to pay for the parts.

I’ve noticed the Society of Motor Manufacturers 2. Get your finance companies on board and and Traders (SMMT) figures show that used car involved in any marketing/offers and bring more sales seem to be staying steady at around a companies in if you need to. At First Response, 0.6 per cent fall in their year-on-year figures I know that we are always here to help where (looking at Q1), while new car registrations we can. What I mean by this is speak to your have dipped slightly by 2.4 per cent. account manager and ask them if they have Unfortunately, I can’t get access to more any ideas or available products to help you up-to-date figures from the SMMT for the gain or capture more business. Finance is used car market. However, the new car always a way to sell more cars. market figures for May show them down by 3. Don’t stop advertising – in fact, do more.

4.6 per cent on May 2018.

You can look at previous advertising media The Finance & Leasing Association (FLA) has that you may have dropped. Maybe look at some also just released figures for April, which reveal additional on-site advertising and messages. And financed used cars are up by four per cent and new get in touch with your previous customers; they may cars down by two per cent. be ready for a new vehicle.

This shows there is an already diminishing market 4. Open or family days are always good fun and a for new cars. However, the market is probably great way of sourcing local community leads. While New car holding steady overall. With consumer confidence they can be costly, if you make the most of them sales low and uncertainty in the UK over Brexit and they can be very successful. When you have people DOWN now the next Conservative Party leader, etc, it’s no on site, get them to check in on social media for wonder we don’t have a booming marketplace. a raffle ticket or to get a free drink/snack. This way, Let’s not be all doom and gloom, though. We’ve all people are also spreading your name all over social been here before and we know how to sell. media to like-minded people.

Things I would advise you to do are: If you have any questions or want some further advice on finance 1. Get your offers in order. Over this period, you will need some or marketing tactics to gain you more customers, leads and visitors, good hooks to secure customers when they’re not actively looking.

I’d be happy to assist. Just drop me an email via the address below.

‘Many UK consumers aren’t thinking of buying vehicles and the usual summer dip is just around the corner.’

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 | 31

Dealfinder.

Finance.

YOUR ESSENTIAL GUIDE TO LUXURY SALOONS

Audi A8

BMW 7 Series

LUXURY cars act as flagship models in a firm’s range and the A8 is just that for Audi. We’ve chosen the A8 with the popular 282bhp 3.0-litre diesel engine and in S line trim, featuring matrix LED headlights, a leather interior and adaptive air suspension.

Audi is offering a superb £11,000 deposit contribution, to which the customer then adds £10,500. Following this, they then pay 35 monthly instalments of £773.17, which brings the total at the end of the three-year contract to £37,560.95.

Should they then choose to make the optional final payment to own the car, a further £27,458.80 can be paid, which takes the overall amount payable for the car to £65,019.75.

Thanks to Audi’s generous deposit contribution, along with zero per cent APR, that works out a huge £11,000.25 cheaper than the £76,020 list price.

BMW’s latest 7 Series continues to set the benchmark when it comes to combining a sporty driving experience with luxury.

We’ve opted for the 730d model, which uses a 261bhp 3.0-litre straight-six diesel engine. The spec is the popular M Sport grade, which adds 19-inch alloy wheels, gloss black accents and an ‘M’ bodykit to the standard car’s already lengthy standard spec.

BMW’s deposit contribution is even more generous than Audi’s, with a huge £15,054.51 being offered towards the 7 Series. The customer adds a further £10,500 then 35 monthly instalments of £820.58 to bring the total payable by the customer to £39,220.30.

If they decide to buy the 7 Series, £23,417.30 can be paid, bringing the customer’s total to £62,637.60. That makes this finance deal £10,927.40 cheaper than the £73,565 list price, taking into account BMW’s 3.9 per cent APR rate.

NEW TREND

‘Cautious’ car buyers prompt Specialist to cut lowest advance S pecialist Motor Finance has reduced its minimum loan advance by 25 per cent because of ‘cautious’ car buyers.

It says people are no longer ‘maxing out’ on their borrowing ability but increasingly choosing vehicles priced below the amount of the loan for which they qualify.

As a result, it has cut the minimum loan it is prepared to advance for car purchases from £4,000 to £3.000. This, it says, will enable more customers to exercise prudence by building in an extra safety margin to their repayments.

The number of car buyers under-committing to the size of the loans for which they are eligible is growing, according to managing director David Challinor, pictured. ‘I think we are witnessing a

32 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

reluctance among some customers not to take their borrowing to the limit, even when this has already been set at a realistic level.

‘They would rather sacrifice the size of car they buy, or drop down a level of refinement, in order to create a bigger buffer between their income and outgoings. We feel that an entirely appropriate response is to provide leeway so that, for example, someone approved for a £4,000 loan does not have to commit to a car of that price. If they feel more comfortable with a smaller repayment plan, this should be an option.’

And he added: ‘The trend for under-borrowing

isn’t evident just among budget buyers. Even fivefigure amounts we approve after demonstrating affordability are often drawn down as a lesser sum after the buyer imposes their own traffic light system for the loan.’

Specialist Motor Finance said it identified the phenomenon after an analysis of more than £100m of hire purchase advances it had made through finance brokers and dealers.

Challinor believes the findings point to a rise in the number of buyers who are being shunned by some traditional lenders because of historic or minor credit glitches.

IN ASSOCIATION WITH

DID YOU KNOW THAT YOU CAN PROPOSE TO US

Mercedes S-Class THE S-Class has been one of the leading luxury models for years, and that continues with the latest version.

It’s available exclusively in long-wheelbase ‘L’ trim, and we’ve chosen the model with the popular ‘S 350 d’ engine – a 264bhp 3.0-litre straight-six. The equipment grade is AMG Line, which includes a huge infotainment and cockpit display comprising two 12.3-inch screens.

Mercedes dealers are offering a deposit contribution of £5,127.66, and the manufacturer itself a further £4,676.34, which totals a contribution of £9,804. The customer then adds a £10,500 deposit, followed by 36 monthly payments of £796.69 – bringing the total payable at the end of the three years to £39,180.84.

A sum of £29,125 can then be paid if the customer wishes to own the car, adding up to £68,305.84. Because this deal is at a zero per cent APR rate, that works out £9,804.16 cheaper than the £78,110 cash price.

RECOGNITION

TOP LEAGUE

Startline named among 10 fastest-growing private companies in Europe

London is supercar capital, reveals high-end financier

GLASGOW-based Startline Motor Finance has been named among the 10 fastestgrowing private companies in Europe in an authoritative list just published.

Inc – an American publication founded in 1979 – creates widely respected surveys covering privately held small companies across the world.

It reported that Startline had grown by 8,475 per cent in a three-year period to the end of 2017.

‘Under CEO Paul Burgess, Startline, a Glasgow-based auto lender…has ushered in impressive growth. In 2018 alone it doubled its staff to 80. Its business volumes, by yearend, also ticked up by more than 20 per cent,’ it commented.

Burgess said: ‘Being named in this list is a surprise to us and was completely unsolicited, but it is rewarding to see our growth and the success of our market concept being recognised by such a wellknown and credible source.

‘We are undergoing a transformative period as a business.’

HIGH-END vehicle financier JBR Capital has confirmed that Porsche and Ferrari are the most financed supercar marques in London throughout 2018 and 2019 to date.

Within the UK, the capital city also remains the supercar capital, as it was in 2018, with Audi, Bentley and Lamborghini rounding off the top five of manufacturers with high demand for financed supercars among Londoners.

JBR executive chairman Darren Selig said: ‘Porsche and Ferrari consistently come top of the list in terms of the number of supercars we finance in London ‘Brexit doesn’t seem to have dampened the interest and enthusiasm around the top supercar marques for Londoners.’

Recent examples that it has funded include a £2.5m Ferrari LaFerrari and a £1.2m Porsche 918 Spyder Weissach.

ONLINE? SAY YES TO A

PROCESS THAT IS: QUICK EASY EFFICIENT

CarDealerMag.co.uk | 33

Forecourt.

FIRST DRIVE

THE KNOWLEDGE

BMW M850i The BMW M850i slots somewhere between comfortable cruiser and sports car.

But is it the perfect luxury convertible compromise? Darren Cassey finds out.

What is it?

If you’re going to drop six figures on a luxury cabriolet, it’s going to have to be pretty special – and there’s some incredible machinery at this price point. Want a luxury longdistance motorway mile muncher?

The Mercedes S-Class Coupe is hard to beat. However, BMW doesn’t even see that as a rival, considering its drop-top ‘8’ – the car we’re looking at here – closer to something like the Aston Martin DB11 Volante.

On first impressions, it seems to lack the theatre of the Brit and the opulence of the German – a perfect compromise or missing the mark?

V8 engine that makes 523bhp and 750Nm of torque. That’s routed to all four wheels through an eight-speed automatic gearbox, with the result being a sub-four-second 0-60mph sprint. That feels brilliantly obscene in such a big, heavy car.

BMW has absolutely nailed a mix of fire-breathing ferocity and silkysmooth responsiveness. Cruising about at normal speeds, the V8 feels refined and happy to sit in the background. But it’s always ready to unleash its inner brute. The noiseplus-cabrio mix is intoxicating.

What’s it like to drive?

This is the first time BMW has offered an 8 Series Convertible, which is essentially a bigger, more upmarket replacement for the 6 Series. Much like the coupe 8, the convertible is based on the same platform as the 7 Series.

Chopping the roof off such a large vehicle runs the risk of creating a chassis that flexes like an overly enthusiastic yoga instructor.

However, to keep the body in check BMW has done some extra welding and reinforcing to add to the 8 Series’ already-stiff carbon-fibre core, claiming the convertible is only two per cent less stiff than the coupe.

Here’s where it starts to get complicated. BMW is determined to call the 8 Series Convertible a sports car – more Porsche 911 than S-Class. But it can’t quite live up to that comparison.

This is a big, heavy car, weighing in at just over two tonnes. To be fair to BMW, it hides it well when you’re attacking corners, but it just doesn’t show the agility or sharp response you want from a proper sports car.

Where it excels, though, is as a GT. Drop the roof and revel in the sound of the V8, cruising in sumptuous comfort surrounded by impressive technology and digital displays – suddenly the 8 Series Convertible starts to come together.

What’s under the bonnet?

How does it look?

Beneath the prominent snout sits a ferocious 4.4-litre, twin-turbocharged

The BMW 8 Series looks about as close to a German interpretation

What’s new?

34 | CarDealerMag.co.uk

of American muscle car culture as you can get. Up front there are aggressively styled headlights and angular intakes built into the bumper, while the typical kidney grille has been flipped. The result is a brawny, muscular car that perfectly suits the bark of the V8.

What’s it like inside?

As you’d expect from something that starts in the six-figure price bracket, the 8 Series Convertible’s interior is of the highest quality.

BMW falls behind MercedesBenz’s cabins in this price bracket, but there’s a simpler elegance in here that makes the S-Class feel a little OTT, while the latestgeneration iDrive infotainment system is as brilliant as ever.

As you’d expect from a 2+2, the rear seats are a token effort – only children could feasibly spend long periods in the back.

What’s the spec like?

The entry-level trim in the UK is M Sport, which includes 20-inch alloy wheels, sporty bodywork extras, an M Sport differential and a sports exhaust system to make the most of that glorious V8.

Inside, there are leather-trimmed instruments and door panels, a leather steering wheel and velour floor mats. Standard technology includes BMW’s assistance and connected packages, which have connected navigation, Apple

Model: BMW M850i Price (as tested): £104,500 Engine: 4.4-litre twin-turbo V8 Power: 532bhp Torque: 750Nm Max speed: 155mph 0-60mph: 3.6 seconds MPG: 23.5 Emissions (CO2): 229g/km

C

M

TARGET BUYERS: Those looking for something that will cross continents in comfort and destroy tyres in a blaze of V8 noise.

Y

CM

MY

CY

THE RIVALS: Mercedes-AMG S63 Cabriolet, Aston Martin DB11 Volante, Bentley Continental GT. KEY SELLING POINTS: 1. Luxury top-down GT. 2. V8 engine sounds fantastic.

3. Incredible performance.

DEAL CLINCHER: Supercar performance in a luxury convertible package.

CarPlay, emergency assistance and other ‘intelligent’ functions.

One particularly useful option is BMW’s laser headlights.

What do the press think?

Forbes commented: ‘There’s something kind of strange about the new BMW M850i. It really shouldn't be this good.’ Motor1. com said the car ‘seamlessly blends agility and class’.

What do we think?

So, we must return to our initial question – does the 8 Series Convertible offer a perfect compromise or miss the mark? To call it a perfect compromise would be to overstate matters, but it’s close.

CMY

K

CarDealerMag.co.uk | 35

Forecourt.

Storage

The boot’s capacity is 290 litres, which is pretty impressive for a sports car.

FIRST DRIVE

Toyota Supra Much-loved sports car finally returns, but does it live up to the weight of expectation? Ryan Hirons went to Madrid to find out.

What is it?

After years of will-they-won’t-they rumours, concept cars, teaser images, prototypes spied at the Nürburgring and sheer hope of enthusiasts, the Toyota Supra is finally here. And that headline isn’t deceiving you: we’ve driven it.

Calling this car the most anticipated vehicle of the decade wouldn’t be an overstatement. After all, it’s the revival of a hugely loved sports car that last saw the light of day in 2002. However, it isn’t without its controversy, with this Supra co-developed with BMW – news of which hasn’t been received well in some corners of the motoring world.

What’s new?

Some will call this a BMW in drag, and there’s certain merit to this claim. Under its Toyotadesigned skin is the same platform as the BMW Z4, with the 3.0-litre engine brewed from the German pot.

There’s even a hint of BMW inside too, with switchgear and the iDrive infotainment system lifted from its parts bin to be used here.

What’s under the bonnet?

That BMW powerplant is the same as in any ‘40i’ denoted vehicle it offers, although it does conform to the six-cylinder formula every Supra 36 | CarDealerMag.co.uk

to date has boasted. The 3.0-litre, straight-six sends 335bhp and 500Nm of torque to the rear wheels via an eight-speed automatic gearbox, with the result a 0-60mph time of 4.1 seconds and a limited 155mph top speed. In terms of efficiency, Toyota claims it will return 34.5mpg while emitting 170g of CO2 per km.

What’s it like to drive?

Toyota has claimed this Supra boasts a ‘Golden Ratio’ in terms of length to width, and that having almost box-like proportions allows the car to be one of the best-handling on the market.

Thankfully, this proves true.

It skips and prances along back roads with the poise and balance of a ballet dancer, feeding sensations from the road to the driver’s backside and fingertips in a way very few modern mainstream cars can manage. Its steering is sublimely well judged, and the car does a great job of hiding its 1,815kg kerb weight.

Better still, it proves to be comfortable and refined when used on longer runs, too. There’s a real sense you could effortlessly cover 200 miles of motorway in this – something many sports cars couldn’t claim.

How does it look?

The classic sports car formula is represented

Looks

The low-slung cockpit harks back to the ’60s and ’70s era of British classics.

in the Toyota Supra’s design. Its long bonnet, short rear overhangs and low-slung cockpit hark back to an era of British classics in the ’60s and ’70s. It does have a modern twist though, with angular tail-light design vents everywhere and a front fascia that looks lifted from a UFO. It’s undoubtedly a head-turner, although from some angles the spacecraft design details come across as awkward.

If it were our money, we’d be spec’ing the Supra in yellow, which really brings the car’s sharp details to life.

What’s it like inside?

We’ll swing back to the BMW partnership here, which is hard to ignore once in the car.

All of its controls, dials and even the iDrive infotainment system are lifted from the German firm. This is far from being a bad thing though, as it’s much higher quality than anything Toyota produces at the moment, although it does lack character.

There’s no escaping the lack of space either. Of

‘The classic sports car formula is represented in the Toyota Supra’s design.’

THE KNOWLEDGE Model: Toyota Supra Price as tested: £52,695 Engine: 3.0-litre straight-six Power: 335bhp Torque: 500Nm Max speed (limited): 155mph 0-60mph: 4.1 seconds MPG: 34.5 Emissions (CO2): 170g/km TARGET BUYERS: Sports car buyers looking for a genuine Porsche alternative.

Power

The Supra’s engine hails from BMW, but the co-development hasn’t gone down well in some quarters.

THE RIVALS: Alpine A110, Porsche 718 Cayman, BMW M2 Competition .

KEY SELLING POINTS: 1. Well-balanced handling.

2. Head-turning looks.

3. Strong equipment levels.

DEAL CLINCHER: Establishes its own legacy in a historic nameplate.

course, low-slung sports cars are never going to be the most capacious of machines, but the Supra’s cabin feels particularly tight – and may prove a struggle to get comfortable in for taller drivers.

In terms of boot capacity, it boasts a respectable 290 litres.

What’s the spec like?

Pricing for the Toyota Supra begins at £52,695, putting it above key rivals Alpine A110 and Porsche 718 Cayman. That said, it does come with a fairly comprehensive list of kit.

Luxury items include 19-inch

alloy wheels, dual-zone climate control, adaptive cruise, keyless entry, a digital instrument cluster, adaptive LED headlights and the BMW iDrivebased infotainment system displayed on an 8.8-inch screen.

‘Pro’ grade builds further on this with black leather upholstery, a 12-speaker JBL sound system, wireless phone charging and a head-up display. Toyota reckons this will be the big seller in the UK, with a £54,000 list price.

It’s arguably a high starting price, although it clearly hasn’t put customers off so far — with all

300 examples destined for the UK in 2019 already accounted for.

What do the press think?

Top Gear described the Supra as ‘a thoroughly capable all-round coupe. But not a purebred Toyota’, while Auto Express said: ‘It’s a brilliant sports car with an agile rear-wheel-drive chassis.’

What do we think?

Doubts over the success of the Toyota Supra aren’t few in number. The legendary ‘A80’ Mk4 has large boots to fill, and many are sceptical about the BMW connection.

However, the new Supra is surely set to create its own legacy. It delivers its own unique driving experience that’s one of the best from any modern sports car, and the co-development with BMW has served the car well in all the right areas. That said, there’s definitely a feeling its engine could take a little more power on board, plus a manual gearbox and a better exhaust note while we’re on that topic…

CarDealerMag.co.uk | 37

CDX 2019.

Ten pages of coverage start here |

Our fantastic event devoted to dealers is CD-excellent!

From the moment the doors were thrown open, the hall was abuzz, with the huge expo, Live Stage and workshop sessions all proving popular.

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t was the automotive industry event that had everything: a huge expo, fascinating Live Stage sessions and more than a dozen workshops covering all sorts of topics aimed squarely at UK car dealers.

Yes, CDX was back – and in a different home for 2019: Farnborough International Exhibition & Conference Centre.

That wasn’t the only new aspect of this year’s event either – there were several great additions to the schedule, including Dealers’ Den, the Business Hub and the Dealership of the Future sponsored by GardX Protection.

As Car Dealer founder James Baggott said, it certainly was a jam-packed day. In a message to delegates, he added: ‘You don’t need me to tell you how rapidly the dealership landscape is shifting – bewilderingly so, it can seem at times. But CDX is here to help you navigate those turbulent waters and we’re now in our fifth year of this incredible event dedicated to the UK automotive industry.’

If you couldn’t make the day and are concerned you missed out – don’t worry! Our four headline partners, listed at the bottom of this page, each prepared a White Paper for the event which formed the cornerstone of their presentations to delegates.

Those invaluable documents are now available for Car Dealer readers to download.

Just use the URLs you’ll see on the following pages and you’ll have a wealth of information at your fingertips that will help you survive and thrive in future.

In association with

38 | CarDealerMag.co.uk

So, what did some of our guests and exhibitors make of the occasion? Simon Berger, new business development manager at Barclays Partner Finance, said: ‘It has been great to see so many interactive exhibits, and CDX had a fantastic atmosphere. There have also been lots of very informative and interesting workshops, as well as a fantastic focus on technology.’

Brett Newton, sales manager at Auto Money Motor Finance, said: ‘CDX has been great and it’s exactly what I expected. The venue is also great, and the event is impressive in size. We have also had a number of positive leads from our stand.’

Nona Bowkis, from Lawgistics, who took part in our famous Women in the Motor Industry session, said she enjoyed that part of the day and added: ‘It’s great to put faces to names, and it’s wonderful to meet happy customers who have come to see us.’

John O’Hanlon and Daksh Gupta in conversation on the Live Stage

The expo is the beating heart of CDX... and this year the event even featured a McLaren Senna!

The Live Stage sessions were well attended throughout the day PHOTOGRAPHY: MATT RICHARDSON

CarDealerMag.co.uk | 39

CDX 2019.

Live Stage | Barclays Partner Finance |

Love your customers to death – the simple tactic that sells cars Workshop

Teamwork crucial to the achievement of any aim

Adam Mepham speaking at CDX

Could autonomous cars drive themselves to pick up their passengers as people’s ideas of vehicle ownership change?

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he online successes of companies such as Apple, Amazon and Argos have led to customers expecting more from their online shopping experiences. That was the message from Adam Mepham, sales director of Barclays Partner Finance, to his audience at the CDX Live Stage.

As a CDX headline partner, Barclays Partner Finance published a White Paper containing fascinating industry insight and information for delegates to digest. But despite all the advances in technology, the development of websites and the growth of social media, Mepham said that deals were quite often done simply because dealers were nice to their customers.

He emphasised the fact by explaining that he and his wife had each bought a car recently.

His experience buying an Audi A8 – to coincide with starting his new job at Barclays – had been exemplary; his wife’s not so good.

The clear differentiator, Mepham said, was that the Audi salesman had obviously been told: ‘If you get an inquiry, it has cost us this much to get that inquiry, so make sure you love the customer to death. Just be nice to them and really helpful.’

Turning to trends in the car market, he said: ‘We tend to overestimate the change that will

happen over the course of the next two years but underestimate what will happen over the next 10 years.’

Barclays’ White Paper also highlighted the ‘revolution’ in customer attitudes to ownership, saying: ‘Today’s consumers are far more willing to rent or lease a product (or service) than physically own it.’ And looking to the future, it said: ‘It’s easy to imagine an infrastructure in which autonomous vehicles drive themselves to collect their next passenger once the previous user has reached their destination.

‘If cars can be ordered for short-term use from a smartphone, why would a vehicle be purchased outright, especially when it spends so much time stationary in car parks and on driveways and is costly to insure and maintain?’

With notions of ownership changing, it cited – at extreme ends of the trend – music and housing, with people streaming music and the number of private renters doubling in the past 20 years. ‘Whether born of necessity or choice, it’s expected that similar trends will occur amongst the car-buying public,’ it said.

And the report added: ‘Car buyers expect their finance applications to be handled as transparently and seamlessly as every other

AWAY from the nitty gritty of automotive industry talk, Barclays delivered something a little bit different at its workshop session.

Mandy Hickson arrived to give an inspirational talk on her time flying fighter jets and how lessons learnt in some of the most hostile environments can be used positively to help businesses better understand teamwork and leadership.

After doggedly pursuing a career in the jumpseat, she finally became a Royal Air Force pilot, and was only the second woman to fly a Tornado fighter, serving three tours of duty and completing 45 missions in Iraq.

‘We wouldn’t just get in a car and drive in circles without a destination in mind,’ said Hickson, ‘so why should any one of our journeys through life be any different?’

Regaling the audience with tales of escapades, high-octane missions and nighttime raids, Hickson, below, showcased just how crucial teamwork is to the success of an objective, and explained that the same applies to businesses too.

aspect of the buying and decision-making process. Those dealerships that fully embrace and evolve emerging technologies will stand out and create unforgettable brand experiences that encourage customers to return for the latest system upgrade or their next car.’

Download the Barclays Partner Finance White Paper at bit.ly/CDX19-Barclays 40 | CarDealerMag.co.uk

Live Stage | Cox Automotive |

Under pressure! So clear strategies are required Martin Forbes on stage

Workshop

Not everything can be done digitally DIGITAL is undoubtedly taking over how cars are bought, advertised and sold, but not everything can be digital.

Manheim is best known for its auctions. However, although it has firmly moved into the digital era, traditional functions still need to be carried out, with the company having extensive facilities where cars can be painted, refurbished, MOT-tested and serviced, said head of vehicle solutions Simon Caine.

In his interactive workshop at CDX, Caine got dealers to think about how they can maximise their profits and also to think about the money they lose if a car sits on a forecourt for too long.

‘We’re dealing with depreciating assets, and preparation takes time, whether you are doing it yourself or using subcontractors,’ he said. ‘So if you can prepare a car straight after purchase and deliver it without having to go to lots of different destinations before it’s sale-ready, that is a strong economic case.’

UK dealers ‘are facing an unprecedented set of external variables’, making them feel unsettled.

O

EMs and dealers are accelerating their investment in e-commerce, and 60 per cent of dealers expect to have full online transaction capability within the next two years.

That’s according to research conducted for the latest Cox Automotive Insight Report, published as a White Paper on the day of CDX. The report, created in partnership with Grant Thornton, uses previously unpublished data and analysis to identify emerging retail, wholesale and consumer trends in the automotive industry.

It indicates that while just one in five dealers has a full online sales transaction option right now, 60 per cent say they will have one in the next two years.

The report also discusses the increased level of consolidation in the automotive retail market since the global recession, particularly among franchised dealers looking to increase profitability through efficiency improvements, cost savings and economies of scale.

More than 90 per cent of car dealers expect to see some decline in the number of UK dealerships over the next five years, with 60 per cent predicting a fall of 10 per cent or more.

The report was introduced on the Live Stage by Cox Automotive CEO Martin Forbes. He pointed out that the company – the world’s largest global automotive services firm – had achieved great accuracy with its used car transaction forecasts so far.

The business published its first forecast in August 2018, which proved to be within one per cent of the final figure reported by the SMMT. This was followed by a prediction of used car transactions for the first quarter of 2019, correct to within 1,000 cars.

Issues within the new car market because of extended fleet cycles are causing reduced supply in the used market, the report notes.

Drop-off in new diesel sales is also affecting used supply, with 750,000 fewer diesel cars registered in 2017/2018 than in 2015/2016.

Putting it another way, the 46,823 diesels sold in January of this year was 32,000 fewer than in January 2017 – that’s a 41 per cent drop in just 24 months.

Looking ahead, Cox Automotive notes: ‘UK dealers are facing an unprecedented set of external variables, all of which are having an unsettling effect on the new car market. We are already seeing several major players focusing their strategies on other profit centres, such as used cars, aftersales and new services relating to the emerging Cars as a Service trend. Given the challenges ahead, dealers need a clear strategy in place to mitigate against the ongoing pressures in the new car market.’

On the UK exiting the EU without a deal, Cox Automotive says: ‘Undoubtedly, this could have a damaging impact on consumer confidence and both new and used car sales.’

Download the Cox Automotive White Paper at bit.ly/CDX19-Cox CarDealerMag.co.uk | 41

CDX 2019.

Rebecca Chaplin and James Baggott in conversation with Spencer Scott, right, and Hamel Soni on the Live Stage

Live Stage | CarGurus |

How paid search can help you reach the connected consumer Fascinating insight from CarGurus and Google comes with some reassurance – dealers will still be needed, even in an online world.

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arGurus’ White Paper ‘Paid search: A digital marketing tactic on the rise for UK dealers’ delved into the most effective way to connect with today’s car buyer specifically through this marketing channel.

Its study showed that digital advertising spend has increased by 44 per cent since 2016 and isn’t showing any sign of stopping, with 40 per cent of car dealers’ advertising budget being spent on paid search alone.

According to its White Paper, as the number of dealerships visited has dropped, the initial research stages through Google searches have become a crucial part of the buying process.

The figures show that 84 per cent of car buyers used a search engine as part of their search journey, while 50 per cent actually found their car dealer through search.

The challenge for dealers is the number of very specific keywords they need to target to achieve success. CarGurus’ research found that dealers running their own paid search programmes typically targeted around 150 keywords, whereas those using a paid search service targeted around 500.

However, as the US-based business explained, its software – developed for its own growth strategy – runs on average an incredible one

million keywords for each dealer it works with.

Speaking on the Live Stage, Spencer Scott, senior vice-president of advertising and digital at CarGurus, said there was a proliferation of data and that mobile phones were used especially heavily in the UK when it came to car buying.

And in a discussion with Car Dealer founder James Baggott and editor Rebecca Chaplin, Scott said that dealers would continue to have a role to play as car buying moved online.

He said manufacturers wouldn’t want to take on that responsibility and would much rather sell to dealers. ‘Also, consumer interaction is in the hands of the dealers already.

‘Look at Tesla, look at others that have tried.

You do need dealers.’

Scott’s presentation was followed by one from Hamel Soni, senior industry manager for automotive at Google.

He said: ‘We live in a world right now where we see a more empowered consumer than ever before. They are connected all the time. The smart devices they have around them means that they are more impatient, more curious and more demanding than they have ever been before.’

With this in mind, he said, ‘it’s really important that we have an experience for them that makes the car-buying process as frictionless as possible’.

Download the CarGurus White Paper at bit.ly/CDX19-CarGurus 42 | CarDealerMag.co.uk

Workshop

Attract the buyers who start with search engines WITH many people starting their car-buying journey by using search engines – most notably Google – dealers are missing out by not using paid search to target customers.

That was the key message from Spencer Scott, below, senior vice-president of advertising and digital at CarGurus.

CarGurus has a long history of using paid search to promote its UK automotive marketplace, and it is now using its wealth of experience to benefit other dealers.

Paid search is essentially paying for specific words that a consumer might be searching for on sites such as Google – these ‘ad’ results appear at the top of the page before any organic posts.

Also in the workshop was Nathan Quayle, group marketing manager at Fords of Winsford car supermarket. Quayle said: ‘Paid search works best for our website.

I wanted a new type of customer and I wanted them to come to us first, which is why paid search works for us.’

Live Stage | CitNOW |

‘Blending digital and physical experience is really important’ And a surprising element of video company’s presentation?

Dealerships are more popular now than they were in 2009.

B

lending the physical and digital experience for customers is key to the future success of car dealerships, an audience at CDX heard.

CitNOW commercial director Carol Fairchild revealed in her Live Stage keynote address to dealers that buyer behaviours don’t necessarily fit stereotypes and that they’re continuing to change. The video technology company published its White Paper, ‘The evolution of the car buyer’, exclusively at Car Dealer Magazine’s huge automotive expo in Farnborough, with Fairchild’s presentation addressing many of the points contained within it.

The study of 1,000 UK customers revealed that: • Buyers today are conducting the majority of their research online • The manufacturer’s website is the most likely

place for an online car buyer to visit first (30 per cent), followed by the dealership’s website (26 per cent) • The importance of visiting a dealership is set to grow in the future – more than half of all drivers will visit a dealership when researching their next vehicle • More than one in 10 buyers are ready to buy the car on the day they visit • Nearly a third (32 per cent) of car buyers are comfortable buying a vehicle entirely online, making high-quality assets such as images and video crucial • The most important aspect of a new car for buyers has been the way it drives – but research shows that is going to change • Environmental and cost factors are particularly important for younger buyers (those aged from 18 to 24).

Even with the rise of online research and purchasing though, dealerships continue to be popular. Fairchild told her audience: ‘People want to go to dealerships more now than in 2009.’

Turning to the buyer of the future, she said: ‘Most customer journeys take around two months. Seventy per cent of the online journey takes place on mobile devices.

‘Seventy per cent of people want online reviews, 88 per cent want high-quality images and 67 per cent want video. Video is a key part of the customer journey.

‘Fifty-five per cent of people want to visit a dealership and 35 per cent expect to visit more than one. And most age groups still want face-to-face contact. Blending the digital and physical experience for the customer is really important.’

There was no shortage of delegates listening to our keynote speakers on the Live Stage

Workshop Why video is the key to dealership success VIDEO is playing a huge part in countless dealerships, and CitNOW is leading the charge in camera-based content that has the potential to transform the way dealers interact with potential clients.

Headed up by Gordon Grant and Oliver Parsons from CitNOW, the company’s workshop discussed a topic that had featured prominently thoughout CDX – the consumer’s transition from digital to physical. ‘It can fall completely flat when the consumer wants to leave the digital space and enter the physical,’ said Grant. ‘When customers engage with a dealership, it’s highly variable what happens next.’

CitNOW is organising a way for dealers to closely interact with those interested in buying a car. Customers can now get instant videos from dealers showcasing the car that they are interested in, all before they have to set foot in the dealership.

It allows for the instant creation of a relationship between seller and buyer, making the whole process more streamlined and effective. According to Parsons, ‘videos increase the level of personal engagement’ – and it’s easy to see how.

Carol Fairchild, left, was among the speakers on the CDX LIve Stage

Download the CitNOW White Paper at bit.ly/CDX19-CitNOW

Gordon Grant, left, and Oliver Parsons address the workshop CarDealerMag.co.uk | 43

CDX 2019.

Workshop round-up | Codeweavers’ data tips CODEWEAVERS provides software solutions to the motoring industry, and Paul Boocock and Rebecca Boocock were attending CDX to chat about how data – and the way it is interpreted – can help dealers.

‘Looking at your own data is really important,’ said Paul. ‘It’s important to understand what the data is and where it has come from – otherwise you can easily be misled by it.’

Although data can often be bewildering to look at and understand, it’s crucial to working out why people are visiting a website and what leads them to a car purchase. It can also highlight when consumers are looking for a car – ‘the most popular time to go online is seven to nine in the evening’ – and even show how people are searching for car finance.

‘If it takes you four hours to reply to an email, that’s friction’ ... and it needs to be removed from the sales process if dealerships are to succeed in making customers’ lives easier, says Rob Purfield.

H

Time to get the message AS an industry, we’re slowly taking advantage of social media and video to help sell cars, but how many dealers are already using messages to talk with customers?

If you’re not, you could be missing out on key opportunities, according to Facebook’s client solutions manager of automotive, Aiden White.

That’s because 64 per cent of consumers would choose messaging over picking up the phone or sending an email.

Facebook is at the heart of digital communication as it has apps such as Messenger, WhatsApp and Instagram (which has a direct messaging service).

White said: ‘Messaging is critical to engage customers and grow your business in the next five years.’

A look at post-Brexit law BREXIT was a word on everyone’s lips at CDX – and Nona Bowkis from Lawgistics was on hand to explain what leaving the European Union will mean for dealers.

‘We won’t be bound by any new laws – but we will be bound by older, pre-existing laws,’ she said, showing that while many think the UK’s departure will mean a clean slate in terms of legislation, the country will still have to adhere to laws already implemented by the UK and EU. For instance, as Bowkis highlighted, ‘GDPR is still going to be in the UK after Brexit’, while ‘in or out of Europe, there are going to be more workers’ rights’.

According to Lawgistics, however, the rules that dictate how cars are sold are unlikely to change.

44 | CarDealerMag.co.uk

Rob Purfield addressing his audience at CDX

ow often do you look at your business from a customer’s point of view? That was the message from motor trade profit expert Rob Purfield at CDX, in a workshop entitled: ‘What’s the point of a car showroom?’

The car retailing industry is often accused of being behind the times when compared to other forms of retailing, and Purfield used Apple Stores as an example of a success story, because the tech giant’s shops ‘enhance the customer buying experience by encouraging you to try the products’.

Purfield went on to explain the importance of the ‘F word’. No, not that, but ‘frictionless’.

‘Every person who is successful in retail is taking friction out of their business, and to do that you must start with the customer. If it takes an average of four hours for a dealer to reply to an email, that’s friction. Take friction out of everything, because the only point of a dealer is to enhance the customer buying experience.’

Research says that a ‘typical’ buyer does 14 hours of research before buying a car, and that 40 per cent of people walking into showrooms are ‘buyer-ready’. ‘When a customer walks through that door, they are not there to tell you that they don’t want a car. We need to stop being sales prevention officers,’ Purfield explained.

He urged his audience to ensure that people feel special when they walk through the door, to validate their choice of supplier and to validate that you are the right person to buy from.

Get ‘clicks to bricks’ right as buying journey changes THE path of the consumer is changing. With car buyers taking a far different journey to the dealership than they did 15 years ago, the way dealers need to interact with them needs to change too – which is where Tanesha Stafford from Armchair Marketing comes in.

‘There are 24 research touchpoints in the consumer car-buying journey,’ said Stafford, highlighting mobile phones, computers and family members as sources of information.

Incredibly, 71 per cent of searches for a new car begin on mobile, with buyers picking up their

phone to browse long before they think about driving to take a look at it.

Joining Stafford was Neil Smith from Imperial Cars. He discussed his belief in ‘clicks to bricks’, or the process of transferring buyers from the digital world to the physical one. ‘We still fully believe in the physical,’ said Smith, adding that people still need to get up close and personal with cars, and that the dealership still has a role in the car-buying process. The web definitely benefits physical dealers – and it’s all about making the one work as well as possible for the other.

Workshop round-up |

Relationship that’s more important than your pay

Johnty Mongan of Gallagher had great advice about how dealers can protect themselves online

Protect yourself from risks of cyber crime Being proactive about internet security and ensuring that systems are up to date are the best ways to keep online crooks at bay.

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yber crime is a far larger threat than most dealers imagine. It has the potential to decimate funds and strip companies of assets far more valuable than anything you could hide away in a filing cabinet. Fortunately, a workshop at this year’s CDX focused on precisely this issue, and Johnty Mongan, a cyber risk consultant for Gallagher Insurance, gave an insightful talk about what dealers can do to minimise the effects of cyber crime – and how dealerships can make themselves less vulnerable.

‘I used to make a living out of hacking companies and showing them how I did it,’ Mongan told his audience, showcasing a variety of ways criminals use online tools to access and trace a company’s data. ‘Car dealerships are

particularly vulnerable’, he stated, and added that although some businesses may feel secure online, proper training and monitoring of devices is crucial to a company’s safety.

Mongan explained how dealers using older computer systems could be particularly at risk, with hackers able to easily gain access to servers and webmail. Likewise, hackers can use programs such as ransomware to take a dealer’s information and lock it away, only releasing it when the victim pays up. It’s a way for computer hackers to quickly make money, but it can be devastating for the businesses involved.

However, by being proactive about cybersecurity and ensuring that systems are kept up to date, dealers can protect themselves.

‘We need to join online and offline more transparently’ DISCUSSING a theme that was present throughout the day, Paul Stokes, head of online retailing for GForces, kicked off by highlighting a major shift in the way people buy cars. ‘Consumer habits have changed radically – we’re seeing far more embracing of online solutions.’

And although the motor industry is coming around to the digital age, Stokes said that ‘the buying model has not evolved in line with consumer buying habits’. Dealers need to be more attuned to how their businesses are showcased online, and ensure there isn’t a drop-off when

people transition from browsing on the web to purchasing in person. ‘We need to join online and offline more transparently,’ said Stokes.

‘The only reason why consumers aren’t buying cars online currently is because there aren’t enough solutions out there for them to do so.’

He also confirmed that GForces was pushing towards e-commerce – ‘We think customers are ready’ – with a new offering called Auto-e.

It’s designed to include ‘every essential aspect of online vehicle sales’, bringing dealers a new way of improving their online presence.

ATTRACTING the right people and retaining them has been a common topic at CDX in recent years. And it was a theme this year, with Fiona Cottle, people director at Sytner Car Supermarket Division, hosting a session on the best ways to make a dealership a place where people want to work.

Cottle explained that giving people a reason to join a firm and then to stay was vital. ‘We’ve found that a relationship with a manager is more important than pay, and ‘‘culture’’ is key, because that can provide resilience in tough times. Strategies can be copied, but culture can’t.’

As with most larger firms, Sytner’s car supermarkets have their own values, but perhaps unlike other companies, the values were compiled using staff feedback.

The five that the firm has settled on are for staff to be determined, always be one team, be trustworthy, always evolve, and be at their best. Cottle explained that staff retention still needed to get better, but that improvements had been made since this new ‘culture’ had been introduced.

‘Colleague experience is at our heart, and transparency is key,’ she said.

‘If that’s what our customers expect, then so should our colleagues.’

Answer questions quickly AMONG the many themes to come out of CDX 2019 was just how important it is for dealerships to embrace messaging as a way for consumers to contact them.

Dealers such as Stoneacre Motor Group are reporting that more than 60 per cent of discussions with buyers start on mobile.

Stoneacre has been working with LivePerson – a firm that offers AI-powered messaging services that work with popular apps such as WhatsApp – in order to ensure customer questions are answered without lengthy email chains.

The dealer group joined forces with the messaging service last year and has seen huge increases in sales, which is partly down to adopting this service.

Sacha Miller, digital manager at Stoneacre, said: ‘It’s incredible to see the transformation in our departments that has come from adopting messaging, and the growth we’re seeing month on month.’

CarDealerMag.co.uk | 45

CDX 2019.

WITMI

From left, Nona Bowkls, Louise Baker and Fiona Cottle tackle the important issues about women working in the auto industry

Empowerment is name of game Session deals with the all-important issue of inclusion and opening the industry to everyone.

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omen in the Motor Industry is always one of the highlights of CDX – and this year’s session saw three women from completely different areas of the industry taking the spotlight.

Car Dealer’s Rebecca Chaplin was joined

by Lawgistics solicitor and legal adviser Nona Bowkis, as well as Fiona Cottle, head of people at Sytner Car Supermarkets, and Louise Baker, founder of Womanic, which offers car maintenance with a feminine touch.

A key theme of this year’s WITMI was the need to attract more women to the industry.

A major part of Cottle’s role is getting people to join Sytner’s supermarkets – Car Shop and The Car People – and encouraging them to stay.

She said: ‘For me it’s about equality of opportunity for everybody. It’s about making sure that we open the industry to everyone – including those who have never thought about working in the automotive industry before.

‘We need to make sure that we attract women into the industry by the way we advertise and promote our brands so that they are attractive to both men and women.’

Cottle’s background is in the retail industry,

Women in the Motor Industry

where she spent many years with Primark.

She joined Sytner a couple of years ago, and described the automotive industry as a ‘steep learning curve’.

The next woman with the mic was Louise Baker. As well as being the owner of Womanic – a workshop that employs female mechanics – she also recently set up Heels to Wheels, which teaches women basic car maintenance to give them more confidence and independence.

‘I listened to my customers and many didn’t

‘Whatever you want to do in life, go and do it. Your gender or where you’ve come from doesn’t matter.’

46 | CarDealerMag.co.uk

know the basics of car maintenance – checking tyre pressures, for example. I thought I could help by offering a course to show women exactly what to do and it would also save them so much money,’ she said.

‘Not only does it give women more independence, but it can also give them confidence when stepping into a garage to have their car fixed. What I’m trying to do is inspire and motivate more women to get hands-on with their car and get into the trade.’

Baker also called for many of these basics to be taught in school, and said that women shouldn’t be afraid ‘to get their hands dirty’.

Bowkis followed and her message was of empowerment – what WITMI is all about.

Lawgistics is a legal firm that is entirely based around the automotive sector, and Bowkis chose law as a second career.

She told the audience that having come from a working-class family in Essex, it was quite a challenge to get into this notoriously class-dominated industry.

‘Law tends to be operated by higher classes, and it’s not historically meant for people like me,’ she said.

‘There’s still work to be done, but whatever you want to do in life, go and do it.

‘It doesn’t matter how old you are, what your gender is or where you’ve come from, just always do what you want to do.’

Live Stage | Dealers’ Den |

Louise slays ‘dragons’ with course to teach women maintenance Grand prize of free support from PR experts and free advertising will give initiative boost that could see it established as a franchise.

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ew to CDX this year was Dealers’ Den – the chance for budding companies and start-ups to pitch to industry leaders for a prize worth thousands of pounds – a year’s free PR and editorial support from OnCue Communications plus free advertising in Car Dealer Magazine.

Each hopeful was given five minutes to try to convince the panel of ‘dragons’ that their product was the one that deserved to win this valuable backing.

After each entrant had told the panellists what their product was, how it worked and its potential for the industry, they were grilled by the ‘dragons’, who then cast their votes.

Four of the top names in the automotive industry comprised the panel: Daksh Gupta, John O’Hanlon, Neil Smith and Liam Quegan.

Gupta is chief executive of Marshall Motor Group, which was established in 1909 and is now the seventh-largest dealer group in the UK, with 106 showrooms representing 23 manufacturers.

O’Hanlon launched the exclusively Volvo dealership group Waylands Automotive in November 2017 after stepping down as chief executive of Ridgeway the previous year following its acquisition by Marshall for £106.9m.

Waylands now has dealerships in Reading, Newbury, Swindon and Oxford.

Smith is operations director of Imperial Cars and has played a central role in the company’s expansion from six to more than a dozen sites in only three years.

Quegan has been managing director of NextGear Capital – part of the Cox Automotive family – since December 2017. Previous roles have included chief operating officer of Close Brothers Motor Finance and director of operations for collections and recoveries at Capital One. The first to enter the lair of the ‘dragons’ was Louise Baker, founder of Womanic – a company striving for more female mechanics in the

Louise Baker with the tamed ‘dragons’ of Dealers’ Den – from left, Liam Quegan, Neil Smith, John O’Hanlon and Daksh Gupta

Bangers4Ben industry. She presented Heels to Wheels, which is a course enabling women to learn basic car maintenance. Next was Martin Stokes of AU Assist. He demonstrated an app that he said revolutionises the way garages, dealerships and customers stay in contact for promotions, quotes, invoices and updates on repairs.

Our third candidate was Ronnie Wilson, chief executive of First Step Trust – a charity that helps people excluded from working life because of mental health conditions, learning disabilities, drug or alcohol issues and other disadvantages.

He gave the ‘dragons’ a taste of a video tuition tool that helps disadvantaged people learn and gain a career in a workshop.

Finally, Jonathan Moffett, business development director at Attensi, took to the stage to present the company’s gamified 3D simulations that represent a new method to achieve real, measurable behaviour changes in organisations by making corporate training fun.

Each candidate gave it their all during a fascinating session sponsored by Cox Automotive but there could only be one winner – and that was Baker, who gained three out of the possible four votes.

Speaking to Car Dealer Magazine about her victory, she said: ‘I was gobsmacked. My heart was in my mouth the entire time, but I really enjoyed the experience. The people were really friendly and supportive, and they gave me some good advice. I’ve only ever dreamt of owning my own garage and branching out nationwide, so hopefully I’ll gain some investment in the future and build myself a little franchise.

‘I’m hoping to get other female mechanics on board and have an even playing field.’

‘My heart was in my mouth the entire time, but I really enjoyed the experience.’

Sign up and rally round to raise cash for charity BANGERS4BEN 2019 was launched at CDX with places on our madcap fundraising rally being snapped up as soon as the doors opened at Farnborough International.

There are still a few slots left but they’re bound to be grabbed quickly – go to bit.ly/B4B-2019 to sign up.

Now in its 11th year, the event in aid of automotive industry charity Ben really does put the ‘fun’ into ‘fundraising’, and for 2019 it’s got a distinctly French flavour.

The event starts with the overnight ferry from Portsmouth to Le Havre on October 4, with participants then going on to Le Mans, Bordeaux and Nantes. The emphasis will be on la bonne vie, courtesy of a cheese and wine tour, and it finishes on October 8.

Entry costs the same as last year – £650 plus VAT for a team of two – and your banger can’t cost more than £750. [CD]

Louise Baker CarDealerMag.co.uk | 47

Focus on.

Warranty providers

Making the difference between profit and loss THE WMS GROUP

W: www.WMSGroup.co.uk

The warranty experts

T: 01844 293810

I

t’s not big news that margins are under pressure in both the new and used car markets, but 2019 has shown itself to be the year that is setting apart great-performing dealerships from the ones who are just getting by.

‘Taking the time with customers to offer them the products they already want to buy is what can make the difference between profit and loss,’ explains managing director of The WMS Group John Colinswood.

Warranty provider WMS is seeing that, in response to customers holding on to their cars for longer or choosing used over new, car buyers are opting for more expensive, longer-term warranties. WMS refers to itself as ‘the warranty expert’, making it no surprise that more than 1.5 million motorists have taken out a warranty product from the business and that so many UK dealerships choose to protect their customers with its extended warranty products.

With that many warranties and claims, The WMS Group is vastly experienced in how these products can be upsold and how they can be used to improve customer retention.

‘Dealers have a massive problem at the moment,’ says Colinswood. ‘Margins are so tight and under such pressure that they can’t afford to not get it right when it comes to add-on products.

‘The biggest concern for customers is how long a warranty lasts. Car buyers want a three-year warranty and they want to know that they’re properly covered should something go wrong.’

It’s been a great year so far for The WMS Group, which has been watching its warranty sales grow, and it’s testament to the business’s excellent customer service and quick response times. It

‘Make the customer’s life easier by offering these added-value products.’

John Colinswood 48 | CarDealerMag.co.uk

There’s never been a better time for dealers to ensure their warranty offering is up to scratch prides itself on looking after its customers with payments within 24 hours.

‘The proof of the pudding is in the eating, as they say, when it comes to our customer service,’ said Colinswood. ‘Our aim is to get people on the road again as quickly as possible, and most of our customers will get their claims paid on the same day.’

WMS offers the whole package for dealers: warranty products – including the fantastic Safe & Sound ultimate used car warranty scheme – gap insurance and smart repair.

The warranties are designed to offer the right level of protection for your customers – ranging from a three-month basic level of cover to a three-year product with cover for wear and tear, mechanical and electrical issues. For customers, it’s great peace of mind, while for dealerships, these can generate new revenue streams. It has the added benefit of helping to attract new buyers looking for a dealership they can trust to sort out any problems, but gives existing customers a great reason to keep coming back, too.

Its halo product is Safe & Sound – its ultimate used car warranty scheme. This adds a 60-point safety inspection of the car, full background check, ultimate warranty, UK breakdown rescue and recovery, and a buy-back promise – plus the added benefit for dealers of TV advertising with the former Stig Ben Collins!

It’s not just about having the products available – dealers need to make these warranties easily available to customers and ensure their sales staff are well versed in the benefits.

‘There are some really switched-on dealers and they see the return,’ explains Colinswood.

‘We see other sales people who can’t be bothered to sell these add-on products and don’t see the added value. In turn, they don’t see the same return and are missing an opportunity to turn a loss-making business into a profitable one. By training their staff properly in these products and taking the time with customers, they can make sure they give the customer the opportunity to buy.’

As dealerships are seeing an increase in used car sales, there’s never been a better time to ensure your warranty offering is up to scratch, he tells Car Dealer.

‘Customers want a three-year warranty, but if you’re not offering that, they’re never going to go for it. With more consumers choosing a used car, they equally want to know they’ve got the peace of mind that comes with a great warranty product.

‘Really, it’s about doing the same things but doing them properly. Mention early on in the deal what’s available and why customers should consider it. Make the customer’s life easier by offering these added-value products.’

The warranty experts

The Automotive industry’s best kept secret...

www.

WMSGroup.co.u

k

Does your current warranty product still suit your business and customer needs?

For over 15 years the WMS Group has been providing extended warranty cover and other motoring products to over 3,500 dealerships across the UK. Our warranty products are proven to help attract and retain customers, increase workshop revenue and maximise profitability.

Award-winning warranties

Our warranty products have been voted best in class by UK dealers

24/7 telephone support

Your customers can receive assistance any time of the day

24 hours claims settlement

All valid claims within 24 hours of receipt of invoice

Warranty Provider of the Year 2018 For the fourth year in succession!

CarDealerMag.co.uk | 49

Focus on.

Warranty providers

Why Warrantywise is the best choice WARRANTYWISE

T: 0800 001 4551 W: warrantywise.co.uk/cardealer

Endorsed by industry figurehead Quentin Willson, Warrantywise covers every single make and model of car on the market

F

ounded in 2000, Warrantywise is the UK’s leading car warranty company that you should be looking to work with if you want to protect your customers’ vehicles, enhance your reputation and increase your profits.

This well-known business has more than 6,000 used car dealerships and 750,000 warranty customers on board – figures that speak for themselves. With a great product to its name and a host of famous faces delivering ringing endorsements, there’s no doubting the company’s credentials.

Every year, over 1,000,000 cars are left unprotected when the manufacturer’s warranty expires. Such vehicles have the potential to cost their owners millions of pounds in repair bills

‘If you’re looking for a warranty company to work with, Warrantywise is the obvious choice.’

50 | CarDealerMag.co.uk

during the vehicle’s fourth year and beyond.

As a car dealer, it is your duty to offer your customers the highest level of cover, not only to protect them from unexpected breakdowns but also to protect yourself. Selling warranties has never been more beneficial and provides a great extra revenue stream for your business.

The company offers five different levels of cover, based on the age and mileage of the car.

These are: Bronze, Silver, Gold, Platinum and Platinum Plus. Warrantywise couldn’t be more welcoming to new dealer partners.

A new business adviser will introduce you to the product and help you become familiar with it, before a personal account manager is introduced to look after you for the rest of your time with Warrantywise.

But why should your dealership be using Warrantywise over other warranty providers? The reasons are plentiful.

Endorsed by industry figurehead Quentin Willson, Warrantywise covers every single make and model of car on the market.

All repairs are handled in-house for your peace

of mind and the company has higher single repair limits than any other.

Repairs can also be done at any VAT-registered garage of your choice, meaning there are no customer limitations.

Flexible labour rates are available and roadside assistance and recovery are included free of charge. Warrantywise also offers bespoke tailored packages to suit your exact needs, along with competitive pricing and enhanced profit margins for extra dealer revenue.

The company covers the cost of parts in pairs, wear and tear, and cover from day one, with no insurance premium tax charged.

Warrantywise aims to take all the hassle away from you so you can focus on the business of selling cars and running your dealership.

As if all this wasn’t amazing enough, Warrantywise is currently running an offer for new business customers whereby if you switch to Warrantywise you’ll receive £1,000! (Terms and conditions apply.)

If you’re looking for a warranty company to work with, Warrantywise is the obvious choice.

The UK’s Best Used Car Warranty

Sign Up

Book

Receive

Sign up with Warrantywise, and your dedicated Account Manger will handle your switch.

Book 25 Warranty Plans, and get access to our dealer portal and exclusive point of sale.

We will send you ÂŁ1,000 as a thank you for switching!

CarDealerMag.co.uk | 51

Focus on.

Trade insurance providers

Commitment to our clients isMotor the Unicom difference Trade Combined Policy

MECHANICS ARE W OUR SPECIALTY UNICOM INSURANCE

hen things are going well in business, it might be tempting to think that you’re invincible; that mishaps and misfortune are things that affect other people, not you.

However, it’s a fact of life that the worst can sometimes happen, and when it does, you’ll need some help and assistance.

That’s where Unicom Insurance comes in.

The company has been firmly on the side of motor traders and mechanics for more than 30 years now, providing peace of mind and arranging first-class insurance policies for very reasonable premiums.

And those policies can prove priceless, whatever sector of the automotive industry you operate in. Unicom insures part-time motor traders, mechanics, valeters, tyre fitters and breakdown firms – to name just a few categories.

In short, if you operate in the automotive world, Unicom can cover you.

Car Dealer caught up with operations manager Barry Sciara recently, who told us what the company had been up to lately, and a bit about its exciting plans for the future, which involve a partnership with household name Aviva.

The reason is that Aviva has a first-class motor trade combined policy which Unicom will soon be providing for its clients.

This will build on the enormous success Unicom has had providing cover for home traders who might trade cars from a private address or carry out mechanical work on a similar basis.

Sciara told us: ‘The combined policy we will be offering with Aviva will be a bigger, more comprehensive policy for main dealers, garages, and people with sites. ‘We have pretty much got the market cornered for people who are trading at home – part-time traders. Now we want to upscale and move up

E: enquiries@unicominsurance.com

SUMS INSURED FOR s 4ENANTS IMPROVEMENTS s 0ORTABLE HAND TOOLS AND TOOLBOXES s -ACHINERY AND PLANT s %LECTRONIC OFl CE EQUIPMENT into bigger businesses. We might be looking s 6EHICLES BELONGING TO YOU at businesses that are growing and getting a place themselves. They’re progressing and their AT PREMISES insurance needs to progress with them. ‘We will, of course, continue to work with our s #USTOMER 3TOCK 6EHICLES many valued clients who are part-time traders mobile valeters but now we are progressing s -/.%9 !33!5,4 and into this next segment – the professional space the big businesses are. !.$ 72/.'&5, where ‘A key part of our new offering is, of course, the name – it’s Aviva at the end of the day, a name #/.6%23)/. #/6%2%$ that will inspire a huge amount of confidence in anyone looking for motor trade insurance. The s "53).%33 ).4%22504)/. policy that they have designed is very robust and the key things that a business needs in s 05",)# ,)!"),)49 covers order to operate. ‘A key point is that it’s highly tailorable. So s %-0,/9%23 ,)!"),)49 if you don’t need a certain section, or you want cover for a particular extra element, we will be s "5),$).'3 !.$ #/.4%.43 able to pick and choose and get the cover exactly

‘At every point of contact, our clients speak to someone who knows what they are talking about and is well versed in the workings of the motor industry.’ Barry Sciara 52 | CarDealerMag.co.uk

right for you. For instance, a company that rents a forecourt might not need buildings cover.’ It’s clear the level of cover you need will be provided to suit your needs exactly, but what kind of customer service does Unicom provide?

Well, it can point to success in the 2017 Car Dealer Power awards, winning the Trade Insurance Provider of the Year category, and the fact that the vast majority of its customers remain loyal once the period of a particular policy has ended.

Sciara told us: ‘Our renewal rate has stood at 80-85 per cent for some time now, which is very good considering insurance premium tax has

T: 020 8805 7799

gone up and premiums have increased – two factors that are outside our control. ‘We’re looking at different finance providers to get our clients’ interest rates on their finance products a lot lower, so that people who are paying by direct debit are not paying as much. ‘There are certain factors that we can’t influence, so the next best thing we can do is provide the best possible service to them.’ A great example of the excellent service Unicom provides to its customers is simply the website – which is a massively useful resource and contains far more information than an article of this nature ever could! ‘The website has been designed for existing customers,’ explained Sciara. ‘Yes, there are sections on there for new people to get a quote, but it’s very much focused on our existing customers with contact details, of course, the ability to download documents and a motor insurance database section. ‘We just try to make our processes as smooth as possible for everyone. ‘It’s not necessarily the price that appeals to our clients. What makes our clients happy is our customer service. At every point of contact, our clients speak to someone who knows what they are talking about and is well versed in the workings of the motor industry.’ With first-class policies and excellent customer service delivered by helpful, knowledgeable staff, don’t be surprised to see Unicom Insurance picking up another Car Dealer Power trophy later this year!

Motor Trade Combined Policy

MECHANICS ARE OUR SPECIALTY SUMS INSURED FOR s 4ENANTS IMPROVEMENTS s 0ORTABLE HAND TOOLS AND TOOLBOXES s -ACHINERY AND PLANT s %LECTRONIC OFl CE EQUIPMENT s 6EHICLES BELONGING TO YOU AT PREMISES s #USTOMER 3TOCK 6EHICLES s -/.%9 !33!5,4 !.$ 72/.'&5, #/.6%23)/. #/6%2%$ s "53).%33 ).4%22504)/. s 05",)# ,)!"),)49 s %-0,/9%23 ,)!"),)49 s "5),$).'3 !.$ #/.4%.43

CarDealerMag.co.uk | 53

Specialist Car Dealership Insurance

The Gallagher Automotive Team delivers cover which encompasses a spectrum of automotive businesses including both multinational and non-franchised dealerships. We are automotive specialists, and for over 50 years we have focused on arranging individual insurance cover which reflects the needs of your business.

Competitive cover, designed with you in mind.

Our unique approach

Our nationwide team of automotive brokers, working alongside

We understand that each dealership has different needs. We

a wide range of specialist underwriters, places over £30 million

take the time to understand the intricate details of your business,

of premium into the motor trade insurance market, annually.The

enabling us to identify risk where others may not. Whether you

Gallagher Automotive team only place automotive cover, so they

are a multi-franchised or non-franchised, multi-site or single site

are well versed in identifying the risks that your dealership faces

dealership, we can place cover that works for you.

both on premises and on the road. They will work with you to create a tailored policy that’s right for your business. We are a family-run

Our connections

firm with a strong service ethic, able to use local knowledge while

The Retail Motor Industry Federation Limited (RMI), the Institute

tapping into global resources. We are one of the largest brokers in

of Motor Industry (IMI) and the Society of Motor Manufacturers

the world, our size and insurance footprint means we can deliver

and Traders (SMMT) all work in association with Arthur J.

policies that are exclusive to us. We understand automotive risk, and

Gallagher Insurance Brokers Limited.Competitive cover, designed

underwriters trust us and want to work with us. We create inclusive

with you in mind.

policies, factoring in areas of risk that other companies may not.

Whether you need storm cover to protect your premises or business interruption cover while you get back on your feet, our specialist automotive brokers can deliver.

What makes Gallagher Automotive different?

At Gallagher we offer a different approach to clients, taking the time to create a unique package which reflects their needs. Our culture of innovation and excellence doesn’t just cover the policies we create; it extends to our employees too. We invest in our team, ensuring they have the resources they need to excel in their roles. www.ajg.com/uk © 2019 Arthur J. Gallagher & Co.

54 | CarDealerMag.co.uk

Our ethics

• Gallagher Business Assist – Our claims consultants will work

We are committed to quality, and to maintaining the highest levels

with you following a major property damage loss, minimising

of client service and moral and ethical behaviour. Our commitment

the stress at an often taxing time.

to these ideals has led to numerous awards and recognitions

• OHES – Receive environmental impact protection, helping

including being voted one of the World’s Most Ethical Companies

you to navigate environmental challenges your business

by Ethisphere for eight consecutive years – to date, we are the

may face.

only insurance broker to have achieved this.

• Crisis Resilience – Our programme offers 24/7 support to assist you in a crisis including emergency funds, business recovery

No obligation assessments

advice and trauma counselling.

We are confident that we can arrange suitable cover for your dealership. We offer a no obligation assessment of your premises,

Policy limits and exclusions may apply please see policy wording for full terms and conditions.

assessing your risk exposures against your current programme to make sure the sums sums insured and covers in place are adequate.

Would you like to talk?

What we offer

For More Information Contact The Automotive Team:

We design bespoke insurance cover to incorporate your individual

Gallagher 253 Capability Green | Luton | Bedfordshire | LU1 3LU

needs, including (but not limited to): • Motor Trade Combined cover – this cover helps protect you

T: +44 (0)800 612 22 84 | E: automotive_enquiries@ajg.com

against the traditional perils dealerships face, including theft, flood, fire, storm, business interruption, employer liability, public liability (including sales & servicing indemnity, merchantable quality disputes, etc.) and road risks.

• Risk Management – Our consultants can assist with meeting HSE requirements and other legislation.

• Cyber Liability & Crime – As technology evolves, this cover will become more and more vital. From customer records to connected cars with internet access, data is an increasing risk for dealerships.

ARTUK-332521181

www.ajg.com/uk

gallagher-uk

@GallagherUK

Black Horse Limited is a division of Lloyds Banking Group. Lloyds Bank Business Insurance Services are arranged and administered by Arthur J. Gallagher Insurance Brokers Limited which sources from a panel of insurers. WhoCanFixMyCar.com Ltd are an introducer appointed representative of Arthur J. Gallagher Insurance Brokers Limited.

Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority, Registered office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow G2 7AT. Registered in Scotland.

Company Number: SC108909 FP328-2019 Exp. 21.03.2020

CarDealerMag.co.uk | 55

Focus on.

Autoglym

Autoglym LifeShine – the industry’s most trusted partner AUTOGLYM

W: lifeshine.com T: 01462 677766

T

hey say you can judge both businesses and individuals on the company that they keep, and in the case of Autoglym’s successful LifeShine Vehicle Protection System (VPS), it’s fair to say that the Letchworth-based firm is certainly moving in the right circles.

Although the VPS market is clearly very well served, LifeShine’s ability to offer incremental profit and customer retention, backed by exceptional dealer training, a royalwarranted household name and the very latest in surface care technology, means that more and more vehicle manufacturers and dealer groups are moving over to Autoglym’s rapidly burgeoning brand. At the last count, LifeShine is approved

by VW Group, Honda, Mazda, Kia, MG Motors, Vauxhall, Subaru, Isuzu and JLR – and that’s before you start looking at dealer group-level partnerships with hallowed names such as Sytner, Marshall and Group 1 Automotive.

‘We see our relationship with both vehicle manufacturers and dealer groups as much more of a partnership rather than a simple sales and supply situation,’ explains Paul Caller, Autoglym CEO. ‘We know that the market is tough at the moment, with legislational changes and the sheer uncertainty around both the EV and diesel markets, so we work closely with our partners to ensure that this part of their business delivers

‘LifeShine has delivered significant increases in both accessories sales per vehicle and incremental profit.’

Andrew Winfield

56 | CarDealerMag.co.uk

LifeShine offers an easy way to add profit and increase retention – all covered by a lifetime guarantee consistently and easily, delivering both a solid bottom line and, perhaps just as importantly, the ability to genuinely delight and add value to their end users.’

This three-dimensional approach seems to be working. Not only does Autoglym have unparalleled access to manufacturer paint and surface samples during even the prototype phase of new vehicle design, allowing LifeShine to be tested to a level not available to other surface care manufacturers, but the firm also invests heavily in high-quality point-of-sale material and dealerlevel training to empower showroom staff with both the tools and the knowledge that they need to consistently close sales.

For many manufacturers, it’s making a big difference to their numbers. Andrew Winfield, parts and accessories manager for Honda UK, is one of many who has added LifeShine to his approved line-up.

‘The impact on our accessories business was immediate,’ he enthuses.

‘LifeShine has delivered significant increases in both accessories sales per vehicle and incremental profit. A large proportion of our network report increased sales penetrations, often in excess of 60 per cent, on new vehicles. We’re delighted with the way our relationship with Autoglym is working and we look forward to growing the business even further, for the mutual benefit of Honda UK and our dealer network.’

Continuing to invest to make life easier for both dealers and end users, LifeShine offers a dedicated business manager for each and every vehicle manufacturer and dealer group, and even provides an easy-to-use app for both sales staff and customers to ensure that the knowledge is easily at their fingertips. This removes any objections and can handle all common FAQs. The ever-changing new car market looks set to challenge the industry for a good while yet, but at least LifeShine offers an easier way to add profit and increase retention. And the best bit? It’s all covered by a lifetime guarantee.

CarDealerMag.co.uk | 57

Data file.

Thestatistics

SMMT sales data

| SMMT SALES DATA | TAKING STOCK |

May/year to date

MAY FIGURES

Another fall in new car sales – but at least used segment is doing well

D

emand for new cars fell by 4.6 per cent in May. Some 184,000 new cars were registered compared with 193,000 during the same month in 2018, the Society of Motor Manufacturers and Traders reported.

Private and business registrations fell by five per cent and 29 per cent respectively during the month, while fleet sales dropped by three per cent.

Sales of diesel models dropped by 18.3 per cent year-on-year but petrol saw a rise of one per cent.

Demand for alternatively fuelled vehicles, such as hybrids and pure electrics, increased by 11.7 per cent to take a market share of 6.6 per cent.

There has been growing concern about the impact of diesel car emissions on air quality, and uncertainty about what taxes and restrictions will be introduced on the vehicles.

Government grants for new lowemission cars were slashed last October, meaning hybrid models are no longer eligible for the scheme.

SMMT chief executive Mike Hawes said: ‘Confusing policy messages and changes to incentives continue to affect consumer and business confidence,

causing drivers to keep hold of their older, more-polluting vehicles for longer.

‘New cars are safer, cleaner and more advanced than ever.

‘With sophisticated safety, efficiency and comfort features, as well as a host of attractive deals on offer, there has never been a better time to invest in a new car.’

Sue Robinson, director of the National Franchised Dealers Association, said the decline ‘reflected a slowdown in consumer spending in May’.

She added: ‘The continued decline in new vehicle sales reflects the current political and economic environment.

‘Consumers will continue delaying decisions on major investments such as new vehicles until we have greater clarity. Pleasingly, despite the decline in new vehicle sales, the used car market continues to perform strongly, demonstrating that the consumer still has options when it comes to purchasing vehicles. Franchised retailers continue to benefit from the growing used vehicle market and the aftersales segment.

‘We will continue to support

franchised retailers through this period of political uncertainty.’

Ian Plummer, below, commercial director at Auto Trader, said: ‘One of the effects of Brexit on the economy has been a hit on the exchange rate.

‘As sterling falls, car brands don’t see the UK as such a profitable, let alone stable, market. As such, the UK is running an ever greater risk of not getting its share of the most desirable cars coming off international production lines – too many of the most sought-after vehicles will be going elsewhere in Europe. That situation could last as long as demand holds firm in the other key European markets, and today they’re generally looking positive. In the current uncertain climate and with contracting margins, retailers and brands are struggling to hold prices and to incentivise sales. They simply don’t have enough money to encourage consumers who already aren’t confident, leaving the industry in limbo. We need to take away the uncertainty.’

May’s best sellers, p10

5

Top

Most-improved manufacturers in May

Chevrolet +100% Bentley +80% MG +49% Volvo +26% Lotus +25%

5

Bottom

Worst-performing manufacturers in May

Abarth -70% Infiniti -52% DS -45% SsangYong -43% McLaren -42%

MG celebrates 19th consecutive monthly sales record MG Motor UK is celebrating its 19th consecutive record-breaking month for sales with the confirmation of May’s figures by the SMMT. With sales reaching 1,212 cars in May alone, MG has seen its second-largest month ever, increasing its volume by almost 50 per cent compared with the same month in 2018. Year-to-date sales 58 | CarDealerMag.co.uk

volume is up by almost 53 per cent, meaning that MG retains its crown as the fastest-growing car manufacturer in the UK. Daniel Gregorious, head of sales and marketing at MG Motor UK, said: ‘It’s fantastic to see MG growing so positively yet again in May, as more and more new customers see the great value for money offered by our cars.

‘Our dealerships continue to be really busy, and the MG teams across the country have worked tremendously hard to deliver yet another sales record.

‘From a strategic perspective, our mid-term plan to drive volume growth through new model launches and network development is really paying off.’

Jeep

Mini

+13% May 2019 Marque

2019

-22%

May 2018

% market share

2018

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change

Abarth

185

0.10

612

0.32

-69.77

1,629

0.16

2,497

0.23

-34.76

Alfa Romeo

270

0.15

355

0.18

-23.94

1,533

0.15

2,117

0.20

-27.59

Alpine Audi

14

0.01

0

0.00

0.00

65

0.01

0

0.00

0.00

12,591

6.85

13,687

7.10

-8.01

66,921

6.40

74,737

6.93

-10.46 18.87

157

0.09

87

0.05

80.46

718

0.07

604

0.06

12,415

6.76

12,940

6.72

-4.06

70,036

6.70

69,411

6.43

0.90

12

0.01

6

0.00

100.00

16

0.00

26

0.00

-38.46

Citroen

4,643

2.53

4,408

2.29

5.33

25,407

2.43

23,103

2.14

9.97

Dacia

2,647

1.44

2,516

1.31

5.21

15,633

1.49

11,617

1.08

34.57 -53.52

Bentley BMW Chevrolet

299

0.16

547

0.28

-45.34

1,480

0.14

3,184

0.30

Fiat

2,497

1.36

2,623

1.36

-4.80

15,345

1.47

16,333

1.51

-6.05

Ford

19,892

10.83

21,136

10.97

-5.89

105,740

10.11

123,207

11.42

-14.18

DS

Honda

2,828

1.54

3,825

1.99

-26.07

21,225

2.03

25,051

2.32

-15.27

Hyundai

6,868

3.74

7,387

3.83

-7.03

38,113

3.64

42,378

3.93

-10.06

Infiniti

33

0.02

69

0.04

-52.17

163

0.02

454

0.04

-64.10

Jaguar

2,909

1.58

3,069

1.59

-5.21

16,810

1.61

15,192

1.41

10.65

737

0.40

652

0.34

13.04

2,655

0.25

2,857

0.26

-7.07

Jeep Kia

7,279

3.96

6,721

3.49

8.30

44,705

4.27

42,344

3.92

5.58

Land Rover

6,069

3.30

6,566

3.41

-7.57

35,597

3.40

35,408

3.28

0.53

Lexus

943

0.51

851

0.44

10.81

6,233

0.60

5,602

0.52

11.26

Lotus

25

0.01

20

0.01

25.00

79

0.01

112

0.01

-29.46

Maserati

80

0.04

83

0.04

-3.61

450

0.04

622

0.06

-27.65

2,621

1.43

2,408

1.25

8.85

17,712

1.69

18,253

1.69

-2.96

49

0.03

85

0.04

-42.35

253

0.02

353

0.03

-28.33

Mazda McLaren

14,431

7.85

13,387

6.95

7.80

78,043

7.46

76,414

7.08

2.13

MG

1,212

0.66

811

0.42

49.45

5,208

0.50

3,415

0.32

52.50

Mini

3,952

2.15

5,094

2.64

-22.42

24,588

2.35

25,949

2.40

-5.24

Mitsubishi

1,722

0.94

1,400

0.73

23.00

8,301

0.79

8,586

0.80

-3.32

Nissan

7,754

4.22

8,699

4.52

-10.86

43,496

4.16

50,941

4.72

-14.61

Mercedes-Benz

Peugeot

6,115

3.33

6,335

3.29

-3.47

37,031

3.54

37,203

3.45

-0.46

Porsche

1,599

0.87

1,991

1.03

-19.69

5,731

0.55

7,711

0.71

-25.68

Renault

3,728

2.03

4,964

2.58

-24.90

26,019

2.49

29,030

2.69

-10.37

Seat

5,471

2.98

5,674

2.95

-3.58

30,988

2.96

29,379

2.72

5.48

Skoda

6,231

3.39

6,337

3.29

-1.67

33,903

3.24

34,164

3.17

-0.76

Smart

504

0.27

636

0.33

-20.75

2,620

0.25

3,198

0.30

-18.07

142

0.08

250

0.13

-43.20

967

0.09

1,266

0.12

-23.62

Subaru

138

0.08

231

0.12

-40.26

1,119

0.11

1,362

0.13

-17.84

Suzuki

3,171

1.73

3,117

1.62

1.73

17,178

1.64

16,561

1.53

3.73

Toyota

7,238

3.94

6,774

3.52

6.85

45,286

4.33

46,702

4.33

-3.03

SsangYong

Vauxhall

13,461

7.33

13,983

7.26

-3.73

79,024

7.56

79,732

7.39

-0.89

Volkswagen

15,737

8.57

18,097

9.39

-13.04

90,417

8.65

90,162

8.36

0.28

Volvo

29.74

4,554

2.48

3,621

1.88

25.77

24,729

2.36

19,060

1.77

Other British

181

0.10

223

0.12

-18.83

1,005

0.10

901

0.08

11.54

Other imports

320

0.17

372

0.19

-13.98

1,653

0.16

1,851

0.17

-10.70

183,724

100

192,649

100

-4.63

1,045,824

100

1,079,049

100

-3.08

Total

Figures supplied by SMMT

CarDealerMag.co.uk | 59

LCV news.

Fullyloaded

| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |

MERCEDES-BENZ

PEUGEOT

Technological experiences tell brand story

On a mission to end reversing accidents

by DAVE BROWN dave@blackballmedia.co.uk

MERCEDES-BENZ Vans has created a Keeping Businesses Moving immersive experience, which will bring to life the adVANce strategy that, says the brand, turns it from simply being a vehicle manufacturer into a ‘holistic provider of mobility and transportation solutions’.

Inside the 16m, custom-built, double-expanding articulated trailer are three different multisensory technology experiences that tell the story of what Mercedes-Benz Vans does today, what’s coming tomorrow and what the future looks like.

Each has been created exclusively for use within the UK and presents a variety of new and innovative technology styles.

The story of today is played out in a full 360° virtual reality experience, where visitors take a seat in the hydraulically powered cab of a Sprinter van and join a number of customers as Mercedes-Benz Vans keeps them moving, in the same way they keep their customers moving every day.

An augmented reality wall helps brings to life the immediate future for Mercedes-Benz Vans.

Meanwhile, a future cityscape scenario using Magic Leap mixed-reality technology gives visitors the opportunity to move around a futuristic city area featuring robots, drones and autonomous vehicles in Mercedes-Benz Vans’ vision for the future of mobility.

60 | CarDealerMag.co.uk

A

group of tradesmen went head to head in a challenge to test new safety-boosting technology on Peugeot’s Partner van.

Nearly one in 10 van accidents occur when reversing or parking, so plumbers, electricians and carpenters used the all-new Peugeot Partner van’s surround rear vision to navigate in reverse a specially designed obstacle course of building-site materials.

Although the drivers were timed, the emphasis was on precision, not speed, as every mistake cost them a 20-second penalty.

After dodging bricks, pallets and woodpiles, and executing difficult parking manoeuvres, the electricians came out on top, after safely navigating the course in the quickest time of 4m 49s after penalty deductions.

Peugeot’s surround rear vision technology increases all-round visibility to reduce parking and reversing accidents. It features a camera at the base of the passenger door mirror and another at the top of the rear panel doors. Footage is relayed to a digital screen that

Peugeot’s surround rear vision screen in action replaces the conventional rear-view mirror, giving drivers the best possible exterior visibility, says Peugeot.

Research from the Department for Transport shows reversing and parking remains an on-going issue, with 1,152 parking and reversing accidents reported in 2017, accounting for nearly 10 per cent of all LCV accidents for the year.

The time spent away from work is compounded by costly repairs.

The Association of British Insurers previously estimated average vehicle repair costs in the UK have risen

by more than a third since 2013, with the average bill following an accident being £2,137.

David Peel, managing director of Peugeot UK, said: ‘Today was about having a little fun with our all-new Partner van and its technology, but also highlighting a crucial safety innovation. More than three vans a day are involved in a parking or reversing accident, costing businesses time and money.

‘Our surround rear vision technology will undoubtedly reduce that figure as drivers have a far better view of their surroundings.’

Top-selling LCVs in May Ford Transit Custom 3,770 Ford Transit 2,626 Mercedes-Benz Sprinter 2,138 Peugeot Partner 1,758 VW Transporter 1,629

Source: SMMT

Vauxhall Vivaro Citroen Berlingo Ford Ranger Ford Transit Connect Vauxhall Combo

1,189 1,143 1,057 1,005 913

LCV registrations, p62

‘If the name is anything to go by, this should be the sharpest version yet.’

We test the Isuzu D-Max in Blade trim, p79

Sliding doors WITH CRAIG CHEETHAM

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

Luton is thrown another lifeline as all-new Vivaro enters production

T

here’s a lot of doom and gloom floating around the UK automotive industry – a large amount of it as a result of media commentators seeing more value in talking the country into another recession than reporting the facts.

The latest in a line of bad news is the imminent closure of Ford’s engine plant at Bridgend, something of a hammer blow in the wake of Honda’s announcement that Swindon’s car manufacturing plant will close when the current-generation Civic goes out of production.

But when there’s good news, it goes largely unreported. At the start of June, a new vehicle went into production at one of the country’s longest established, most efficient and most versatile vehicle factories – the Vauxhall facility in Luton, which has been making commercial vehicles for more than 30 years. Originally IBC – or Isuzu-Bedford Commercials – it occupies a part of the old Vauxhall car plant modified in the 1980s to be able to include highroofed vehicles. It was, for a while, home to a range of light vans.

In the late Nineties, the plant was earmarked for closure, but instead received huge investment following a tie-up between Vauxhall’s then parent company, General Motors, and the RenaultNissan Alliance. Between them, the two companies wanted to develop a new medium van, and the Luton factory was one of only a handful in their combined portfolios that was big enough to accommodate a van production line.

In 2001, the new Vivaro was launched. It was the best-ever Vauxhall van and also saw life as an Opel, as well as the Renault Trafic and Nissan Primastar. By 2005, half a million of the vans had rolled off the line and it was established as one of the most efficient and productive van plants in Europe.

It remained that way until 2017, when question marks over its future reappeared, thanks to the takeover of Vauxhall by PSA Group.

This would spell the end of the Vivaro/Trafic/Primastar and, by this point, Fiat Talento production in the factory, as PSA wanted to extract itself from GM and Renault-Nissan’s strategic alliance.

PSA had its own van ranges for the Peugeot and Citroen brands, which were very easy to rebrand as Vauxhalls and Opels, and were already in production in factories elsewhere in Europe. To bring production for a new van into the Kimpton Road factory would require a multi-million-pound investment in order to bring in the tooling and adapt the line to make an entirely new vehicle.

Luton’s future once again hung in the balance, and it came as a huge surprise to some industry and business commentators when PSA announced it was to invest several million pounds in the plant’s future and produce its next-generation van there until at least 2024.

So much of a shock, in fact, that many of the big newspapers forgot to report it. After all, who wants to read good news?

That van went into production a few short weeks ago and is the all-new Vivaro – a van available as both a cargo carrier and a passenger vehicle, and shares much of its architecture with the Peugeot Expert and Citroen Despatch.

As well as being one of the safest, most technologically advanced and efficient vans in its sector, the new Vivaro is also soon to be electrified. Whatever critics may say, PSA’s investment has allowed Vauxhall to catch up, and it’s a brand that’s now approaching the CV market with renewed (and justified) vigour.

We’ll be driving the new Vivaro shortly, so look out for a road test in Car Dealer. We’re expecting it to be good – not just as a product but also for Britain and for UK manufacturing. Indeed, unlike some areas of the media, we wish Vauxhall, PSA and the new van every success. It’s something that the British automotive industry needs – now more than ever.

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

Turn over the page for the latest LCV registrations CarDealerMag.co.uk | 61

LCV news.

MAY REGISTRATIONS

Another month of growth is welcome news, says SMMT THE UK’s new LCV market rose by 5.4 per cent in May as 29,142 new vans were registered, according to the latest figures from the SMMT. It marked the fifth consecutive month of growth for the sector, with buyers responding to new models and competitive offers.

Wider trends seen throughout 2019 continued, with demand for smaller vans weighing less

than two tonnes rising most in the month, up 14 per cent. Registrations of mid-sized and larger vans also rose, up 10.2 per cent and 5.3 per cent respectively. Elsewhere, pick-ups and 4x4s stalled, down 1.8 per cent and 26.3 per cent respectively.

Year-to-date, however, the UK’s LCV market remains robust, up 7.5 per cent with 156,489 new units sold and all segments posting rises.

Mike Hawes, SMMT chief executive, said: ‘Another month of growth for the UK’s van market is welcome news. Vans today are more high-tech than ever, with impressive fuel economy, safety features and performance.

‘However, business purchasing is cyclical in nature, and for the market to stay strong we need the right economic and political conditions.’

Registrations of new commercial vehicles less than 3.5 tonnes May 2019 Marque

2019

May 2018

% market share

2018

Figures supplied by SMMT

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change

Ford

8,883

30.48

9,784

35.40

-9.21

51,595

32.97

51,205

35.19

0.76

Volkswagen

3,691

12.67

3,481

12.59

6.03

18,215

11.64

18,215

12.52

0.00

Peugeot

2,931

10.06

3,158

11.43

-7.19

14,873

9.50

14,715

10.11

1.07

Mercedes

2,988

10.25

2,124

7.68

40.68

14,129

9.03

10,144

6.97

39.28

Vauxhall

2,422

8.31

1,846

6.68

31.20

13,020

8.32

9,698

6.66

34.25

Citroen

2,410

8.27

2,053

7.43

17.39

12,037

7.69

11,583

7.96

3.92

Renault

1,352

4.64

987

3.57

36.98

8,065

5.15

6,601

4.54

22.18

Nissan

1,075

3.69

703

2.54

52.92

5,510

3.52

5,556

3.82

-0.83

Mitsubishi

663

2.28

742

2.68

-10.65

5,253

3.36

4,598

3.16

14.25

Fiat

893

3.06

891

3.22

0.22

4,217

2.69

3,862

2.65

9.19

Toyota

615

2.11

820

2.97

-25.00

3,755

2.40

3,894

2.68

-3.57

Isuzu

313

1.07

350

1.27

-10.57

1,848

1.18

2,022

1.39

-8.61

Iveco

208

0.71

230

0.83

-9.57

1,241

0.79

1,440

0.99

-13.82

Land Rover

145

0.50

181

0.65

-19.89

599

0.38

444

0.31

34.91

Renault Trucks

128

0.44

126

0.46

1.59

592

0.38

706

0.49

-16.15

MAN

216

0.74

22

0.08

881.82

565

0.36

147

0.10

284.35

Isuzu Trucks

61

0.21

73

0.26

-16.44

337

0.22

276

0.19

22.10

SsangYong

60

0.21

15

0.05

300.00

298

0.19

118

0.08

152.54

LDV

66

0.23

31

0.11

112.90

203

0.13

152

0.10

33.55

Fuso

13

0.04

17

0.06

-23.53

82

0.05

70

0.05

17.14

Hyundai

9

0.03

2

0.01

350.00

55

0.04

25

0.02

120.00

Dacia

0

0.00

2

0.01

0.00

0

0.00

39

0.03

0.00

Great Wall

0

0.00

1

0.00

0.00

0

0.00

4

0.00

0.00

29,142

100.00

27,639

100.00

5.44

156,489

100.00

145,514

100.00

7.54

Total

Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes May 2019 Marque

2019

May 2018

% market share

2018

Figures supplied by SMMT

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change -19.05

Peugeot

216

35.06

321

34.78

-32.71

922

30.38

1,139

29.01

Fiat

169

27.44

219

23.73

-22.83

850

28.01

845

21.52

0.59

Mercedes

143

23.21

174

18.85

-17.82

695

22.90

773

19.69

-10.09

Iveco

32

5.19

23

2.49

39.13

244

8.04

140

3.57

74.29

Ford

3

0.49

155

16.79

-98.06

84

2.77

858

21.85

-90.21

Vauxhall

11

1.79

8

0.87

37.50

82

2.70

48

1.22

70.83

Citroen

27

4.38

7

0.76

285.71

70

2.31

48

1.22

45.83

Renault

7

1.14

5

0.54

40.00

35

1.15

29

0.74

20.69

MAN

5

0.81

3

0.33

66.67

22

0.72

4

0.10

450.00

Volkswagen

2

0.32

5

0.54

-60.00

19

0.63

36

0.92

-47.22

Isuzu Trucks

1

0.16

2

0.22

-50.00

8

0.26

5

0.13

60.00

Renault Trucks

0

0.00

1

0.11

0.00

4

0.13

1

0.03

300.00

616

100.00

923

100.00

-33.26

3,035

100.00

3,926

100.00

-22.69

Total

62 | CarDealerMag.co.uk

CarDealerMag.co.uk | 63

Workshop.

Aftermarket

SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES

MAHLE

A vintage year for firm’s Classic Line

MAHLE’s recently launched Classic Line, featuring its special spare parts segment for vintage and modern classic cars, is experiencing high demand as the classic car market continues to grow.

Launched just over a year ago, the range has grown steadily and now includes engine parts such as cylinder liners, pistons, valves and bearings, as well as starter motors, alternators, thermostats and filter elements, covering more than 1,700 vehicle types.

Each part is backed by almost 100 years of experience, so that Mahle can guarantee the very highest quality.

Jonathan Walker, general manager for the aftermarket in the UK and Ireland, said: ‘For many of our customers, their vintage car isn’t just a passion – it’s an investment.

‘That’s why our Mahle Classic Line is all about quality, staying faithful to the original, and durability.

‘In particularly demanding cases, we also offer the option of single-unit production or small series.’

Mahle has long-standing competence in this area. Original design drawings dating back to the 1940s for many components can still be found in its archives.

Based on these specifications, Mahle Aftermarket is producing such products with the same quality and expertise as for the current original equipment product range.

64 | CarDealerMag.co.uk

INVESTMENT

£2m Fylde Coast ARC opens to the public

by JOHN BOWMAN john@blackballmedia.co.uk

B

lackpool Enterprise Zone has welcomed the multi-millionpound investment which has led to Fylde Coast Accident Repair Centre opening at a new site.

Established in 1982, the familyrun business has relocated from premises in Palmer Avenue to a new £2m base at Aviation Point.

The bespoke building features a purpose-built vehicle repair centre that can evolve as technology advances. The unit has three electric vehicle charging points with ample customer parking, a modern office space, reception, boardroom and state-of-the-art workshop.

Founder and managing director David Hyland said: ‘It is a great pleasure to see the new site open to the public following many months of planning and project management. It is contemporary, clean and professional and reflects our intentions for the future.

‘It will allow us to deliver an efficient service, continue to build on our high-quality reputation and further develop the excellent customer service that we offer to our clients.

‘I speak on behalf of all the team when I say that we are very excited

Bodyshop manager Dane Hyland, left, HR director Linda Hyland and managing director David Hyland at the repair centre’s new site about the future. The new site has generated a renewed energy in the business, which has really motivated our whole team.’

Supported by Blackpool Unlimited’s G4B growth team, Hyland and his colleagues worked with business adviser Donna Taylor throughout the process.

She said: ‘Supporting Fylde Coast ARC throughout this process has been a pleasure. I am excited to see what is next for them and I wish them all the very best for the future.’

Fylde Coast ARC has reported

rapid growth in recent years, benefiting from ongoing investment in long-term staff training along with cutting-edge technology and equipment, including a computerised management system that will help the business reduce its carbon footprint and control its energy use across the site.

Partnered with some of the biggest names in the motor trade including Sheila’s Wheels and Liverpool Victoria (LV), it recently secured a contract with DirectLine.

AutoRaise praised over apprenticeship standard AUTORAISE has won top praise for getting a vehicle damage assessor apprenticeship standard approved.

The standard was developed by a group of employers, including the charitable organisation, and signed off by the Institute for Apprenticeships and Technical Education, which is sponsored by the Department for Education. Institute chief executive Sir Gerry Berragan

subsequently wrote to AutoRaise, congratulating it and the others for their work on the standard and saying: ‘I recognise the significant commitment and expertise required to develop an apprenticeship standard that meets the needs of employers, provides meaningful training and careers for apprentices, and satisfies the apprenticeship requirements.’

LODGE INITIATIVES

Parts company is welcomed to IAAF

LODGE Parts (Lodge Initiatives Ltd) is the latest supplier to join the Independent Automotive Aftermarket Federation.

The federation’s newest member, which is a specialist wholesaler of original equipment automotive parts in the UK and Europe, offers a wide range of OE and aftermarket parts for passenger car and commercial vehicle applications, and has enjoyed significant growth in its export business over the past 30 years.

Through its extensive, multibrand offering, the business is also the UK distributor for premium aftermarket brake disc brand Rotinger – a key part of Lodge’s Fast Road range of performance parts for vehicle enthusiasts. It includes the performance parts retail website Ambush.parts in that same offering as well.

Based in Chester, Lodge employs 20 people and its warehouse stocks a large range of parts backed by a multi-lingual team to support its export status and European business activity.

Wendy Williamson, IAAF chief executive, said: ‘We’re thrilled to welcome Lodge Initiatives, and look forward to them leveraging their experience to help us further augment our objective, which is to promote and secure the future of the independent automotive aftermarket to the benefit of our members and the sector.’

From left, Mark Godson, PSA Group Performance Academy aftersales learning and development manager, Kris Collinson and Simon Bailes Peugeot service manager Paul Wiffen

ACHIEVEMENT

Kris celebrates master technician status at 24 A

talented motor vehicle technician is celebrating after receiving a significant accolade from Peugeot UK. Kris Collinson has achieved master technician status with the manufacturer, making him one of the youngest people in the UK to receive the accreditation.

The 24-year-old started out as an apprentice with the company in 2012 and is currently based at the Northallerton dealership.

After finishing his threeyear apprenticeship at Simon Bailes’ Guisborough dealership, he completed his service and maintenance training in 2017, becoming a technician, and

by DAVE BROWN @CarDealerDave qualified as a diagnostic technician in 2018. He followed these successes up with this latest qualification at the end of January this year.

Collinson said: ‘I am delighted to have achieved master technician status with Peugeot UK, which is a massive honour for me.

‘I am now looking to continue my progression within the company and build on this career milestone.’

Simon Foster, PSA Group apprentice programme assistant manager, said: ‘Kris always stood out from the group with his attitude towards his own personal

development, never cut any corners, and always produced work of the highest standard.

‘I am not surprised to see him achieve master technician status in such a short time frame. He is definitely a shining example of what can be achieved when applying an excellent attitude.’

Simon Bailes, chief executive of Simon Bailes Peugeot, said: ‘Kris is a talented colleague and technician who is very deserving of this significant Peugeot UK accreditation.

‘I’d like to congratulate him on this latest success, which is a fantastic achievement, especially as he is one of the youngest people in the UK to receive this qualification.’

Huge increase in insurance offences, finds Kwik Fit NEW analysis of government figures by Kwik Fit has revealed that last year more than 73,500 drivers in England and Wales were taken to court for keeping a vehicle that does not meet insurance requirements.

This is a 78 per cent increase on five years ago and works out at over eight drivers every hour of the year.

While drivers committing this offence will first receive a fixed-penalty notice of £100, the average fine for drivers going to court over the past year was £205,

meaning fines totalled millions of pounds, said the automotive servicing and repair company.

One of the main reasons why drivers are penalised is because they keep a car off road but don’t register it as such. A vehicle must either be insured or registered with a SORN (Statutory Off Road Notification). If the DVLA doesn’t have a SORN for a vehicle then it must be insured, even if it is only used on private land, parked in a garage or undergoing long-term repairs or restoration.

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

Employee has been ill – for five months Q

I am having problems with one of my employees who has been off sick for approximately five months with a bad back. I keep receiving the fit notes from the GP but I am not entirely sure how long this situation will go on for. How can I manage this? It is causing problems for me with workforce planning.

Firstly, you will need to get some further information about the nature of your employee’s illness/injury and how long it is expected to last.

You could arrange a meeting with the employee to try to gather as much information as possible in the first instance.

This could be done over the telephone if they have difficulty getting on site.

Try to establish exactly what the diagnosis is, what treatment they are having and whether they are taking any medication.

Also ask if they have been given any indication of how long their recovery time will be.

It may be that the information the employee

A

has provided you with is not enough and you will need to seek medical advice.

This can be done by way of a medical report obtained from the GP or perhaps from a consultant at a hospital if they are receiving specialist treatment. You should ask the employee to sign to say they agree for their medical information to be shared with you.

You should also draft a series of questions that you would like the medical professional to consider.

It is important to try to establish whether the illness/injury amounts to a disability in the opinion of the doctor.

This is very important, because it will help decide if reasonable adjustments need to be made. If a medical report is not appropriate or you need further guidance, then occupational health could be instructed to do a review.

This gives specialised advice on how long the employee is expected to be off work and whether there is any way they could return to work with

ADVICE

adjustments. Occupational health staff work closely with the employee and the employer to try to make a plan that is agreeable for all parties.

If there is a possibility of getting the employee back to work with some changes for a period of time, that is, of course, an excellent outcome.

If, however, it appears that the employee is simply not capable of returning to their role for the foreseeable future, then employers are not always expected to keep their position open.

If that is the case and you cannot assist the employee at all, then it may be appropriate to begin a capability process. This may eventually lead to the dismissal of the employee. Great care should be taken if this is the way the situation is progressing, and we would advise you to seek specialist advice at this point.

Dismissal of an employee with a medical condition could leave you exposed to a discrimination claim, so it is always worth ensuring you are making the correct decision by taking advice.

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As the digital dealership experts in an industry in which inertia has been a long-standing problem for forward thinking, Click Dealer has continued to innovate to stay ahead of its competitors and provide products and services for used vehicle dealers before

they even know that they want them! n Make 2019 your year by ensuring that your website and digital showroom is the very best that it can be! Click Dealer’s team of in-house experts will look over your website and advise on any recommended changes to improve your visibility online! n At Click Dealer, we ALWAYS put our customers first! That’s why we’d like to offer Car Dealer Club members £100 off their first bill when they take out any of our products or services!

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66 | CarDealerMag.co.uk

A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock, complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. * Subject to vetting

Return or collect?

WHY I LOVE LAWGISTICS

Q

A great safety net – they are marvellous and there are no complaints from me!

I have two customers who wish to return their vehicles – one for a repair and one because they are rejecting it.

Both want me to collect the cars rather than return them to me.

Am I legally obliged to do this?

In the absence of an express agreement, the Consumer Rights Act 2015 implies terms into the sale contract on this issue.

Where a consumer is exercising the right to repair, the trader will be responsible for collecting the vehicle or incurring the cost of having the vehicle recovered.

Where a consumer is seeking to exercise the right to reject, the situation is slightly different. If the vehicle is driveable, you can request that the consumer brings the vehicle back to your premises.

If the vehicle is undriveable and the consumer cannot return the vehicle in person, then the trader may be liable to incur reasonable costs of recovering it.

However, in both situations, if the sales invoice states that it is the consumer’s responsibility to return the vehicle to the trader in the event they seek to exercise the right to repair or reject, this becomes an express term of the agreement.

A

DANNY Clayman of Browns Autos has worked in the motor industry for more than four decades, and has been in partnership with son James at the dealership for upwards of six years.

Between them, they work tirelessly to ensure great service for customers at their site in Portslade, West Sussex. They have used Lawgistics for legal consultation for some time and it’s a service that Clayman values highly.

He said: ‘I’ve been with them now for somewhere around four years, and honestly, I can’t really remember how we found out about them; it might have been through another car dealer. It’s just a nice thing to have in your pocket, that you have legal services in case of anything untoward – fortunately, we’ve not had to properly use them more than twice!’

Clayman spoke of an occasion where dealings with one troublesome customer resulted in a visit to court. He said: ‘A long time ago, we had a chap who bought a car. He owned it for quite a while but drove it like a lunatic and

WANT TO UPGRADE?

damaged the engine. We fixed it for him at no cost, but he continued to drive that way and damaged it again.’

The issue ultimately went to court, where Lawgistics played a key role in making sure the innocent dealership emerged unscathed.

Clayman has dealt with the same member of Lawgistics staff consistently, which he sees as another big benefit of membership.

‘For what we pay them a month, effectively having your own solicitor is wonderful. Having that security behind you is invaluable.

‘And aside from the two cases I’ve mentioned, I’ve rung them on other occasions. Sometimes you have an issue and it’s just like, ‘‘Well, what do I do about that?’’

‘They will always pick up the phone and be really helpful. We just ring them, they tell us where we stand, and we work from there.

‘They have been marvellous. I have no complaints whatsoever when it comes to Lawgistics. If it was out of five I’d give them seven, and it is a great safety net.’

Adam Weller

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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

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Get 10 per cent off App Creatives’ development costs for your exclusive app Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to their requirements by the firm’s experts.

LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation.

There really is a package for everyone with Lawgistics.

To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Fifty per cent off your first video shoot or PR package Video has become a must-have for dealers, with branded, broadcastquality video for corporate messaging and social media outlets now the industry standard.

Automotive PR and video expert OnCue Comms, which works with the likes of Glyn Hopkin, Nissan, Mitsubishi, Skoda and Motors.co.uk, is offering club members 50 per cent off their first video shoot or PR package. For more information, please call 023 9252 2434.

ON CUE .

PR

LISTS

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CarDealerMag.co.uk | 67

Auctions.

Jobs drive launched for Newry site.

Recruitment, p75

Jones

AUCTION STATIONS

Digitally enabled dealers are sourcing vehicles 24/7

I

John Brown, left, with new full-time BCA employee Jay Holding

TEEN SPIRIT

BCA Doncaster expands apprenticeship scheme

B

CA Doncaster has marked the expansion of its apprenticeship scheme with the appointment of 18--year-old Jay Holding to a full-time role as co-ordinator at BCA Fleet Solutions.

Since the start of the year, the company has hired eight apprentices and is recruiting four more.

The Doncaster site, which opened in January, will manage 2,800 used LCVs a year, handling inspection, refurbishment and pre-sale imaging for the MercedesBenz approved used van programme.

The team in Doncaster handles

inspection services, mechanical safetyrelated checks, maintenance and service work. All elements of bodywork repair will be undertaken on site, alongside valeting and imaging.

John Brown, general manager at BCA Doncaster, said: ‘We have a fast-growing team which services one of the biggest brands in the automotive sector. BCA has made a commitment to working with local colleges to increase the number of apprentices we take on and ensure we have a great pipeline of talent.’ BCA now offers apprenticeships for 35 qualifications.

Rare trio of BMWs to go under hammer CLASSIC Car Auctions opens its August sale catalogue with three of Bavaria’s finest and rarest cars go under the hammer.

The Warwickshire Event Centre will again be hosting the sale with 30 to 40 cars already consigned for their Everyman Classic event on on August 3, and 150 expected in total.

A rare 1995 BMW M3 GT Individual, number 40 of 50 made, is coming to auction estimated at £20,000 to £25,000.

The second of the trio of BMWs is the Car dealer new strip ad Revised pocket rocket 2001 Z3 M Coupe, estimated

at £35,000 to £40,000, while the third car is a 1987 BMW 352i Sport E30 M-Tech presented in Lachs Silver and estimated at £22,000 to £26,000.

Gary Dunne, Classic Car Auctions auction manager, said: ‘These are three fantastic cars to kick-start our August sale catalogue. We sold a similar 325i Sport earlier this year for an excellent price and these cars make a great purchase as the M3s become rarer.’

Further sales will be held at the centre 4/4/18 12:01 Page 1 on October 5 and December 7.

Fixed cost buyers premium User friendly website & stock locator. On-line bidding

Professional Vehicle Auctions for Professional Vendors & Buyers

68 | CarDealerMag.co.uk

Dene Jones is chief marketing and data officer at BCA. Visit bca.co.uk or call 0345 600 6644.

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

www.fleetauctiongroup.com

n a market that is seeing margins squeezed for UK dealers and used car operations growing in importance for driving profits, BCA has seen competition increase for quality stock. Buying patterns are shifting towards seven-day research-and-purchase cycles as dealers use advanced online tools to locate and bid on the stock they need to meet consumer demand.

BCA is leading the industry in adapting to changing trends and has implemented a continuous programme of rapid technology roll-out to meet the needs of buyers today and into the future.

The BCA Buyer app has streamlined the buying process to ensure that professional buyers never miss a vehicle from the vast range on offer at BCA. The app supports online and in-auction bidding by tracking multiple vehicles in real time with instant access to catalogue descriptions and BCA Assured reports.

Users can view all the vehicles they want to bid on in one screen and benefit from real-time running orders and notifications when selected vehicles are going on sale.

Recent upgrades have refined the stock search by vehicle type (eg, car, LCV), model group, colour, mileage, CAP Clean price and age. Results can be sorted by factors ranging from sale catalogue to price and the new ‘recently added’ function. BCA has put customers at the heart of the development process of the Buyer app, involving significant and ongoing input from a wide selection of buyers as new iterations are launched.

Efficient stock location is vital for dealers, as is confidence in the catalogue description, valuation and grading. BCA Assured reports, vehicle grades and guide pricing are provided via the BCA Valuation tool, which generates values based on the condition and specification of the vehicle. It is the most accurate automated way to predict the final hammer price on vehicles that are sold through any channel at BCA.

Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading

Call 01530 833535 or go online for account application

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.

Year-on-year values continue to climb despite seasonal impact The incredibly buoyant market that was experienced last year may have created unrealistic expectations, says Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.

T

he headline used car value at BCA increased in May, with the average value of £9,262 just slightly ahead of April’s figure.

The two bank holidays and half-term break created the usual seasonal impact on demand. However, even with these distractions, year-on-year values continued to climb for fleet & lease, dealer part-exchange and nearly-new vehicles.

The market has been moving through some typical pricing realignment during April and May, and while these seasonal adjustments are to be expected, the incredibly buoyant market experienced during 2018 may have created some unrealistic expectations.

We continue to work closely with our

customers to ensure that they are fully appraised of trading conditions, utilising our unique BCA Valuations pricing intelligence to reflect remarketing sale values in real time.

Fleet & lease values averaged £11,370 at BCA in May 2019 – ahead by £407 (3.7 per cent) compared against a year ago.

The retained value against original MRP (manufacturer’s retail price) was down a percentage point at 42.4 per cent when compared with 2018.

Average age at time of sale has risen by one month to 39.9 months, while the average mileage of 39,216 was down slightly compared with a

Average fleet & lease value :

£11,370

year ago. Dealer part-exchange values continued to rise at BCA, with May 2019 showing a £159 increase year-on-year, equivalent to a three per cent uplift and a marginal increase on April’s average value.

The improved quality of product on offer in this sector is helping to keep values firm, with average age and mileage decreasing compared with the same month in 2018.

Demand at BCA for nearlynew vehicles continued into May, with values averaging £21,579 – up by £1,549 (7.6 per cent) compared with a year ago.

Model mix has a significant effect in this low-volume sector, with brand-specific winners and losers.

Average nearlynew values:

£21,579

CarDealerMag.co.uk | 69

Market Insight.

...in association with ASE-global.com

Motorpoint improved its position in May

Healthy figures from UK motor retailers despite general gloom May saw a number of positive results announcements and trading updates, reports Mike Jones.

M

ay saw a number of positive results announcements and trading updates.

In spite of the reductions we have seen in new car volumes, the retailers were ahead of current market expectations and, in most cases, ahead of their prior year results. The share price performance was mixed, with the overall motor retail average up as a result of an improvement in Vertu’s share price.

Share price performance The most notable mover over the month was Vertu, which reversed losses incurred since February. This movement occurred around the positive results for the year, which were announced at the start of May. The remainder of the UK motor retailers showed small movements, with all being in positive territory at the end of May for the current year-to-date with the exception of Lookers.

Among the non-franchised retailer stocks, we saw a continuation of the growth in Auto Trader which is now up more than 30 per cent on the year, and improvement at Motorpoint, reversing the losses of previous months and returning the stock to a gain for the year.

Financial performance As noted above, Vertu received a nice bump to its share price following the announcement of its final results for the year ended February.

Share price movement during May 2019

Share price movement since the start of 2019

Pendragon

-6.1%

1.8%

Vertu

25.7%

15.2%

Lookers

-5.1%

-7.0%

Inchcape

-4.6%

6.3%

Cambria

6.7%

16.5%

Caffyns

3.8%

9.3%

Marshall

0.9%

7.4%

Motorpoint

10.9%

1.1%

BCA

-12.2%

-17.7%

Auto Trader

6.0%

31.8%

The headlines were that the business had outperformed market expectations, which were revised during 2018, with like-for-like revenue growth of 5.1 per cent. This was driven by strong results in aftersales and used vehicle revenue, with new retail volumes suffering, albeit ahead of the market trends.

Cambria announced its interim results for the six months to February, which showed the group performing ahead of the prior year and ahead of market expectations. As a result of this and the March performance, the board expects

performance for the full year to be ahead of market expectations.

Inchcape delivered a trading update for the first four months of its financial year, with revenue growing and trading in line with expectations.

The business reported expected sales weakness in the UK, however profit was deemed to be broadly stable within UK retail with confidence expressed that it will be maintained for the rest of the year.

Lookers provided a trading update at its AGM covering the first quarter of 2019.

The trading performance was positive, with a strong result during March and gains seen across all areas of the business.

Other announcements Pendragon announced the disposal of two of its JLR businesses in the USA, in line with its corporate plan.

A dealership in Mission Viejo, California, is being sold to Lithia Motors, with a dealership in Newport Beach, California, going to US Auto Trust. There was insufficient disclosure provided to determine the goodwill generated on disposal.

Following on from recent changes at Pendragon, Vertu and Marshall, Inchcape is also changing chief financial officer, with Richard Howes stepping down on August 31.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month.

70 | CarDealerMag.co.uk

On Your Side.

...in association with Legalsolutions4u

Structure your business so you work alongside finance firms What happens if a buyer is unhappy with a car they took out a loan for? Legalsolutions4U explains.

A

large majority of dealerships use finance companies or finance brokers on a regular basis when selling a vehicle.

Dealers often have good commercial relationships with the finance houses and this may be tested when a merchantable quality issue arises over the sale of a vehicle.

What must be appreciated is that the finance companies are regulated by the FCA and therefore are bound by strict rules and time limits when dealing with complaints.

A dealer usually has a ‘dealer agreement’ which contains the terms and conditions that exist between the dealer and the finance house and sets out each party’s responsibility.

The vast majority of dealers are always very keen to resolve a dispute with a customer, and it appears to be the usual position that once a vehicle has been sold, regardless of whether it has been sold with the assistance of finance or not, the customer always returns to the supplying dealer in the first instance where an issue arises with a vehicle.

However, if a vehicle has been sold through a finance agreement, what should be happening is that the customer should be contacting the finance house.

The reason for that is that the contract of sale lies between the finance house and the customer, not the dealership.

Therefore any repairs a dealer completes without the finance company’s knowledge may arguably fall outside the statutory requirements

of the Consumer Rights Act 2015 (CRA). If the customer does contact the finance house, then usually the finance house will contact the dealership advising that they must inspect and repair the vehicle, failing which the finance house may threaten to unwind the deal or threaten to cease to deal with the dealership on any future deals.

The correct legal position is that when you sell a vehicle on finance, you actually sell the vehicle to the finance house. This is a business-tobusiness transaction that is governed by the Sale of Goods Act 1979.

The finance house then completes an onward sale of the vehicle to the customer. It is this sale that is governed by the Consumer Rights Act. If the vehicle does develop an issue, then it is down to the finance house to show compliance with the CRA 2015 and for them to inspect and repair the vehicle.

The burden is therefore on the finance house to show compliance with the CRA 2015. If the finance house has not complied with its legal obligations under the CRA 2015, then you may be able to refuse to take the car back if the finance company threatens to unwind the deal.

It is very easy to structure your dealership in order that you work alongside the finance companies and use the finance companies to ensure you actually have more protection.

It may be possible for you to inspect and repair the car on multiple occasions, rather than only being given one opportunity as the finance company often states.

For more information on how to structure your sales procedure when selling cars through finance, please call us. If you have any ongoing complaints, we are happy to take them on now!

No tied contract! Unlimited cases for only £49.99 plus VAT per month.

For more information on how to protect your dealership and increase your profitability, call 0191 481 3992

CarDealerMag.co.uk | 71

Key Notes.

...in association with Traka

Putting artificial intelligence to work to deliver improved sales To reap the benefits, you need to build online engagement with customers old and new, says Paul Smith.

E

veryone is talking about the promise of artificial intelligence (AI) and its subset, machine learning – so much so that business secretary Greg Clark has targeted AI to deliver an additional £232 billion to the UK economy by 2030.

A closer look at the promises offered by AI reveals a plethora of potential benefits.

Expert AI consultants often recommend focusing at the start of any AI project not on the technology you need to store and crunch the relevant business-critical data, but on the specific business problem you are trying to solve.

The retail sector in general has already garnered several major successes from the application of AI. You could argue that Amazon was the first online retailer to fully embrace it highly successfully.

So how do you get started on gathering the data that can deliver the insights, which can be used to help generate more interest in (and ultimately sell) more vehicles?

It’s clear that for AI to work well, you need to be building online engagement with existing and prospective customers. Part of the problem for car dealers is that many of their prospective customers for new cars start their online research journey by going elsewhere – often to their favoured manufacturer brand’s site first.

Once that prospect has a shortlist of likely vehicles, then they may come across to their nearest franchise dealership’s website.

The online customer journey will be different for those in the market for used cars, where they are more likely to trawl online car supermarkets and autotrader.co.uk before venturing to their local dealer sites and forecourts.

Business secretary Greg Clark The varied journeys that customers make before reaching your dealership can make it difficult to build trusting and lasting relationships with your salespeople before the sale itself.

But once they have decided to buy, that is surely the moment to surround them with service, find out more about their buying habits, when they are likely to trade it in and, most importantly, whether they are fully satisfied with the car, as well as any servicing and finance package you’ve sold them. All this data must be captured and opportunities to keep in touch with product and service updates secured. It is this data and communication permissions (for GDPR compliance reasons) that may become the lifeblood of an AI project.

To find out a little more about how to get started on AI projects, you could do a lot worse than find out what’s possible in retail by looking at the work of AI specialist agency Peak.

Regit is an automotive tech firm that provides digital car management services for drivers based on their car’s registration plate. It supplies drivers with reminders such as MOT, tax, insurance and recalls. Regit approached Peak with a problem – it was unable to predict which users were likely

to change car or even know which ones had changed cars until after they’d already switched.

Peak set to work – pulling together Regit’s user data with data from Peak’s website and marketing systems, as well as from the DVLA. It then applied ‘Categorical Machine Learning Models’ to give predictions about the likelihood of users changing car. Acting on these insights resulted in a 27 per cent increase in sales and 35 per cent reduction in operating costs for Regit.

Half the battle for dealerships today is managing customers out of one car into the next, normally linked to the maturity of a PCP. However, many buyers are now aiming to move cars even before their PCP has reached its maturity date. They may even be contemplating changing brands (thereby potentially moving away from your dealership), buying the car at the end of the current PCP or trading down to an approved used vehicle.

What if your dealership could find a way to capture your customers’ switch intentions? Surely that would give you an opportunity to meet their needs before the D-Day moment where they announce that their mind is made up and they are moving their business elsewhere?

So, if the business problem that you want to tackle with AI is improving customer retention, it’s simply about making it easy for customers to provide feedback that can be analysed in an automated fashion to generate ‘highest risk of switching soon’ customer lists which can be apportioned to a specialist customer retention team for further discussion.

Now could not be a better time to develop an AI initiative to get closer to your customers and help them navigate complicated buying decisions.

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 72 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1

15/12/2016 09:56

Sean Speaks.

...in association with Close Brothers Motor Finance

How to protect your business and do right by your customers Compliance is crucial and dealers need to be familiar with the regulatory landscape, says Sean Kemple.

T

he automotive industry is ever evolving.

Customer demand and buying behaviour is changing, technology continues to advance and the economic environment we’re operating in remains uncertain. The regulatory landscape is no different, and oversight and compliance is an area that is gaining more and more attention.

The role of the automotive dealer is expanding.

No longer are dealers solely experts in selling vehicles, they now also need to have a solid understanding of marketing, advertising and, of course, compliance. This article attempts to provide an overview of what you need to know and where to find more detail.

Financial promotions The FCA defines financial promotions as any content which is an ‘invitation or inducement to engage in consumer credit and/or consumer hire activities’. This covers all channels and would include website content, social media posts, adverts, videos and marketing emails.

Your financial promotions content must: • Be clear, fair and not misleading • Be accurate • Be identifiable as a financial promotion • Give a balanced impression of the relevant products • Not disguise or diminish important warnings or statements relating to the product on offer As well as the FCA, there are a number of other regulators you need to be aware of when advertising to your customers, such as the ASA and Trading Standards. More details on how to comply with these regulations can be found on the compliance and regulation support page on our website: closemotorfinance.co.uk/dealer/ resources-and-support Common website mistakes to avoid We have found that common mistakes when displaying consumer finance-related information online tend to occur around: • Using a finance company’s logo without authorisation and/or incorrectly • Not disclosing details of the finance provider or the capacity in which you (as a dealer) are acting • Failing to display a representative APR when it is triggered • Failing to include appropriate finance small print

• Misuse of click-throughs (beyond the industry standard ‘one click-through principle’) • Inaccurate use of images sitting alongside finance offers which have the potential to mislead.

If you only want to include your finance partner’s logo on your website, this is not considered a financial promotion providing you ONLY mention the trading name or logo. You do, however, still need their permission to do so.

Representative APR If you want to display a rate of interest or an amount relating to the cost of credit (ie, a monthly payment amount) on your website you must display this information in a representative example, such as the one here: From

£151.27

of example ‘triggers’ can be found in our ‘Dealer Guide to Financial Promotions Online’ accessed via our website at closemotorfinance.co.uk/ dealer/resources-and-support The necessary small print If you offer finance to your customers, you are authorised by the FCA to act as a credit broker on behalf of your lender. This means you need to display the following on all financial promotions: • Your legal name (as it appears on the Financial Services Register) and not merely a trading name • That you are a credit broker and not a lender (unless you are also a lender, in which case you must confirm in which capacity you are acting) • The extent of your powers and in particular whether you work exclusively with one or more lenders or work independently • Finance terms and conditions relating to the finance product offered

per month

Make/model Audi Q5 S-Line Plus 2.0 TDI Representative example: Product: Hire purchase Cash price £ 9,000.00 Customer deposit £ 2,500.00 Total amount of credit £ 6,500.00 Fixed rate of interest p.a. 6.50% Acceptance fee £ 340.00 Option-to-purchase fee £ 10.00 60 monthly payments of * £ 151.27 Total amount payable (inc deposit) £ 11,576.25 Total charge for credit (inc fees) £ 2,576.25 % APR representative 14.9% * Includes acceptance and option-to-purchase fees (and any interest associated) which are assumed to be spread over the term of the agreement.

All of the information within a representative example should be: • Clear and concise • Titled ‘Representative Example’ • Given equal prominence • No less prominent than any other information relating to the cost of credit or any ‘trigger’ If the APR is 0 per cent, there is no need to display a representative example.

You should not repeat any of this information outside of the table either.

There are a number of ‘triggers’ which will require a representative example, and a full list

We have provided wording examples in our ‘Dealer Guide to Financial Promotions Online’ – please see closemotorfinance.co.uk/dealer/ resources-and-support Our top tips 1. Consider the legal requirements as early as possible 2. Be clear, fair and not misleading at all times 3. Keep financial promotions simple and transparent 4. Give prominence to important information and restrictions 5. Keep small print simple and legible 6. Ensure the technical legal requirements are met 7. Never misinform or mislead a consumer 8. Small print is an opportunity to expand upon an offer, not introduce new or contradictory information 9. Seek independent legal advice if you are unsure 10. Ensure material always gives a balanced view of an offer, product or service At Close Brothers Motor Finance, we pride ourselves on the compliance support we offer our dealer partners.

To find out more, please speak to your account manager, or visit the resources and support page of our website to download a number of practical guides to protect your business and do right by your customers.

Sean Kemple is director of sales at Close Brothers Motor Finance, one of the UK’s leading providers of motor finance. The company works with over 8,000 dealers and provides finance for new and used cars, LCVs, motorcycles, caravans and motorhomes. Go to closemotorfinance.co.uk to find out more.

CarDealerMag.co.uk | 73

WE DEDICATE 93,600 HOURS A YEAR TO AUTOMOTIVE RECRUITMENT SO YOU CAN CONCENTRATE ON WHAT YOU DO BEST. Leave your Recruitment to the Experts

01603 701 077

74 | CarDealerMag.co.uk

Recruitment.

CODEWEAVERS

Key account director will guide dealers’ strategies CODEWEAVERS has appointed a dedicated key account director to work alongside and consult with the UK’s major dealer groups.

Adam Canay, who has 15 years of motor industry experience, has a deep understanding of the motor retail environment, finance and technology.

It is a background that means he can talk to dealers authoritatively, guiding them on strategies to optimise their digital approach to finance.

He said: ‘Challenges and opportunities for motor finance are everywhere right now, and a smart collaborative approach to leverage API technologies can help dealers to move swiftly to ensure they have a smart, compliant edge that works for customers and dealers alike.’

Canay will be helping groups to identify new and creative ways to support vehicle finance online and supporting them in developing their POS, DMS and CRM systems.

SHELBOURNE MOTORS

Sixty more staff needed at £5m Newry facility

S

helbourne Motors has launched a recruitment drive for 60 new members of staff at its £5m multifranchise complex in Newry.

The family-owned vehicle retailer will bid to attract new talent to fill a number of key roles in customer service, sales and technical support at the site that is set to open later this year.

The recruitment drive coincides with the appointment of automotive industry expert and Newry native Michael McCartan, pictured, as general manager of the new facility.

McCartan has gained more than 20 years’ experience in the automotive industry across a variety of sales, leasing and marketing roles for a number

of local franchises. He will be responsible for overseeing all departments across the Newry site and ensuring the delivery of first-class sales and after-care experience to its customers.

Paul Ward, director of Shelbourne Motors, said: ‘This is an exciting period of growth for Shelbourne Motors as we look to

the opening of our state-of-theart complex in Newry.

‘Michael has a wealth of experience and an abundance of energy and enthusiasm. This made him the ideal candidate to spearhead our Newry operation.’

The £5m facility will include new Renault and Kia car showrooms, new car handover bays, a lounge-style waiting area with café and a drive-through service centre with a 28-bay service workshop.

McCartan said he was ‘absolutely delighted’ with his appointment and said he was looking forward to further strengthening Shelbourne Motors’ position as one of Northern Ireland’s largest family-owned vehicle retailers.

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CarDealerMag.co.uk | 75

Data file.

James Litton

TRADER TALES

Ask the right questions to get your customers’ true views

I

have never been very good at customer satisfaction. Well, that isn’t strictly true – I look after my customers, treat them with fairness and respect, and ask for the same in return. What I mean is that my business units have never ridden atop various CSI leagues for any length of time.

I have never been concerned with the vanity of saying I look after a customer more effectively in the context of a set of subjective measurements than someone else.

For a long time, manufacturers have used various methods of reporting customer satisfaction, but there is a sense, given the amount of financial reward attached to these measures, that new qualitative techniques and artificial intelligence technologies would be better employed to reward dealers.

Think about it. If you manipulate customer or employee behaviour to affect the most positive CSI outcome for your business, how will this improve your business or identify areas of concern? Yet this has been common practice for as long as I have been in the industry.

Some manufacturers share this data on their websites, but given the context in which this information is displayed (ie, the manufacturer’s own website), there could be some cynicism.

Potential customers are more likely to use independent review sites to evaluate a purchase decision than a dealer or manufacturer’s site, so what can we do differently?

Firstly, and perhaps most importantly, it would be to review the people that didn’t buy a product or service from you. Manufacturers should be careful about which measurement they use. For example, it is unlikely that a customer who did not buy from you is going to be rapturous with praise – they didn’t buy a car, so something hasn’t gone right. However, using verbatim reports to pick up on key themes or phrases will be valuable to manufacturer and retailer alike.

For those customers who have made a purchase, manufacturers shouldn’t be asking subjective questions such as ‘On a scale of 1-10, how would you rate your experience?’.

Instead, questions should be more specific, such as ‘Were you able to locate a parking space on arrival?’, ‘Was your representative able to answer all the questions you had relating to your inquiry?’ and crucially, ‘If you had to use this dealership again, would you?’. Anything relating to feelings (for example ‘how likely...?’) should be immediately removed.

The most crucial improvement manufacturers could make relating to CSI measures is to remove any financial incentive. In today’s social media world, bad dealers will face the financial music at some point. Finding ways to reward investment in improvement as opposed to penalising poor results is surely best for all.

‘A customer who did not buy from you is unlikely to be rapturous with praise.’

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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My mask was no disguise when I saw a familiar face

W

hether it’s the Spice Girls, BBC Radio 4, Burt Reynolds movies or Hollyoaks, everyone should have a guilty pleasure. Mine is the humble sport – and, yes, it is a sport – of professional wrestling. ‘That’s fake,’ I hear you cry, and you are probably correct. But I’m fairly sure Mission Impossible isn’t a documentary, so why does it matter?

Besides, crashing around in the wrestling ring does cause legitimate pain and injury. I can attest to this because I used to wrestle in my spare time, in addition to my 15-year career in the motor trade.

Over the years, I never told colleagues or most of my friends about this, and I liked it that way. I sustained a few injuries every now and then that I’d have to attribute to something else, but aside from that, all was well.

To ensure that a customer never showed up to the local wrestling show one day and then saw me in the dealership the following morning, I would compete under a mask. My wrestling identity was El Zafira – can you guess which franchise I was working for at the time?

One evening, I was scheduled to work a wrestling show just a few minutes from the dealership. This was ideal, as there would be no mad rush to get to the venue.

I arrived, put on my tights and slipped on my mask.

Just another night in the ring, but I was sure I’d have a fun time playing to the crowd, as usual.

I made my usual entrance to a mariachi band version of Nirvana’s Smells Like Teen Spirit, did a few laps around the ropes to hype up the audience, then jumped into the ring… and there, staring at me from the crowd, was one of the aftersales team members.

It was obvious he recognised me, as he started laughing in disbelief and filming. As the other wrestler made his entrance I was frozen, trying to work out how my colleague had managed to suss that it was me.

Then the penny dropped. I have tattoos on my upper arms, and a couple of months before the bout I’d been in the gym when the same aftersales guy had come over and struck up a conversation.

And just like that, the game was over. The video was on the dealership WhatsApp group within the hour, and El Zafira rode off into the sunset that day.

Will he ever make his grand comeback? No. Well, not within half an hour’s journey of the dealership, anyway.

‘There, staring at me from the crowd, was one of the aftersales team . . .’

Tell us your story

Have you something to confess? Email us on editorial@blackballmedia.co.uk or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 77

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Long-termers.

LATEST FROM THE FLEET...

Isuzu D-Max Blade Pick-up for professionals who like to work in style certainly turned heads at CDX this year.

by JACK EVANS @jackrober

A

nother month and, yes, you guessed it, there’s another variation of the Isuzu D-Max on the Car Dealer Magazine loan fleet. Gone is the Huntsman with its special drawers and cabinets, replaced now by the Blade – and if the name is anything to go by, this should be the sharpest version of the D-Max we’ve had yet.

To quote Isuzu, the Blade is for ‘professionals who like to work in style’.

It means that while the D-Max is fitted with a full range of off-road-ready features that you’d expect from Isuzu, it also receives 18-inch alloy wheels, illuminated alloy door sill covers and even puddle lamps – features you’d think were far more suited to ‘premium cars’.

Our truck is finished in Spinel Red, and as well as LED daytime running lights plus LED rear lights, it gets a full set of spot lamps for extra visibility at night.

We’re working with the same 1.9-litre turbo diesel that features in the rest of the D-Max range, which here sends its power to the wheels through an automatic gearbox.

Acceleration is, again, less than brisk – Isuzu claims that it’ll take the D-Max just under 13 seconds to heave itself from 0-60mph. Fortunately, this is pretty much par for the course in the pickup game, although we wouldn’t complain if Isuzu threw a little more power at the D-Max. Inside, we’ve got the now-familiar cabin layout. The large, central heating and ventilation controller dominates the middle of the interior, sitting just below the main touchscreen system.

As we’ve mentioned before, it’s not the most detailed of systems but it gets the job done.

The phrase ‘it gets the job done’ perfectly suits the D-Max. It may not have the glitz and glamour of other more ‘premium’ pick-ups, but it achieves everything that you could want from a utilitarian truck.

It was one of the metal stars at the show at CDX this year, sitting on the Isuzu stand.

Although the area was jam-packed with things to look at, the D-Max was hard to miss – and we didn’t even have to switch on the spot lamps.

It was a good job the Huntsman was switched out just beforehand. Although its custom drawers

The Blade was hard to miss at Farnborough – even without its spot lamps switched on!

THE KNOWLEDGE Model: Isuzu D-Max 4x4 Double Cab ‘Blade’ Price (as tested): £35,707 Engine: 1.9-litre, turbocharged four-cylinder Power: 163bhp Torque: 360Nm 0-60mph: 12.8 seconds Max speed: 112mph MPG (combined): 42.8 Emissions (CO2): 183g/km Mileage: 2,492 THIS MONTH’S HIGHLIGHT: Using the pick-up to carry all the CDX show guides up to the event venue in Farnborough. are handy for keeping items secure, they do cut down on the truck’s overall load-lugging ability. With boxes of show guides destined for Farnborough International Exhibition &

Conference Centre, we really needed to make the most of the D-Max’s excellent load capacity. The only real issue came with the roller cover that was fitted to ‘our’ truck.

It took us several minutes – and a few YouTube videos – to work out just how to retract it. It requires you to take a strap hooked up the cover, pull it to the side and ‘click’ the lock unlocked.

After several attempts we managed to sort it, but it certainly wasn’t intuitive.

Once we’d got everything secured, however, it lugged everything up to Farnborough without the merest hint of protest. If anything, the added weight over the rear axle helped to improve the ride, as is often the case with pick-up trucks.

We’ve got one more variant of D-Max to switch into – we’ll leave it as a surprise for now – but our time with the Blade has shown that although it has a little extra glamour, it’s no less capable as a reliable workhorse.

CarDealerMag.co.uk | 79

Long-termers.

LATEST FROM THE FLEET...

Ford Focus Vignale Dave puts this poshest of Ford hatchbacks through its paces on a long journey or three...

by DAVE BROWN @CarDealerDave

A

t last – a welcome few days off work.

And a chance to put the latest member of our fleet of long-term loan cars through its paces.

Sure, our luxurious Ford Focus Vignale had proved ideal for the daily commute in its first couple of weeks with us, but for me that’s only a round trip of about 20 miles.

A break in the country with friends beckoned, so to give EF19 YPC a proper workout I volunteered to drive.

When I mentioned to them that we’d be travelling in a Ford Focus, our pals didn’t seem too impressed, but once we’d picked them up and had all their luggage on board they changed their tune, thanks to the levels of luxury and refinement that come with the Vignale moniker.

We had a fair way to go too, but there were no complaints from our rear-seat passengers – in fact, they were very complimentary about the levels of comfort and space back there, not to mention the smooth experience, and my driving skills can’t take the credit!

It’s clear that a lot had been done to refine the ride and handling of the Focus before the latest-generation cars arrived in showrooms.

The steering feels light but never too vague, responsive but not over-eager.

In corners, the car is composed, and it makes light work of the rutted roads we have to put up with in the UK. From my perspective, the trip with our pals couldn’t have gone any better (apart from the time they quibbled about the bill in a restaurant we visited).

I was impressed that we managed levels of fuel economy very close to the quoted 51.4mpg (exactly one mile per gallon less at 50.4 to be precise), and refuelling the car is a breeze.

Ford’s Easy Fuel capless feature means there are no dirty caps to touch, while a unique safeguard element makes it impossible to add the wrong sort of juice to the tank.

That impressive fuel economy is no doubt partly down to the advanced aerodynamic design of the Focus which helps reduce drag and, as well as making the most of every drop of diesel, helps keep CO2 emissions to a minimum as well.

If driving in daylight hours is a pleasure in 80 | CarDealerMag.co.uk

Diesel-powered cars are a world away from where they used to be a few years ago, says Dave

THE KNOWLEDGE Model: Ford Focus Vignale 5-door Price (as tested): £31,900 Engine: 1.5-litre EcoBlue diesel engine,

eight-speed auto Power: 148bhp Torque: 370Nm Max speed: 129mph 0-60mph: 9.1 seconds MPG (combined): 51.4mph Emissions (CO2): 121g/km Mileage: 2,700 THIS MONTH’S HIGHLIGHT: The headlights switching from full beam to dipped as and when appropriate. So handy. this poshest of Ford Focuses, driving at night is possibly even better.

That’s thanks largely to the headlights automatically selecting full beam when appropriate and dipping when oncoming traffic is detected or when you’re getting a bit closer to the vehicle you’re following. The difference that makes to the after-dark driving experience is incredible and of course is appreciated all the more when you might be a bit tired.

What else? Well, all the tech is working perfectly, but one feature gave me a bit of a shock – the pre-collision assist, which warned me of an accident that wasn’t going to happen! Maybe it was feeling a bit under-used.

As well as, er, focusing on the ride and handling, those clever boffins at the Blue Oval have spent a lot of time making the new car more intuitive and easier to use, and one area where this is appreciated is the audio system.

The eight-inch multi-function touchscreen is quite the thing of beauty, emerging as it does elegantly from the fascia. It’s dead easy to operate, with many of the features doubling up

on the steering wheel, and I can’t help but think of the time when I was 17 and had a ghetto blaster on the back seat of my Mini as my in-car entertainment.

Times have certainly changed in the past 40odd years – and it’s worth emphasising the basic fact that diesel-powered cars are a world away from where they used to be just a few years ago in terms of refinement. Would anyone be able to tell if EF19 YPC ran on diesel or unleaded by listening to the engine? I doubt it.

Anyway, break from work sadly over, it’s back to the daily commute for a bit…

OTHER CARS WE’RE DRIVING

Peugeot 3008 Mileage: 10,530 We recently said goodbye to this excellent midsized SUV after several months spent enjoying its excellent levels of comfort, high-quality interior and very refined 1.6-litre diesel unit. Au revoir!

Mazda6 Tourer Ted finds the impressive Mazda6 Tourer to be every bit as luxurious as far more expensive rivals.

by TED WELFORD @TedWelford

W

hen you see the options list for any car, a first thought for most real-world buyers is usually, ‘Do I really need that?’ Is it worth spending £600 on some leather seats, £1,000 on a panoramic roof or £700 on a larger touchscreen?

But it’s a different story when you don’t really have to choose and are just given the keys to a car fitted with all the toys. That’s the fortunate position I’ve been in as I’ve been enjoying our long-term Mazda6 Tourer recently.

The problem is, having been introduced to the luxury of our car in range-topping GT Sport Nav+ trim, models without the features I’d once considered pointless don’t quite cut it any more.

Most of the cars I drive are quite run-of-the-mill models. Anything remotely advanced still feels a bit alien to me.

So you can imagine my delight at jumping into the Mazda and finding niceties such as ventilated (and heated) front seats, a head-up display and an around-view camera. You can’t help but question if it’s all a bit over the top – but you certainly miss it once it’s taken away.

We were graced with a spell of warm weather when I had the 6 Tourer, meaning its stunning nappa leather seats got rather warm. Never mind – they are ventilated, as I have said, and were soon nice and cool again.

There is also the aforementioned head-up

Ted has loved driving this car, loaded with tech and with its stunning Soul Red Crystal paint job display – something I’d always considered to be a bit of a gimmick. ‘It’s hardly arduous to have to glance at the speedo, is it?’ was always my logic.

But with a clever projector that puts all the key information on to the windscreen for you, you realise just how useful it can be.

The one fitted to this Mazda seems particularly valuable, as it not only shows the car’s speed, but the directions from the satellite navigation system, too. Importantly, it also incorporates the many safety aids fitted as standard here.

These include lane-keep assist and blind-spot monitoring – the latter highlighting which side of the car any hazards are and projecting them on to the windscreen.

Not only does it feel like a more modern way of driving, but it also has its safety benefits as your eyes don’t have to stray from the road to look at the speedo or touchscreen.

And I shouldn’t forget the plethora of cameras fitted to VA18 CRZ. A reversing camera is hardly a luxury any more, given that some mid-spec superminis come with them – but it’s the front camera and 360-degree monitor that really highlight just how well equipped this range-topping 6 is.

Some might find it a bit excessive to have a car fitted with so many cameras, but a few days with the Tourer demonstrated how useful they are – this Mazda is quite a chunky beast, after all.

And because I have to parallel-park most days, that front camera is particularly useful – far more so than just sensors on their own. The only gripe is that the pictures shown could be clearer.

Jumping back into my own 2012 Seat Ibiza feels like stepping into a different time period and finds me craving for the Mazda’s brilliant tech.

What about pricing? Well, our 6 costs £32,695 with £1,000 of options – £800 for the magical Soul Red Crystal paintwork (I could do another report just on this colour) and £200 to have the leather in the brand’s Light Stone shade. Both options are must-haves in my book.

Compared with more ‘premium’ rivals from Germany, the Mazda starts to look like impressive value for money. A Mercedes C-Class Estate starts at £33,900, while to get one with the same kit levels of this Mazda would find you looking at a price tag that’s well over £40,000.

A few weeks with the car have left me blown away by its stylish looks, stunning interior and superb levels of equipment.

Back in my own trusty motor, I’m yearning for that ventilated seat button.

First-world problems, eh?

THE KNOWLEDGE

Kia Ceed Sportswagon

Cupra Ateca

Mileage: 9,807

Mileage: 1,310

As a relatively new driver, Car Dealer writer Jack Healy says piloting this Kia has been a great way to transition from his five-speed manual from the mid-2000s into a more modern machine.

First impressions of the first-ever proper Cupra have been good. It’s handsome, practical and gains a surprising amount of attention from passers-by.

Model: Mazda6 Tourer 2.5 GT Sport Nav+ Auto Price (as tested): £32,695 Engine: 2.5-litre four-cylinder petrol Power: 191bhp Torque: 258Nm 0-60mph: 7.9 seconds Max speed: 139mph MPG (combined): 42.2 Emissions (CO2): 153g/km Mileage: 11,650 THIS MONTH’S HIGHLIGHT: Putting the cameras to good use on what is quite a chunky estate.

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

The appalling customer service that meant Vodafone’s number was up

I

imagine that working in the car trade must sometimes feel like the whole world is against you. Moaning customers, problem cars, difficult suppliers – I bet that it can all get a bit too much.

Unfairly, the car industry gets a bad press when it comes to looking after customers, especially when other industries are so, so much worse.

Take this little tale as an example of just how shocking other industries can be – more accurately, the telecommunications world – and take solace in the fact that whatever you’re dealing with, it could be far more painful. A few days ago, the conversation in the office turned to our mobile phone contracts and how expensive they’d become. That surprised me, because I’d signed up to a SIM-only deal for mine at just £25 a month with Vodafone. When my accounts team told me I was paying £63 a month I was confused, so made the mistake of entering the wormhole that is Vodafone’s shocking excuse for customer services.

The first call, to a lady called Geraldine, was cordial enough. She investigated and found I’d been on a ‘special’ rate for a year that had then lapsed and reverted to a ‘standard’ deal that was more than twice the cost of what I thought I’d agreed to.

Now that’s not exactly fair, is it? I had no recollection of signing a contract – something you rarely do when taking out a phone deal – and I don’t remember being read any terms and conditions to that effect.

To make matters worse, I’d been paying this inflated price for 15 months – that’s long enough to have paid for a shiny new Who Are They phone if I’d lost my senses and chosen one of those Chinese spying machines. But that’s not the point. Every year I’ve been with Vodafone I’ve always received a call from my ‘prime contact’ (oh, I do feel special) who would inform me of the latest and greatest deals.

As I usually buy my phones outright after an Apple fanfare, I always go for a SIM-only deal with the most data I can pack in.

It seemed strange that 15 months ago I never got that call. At this point you’re probably wondering how I didn’t notice the jump in cost. Well, that was partly due to the fact I never looked, assuming incorrectly I was still on the same deal as before, and partly because the payments came out of our business account.

Geraldine kindly informed me I’d overpaid by £357 on my line rental. Now, in the car world, dealers have a duty to treat customers fairly. Let’s say you set up a customer on a £99-per-month PCP deal which in the terms and conditions said that after a year, if you hadn’t heard from them, you’d charge them £249 a month instead.

Would that be seen as ‘fair’? Absolutely not. So why, then, can the telecommunications industry get away with it?

I gave up on ‘Geraldine’ at this point, because she was about as useless as sun cream at night, so I got put through to senior manager ‘James’. He was apologetic, looked into it and offered to refund me – here we go, I thought, I’m in – until he said the figure: ‘I can offer you £40.’

I laughed. Asked him to repeat himself. He did and really was offering me £40. I thanked James for his offer, stopped short of telling him to shove it up his arse, and asked him to go back to his banker. Later that evening, I was called back by ‘Marbs’ – a person, not the place – who came in punching. His tone was argumentative and had the customer service skills of a nuclear missile.

He said Vodafone ‘didn’t have to tell me when my deal was up’ and offered to double the previous offer as a full and final settlement. I told him if £80 was all he was offering I’d take the case to Ofcom – and with that, the call ended. While I decided on my next steps I checked my phone an hour later to find it had no reception. A friend called the number and nothing – it had been cut off; disconnected completely! Let’s be clear, I’d never asked for that to happen at any point.

Cue another hour and a half on the phone, this time to Ahmed. He had no record of my number ever existing, my personal details had been changed so I couldn’t get through security and my secret question had been deleted. Turns out ‘Marbs’ was a vindictive Vodafone crony and had deleted me, account and all.

Eventually, I made some progress with Ahmed, who found a record of my call and put in a reconnection request, something that could take up to 48 hours. I was fuming. I decided enough was enough and emailed the chief executive. That triggered a call from the ‘director’s office’ the next day who investigated, blamed the disconnection on a ‘rogue agent’ and offered to refund the money I’d overpaid and a derisory £25 compensation.

Quite why he was shocked when I asked for my PAC at the end of the call to move to another provider is beyond me.

No one would trust a firm after being treated like that. I was off – a long-time customer burnt and a story that I’ll pass on to anyone who listens, starting with you.

So, next time you’re fixing a 10-year-old car for a customer because you don’t want a bad reputation, or have to deal with the 13th phone call from Mr Moaning of Angryville, just remember it could be worse – you could be working in a Vodafone call centre.

‘I had no recollection of signing a contract – something you rarely do when taking out a phone deal.’

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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