Car Dealer Magazine: Issue 160

Issue 160 | July 2021 | CarDealerMag.co.uk | £6

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INVESTIGATION: HOW LONG CAN USED CAR PRICES CONTINUE TO RISE? REVEALED: THE REAL PROFIT DEALERS MAKE ON CAR SALES

FIRST DRIVE

e-Tron S AUDI

PLUS: WE DRIVE THE PEUGEOT 508 SW AND VOLKSWAGEN TIGUAN R

PLUS: BANGERS4BEN RETURNS FOR 2021 WITH BEST OF BRITISH THEME

NEWS

• CARWOW SNAPS UP WIZZLE • CAMBRIA £80M OFFER ACCEPTED • NEW SPORTAGE SUV BOUND FOR EUROPE • £9M FERRARI SITE WORK STARTS • STONEACRE BUYS RMB AUTOMOTIVE

VOTE FOR THE BEST OF THE BEST MAKE YOUR VOICE HEARD IN OUR ANNUAL SURVEY OF MANUFACTURERS AND SUPPLIERS PLUS

WITH EV VOLUMES SET TO TOP QUARTER OF A MILLION, CAN THE INFRASTRUCTURE KEEP UP WITH DEMAND?

DARREN EDWARDS INTERVIEW:

SYTNER CEO TALKS ABOUT FURLOUGH AND CARSHOP – AND SHARES THOUGHTS ON CAZOO AND CINCH

Plus: My issues with agency sales models

BIG MIKE: WATCH OUT! CAT THIEVES ARE ON THE PROWL

The UK’s Best Used Car Warranty

02 | CarDealerMag.co.uk

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THE BOSS FOUNDER James Baggott

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EDITORIAL CHIEF SUB-EDITOR John Bowman

john@blackballmedia.co.uk

HEAD OF CONTENT Jack Evans

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HEAD OF DESIGN Graeme Windell

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CONTRIBUTORS James Batchelor, Darren Cassey, Rebecca Chaplin, Nigel Swan, Ted Welford, Jack Williams

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WELCOME. I

t feels weird to write it, but looking back on months of lockdowns and car showroom closures, the automotive industry can probably count itself as one of the lucky ones. The Covid-19 crisis has caused serious heartache for many dealer bosses, but now three lockdowns in, most dealerships can proudly say they’ve not only weathered the storm but positively danced in the rain.

While the pain was stark at the start of the crisis, the hard work and ingenuity of the car industry has actually seen many dealerships come out of the pandemic better off. Okay, so if it hadn’t been for the furlough scheme and retail rates relief, many would no longer be with us. Those schemes not only threw a lifeline to dealers, but also meant they had the firepower to ride out the biggest financial crisis since the war. Now, as the government delays lifting restrictions completely once again, many industries are facing a bleak summer. The holiday industry is in tatters, and while restaurants, hotels and pubs are operating, they’re not doing so anywhere near the capacity they need to prosper.

Car dealers on the other hand are having different issues. Huge demand for new and used cars is outstripping supply, while the semiconductor shortage is hampering car factories. The latter, first reported at the start of the year, will have far-reaching ramifications. New car buyers are already finding that the models they want are simply not being made. Factories are slowing down and in some cases halting completely, and the pain of this is still really yet to be felt. This all comes at a time when there are more car buyers than ever. People are still not keen on public transport, and road traffic levels have risen to prepandemic levels already. Remember, this is while many people are still working from home, too. Holidaymakers will once again be looking to venture out domestically and many will decide a new car will be needed for their trip.

Those who forgo a holiday are likely to treat themselves to a new vehicle instead.

Those lockdown savings are burning a hole in many people’s pockets, but buyers are finding the cars they want are either rapidly rising in price or simply not available. Dealers are struggling to replenish forecourts with reasonably priced cars as used prices are rising at unprecedented levels on an almost daily basis.

Just this month alone I helped a friend sell his 69-plate Mercedes Marco Polo to the trade. He’d had it a year, driven 6,000 miles and sold it for £5,000 more than he paid retail. Bonkers. While these price rises can’t last forever, Cap HPI reports June is no different to the rises we’ve seen in April and May and no experts can see it slowing any time soon. This weird car market, that’s seemingly been turned on its head with car prices going up that usually go down and buyers chasing dealers rather than the other way round, is just another one of those quirks of Covid.

But think yourself lucky. While it might be a pain getting hold of stock, it could be a lot worse. You could have a fleet of airplanes sitting idle once again facing another summer of furlough and despair.

Talking of summers, after a rather stressful 18 months, I’m taking a break and long-awaited sabbatical. My team enjoy six weeks off on top of their holiday after five years’ service, and after 13 years of running the business I’ve decided it’s time to take mine. I’ll be back in the autumn, but the team will be keeping you updated on our hugely popular website and in this monthly digital magazine. I hope you enjoy the issue... and some sun.

Most dealerships can proudly say they’ve not only weathered the storm but positively danced in the rain.

JAMES BAGGOTT Founder, Car Dealer CarDealerMag.co.uk | 03

04 | CarDealerMag.co.uk

IGNITION. ISSUE 160 | JULY 2021

16 CONTENTS

34 6

12 36

INTERVIEW

‘Return at the moment is really, really strong and the partnerships with our brands are incredible.’

6

‘No matter what people say, buying a car is never really a case of just a few clicks.’

19

6 15 24 26 40 44 46 47 50 52

COMMENT James Baggott Big Mike James Litton

19 21 23

FORECOURT Audi e-tron S Peugeot 508 SW Volkswagen Tiguan R

32 34 36

INVESTIGATIONS EV charging infrastructure 10 Car dealer profit – the truth 12 Used car prices rise 16

40

COMMENT

Interview: Darren Edwards Power Awards 2021 Car news round-up News digest Czinger supercar Feedback Supplier news Cool stuff Car Dealer Live Finance

DATA FILE The Statistics LCV news Suppliers Guide Long-termers

FEATURE

‘The 0-60mph time is said to be less than two seconds, while the sprint to 186mph takes just 13.8 seconds.’

40

54 56 58 59

DATA FILE

‘With a brighter, sunnier economic outlook, May’s registrations are as good as could be reasonably expected.’

54 CarDealerMag.co.uk | 05

INTERVIEW

Sytner boss talks furlough, CarShop growth and his thoughts on Cazoo and Cinch In an exclusive and wide-ranging chat at the company’s flagship Jaguar Land Rover site, chief executive Darren Edwards tells James Baggott how the US-owned dealer group has flourished and could well be on course for a record year.

SYTNER GROUP LIMITED Position: 2019 turnover: 2019 EBITDA: ROS:

2 £5.9bn £152m 1.3%

Click here to see the Car Dealer Top 100 list 06 | CarDealerMag.co.uk

S

ytner boss Darren Edwards has given an exclusive video interview to Car Dealer.

In the Car Dealer Live special, the boss of the second most profitable dealer group in the UK – according to the Car Dealer Top 100 – reveals his secrets to success.

In a wide-ranging interview, recorded at the group’s showcase Jaguar Land Rover site in Sunbury, Edwards gives his thoughts on a variety of topics.

With a portfolio of luxury and premium new car brands, and a high-performing used car supermarket group, it’s little wonder it’s one of the UK’s most profitable groups.

Sytner came second in our Car Dealer Top 100 list of most profitable dealers – in 2019 it made £152m EBITDA profit on turnover of nearly £6bn.

Edwards told Car Dealer he was disappointed with the second-place position and hopes to top our list in the future. But how do they do it?

‘Our strategy has always been to focus on premium brands,’ reveals Edwards.

‘We figure you can get better return on investment, you can attract a higher quality of people for the team and we invest a lot to attract them.

‘We have very low staff attrition levels. Our head of business turnover is less than five per cent, the board is zero turnover and has been for many years, and our managers are about eight per cent.

‘By having these great brands, it gives us the opportunity to make great returns for our shareholders, do a brilliant job for our manufacturers and then you have this circle of investment: Focus on people, focus on customers and delight your manufacturers and shareholders, and keep on doing that all the time.

‘By doing that since 1968 when we first started and really the early 2000s when we started to grow, that’s given us the opportunity to continue to grow as we have.’

Sytner has a chocolate box of brands that most dealers would envy.

In the high-end luxury world, it represents Ferrari, McLaren, Bentley, Bugatti, Aston Martin, Lamborghini, Maserati, Rolls-Royce and Porsche.

Sytner is also Audi’s biggest partner in the UK and represents Jaguar Land Rover, BMW, Mercedes, Seat, Skoda and Volkswagen among others.

‘Return at the moment is really, really strong and the partnerships with our brands are incredible,’ said Edwards.

He says the group learnt a lot during the pandemic and was quick to offer customers the chance to buy cars on its website.

It introduced an online buying function last year, and the combination of sales in store and on its website has helped it continue to record impressive results.

Sales of new cars rose nearly eight per cent in the first quarter of the year, despite showrooms being closed by the third lockdown.

Sytner is owned by American giant Penske Automotive Group, which snapped the dealer off the stock market in 2002.

Sytner’s Guy Salmon Jaguar Land Rover Sunbury dealership

Drive-in service lanes were introduced by Sytner

CarShop Nottingham

Return at the moment is really, really strong and the partnerships with our brands are incredible.

The American ownership has taught Sytner plenty of new tricks, and many of the innovations brought over from the States have been rolled out by other dealers, too.

‘In Q1 we delivered 42,500 cars, new used and fleet – 10 per cent of those were done purely online,’ said Edwards.

‘We’ve enjoyed massive investment since Roger [Penske] bought the business in terms of monetary and intellectual.

‘Things like our drive-through service lanes have been adopted by the rest of the industry now. That was new back in 2000.

‘Little touches like making sure colleague areas are finished to the same standard as customer areas – the sort of things you’d see in a five-star hotel – these are the things that were brought home by Roger.’

Despite the success Sytner has enjoyed during the pandemic, Edwards doesn’t think paying back any government furlough or rates support is necessary.

‘When we think back to that period of time, the industry was worried about paying the bills and whether it would stay liquid,’ he explained.

‘That money was vital to us. It allowed us to keep people employed.

‘Since then, that support was used for a short period of time. The support was significant as we are a large group. We had 9,500 people on furlough for a couple of months. But now we are focused on investment.

‘We’ve opened up five or six large dealerships and we’re still investing millions in premises and training.

‘For us now it is about looking forward rather than thinking about paying back.

‘Ultimately, every large corporation is going to be paying more tax as the government announced.’

In the video interview, Edwards also explains how the CarShop deal came about.

He said Sytner didn’t want to get into volume franchises for new cars and was ‘happy’ with the mix that it had in its portfolio, but was looking at opportunities to grow.

‘The used car business is huge and we wanted a bigger piece of that,’ said Edwards.

‘We looked at different options and CarShop came to our attention. It’s a great business and Jonathan [Dunkley] and the team had done a brilliant job and we were very happy when they agreed for us to acquire them.

‘In a normal year without the pandemic, off the 12 sites we now have, we should do 60,000 units and the EBIT contribution is significant.

‘We’ll be looking to grow that over the next few years and it’ll probably be the biggest area of growth for us.’

CarShop also benefits greatly from the Sytner ownership, receiving around 300-400 cars a week from the wider group.

When it comes to the likes of Cazoo and other online used car dealers, Edwards wishes his rivals well – but is quick to point out his group has more used cars in stock than the big three online sites combined.

Edwards said: ‘I think there is a place for everyone, and as far as I am concerned,

Click here to watch the Darren Edwards interview

CarDealerMag.co.uk | 07

Sytner boss Darren Edwards chats to James Baggott

good luck to them. They think they’ve got a unique model, but I think that’s probably changed over the last year.

‘Our view is that we want to appeal to everyone and not just online customers.

‘From our point of view, we appeal to 100 per cent of customers who are out there, whereas the online guys appeal to a certain part.’

When it comes to growth, Edwards says he thinks Sytner is now at the ‘upper threshold’ of what manufacturers like its dealer partners to have.

He says there is some opportunity to grow with some, but adds Sytner is ‘very picky’ when it comes to taking on more sites.

‘We’ve divested a number of brands and dealerships in the last 10 years or so to end up with what we have today and it’s more about getting the most out of those businesses.’

That said, Sytner will be opening up with Ferrari in Glasgow and has taken on Bugatti in Manchester.

‘When we have got really good opportunities to grow with brands we will, but our main opportunity now is with CarShop – it’s about getting a bigger share of that market with a national footprint,’ added Edwards.

The Sytner boss said he was taken a little by surprise with quite how good business has been since the April 12 reopening, but believes it ‘generated’ some of its ‘own luck’.

‘Overall, it has been strong,’ he said.

‘I hope we’re on course for a record year. Based on current predictions, it’s looking very good. We delivered 16,000 cars in April and were up 45-50 per cent on order take.’

Sytner has big plans to expand its auction platform too. Launched 15 years ago, it sells cars to the trade that the group doesn’t want.

Modelled on eBay, it has 10,000 traders registered on the site and sells around 30,000 cars a year. Sytner matches the number of cars it sells on the site with a donation of the same amount to the charity Ben every year too.

‘It’s been very successful and we’re looking at how we can leverage that even further,’ said Edwards.

‘Very shortly, we’re going to allow other traders to list cars on that site, and that will massively increase the number of cars on there.

‘We’ll manage it and are excited about it. With the world moving towards online auctions we see that as being a potential big platform for us. It’s very profitable for us.’

But what does Edwards think really makes the difference for the group? What makes it one of the most successful?

‘If you look at our leadership, most of these people have all been with the company since they were in sales themselves, they’ve been through the company and now they’re managing the company,’ added Edwards.

‘They understand the culture and can really inject that culture into new people.

Fundamentally, our success is our people.’

Click here to watch the Darren Edwards interview 8 | CarDealerMag.co.uk

Outside the Jaguar Land Rover dealership in Sunbury

£152m Sytner’s EBITDA profit for 2019

I hope we’re on course for a record year. Based on current predictions it’s looking very good.

OPINION

My issues with agency sales models Sytner CEO Darren Edwards

T

he advantages of agency sales have been highlighted in recent weeks by OEMS and some dealer groups. However, there are some unintended consequences that may appear as a result of the switch from franchise holders to agents that I believe should be considered.

Many high-performing investors – let’s call them ‘upper quartile’ dealers – will have issues with agency sales because it removes the advantage they have enjoyed due to their high level of entrepreneurial ability. This advantage has normally been honed over many years of investment in training, process invention and continual improvement in the pursuit of an above-average performance.

The result is a performance in both volume share and margin retention that is significantly greater than the average in the network, and often so far ahead of the next best that other dealers wonder how on earth they manage to achieve this.

By the very definition of upper quartile, this means that this is obviously a minority of dealers, so you could say well that’s a small proportion of the network, so what’s the problem? As long as most dealers (the average) are happy with the performance they will receive under a fixed-price handling fee, based on the average, then that’s okay, isn’t it?

The problem is that these high-performing dealers are, in most cases, the trendsetters and trailblazers of their networks. They continually invest and innovate to extract improved performance and this innovation is picked up by the manufacturers and shared across the network as so-called best practice.

In most cases, the drive to innovate in new car retail sales is there to create increased levels of gross profit per unit (GPPU) as well as volume and market share.

This materialises in forward-thinking marketing approaches, technology solutions, online and in-store customer-centric processes and, of course, incredible retail premises.

My concern is that once the transition to agency sales has occurred, will these investors continue to innovate at previous levels across all these disciplines if they can no longer influence their GPPU or volume?

Without this drive, will the network performance become stuck at an average level?

Or in the worst-case scenario, if these high-performing investors feel that the opportunity is no longer attractive enough for them, do they divest and then the network is much weaker as a result?

Agency sales work for the OEM in a perfect world, but what happens when a manufacturer produces a slow-selling model or there is a downturn? If the skill of the network has been diminished over time due to becoming just another link in the distribution chain, who is going to come up with those great ideas that get shared networkwide? I have heard OEMs say many times, ‘we are manufacturers, not retailers’, meaning that they don’t have all the answers when it comes to getting cars sold and on to driveways.

So before OEMs transition to agency sales I believe that a great deal of consideration should be given to how to keep the best in their networks interested (and invested).

In particular, with the absence of variable margins and (potentially) sales targets, how will high performance be rewarded, because I am struggling to recall a company that has succeeded over the long term with a business populated by averageness.

Agency sales work for the OEM in a perfect world, but what happens when a manufacturer produces a slowselling model or there is a downturn?

CarDealerMag.co.uk | 9

INVESTIGATION

WITH EV VOLUMES SET TO TOP QUARTER OF A MILLION, CAN THE INFRASTRUCTURE KEEP UP WITH DEMAND? There’s no doubt people are keen to go green when it comes to vehicles, it’s just a question of ensuring the power is there for them – and quickly as well.

E

lectric car sales are expected to hit a major milestone this month, when the 250,000th battery-electric vehicle (BEV) hits the road.

That’s an astonishing growth since the early days, when pure electric accounted for only a tiny fraction of sales.

At the end of May 2021, there were an estimated 242,000 BEVs on the UK’s roads, with 54,051 of those registered in 2021 alone, according to SMMT registration data. Together, BEVs and plug-in hybrids now account for 25 per cent more sales overall than diesel, which remains in rapid decline.

The data shows a much greater customer acceptance of BEVs, but the industry is still calling for greater support in terms of investment and infrastructure, which it believes is essential for pure electric to become dominant. At present, BEVs represent 8.4 per cent of UK car sales, and there are thousands of car buyers currently sitting on the electric fence, wondering whether or not to take the plunge.

‘Demand for electrified vehicles is helping encourage people into showrooms, but for these technologies to surpass their fossil-fuelled equivalents, a long-term strategy for market transition and infrastructure investment is required,’ said Mike Hawes, chief executive of the SMMT. Meanwhile, the Office of Gas and Electricity Markets (Ofgem) has agreed to invest £300m into expanding the UK’s electric vehicle charging network, which will fund the installation of 1,800 new charge points across motorway service areas and key trunk roads plus a further 1,750 chargepoints in towns and cities.

It’s a small but essential step, according to industry commentators.

Guy Pigounakis, commercial director for MG Motor UK, which has consistently seen BEV sales account for more than 30 per cent of its volume since the launch of the ZS EV in 2019, said: ‘The better the infrastructure gets, the more we can focus on our mission of EV for everyone. Only Porsche has a higher percentage of EV sales in its model mix.

‘We have already got practical, family-friendly electric cars down to real-world prices that mainstream motorists can afford and we see the 2030 EV switchover as entirely feasible so long as there is a co-ordinated effort,’ he added.

By the end of 2021, the UK will have its first EV ‘superhub’, which will be based in Oxford.

The 25 megawatt site will have 30 super-fast charging points, all at the city’s Redbridge park-and-ride site.

10 | CarDealerMag.co.uk

The better the infrastructure gets, the more we can focus on our mission of EV for everyone.

Guy Pigounakis MG Motor UK commercial director

We are aiming to accelerate the UK’s transition to a clean, electric future.

Tim Rose, Pivot Power programme manager

The EV superhub in Oxford will have 30 charging bays

The superhub is being developed by Pivot Power, which aims to open more of the super-fast charging stations across the UK following the Oxford pilot.

Tim Rose, the superhub’s programme manager, said: ‘We are aiming to accelerate the UK’s transition to a clean, electric future.

‘The smart power network we are installing in Oxford will deliver flexible, reliable power at scale to fast-track EV adoption.

‘As part of EDF Renewables UK, our aim is to replicate this model throughout the UK, supporting greater renewable generation and delivering power where and when it is needed to enable mass-scale, rapid electric vehicle charging.’

A similar facility exists in Braintree, where Gridserve recently opened the UK’s first electric forecourt. The site not only offers 37 charge points, including six Tesla superchargers, but it also features a supermarket, coffee shop, newsagents and post office, as well as a gym whose exercise bikes feed power back into the grid.

The electric forecourt opened in December 2020 and provides a snapshot of what the service station of the future could look like.

Toddington Harper, the company’s CEO, said: ‘By building an entirely new ecosystem, Gridserve is trying to make everything about using an EV much better than a petrol or diesel car. We all know that the cars themselves are amazing, but the charging infrastructure still isn’t great. If you are a Tesla driver, then you’re much better off than everyone else, but the other EVs on the road today do not have the same network.

‘A combination of solutions is provided to enable the same level of service to everyone.

We don’t want any limitations, including range and charging anxiety. We want to get rid of this “anxiety” label that puts people off getting an EV in the first place.’

Gridserve is trying to make everything about using an EV much better than a petrol or diesel car.

Toddington Harper Gridserve CEO

CarDealerMag.co.uk | 11

INVESTIGATION

REVEALED: THE REAL PROFIT DEALERS MAKE ON CAR SALES A Car Dealer and What Car? survey shows a huge disparity between how much buyers think dealers make and the reality. James Baggott reports.

T

he majority of car buyers in a survey said they thought dealers made between 10 and 20 per cent profit on every new car they sell.

In an exclusive poll for Car Dealer, What Car? found that 28.2 per cent of 5,000 car buyers who were quizzed reckoned dealers made 10-20 per cent on every new car – the highest proportion of respondents among the percentage profit ranges.

When it came to used cars, again most of the buyers in the survey thought dealers made 10-20 per cent profit, but this time 35.8 per cent were in agreement. Some 5.8 per cent of buyers quizzed thought car dealers made more than 50 per cent profit on new cars.

When it came to who car buyers thought made the most cash out of selling a new car, 56.7 per cent said they thought it was the manufacturer, with 43.3 per cent thinking it was the dealer.

Jim Holder, editorial director for What Car?, said: ‘While everyone knows car dealerships are there to make money, the public’s perception of how easy it is for them to rack up profits provides a fascinating insight into the challenges during a negotiation.

‘While I’m sure it’s possible, the suggestion from the significant proportion of respondents that dealers and car makers make more than 20 per cent margin on every new or used car deal is surely fanciful.

‘But there’s no question that the belief the dealer is racking up big earnings would compel buyers to haggle harder.’

When it came to new cars, 30.8 per cent of respondents believed that car dealers made more than 20 per cent profit.

Shockingly, 2.6 per cent even thought car dealers made more than 75 per cent profit on every new car they sell.

At the other end of the scale, 15.2 per cent thought dealers made five per cent or less.

Holder added: ‘In recent years we’ve seen car factories close and low-margin cars being axed from vehicle line-ups because of a lack of profitability, highlighting the reality of some of the wafer-thin margins that they operate to.

‘But at the same time we’ve witnessed massive investment – some of it forced by manufacturers on to retailers – into modern, often swanky “gin palace” dealerships and corporate identities, all of which I suspect is giving this impression that selling cars is a route to printing money.

‘To me, this data highlights the fine line that needs to be tackled by dealers and OEMs – it is not hard to understand why a customer’s expectations may be out of kilter if they 12 | CarDealerMag.co.uk

Many people think dealers make large sums because the showrooms are that nice and expensive, they must be making that much.

Industry analyst Mike Jones

What percentage of a used car sale is retailer profit?

40%

There’s no question that the belief the dealer is racking up big earnings would compel buyers to haggle harder.

Jim Holder, editorial director of What Car?

35%

35.8%

30% 25% 23.3%

20%

20.3%

15% 10% 8.5%

5%

7.6%

2.4%

2.1%

30-50

50-75

57+

0% 0-5 Source: What Car?

5-10

10-20

20-30 Percentage

What percentage of a new car sale is retailer profit?

40% 35% 30% 25%

25.8%

20% 15% 10%

28.2% 18%

15.2%

5%

7%

3.2%

2.6%

30-50

50-75

57+

0% 0-5 Source: What Car?

are walking into a premises that gives the impression that profit margins on these high-ticket goods are sky-high.

‘The suggestion from these figures must be that some dealers now lack an authenticity, customers having concluded that they are paying a high price in order to sustain a profit-rich industry.’

When it comes to used cars, 8.5 per cent of respondents thought dealers made less than five per cent profit, while 2.1 per cent thought dealers made more than 75 per cent a car.

The reality

5-10

10-20

20-30 Percentage

What percentage is car maker profit on a new car?

40% 35% 30% 25% 23.8%

20%

26.1% 18.8%

15% 10%

11.9%

The reality is car dealers make an average of around seven per cent 5% on new cars.

0% Dealer group bosses we spoke to said gross profit on new cars 0-5 5-10 ranged between five and seven per cent.

Source: What Car? The used car market is a lot stronger, with profit margins for dealers around 12 to 15 per cent.

David Kendrick, partner at accountancy firm UHY Hacker Young, said the figures dealers quoted to Car Dealer were accurate.

‘There is a huge misconception as to how much retailers make on vehicle sales.

‘We take on a large number of graduates every year and one of our questions is how much the average dealer makes on a £15k vehicle.

‘Answers range from £10k down to those who understand it may be minimal to a loss.

‘The issue is that there is such a huge range and misunderstanding. The substantial multi-million-pound dealerships certainly don’t help that perception. I am not sure how this will ever change.’

Kendrick said the average that most dealers made on new and used cars was around £1,000 a car.

Industry analyst Mike Jones, formerly of ASE, is an expert on profitability and concurred with the figures too.

He said: ‘Many people think dealers make large sums because the showrooms are that nice and expensive, they must be making that much.’

Click here to watch the video on car dealer profits

10-20

20-30 Percentage

11.1%

5.5%

30-50

50-75

2.6% 57+

There is a huge misconception as to how much retailers make on vehicle sales.

David Kendrick UHY Hacker Young CarDealerMag.co.uk | 13

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Visit us at www.dealerauction.co.uk 14 | CarDealerMag.co.uk

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AWARDS

VOTE FOR THE BEST OF THE BEST Make your voice heard in our annual survey of manufacturers and suppliers to decide who deserves recognition and who needs to sharpen their act.

E

ntries have been pouring in for Car Dealer Power 2021 as dealers seize the fantastic opportunity to say which car manufacturers are the best to represent and which suppliers are the tops to do business with. Our awards really do separate the wheat from the chaff as well. Why’s that, we hear you say? It’s because our survey is completed anonymously, which means that Car Dealer readers can really say how they feel.

Last year, Kia won the accolade for best manufacturer to represent in the UK, while MG, Mitsubishi and Vauxhall were at the bottom of the table.

Meanwhile, the suppliers section of the Car Dealer Power survey covers a whole range of businesses, from the top advertising portals to finance firms.

Once we’ve received the surveys, the number-crunching begins so that we can determine the winners of our coveted Car Dealer Power trophies.

Voting only takes a few minutes and you can access the form by clicking on the link at the bottom of this page.

We assess manufacturers in 13 categories – from finance offers to brand awareness, marketing to bonus structure – and then rank the makers in our list.

Any car dealer can vote in the Car Dealer Power Awards, and independents can skip straight to naming their favourite suppliers.

As well as the best manufacturers to represent and the best suppliers to partner with, Car Dealer Power also names the Car of the Year, as voted for by readers of Car Dealer. Last year, the Land Rover Defender won the top gong, with the Ford Puma and Porsche Taycan taking second and third place respectively.

Voting for this year’s awards will close on Tuesday, August 31, but don’t delay!

Click here to watch last year’s Car Dealer Power Awards

We’re looking for the cream of the crop in the following categories SUPPLIERS • Cleaning Product of the Year • Recruitment Agency of the Year • Trade-to-Trade Remarketer of the Year • Used Car Valuations Provider of the Year • Consumer Lead Generation Site of the Year • Dealer Management System of the Year • Website Provider for Independent Dealers • Website Provider for Franchised Dealers • Provenance Check Provider of the Year • Warranty Provider of the Year • Paint Protection Provider of the Year • Auction House of the Year • Trade Insurance Provider of the Year • Online Advertiser for New Cars • Online Advertiser for Used Cars • Finance Provider of the Year (Sub-Prime) • Finance Provider of the Year (Prime) • Video Provider of the Year • Extra Mile Award • Product Innovation of the Year MANUFACTURERS • Manufacturer of the Year • Car of the Year

Click here now to vote for your favourites CarDealerMag.co.uk | 15

INVESTIGATION

HOW LONG CAN USED CAR PRICES CONTINUE TO RISE?

Dealers tell James Batchelor about their amazement regarding the current strength of used car prices.

D

ealers across the UK are shocked by the current strength of used car prices – and they don’t predict they’ll drop an inch in the coming months.

Speaking to Car Dealer, a range of dealers big and small, from franchised to car supermarkets, all expressed amazement at the current state of the used car market.

As Car Dealer recently revealed, used car prices are at unprecedented levels, with values rising by thousands in the space of just a month.

Dealers are also being told to push up retail prices as stock shortages are on the rise, particularly with new cars and vans.

One boss of a major UK dealer group has told Car Dealer he expects prices to remain high into early 2022 and said his firm was changing tack to beat online used car dealers’ high valuations for customers’ used cars.

‘The surge in used car and van sales has, I think, taken the industry by surprise, and this has created a general shortage of stock and therefore a significant rise in prices,’ said Stuart Foulds, chairman and chief executive of the world’s largest Ford dealer, TrustFord.

‘Added to this, the semiconductor issue affecting new cars and vans means new car and CV supply is extremely tight and this will continue through Q3 and maybe Q4 too – our new order bank is at an all-time high.

‘This being the case, I think used prices will continue to rise, and in these unprecedented times my view is that this will be the case for the balance of the year and into early 2022.’

Foulds said TrustFord was reviewing its used car prices on a daily basis and adjusting them, and had seen price movements of upwards of 10 per cent.

The TrustFord boss also said his team was reviewing pricing of new vehicles ‘day by day as supply becomes tighter’.

Rocky road for online disruptors

Foulds added he predicted online used car retailers such as Cazoo and Cinch would soon be affected by the used car market in the same way traditional dealers are.

‘The “disruptors” in the market will start to struggle to source stock as dealers themselves hold on to stock rather than trade or send to auction,’ he said.

‘And the same applies to the big used car supermarkets too – these guys don’t sell new cars or vans and so the opportunity to take a part-exchange at the first stage simply isn’t there.

‘Added to that, the international travel restrictions means the rental companies aren’t replacing their fleets to the same levels as pre-pandemic, and so ex-rental cars and vans are in short supply too.

16 | CarDealerMag.co.uk

Car prices in May versus April include: Average prices City cars SUVs Convertibles MPVs

Up 6.2% Up 7.5% Up 6.7% Up 6.5% Up 5.7%

‘Dealers are getting carried away’ The current used car bubble will burst but dealers might get stung, believes Umesh Samani, owner of Specialist Cars in Stoke.

Samani, who’s also chairman of the Independent Motor Dealers Association, said: ‘It’s just sheer madness how the values have increased recently. As an example, a BMW X3 valuation on May 21 went up by £2,450!

‘I believe the trade is getting carried away in a frenzied bidding war to get stock. We’re all short of “quality stock” to retail, but I don’t believe the retail customers are prepared to pay over the odds to get these cars, only meaning many dealers are working on smaller margins.

‘The bubble has to burst, it’s just when? And many could potentially get caught out with expensive stock!’

New cars to be sold with guaranteed part-exchanges Robin Luscombe, owner of Luscombe’s Suzuki, believes the current stock shortage could have a bigger impact on the motor trade than further lockdowns.

He said: ‘The next six months are all focused on the availability of stock, which I fear could have a bigger effect on profitability than lockdowns.

‘New car supply is restricted. New cars are also more expensive due to additional technology that customers don’t see or need [but legislation demands], so the flow of partexchanges, end-of-the-contract cars matched with pent-up demand has forced prices up at an incredible rate.

‘I don’t see this being a short-term increase, as there is nothing to suggest the stock will become more plentiful, and if demand outweighs supply, prices go up.

‘I don’t think the prices can or will continue to increase at the same rate, but they won’t go down, and as semiconductors continue to cause manufacturing problems, the shortage of used cars will continue.’

Luscombe is positive for the months ahead, however, saying: ‘Aftersales will be busy, especially in August and September with delayed MOTs and service work, and we will find new ways to buy cars.

‘Whatever new cars you can get will need to be sold to customers with a part-exchange. I can almost see the situation whereby we only want to sell certain new cars if we are taking a part-exchange back, but that also presents problems.

‘It’s going to be an eventful six to nine months, but we are car dealers and we will deal our way through the situation.’

‘As an example, our own Hertz rental fleet on the Channel Islands is a fraction of what it was because there is no tourism and therefore no demand.’

Foulds revealed TrustFord was implementing new offers to win customers’ business and undercut the big online players.

‘We have launched a new marketing initiative across the group guaranteeing to beat a WeBuyAnyCar.com price by at least £100 on any Ford we buy, whether in part-exchange or as a straight purchase, and this is communicated both online, digitally and in all of our dealerships,’ he said.

‘The good news for TrustFord customers is that when buying a brand-new car or CV and trading in their current car, they are seeing large monthly payment reductions as they are getting significantly more for their part-exchange than previously.’

Potential for poor outcome for customers

Dealer group Swansway also believes used car prices are going to continue going up for the rest of the year because of new car shortages.

Director Peter Smyth told Car Dealer: ‘We’re uncertain how long the price uplift in the used car market will last, but because of the prospect of a shortage of new cars later in the year, it could last until the end of 2021.

‘Like everyone in the industry, we have struggled recently to source good-quality used cars. In response to this, we instructed all our teams to get back to basics and mine the prospecting database.

‘The majority of our customers purchase their vehicles with a PCP agreement. Previously, a customer may have found themselves to be in negative equity until much closer to the end of their agreement. Currently, due to the surprise rise in used car prices, this is not the case for a great many of our customers – which is a nice position for them to find themselves in.

‘Therefore, we are sourcing a great deal of quality stock from our existing customers in part-exchange arrangements.’

Smyth added: ‘We don’t know how long this will last, because once the OEMs understand how the current prices relate to one another, combined with a possible shortage of new cars later in the year, there may be a rise in the price of new cars – which would be a poor outcome for customers.’

Some cars have risen in price by thousands of pounds in the past month alone, including: Mini Cooper S Audi A3 Cabriolet Land Rover Discovery Sport Audi Q2 diesel Vauxhall Zafira

up £3,000 up £2,000 up £2,000 up £1,000 up £700

Holding your nerve

Motor Connect owner Steve Corwood is taking the view of not panicking amid rising prices.

‘It’s been about holding our nerve, buying the right stock in line with a quick stock turn, and keeping metal moving,’ he said.

‘The key fundamental we set is not to get carried away and buy out of comfort zones. That’s easier said than done in today’s market, though, as we can’t sell fresh air and because of the FOMO [fear of missing out] effect.

‘However, the long game needs to remain clear and we can leave ourselves exposed to a very bullish buying market.’

SW Car Supermarket told Car Dealer it was adapting to the market and changing the way it acquired stock. CEO Anton Khan said: ‘It would be beneficial for all dealers to act accordingly to market conditions and price vehicles in line with the demand, as we all need to make larger margins.

‘We foresee the market remaining strong for at least the next three months and it will be interesting to learn how margins are reflected on Auto Trader in the coming months.

‘Everybody is struggling for stock as we’re all fighting for the same profile of vehicles, hence why we are adapting to Innovative avenues in acquiring stock. We’re enjoying this period of growth after what has been a challenging year.’

CarDealerMag.co.uk | 17

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Put to the test when I ordered my Tesla but it’ll be worth it

I

No matter what people say, buying a car is never really a case of just a few clicks.

f you’ve ever tuned in to one of our weekly Car Dealer Podcasts, the chances are you’ve probably heard me banging on about Tesla and how much I want a Model 3.

Well, I’ve finally taken the plunge and actually ordered one.

For spectators of the motor industry, the American electric car firm is somewhat of a fascination and I have to admit it has been for me too.

Watching the company’s meteoric rise to become the world’s most valuable car firm – now worth more than the next five car makers combined – has been incredible.

Led by Elon Musk, the way Tesla has gone about building its brand has been unique and incredibly successful. But what’s it like actually buying one? Tesla has made a big deal about its online ordering process. The website is simple and easy to understand, and buying a car is supposedly as simple as ordering some toilet roll from Amazon.

It helps that there isn’t much choice or options when it comes to Model 3s. There are three types – standard, long range and performance variants – five colours and two interior colour choices. Options are limited to autonomous driving stuff you can use now, or preparation for autonomous stuff you may be able to use in the future. And that’s it.

I went with a Performance model, in red, with the autonomous tech you can use now.

Tesla’s PR team put me in touch with a dealer, sorry, I mean ‘store’, and the chap I spoke to helped answer a few questions on the finance side of things. He told me he could work the quotes for the lease any way I wanted, and even he admitted that ‘actually sometimes it’s just nice to chat to a human’.

No matter what people say, buying a car is never really a case of just a few clicks. There will be many buyers who’ll want to try before they decide.

I can’t say the ordering process was particularly smooth. I plugged in all my details to the website and it asked for a £100 reservation fee to secure the car. After four attempts I gave up because the website kept failing. I have no idea why.

I tried the live chat and asked them for help, but despite the fact the chat function told me the messages had been read, the conversation was ended before I even got a reply.

At this point, some would give up, but I persevered and tried again later on my mobile.

This time it worked. Excitedly, and as directed by the confirmation email, I downloaded the Tesla app to add more information but got stuck in an infinite loop. Once logged in, my options were either to exit the app or get support, which, er, exited the app. All rather frustrating. I asked Tesla if there was a problem with it but haven’t heard back.

The other problem is once you’ve ordered online, the next steps are a bit woolly. I’d chatted to the Tesla store in Winchester, but my options for delivery were only London or Kent. I’d rather not go to either. Then I threw a spanner in the works by saying I’d like the car on the new 71-plate, but Tesla told me once the car arrives you must take delivery within two weeks. I am sure it can be sorted, but again that’ll require human interaction.

Buying a car purely online sounds great, but in reality – and as many dealer bosses have told me – the true number of people who do it without any form of other contact whatsoever is minuscule.

So why did I opt for a Tesla and not one of the many other electric cars hitting the market? Well, I know they’re not known for their reliability, and questions have been raised over their build quality, but there’s something about the tech brand that feels different. It reminds me of Apple and how exciting getting a new phone can be. Tesla has managed to create that same allure with cars. The other reason is buying an electric car right now through your company makes a lot of financial sense. The tax incentives are huge, and considering I wanted one anyway, even my accountant said I’d be stupid not to.

They’re the sort of car purchases I like. If all goes to plan, and I can speak to a human, I hope to get the car on September 1. I’ve never picked a car up on new reg day so that’ll be a box ticked too. I’ll let you know how it goes later in the year.

Speaking out

COMMENT

JAMES BAGGOTT

AGAINST OUR BETTER JUDGMENT, WE LET THE CEO HAVE HIS SAY EACH MONTH James Baggott founded Car Dealer Magazine and is the 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.

CarDealerMag.co.uk | 19

Whatever’s next, let’s do it together When the world changes quickly, it can feel hard to know what your next move is. That’s why our Account Managers take the time to really understand your business. With their knowledge of customer service and innovative solutions, they can help you simplify finance and keep your business moving forward.

Get up-to-date business support at blackhorse.co.uk/dealer/home/resource-hub 20 | CarDealerMag.co.uk

Cat thieves are on the prowl so don’t let them get their claws on yours

A

It’s also a good time to invest in better forecourt security, as I found out to my detriment last week.

nyone with access to a local community Facebook group will have noticed that the nation is currently in the grip of a peculiar obsession with dog thefts, which – if nothing else – will have done wonders for the sale of cable ties.

Apparently, if you find one around your gatepost, it’s a marker for the dognappers to strike in the dead of night and whisk away your beloved ‘fur baby’ (which is social media lingo for ‘pet’, apparently).

This month, though, I want to talk not about dog theft, but about cat theft. And it has nothing to do with your smaller fur babies being taken by Dickensian-style pet pesterers with fishing nets and black cloaks. Cat theft is rife at the moment, and it’s your car babies that you need to lock up.

With values of scrap metal at a 10-year high, it may be a good time to clear out ‘Pooh Corner’ (which is where I store all my rubbishy part-exes to clear) but it’s also a good time to invest in better forecourt security, as I found out to my detriment last week.

Turns out the big ‘CCTV in operation’ stickers that I bought in a seaside gift shop in Rhyl a few years back aren’t as much of a deterrent as I thought they were, and if you want proper security you need to spend more than a fiver. I found this out the hard way when I came into work, all ready for an early viewing on a 10-year-old Golf.

The previous night’s Cabernet Sauvignon had made me a little later in than I’d hoped to be, so I didn’t have a chance (or the clarity of thought) to run the car up before the customer arrived. But I wasn’t unduly concerned as I knew it had a decent battery and a quarter of a tank of motion potion, which at that level of the market counts as a full sales prep. The customer arrived and looked around it, making all sorts of positive noises about the colour and pretty alloy wheels, blithely ignoring the fact they were shod with the finest ditchfinders that money could hide from, so I set myself up for the sale, pointing out the partial service history (which I can’t help but think is as useful as an expired magazine subscription) and the fact it had a nice little a/c button on the dash (no idea if it worked or not, but this was the closing act).

They were keen as the proverbial bean, so in order to show them just how good it was I jumped in the driver’s seat and switched on the ignition, pausing to show them how the posh Germans liked to have softly lit dashboards, and turned the key – only for the Golf to sound like my late father’s old Massey Ferguson vintage tractor. By the time I’d convinced the punter that we weren’t under siege and that it was the car making that noise, it was too late. The deal was off.

Sticking my head underneath the car after he’d scuttled off to the bus stop, I discovered that some NotRight had been over during the night and cut the catalytic converter clean out of the middle of the exhaust pipe in the dead of night. And subsequent investigation revealed they’d done another 12 cars as well.

My insurers weren’t especially interested. They asked me to review my CCTV, but as it’s just a big yellow sticker it didn’t really give me any clues, and I was left with no option but to suck up the cost of 13 new catalytic converters and a day of my mate Bob the Welder’s time to stick some exhausts back together.

It was worth it, though, for a tale that Bob told me about a less scrupulous member of the trade who caught a cat thief in the act, and rather than refer him to the authorities took the law into his own hands – a procedure that involved a stool, some rope and the remnants of the chopped-up exhausts.

For three days (so the story goes at least) the catnapper was made to stand on the stool, and every time one of the employees walked past he would be clobbered with the exhaust and knocked off it to hang suspended by his armpits for a short while, allowing the exhaust-wielder to have a quick game of swingball with him before returning him to the stool. It wasn’t the only stool on display by the time they’d finished with him, either...

Big Mike

COMMENT

OUR MAN ON THE INSIDE SHARES HIS THOUGHTS ON THE CAR BUSINESS

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 | 21

together Let’s do more

Part of the drive to reach your goals, we’re a partner to grow your business and help you thrive.

Finance

Compliance

Funding

Insight

Delivering finance solutions for your customers

Navigating regulation and compliance changes to keep you safe

Providing access to the funding you need

Sharing data and information to help you make decisions

Giving you more, so you can do more.

We’re stronger together. closemotorfinance.co.uk/together 22 | CarDealerMag.co.uk

Finance Compliance Funding Insight

Retailers big and small need to be creative and embrace linear pricing

I

In the timeline of life, I am sorry to say that we are picking through the smouldering embers of the UK motor industry.

wrote a piece many years ago advocating for the sales agency model to be applied by all manufacturers in the UK. It’s not a popular opinion among franchise holders, but I have long called for a fairer distribution of wealth to enable manufacturers and retail operators alike to focus on customer service and not what is most profitable for the retailer.

It was with great interest therefore that I read James Baggott’s interview with industry heavyweight Darren Edwards (CEO of Sytner) in which Mr Edwards outlined his concerns that several premium brand manufacturers including VW, Mercedes and Volvo were looking at this distribution model.

Mr Edwards makes some salient points. Manufacturers have historically been poor at retailing, and most manufacturer-owned retailers exist to serve areas with expensive overheads, open points or – in the past at least – outlets to dispose of difficult-to-sell new or used cars.

It is also fair to say that manufacturers lack entrepreneurial dynamism, as demonstrated by many retailers in the wake of the coronavirus pandemic. There is too much centralisation within most manufacturers, and in this tech-enabled world the glacial pace at which many are moving to effective online solutions shows both a lack of foresight in that many analysts saw it coming (even without the effect of the pandemic), and a stubbornness to fully embrace the online integration of their distribution strategy.

However, to suggest that a ‘smaller dealer’ who has shown ‘entrepreneurial’ flair might suffer and a ‘large dealer that’s underperformed might benefit’ reminds me of the ‘Won’t anybody please think of the children?’ brigade.

It is more than likely that the big dealer groups will suffer. Marshall, Arnold Clark, Sytner and the like hold many manufacturers’ feet to the fire when it comes to performance, especially in this era where new entrants to motor retail are only likely to exist in the form of disruptors to the used car business, not new car distribution.

Therefore, with a manufacturer being able to rely on a local dealer supplying a local car with agency selling, the emphasis must turn to performing in each local market and not at a national level.

It has been long established that car buyers do not like haggling. We must embrace a linear pricing model (as much as is allowed within the boundaries of competition) to stop disruptors like Carwow or, God forbid, Cazoo trying to muscle in on a dealer’s new car business and pointing out to the great British public that dealers have something to hide.

All car retailers big and small need to use this entrepreneurial talent and be creative. I know Volvo dealers in Sweden who own vehicle dismantlers and push accessories like a dealer in the UK would push GAP or Supagard.

In the timeline of life, I am sorry to say that we are picking through the smouldering embers of the UK motor industry. This is not about how big or small a dealer is or how cars get distributed, this is about transport solutions, environmental concerns and global pandemics, and the sooner we all get creative, the easier the end will be.

Trader Tales

COMMENT

JAMES LITTON

CASTING AN EXPERIENCED EYE ON THE WIDE AND CHALLENGING WORLD OF MOTOR SALES

James Litton is an automotive retail consultant who always has something to say about the industry he loves.

CarDealerMag.co.uk | 23

DASHBOARD

CAR NEWS ROUND-UP Manufacturers have been busy refining existing models and producing new ones. We look at 10 of the results...

BUGATTI

1,578bhp Chiron Super Sport revealed BUGATTI has revealed the Chiron Super Sport – a faster, more luxurious version of its already incredible hypercar.

The 1,578bhp Super Sport has been designed with the aim of ‘combining top speed with absolute luxury’, according to Bugatti president Stephan Winkelmann.

It’s fair to say this has been achieved, with the new model having a huge top speed of 273mph. Various updates include a new low-drag body that also generates enough downforce to keep the car stable at high speeds. For example, it’s 25cm longer and the rear diffuser has been made larger.

SKODA

Enyaq iV Sportline range expands VAUXHALL

Sneak peek at eighth-gen Astra VAUXHALL has shared the first teaser images of the new Astra hatchback, which will get a new look inspired by the firm’s ‘Vizor’ design language.

It'll be the eighth generation of the car, but the first time it's been electrified. It shares a platform with the Peugeot 308 and is likely to come with a plug-in hybrid powertrain alongside the regular petrol and diesel options. One shot includes the headlight, with the design in line with other new Vauxhalls such as the Crossland and Mokka.

24 | CarDealerMag.co.uk

HYUNDAI

Ioniq 5 EV goes on sale in first for platform HYUNDAI has opened order books for the new Ioniq 5 electric vehicle.

The sleek and stylish hatchback, which costs from £36,995, is the first car to be built on the firm’s E-GMP electric vehicle platform.

It’s offered with three battery and drive types in the form of a 58kWh battery with rear-wheel drive and 168bhp motor, and a 73kWh battery with rearor all-wheel drive, making 214bhp and 301bhp respectively. The models have 240, 300 and 287 miles of range respectively, and a 350kW charger will add 80 per cent capacity in 18 minutes.

SKODA has bolstered the number of powertrains for its sporty Enyaq iV Sportline.

It was initially unveiled back in March, showcasing a sportier-looking version of the firm’s latest EV. Powered by a single motor with 237bhp, it’ll manage 0-60mph in 8.2 seconds yet deliver a range of up to 327 miles.

Now there's a lower-power Enyaq iV Sportline 60, with 177bhp. But the big addition is an 80x-badged model. With 261bhp, it should return up to 310 miles from a single charge.

BENTLEY

It's back to black with Bentayga S

BENTLEY has introduced a new ‘S’ version of its popular Bentayga, bringing added dynamism to the SUV. It’s differentiated from the rest of the Bentayga range by unique 22-inch alloy wheels, ‘S’ badges on the lower edges of the front doors, and gloss black features via the Blackline spec. A large rear spoiler gives it a sportier appearance, bolstered by a gloss black side sill and lower front and rear bumpers. The headlights and tail lights have been given a smoked appearance, too.

BMW

M4 Competition Convertible M xDrive hits the road BMW has revealed a drop-top version of its new M4 – the M4 Competition Convertible M xDrive.

One of the biggest changes over the predecessor is a fabric folding roof that replaces the metal version on the older car. According to BMW, the new system weighs around 40 per cent less than before, and can be opened or closed in 18 seconds at speeds of 31mph.

In addition, BMW says the boot capacity is 80 litres more than before when the roof is stowed away. It’s powered by the same 3.0-litre straight-six engine.

KIA

Overhauled Sportage SUV to have European version KIA has revealed the first images of the new fifthgeneration Sportage SUV. The South Korean firm says it'll have a dedicated European version of the model for the first time. This will be revealed in September, although it’s unlikely to be drastically different to the car seen today.

The Sportage has been updated inside and out.

It has a unique front end, including boomerangshaped vertical daytime running lights, while at the back it has a full-width light bar.

Four doors for new 4 Series Gran Coupe

MOUNTUNE

BMW has revealed the more practical Gran Coupe version of its 4 Series.

It makes the model a fourdoor for easier access to the more spacious rear seats, but retains swoopy, coupe-like styling to distinguish it somewhat from the 3 Series saloon.

The Gran Coupe is based on the regular 4 Series so gets the same design updates, including the controversial front grille. It also means it’s slightly bigger than its predecessor. The top-spec model is the M440i xDrive.

VOLVO

New packages to boost ST outputs

C40 Recharge can now be ordered

SPECIALIST Ford performance firm Mountune has new packages for the Fiesta ST and Puma ST to boost output.

Called m260, the first of the new kits can be fitted to either the Fiesta ST or the higherriding Puma ST, taking power up to between 246bhp and 256bhp – a considerable leap from their standard 197bhp.

The package – £675 for new customers and £99 for those with existing kits but looking to upgrade – includes a new induction kit, charge pipe kit and intercooler.

ORDER books have opened for Volvo’s first electric coupe-SUV – the C40 Recharge.

Prices start at £57,400 and there’s just one trim level.

It gets 20-inch wheels, a panoramic sunroof, a Harman Kardon sound system and a heat pump to help keep the battery at its optimum temperature as standard.

It can also be ordered via the firm’s subscription service.

Packages start at £729 per month for a 36-month fixed contract, based on drivers travelling 6,000 miles per year.

CarDealerMag.co.uk | 25

DASHBOARD ACQUISITION

NEWS DIGEST

HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED

CLICK ON THE PICTURES FOR THE FULL STORY Stoneacre confirms RMB takeover STONEACRE Motor Group has bought RMB Automotive, confirming rumours exclusively revealed by Car Dealer.

Doncaster-based Stoneacre’s acquisition of the Toyota, Lexus, Dacia and Renault retailer for an undisclosed figure means it now represents 29 brands at 138 locations and 62 branches.

Stoneacre managing director Shaun Foweather said: ‘We have now met the new team and I would like to welcome them to the Stoneacre family.’ He added there would be more investment.

INVESTMENT

BEN

Training for Industry Leader Challenge ascent of Kilimanjaro begins and more teams are wanted TRAINING is well under way for The Climb – automotive charity Ben’s Industry Leader Challenge for 2021.

Between October 30 and November 8, motor industry teams will be climbing Mount Kilimanjaro and Ben is inviting more to join. So far, five teams have committed to take part and raise money, comprising LKQ Euro Car Parts, Marshall Motor Group, Haymarket Automotive, Partners& and Lawgistics, and JCT600.

They’ll be climbing alongside Matt Wigginton, Zara Ross and Rachel Clift from the charity. Team Partners& and Lawgistics, made up of Lawgistics MD Joel Combes, left, and head of automotive at Partners& Leon Bosch, right, began their training alongside fundraising director Wigginton, right, on the Surrey Hills.

SYTNER

Beckham buys into electrified classics LUNAZ has received backing from David Beckham.

The former professional football is said to have taken a 10 per cent share in the UK-based company – founded in 2019 by David Lorenz – that’s made a name by electrifying classic cars such as the Jaguar XK120 plus Bentley and Rolls-Royce models.

Beckham said: ‘David Lorenz and his team of worldclass engineers are building something very special and I very much look forward to being part of their growth.’

26 | CarDealerMag.co.uk

CarShop brand is repositioned

SYTNER is repositioning its CarShop brand to make it the ‘go-to place’ for used cars.

The used car retailer will be introducing a new ‘home of good carma’ strategy in an attempt to become ‘one of the UK’s best-loved brands’, it says, and overhaul the used car industry’s old-fashioned image. Its strategy will prioritise offering customers online and physical sales rather than focusing on just one.

RE-ELECTION

No matter what people say, buying a car is never really a case of just a few clicks.

James Baggott p19

Phil White to stay on as Lookers chairman

LOOKERS chairman Phil White has agreed to stay on to help the listed dealer group for a bit longer as it continues a search for a replacement for him.

In an update, the group told investors that he will stand for re-election at the group’s annual meeting on June 30 as it was in the best interests of the company to ask him to stay on.

It will finally be sharing its results for 2020 on June 29.

Manheim/Santander partnership extended.

Supplier News: p46

‘It’s got more than enough performance under your right foot to be fun.’

Forecourt: p32

CAMBRIA

DEVELOPMENT

Lavery £80m offer to JCT600 starts work go to shareholders on £9m Ferrari site

SPOTICAR

Stellantis launches used car sales first

T S A C D PO Driven by

CAMBRIA Automobiles has agreed to a cash offer of some £80m from its chief executive Mark Lavery to buy the listed dealer group and take it private.

Directors said his cash offer of 80p per share would be put to shareholders with a unanimous recommendation that they accept it.

The offer needs to be passed by a majority holding at least 75 per cent of the share value, but is expected to come into effect in the third quarter of 2021.

JCT600 has started work on a new standalone two-storey Ferrari sales and aftersales centre in Leeds.

The Yorkshire-based dealer group says the development, which will take eight months to build and represents a £9m investment, is the highest-value project it has ever undertaken.

Work was due to start on the new building last year but it was hit by disruption caused by the Covid-19 pandemic. It’s now scheduled to open in early 2022.

AWARD

Beechdale named top Alfa Romeo dealer

ALFA Romeo has named Beechdale Motor Group in Derby as its UK retailer of the year.

The dealership was commended for exceeding expectations and for its excellent customer satisfaction figures. Damien Dally, Alfa Romeo UK country manager, said: ‘The past 18 months have proved challenging on so many fronts, but the dedication and hard work Beechdale has shown in light of this deserves to be awarded.’

STELLANTIS has launched the UK’s first multi-brand approved used car programme – SPOTiCAR. Stellantis used vehicle operations director Nick Richards said at the press launch that the Peugeot, Citroen and Vauxhall networks would operate under the umbrella from the off, DS will also have vehicles displayed, but DS Certified will have its own used vehicle locator.

Meanwhile, ex-FCA brands are expected to be incorporated into the programme early next year.

OM R F M A E THE T EALER CAR DBOUT TALK ATEST THE LAAND NEWSVIEWS IN INTER EGULAR THIS R ST PODCA

DEAL

Turns out the big ‘CCTV in operation’ stickers I bought in a seaside gift shop a few years back aren’t as much of a deterrent as I thought they were.

Big Mike p21

All-in-one service as Carwow buys Wizzle

E R E H K C CLI

CAR-BUYING comparison site Carwow has bought the used carbuying platform Wizzle.

Carwow says the acquisition, for an undisclosed sum, will help its 12.5m users find a new car and sell their current one all in one place.

Chief executive James Hind said: ‘Our partners have told us that they want better direct access to highquality used car inventory and this acquisition will allow us to do just that quickly.’

PAST O T N E T S TO LI ES OF THE EPISODEALER CAR DASTS PODC Turn over page to catch up on more stories

CarDealerMag.co.uk | 27

DASHBOARD APOLOGY

NEWS DIGEST

HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED

CLICK ON THE PICTURES FOR THE FULL STORY Anger as TrustFord fells trees illegally TRUSTFORD has apologised after felling 11 mature trees outside its Wimbledon dealership without permission.

Residents mounted a protest after the 30-year-old ash and acer trees were cut down on, claimed the dealership group, health and safety grounds. It has said sorry for the ‘mistake’ and will plant more shrubs and trees in their place. It also gave a primary school £5,000 towards a new outdoor classroom. But one resident said no apology would ever put things right.

PARTNERSHIP

CHARITY

Here’s how to register for Bangers4Ben as the big rally returns for 2021 with a Best of British theme BANGERS4BEN is back – and it’s going to be celebrating the best roads of Britain!

After an enforced hiatus last year because of you-know-what, the fun-filled charity rally for the car industry is returning. Taking place from October 9 to October 12, it’ll start at Bicester Heritage, and will see drivers visiting Aberystwyth, the Brecon Beacons, Buxton and York among many places, with breathtaking vistas assured. For more details, click on the image. To register an interest in taking part, go to https:// www.universe.com/events/bangers4ben-2021-the-best-of-british-tickets-8YXGLP. No money is needed yet.

CAPITAL

Hendy offers hire from showrooms DEALER group Hendy has partnered with Karzoom and hopes to make its cars ‘work harder’ by hiring them out.

Karzoom is a car hire company without any cars. Instead, it works with franchised car dealers by using their nearly-new stock. Hendy commercial director Mark Busby told Car Dealer: ‘For us, this is a great opportunity to connect with people who don’t have a car and get them into our dealerships, but it also makes our stock, such as demonstrators work, harder.’

28 | CarDealerMag.co.uk

£1bn private funding is raised for Cinch

BCA and WeBuyAnyCar owner Constellation Automotive Group has raised over £1bn in private capital to pump into Cinch, as it seeks to capture a larger slice of the international used car market.

The capital has been stumped up by a wholly owned subsidiary of the Abu Dhabi Investment Authority, GIC, Neuberger Berman client funds, and funds advised

by Soros Fund Management LLC, said Constellation.

80

The number of Czinger 21C supercars that will be built.

Feature p40

MUSK VISIT

Could Tesla factory be on cards for UK?

TESLA might be opening a new factory in Britain in what would be a major boost for the UK motor industry.

The Times reported that boss Elon Musk is growing tired of red tape at the firm’s German factory.

The billionaire flew to Luton from his California home in May, staying for two days. It coincided with regional authorities being given just two days to prepare bids for a site for an undisclosed company.

Cool stuff: We’ve sorted out some fabulous things you can buy with your lockdown savings.

‘Quote.’

Feature: p47

Feature: pXX

LSH AUTO

Flagship showroom has £250k revamp

LSH Auto’s flagship MercedesBenz of Erdington showroom has undergone a £250,000 transformation as it launches a new car sales operation.

The manufacturer’s latest brand identity has been added throughout the upgraded Midlands dealership, which opened as the UK’s first Mercedes-Benz Used Car Centre of Excellence two years ago.

The refurb takes the showroom to ‘world class’ status, said LSH Auto.

GIFT

West Way Nissan helps WellChild

NISSAN’S largest UK dealer is providing vital transport assistance to an ‘incredible’ children’s charity as part of a new partnership.

Dealership group West Way has handed over a Qashqai and an NV400 van to be used mainly by the Helping Hands team, whose head, Lorna Pedersen, said: ‘These vehicles are going to enable us to help families across the UK, not to mention saving us a phenomenal amount of cash.’

PREVIEW

Manufacturers have historically been poor at retailing...

It is also fair to say that manufacturers lack entrepreneurial dynamism.

James Litton p23

AUDI

New Qashqai tours round dealerships

NISSAN customers in the UK are getting a special preview of the new Qashqai before first deliveries take place in the summer.

Pre-production models of the third-gen model have been on a seven-week tour of dealerships One of those visited was Alexanders York Nissan, and general sales manager Darren Turner said: ‘The event was a great success and the reaction from our customers was overwhelmingly positive.’

EXPANSION

Service plan ‘savings Perrys adds MG of more than £1,200’ to Aylesbury site

AUDI UK has launched what it calls a pioneering two-year service plan that it reckons can save drivers more than £1,200.

The All-in initiative is for people who drive an Audi that’s between three and six years old, and there’s no limit on the number of previous owners. It can be paid for in monthly instalments of £32.71 or £784.98 upfront and covers two services, two MOTs, two years of AA roadside assistance, plus two years’ warranty.

INDEPENDENT dealer group Perrys has opened an MG showroom in Aylesbury.

It joins Ford, Peugeot, Seat and Vauxhall there.

Hailing it as a perfect fit, Denise Millard, executive director for Perrys Motor Sales, said: ‘MG is a brand that’s really capturing the imagination, with great-value cars that are good quality, well equipped and backed by the assurance of a brilliant seven-year warranty.’

BITE-SIZE Click on the text box for the full story

LAUNCH: Cazoo has launched its all-inclusive new car subscriptions service to replace Drover – six months after buying it. All Drover branding has been removed from Cazoo’s website, and Cazoo bosses said the new service was ‘long overdue’.

RETURNING: The Geneva International Motor Show is set to return in February 2022 for its 91st edition. It’ll be at the Palexpo exhibition centre in Geneva once again, with the event scheduled to run from February 19 to 27.

JOBS: Pendragon employees face a nervous wait over their jobs after it put 250 of its 400 accountants up for redundancy.

The move came just weeks after a shareholder revolt failed to dislodge CEO Bill Berman over a bumper new pay deal.

MONEY: The Daily Mail owner is set for a £956m windfall from its investment in online used car dealer Cazoo when it lists. The Daily Mail & General Trust owns 21 per cent of Cazoo and says its £117m share is set to be worth more than eight times that.

BOOST: Owners of BMW and Mini electric and plug-in hybrid vehicles now have access to thousands of public charge points via one account. BMW Charging and Mini Charging lets them use various providers via an RFID card or phone app.

CarDealerMag.co.uk | 29

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FORECOURT

AUDI E-TRON S Audi has given the e-tron a unique triple-motor setup and an S badge.

Darren Cassey discovers what it’s like behind the wheel.

Power

The triple-motor system pumps out 489bhp and 973Nm of torque and can propel the Audi to 60mph in 4.5 seconds WHAT IS IT? The Audi e-tron was one of the first electric SUVs to market, and now we have this, the e-tron S. It follows a similar recipe to other Audi S models in that it takes the regular car’s practicality and adds a little more performance, sportier looks and some dynamic tweaks and changes that make it more fun to drive.

THE KNOWLEDGE Audi e-tron S Price: £86,690 Engine: Triple-electric motors

WHAT’S NEW? While traditionally an S badge might denote more cylinders, displacement and bigger turbos – or a combination of all three – in the world of electric S cars it means we get an extra electric motor, meaning there’s a trio, with two on the rear axle and one on the front.

The new motor setup sees a new drive system, which is more rear-biased than the regular e-tron. Only the rear motors are engaged in normal driving to improve efficiency. The air suspension has an S-specific tune to improve handling, there are big brakes to improve stopping power, and optimised aerodynamics with wider wheel arches.

Power: 489bhp

WHAT’S UNDER THE BONNET? That triple-motor system is actually the first of its kind in a production vehicle. It uses the rear motor from the standard e-tron 55 on the front axle, and two modified examples of that car’s front motor on the rear. The battery, meanwhile, is an 86kWh unit that can return up to 221 miles between charges.

O-60mph: 4.5 seconds

WHAT’S IT LIKE TO DRIVE? On first impressions, this feels like any other electric SUV – quiet, refined and responsive.

The e-tron is one of the best in the business, having a really solid feel to it, with perfectly judged control weights for the steering and pedal inputs that make it genuinely satisfying to drive even at normal speeds.

Where the S stands out from the crowd is its surging performance. This is a big, heavy car, so despite the impressive torque figure it’s not neck-snappingly quick off the line, but plant your foot as the lights go green and there’s a punchy surge of acceleration.

It’s surprisingly good fun in corners, too, thanks largely to the combination of a low centre of gravity (the batteries are buried deep in the floor) and the suspension upgrades.

And thanks to the wonders of air suspension, that extra talent in corners doesn’t come at the sacrifice of a comfortable driving experience.

Emissions: 0g/km CO2

32 | CarDealerMag.co.uk

Torque: 973Nm Max speed: 131mph

Range: 221 miles

HOW DOES IT LOOK? Audi has given the bodywork a pumped-up, sporty look. The whole body is 23mm wider to give it a more muscular appearance, while the front and rear bumpers have sharper lines, and a rear diffuser has been put in place.

WHAT’S IT LIKE INSIDE? It has a dark theme that can be brightened by brown seats, while there are two central screens and a third ahead of the driver. The lower central screen controls functions such as the climate control, while the upper is the infotainment display. The third is a digital instrument display, with all being clear, high-resolution and easy to use. The surfaces that aren’t screens are all of the highest quality, too, really nailing that premium feel.

WHAT’S THE SPEC LIKE? The ‘standard’ e-tron S starts at £86,690 and has a healthy equipment list, including 21-inch alloy wheels, LED headlights and taillights, S-specific exterior bodywork, heated ‘super sports seats’, leather upholstery, the triple-screen interior and a 10-speaker sound system.

Upgrading to Vorsprung adds a considerable amount to the price. For £102,160, you get 22-inch alloy wheels, digital matrix headlights, panoramic roof, a Bang & Olufsen sound system plus extra driver assistance tech. Our test car was a standard model but had about £10k-worth of options, cherry-picking some highlights from Vorsprung. For example, if you like listening to music on the road, the £1,895 Comfort and Sound pack includes the Bang & Olufsen sound system, which is excellent.

WHAT DO THE PRESS THINK? Evo called it the ‘most convincing example yet of an electric SUV’, while Car said it’s ‘more than just a more powerful e-tron’.

WHAT DO WE THINK? It more than delivers, with the air suspension meaning you don’t need to sacrifice ride quality for improved handling. It might not feel as crazy fast as you’d expect from an electric car with such big power figures, but it’s got more than enough performance under your right foot to be fun. And when you want to take things easy, it’s quiet, refined and relaxing to cruise around in. It really is a great all-rounder.

Styling The bodywork has been afforded a pumped-up, sporty look, giving it a muscular appearance.

Inside The tech-heavy, screen-filled cabin has the typical Audi premium feel.

It’s got more than enough performance under your right foot to be fun.

TARGET BUYERS:

People in the premium SUV market who want zero emissions.

THE RIVALS:

Mercedes-Benz EQC Jaguar I-Pace Tesla Model X

KEY SELLING POINTS:

1. That typical Audi class inside and out.

2. Fun and relaxing to drive.

3. Low running costs.

DEAL CLINCHER:

Typical Audi style plus the refinement of an EV.

CarDealerMag.co.uk | 33

FORECOURT

PEUGEOT 508 SW All torque

The turbocharged 1.6-litre petrol and electric motors produce 355bhp and 520Nm.

Peugeot has kickstarted its new electric performance division with what’s likely to be a rare sight. Ted Welford tried one for size...

WHAT IS IT? Peugeot is getting ahead of the electrification curve in the ‘halo’ performance brand sector by launching its ‘Peugeot Sport Engineered’ (PSE) brand. Every model to come from PSE will either be a hybrid or electric.

WHAT’S NEW? On first impression, you might think the 508 PSE – which is available as both a Fastback or the SW (estate) we’re testing here – is just the standard 508 with a slightly beefier engine and fancy frock. That’s true, in part, with this model being Peugeot’s most powerful road car to date and getting a seriously aggressive design.

But there’s a lot more to it than just outright speed and visuals...

WHAT’S UNDER THE BONNET? Peugeot has combined a turbocharged 1.6-litre petrol engine with twin electric motors. With one on the front and another on the rear, it also means it’s four-wheel drive.

Yet charge the model’s 11.5kWh battery up – which takes an hour and three-quarters with a 7kW wallbox – and Peugeot claims a 26-mile electric range. Benefit-in-kind is just 13 per cent for company car drivers, bringing welcome savings over the Audi S4 Avant and BMW M340d Touring, which make do with conventional engines.

WHAT’S IT LIKE TO DRIVE? When you’re pushing on, you can really feel the traction at the rear axle helping to drive you around the corner. The well-weighted steering has clearly had plenty of recalibration to make it feel more involving than the standard car, while the agility for a 1.9-tonne hybrid estate car is nothing short of remarkable.

You also sit delightfully low in the superb leather and Alcantara sports seats that help to elevate that sporty feel, while the ‘Comfort’ setting makes the 508 PSE a decent cruiser. It’s still pretty firm, though, thanks to Peugeot stiffening up the suspension by 50 per cent and large 20-inch wheels wrapped in low-tyre wall Michelin Pilot Sport 4S rubber.

HOW DOES IT LOOK? It attracts glances on the road like few hybrid wagons ever could, with the darkened chrome Peugeot badges not immediately noticeable and inviting the inquisitive to take a closer 34 | CarDealerMag.co.uk

THE KNOWLEDGE

Peugeot 508 SW PSE Hybrid4 360 e-EAT8 4WD Price: £55,795 Engine: Turbocharged 1.6-litre petrol with electric motors Power: 355bhp Torque: 520Nm Max speed: 155mph O-60mph: 5.0 seconds MPG (combined): 138.9 Emissions: 46g/km CO2

TARGET BUYERS:

Company car drivers with a very generous allowance.

THE RIVALS:

BMW M340d Touring Audi S4 Avant Volvo V60 T8

KEY SELLING POINTS: The looks The 508 SW is a striking estate. But one of the best-looking cars to buy?

Probably.

Inside The cabin is bold and imaginative but the ergonomics won’t suit all.

1. Futuristic styling.

2. Rare combination of strong performance and low running costs.

3. Brimming with technology.

DEAL CLINCHER:

The rarity factor – you’re unlikely ever to see another 508 PSE.

look. The PSE can be spotted by its bold grille with larger air intakes, as well as the lashings of ‘Kryptonite’ (the greeny-yellow bits) on the front end, badging and brake callipers. You’ll also notice the fancy aero pieces that stick out on the lower bumpers, along with a fancy rear diffuser. It is – to our eyes at least – one of the best-looking cars you can buy today.

WHAT’S IT LIKE INSIDE? The 508’s interior is bold and imaginative, with a large upfront digital instrument cluster, prominent touchscreen with aircraft-like toggle switches and Peugeot’s now-notorious small steering wheel. Although it all looks the part, the ergonomics won’t suit all, with the seating and steering wheel position requiring plenty of adjustment so you can see the dials properly. The touchscreen is also quite laggy, and not anywhere as good as those found in Audis and BMW at a similar price. More positively, the PSE offers the same large 529-litre boot space as the standard 508SW, while rear-seat space is plentiful for adults.

WHAT’S THE SPEC LIKE? The Peugeot you see here will set you back £55,795. You could save yourself a couple of thousand with the Fastback but it still makes it more expensive than the Audi S4 Avant.

That said, you should consider the lower running costs with the hybrid Peugeot than its petrol and diesel rivals, while standard equipment is especially generous – including ‘Night Vision’ tech that can spot any hazards in the road using an infra-red camera.

The only options you can pick are the colours Nera Black or Pearl White, although we’d be pretty happy to stick with the free Selenium Grey (pictured).

It brings innovation and performance, and indicates just how far Peugeot has transformed itself.

WHAT DO THE PRESS THINK? Top Gear said: ‘We don’t expect to see many of these around, but we’ll salute anyone we do see driving one.’

WHAT DO WE THINK? The 508SW PSE is a truly exciting car that showcases that the electrified future is something to really look forward to. It brings innovation and performance, and indicates just how far Peugeot has transformed itself in recent years. Peugeot Sport Engineered’s first car might not make the most rational sense, but it’s a brilliant halo model and one that gets this firm’s new electrified sporty line off to a fantastic start.

CarDealerMag.co.uk | 35

FORECOURT

VOLKSWAGEN TIGUAN R THE KNOWLEDGE Volkswagen Tiguan R

Volkswagen has given its Tiguan SUV the R treatment. Darren Cassey decides if a go-faster engine and racy styling make for a compelling option.

WHAT IS IT? This mid-sized SUV takes the usual VW R combination and applies it to the firm’s bestselling model. It should sell like hot cakes, then…

WHAT’S NEW? It gets a new-look front end, upgraded assistance systems, new infotainment system, reconfigured all-wheel-drive system, R-specific petrol engine, lowered ride height, sports exhaust system, new ‘progressive steering’ and drive mode selection.

WHAT’S UNDER THE BONNET? The engine is the latest generation of the EA888 2.0-litre, turbocharged petrol unit. It doesn’t feel quite so urgent here as elsewhere on account of being in a heavy SUV, but it’s got more than enough punch to make swift progress.

WHAT’S IT LIKE TO DRIVE? You never feel like you’re in a hot hatch, but covering country lanes at a rapid pace is less intimidating than you’d expect. And if you put it in sport mode and use the paddles to shift manually, the gearbox is almost seamless between shifts. However, it’s let down slightly by its everyday driveability, and the gearbox is sluggish and unresponsive.

HOW DOES IT LOOK? The Tiguan is already a handsome SUV, and in R trim this is only amplified. There’s a sleek headlight design that blends into the prominent front grille, while at the back the lower bumper has an aggressive diffuser design that incorporates a quad-exit exhaust system.

Price (as tested): £45,410 Engine: 2.0-litre turbocharged petrol Power: 316bhp Torque: 420Nm Max speed: 155mph 0-60mph: 4.9 seconds MPG: 28.5 Emissions: 225g/km CO2

TARGET BUYERS:

Anyone who needs something for the school run that’ll be fun on the way home.

THE RIVALS: Cupra Ateca Porsche Macan BMW X2 M35i

KEY SELLING POINTS:

1. Looks fantastic.

2. Surprisingly capable on a fun road.

3. Engine feels quick despite the Tiguan’s size.

DEAL CLINCHER:

All the practicality you need from an SUV but with a sprinkling of fun, too.

WHAT’S IT LIKE INSIDE? The cabin is large and spacious, with an imperious driving position. The seats are comfy and the touchscreen is clear and easy to use. However, VW has an obsession with touch buttons elsewhere and they’re quite unpleasant to use.

WHAT’S THE SPEC LIKE? Prices start at £45,410, giving you – for example – some R styling tweaks plus LED front and rear lights. Other features include a digital instrument panel, Apple CarPlay and Android Auto integration in the infotainment system, plus sat nav.

WHAT DO THE PRESS THINK? Auto Express said it was a ‘good all-rounder’.

WHAT DO WE THINK? As an overall package, the Tiguan R is a compelling, fun, stylish and pacy SUV. 36 | CarDealerMag.co.uk

Inside

The cabin is large and spacious with comfortable seats but there are just too many buttons!

ADVERTISING FEATURE

New desirability index gives top insight into used car market trends

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ston Barclay has developed a used car desirability index to help dealers understand what’s hot and what’s not in the market at Aston Barclay Used Car Desirability Index the moment.

60 Drawing on its extensive used car database, 55 50 the national car and van auction and remarketing 45 specialist has created a unique formula to guide 40 35 them on which used cars to stock and setting the 30 correct reserve prices in this busy market.

25 The data takes three key metrics into account: 20 15 web views ahead of sale, physical and online 10 bids per sale and the sale price achieved as a 5 0 percentage of CAP Average.

The formula gives an accurate representation of buyer habits during April and early May in Aston Barclay’s current hybrid physical and digital auction space, which has seen attendance go up.

Physical buyers are purchasing 60 per cent more used cars at the moment than are digital buyers, it says, and the index keeps in close touch with physical and online buyer trends.

Many of the top 25 cars on the list are SUVs, particularly at the premium end of the market such as the Audi Q5, Mercedes-Benz GLE, Jaguar F-Pace and BMW X5.

Four out of the top 25 are from Mercedes-Benz, reinforcing the brand’s strength in the current used car space.

The Tesla Model 3 is the only fully electric car on the list and the Kia Niro and Lexus NX the only hybrids, showing that the market’s current appetite still leans towards petrol and diesel cars.

The Lexus NX topped the table, while the Mazda MX5, BMW 2 series, Mini Clubman and Countryman were the only smaller cars to appear.

Many of the used premium cars coming up at auction have become more desirable in the past few weeks as semiconductor shortages continue to impact on supplies of new cars, says Aston Barclay.

In this buoyant market, vendors are increasingly looking to their suppliers to help them price their products to maximise their returns.

Martin Potter, Aston Barclay’s managing director – customer, said: ‘We built the desirability index in response to the industry wanting to understand the latest trends following the market reopening and us embracing our hybrid physical and digital strategy.

‘We have taken data from across all our physical and digital platforms to provide valuable insights to help both buyers and vendors.’

46.8

Unique formula from Aston Barclay helps ensure dealers stock the right used cars and set the correct reserve prices.

To find out more about Aston Barclay, go to astonbarclay.net Contact Martin Potter via salesteam@astonbarclay.net

Source: Aston Barclay

We built the desirability index in response to the industry wanting to understand the latest trends following the market reopening.

Martin Potter, Aston Barclay MD – customer CarDealerMag.co.uk | 37

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oo often, decisions taken in multi-outlet franchised dealers are made by gut feeling backed up with incomplete data. There are reports coming out of the DMS and other third-party applications but there are just so many transactions and other activities that it is difficult to get the information presented in an understandable format within the timelines required. Dealerships are drowning in their own data.

Some of the largest auto dealer groups’ business performance suggests they get it right more often than they get it wrong. However, increasing competition, the change in the way consumers buy, EVs, and external factors such as Covid and Brexit, etc, mean this is no longer sustainable. On top of this, the sales channel to the consumer is changing. In May, PSA dealers received a two-year termination notice and other manufacturers have signalled they will be changing their route to market, too.

Up to half of UK car dealerships will close by 2025, according to respondents to KPMG’s Global Automotive Executive Survey 2018.

Does this mean that there is no hope? Is it time to throw your hat at it?

Other sectors have gone through disruptive changes and there have been big winners at the end. One consistent characteristic of these winners is the way they use data differently from those that don’t.

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• Providing service and support to customers faster + 39 per cent* Data analytics, or business intelligence (BI), has been around for a long time. So why haven’t we seen more solutions in the auto dealership space and why are they appearing now?

• Transaction software suppliers generally have not been successful at providing BI or analytics solutions. Their architecture, tools and skill sets are not an ideal mix for analytics solutions.

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• Cloud solutions have become more acceptable and are cheaper to build.

• The need is greater now.

For more information visit realworldanalytics.com 38 | CarDealerMag.co.uk

Source: McKinsey & Company – How big data can improve manufacturing, July 2014

If we have data, let’s look at data. If all we have are opinions, let’s go with mine.

Jim Barksdale Former Netscape CEO

Real World Analytics has built a secure cloud-based business intelligence solution specifically for franchised dealers which is used by three of the largest dealers in the UK and dealerships with as few as four outlets. It is the one place they go to manage their whole business.

The CEO can see everything that is going on in one graphical dashboard. Function heads have drillable dashboards that bring data in from their DMS and thirdparty applications, and these are blended with their budgets and targets. Exceptions are dealt with on the fly at all levels. Automated DOCs for sales and aftersales give the branch managers and their people the information they need to deliver on the daily objectives set.

There are unique modules for sales of new and used vehicles, stock management for vehicle & stock and service managers.

There are multiple business development tools for each department.

Visit realworldanalytics.com for more information and our customers’ successful story.

Ignite Potential.

Our Digital Teams have grown – giving even better service and enabling more cutting-edge automotive products than ever before

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www.blueskyinteractive.co.uk CarDealerMag.co.uk | 39

FEATURE

21C

SUPERCAR

Czinger reveals production-spec 21C supercar with 1,233bhp.

Darren Cassey looks at the facts.

C

zinger has shared images and details of its production-ready 21C supercar.

It has a revolutionary look and construction process, with each component designed using computational engineering and some built using 3D printing.

Starting with the headline statistics, the 21C has a mid-mounted, 2.9-litre flat-crank V8 petrol engine with twin-turbochargers, as well as two electric motors, each powering a front wheel.

The total powertrain output is 1,233bhp with a 100bhp upgrade available, contributing to a top speed of 281mph in 40 | CarDealerMag.co.uk

low-drag optimisation mode. The 0-60mph time is said to be less than two seconds, while the sprint to 186mph takes just 13.8 seconds.

It has a seven-speed automated manual transmission, and is designed to use a range of fuels, including sustainably sourced ‘e-fuels’ that would allow it to effectively run as a zero-emissions vehicle.

Designed and built in Los Angeles, the 21C uses a patented production system, which includes automated AI-based design and optimisation software that ensures each component is as light as possible while also meeting performance parameters.

Czinger also uses ‘additive manufacturing processes’ – more commonly referred to as 3D printing. It says this allows it to optimise parts in ways other manufacturers can’t.

For example, the front upper control arm is hollow to reduce weight.

Buyers can choose between two specifications: high downforce or low drag.

Just 80 examples of the Czinger 21C will be built, with the firm previously confirming that this will be the first of a series of performance cars using its proprietary design and construction process.

0-60mph

Seven-speed automated manual transmission.

in less than two seconds.

1,233bhp with 100bhp upgrade available.

281mph

Top speed in low-drag optimisation mode.

Each component is designed using computational engineering with some manufactured using 3D printing.

2.9-litre

flat-crank V8 petrol with twin turbochargers.

80 Czinger 21Cs will be built.

CarDealerMag.co.uk | 41

IMAGINE REMOVING BIRD D E P O S I T E TC H I N G W I T H

BY APPOINTMENT TO HER MAJESTY THE QUEEN SUPPLIER OF CAR CARE PRODUCTS AUTOGLYM, LETCHWORTH, ENGLAND

BY APPOINTMENT TO H.R.H. THE PRINCE OF WALES SUPPLIER OF CAR CARE PRODUCTS AUTOGLYM, LETCHWORTH, ENGLAND

NO WET SANDING NO BUFFING MACHINE N O H O LO G R A M S

REFLOW

NO SWIRL MARKS N O P I G TA I L S NO RISK

Reflow is a breakthrough treatment that permanently removes etching marks and dull spots, caused by bird deposits, from car paintwork*.

Developed by Autoglym, Reflow is an innovative solution to one of the most common problems in car care – paintwork damage caused by bird deposits. Reflow is safe, easy to use and requires no specialist tools and takes just 30 minutes to effectively heal vehicle paintwork, leaving a perfect finish once again.

W AT E R A C T I VAT I O N

THERMAL TRANSFER

PA I N T H E A L I N G

Cold water is added to pack to activate, pack is placed on affected area and left for 30 minutes.

Pack heats surface to optimum temperature allowing paintwork to reflow and fill imperfections.

As pack cools, paintwork sets effectively healing affected area, pack is removed − etching disappears.

*Important note: Reflow works best on new or nearly new vehicles, with clear coat, that are up to three years old. If paintwork is aged, Reflow will significantly improve the appearance of the etching but might not remove it completely.

autoglym reflow 42 | CarDealerMag.co.uk

FOCUS ON Autoglym

autoglym.com

Autoglym Professional launches Instant Ceramic Coating The perfect, instant, hard-wearing shine • New Instant Ceramic Coating offers deep shine, excellent detergent resistance and durability • Simple to apply and can be applied to wet or dry cars • Long-lasting finish for up to three months • Ideal for outdoor forecourt display cars • Available at autoglym.com

W

hen it comes to making cars shine, Autoglym is already the expert. But when it comes to making that shine deeper, glossier and even longer lasting, sometimes a little bit more attention is needed to make the very best cars stand out.

That’s where Autoglym Professional’s new Instant Ceramic Coating comes in – a durable, high-gloss protective finish normally associated with ceramic coatings but with a straightforward, all-weather application method and an irresistible tropical scent.

Instant Ceramic Coating is a quick and easy way to add protection to vehicle paintwork. The ceramic hybrid formula quickly bonds to the paintwork with a simple spray and microfibre buff, offering up to three months of durable hydrophobic protection and the unmistakable deep gloss finish that makes sales vehicles – especially those in rich and darker colours – really stand out from the crowd.

Its formula provides ceramic-like layers of protection using a hybrid polymer-resin system, which provides a highly durable chemical resistant coating. Furthermore, to make life easier for sales staff, valeters and detailers, it can be applied in all weather conditions, even to a wet car, as a final level of gloss protection during a deep clean. Because of its longevity, you need only apply it every three months and the product will not be easily washed away during the routine forecourt wash.

‘Our new Instant Ceramic Coating is a high-quality professional product that’s ideal for perfectionists and high-end dealers,’ said Autoglym CEO Paul Caller.

‘It can make the difference between a well-presented car and an immaculately-presented one, and can add months of extra shine to forecourt stock.’

Instant Ceramic Coating is available to include contact-free home delivery either directly or through Autoglym’s franchise network.

Our new Instant Ceramic Coating is a high-quality professional product that’s ideal for perfectionists and high-end dealers.

Paul Caller

To find out more or to place an order, go to autoglym.com or call 01462 677766 | email enquiries@autoglym.com CarDealerMag.co.uk | 43

FEEDBACK TOP TWEETS

Dealers have had a lot to say about agency sales this month. Here’s what you thought.

Andy Goss @andygoss58

Agency models are hardly in the consumer interest. A clumsy attempt to cut distribution costs which has fundamental flaws.

MK @JonathanMartinK

What’s the role of a car salesperson any more? It’s not product knowledge, it’s about opening a car up, standing around while you browse it then turning into an accountant, baffling you with figures, then upselling every insurance product they can.

Bruce J Beaton @beaton_bruce

When the benchmark is set at average the trend could make the above average do enough to comply. Average drops. The lack of reward for excellence could create a ‘vanilla’ experience.

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

Why aren’t customers buying after test drives?

I’ve had a couple of viewings recently where they’ve made all the right noises pre-test drive and then decided ‘the boot isn’t as big as we imagined it would be’ or ‘we’re really after an auto with leather!’ etc.

I always ask if they are in a position to buy etc on the phone etc to try to weed out the messers and if they are ‘happy with the car’ when they ask for a test drive, but anyone can just say ‘yeah’ and still waste your time! Curious as to any tactics and/or questions you use to try to avoid these time-wasters/get them on the hook before committing to the test drive.

It’s the worst feeling when you’ve invested time and energy sucking up to them and listening to their life story, then they turn round with a pony excuse or say we’ll have a chat tonight and let you know…

Huggins I always start a viewing by getting them to look over the car and say if it’s not for them to just say so because there’s no point driving it. There’s no pressure sales here – quite the opposite! I quickly show them round, then show them under the bonnet, then let them do their own checks and only after that do I then tell them if they like the car they’re welcome to drive it.

However, I will add that ultimately you have to accept non-sales as part of the job. I also think it’s fair enough that someone may drive a car and simply not like it. Remember, unlike us, most private people only drive one car so have little idea if they’re going to like something different.

BHM

PICTURE OF THE MONTH

Is it a boat? Is it a car? It’s kind of both...

Bentley has designed a one-off yacht cabin for a customer to match the interior of their Continental GT. The colour theme of the 18-metre Contest 59 CS yacht’s interior uses Hotspur red leather with contrasting beige, while the panelling has Bentley’s signature diamond-in-diamond stitching. Nice!

I don’t think you’ll ever stop them, even if you charge a testdrive fee. You’ll never fully know a prospective customer’s motives when they arrive. There are so many reasons they could want to drive your car. A lot comes with experience but even the most experienced car sales staff don’t read every customer perfectly.

You’ve got to look at the positives. They came back and didn’t say the car drove poorly or had issues, the car got a run, had its brakes cleaned off and you probably had a proper look over the car beforehand and noticed something that you had forgotten needed looking at. The car will end up ready for the next prospective customer who hopefully will be more sensible BMX Bandits

I’m pretty brutal. My cars are kept inside and they ain’t going out and getting dirty unless there is a sale in it. I only do appointments and qualify all customers, no doubt upsetting a few.

At the viewing if they want to drive I ask outright if they are going to buy the car today. Anything other than a positive reply and I tell the customer that I’ll be happy to offer a test drive when they are in a position to buy. Also, any of the ‘we have others to see’ brigade don’t get a test drive… ‘Come back if you think this is the car for you, we will do an extended test drive.’

I couldn’t run a pitch or accommodate walk-ins. It would drive me mad.

Funnily enough, I have only had two arrive unannounced in the past 15 months and I made sales each time, despite being less than enthusiastic about them turning up without an appointment and making them wait until I had time to deal with them.

XFS

More and more of our readers are joining the debate – and it couldn’t be 44 | CarDealerMag.co.uk

Our website at CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

MOTs

Should I report this garage?

Just taken in an old 137,000-mile, 54-plate jalopy. Looked a straight thing. MOT in January and no advisories. Just went to put a ticket on yesterday and there is a massive list below. I hate how other dealers do this, as this trade is hard enough, but this really annoyed me and I’m tempted to report them.

There is no way this car should have passed in January. How many other cars are they putting through and endangering people? Should I just let this go or is reporting doing the right thing?

DSC01 Had this car come to us I would not hesitate to report.

Trade Survivor A friendly MOT could have been done by a connected party working in the testing station. The owner of the testing station who has probably invested a lot of money may not be involved. How many miles has it done since January and the previous MOT. You could contact the testing station and draw

their attention to it but I would not do any more in case of any reprisals.

Trade vet Don’t waste your phone call because they will not be interested.

We all know there are MOTs and there are MOTs. Sometimes, looking at the mileage since MOT and tax-end date can give you a clue there’s a tale, sometimes not.

All it’s failed on are a couple of bits of welding, the rest are advisories, so all you are really complaining about are the failures and I’m afraid holes in end-of-life cars can, and do, appear in the space of four to five months. Expecting a 16/17-year-old car to fly through an MOT suggests you’re a ‘glass half full’ type of person.

BHM

We’ve teamed up with Car Sales Memes to bring you a few of their funniest captions and slogans each month. Enjoy!

MOTs are very hit and miss, whether they are dodgy or not. You could take any car to 10 MOT stations and I guarantee you will get very different reports.

Beenaroundtheblock

Is it quiet or is it just me?

Only one call in 10 days for a viewing that was later cancelled. Is it just me?

Twerp

I’ve been quiet for a while...whereas my up-to-five-years-old mate has been having it off!

Frank Cannon Not sold anything in nearly two weeks with a stock of 15 cars. Phone has barely rung either.

Anyone else noticed an influx of people asking for delivery all over the country since the likes of Cazoo and Cinch have joined the market?

Lakeside All aware they have a week or so ‘to try it out’. I’ll leave that sort of customer to the big boys (like I’ll be doing free delivery, free trials, etc, on my older cars).

BHM Usually we’re quiet when everyone else is busy but we are powering through sales at the moment. Can’t keep up with prep. Think I’m down to 27 online when it should be closer to 40.

MarkTV

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

Search for Car Sales Memes on Facebook, Twitter or Instagram and give them a follow!

Car Dealer reserves the right to edit comments CarDealerMag.co.uk | 45

DASHBOARD

SUPPLIER NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE COUNTRY MANHEIM

Deal extended for another three years

MANHEIM has extended its remarketing partnership with Santander Consumer Finance for another three years.

The two companies have been working together now for 19 years and the new agreement will see 80 per cent of remarketing volume sold through the vehicle remarketing provider’s UK auction sites.

More than 20,000 vehicles will be sold at five venues over the 36-month period.

LAWGISTICS

Staff ‘can’t be forced to take coronavirus test’ DEALERS thinking of bringing in a coronavirus testing policy in the workplace can’t force their staff to undergo a test.

That’s according to automotive legal consultancy Lawgistics as the Delta variant first identified in India continues to spread. Legal adviser Kiril Moskovchuk said in its latest update that bosses had to consider various aspects before bringing in a testing programme. He added they couldn’t force employees to take a test but may issue specific and reasonable instructions to take it.

IVENDI

White Paper could aid digital transformation

MOTOR retail tech firm iVendi has produced a White Paper to help used car dealers complete their ‘digital transformations’.

It says Connected Retailing: Addressing the Challenges of Digital Transformation will make them fit for the post-pandemic markets. Chief executive James Tew said four key points had to be acknowledged and they were covered in detail in the paper. Download it at https://ivendi. com/whitepaper.

46 | CarDealerMag.co.uk

TECHNOLOGY

The past 18 months have been a rollercoaster for many, but as we look to the next 12 months there seems to be an eye of optimism.

Ben Garside p53

GUMTREE

GForces helps to drive Ad campaign to benefit first all-EV marketplace used car dealers

E-COMMERCE giant GForces is helping to drive the technology behind the UK’s first all-EV new and used car marketplace.

It is also integrating JustGoEV’s site with sales listings via its existing dealer customers – more than 3,000 EVs, plug-in hybrids and hybrids are already on there via a network of 600-plus dealers. It’s the brainchild of industry entrepreneurs Jack Woodgate and Joe Worsfold, with strategic support from Ben Caspary.

USED car dealers who advertise with eBay Motors Group are set to benefit from a major new campaign.

Online re-commerce and classifieds platform Gumtree is running Good Finds on TV, video on demand, YouTube and across social media, including Twitch and TikTok. The first of six adverts aired on May 22, with the rest – including one about Gumtree’s role as a go-to local car-buying platform – rolling out during May and June.

FEATURE.

A SELECTION OF STUFF TO BUY WITH YOUR LOCKDOWN SAVINGS!

Ring inverter

Worx jump starter

KEEPING all your major devices topped up can be tricky when you’re on the road, which is why an inverter such as the Ring RINVU150 can really help. It connects directly to your car’s battery, enabling a higher rate of charge, meaning it’s better suited to charging up larger devices – you can even charge a desktop PC. Ring also offers a version that plugs into your car’s cigarette lighter although that one can’t quite match the RINVU150’s power output.

MUCH like a flat tyre, a flat battery is a big inconvenience. It’s easy to do when you’re camping, too; leave a phone in to charge or an interior light on and you can drain the battery very quickly.

The Worx WX852 is a rechargeable jump starter capable of getting any petrol car under four litres or diesel car under two litres going again.

A USB socket means you can use it as a powerbank, too.

£79.99

£99.99

Ring inflator

£45.99

THERE are few things worse than being stuck with a flat tyre and no way of pumping it up. Fortunately, the RTC200 is a pretty simple solution. It’s a rechargeable tyre inflator capable of topping up a car wheel from flat in just three minutes.

It’ll also pump up bicycle tyres and airbeds, and has a light so you can see where you’re going in the dark. A USB socket means you can use it to top up your smartphone batteries as well.

Lifesaver Jerrycan

£249.99

THE Lifesaver Jerrycan might look like it’s better served at transporting petrol but that’s far from what it’s about.

It’s actually a water storage and purification system all in one, holding up to 18.5 litres of water at any one time. It’s ideal for camping or for when you’re travelling further afield, and is robust enough to deal with all the Car dealer new strip ad Revised

4/4/18

12:01

Page 1

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

Fixed cost buyers premium User friendly website & stock locator. On-line bidding

Professional Vehicle Auctions for Professional Vendors & Buyers

www.fleetauctiongroup.com

bumps and scrapes that come with an adventure.

The charcoal filtration system removes bacteria, viruses and parasites from any type of water, meaning you can fill it up from pretty much any source and it’ll turn it into clean, clear drinking water.

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 CarDealerMag.co.uk | 47

DASHBOARD

BUSINESS NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE UK FRAUD

Bogus insurance claims rocket by 10 per cent

MORE than 12,000 fraudulent claims collectively worth more than £113m were uncovered by insurance giant Aviva last year.

It said the proportion of general insurance claims denied because of fraud grew by 10 per cent in 2020, compared with 2019.

Whiplash fraud accounted for 60 per cent of false claims detected

by Aviva.

ACTIVITY

Takeovers and mergers hit pre-pandemic high THE total number of mergers and acquisitions involving UK-based companies in March hit their highest level since before the pandemic, according to latest data.

The Office for National Statistics said there were 196 in March this year – the most since March 2020, when 196 deals were struck.

It added that the first three months of the year, overseas companies spent £6.1bn buying up British firms, compared with UK companies spending £2.5bn on foreign businesses

CLIMATE CHANGE

Lenders and insurers to face stress test

HOUSING

Demand and supply gap ‘widest since 2013’ THE gap between the number of house hunters coming to market and the choice of properties for sale is at its widest since 2013, according to surveyors.

That mismatch between buyers and sellers is putting an upward pressure on house prices.

A net balance of 32 per cent of property professionals saw an increase in new buyer inquiries in May, said the Royal Institution of Chartered Surveyors. But the supply of homes fell further, with a net balance of 21 per cent of surveyors reporting a fall in the number of new property listings.

THE Bank of England has unveiled its first-ever stress test to scrutinise the resilience of Britain’s biggest banks and insurers against climate change risks over the next 30 years.

The test will look at the two key risks facing the sector from climate change – the impact of the move to a net zero economy as well as the physical effects of global warming, such as storms, flooding and fires.

WE HERE FOR FORYOU YOU WE ARE HERE 48 | CarDealerMag.co.uk

DATA

Lockdown easing sees speedy economic growth

MORE THAN JUST A

FINANCE COMPANY THE easing of lockdown restrictions in April helped the UK economy grow at its fastest rate since July 2020, according to latest data.

The Office for National Statistics said gross domestic product – a measure of economic growth – was up 2.3 per cent in April, although it remained below prepandemic levels. In July 2020 the economy grew by 7.3 per cent. It would have been higher were it not for a slowdown in the construction sector .

TALK TO US TODAY. 0115 946 6260 enquiries@frfl.co.uk frfl.co.uk/car

EMISSIONS

‘Commit to net zero or be left behind’ BUSINESSES must commit to tackling climate change and those that do not move fast enough are in danger of being left behind.

That’s according to Cop26 president-designate Alok Sharma, who said that while the government was determined to ‘build back greener’ in the wake of the pandemic, it needed the support of business to do so. He urged firms to commit to reaching net-zero emissions by 2050 at the latest.

just a phone call away.

CarDealerMag.co.uk | 49

DASHBOARD

INDUSTRY VIEWS NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS CAP HPI

These are crazy times for used car price rises

HEAD of valuations Derren Martin, told Car Dealer in an exclusive video that the current used car price rises have ‘never been seen before’.

He said: ‘We’ve not seen anything like it and have been moving cars up in value every day. It is unbelievable out there at the moment.

‘We have not seen anything like this before – the nearest comparison would be the recovery of 2009, which pre-dates me.

‘Certainly, in my time here we have not seen anything like it.

‘This is ridiculous and it’s unheard of. These are crazy times.’

LAWGISTICS

Court cases are on the up and it will get worse BOSS Joel Combes said the motor trade legal firm was now seeing 20 per cent more court cases than a year ago.

‘It might feel like we’re at the end of the pandemic but I think we’re at the start of a new recession. I don’t think we’ve yet felt it, it’s just about to happen.

‘We’ve seen an increase in court cases already during the pandemic and I’m afraid I think that’s going to get worse. We’re now handling 20 per cent more court cases at the moment compared to this time last year.

‘Once the consumer feels the pinch, that can only go up. That would be my worry.’

Combes says dealers have to get their paperwork and compliance right to ensure they don’t fall foul of similar court cases. ‘GDPR needs to be right and contracts have to be right with employees, because although it feels like we’re at the end, we’re at the start,’ he said.

T S A C D PO Driven by

CAZANA

THIS MONTH’S HIGHLIGHTS CLICK HERE TO LISTEN TO MORE CAR DEALER PODCASTS 50 | CarDealerMag.co.uk

You shouldn’t always raise prices even if told to DIRECTOR of insight Rupert Pontin said that while there was ‘no doubt’ they were seeing an increase in price, there wasn’t the ‘huge jump upward’ others had seen.

‘We do a lot of work with a lot of large dealer groups in the UK, where we help them to understand speed churn of their vehicles, how their vehicles are affected on a day-by-day basis and how it relates to the rest of the marketplace.

‘A comment that tells you to move your old stock up in price is an interesting comment, but the reality is that if that stock at that price still hasn’t sold then it still isn’t priced right. Putting it up isn’t necessarily going to sell that vehicle.’

The latest from our fleet.

Long-termers: p59

Watch our Car Dealer Live broadcasts as they go out or catch up on any that you’ve missed at: cardealermagazine.co.uk/live OTT

TRADE TO TRADE UNDERWRITING

We all need the human touch despite digital

Germ of an idea grew to become a winner

MARSHALL MOTOR GROUP WITH dealers and consumers forced to embrace digital communication over the past 12 months, surely the days of contact centres manned by skilled staff are over?

‘Absolutely not,’ said managing director Arran Duffy.

He explained that now more than ever there was a need for the personal touch.

‘I’m all for technology – I’m 30 years of age!’ he said.

‘I’ve got the latest smartphones, the latest computers and the latest fridge, but customers still like that personal touch.’

Some people we were selling cars to six months ago, we would offer them their money back.

Tom Jaconelli Romans International

We’re proud to repay the support CEO Daksh Gupta spoke about the business’s results, revealing that he’d be repaying furlough and retail rates support received in 2021.

‘Our trading performance, strong financial position and commitment to our corporate responsibilities has led to our decision to repay all CJRS and non-essential retail sector grants received in this financial year,’ he said.

‘Given the market tailwinds from which both the group and the sector as a whole have benefited, we believe repayment to be the appropriate and responsible action to take.

‘We remain extremely grateful for the support provided by the government to the retail sector throughout the ongoing pandemic and we are very proud that we are able to repay this support.’

Revenue was up 33 per cent on a like-for-like basis.

FOUNDERS Ben Mitchell and James Vaughan explained how the germ of an idea had led to a hugely successful and much-loved business being created – and one that has won a series of awards.

‘We were talking one evening after a hard day at work and agreed we really struggled to get rid of part-exchanges as well as sourcing stock,’ said Vaughan. ‘So we decided to set up a small, local community of traders who could quickly, simply and safely trade stock.’

Its Facebook group now has more than 10,000 members.

ROMANS INTERNATIONAL

We’ve been buying back cars for their sale price TOM Jaconelli told how, in some cases, the dealership was buying back cars for the same price it had sold them for last October and November.

In some cases, his team were asking: ‘How did we sell that car so cheap?’

He said: ‘A good example would be a 991 GT3, 2017 or 2018,’ Jaconelli said.

‘We were selling them in October or November. A low-mileage, good-spec car was selling for around £120,000 to £125,000. Now, they’re closer to £140,000.

‘Some people we were selling cars to six months ago, we would offer them their money back. It’s pretty unheard of in such a short time frame.’

CarDealerMag.co.uk | 51

DASHBOARD

FINANCE NEWS CONSUMER DUTY

Watchdog wants stronger protections for customers

by John Bowman john@blackballmedia.co.uk

F

inancial firms will have to put themselves in customers’ shoes and make sure they are acting in their best interests under proposals from the City regulator. The Financial Conduct Authority has outlined plans for a new consumer duty, setting higher expectations for firms’ standards of care towards consumers.

It said: ‘We want firms to actively put consumers at the heart of their business.’

For many firms, this will require a significant shift in culture and behaviour, according to the regulator. The duty would apply to a wide range of financial sectors, including credit, banking, mortgages, investments, pensions, insurance and payment services.

It would help consumers to consistently receive products and services that are fit for purpose, fair value and clearly understandable.

The FCA has also previously found issues with products having features that take advantage of people’s behavioural biases, for example, a tendency among some consumers to over-borrow and under-pay in the credit card market. The regulator also said that some financial products may have charging structures that were difficult to understand or deterred customers from switching.

The wording for a ‘consumer principle’ being consulted on as part of the plans is: ‘A firm must act in the best interests of retail clients’ or: ‘A firm must act to deliver good outcomes for retail clients.’

In their behaviour, firms will be expected to take all reasonable steps to avoid foreseeable harm to customers, enable customers to pursue their financial objectives and act in good faith. The new requirements will have an impact on firms’ communications and customer services. Businesses will also have to show the benefits of their products and services are reasonable relative to their price. Firms would have to follow the new duty or face regulatory action, including enforcement investigations. The consultation is open for comment until July 31. The FCA expects to consult again on proposed rule changes by the end of 2021 and make any new rules by the end of July 2022.

RECORD VOLUMES

Market continues to soar for top-end cars SUPERCARS, sports cars and luxury vehicles are continuing to be in huge demand, with leading finance provider JBR Capital reporting record volumes of lending on models from Aston Martin, Ferrari, McLaren, Porsche and RollsRoyce in recent weeks.

In May, Porsche again proved to be JBR Capital’s most-financed brand, but whereas the all-electric Taycan generated the highest level of proposals in March, it was the perennial 911 sports car that was most popular, alongside the Macan and Cayenne.

In addition, supercars such as Ferrari’s 458 and luxury SUVs such as the Rolls-Royce Cullinan have been extremely hot property.

JBR Capital founder and chief commercial officer Darren Selig said: ‘With customers unable to take expensive overseas holidays, many are looking to treat themselves.

‘Plus, many are fortunate enough to have more money in their pockets through lockdown savings too.

‘Looking further ahead to the summer months, we believe this trend will only continue.’

WE HERE FOR FORYOU YOU WE ARE HERE 52 | CarDealerMag.co.uk

IN ASSOCIATION WITH

TIME IS MONEY BEN GARSIDE

A MONTHLY LOOK AT THE WORLD OF AUTOMOTIVE FINANCE AND MARKETING

People will still need help as we return to some normality

T

Ben Garside is marketing manager for First Response.

Call him on 07817 518739 or email ben.garside@frfl.co.uk

he past 18 months have been a rollercoaster for many companies and consumers alike, but as we look to the next 12 months there seems to be an eye of optimism.

Many of the people that I have spoken to and the articles I have recently read are showing positivity towards the economic outlook for H2 2021 and H1 2022.

There are still many hurdles for us all to overcome first, for example the withdrawal of the government support scheme. This will likely raise unemployment levels that are unfortunately still high compared with pre-pandemic levels (currently sitting at 4.8 per cent of the UK population).

As of March 31, the furlough scheme was supporting approximately 4.2 million people in the UK, and while many may have already gone back to work, or are likely to reclaim their positions, there will surely be a high number of redundancies.

There are still new variants bringing further waves of the virus and somewhat slowing down the economic recovery. However, as of June 7, 60.5 per cent of the population have had their first dose and 42.8 per cent have been fully vaccinated – a great accomplishment by the NHS. Looking into our market bears positives, too. For instance, the Finance and Leasing Association (FLA) recently shared its latest motor finance statistics and the data shows that the consumer motor finance market grew by 1,276 per cent in new business volumes in April 2021 versus last year when the UK was in a full nationwide lockdown.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘Pent-up demand and an improvement in consumer confidence are expected to contribute to a strong recovery during the second half of 2021, with our latest research suggesting that consumer car finance new business by value will grow by 19 per cent in 2021 as a whole, and by a further 13 per cent in 2022.’

Looking internally at First Response, my team have been focused on sharing support and awareness messages for the majority of the past 14 months, helping both motor traders and our customer base through the tough times.

Recently however, we have started to make changes in our messaging and the overriding approach to our marketing output, getting back to a pre-pandemic approach.

As such, we are seeing significant improvements in our marketing results, more engagement, more conversions equalling more business, and even achieving some personal best results.

As people are finding their way back to some form of normality, we need to be ready to service their needs, while not forgetting those who continue to need help and support.

There are still new variants bringing further waves of the virus and somewhat slowing down the economic recovery.

just a phone call away.

CarDealerMag.co.uk | 53

DATA FILE

STATISTICS

SMMT

SALES DATA

THE LATEST REGISTRATION FIGURES

MAY/YEAR TO DATE

TOP

ON COURSE

Sales drop on 2019 total ‘is as good as can be expected’

THE CARS SOLD IN MAY 2021

by James Batchelor james.batchelor@blackballmedia.co.uk

N

ew car registrations in May 2021 were down nearly 15 per cent on two years before, latest official figures reveal.

Data published on June 4 by the Society of Motor Manufacturers and Traders (SMMT) shows 156,737 cars were registered – a near eightfold increase on the same month last year. However, as car showrooms were physically shut in May 2020, a more representative comparison is with May 2019, showing them to have dropped by 14.7 per cent, while they were down by 13.2 per cent on a 10-year May average.

A total of 1.86m cars are predicted to be registered by the end of the year, and with May adding to the 723,845 already achieved so far this year, the SMMT said the industry was ‘in line’ to meet the prediction.

Fleet registrations grew more than twice as quickly as private purchases in May. Large fleets accounted for 50.7 per cent of all new vehicles hitting the road, which demonstrated improving business confidence versus the same month last year, said the SMMT. In terms of segments, dual-purpose vehicles saw a small decline in market share in the month – down to 26.7 per cent and leapfrogged by lower medium cars which rose to 27.8 per cent. Superminis remained Britain’s most popular car choice, with a 31.1 per cent share.

Battery-electric vehicle (BEV) market share declined from 12 per cent a year ago to 8.4 per cent, although May 2020’s performance was distorted by lockdowns.

Total registrations for 2021 sit at 296,448 fewer units – down 29.1 per cent – than the average recorded across January to May during the past decade.

Mike Hawes, SMMT chief executive, said: ‘With dealerships back open and a brighter, sunnier economic outlook, May’s registrations are as good as could be reasonably expected.

Increased business confidence is driving the recovery.

‘Demand for electrified vehicles is helping encourage people into showrooms, but for these technologies to surpass their fossil-fuelled equivalents, a long-term strategy for market transition and infrastructure investment is required.’

Model

Regs

Volkswagen Golf

4,181

Vauxhall Corsa

3,643

Volkswagen Polo

3,518

Mercedes-Benz A-Class

3,313

Ford Puma

3,158

Kia Sportage

2,956

Ford Fiesta

2,794

Toyota Yaris

2,578

Mini

2,561

Audi A3

2,489

VW Golf rises to top of popularity league as the Ford Fiesta falters THE Volkswagen Golf took the title of May’s most popular new car, new figures show.

The SMMT said VW shifted 4,181 Golfs during the month, comfortably ahead of the second-placed Vauxhall Corsa, which recorded 3,643 registrations.

Meanwhile, the Polo finished in third

place in the top-sellers chart with 3,518 cars to its name.

The Fiesta – once the best-selling car every month for the past few years – came seventh with 2,794 units and could well be the victim of the supply problems affecting the new car industry, What Car? editorial

chief Jim Holder tweeted. Family-favourite Ford Focus, meanwhile, was nowhere to be seen in the top 10 chart.

The Fiesta was followed by the Toyota Yaris at 2,578 and Mini narrowly behind that at 2,561, while the Audi A3 was tenth, with 2,489 registrations to its name.

Click here to see our top 10 rolling sales chart for May 2020 to May 2021 54 | CarDealerMag.co.uk

New records broken LCV news: p56

+292%

+2.5k%

PORSCHE

SUZUKI

Figures supplied by SMMT

May 2021 Marque

2021

May 2020

% market share

2020

Year-to-date

% market share

% change

2021

% market share

2020

% market share

% change

Abarth

234

0.15

56

0.28

317.86

934

0.13

702

0.14

33.05

Alfa Romeo

139

0.09

45

0.22

208.89

554

0.08

706

0.14

-21.53

19

0.01

3

0.01

533.33

77

0.01

41

0.01

87.80

12,839

8.19

1,501

7.41

755.36

53,396

7.38

32,306

6.36

65.28 22.84

Alpine Audi Bentley

103

0.07

34

0.17

202.94

527

0.07

429

0.08

BMW

10,396

6.63

1,472

7.27

606.25

51,097

7.06

35,945

7.07

42.15

Citroen

2,400

1.53

342

1.69

601.75

13,646

1.89

9,550

1.88

42.89

Cupra

644

0.41

0

0.00

0.00

2,096

0.29

0

0.00

0.00

Dacia

1,414

0.90

269

1.33

425.65

5,826

0.80

5,340

1.05

9.10

DS

207

0.13

47

0.23

340.43

669

0.09

765

0.15

-12.55

Fiat

2,105

1.34

276

1.36

662.68

6,589

0.91

6,510

1.28

1.21

Ford

11,433

7.29

2,111

10.43

441.59

60,464

8.35

46,252

9.10

30.73

Honda

2,662

1.70

195

0.96

1,265.13

9,413

1.30

9,822

1.93

-4.16

Hyundai

6,228

3.97

241

1.19

2,484.23

23,608

3.26

14,058

2.77

67.93

Jaguar

2,364

1.51

476

2.35

396.64

9,485

1.31

8,839

1.74

7.31

537

0.34

82

0.40

554.88

1,653

0.23

1,095

0.22

50.96

Kia

8,207

5.24

1,018

5.03

706.19

36,101

4.99

23,469

4.62

53.82

Land Rover

5,494

3.51

779

3.85

605.26

32,419

4.48

20,933

4.12

54.87

Lexus

1,266

0.81

136

0.67

830.88

5,634

0.78

4,612

0.91

22.16

58

0.04

10

0.05

480.00

268

0.04

189

0.04

41.80

2,611

1.67

105

0.52

2,386.67

10,156

1.40

7,282

1.43

39.47

Mercedes-Benz

9,515

6.07

2,002

9.89

375.27

49,883

6.89

36,114

7.11

38.13

MG

2,453

1.57

177

0.87

1,285.88

10,760

1.49

5,687

1.12

89.20

Mini

3,563

2.27

319

1.58

1,016.93

17,473

2.41

13,355

2.63

30.83

Mitsubishi

1,001

0.64

69

0.34

1,350.72

3,545

0.49

3,937

0.77

-9.96

Nissan

4,639

2.96

556

2.75

734.35

30,761

4.25

24,225

4.77

26.98

Peugeot

6,058

3.87

1,040

5.14

482.50

28,519

3.94

16,282

3.20

75.16

Polestar

239

0.15

0

0.00

0.00

1,479

0.20

0

0.00

0.00

Porsche

921

0.59

235

1.16

291.91

5,064

0.70

3,017

0.59

67.85

Renault

2,345

1.50

597

2.95

292.80

12,772

1.76

10,549

2.08

21.07

Jeep

Maserati Mazda

Seat

4,808

3.07

343

1.69

1,301.75

20,412

2.82

16,177

3.18

26.18

Skoda

6,093

3.89

333

1.64

1,729.73

26,169

3.62

17,840

3.51

46.69

Smart

148

0.09

10

0.05

1,380.00

682

0.09

280

0.06

143.57

SsangYong

120

0.08

30

0.15

300.00

464

0.06

510

0.10

-9.02

Subaru

158

0.10

8

0.04

1,875.00

596

0.08

262

0.05

127.48

Suzuki

2,664

1.70

100

0.49

2,564.00

7,882

1.09

6,382

1.26

23.50

Toyota

8,420

5.37

626

3.09

1,245.05

40,095

5.54

27,651

5.44

45.00

Vauxhall

9,516

6.07

1,152

5.69

726.04

43,314

5.98

28,472

5.60

52.13

Volkswagen

16,413

10.47

1,197

5.91

1,271.18

65,955

9.11

46,502

9.15

41.83

Volvo

4,056

2.59

1,167

5.76

247.56

22,341

3.09

13,324

2.62

67.67

Other British

236

0.15

49

0.24

381.63

1,058

0.15

720

0.14

46.94

Other imports

2,011

1.28

1,039

5.13

93.55

10,009

1.38

7,994

1.57

25.21

156,737

100

20,247

100

674.12

723,845

100

508,125

100

42.45

Total

CarDealerMag.co.uk | 55

DATA FILE

GROWTH

LCV NEWS

New records broken thanks to soaring demand

by Rebecca Chaplin rebecca@blackballmedia.co.uk THE commercial vehicle market is continuing to see incredible demand, breaking new van sales records in May. Registrations were up 4.7 per cent on the pre-pandemic five-year average to 29,354 in May 2021 – 1,313 vehicles more, according to SMMT data released on June 4.

Compared with May 2020, sales were up by 289.3 per cent.

With 157,150 vans registered so far in 2021, performance for the year to date is the highest on record.

The latest figure is almost double what it was in 2020 at 99.3 per cent up.

Registrations grew across all vehicle segments.

REGISTRATIONS OF NEW COMMERCIAL VEHICLES LESS THAN 3.5 TONNES Marque

Ford Volkswagen Vauxhall Citroen Peugeot Mercedes Renault Nissan Toyota Fiat Isuzu IVECO Land Rover Mitsubishi MAN Renault Trucks Maxus Isuzu Trucks SsangYong LEVC Fuso LDV Total light CV

Figures supplied by SMMT

May 2021

2021

May 2020

2020

9,215 3,453 2,892

% market share 31.39 11.76 9.85

2,582

8.80

569

7.55

353.78

11,750

7.48

6,208

7.87

89.27

2,255 2,149 1,419 1,189 942 848 501 447 369 309 251 200 147 97 37 36 16 0 29,354

7.68 7.32 4.83 4.05 3.21 2.89 1.71 1.52 1.26 1.05 0.86 0.68 0.50 0.33 0.13 0.12 0.05 0.00 100.00

636 1,394 229 237 72 147 184 118 25 62 108 41 0 48 19 0 5 51 7,541

8.43 18.49 3.04 3.14 0.95 1.95 2.44 1.56 0.33 0.82 1.43 0.54 0.00 0.64 0.25 0.00 0.07 0.68 100.00

254.56 54.16 519.65 401.69 1,208.33 476.87 172.28 278.81 1,376.00 398.39 132.41 387.80 0.00 102.08 94.74 0.00 220.00 0.00 289.26

12,925 12,505 7,139 6,476 6,392 3,947 1,539 1,680 1,645 2,463 1,420 992 504 461 189 73 108 68 157,150

8.22 7.96 4.54 4.12 4.07 2.51 0.98 1.07 1.05 1.57 0.90 0.63 0.32 0.29 0.12 0.05 0.07 0.04 100.00

7,910 8,016 2,705 3,044 2,467 2,096 1,354 966 404 1,558 463 395 0 326 126 0 62 286 78,835

10.03 10.17 3.43 3.86 3.13 2.66 1.72 1.23 0.51 1.98 0.59 0.50 0.00 0.41 0.16 0.00 0.08 0.36 100.00

63.40 56.00 163.92 112.75 159.10 88.31 13.66 73.91 307.18 58.09 206.70 151.14 0.00 41.41 50.00 0.00 74.19 -76.22 99.34

2,007 625 964

% market share 26.61 8.29 12.78

% change

359.14 452.48 200.00

2021

Year-to-date

53,119 16,342 15,413

% market share 33.80 10.40 9.81

2020

24,841 7,587 8,021

REGISTRATIONS OF NEW COMMERCIAL VEHICLES 3.5 TONNES TO 6.0 TONNES Marque

Fiat Peugeot Ford Mercedes Volkswagen Iveco Renault Trucks MAN Citroen Other imports Isuzu Trucks Renault Vauxhall Total heavy CV

May 2021

2021

169 139 121 95 20 19 18 12 7 2 0 0 0 602

56 | CarDealerMag.co.uk

% market share

28.07 23.09 20.10 15.78 3.32 3.16 2.99 1.99 1.16 0.33 0.00 0.00 0.00 100.00

May 2020

2020

14 26 12 18 3 19 0 0 1 0 0 1 0 94

% market share

% change

14.89 27.66 12.77 19.15 3.19 20.21 0.00 0.00 1.06 0.00 0.00 1.06 0.00 100.00

1,107.14 434.62 908.33 427.78 566.67 0.00 0.00 0.00 600.00 0.00 0.00 0.00 0.00 540.43

2021

685 409 316 587 133 126 65 59 25 17 7 3 2 2,434

28.14 16.80 12.98 24.12 5.46 5.18 2.67 2.42 1.03 0.70 0.29 0.12 0.08 100.00

% change

113.84 115.39 92.16

Figures supplied by SMMT

Year-to-date

% market share

% market share 31.51 9.62 10.17

2020

463 487 438 631 56 63 0 24 85 10 2 3 3 2,265

% market share

% change

20.44 21.50 19.34 27.86 2.47 2.78 0.00 1.06 3.75 0.44 0.09 0.13 0.13 100.00

47.95 -16.02 -27.85 -6.97 137.50 100.00 0.00 145.83 -70.59 70.00 250.00 0.00 -33.33 7.46

CarDealerMag.co.uk | 57

DATA FILE

SUPPLIERS GUIDE

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LONG-TERMERS

FORD FOCUS ST ESTATE THE KNOWLEDGE Ford Focus ST Estate

James Baggott attempts to climb the two highest peaks in Wales on the same day – and takes his Focus ST along for the ride.

I

t sometimes takes a bit of time to gel with a new car. Controls are in different places, there are quirks to the multimedia system you need to get used to – even the seats can feel different. But when it comes to our long-term Ford Focus ST, I’ve instantly felt at home, probably helped by the fact I’m a bit of a fast Ford fan.

The Focus arrived at the start of the third lockdown and, as a result of our enforced winter hibernation, by the start of May it was still hovering just above delivery mileage. With that in mind, and the world opening up once more, I planned a trip to visit a friend in Wales.

The Focus easily swallowed my mountain bike with the seats down, and a change of clothes or two and I headed for the glorious asphalt of the Welsh valleys.

My friend Dan and I fancied a bit of a challenge too, so we decided to climb the highest peaks in south and north Wales on the same day – Pen y Fan and Snowdon.

There’s around 120 miles or so between the two across the middle of Wales, so not only would we be punishing our calves, but the ST would get a spirited run as well.

We started early for the hike up Pen y Fan and reached the summit before breakfast at 7am. An hour or so later, we were back down again and hitting the stunning, winding roads that bisect the country. The A470 heading north is a glorious stretch that twists and turns across breathtaking countryside.

The ST’s pace and surging torque was a delight. The six-speed gearbox rifles through the ratios with accuracy and there really is nothing like stirring a manual on an engaging road.

As we turned on to the B4158 that rises up past Clywedog Reservoir I was truly in the groove. While the ST is fun around town, it excels on roads like this. It’s seriously rapid and gives you bundles of confidence to chuck it around. In Sport mode it really picks up its skirt.

It feels meaner – grimaces even – as it snarls its way around with even more purpose.

We got to Snowdon in, well, rapid time and started our ascent. Unfortunately, this didn’t go quite as smoothly as the drive over and we took a wrong turn on the way up.

If you haven’t heard of Crib Goch, it’s a knife-edged ridge back around to the top of Snowdon that has a drop of a few thousand feet on either side. At one point, Dan and I were edging our way along it like the top of a wall, fearing for our lives and we thanked our lucky stars we made it down safely.

With the mileage on the Ford now approaching 3,000 there are a few problems to report.

Occasionally, it warns of intermittent faults on the dashboard which then mysteriously disappear. The collision avoidance system can be infuriating as it flashes angrily about many impending crashes that simply were never going to happen, and CarPlay only seems to work when it wants to – which is rarely.

My biggest issue, though, is with the automatic handbrake. Most of the time it turns it on with little hassle when you park up, but occasionally it decides not to. There’s no rhyme or reason to when it might turn itself off, and you can imagine how incredibly dangerous that can be if it’s not spotted before you get out. I’m going to report it to Ford because something isn’t quite right. Overall, though, my time with the ST is turning out to be very pleasant.

While those gripes are frustrating, the positives far outweigh them, and the fact it’s just so good to drive puts a smile on my face every time I get behind the wheel. The Welsh trip was proof that this Focus isn’t really designed to be confined to town, though – it needs the open road to really show you what it’s good at, and I’m glad Wales helped do just that.

Price (as tested): £35,860 Engine: 2.3-litre turbocharged petrol Power: 276bhp Torque: 420Nm 0-60mph: 5.8 seconds Max speed: 155mph Emissions: 184g/km CO2 Fuel economy: 35.3mpg Mileage: 2,678

This month’s highlight: Enjoying the chance to take the ST for a blast through the Welsh valleys – and an interesting climb up Snowdon!

OTHER CARS WE’RE DRIVING

Mazda MX-30 Mileage: 1,000 We’ve taken delivery of Mazda’s latest EV and we’re looking forward to stretching its legs.

Skoda Superb iV Mileage: 4,108

At last, the Superb gets to show off its long-distance credentials with a trip to Leeds.

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