Car Dealer Magazine: Issue 101 by Blackball Media

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MAZDA MX-5 CELEBRATION

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EDITORIAL PRODUCTION EDITOR Dave Brown

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HEAD OF DESIGN Graeme Windell

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FEATURES EDITOR Sophie Williamson-Stothert

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SENIOR STAFF WRITER Andrew Evans

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STAFF WRITER Jack Evans

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JUNIOR STAFF WRITER Laura Thomson

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ADVERTISING ACCOUNT MANAGER Michelle Searle

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ACCOUNT MANAGER Jon Hickey

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

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Tim Naylor, Nick King, Nigel Swan, Jon Reay, Jonny Fleetwood, John Bowman, Ben Garside, Big Mike, Becca Chaplin, Jack Evans, Jack Healy, Chris Jervis, Darren Cassey.

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that was a surprise, WELCOME. WELL wasn’t it? And I’m not talking about our esteemed leader actually putting pen to paper and writing some features for the 100th edition of Car Dealer last month! In case you haven’t guessed, I’m referring to the Brexit vote which came as a pretty big shock. In my case, the last headline I saw online on the evening of June 23 was that Nigel Farage had conceded defeat after polling had closed, so I definitely wasn’t expecting the news the following morning that we had voted to leave the EU. Many observers are reserving judgment on whether the long-term effects of the historic vote will be beneficial or harmful – but what isn’t in any doubt is that the uncertainty we’re now dealing with is doing no-one any favours. As you might expect, the B-word crops up repeatedly in this issue of Car Dealer, with many of our regular columnists giving their thoughts on the issue. There was a lively discussion on our forum in the aftermath of the vote, which we have included in our feedback section on pages 6 and 7. It’s worth a read. IT’S NOT all doom and gloom, though: during perhaps the first sunny bit of weather to hit our shores this year, we set off for North Wales for something of a Mazda MX-5 extravaganza. We borrowed one of each generation dating all the way back to the Mk1 of 1989 to see just how far the Japanese maker’s most iconic car has come over the years. Although it’s fair to say that things have moved on dramatically in the last three decades, the DNA the four models share is clear to see... And since we enjoyed captioning candid snaps of senior staff writer Andrew Evans so much in our 100th issue, we decided to send him out of the office once again – this time trusting him to sell a few MX-5s himself at our local dealership. Turn to p54 to see how he got on.

IT’S been a busy few weeks for new car launches, and our intrepid team has been off testing a trio of new crossovers – ranging from the luxurious Mercedes-Benz GLC Coupe, all the way down to the cheap-as-chips MG GS. Could Birmingham’s Qashqai rival be exactly what the AngloChinese maker has needed? Head to page 40 to find out. AS YOU might have spotted in our last issue, CEO James Baggott is on a mission to trade his way up the motoring ladder in under 100 days, with all the proceeds going to Great Ormond Street Hospital. A busy few weeks at Baize HQ (mostly spent decorating his new office, we can reveal) has meant that progress hasn’t been quite so swift this month, but the pot of money has grown nonetheless, and there’s a new set of wheels waiting to be moved onwards and upwards. Head to p56 to find out how he’s been getting on. IN THESE days of increasingly squeezed margins, it’s more important than ever to make use of any aftersales opportunities that come your way – and what better way to add a little extra profit than with an extended warranty? We’ve taken a look across the industry and chatted to some of our favourite companies – head to pages 59-65 to read all about what they have to offer. FINALLY – and although our famous pre-Christmas awards ceremony might seem months away – it’s not too early to secure your place at this year’s Used Car Awards. You’ll find a booklet included with this mag outlining how to book tickets and tables – there really is no time to lose ! Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

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INSIDE. ISSUE 101 I AUGUST 2016

Dashboard Feedback Festival of Speed special Volvo dealership’s new look Automotive Challenge Cup Brexit: The aftermath

We are sailing... teams from all areas of the automotive industry take to the water for the Automotive Challenge Cup in aid of BEN

Trade Plates TV

Around the UK Finance Big Mike

Forecourt After that shocking Brexit vote, what now?

New director of Volkswagen Passenger Cars is appointed

‘‘

MG GS James Fossdyke grabs the keys to a new long termer

Audi Q2 Volvo V90 Mercedes-Benz GLC Coupe

It’s clear the vote has caused uncertainty. And that leads consumers to stop spending.

Features

Mazda MX-5: The fab four

Trading Up charity challenge

90 Data File

James Baggott

Car Dealer Club The Statistics Taking Stock Auctions Market Insight

Suppliers’ Guide Key Notes with Traka Hot Property Long-termers Volvo’s new V90 is hailed as being stylish, safe and spacious... but do we agree?

James Baggott

06 12 14 20 22 26 28 32 37

40 42 44 46 48 56

70 72 75 76 79 82 84 86 87 90

OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique. This year’s ceremony takes place on July 28 and there will be full coverage in issue 102.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. To get involved in this year’s event, call 023 9252 2434.

If you missed it, you missed out! CDX16 took place on May 24 – and we’re already making plans for next year’s event. We’ve set the date! It will take place on May 23, 2017. CarDealerMag.co.uk | 05

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

Our website at CarDealerMag.co.uk

Brexit: Is it good or There will no doubt be a great deal to understand and get our heads around [in relation to Brexit]. However, what is your immediate ‘gut’ feeling in terms of the impact on the new and used car market in the short and long term? Philip Nothard I feel sick. I’m pretty sure it’s not going to have a positive effect on the job in the short term. Longer term, who knows, but personally I don’t see a land of milk and honey. sparky In the short term, the uncertainty that has killed sales in the run-up will continue now that Cameron has resigned and beyond that until we know if our new PM will serve until 2020 or seek her own mandate. It’s a disaster! In terms of Brexit itself, I predict that Toyota, Honda and Nissan will close their UK plants and move them to Europe. We’re about to enter a self-inflicted recession. The luxury market will do okay as the cost to change comes down but the bread and butter market is pretty much screwed. I think I’m out and back to taking someone else’s shilling. Rosemotors What makes you think those three will go to the EU? We still have JLR here in the UK, although they are setting up a factory in India. Remember – the EU gave money to Ford to move Transit production from Southampton to Turkey, Peugeot’s Ryton plant was moved by EU funding and there are a number of other British manufacturers that have moved because of EU funding. Steve92 What the campaign failed to show was the positives and negatives of being with the EU. Everything was either centred around immigration or scaring people into financial panic. The stock market drop was always going to happen. I have no problem in saying I voted out. I’m aware of what the consequences might be. I

Picture of the month Photoshoots can be tiring affairs, or even, as our Laura would argue, ‘a bit of a bore’. It’s not all tyre-squealing driving, you see; there’s a lot of standing around. Our recent road trip to Denbigh in North Wales, at times, resembled a school trip – with those in ‘positions of authority’ trying to keep a bunch of naughty schoolchildren in line. At one point, the younger members of the team decided to see who could fit in the boot of their MX-5. Laura emerged the winner, with Sophie a close second. would keep certain aspects of the EU but believe financially the EU is screwed. This will probably be the beginning of the end for it and we as a country will be known for either being the start of something good. . . or something bad. Steve92 My first gut feeling is, let’s let the storm clouds settle and go from there. However, I feel George Osborne should be booted out on his backside for the scare tactics he employed which put the nail in the coffin for his side. justina3 I have noticed no change whatsoever. I operate at the cheaper end of the market but people still need cars whether we are in the EU or not – unless everyone is going to start getting the bus! Long-term, who knows? Maybe a recession could be on the cards but we have no choice other than to get on with it. Be British, have a cup of tea, keep calm and carry on! Max Branning Yes, but a lot of people probably won’t want to commit to finance at the newer or more expensive end now. There is too much uncertainty about how the exit will be managed, who will lead the government, if there will be another election... all those things are going to have an

impact on jobs and interest rates. From what I can see, quite a few people voted out as a protest against the government, cuts to services, insane house prices and so on.... but a lot of those people are having regrets already because they didn’t expect ‘out’ to actually win. Even the leave side don’t appear to have a plan and they are already going back on the promises they made about less immigration and more money to the NHS. bestprice4cash We have had an awful few days since the vote. I can’t believe the impact it has had. Three sales (all had deposits on) were cancelled on Friday (all £50-£70k cars) due to people’s accountants suggesting they hold fire. We managed to recover two of the three by throwing in shedloads of products but the other guy is simply refusing to proceed until the outlook is clearer. I would have thought the bread and butter would be OK but our market certainly is not. These cars are a luxury and until our usual customer (city-based/professionals) have a clearer outlook on their job security/the new value of the European holiday home etc, they will not be spending big on a car. That probably looks like a nice problem to have (for them) but believe me, it is a disaster for us. audispecialistlondon

From deposit to collection – what’s a good time limit? If a customer puts a deposit on a car, what would you consider a reasonable amount of time before they collect it? Steve92

so forth! Just make it clear on the day and in writing, then you won’t have issues. umesh

I always work on seven days for a standard deposit, anything over that I’d want at least £1k or even 50 per cent of the car’s value. SC Derby

Do any of you refund deposits if a customer changes their mind? TD

Ditto! Seven days – if longer, bigger deposit and

No, but I tell them it’s not refundable when they place the deposit. If they are unsure, I tell them I’d rather they go and have a think about

it because if they put a deposit down we take it off sale. SD Derby We let customers place short-term holding deposits of £100 for up to 48 hours that are refundable. If they turn up and simply dislike the colour or anything else about the car, they get it back. Normal deposit if they have seen the car in person – then yes, absolutely, not refunding it. Rory RSC

More and more of our readers are joining the debate – and it couldn’t be easier 06 | CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

bad news for us? The month on Twitter Top tweet A guy came up to me at the car dealership and said ‘you’re really pretty’. I replied ‘thanks grandma’ out of habit. Alexandra Johnson @Al_Dashian Former Colts RB Zurlon Tipton passed away today at the age of 26. Accidentally shot himself at a car dealership #RIP NFL Retweet @NFLRT All Aston Barclay centres have dedicated valet bays to ensure vehicles are in the optimum condition for sale. Aston Barclay @AstonAuctions On behalf of Motorline we would like to

welcome the Westlands Group to our family! Motorline Jobs @MotorlineJob Are you enjoying the sweetest season of the year as much as we are? #Fiat500 FIAT UK @FIAT_UK You will be surprised at the amount of places where you can park & charge in Southampton. Sparshatts Nissan @Sparshatts Half-year figures released from @SMMT show MG has had its best start to a year. MG Motor @MGmotor

FEEDBACK

I can’t get my head around timewasters Been doing this job now for four years doing 30 cars a month so going okay. Cannot get my head around timewasters. What is the quickest way to qualify the client without scaring them off? Cannot shake off that pi**ed-off feeling when I get messed around for two hours. Barclaywoodmotorco Unfortunately it just comes with the job. I had one yesterday... who actually bought a car. You just don’t know, there is no way of telling either. I just treat everyone as if they are going to buy a car and one day they may, or their family may, or friends or someone that saw the Facebook post where they tagged themselves at your forecourt. jamslug

certainly don’t have six hours to spare if I just ‘fancy’ looking at a car! I treat everyone as a buyer though. After 18 years working for PLCs, you quickly realise everyone who’s made the effort to call/email/get off their arse to come and see you is worth speaking to. When I first started out, there was a chap walking around our Lexus showroom, sweat pants, sandals with socks, bumbag, T-shirt with a picture of Alaskan wolves on it – you get the picture. Everyone else ran a mile, reception came over and said to me, he wants to look at a new RX300 (£50k-odd at the time). He dealt on the car with me there and then, and subsequently bought three more cars from me in the following 12 months. Never judge a book! Mat C

That is exactly the attitude to take. metcars Nowt stranger than folk! Last week I had a guy come on the train from Sussex (a two-anda-half-hour train journey!) to come and see a BMW estate I have. It’s a lovely car, he was over the moon with it, drove it and loved it, but his ‘gut’ told him it wasn’t the car from him. I dropped him off at the station and off he went – never to be heard from again! I don’t get how people have the time! I

I had a guy drive two hours to see a little Arosa this morning. It’s a one-owner car with 28k on the clock and has been garaged all its life. When I say it’s spotless it’s 100 per cent outof-the-box spotless. Anyway, it’s £1,750. The guy drives two hours and then goes over it for another hour plus he says he is going to see another one tomorrow which is £1,700, has done triple the miles and is in faded yellow. Mine is jet black. He says thanks for showing it to me and heads off! justina3

Stepping down from Top Gear. Gave it my best shot but sometimes that’s not enough. The team are beyond brilliant, I wish them all the best. Chris Evans @achrisevans

Farewell to the car trade, I’m off to become an airline pilot! I HAVE been offered a place to start training to become an airline pilot. It’s been a dream of mine from a very young age and I couldn’t turn down this opportunity. I start on September 12 so aim to be finished up by the end of August. I want to take this opportunity to thank everyone on this forum and James who runs it. The advice everyone gives is amazing. Sometimes it feels you are fighting this monster on your own but it is really refreshing to be able to log on and talk to people in the same situation to celebrate the good times and have a chat in the quiet times. I want to wish everyone the best of luck. We do get put through some crap from customers and suppliers so it can be really tough at times, but we are all good at what we do so it is important to keep on track and keep moving the metal and making customers smile. All the best, James jamslug Farewell James and good luck in your new way of life, how exciting! All the best from me. TD Best of luck James, you will be a big miss in the forum and in the trade but you should never stop following your dreams! Wishing you all the best. jimreidvehicle What a cracking job! I would leave to do that as well. All the best. justina3 Good luck mate – what an awesome job. I wanted to do the same but wanted a basic salary of £200k and I don’t think they can afford me! basildon car sales

to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum CarDealerMag.co.uk | 07

DASHBOARD. FLA

New and used finance grows THE point-of-sale consumer used car finance market saw new business grow 22 per cent by value and 18 per cent by volume in May, compared with the same month last year. The point-of-sale consumer new car finance market also reported growth in May, with new business up 14 per cent by value and eight per cent by volume. The stats were released by the Finance and Leasing Association. More finance news, p32-35

MANUFACTURING

Evoque reaches a major milestone THE Range Rover Evoque has reached a historic milestone, celebrating its fifth year of production at Jaguar Land Rover’s manufacturing facility near Liverpool. With more than half a million sold globally in more than 180 countries since 2011, the Evoque – driven everywhere from Madrid to Manila – is Land Rover’s greatest sales success story. It is also the fastest selling Land Rover of all time, accounting for one in four sold globally.

Lawgistics’ Bangers4BEN hopes go up in flames bit.ly/B4Bfire

Half a million cars face the scrapper after ‘Dieselgate’ VW: ‘We still have a great deal of work to do to earn back people’s trust’

olkswagen US will have to scrap half a million cars as it’s forced to buy back those affected by the emissions scandal. The mass scrapping is just one of a series of measures laid out in settlement agreements with the United States government and legal bodies in the wake of ‘Dieselgate’. Others include vehicle buybacks, lease terminations, emissions modifications and cash payments to affected customers. Volkswagen has also agreed to commit $2.7bn to an environmental remediation fund, and will also invest a further $2bn in initiatives to encourage the use of zero-emissions vehicles within the US over the next 10 years. Matthias Müller, CEO of Volkswagen AG, said: ‘We take our commitment to make things

by SOPHIE WILLIAMSON -STOTHERT @1Sophie_W

right very seriously and believe these agreements are a significant step forward. We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead.’ The settlement agreements are designed to cover the 475,000 affected 2.0-litre TDI vehicles on the road in the US. Of that number, 460,000 are thought to be Volkswagen vehicles, with the remaining 15,000 being Audis. Volkswagen is to set up a single funding pool of $10bn to cover the cost of buying back or terminating the leases of affected vehicles.

The company has also agreed to provide customers with free emissions modifications, pending approval from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). All of Volkswagen’s proposed settlement agreements are subject to the approval of Judge Charles R. Breyer, who is presiding over the case. Müller said: ‘We know that we still have a great deal of work to do to earn back the trust of the American people. ‘We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.’

MG6 is taken out of model line-up MG has confirmed that it will remove the MG6 from its model line-up later this year in response to the market’s shift towards SUVs. Despite only revealing a refreshed version of the Octavia-rivalling hatch in April 2015, the Longbridgebased company has made the decision to stop building MG6s from September. A spokesperson for the manufacturer said: ‘More and more consumers are looking to SUVs.’ MG GS reviewed, p40-41 08 | CarDealerMag.co.uk

Former Volkswagen CEO under investigation GERMAN prosecutors have opened an investigation into Volkswagen’s former CEO over allegations of market manipulation in connection with the company’s emissions rigging scandal. Martin Winterkorn and one other unidentified VW employee are being investigated in connection with allegations they did not release information about the

manipulation in a timely manner. The investigation was launched at the behest of Germany’s Federal Financial Supervisory Authority. Winterkorn stepped down as the scandal came to light, saying he was doing so ‘in the interests of the company even though I am not aware of any wrongdoing on my part’. German stock market law requires publicly-traded companies

to alert investors as soon as they have unforeseen developments that could affect a decision to buy or sell the stock. Prosecutors said that Volkswagen only made that notification on September 22, and that there was evidence that the disclosure obligation should have been fulfilled earlier. Volkswagen has already said that it met its disclosure obligation.

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DASHBOARD. MG

Brysons joins dealer network A DEALERSHIP with more than 100 years in the business is the latest to join the UK MG dealer network. Walter Bryson and Peter Bryson, joint directors of Brysons Car Centre in Ayr, were brought into a familyrun business that started with their grandfather in 1902. The dealership has predominantly focused on selling used cars. However, it was recently decided that it needed to move back into new car sales.

NISSAN

Up, up and away with the e-NV200 BRISTOL Airport has landed its second electric vehicle thanks to an award-winning car dealership in the city. Wessex Garages’ Nissan brand centre, based at Cribbs Causeway, provided another fully-electric, Nissan e-NV200 Combi van to the airport to help it ‘go green’ for 2016. Kate Hancock, Wessex Garages’ Nissan business specialist, said: ‘We’re delighted we could once again help Bristol Airport go more environmentally-friendly.’

Dealers have a key role to play, says Autoguard Warranties CEO bit.ly/key-role

Audi reveals £14.5m centre that’s bigger and better More than 20 jobs have been created in move to mega 65,000 sq ft site

udi has launched an innovative new showroom in Dorset – one of the largest in the world. Opening the doors to the press on July 6, the £14.5m centre in Old Wareham Road, Poole, represents the successes of Poole Audi over the past 16 years, delivering cars to thousands of loyal customers. The relocation of Poole Audi from Ringwood Road coincides with the publication of the business’s 2016 turnover projection of £79m and took just 14 months to complete, creating more than 20 new jobs in sales, service, parts, hosting and finance. A total of 110 staff members will work at the new 65,000 sq ft dealership when it opens to customers in August. It will display 24 new models in its 8,300sq ft showroom, house two HD display configuration rooms, and have spaces for 80 used cars and 325 service vehicles. The new site also has more than half an acre of rooftop parking for more than 100 cars, a 24-bay workshop alongside two MOT zones, plus full valet

by SOPHIE WILLIAMSON -STOTHERT @1Sophie_W

and smart repair facilities. Service, maintenance and MOT customers will be able to enter the showroom via one of three drive-in bays, under cover and climate-controlled – a first for an Audi dealership in the region. Meanwhile, vehicle handovers will be carried out in one of three highquality bays. Furthermore, customers waiting for work to be done will be able to choose from a first-class lounge, a gym and even a beauty salon and spa, which will offer a range of complimentary 15-minute treatments or a comprehensive choice of chargeable treatments. David Kelly, managing director of Poole Audi Centre, told Car Dealer: ‘The expansion of Poole Audi over the last 15 years has stretched the existing Ringwood Road facilities to the limit, with 90 employees

working in a building that was designed for 30. ‘When we open the doors for business later this year, we will strive to maintain our impressive record for customer ratings in sales, aftersales, parts and accessories – a standard that has consistently seen Poole Audi top the national league of 113 Audi Centres.’ Mark Laming, head of business, added: ‘I am delighted to finally introduce the press to the new Audi Centre and also to thank our suppliers. To bring such a significant employment opportunity into Poole in the form of the country’s largest Audi Centre, one that will serve Audi customers to the very highest standard possible for many years to come, is a significant landmark in Poole Audi’s journey.’

MITSUBISHI

Honoured for 30 years with brand A MITSUBISHI dealership in Bristol has received an award in recognition of its long service to the brand. Bristol Mitsubishi, in Feeder Road, St Phillips, was honoured for reaching the 30-year landmark as a Mitsubishi dealership in a presentation from Toby Marshall, sales and marketing director at Mitsubishi Motors in the UK. Regional general manager Chris Green said: ‘It is an honour to receive this award.’ 10 | CarDealerMag.co.uk

Car Passport is added to Scotsure programme THE RAC’s new Car Passport for dealers has been added to the Scottish Motor Trade Association’s Scotsure used car programme. All of the SMTA’s 527 dealers that sell used cars can now offer downloadable joint RACScotsure branded customer-facing documentation. Scotsure was launched in 1983 as a warranty scheme for the SMTA’s dealer sites

and has since become one of the most respected programmes of its type in Scotland. Robert Diamond, managing director of RAC Motoring Services, said the co-branded document reflected how dealers could use the Car Passport as a sales tool. He said: ‘Other provenance checks have little or no consumer recognition. Our view is that the brand values of the RAC provide a genuine level of

reassurance for customers. ‘Placing the RAC and Scotsure names side by side means that Scottish used car buyers are dealing with two of the most trusted brands in the motor industry.’ Sandy Burgess, chief executive at the Scottish Motor Trade Association, added: ‘We are very pleased to be able to offer the option of RAC Car Passport checks to our members.’

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CarDealerMag.co.uk | 11

DASHBOARD. GOODWOOD FESTIVAL OF SPEED

A new supercar is born as GT R makes debut Mercedes-AMG unveils flagship model boasting upgrades that have been heavily inspired by involvement in motorsport

ercedes-AMG has pulled the wraps off its new flagship supercar, the GT R. Featuring upgrades over the GT S that are heavily inspired by Mercedes’ involvement in motorsport, it has been designed with an emphasis on track use. Beneath the long bonnet sits a 4.0-litre twinturbo V8 engine making 577bhp – a 74bhp increase over the S model. The torque figure is 516lb/ft between 1,900 and 6,250rpm. The increase in power comes from two new turbochargers, sharpened engine mapping and a complete retuning of the combustion process. A number of other parts within the engine have been upgraded to be lighter and more durable. Performance figures for the AMG GT R are a claimed 0-62mph time of 3.6 seconds and a top speed of 198mph. With speed so readily

12 | CarDealerMag.co.uk

by DARREN CASSEY @DCassey

gained, bigger brakes were needed, and these come in the form of internally ventilated and perforated composite brake discs as standard, with ceramic stoppers available as an option. Mercedes-AMG has put great emphasis on improving the car’s aerodynamic profile, with all elements having an effect on air flow. The dominant new Panamericana grille has been implemented from the AMG GT3 race car, larger air intakes at the front improve cooling and a front splitter increases downforce. Beneath the engine sits a carbon-fibre panel that moves 40 millimetres closer to the ground to improve downforce when the car is travelling in excess of 62mph in Race mode. Aerodynamic upgrades continue at the rear

with a large adjustable rear spoiler and a double rear diffuser. To ensure that these improvements work as effectively as possible, the design was optimised in computer simulations before being honed in a wind tunnel. The body is made of carbon and aluminium to save weight, and new lightweight alloy wheels have been created specifically for the AMG GT R. They sit beneath wider front and rear wings, which allows for a wider track. The AMG GT R was developed predominantly at the Nürburgring in Germany, where its extensively modified suspension was honed. Inside, lightweight AMG bucket seats are fitted, and motorsport-inspired materials adorn the dashboard. The AMG Night package comes as standard, meaning a number of interior items receive gloss black paint. The Mercedes-AMG GT R goes on sale on November 21, with first deliveries expected in March 2017.

INTERVIEW

Lewis has designs on an exclusive

Caption to go here please

WE’RE at the launch of the wild MercedesAMG GT R. In the room next door sits the 577bhp beast, honed on the unforgiving tarmac of the Nürburgring. But that’s just the sideshow, as sitting opposite me is three-time Formula 1 World Champion Lewis Hamilton. He’s in fine form, having just booted the new GT R around Brooklands’ handling circuit and he’s up for a refreshingly honest chat with the small group of media in the room. Naturally, the first subject of the day is the AMG GT R. You might be surprised to learn that this is the first time he’s had a chance to drive one, having had no hand in the development phase. ‘When they first brought it to me I had all these ideas, but they had already finished it, but for the next car I’d like to tell them let’s change this, add this, let’s do this,” he said. ‘I was talking to Tobias [Moers, chairman of AMG], and I was like “You’ve got all this Formula 1 technology and you have the Formula 1 world champion driving your car – utilise that!”’ Hamilton seemed excited at the prospect of an ‘AMG GT LH,’ which he imagined as a limited-edition car that could be designed, tested and set up by him. While he wants to design his own car, he doesn’t actually spend much time driving on the road. Instead, he prefers riding bikes and collecting cars as an investment. But he tells us there are still some things that play second fiddle to cars… ‘When I had a girlfriend I’d be like “I’m taking one of my girls out, you can stay here or come if you want, but you’re second when it comes to my cars!”’ With the conversation descending into pub talk, a smirking Hamilton is brought back on to the subject of motorsport. He’s been quite vocal about keeping the danger in racing, drawing criticism from the likes of Max Verstappen. ‘I think it is important for us… to always be considering safety and always be working on it, but I hope the danger’s always

going to be there, because otherwise anyone could do it.’ Hamilton’s clearly a thrill-seeker, reminiscing about days gone by when racers such as Niki Lauda diced with death every time they went on the track. With F1 not totally scratching the danger itch, the Brit gets his kicks off the track – he’s often seen riding jet skis on holiday. Does that ever cause friction with his bosses? ‘When I joined this team I already told them: “These are the things I do, I’m not gonna stop!”’ He adds: ‘I try to be as sensible as I can while having fun, which isn’t always the easiest balance.’ With our 30-minute chat coming to an end, Hamilton turns the tables and asks us what we think of the car. And he seems genuinely interested in what we think. At a race weekend, he often comes across as short-tempered and difficult, but away from the pressures of F1 he’s relaxed and likeable. It was a real pleasure meeting someone who’s deservedly a role model to kids all over the world.

Our man Darren with Lewis Hamilton CarDealerMag.co.uk | 13

DASHBOARD. DEALER INTERVIEW

Investing in a promising future with Volvo Ray Chapman Motors has reaffirmed its commitment to the Volvo brand by investing in the manufacturer’s new corporate image. SOPHIE WILLIAMSON-STOTHERT reports

amily-owned and run Volvo dealership Ray Chapman Motors, in Malton, North Yorkshire, has undergone a five-month makeover to bring it bang up-to-date. The showroom has been redesigned to fall in line with Volvo Car’s Volvo Retail Experience (VRE) and Volvo Personal Service (VPS) global branding – and the new state-of-the-start site, in Seven Street, now feels less like a traditional dealership but more a welcoming living space where customers can kick back and relax. Ray Chapman Motors was founded and first started working with Volvo in 1968, when dealer principal Duncan Chapman’s grandfather set up the North Yorkshire-based business, before passing the reins down through the generations. Chapman’s father bought the business from his father in 1987. Then, it was operating out of small building on Horsemarket Road, next to Malton cattle market. There was room for just four cars in the showroom and eight in its used car display. ‘This business has always been based on building trust and delivering the highest possible levels of customer service by our passionate and dedicated team of professionals,’ said Duncan Chapman. ‘We realise we can’t stand still in terms of the service we offer and so we are constantly investing in our facilities, systems, training and most importantly, our people, to keep in front of our competitors. ‘Trust is probably one of the most important factors when buying a new or used Volvo and is the number-one reason we have many customers who come back year after year. Our byword from day one was “customer satisfaction”. This has never changed and still proves to be what 14 | CarDealerMag.co.uk

Dealer principal Duncan Chapman talks business and brand

drives our business forward. We believe excellent customer satisfaction to be the foundation, which helps motivate every one of our 60-strong team of employees, across our two dealerships, who are extremely loyal.’ Ray Chapman Motors was established as an official main Volvo dealer in the 1990s, when the team moved into the purpose-built premises it still occupies today. This was followed by an acquisition of the York territory in 2000 and the building of a new dealership on the outskirts of the city. Today, the Malton showroom can house

five new cars in the showroom and more than 50 used cars on the forecourt. In 2002, the firm’s corporate fleet department was established, specialising in business vehicle sales, and the dealership is now one of only 11 Volvo approved business centres in the UK. The team have become renowned as Volvo business specialists and delivers new cars across the country. ‘We’re absolutely buzzing at the moment,’ said Chapman. ‘Converting to a VRE and VPS showroom has been a fundamental shift. ‘It’s taken five months to carry out the refurbishment and, during that time, our customers have been extremely supportive, paying testament to the trusting relationships – some stretching back 35 years and more – we have with our customer base. ‘This used to be a four-car showroom with little room for much else. Today, we’ve pretty much doubled in size. Every single wall has changed, allowing us to accommodate much more, with the dealership split into three different and

“

Historically, customers would look at a dealership up to nine times before stepping through the door

A clean and clutter-free environment

PHIL HAND, HEAD OF NETWORK DEVELOPMENT FOR VOLVO CAR UK ‘VRE has been designed to tackle the challenge of bridging the gap between an ever-improving market sector and the current Volvo dealership customer experience. Workshops are integral to the customer experience, so being able to see in and out of the ‘window’ between the dealership spaces becomes a symbol of trust between Volvo and our customers. VRE isn’t just about a change of furniture though, it’s a new way of retailing designed to make our customers feel relaxed and at ease in an environment that informs and provides flexible waiting, working and assessment areas. By 2020, we aim to be selling 80,000 units every year, and VRE will help us on our way to achieving this goal.’

homely consultation areas, including a unique and transparent service department.’ He added: ‘According to research, historically, customers would look at a dealership up to nine times before stepping through the door. Today, this has reduced to two or three times, meaning you have to grab their attention as soon as you can – that’s where VRE comes in.’ VRE focuses on the space and style of a dealership and is designed to reflect Scandinavian-inspired values and architectural features. The aim of VRE is to create an environment for customers in which high levels of visual transparency are key. Large exterior and interior windows, for example, allow customers to see all activity in the new workshops, turning

the spotlight on what is often regarded as ‘back of house’ and ‘the unknown’. Inside, the showroom has been segregated into The Street, The Living Room and The Workshop, helping to simplify the customer journey from start to finish. There is, therefore, a balanced focus on physical and digital presentation, making sure the sales and service areas are completely integrated to deliver an open environment. Meanwhile, VPS – the new name for Volvo’s ‘One Hour Stop’ service – streamlines aftersales functions to improve workshop efficiency, job throughput and revenue opportunities for dealers, delivering a personal service to Volvo customers via a dedicated service technician. VPS is shaped by trust, transparency and respect

for a customer’s time. It works by utilising teams of personal service technicians (PST) working on cars as groups rather than individually. This allows for work to be carried out twice as fast, nearly halving customer waiting times. PSTs also become a single point of contact for the customer, who knows that the person they are talking to is the person directly responsible for their car. This personal relationship builds trust and transparency and helps ensure greater clarity and efficiency. Volvo has worked closely with dealerships where necessary to adapt existing roles for service advisors and managers who will continue to oversee workshop and service operations ensuring no headcount loss during the implementation of VPS. ‘VRE is designed for the customer, not the dealer,’ said Chapman. ‘It’s also designed around our service department where, thanks to a floorto-ceiling window, customers can watch as their vehicles are worked on. They are even assigned their own personal technician, who they can contact at any time – this transparency helps to build trust and relationships between both new and existing customers.’ ‘Historically, dealerships are focused on how to generate more business, ultimately making it easier for them,’ explained Chapman. ‘We’ve flipped that notion on its head, focusing primarily on the customer.’ [CD] Sponsored dealer programme, p24 CarDealerMag.co.uk | 15

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DASHBOARD.

Bristol Street Motors gives a car to a ‘fantastic’ charity Vauxhall Corsa will be raffled off to raise funds for worthy cause

trio of Bristol Street Motors dealerships in the northeast have donated a new car to a local hospice. It will be raffled off to raise funds. Gateshead-based Vertu Motors plc, which owns Bristol Street Motors, previously donated a Honda Jazz through its north-east Vertu Honda franchises. That raffle raised more than £46,000 for the charitable organisation and it is hoped this latest venture can repeat that success. Bristol Street Motors dealerships in Hexham, Sunderland and Newcastle upon Tyne have banded together to donate a brand new Vauxhall Corsa, which will be used to tour the region promoting the raffle before a lucky winner is drawn. Proceeds will boost the coffers of St Oswald’s Hospice in Gosforth,

Newcastle, which has an annual fundraising target of £7m. The £46,000 raised from last year’s raffle has been put towards transport services, to take patients and their carers to and from appointments, along with moving essential medical equipment and delivering prescriptions. Last year, its team of 63 volunteer

drivers responded to more than 18,000 requests, ensuring patients were able to keep their appointments and receive their medication on time. Raffle tickets are £1 and can be purchased at the participating dealerships in Newcastle, Sunderland and Hexham. The winning ticket will be drawn at St Oswald’s Christmas market towards the end of the year. Robert Forrester, chief executive officer of Vertu Motors plc, said: ‘We are absolutely delighted to be helping St Oswald’s Hospice again this year. ‘It’s a fantastic charity that does outstanding work.’ Anita Ball, director of income and marketing at St Oswald’s, added: ‘We are proud to be working with Vertu Motors and extremely grateful to the company for their generous donation of a car for our raffle prize.’

ACQUISITION

Cambria buys JLR franchise CAMBRIA Automobiles has announced the acquisition of the Jaguar and Land Rover franchise in South Woodford in North London from Pendragon Premier Limited for £2.1 m. The business runs a sales facility in South Woodford and an aftersales facility in Hainault, currently operating from leasehold premises. Cambria has committed to Jaguar Land Rover that it will relocate the business to a new dealership facility that will be compliant with the JLR Arch Corporate Identity Concept. According to Cambria, the territory has great potential for the Jaguar and Land Rover franchise and complements the group’s existing brand footprint, which now operates five Jaguar and four Land Rover dealerships under the Grange trading name. Market Insight, p79

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DASHBOARD.

Sail away, sail away, sail away... regatta raises £20k for BEN Number of teams taking part in charity race day triples in a year – with more growth to come by DAVE BROWN @carDealerDave

ll corners of the automotive industry were represented on the waters of the Solent when the second annual Automotive Challenge Cup took place in June. The regatta saw 28 teams sail a course of three races over a day to raise money for the automotive industry charity BEN. The FPS Distribution 2 crew emerged triumphant, followed by the Volvo team, and, in third position, Hendy Group. Everyone seemed to have enjoyed themselves, despite some late-afternoon downpours that made the final race a rather soggy affair. Michael Hlavaty, from event organisers Sunsail, said the number of teams taking part in the 2016 event had more than tripled from 2015, when just nine crews had participated. He said: ‘The Automotive Challenge Cup is our fastest growing regatta, this year raising more than £20,000 for BEN. ‘We are aiming to double this again next year, with a target of 50 teams – we can’t wait to welcome them all to the Solent for some 20 | CarDealerMag.co.uk

The GardX crew in good spirits during a break between races more sailing for such a great cause.’ Oliver Stevenson, head of affinity partnerships at Alphabet, BMW Group’s leasing company, said: ‘It was really good fun and something a bit different – it was certainly harder work than I was expecting.’ Dylan Haskell, sales director at GardX Protection, said: ‘We’re based in Emsworth so this event is right on our doorstep. Everyone was excited at the start of the day and there was a lot of apprehension too. ‘When everybody got on board, they suddenly realised that this wasn’t going to be an easy day… it was going to be a fun day but a hard day. I’m sure if the event is

expanded to 50 boats next year, it will sell out.’ John Hendy, systems director at Hendy Group, said: ‘We have had a fantastic day. I didn’t take part last year but I have taken part in regattas before. We’ve thoroughly enjoyed it and we used the day to entertain clients and suppliers. Bit different to a golf day, isn’t it?’ And Neil Davis, a director of Lookers plc, agreed: ‘It was a great day. We took part in the inaugural event last year and then encouraged other people to get involved. It’s a bit of fun and it’s good to work together. We’re all non-sailors, so that made it interesting!’

Action from a busy day’s yacht racing Jools Tait, business development director at BEN, said: ‘We are thrilled at the growing success of the Automotive Challenge Cup. ‘Huge thanks to the Sunsail team and all those who made it such a successful event.’ PICTURES: PAUL WYETH MARINE PHOTOGRAPHY

CarDealerMag.co.uk | 21

DASHBOARD.

Fiat 500 celebrates 59th anniversary in Capri with all-new Riva edition bit.ly/59birthday

‘Challenges and uncertainty’ lie ahead in wake of Brexit Industry experts give predictions and outline what must be done

he automotive industry will likely be negatively affected by the result of the EU referendum, according to Glass’s. In the wake of the UK’s historic vote to leave the EU, Rupert Pontin, director of valuations, said: ‘This is an interesting result that sees the UK very much embark on a new chapter that is largely unwritten. If the Brexit voters are correct in their thinking, it could create greater prosperity for the country in the long term, but over the next few months and years, the road is likely to be very bumpy. Markets will be affected, as will the value of the pound, and we expect to see consumer confidence tail off until the view of the way forward becomes clearer. How long this will take is difficult to predict. ‘For the motor industry, all of these developments are very likely to have negative effects, including a period of instability for new and used car sales, as well as an increase in pre-reg activity and downward pressure on values. There is also likely to be further political instability as a result of the referendum outcome, both at home with the ruling government and across Europe, as the EU comes to terms with the decision, which will create further uncertainty. ‘Whatever the outcome in the longer term, there are plenty of challenges

by DAVE BROWN @CarDealerDave

now facing the motor industry and the UK as a whole.’ Pontin added that the UK used car market probably wouldn’t start to be materially affected before the fourth quarter of 2016. ‘We’re in a period that you might characterise as the calm before the storm. The first factor to hit the car and van markets is likely to be fuel costs. As the pound has dropped in value, oil will become more expensive and pump prices are likely to rise. The second will be the choice of prime minister. Based on their decision, we will start to get an idea of when Article 50 will be enacted and their overall approach. This may also trigger a period of further instability. ‘Hopefully, from there, we will soon start to see a picture emerging of the timetable for the next few years, which will at least allow dealers and manufacturers to plan more accurately.’ SMMT chief executive Mike Hawes says the government must safeguard UK automotive interests

SMMT chief executive Mike Hawes said: ‘The British public has chosen a new future out of Europe. Government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests. ‘This includes securing tariff-free access to European and other global markets, ensuring we can recruit talent from the EU and the rest of the world and making the UK the most competitive place in Europe for automotive investment.’ Malcolm Miller, managing director of Chippenham-based automotive learning and development agency RTS Group, said: ‘The Brexit vote, far from resolving economic concerns, will, we believe, create further economic challenges. Automotive dealers will have to continue working hard to overcome their customers’ concerns over committing to a new car and manufacturers will have to work hard to support them in the short term. But of course there is an opportunity to think beyond European shores, and auto retailing in the UK is seen by many as a benchmark for best practice across the globe. ‘We see growth in the Far East, China and India as the new economic powerhouses of the world and are helping dealers and manufacturers there improve their operations.’

Top performers in car finance honoured at glitzy ceremony THE winners of this year’s annual Car Finance Awards were revealed at a glitzy ceremony at St John’s Hotel in Solihull. Organised by Credit Strategy and supported by Car Dealer Magazine, they recognised the achievements of companies and individuals driving success in one of the most buoyant segments of financial services. The Car Finance Awards 2016 were judged by a panel of experts representing every area of the car finance industry, including Fred Crawley, managing director of Credit Strategy, Adrian Dally, head of motor finance at the FLA, and James McGee, managing director of Northridge Finance. Acting entirely independently, all judges signed non-disclosure agreements ensuring that 22 | CarDealerMag.co.uk

no information from the nomination process was shared with any other party. The results were: Best broker, sponsored by Amigo Loans: Evolution Funding Best online finance offering, sponsored by Oracle Finance: Codeweavers and BMW Financial Services Best non-standard lender, sponsored by Zuto: Moneybarn Best new lender, sponsored by DSG Finance: Blue Motor Finance Compliance expertise, sponsored by Callcredit Information Group: GM Financial Best law firm: Shoosmiths Best credit team, sponsored by Lester Aldridge: Moneybarn

Innovation award: Black Horse Customer service excellence, sponsored by Equiniti Pancredit: MotoNovo Finance Best use of technology: Blue Motor Finance Best new technology: Callcredit Information Group and CarFinance247 – MOGObankconnect Best independent lender, sponsored by Evolution Funding: Blue Motor Finance Best large independent lender, sponsored by Evolution Funding: Black Horse Best service for dealers: GM Financial Best manufacturer finance, sponsored by Intelligent Environments: BMW Financial Services Judges’ award for outstanding F&I performance: Steve Rowe – Pendragon

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DASHBOARD. VIDEO

Nissan network opts for CitNOW CITNOW has been adopted by the Nissan GB dealer network, with each dealer sending out an average of 110 videos a month. The system has been white-labelled by Nissan as eVision and has seen its top workshops deliver more than 600 customer videos a month. The success of eVision has now resulted in the launch of the technology into all of Nissan’s new and used sales departments – a total of 202 dealerships.

AWARD

Well done to Plan Insurance team!

Glyn Hopkin raises more than £15,000 at charity golf day bit.ly/hopkin-golf

Sponsored dealer scheme will find brand advocates ‘Great opportunity to join Volvo at a truly exciting time for the company’

olvo Car UK is planning to invest in the brand and its network of dealers with the launch of a Sponsored Dealer Programme. While not an entirely unique concept, the programme is a first for Volvo in the UK and will play a pivotal part in meeting its target of 60,000 UK car sales by 2020. Volvo will give talented motor trade professionals with a proven track record of running successful individual or small group dealerships the opportunity to set up their own Volvo dealership, with the support of Volvo Car UK. The company plans for six sponsored dealers to go live over the coming years, with work on the first dealership, located in the Midlands,

PLAN Insurance Brokers have picked up a prestigious trophy at the 2016 Family Business of the Year Awards. They collected the People’s Choice Award for best familyrun firm in the London & South East region. Their recognition came at a prestigious gala dinner organised by Family Business United, a magazine and resource centre. The event was held to celebrate the contribution family firms make to the UK economy.

by DAVE BROWN @CarDealerDave

already underway at a new-build site which incorporates the brand’s latest Scandinavian-inspired showroom design cues. Volvo will take on the leases for the properties and each site will be set up as a Volvo Retail Experience (VRE) dealer. As part of Volvo’s human-centric approach, the dealers will be handpicked and will gain ownership of a Volvo franchise. Volvo will support the dealership to nurture the business in line with brand strategy requirements and to support individuals in getting up to speed with operating a multimillion-pound business. Following the successful launch of Volvo’s all-new XC90, a positive

reception for the V90 and S90 and the on-going transformation of the brand, Volvo says the Sponsored Dealer Programme provides a great opportunity to get on board. Phil Hand, Volvo Car UK’s head of network development, said: ‘The Sponsored Dealer Programme has been introduced to find talented motor trade business people who will become advocates of the Volvo brand at a truly exciting time for the company. It is part of our move to continually improve the quality of our dealer network’s customer experience.’

PARTNERSHIP

Dealership backs local golf club A MITSUBISHI dealership in North Yorkshire has given its backing to Ripon City Golf Club. Batchelors of Ripon has sponsored the club’s first team squad, providing team shirts, and will be offering a new car as a prize for a hole-in-one competition later in the season. Neil Jacques, brand manager at the dealership in Dallamires Lane, said: ‘We’re delighted with this new partnership with this fantastic local golf club.’ 24 | CarDealerMag.co.uk

New chief operating officer named at Carwow ANDREW Hooks has joined Carwow as chief operating officer (COO). Hooks, previously director of motors at Gumtree.com, brings with him more than seven years’ experience in building and scaling automotive marketplace businesses. At Carwow he will take responsibility for developing the dealer proposition. Andrew joined eBay, owners of Gumtree, in 2009 to run the eBay Motors business in Europe. Since 2014 he has been responsible for

developing the Gumtree Motors proposition. He said: ‘I’m really excited to be joining Carwow – it’s a great opportunity to help shape one of the most exciting and innovative businesses in the automotive retail sector anywhere in the world, and I was impressed by the calibre of people already in the business.’ He added: ‘I wouldn’t have been interested in joining Carwow if the proposition was just ‘‘all about price’’. ‘Consumers value transparency,

service and convenience, and it’s those qualities that differentiate Carwow’s successful dealers, as evidenced by the fact that just 25 per cent of users choose the cheapest offer they receive. I look forward to using my experience to usher in the next phase of growth.’ James Hind, CEO of carwow, said: ‘I am delighted Andrew is joining the team. He brings with him a huge amount of experience, both in the automotive industry and and running large teams.’

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DASHBOARD.

It’s not all about price and condition – reputation is a key factor as well The way it judges whether a car is good value or not has raised eyebrows – but CarGurus boss Langley Steinert says his platform can drive a huge amount of volume to dealers

nline traffic to CarGurus is growing in leaps and bounds – and the company has made faster progress establishing itself in the UK than it did in its early days in America, according to CEO Langley Steinert. CarGurus arrived in the UK in December 2015, and has already amassed more than a million unique monthly visitors, Steinert said when he appeared on Trade Plates TV recently. And he added: ‘We do already have paying dealers. I believe we have between 200,000 and 300,000 units of stock on the platform now for consumers to use and our traffic is growing in leaps and bounds.’ Steinert admitted that he and his team had found resistance to the platform both in the US and UK at first, but had managed to allay any fears dealers may have had. ‘When we first came out in the US there was a huge outcry that this was a race to the bottom, this was about price compression. People were saying ‘‘this is going to ruin my business’’ but that never came to be,’ he said. ‘There are two things dealers care about. One is scale, because if you’re number five in their lead flow they’re not going to care about you. The other is close rate (close rate being what percentage of leads that we send to a dealer turn into sold cars). ‘The early returns in the UK seem to be mimicking the US, that we drive an enormous amount of volume to dealers. In the United States we’re typically dealers’ number one lead provider and our close rate is typically around ten per cent, which is the highest they’ve seen of any partner.’ Why would leads from CarGurus be more reliable than from another source, though? Well,

AUCTION STATIONS TYPICALLY, if you’re buying a car at a live auction, it will be classed as ‘sold as seen’, meaning you’re buying it with whatever faults it may have – whether you can see them at the time or they appear later. Lawgistics legal advisor Howard Tilney appeared on the show from Letchworth Motor Auctions to explain under what circumstances a trader might have cause to reject a car. ‘Traders’ rights, on the face of it, are somewhat limited when it comes to live auctions,’ he said. ‘Ordinarily they are ‘‘sold as seen’’ so while a trader might well be able to refer to the Sale of Goods Act and in particular implied terms in relation to satisfactory quality and fitness for purpose, the reality is that in most cases, the contractual terms and conditions in respect of the auction would prohibit them from relying on the statutory provisions. ‘The only real recourse that traders would have in those circumstances when something goes wrong is to look at the misdescription or misrepresentation of the vehicle. That might well give rise to a claim arising from breach of contract and the Misrepresentation Act of 1967 is our best weapon in those circumstances.’ it’s down to the categories classing cars as a great, good, fair, high or overpriced deal. ‘When a consumer comes off our platform and goes to a dealership, there’s something really unique that’s going on,’ explained

Twitter: @tradeplatestv 26 | CarDealerMag.co.uk

Facebook: Trade Plates TV

Steinert. ‘Number one, the consumer is going to that dealership with the third party validation that this is a fair, good or great deal. They already feel confident about the fact that this car has been validated by a third party.’ One of the questions sent in from a Trade Plates TV viewer was about whether using this was fair on the consumer or whether the wording was misleading. However, as Steinert said, this guide is based on more than just whether your car is cheaper than other examples of the model. ‘For every car that we upload onto our platform in the US – we upload around five million cars a night – every single car gets analysed at the make, model, trim, options, geographic market, vehicle condition level so we can look at all of the cars that we’ve seen over the last 90 days to 12

Website: tradeplates.tv

Rebecca hosted a Trade Plates TV show from Letchworth Motor Auctions recently

‘Five per cent of our buyers never visit a showroom’ FIVE per cent of CarShop buyers take delivery a store, interact with us, touch and feel the product of their new vehicle without ever having visited and take a test drive, but there are a number one of the company’s showrooms, the firm’s CEO, of customers who hate the idea of going into a Jonathan Dunkley, revealed on Trade Plates TV. car dealership so our mantra must be: allow the Dunkley appeared on the programme to talk customer to shop in the way they want to. about the success CarShop has had in recent years ‘By being flexible it means that we maximise and discuss his own career, which has every opportunity on our website.’ seen him progress through the ranks Dunkley believes increased of the business. He said that the team transparency in the market is one of the was now seeing 23 per cent of sales challenges the industry is facing, saying: made as ‘reserve-and-collect’ purchases ‘Managing transparency will be key and – potentially meaning just one visit to how we use that to our advantage a showroom is necessary. According will be important. to Dunkley, the company operates ‘The reality is that customers can go Jonathan Dunkley this way ‘in recognition that some of anywhere and buy a car. Pricing is very our customers want to shop from the similar across the board and you don’t comfort of their sofa’. tend to get the really expensive dealers any more Talking to Rebecca, he added: ‘Most because that model doesn’t work. Where we can customers love to come into really separate ourselves is by giving that great customer experience.’ Last year CarShop, which has outlets in Cardiff, Doncaster, Northampton, Norwich and Swindon, achieved its highest-ever profit figure of £5m and Dunkley predicted that this year will see an even more impressive performance.

months, depending on how popular a car it is. We look at all of the cars we’ve seen that are similar to that and if the car is priced above what all cars similar to it are priced, then we’ll typically categorise that as overpriced. If the car is below what we’ve seen for similar cars, we’ll categorise it as a good or great deal.’ But Steinert explained that this is more than just being the cheapest car on the market, explaining that he often tells dealers ‘you don’t need to get into a price war but you do need to look carefully at your marketplace and make sure

that you’re not the highest cost provider or the lowest. What we do tell people is that you should price your cars so they’re fair.’ It’s not all about the price or condition of the car, it also comes down to dealer reputation. Consumers are asked to review dealers they interact with. He told us: ‘When we first came out with this platform in the United States we realised there were some dealers that wanted to play games. The car would be placed really low, it

would be a great deal, but when the consumer got there they would say it includes putting $5,000 down or that’s only available for military veterans. ‘We had to figure out how to police this. So we said “why don’t we get the customers to rank the dealers after they’ve interacted with them?” ‘So it’s not just sufficient to have a great deal, if you have really bad reviews your inventory is going to end up on page five of our search results and you’ll get no exposure.’ [CD]

Go to TradePlates.tv now to see our latest videos CarDealerMag.co.uk | 27

28 | CarDealerMag.co.uk

COUNTY ARMAGH: A Portadown Nissan dealership has a new look after adopting the manufacturer’s new showroom concept. Shelbourne Motors now boasts one of the region’s most cutting-edge car sales environments, with technology and creature comforts combined to enhance the overall customer experience. The concept, which was developed in the UK for roll-out globally, was devised to do away with the traditional sales-focused showroom and create a more ‘experiential’ environment, reflecting Nissan’s core principles of innovation and excitement.

A cutting-edge car sales environment

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

DERBYSHIRE: A Mitsubishi sales manager from Chesterfield is gearing up for a sponsored ‘sit-a-thon’ at Chesterfield FC’s Proact Stadium in aid of a local hospice. Daniel Wheeldon will sit on every one of the 10,600 seats in a stunt inspired by the efforts of ex-footballers Alan Shearer and Robbie Savage at Wembley during 2014’s Sport Relief. Daniel, who works at Gilder Mitsubishi, wants anyone who would like to join him on August 5 to get in touch to raise funds. He has enlisted personal trainer Nic Crossley, who is offering free sessions to anyone who signs up.

Sales manager gears up for ‘sit-a-thon’

CHESHIRE: Motorpoint Widnes has helped a children’s hospice get on the road with a new car. The car supermarket adopted Zoe’s Place as its official charity partner last year. Since then, general manager Kevin Cartwright and his team have been helping to raise funds for the Liverpool-based charity. Motorpoint worked with Everton first team coach and club legend Duncan Ferguson to cover the cost of a new Vauxhall Zafira Tourer. The seven-seater will be used to transport youngsters from their homes to Zoe’s Place as well as take families out on day trips.

Car supermarket helps children’s hospice

PAISLEY: A Peugeot dealership in Paisley has received a prestigious award for outstanding customer service. The Macklin Motors branch, part of Vertu Motors, won the Guild of the Gold Lion Award after customers voted it one of Peugeot’s top dealerships across the manufacturer’s UK network of more than 280 sites. The dealership, at Phoenix Retail Park, was awarded the accolade based on customer satisfaction across all key business areas. General manager Tony Stevenson said: ‘We’re very pleased to have received such a prestigious award from Peugeot.’

Golden award for top customer service

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 29

Contest helps appeal for poorly girl CARDIFF: A dealership in Cardiff held a fundraising competition to help a young girl with severe health problems. Wessex Garages asked people to guess how many rugby balls it could fit in the boot of a Nissan Qashqai during a fete held by the Lollipop Lane Playgroup in Rhoose in the Vale of Glamorgan. The winner won a Nissan GT-R track day experience. The money raised will go to an appeal set up to help eight-year-old Layla-mae Cummings, of Barry, who was diagnosed with a brain tumour at the age of five.

£200m factory plan secure despite Brexit

ST ATHAN: Aston Martin has announced that its plans to build a £200m plant in south Wales will not be affected by the UK’s decision to leave the EU. However, CEO Andy Palmer warned that Brexit means the carmaker will need to make extra productivity and efficiency savings. The luxury carmaker is planning to produce a new SUV-sized vehicle at the Welsh plant to capitalise on growing global demand for crossover cars. With construction set to begin next year, the 90-acre factory in St Athan will employ 750 people. Vehicle production is expected to start in 2020.

CHELTENHAM: HR Owen has introduced a new approach to classic, performance and luxury carbuying: the HR Owen Ecurie. Ecurie, which is the French for ‘stable’, is a word that has a long association with motor racing and racing teams. HR Owen’s Ecurie will showcase exceptional, sought-after, highperformance cars and bring them together under one roof. The newest HR Owen location is Cheltenham, and will allow buyers access to a wide selection of desirable cars. As well as hosting a carefully chosen selection of high-performance and luxury vehicles, the company will also be able to find and buy cars.

HR Owen Ecurie opens for business

SURREY: Martins Group has started redeveloping its VW site in Camberley. It operates two facilities in Camberley offering VW sales and separate aftersales. Employees will work from the current showroom until the new one, set to be completed by the end of 2016, is finished to ensure minimal disruption for customers. The existing showroom will eventually be demolished. Group chief executive Terry Handley said: ‘We are very excited that building work has started. The new showroom will move Martins in line with the latest Volkswagen retail sales environment.’

WORCESTER: A dealership has helped a customer get into gear for a charity car rally across Europe. The service team at Bristol Street Motors, Cosgrove Close, carried out work on David Pritchard’s 15-year-old Ford Focus to prepare it for the James Bond Challenge – a four-day-long rally through eight European countries, tackling the most challenging and awe-inspiring mountain passes from the film franchise. Pritchard is taking part in the September event, organised by the Fireball Rally, to raise money for the Brain Tumour Charity in memory of his motor mechanic father, Kevin.

BRISTOL: Bristol Airport has landed its second electric vehicle thanks to a car dealership in the city. Wessex Garages’ Nissan brand centre at Cribbs Causeway provided another fully-electric Nissan e-NV200 Combi van to help the airport ‘go green’ for 2016. Kate Hancock, Nissan business specialist at Wessex Garages, said: ‘The Nissan e-NV200 is the most economical commercial vehicle ever produced.’ Martin Fisher, motor transport manager at the airport, said: ‘We are always looking to explore technology which can help us reduce our impact on the local environment.’

Airport goes even greener thanks to Nissan

KENT: Leading premium used car supermarket Big Motoring World is set to expand its headquarters to radically increase trading. After announcing ambitious expansion plans last August, the firm has secured planning permission to increase its operations by developing its new 22-acre site at Blue Bell Hill. The site will become home to a new, modern car supermarket displaying thousands of BMWs, Mercedes and Audis. The investment will create more than 300 jobs. The organisation also aims to build on the adjoining seven-acre site at its West Malling operation.

Expansion plans are given the go-ahead

Volkswagen site redevelopment starts

Service team helps with charity challenge

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Around the world

Dealer news from somewhere other than here

RUSSIA

CAR sales in Russia, where Volkswagen last year opened a new engine plant, plunged 36 per cent in 2015, in an economy hit by lower oil prices and western sanctions over the Ukraine crisis, according to a report on the website Asset Finance International. As a consequence, VW Financial Services has sold a five-billion-rouble bond in Russia to fund its local operations.

BRAZIL

JAGUAR Land Rover has officially opened its new factory in the city of Itatiaia – its first whollyowned manufacturing plant outside the UK. The Financial Times described the inauguration as ‘a rare vote of confidence in Latin America’s largest economy’. The plant will build the bestselling models locally — the Ranger Rover Evoque and Land Rover Discovery Sport, the manufacturer said.

SOUTH AFRICA

AFTER opening a dealership in Johannesburg last year, Maserati has opened a second showroom in South Africa – in Cape Town. The Italian luxury car manufacturer is showcasing its full model line-up across the two outlets after announcing the appointment of European Automotive Imports (South Africa) as official Maserati importer.

CHINA

CHINESE car buyers are feeling less satisfied with their experience than they were last year, according to a poll by JD Power and Associates. The customer satisfaction survey conducted between May 2015 and February 2016 found that the proportion of Chinese car buyers who thought the buying experience was better than expected dropped to 40 per cent – a significant decrease from the 64 per cent who said the same last year. Audi had reason to celebrate, however, coming top for the fourth consecutive year.

SRI LANKA

KAHN Group has formed a partnership with Millennium Automotive Group in an agreement that sees Millennium become the sole Kahn distributor for Sri Lanka. Trading as Kahn Design Sri Lanka (Millennium Motors), this appointment will allow the full range of Chelsea Truck Company, Project Kahn and Kahn Design products to be offered from Millennium’s showroom in Colombo.

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

CarDealerMag.co.uk | 31

FINANCE. Kia promotes test drives of models with £1,000 saving KIA MOTORS UK Ltd is continuing its strong range of customer offers across the line-up, available from 188 dealers nationwide. New for the third quarter, it is offering customers who choose to take a test drive of selected models a £1,000 saving if they buy a new car. With a test drive proving a valuable part of the car-buying experience, customers will benefit from this exclusive offer until September 30. Many consumers now choose to shop for their vehicles online, but Kia believes that taking a test drive is still an important part of buying a car as it allows customers to really experience the vehicle for themselves. Its superminis are also getting a revised line-up

this summer, with added features and a range of financial offers. The revised Picanto five-door line-up has been honed to just three generously specified grades – ‘1 Air’, ‘SE’, and ‘Sport’ – available with 4.9 per cent APR across the range and £500 PCP deposit allowance on ‘SE’ and ‘Sport’. The Rio five-door line-up will also benefit from a simplified yet enhanced range, with a revised ‘1 Air’ and new ‘SE’ derivatives. Rio also benefits from the 4.9 per cent APR, with up to £750 PCP deposit allowance. Kia will continue to offer its popular 4.9 per cent APR, with no deposit required. This means customers can walk into a dealership and take a new Kia model home that day.

Team-up with iVendi helps clear route

Innovation lab will give new opportunities to start-ups BMW Financial Services scheme will build deep and lasting relationships

he retail and commercial finance provider BMW Group Financial Services has launched an opportunity for early-stage start-up companies to partner with the company in the UK. Designed specifically to discover new technologies that can help deliver new and improved services to its customers, the Innovation Lab is the first of its kind in the automotive financial services sector. Run in partnership with L Marks, a corporate innovation specialist and investment fund, the Innovation Lab has been developed to attract young companies with disruptive technologies that can be used to speed

32 | CarDealerMag.co.uk

up development of new financial services products and bring them to market faster. Start-up companies have until July 31 to submit their application on the Innovation Lab website bmwinnovationlab.co.uk Mike Dennett, chief executive of BMW Group Financial Services in the UK, said: ‘The Innovation Lab provides a great opportunity for us to get a different perspective on our business and generate new ideas more quickly. ‘It is a very different approach and one which will allow us to explore customer-focused initiatives from young, energetic and talented small companies while at the same time offering them the chance to gain

JARDINE

exposure to a range of experienced mentors and potential investors.’ Stuart Marks, technology entrepreneur and chairman of L Marks, said: ‘Innovation Lab is an unprecedented opportunity for promising start-ups to get access to a leading provider of automotive finance and insurance products and solutions. This kind of intense engagement with the company over a 10-week period will enable start-ups to build a deep and meaningful relationship with the brand and develop their products and services in a unique environment. ‘I am very excited that L Marks will be part of the journey the companies take as they work on this programme.’

JARDINE Motors Group has teamed up with online motor finance specialist iVendi to integrate the latest generation of online finance tools into its GForces-built website, helping to improve the customer experience and generate more sales. Jardine Motors Group, one of the largest motor retailers in the UK, launched its new fully responsive website in late 2015 using GForces’ NetDirector Auto V10 web platform. With iVendi’s Quoteware and Car Finance Calculator integration, which went live at the beginning of June 2016, used car buyers can now create, calculate and compare finance offers that suit their circumstances while browsing online. Alex Brown, head of digital at Jardine Motors Group, said: ‘The website is a huge part of many of our customers’ carbuying journeys. With so many now relying on finance to pay for a car, the integration of monthly payment search and finance calculators may provide that additional piece of information that helps crystallise a purchase decision. At Jardine Motors Group our aim is to provide a clear route to purchase from the web to the showroom. ‘The iVendi finance calculator has definitely helped us achieve this.’

IN ASSOCIATION WITH

Let’s be certain about what’s clear, fair and not misleading

’ve recently been on a course to fulfil both my own need for development and my company’s ambition to keep all employees competent in their roles, which is a usual occurrence at First Response. I attended an external course on guidance of the Financial Conduct Authority’s financial promotion rules. While I believe we are already stringent when it comes to financial promotions, opinions vary as to what the advertising rules and guidance mean, so getting an external view is always a good thing. So what is clear, fair and not misleading? Well, this is the most important thing that the authority has published in my opinion.

‘Be clear about the product or service so that the person buying it can make an informed decision’ Here are some highlights from the FCA’s website: •Be Fair – Products and services are usually marketed to attract as many customers as possible. We often see this leads to products being marketed unfairly. •Be Clear – Think about what people both want and need to know. Be clear about the product or service so that the person buying it can make an informed decision. •Avoid Misleading Customers – Your firm will have more knowledge of the product or service than the person buying it. We believe firms should ensure that promotions are balanced and not give too much prominence to the benefits associated with a product without also highlighting the relevant risks.

Ben

Garside TIME IS MONEY

Anyone who has done any form of business or advertising course will be aware of the 5Ws. So let’s take a look at clear, fair and not misleading from that perspective. Who – Is your target audience? Knowing the target for each communication (promotion) is key. It is this knowledge that will allow you to choose the headline messages you should promote. What – Product are you selling? Lease purchase vs hire purchase, prime vs sub-prime. This difference could bring in a whole batch of prescribed information. Where – Are you distributing the promotion? The medium you place your advert in is also a significant consideration before producing your financial promotions. If your communication is going out as a post on Facebook, then the likelihood is that the

Turn over page for more finance stories people who could see your communication is varied, unlike a targeted direct mail campaign. Why – Are you doing the promotion? You shouldn’t be doing a campaign just because figures are low one weekend. Your campaigns should always be about securing the right customer for the right products. When – Are you doing the promotion and reviewing it? Simple. These are my views and I advise businesses to read CONC 3 – the clear, fair and not misleading rule and general requirements – but as long as you know why and you can prove that you are being clear, fair and not misleading on each financial promotion, you will be in a great place towards giving good customer outcomes.

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

CarDealerMag.co.uk | 33

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . SPORTS SALOONS AUDI S6 SALOON

BMW M3 AS HERITAGE goes, the BMW M3 has bucketloads of the stuff, and the latest version of the sports car follows in the footsteps of its forebear with fantastic sports styling, a great engine and sublime performance. On a 4.9 per cent APR three-year contract, the M3 can be paid for monthly for £909.84 over 35 instalments, after an initial deposit of £8,150.36, including a BMW contribution of £3,150.36. Following costs of £39,994.76 over the three years, you can choose to spend an extra £24,570.85 to keep your M3 and spend £64,565.61 overall. That’s an additional £5,465.60 on top of the on-the-road price, but for the fantastic M3 saloon and all the features that come with it, you could argue that it’s well worth it.

WITH lots of space and speed on offer, the S6 saloon brings Audi’s attention to detail, practicality and technology to the forefront, with the 450PS 4-litre V8 paired with the legendary Quattro allwheel-drive system. On 4.9 per cent APR, the 36-month contract includes an initial payment of £11,000, which includes a £6,000 Audi deposit contribution, and 35 monthly payments of £834.11. With fantastic safety and infotainment technology as standard, the Audi S6 has plenty to keep you enthralled. If you want to keep it at the end of your three-year deal, it will cost £21,892.75, bringing it to a grand total of £62,096.60, including the £29,193.85 overall monthly fees and £10 option-to-purchase cost. The OTR figure for the S6 Saloon is £57,215.

Could PCPs be the cause of the next big mis-selling scandal? ‘Claiming ignorance and confusion won’t wash as a defence’

he PCP could be the product to spark the next major mis-selling scandal, according to car finance experts at the National Association of Commercial Finance Brokers. The personal contract plan is one of the most common ways that private individuals — and business owners — in the UK finance their cars. Last year alone, an estimated one million cars were bought in the UK by using PCPs. The potential for mis-selling relates to what the NACFB describes as the ‘insufficient, poor, or, in some cases, deliberately misleading’ advice given by car dealers and finance firms when recommending PCPs to car buyers, both new and second-hand.

34 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

Graham Hill, board member and car finance expert at the NACFB, said: ‘If the PPI claims lawyers conclude there is enough basis to put forward a mis-selling case on PCPs, then given the huge volumes in which these products have been sold to both private individuals and businesses, the car finance industry could be shaken to its roots. ‘While the PCP in itself can be an appropriate solution for many car owners, as it reduces the monthly payments quite significantly, the issue lies with the way these products have been sold.

‘Were people made aware of the increased interest rate charges on PCPs relative to hire purchase agreements, and were they misled about the prospect of equity, either deliberately or out of dealer naivety? ‘In the majority of cases, I suspect ignorance and confusion among dealers is to blame. ‘But this will not help them and the finance providers behind them if, in the months ahead, PCPs are judged to have been mis-sold.’ Hill stated: ‘In the event that this happens, a significant number of consumers and business owners could be in for a sizeable cash windfall from the cars, motorcycles and vans that they have purchased.’

IN ASSOCIATION WITH

JAGUAR XF S AS WITH any Jaguar, style and performance come hand in hand, and with the XF S, the latter is enhanced to a superb level. With great sporty styling and dynamic performance and safety additions, you have great confidence in your XF S. With part-exchange available, Jaguar offers some attractive deals on the XF S, and for the 3-litre 380 PS V6 you can get a great offer. With 5.9 per cent APR, a £5,000 deposit and £893 finance deposit allowance, the monthly rate is set at £810.95. With the £15,000 per annum contract spread of 36 monthly payments, your total costs are £29,194.20. If you want to keep the XF S after the 37-month contract, the final payment would be £20,638, including the £10 purchase activation fee. The total amount payable would be £55,725.20, compared with the OTR figure of £49,945.

MITSUBISHI

IVENDI

Zero per cent APR and Account directors £2,500 finance deposit added to fold as offer on Outlander PHEV company grows MITSUBISHI Motors in the UK has introduced a £2,500 finance deposit contribution and 0% APR representative on the marketleading Outlander PHEV. The offer is available on cars registered between June 21 and September 28, 2016. Toby Marshall, sales and marketing director of Mitsubishi Motors in the UK, said: ‘With its state-of-the-art petrol-electric hybrid powertrain, the Mitsubishi Outlander PHEV is at the forefront of a new generation of ultra-low emissions vehicles that can save money for motorists and help to improve air quality.’ A full-sized 4x4 family crossover SUV, the Outlander PHEV offers exceptional fuel returns of up to 156mpg. Combining electric and petrol power, it has a range of 541 miles – 32 miles in electric mode alone – which is more than enough to accommodate the average daily commute. The award-winning Mitsubishi Outlander PHEV, which offers class-leading emissions of just 42g/km CO2, is exempt from the London congestion charge and vehicle tax.

THREE new account directors have been appointed this month by the motor finance technology specialist as it continues to grow. Keron Hurlston is senior account director for the UK and Ireland, having had a 20-year career in the motor industry, most recently as strategic partnerships and accounts director at the RAC. Robert Sudworth-Jones is account director for the southeast. He has been working in the automotive software sector for the past 14 years, the past eight with motors.co.uk as head of autoexposure. Jade Harrison is account director for the Midlands. She has worked at AutoTrader since 2000, most recently as business solutions consultant. Richard Tavernor, iVendi chief operating officer, said: ‘All three will prove to be major assets.’

CarDealerMag.co.uk | 35

AUTOMOTIVE SOFTWARE

 sales@dragon2000.co.uk  dragon2000.co.uk  01327 222 333

36 | CarDealerMag.co.uk

BIG MIKE.

All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike

Anything with a Rover badge is not much use – except to me! I

’ve found the answer to the problem created by the ‘new’ tax system, which means I still get to enjoy all the perks of nearly free motoring that us traders used to get back when the tax disc in the windscreen ran until the day it expired. The answer, simply, is the Rover 45. Don’t laugh. I’m stockpiling them… There is no car out there that’s quite so unfashionable at the moment. Even a good one, with a long MoT and good service history, is somewhere between impossible to sell or costly to give away. Indeed, I did the same thing with Lada Rivas back in the 90s, and look at the silly money they go for with the ‘classic’ boys these days. My MO is this – I tell anyone who trades one in that I’ll save them the hassle of getting rid of it, but the most I can offer them is fifty or a hundred quid (which, let’s face it, is the very least you’d expect to knock off your margin to start with). Most of them bite, because they’ve already been trying to sell the confounded thing privately for weeks. I then simply stick them all in Pooh Corner (that part of my yard where I dump all the sh*t) and am slowly cycling my way through them, quite merrily registering them to myself like a private punter, because that’s the only way you can legally drive them these days. For that, I have a monthly cost of between twelve and eighteen quid, depending on whether I get the povvo-spec 1.4 or something a bit more plush, like a 1.8 Connoisseur, which even gets dead cow inside it. Diesels, I don’t bother with – you can still sell them on the black market for cash, as even in the world of consumerism in which we live, there’s a buyer out there for anything that’ll do over 50mpg and sound like a tractor. Indeed, Rover diesels have an unusual (and, I mean, VERY unusual) following. Anything with a Rover badge on it, a K-Series engine (pop goes the head gasket) and especially four doors rather than five, though, is dead in the water. These are cars that would be uneconomically viable to repair if they got so much as a puncture, with even the youngest ones now being over 11 years old, and with the design being antiquated back then. If the Rover 45 was a dog, you’d have it put down. I, however, see the value in anything that costs me naff all, so I’ve ditched my traditional trader wheels of lardy exec mobiles, a task made much easier by my good lady wife ditching my Nissan QX in the more literal sense of the word a few months ago, and since February have been bombing round in three separate Rover 45s. The first, a 1.4 hatchback, I allowed £50 for and ran

Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...

until the MoT ran out at the end of April. I didn’t bother retesting it, and gave it to one of the lads round on the industrial estate who I know does a bit of sub-1,500cc banger racing in exchange for a ticket to watch it go out in a blaze of glory. The second one was a poshy. Finished in bright metallic blue, with some curvy five-spoke alloys, it was a plush retail special-edition four-door, with matching blue carpets and leather and the lesser spotted 2.0 V6 under the bonnet. On the X-plate, it was an early-ish example, and therefore worth absolutely nothing according to the black book. That’s despite having less than 80,000 on the clock and a full service history courtesy of two previous owners, the latter a well-heeled gent who was genuinely heartbroken when I told him the most I could offer him for it was £100 against a Jaguar S-Type. He still took my offer,

‘The weird thing is, I actually miss the old bus. Don’t tell anyone...’ though, and in the process I took a fairly decent margin on the Jag, leaving me with another disposable old smoker. However, last week, something really odd happened. A man walked on to the lot, looked around a few of the cars in the sub-£1,500 corner and then sidled over to my Rover and commented on how good it looked. Bear in mind I’d been using it daily and it was a bit grubby, with undertones of grandchildren and fish and chips haunting the interior. Nevertheless, I’m a car dealer, and I can’t resist a deal, so when he asked me how much I wanted for it, I’d spouted out a figure before I knew it. It turned out the chap in question, quite a young fella, was a serial Rover apologist, and bit my hand off without even haggling. Apparently, the ‘Impression S V6’ was on his list of gaps in the collection. It really does take all sorts… The weird thing is, I actually miss the old bus. Don’t tell anyone, as I have a reputation to maintain. Anyway, it doesn’t matter, as since then I’ve taken three more 45s in part-ex. I’m currently on a green ‘Olympic’ special edition with beefy alloys and a less-than-beefy engine, while there are two more waiting in line for me as I can’t imagine another punter will want them. Unless, like me, they realise they’re really not that bad after all…

Who is Big Mike?

Well, that would be telling. What we do know is he’s had more than 40 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 37

DASHBOARD. ADVERTISEMENT FEATURE

It’s a tootle-y new way to Capitalising on the car industry’s shift towards mobile platforms, yet with a reassuring human touch, tootle could prove to be incredibly useful to your business . . .

hat would be my dream way to source cars? This is what Mike Bishop, the founder of tootle and a former car dealer, asked himself. The answer was surprisingly simple: have local private sellers, with vehicles I specialise in selling, drive their cars to my showroom and sell directly to me for a good price. No time visiting auctions and paying premium prices. No time and money spent having cars delivered. So he founded tootle to do just that – creating a marketplace matching people looking to sell their car to dealers wanting to retail that car. ‘The best buyers of cars are dealers,’ says Bishop, ‘especially when they actively want to source a specific car for a customer. Our aim with tootle is that both the dealer and seller end up getting a better price through an easier process. ‘I know from personal experience, having spent years in the industry, that dealers often struggle to source good stock, and are frustrated with the cost and hassle of buying cars through auction. So we zoned in on building a platform which conveniently matches sellers directly with dealers.’

How it works for dealers Five months after launching the platform, tootle has almost 500 businesses in its dealer network – a rapid rise for such a new company. But it’s not resting on its laurels. ‘I want to get a few thousand dealers on our platform,’ says Bishop. ‘From the group buyers down to the forecourt teams that do everything – we want a wide spread of high-quality dealers to match the range of cars that come on our site.’ So how exactly does that matching process work? ‘All dealers that sign up to tootle are asked to register their stock preferences – such as makes, models, age and mileage ranges,’ explains Bishop. ‘We then send them email alerts when cars that match those preferences come on to the platform 38 | CarDealerMag.co.uk

from sellers. Dealers can also browse all stock on the platform.’ On the consumer side, sellers simply type details such as the car’s registration and mileage into the site. They then create a profile of their vehicle including photographs, servicing and MOT history and a damage report, so that the dealers have as much information as possible on the car. Capitalising on the industry’s digital and mobile shift, the entire buying/selling process can be done online. ‘Around 50 per cent of our site traffic comes from mobiles, so we’ve made the platform very mobile-optimised. Sellers can create their profile and upload car pictures taken on a phone camera directly from their mobile, while dealers can browse our cars or adjust their preferences via a computer or phone,’ says Bishop. Offers on cars can be made through the site, where vehicles remain ‘live’ for just five days. ‘We want to encourage sellers to make decisions quickly. They can see all the offers made on their car in their profile and accept whichever one suits them best with the click of a mouse. ‘We’re also encouraging sellers to discuss offers with dealers directly by phone to increase the likelihood of a sale completing. ‘This industry can’t just be on the computer. You need that human touch, and the dealers are very good at that.’

The financial benefits So what does all this cost? Unlike some of the trade buying platforms, tootle is subscription-free. However, the company does charge a variable sourcing fee on each vehicle bought, ranging from £95 to £450, depending on the value of the car. (Which has ranged from £1,200 runarounds

to a £140,000 Ferrari California T.) ‘Our fees are significantly cheaper than auction fees, and if a seller lives locally or is prepared to drop the car off, there’s a huge time saving to be had as well,’ stresses Bishop. He’s also keen to emphasise the potential benefits to be had over part-exchange. ‘In my experience as a former dealer, I know businesses often get stuck with part-exchange cars they don’t really want. A BMW dealership can’t sell a Citroen on its forecourt. So the seller probably doesn’t get the best price, and the dealer has the hassle and expense of off-loading the car through auction or other trade routes. ‘Our online platform allows us to increase efficiencies and unlock geographic potential that simply isn’t possible from a physical forecourt. It’s giving customers the opportunity to get the best price for their car and dealers the chance to source the cars they want directly from sellers around the country.’

Drive to attract dealers Having been named as one of startups.co.uk’s ‘Spectacular businesses set for stardom in 2016’, and with backing from investment firm Hambro Perks, Bishop sees tootle growing at a significant rate over the next couple of years, and has set his sights on a bright future. ‘We want tootle to be a household name and our new TV advert is the start of building that awareness. The seller reviews that we’ve had so far are overwhelmingly positive – mainly because our dealers have treated them so well – and we’re confident that the number of cars on the site will increase rapidly as our advertising kicks in. ‘On the other side of the coin, we’re keen to drive up the number of dealers on the platform

source cars

to increase the likelihood of successful matches – especially matching local sellers to local buyers. We want to offer dealers a new and better way to source decent stock and so far the feedback has been fantastic. ‘We want to work with dealers to refine the platform into something truly useful for them, and hope that Car Dealer magazine readers will sign up to experience the benefits for themselves!’ [CD]

“

We hope that Car Dealer readers will sign up to experience tootle’s benefits for themselves! CarDealerMag.co.uk | 39

FORECOURT.

MG GS Matthew Cheyne, head of sales and marketing at MG Motor, discusses what the future holds What do the next 12 months look like for MG? The future is looking bright. We aim to have 78 dealers in the network by the end of August and we’ve already seen a 58.6 per cent rise in our sales. Registrations have reached 5,000 and we hold a 0.19 per cent market share, with 95 per cent of our vehicles sold to retail customers. We’re growing, steadily but surely. How is the GS going to help drive growth? We want to be active in growing markets and that’s why we needed the GS. People ask: ‘Can an MG be an SUV?’ and my answer is yes, it can. In order to continue our growth strategy, we need to attract new and younger customers to the brand, and to do that we need to give dealers the right tools to do their job. We’re also bringing new dealers into the network – our goal is to sell 800 GS cars between now and December 2016. If we could reach 1,000 by this time next year I’d be thrilled. Our aim is to build and grow our dealer network organically, and I’m confident we’ll get

between 70 and 90 dealers on board by the end of the year. Can the GS compete against its rivals? We’ve taken a China-based vehicle and tweaked it to make a great EU seller with all the latest technology. Anything you’d expect to have to pay more for as an option comes as standard on the GS and, starting from £14,995, it’s the cheapest in its class. Cost of ownership is also a lot cheaper than its rivals. We’ve developed an attractive retail proposition, which appeals to the biggest part of the segment – manual petrol cars. We’ve built a car that’s benchmarked to compete with the best, and overall it’s the best value for money in its class. Will the GS be your best-seller? I don’t think it will be our best-seller, and I don’t think it will overtake the MG3. But it’s a starting point to getting to where we want to be. Next year we’re launching a B-segment SUV, which I think

could be our best-seller. The GS is the best value for money in its class with the highest level of specification as standard. We’re launching it with a three-to-four-year 0 per cent PCP offer and it will also be available with a fantastic new five-year, 80,000-mile warranty. If in five years we are shifting 20,000 vehicles every year, then we’ll be where we want to be. For us, it’s not about stocking cars on dealer forecourts, it’s about finding customers. We’ve found 5,000 GS customers before the launch, without spending a penny – I think that sets the scene for what’s to come. What do your dealers think of the GS? Our dealers are really excited about this car. It means they can now compete in the biggest market in the industry. It’s going to take time to build awareness, but we’ve already got customers lined up. Whatever we need to grow the brand, SAIC Motor will help us to get. In my opinion, you couldn’t find a more dedicated company focused on making the brand a success.

on test

Sophie Williamson-Stothert finds MG’s new SUV holds its own in a number of areas

WHAT IS IT? This is the MG GS. With sales of the MG3 and 6 dwindling, this is the brand’s chance at reaching its goal of becoming a 20,000-car manufacturer in the next five years. Taking on the market leaders in the ever-expanding SUV segment, the GS comes with an attractive starting price of £14,995, making it the cheapest in its sector.

WHAT’S UNDER THE BONNET? Available with a 1.5-litre turbocharged petrol engine, the GS is designed to appeal to buyers in a growing part of the segment – those in the market for a manual petrol. The unit was designed in collaboration with General Motors and produces an impressive 166bhp. The GS is 40 | CarDealerMag.co.uk

available with a six-speed manual gearbox and also debuts the brand’s first seven-speed dry dual-clutch automatic transmission, which is available on the top-spec Exclusive and priced at £20,995. Against its rivals, the GS holds its own in a number of areas. It boasts more torque than its two-wheel-drive petrol competitors with 250Nm, it has a competitive CO2 rating of 139g/km for the manual and 141g/km for the DCT and is capable of towing 1,750kg.

WHAT’S THE SPEC LIKE? The GS is available in three specifications, priced from £14,995 for the entry-level Explore, £17,495 for the Excite and £19,995 for the rangetopping Exclusive. Designed and engineered

in Longbridge, Birmingham, the GS boasts a bold stance and striking detailing, clearly distinguishing it from its competitors on the road. The entry-level Explore is equipped with cruise control, automatic headlamps and air conditioning as standard, while the mid-range

ENGINE

It comes with a sprightly 1.5-litre petrol unit, developed with GM.

THE KNOWLEDGE

BODY

The GS features bold yet distinctive styling.

ECONOMY

It can achieve close to 46mpg with a light right foot.

but there’s still some work to do to appeal to UK buyers Excite adds DAB radio, Bluetooth connectivity and rear parking sensors. Step up to the Exclusive and buyers gain leather sports seats, an iGO navigation system and have the choice of MG’s six-speed manual or the brand’s first seven-speed DCT gearbox. It also benefits from a practical 1,336-litre boot space, which is a key selling point for young families.

Model: Price: Engine:

MG GS Exclusive £19,995 1.5-litre four-cylinder petrol Power: 166bhp, 250Nm Max speed: 118mph 0-60mph: 9.6 seconds Economy: 46.3 mpg Emissions: 139g/km

TARGET BUYERS:

too loose a ride, it was what you’d expect from a budget brand.

Young families looking for a cheap but practical alternative to everyday motoring.

WHAT DO THE PRESS THINK?

THE RIVALS:

According to Auto Express: ‘The MG GS is an SUV that offers plenty of practicality and equipment at a low price. It’s also comfortable and good to drive in town.’

KEY SELLING POINTS:

WHAT’S IT LIKE TO DRIVE?

WHAT DO WE THINK?

Satisfactory. You won’t want to be too heavy on the accelerator, since this doesn’t do a lot of good to the fuel consumption, and you can’t help but feel a little disconnected from the wheels when cornering, as the steering wheel is a little on the light side. Other than that, and perhaps slightly

MG is definitely aiming in the right direction, but in order for the GS to live up to the expectations laid by its competitors, it still has a little work to do. The foundations are there, but in order to appeal to the UK buyers, MG will need to step up the quality.

Nissan Qashqai, Ford Kuga, Mazda CX-5

1. It’s got a 1,336-litre boot 2. It’s well-equipped as standard 3. It comes with a five-year warranty

DEAL CLINCHER: It’s £3,555 cheaper than the entry-level Qashqai. CarDealerMag.co.uk | 41

FORECOURT. DRIVE

Audi says it’s one of the most powerful models in the segment.

DESIGN

Its low roof descends into its C-pillars and contrasting colour offset blades.

Audi Q2

ENGINES

The 1.4-litre petrol and 1.6-litre diesel units are expected to top sales charts.

Can Audi’s premium entry into the compact crossover segment attract the younger buyer? Sophie finds out WHAT IS IT?

WHAT’S THE SPEC LIKE?

This is Audi’s new Q2, designed to entice new, younger, buyers to the brand, and provide a splash of colour to the ever-growing segment. With its refined build quality and powerful line-up of powertrains, the Q2 is set to offer buyers an affordable premium choice to customers in the SUV sector.

The Q2 incorporates the latest multimedia gadgets from the new A4 and there are three generously equipped specification levels to choose from – the entry-level SE, the Sport (for an additional £1,500) and the range-topping S Line (£2,500 above Sport). Entry-level versions benefit from a suite of features from standard, including smartphone interface, a seven-inch infotainment screen and Bluetooth connectivity. Audi has also created an extensive palette of vibrant colours for customers to choose from – 12 to be precise – including the option of coloured dash inserts.

WHAT’S UNDER THE BONNET? The Q2 is launching with an initial choice of two four-cylinder petrol engines – the 115bhp 1.6-litre TDi and the Cylinder-on-Demand 150bhp 1.4-litre TFSi. A three-cylinder TFSi and a four-cylinder 2.0-litre TDi will become available later in the year. The 1.4-litre petrol and 1.6-litre diesel units are expected to top the sales sheets and, as an alternative to the six-speed manual gearbox, Audi has said it will offer the seven-speed S tronic dual-clutch transmission across the range, bar the 1.0-litre. 42 | CarDealerMag.co.uk

WHAT’S IT LIKE TO DRIVE? Spot-on. Audi has managed to build a spacious compact SUV that can nip around corners with ease. In fact, it’s one of the most powerful models in the segment. It even incorporates a low seating position, similar to what

you’d find in an Audi saloon car, which gives you confidence while on jaunts across winding country roads.

WHAT DO THE PRESS THINK? According to Auto Express: ‘It has something Audis (and most German cars) have lacked in the past – charm. It’s cool, safe, spacious, fun, great to be in and great to be seen in.’

WHAT DO WE THINK? The Q2 offers buyers plenty of bang for their buck. Not only is it offering premium equipment at a lower cost to its rivals, it’s got bags of space – including a large boot, which can carry up to 1,050 litres – and oozes family-friendly practicality from every corner. We are also impressed by the colourful touches, which have been specifically designed to counter criticism that all Audis come only in dull greys. It’s also more than £4,000 cheaper that the entry level Mercedes GLA 200 CDi Sport.

THE KNOWLEDGE Model: Audi Q2 1.4 TFSi Sport Price: £23,930 Engine: Inline, four-cylinder Power: 150bhp, 260Nm Max speed: 132mph 0-60mph: 8.5secs Economy: 45.2mpg Emissions: 123g/km

TARGET BUYERS: Hatchback drivers in the market for their first SUV and couples looking for a versatile and refined family vehicle.

THE RIVALS: Mercedes GLA, BMW X2, Mini Countryman

KEY SELLING POINTS: 1. It’s cheaper than a GLA 2. Luxurious and spacious 3. Plenty of spec from standard

DEAL CLINCHER: It puts an end to Audi’s formerly bland design canvas, with 12 colours to choose from.

Come and talk to us about our prices today. ONLINE | IN LANE | MOBILE * vs. BCA and Aston Barclay, based on checking competitor websites on 27/06/2016. These are checked on a weekly basis. â&#x20AC; Refers to 360Â° imagery, new inspection reporting, Vehicle Solutions, SureCheck, increased capacity and facilities. SP1208_206 29/06/16

CarDealerMag.co.uk | 43

FORECOURT. BOOT

All models get a powered tailgate.

HEADLIGHTS

The V90 gains the Thor’s hammer headlights from the XC90.

Volvo V90

ENGINE

D5 diesel model now includes ‘PowerPulse’ electric supercharger.

Stylish, sophisticated, handsome . . . tester Andrew Evans differs from this Swedish estate car in only three ways WHAT IS IT?

WHAT’S THE SPEC LIKE?

Hot on the heels of Volvo’s all-new XC90 premium SUV comes the latest version of its V90 large estate car. Given that Volvo’s image is almost inextricably linked to big estate cars, the V90 might be the most important model for the brand right now.

The V90 matches the XC90 in terms of interior design, with a minimalist yet pretty plush interior majoring on natural materials. Standard equipment on any grade includes full leather, navigation, an eight-inch TFT screen, two-zone climate control, DAB radio, heated front seats and LED headlights, along with a power tailgate – upgraded to hands-free on Inscription models. Of course it wouldn’t be a Volvo if there wasn’t a decent array of safety kit, and the V90 includes city safety, pedestrian and large animal detection, adaptive cruise control and pilot assist.

WHAT’S UNDER THE BONNET? If you’re already familiar with the XC90’s powerplants, there’ll be nothing to surprise you too much here. The V90 will initially ship with the front-wheel drive D4 and four-wheel drive D5 diesel engines, with the T8 Twin Engine hybrid coming later in the year. There’s no plan to bring the petrol T6 to the UK at the moment. The D5 is equipped with an electric supercharger that Volvo terms ‘PowerPulse’, designed to compress air to be fed into the turbocharger at low engine speeds to eliminate turbo lag. Whatever your engine choice you’ll find it’s paired to an eight-speed automatic gearbox. 44 | CarDealerMag.co.uk

WHAT’S IT LIKE TO DRIVE? The V90 is a consummate cruiser, devouring huge tracts of motorway without any kind of fuss. It’s quiet enough to hold a reasonable conversation in at any day-to-day road speed, with only a little flutter of wind noise coming from the roof rails. On the more interesting roads,

you won’t find the V90 wanting. With the drive mode set to Dynamic, it becomes quite a capable point-topoint car and the D5 engine is plenty good enough to give the car a decent turn of pace.

WHAT DO THE PRESS THINK? Car magazine remarks that ‘packed with technology and handsome too, the V90 is genuinely desirable’.

THE KNOWLEDGE Model: Volvo V90 D5 PowerPulse AWD Inscription Price: £44,055 Engine: 2.0-litre, 4-cylinder diesel Power: 235hp, 480Nm Max speed: 145mph 0-60mph: 6.9sec MPG (combined): 57.6mpg Emissions: 129g/km

TARGET BUYERS: The police – and anyone else who wants utility and comfort for the next 200,000 miles.

WHAT DO WE THINK?

THE RIVALS:

There’s no doubting the premium credentials of the V90. It’s a treat to get in to and provides a completely drama-free driving experience. Provoking it into a spot of high jinks reveals a surprisingly grippy vehicle with a decent turn of pace, but you’ll need to select the ‘dynamic’ suspension setting and take manual control off the gearbox to make the most of it, otherwise the ‘box can be slow to kick down and the body can wallow a little. However, it almost feels uncouth to do such things!

BMW 5 Series Touring, Mercedes E Class Estate, Audi A6 Avant

KEY SELLING POINTS: 1. Stylish, sophisticated and comfortable interior 2. Impressive equipment levels 3. Refined long-distance cruiser

DEAL CLINCHER: The usual Volvo attention to detail on safety.

CarDealerMag.co.uk | 45

FORECOURT. COUPE BODY

Rakish roofline does impinge on rear space, but not as much as you’d think.

SPORTY CHASSIS

Sports suspension and more direct steering come as standard on the GLC Coupe.

Mercedes-Benz GLC Coupe

ENGINE RANGE

At launch, just two 2.1-litre diesels are available, with a 3.0-litre diesel V6 due at the end of the year.

Mercedes-Benz says this model is the sports car option among a plethora of mid-size SUVs. Does James Fossdyke agree? WHAT IS IT? It’s the stylish, sporty version of the new GLC 4x4, and it’s here to take on the BMW X4. If Mercedes is to be believed, this is the sports car among the mid-size SUVs. Underneath, it’s almost identical to the GLC, although some suspension tweaks have been brought in to make it more of a driver’s car. All in all, it’s a recipe that comes together surprisingly well.

WHAT’S UNDER THE BONNET? At launch, the only available engines are both 2.1-litre diesels. You can go for the 168bhp 220d, but arguably the best compromise of performance and efficiency is the 201bhp 250d. Later this year the smooth, powerful 3.0-litre 350d will join the stable, and a plug-in hybrid is expected in around two years’ time.

cabin design and relatively generous equipment levels. A basic GLC 220d Sport Coupe costs £40,580, and that comes with satellite navigation, 18-inch alloys and a reversing camera, but the really desirable cars will come in AMG Line trim. Starting at just over £42,000, that offers some sporty external touches, full Artico man-made leather and extra goodies such as the sports steering wheel and black rooflining The only real problem, then, is that the Coupe costs £3,000 more than the equivalent GLC SUV, and that’s quite a premium to ask when all you really gain is some sporty suspension and a rakish tailgate.

WHAT’S IT LIKE TO DRIVE?

It’s testament to Mercedes’ engineering that the GLC doesn’t quite drive like a normal SUV. Sure, WHAT’S THE SPEC LIKE? it can’t compete with the C-Class From the driving seat, the GLC Coupe through the bends, but it’s more than a match for the likes of the is practically indistinguishable from its SUV-bodied sister, sharing a classy Range Rover Evoque and that’ll be 46 | CarDealerMag.co.uk

enough for most customers. It’s comfy, too, ironing out potholes well and offering decent refinement despite the gruff 2.1-litre diesel under the bonnet. The nine-speed gearbox is something of a triumph too, providing seamless shifts and impressive economy for a car of this size and weight.

WHAT DO THE PRESS THINK? Autocar said that the ‘cheaper, more practical and hardly ugly GLC remains the better buy’, while Auto Express commented that ‘although it certainly isn’t cheap, we expect it to deal a knockout blow to the BMW X4 when it arrives in the UK.’

WHAT DO WE THINK? The SUV market just keeps on growing, and this Coupe variant is only going to extend the appeal of the GLC range. It looks good, the handling is more composed than most 4x4s and it’s more practical than buyers might be expecting.

THE KNOWLEDGE Model:

Mercedes-Benz GLC 250d 4MATIC AMG Line Coupe Price: £43,245 Engine: 2.1-litre turbodiesel Power: 201bhp Max speed: 138mph 0-60mph: 7.6secs Economy: 56.5mpg Emissions: 143g/km

TARGET BUYERS: Buyers who want the GLC’s commanding driving position but long for better driving dynamics and a more stylish aesthetic.

THE RIVALS: BMW X4, Porsche Macan

KEY SELLING POINTS: 1. Sleek new shape 2. Improved handling 3. SUV ride height

DEAL CLINCHER: It combines the strengths of an SUV with the road manners of a premium saloon.

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CarDealerMag.co.uk | 47

FEATURE. MAZDA MX-5 CELEBRATION

THE MIGHTY

MX-5 In April 2016, the one millionth Mazda MX-5 rolled off the production line in Hiroshima. To celebrate the milestone, the Car Dealer team headed to Wales in a colourful convoy of roadsters – one from each of the four generations.

48 | CarDealerMag.co.uk

azda’s MX-5 has been a classleader in delivering soft-top fun and driver satisfaction since 1989. Now in its fourth iteration, no other rear-wheeldrive lightweight sports car under £25,000 has ever been able to match it. In April this year, Mazda celebrated the fact that the millionth MX-5 had rolled off the production line, 27 years after the Japanese carmaker began

PHOTOGRAPHY: JONNY FLEETWOOD LOCATION: NORTH WALES

manufacturing the iconic roadster. To mark this milestone, that very special car made an appearance at the Goodwood Festival of Speed, alongside the MX-5 Speedster and Spyder concept cars – marking the first time these unique MX5-based concepts, which accentuate the car’s lightweight and fun-to-drive ethos, were seen outside North America. To celebrate the arrival of the millionth model and the history of the car that sits at the heart

of the Mazda brand, we headed into the depths of the Welsh countryside with an example from each generation. We reminisced, hitting the winding roads in convoy to remind ourselves why we adore this little car. Although very different, each has the unmistakeable DNA that has been passed down the generations since the launch of the Mk1. Over the past 27 years, the MX-5 has been remoulded to accommodate changing regulations and the

modern ways of motoring. Nevertheless, it’s never ceased to resemble a simpler time. The models can clearly be distinguished by their exterior styling upgrades, but beneath the metal, the four roadsters are very much the same. Does the Mk4 live up to its original predecessor, and has the Mk1 stood the test of time ? Find out on the following pages, where Andrew Evans and Sophie Williamson-Stothert take a walk – or a drive, rather – down memory lane.

CarDealerMag.co.uk | 49

FEATURE. MAZDA MX-5 CELEBRATION

Mk1 1989 – 1998 Back to 1989... and Mazda launches a car destined to be a brand icon

he first MX-5 arrived, curiously for a car with Japanese origins, in North America, where it was badged the Mazda Miata. This was quickly followed by its arrival in its home territory as the Eunos Roadster. Mazda was, at the time, experimenting with a number of different sub-brands, and its sporting models were sold under the Eunos marque. The moniker MX-5 was chosen for European markets in 1990. The MX-5 was something of a child of the world rather than just Japan. Originally a project mooted by American motoring journalist Bob Hall, it was a classic British sports car designed by Mazda’s Californian studio and prototyped in the UK. The mechanical components were derived from Mazda’s other vehicles, particularly the 113hp, 1.6-litre four-cylinder petrol engine from the Mazda 323. Final assembly took place at Mazda’s Hiroshima plant. Built around the Japanese principle of ‘jinba ittai’ – the horse and the rider acting as one – the MX-5 was designed to be more than a car that you just drive, rather an extension of the driver. Jamie Caple, creative director at Caralot, said: ‘The MX-5 is the most fun you can have in a car for the least amount of financial outlay. The pop-up lights on the Mk1 made you feel like a film star! It’s a car that made you feel like you could drive and like you could handle a car.’ One thing it wasn’t originally was a performance car, despite the low kerb weights – early cars weighed around 980kg. The first run of MX-5s packed just 113hp from the 1.6-litre engine and took more 50 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Mazda MX-5 1.8i Price from new: £15,795 Engine: 1.8-litre, four-cylinder Power: 133hp Top speed: 123mph 0-60mph: 8.3 seconds

than eight seconds to bring up the 60mph mark – with later cars only mustering 90hp from a similar unit. In fact, the first hints that the car could cope with more power came around the time of Mazda’s famous Le Mans 24-hour win in 1991. A short run of cars known as BBR Turbos were equipped with a turbo conversion from Mazda specialists BBR of Brackley, producing 152hp and propelling the MX-5 to 60mph in 6.8 seconds – still the quickest standard MX-5 ever made. To celebrate the Le Mans victory, Mazda converted 24 cars to ‘Le Mans’ spec, which included the

rather garish orange and green paint job of the victorious Mazda 787B. Despite the popularity of the MX-5, these models didn’t sell particularly well. For 1994 and onwards, the regular MX-5 came with an improved 1.8-litre 4-cylinder unit, producing 130hp. With the car still weighing less than a metric tonne, the MX-5 could now reach 60mph in under eight seconds and gave the car a swifter turn of pace between the corners. The first-generation MX-5 reached the end of its life in 1998 with the final of very many special edition models: the 400-example Berkeley.

“

The MX-5 was a classic British sports car designed by Mazda’s Californian studio

Mk2

1998 – 2005 The second iteration preserved the MX-5’s status as an affordable and powerful two-seater legend

he second-generation MX-5 received a warm welcome from enthusiasts when it hit the Tarmac in 1998. With almost a decade having passed since the Mk1 made its first appearance, the car was getting to be in need of a makeover as the Noughties approached. Possibly with a more sanitised look than the original model – and lacking the pop-up headlights, which didn’t meet newer pedestrian safety standards – the Mk2 ‘NB’ model lacked something of the charm and joie de vivre of the original car, but it certainly didn’t lack its predecessor’s ability to thrill. In fact, aside from the loss of the pop-up lights and the metal catchdoor handles of the Mk1, you’d be hard-pressed to tell the difference between the cars on the outside. On first impressions, the Mk2 appeared merely to have undergone something of a facelift. However, some important changes had been made, with the new model boasting

an improved interior layout and a larger boot courtesy of a new spare wheel well under the boot floor. Chris Clarke, sales executive at FRF Mazda in Swansea, said: ‘The MX-5 is an exhilarating driver’s car and the Mk1 and Mk2 are classics in their own right. People who buy an MX-5 have a passion for driving – it’s not just about buying a car to get them from A to B. Once someone becomes an MX-5 owner, they find that nothing else quite compares.’ To our delight, the pokey lineup of 1.6- and 1.8-litre engines and its faultless rear-wheel-drive capabilities remained, with a mild power upgrade. Despite gaining a little weight, with most models tipping the scales at a couple of suitcases north of a ton, you could still properly wring the car out between corners and trust it would stick there. It was more practical, more refined and was a little more generous in terms of spec from standard than the first car, moving the MX-5 from the realm of the

THE KNOWLEDGE Model: MX-5 Arizona Price from new: £16,095 Engine: 1.6-litre, four-cylinder Power: 110bhp Top speed: 119mph 0-60mph: 9.4 seconds

enthusiast’s plaything to almost that of a sensible sports car for everyday use. By modern standards it still wasn’t great when it came to fuel economy – you might see 35mpg in mixed driving – but this could easily be forgiven. Ultimately, the Mk2 protected Mazda’s winning mix of creating an affordable and powerful two-seater legend, only providing more reasons to drive it all year round. The celebration ‘10th Anniversary’ model arrived in 1999 and was the first MX-5 to use a six-speed gearbox. This cut the motorway cruising engine speed from a fairly raucous 3,500rpm to a more refined 3,000rpm, improving the car’s more sensible credentials. An almost imperceptible facelift to the car came along in 2003, but the push for cars with better fuel economy brought about by the change in VED regulations in 2001 made the Mk2 lose a little of its popularity. By 2005, it had been replaced with the new Mk3.

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People who buy an MX-5 have a passion for driving CarDealerMag.co.uk | 51

FEATURE. MAZDA MX-5 CELEBRATION

Mk3

2005 – 2015 Not universally well received, maybe, but the all-new third-generation MX-5 moved the game on in a big way

hile the step from the Mk1 to Mk2 models was very small, 2005’s Mk3 represented an all-new model for the MX-5 and it would be fair to say that among enthusiasts it wasn’t an entirely well-received one. For a start, the Mk3 lost the fourwheel double-wishbone suspension of the first two generations, with a rear multilink instead. Moreover, the car had grown in all departments. Wider, taller and longer, the ‘NC’ MX-5 wasn’t quite the same proposition – to say nothing of the gain in weight. Engine options shifted to 126hp 1.8-litre and 158hp 2.0-litre MZR four-cylinder petrol units, both of which you could find badged as Duratec engines in the Ford Focus – Ford owning a third of the Mazda company at the time. Despite more power than ever before, the MX-5 was still no quicker than it had been a decade

“

It was simple, easy to use, nimble, reliable and fun 52 | CarDealerMag.co.uk

previously, thanks to the weight gain. Nevertheless, Mazda had kept much of the recipe that had worked for more than 15 years, and with a 50:50 weight balance front to rear the MX-5 was still a car for those who liked the bends rather than the boring bits between them. Tom Ash, sales executive at EMG Mazda Cambridge, explained: ‘It wasn’t over the top like other cars of that type. It was simple, easy to use, nimble, reliable and fun to drive.’ Where the NC did score highly, though, was civility. The Mk1 could be a bit of a trial for long and routine journeys, rattling and banging over every imperfection in the road and a little on the warm side on a summer’s day, while the Mk2 improved matters but was more of the same. This third-generation car was a more comfortable cruiser and better isolated from the elements. This was no better represented than by the MX-5 Roadster Coupe

THE KNOWLEDGE Model: Mazda MX-5 25th Anniversary Edition Price from new: £22,995 Engine: 2.0-litre, four-cylinder Power: 157hp Top speed: 7.6 seconds 0-60mph: 136mph

or PRHT – the Power Retractable Hard Top. This coupe-convertible model tapped into the demand for cars you could enjoy as convertibles in the nice weather but which were no different from regular fixed-roof cars for the remaining 363 days of the year. The car’s roof mechanism could raise or lower the metal top in just 12 seconds. Ash added: ‘The hardtop really pushed the market on for them. It was user-friendly and everyone loved it.’ At more than 1,250kg, though, the Roadster Coupe was the heaviest of the MX-5s, blunting even the 2.0-litre car’s 0-60mph sprint time to that of the very first 1.6-litre cars way back in 1989. Facelifted to match the rest of the Mazda range in 2008 and then again in 2013, the Mk3 MX-5 saw the model pass the significant milestone of its 25th anniversary in 2014, celebrated with a limited run of ‘25AE’ models like our car here.

Mk4 2015

to present

... and so to the present day – and the MX-5’s appeal is as strong as ever

e all asked that question... Could the fourthgeneration MX-5 possibly continue the legacy of its predecessors? Back in the summer of 2015, we answered yes. And when we pitched it against its family, our verdict remains unaltered. As the latest edition of Mazda’s iconic two-seater sports car, and the final model in the range to be endowed with the manufacturer’s fuel-efficient SkyActiv engine technology, the Mk4 has got it all – from looks and quality through to design and performance. Adam Rhodes, sales manager at Johnsons Mazda in Oxford, said: ‘MX-5s put the enjoyment back into driving. Ever since I began working for Mazda, I’ve committed to having the roof down on my MX-5 wherever and whenever I can – only heavy rain stops me! It’s handsdown one of the best cars I’ve ever driven and it’s equally a delight to sell. For me, the Mk4 is the star car of the four generations.’ Although some traditional MX-5 design cues are carried over, this is a completely new car with a wider stance and exaggerated curves, which make it look more masculine than the previous models. Under the bonnet, you can choose between either a 1.5-litre or a 2.0-litre petrol engine, both made as light as possible to keep the weight of the car to a minimum. The 1.5 offers 129bhp – a higher output than the Mk2 1.8-litre – while the 2.0-litre ups this to a more lively 159bhp. We were driving the 2.0-litre, and paired with the Mazda’s low weight and nimble chassis it provides more than enough power to have fun with. What’s more, it gives a much

THE KNOWLEDGE Model: MX-5 2.0-litre Sport Recaro Price from new: £23,295 Engine: 2.0-litre, four-cylinder Power: 159bhp Top speed: 133mph 0-60mph: 7.3 seconds

fruitier soundtrack as you climb through the rev range. Impressively, Mazda managed to equip the Mk4 with all the usual toys, including cruise control, heated leather seats, single-zone climate control and automatic lights. When we were caught out by the rain while filming in the mountains, you couldn’t help but feel a little smug if you were the lucky driver with the keys to the Mk4... However, its cosy cockpit doesn’t offer much space for storage. Then again, it never really did. Thankfully, its folding roof – which is just as simple as the Mk1’s to remove – doesn’t rob it of any further space. Mazda has kept

the MX-5 as simple as possible, ensuring that it remains a driver’s car before a show car. As well as the car being much more practical, safe and economical than before, Mazda has managed to do all this while decreasing the weight, too. For the price, there’s nothing to match the MX-5’s fun-to-drive, easyto-live-with ethos. Its well-developed chassis and electric steering mean that just about anyone can feel confident during those tail-happy moments out on the open road, and the fact we’d rather have a Mk4 MK-5 over many more expensive rivals is testament to Mazda and its commitment to its flagship model.

“

The car provides more than enough power to have fun with

CarDealerMag.co.uk | 53

FEATURE. MAZDA MX-5 CELEBRATION

ON THE

SHOP FLOOR When we came up with the idea of trying to sell an MX-5 ourselves, there was only one member of the Car Dealer team we could turn to... self-confessed Mazda nut Andrew Evans

s we’ve seen in previous pages – and as has been well documented before – the Mazda MX-5 is the world’s most popular two-seat roadster, notably passing the global million-sales mark this year. We’ve got a particular love affair with the car here in the UK, with more than 120,000 examples bought over the four generations. Amazingly, this makes up around half of the total European sales of the MX-5. With such popularity, the MX-5 isn’t something that needs a great deal of selling, so we thought we’d try our hand at it – after all, we made such a good job of selling 100 cars at BCA Blackbushe in issue 100. Luckily, Perrys Portsmouth Mazda was willing to let us (mostly) loose in the showroom for the morning... Fortunately for Perrys, I’m quite the Mazda nerd. Up until my wife went and broke the streak with some kind of non-Mazda car (I don’t know what it is... blue?), I’d bought seven successive Mazdas. Most are still in my possession, and one is two of them creatively put together. Three of those were MX-5s, and I could quite

happily tell you about the history of the brand, the meaning behind the badges and... wait, where are you going? Suffice to say I’m a Mazda know-all, so without any fear that I’d drive away potential customers with a lack of product knowledge, Perrys needed to waste no time whatsoever in getting me trained on the MX-5. Though the 5 holds an important place in the showroom here – right next to the sales desk – it’s got a lot of competition alongside it. Despite the MX-5’s popularity, it only makes up around 15 per cent of Mazda’s sales – and indeed, the first customers in the showroom aren’t there to look at a two-seat roadster but are interested in the CX-5 crossover SUV next to it. I find this odd as there are only the two of them, so the MX-5 would perfectly suit their needs, but to each his own and all that. Fortunately, before long some customers show up who are, quite rightly, interested in the MX-5, so it’s time for me to get to work and present the vehicle to them. Greeting customers is, it turns out, a bit of a

Sales executive Karen Searles, above, chats to Andrew before he’s allowed to talk to a customer, below right... but will he manage to seal a deal?

54 | CarDealerMag.co.uk

dark art. Some customers are keen for immediate interaction, while some prefer to be left alone for a little browse before having a Mazda acolyte teleporting into their vicinity with a deluge of information. Perhaps my people skills are a little off-kilter – I’d just come back from a week’s holiday where my only company was my dogs and my four-year-old daughter – but striking the balance is a talent I’ve clearly yet to master. The real salespeople keep both me and the prospective MX-5 owners pointed in the right direction. I’m more in my element with the car itself, and talking the potential buyers around the features and positives of the littlest Mazda is a breeze. Although I might be a little keen to head into a bit too much technical detail, there’s a decent crossover point between the technobabble and the relevance to customers.

Take Mazda’s SkyActiv branding, for example. For the owner, this simply means that the cars are designed to be lighter, more aerodynamic and more efficient in order to get more performance without winding on extra power. This means that the MX-5 can do more with less and not have the fuel economy suffer – something that even the most technologically-averse will understand, appreciate and desire – so I don’t have to talk about drag coefficients and compression ratios until their eyes glaze over. Showing the customer around the inside of an MX-5 is easier still. As a car aimed more at the way it drives than the life of luxury, it has a pretty fuss-free interior – but the first question is always where’s the glovebox? The MX-5 does without a standard bin under the passenger’s side of the dash, putting a lockable cubby between and behind the seats instead – which actually makes for decent knee room in the car. Compared with some cars that are a sea of interior buttons or an opaque system based behind the central touchscreen, there’s not a great deal to cover in terms of the interior so, as I say, it’s easy to explain. Once the prospective buyer has settled into the snug seating position, they only need know how to operate the keyless start, heater controls and heated seats. Mazda’s infotainment isn’t a complex beast either, with

the touchscreen backed up by a commander switch and dial on the top of the transmission tunnel. All of this could be covered at the final vehicle handover, of course. Customers are innately more interested in how the MX-5 drives than any other aspect of the car, and the test drive is the most important part of the sales process for this particular car. In fact, this aspect of the demonstration is so important that Perrys has come up with a unique test route for the MX-5 that, rather than taking in the urban and suburban delights of Portsmouth (I’m told that there are some), heads out into the hills to the north to sample some of the more interesting driving roads. For an antidote to the minutiae I’ve been waxing lyrical about for what probably seems like an hour, a quick run out to the countryside should get the customer on board. As it’s July, the weather is kind enough to get the roof off – personally, as an MX-5 nut, I’d have the roof off just about all of the time – and give the buyer a real taste of ownership. It’s a good bit of fun, but the half-hour trip is over too soon. It’s fair to say that the driver is, like a million people before her, rather smitten with the experience – probably helped along by the fact that I’ve kept my trap shut for 30 minutes. I’m not strictly allowed to do the financial part of the sale, but the Perrys salespeople allow me to have a little taste of the exciting world of number-crunching. I’m told that the look on my face as I stared at the computer screen is quite similar to the look on a customer’s face when I was talking about final drive ratios – that’s karma, I suppose. However, at the end of it all we have one happy customer leaving in her new Mazda MX5. So, about that commission... [CD]

The assignment was perfect for Mazda fanboy Andrew

Surprisingly, two customers listen to what Andrew has to say...

MX-5 BY NUMBERS

The number of MX-5s Mazda Perrys Portsmouth sells a year

16%

The proportion of Mazdas Perrys sells that are MX-5s

Sport Nav Perrys’ best-selling MX-5 trim

2.0

Perrys’ best-selling engine is the two-litre

Soul Red

Scuff plates

Perrys’ best-selling MX-5 colour

The most popular MX-5 option CarDealerMag.co.uk | 55

FEATURE. 100 DAYS OF TRADING UP

Merc work leads to a very tidy bonus JAMES BAGGOTT reports on the latest developments in his charity venture – he’s raising money for Great Ormond Street Hospital to help celebrate Car Dealer’s recent 100th issue

ell, August 24 is not looking that far away and the enormity of my challenge is now starting to well and truly sink in. When I took on the 100 Days of Trading Up task I knew it would be hard to fit it in alongside my ‘real’ job – and as my trades slow, I realise I was probably right. But that doesn’t mean there hasn’t been any action since last month. There certainly has been a bit, but first a little recap on what I’m up to. For those of you who missed our 100th issue, we launched my challenge to trade up as many cars as possible for Great Ormond Street Hospital. The idea was I trade the cars with dealers who give me a little more than CAP Clean for my current model and then let me have one worth a few quid more in exchange – their donation to the charity would come by way of the gap in the middle. So far, I’ve gone from a £100 Lexus LS430 (Lookers) to a Vauxhall Astra (Perrys) to a Peugeot 208 (Carshop). That last car was chopped in for a Mercedes E Class Estate with Jardine. When I left you last, I was having little joy shifting it to a dealer so decided to cash out, on the advice of Richard Hollis from Jardine, and put it through the auctions. So that’s what I did. Just a couple of hours after picking up the Mercedes, I was at BCA Blackbushe dropping it off. Hollis kindly offered me space in the Jardine sale taking place a few days later, but when I arrived at Blackbushe, manager James Gibson had a few concerns.

THE STORY SO FAR... 56 | CarDealerMag.co.uk

The Merc is given a thorough brush-up

Ian Lowrie-Kanaka, left, the sales manager at

The first was the wheels. The alloys had deep pitting on each corner and needed treatment, and despite the car being in a generally good state it needed a ruddy good clean. ‘Don’t worry, I have a plan,’ said Gibson. This, is a man I like. I’d paid £5k for the Mercedes so was hoping for a return of around £6k. With the clean-up operation Gibson had planned this might just be a possibility. First up, smart repair experts Penningtons went to work on the wheels –

removing the pitting and sprucing them up a treat. Gibson also enlisted the help of onsite valeting company Motorclean to give the Mercedes the once-over – and from the pictures they both did a cracking job – while local tyre firm ALS swapped the winter tyres it was wearing for the summer rubber that I’d left in the boot. A huge thank-you to all those firms that helped out our charity cause. Come sale day, I was sadly many miles away at

Lexus LS430

Vauxhall Astra

Handed Lookers £100 for Lexus. CAP Clean value £3,500

Perrys takes Lexus and hands over Vauxhall Astra Diesel. CAP Clean value £4,300

The place that provided our bargain A1

Sorting everything out for us to take the Audi

Wimbledon Audi, and James Baggott with the 11-plate A1 bought for a bargain £7,100 a meeting so waited for the phone to ring with the good news. At 2pm the text arrived. ‘It made £7,100!’ said Gibson’s message. Unbelievable! A full £1,100 more than I was expecting and a whopping £2,100 jump from the Peugeot I’d chopped it in for less than two weeks before. A few days later the cheque arrived. BCA had donated all its fees too so there were no deductions – a full £7,100 to spend on my next car. It wasn’t long before I’d blown the lot on

Peugeot 208

Perrys exchanges Vauxhall Astra and hands over Peugeot 208. CAP Clean value £5,000

the next step. A few emails with Marshall’s CEO Daksh Gupta and we had a winner – a pristine 11-plate Audi A1 with just 36k on the clock. Gupta had it advertised at his Wimbledon Audi site for £10,990 and with a CAP Clean value of around £9k things were looking up. I offered the Audi to a few of my contacts but struggled to find a taker – even the local Audi dealership wasn’t keen in the post-Brexit fog that is surrounding the motor trade. With that

Mercedes E Class 320 CDI Estate

Jardine’s Porsche Centre East London takes the keys to the 208 in exchange for the Merc. Sells at BAC auction for £7,100

And we’re good to go! in mind, and the August 24 deadline getting ever closer, I decided to send it to BCA too. Gibson said he’d be happy to help out again with the challenge, and considering the power of Blackbushe doing us proud on the Merc, I have high hopes for the Audi. Hopefully by next month I’ll have had another cheque to spend on a motor – and will have found some time to get it sold. But the way things are going, I can’t guarantee either… [CD]

Audi A1

Buy Audi from Wimbledon Audi for £7,100. CAP Clean value around £9,000 CarDealerMag.co.uk | 57

58 | CarDealerMag.co.uk

FOCUS ON.

Warranties

‘Why it’s time to develop a better warranty strategy’ W: autoprotect.co.uk T: 01279 456600

AUTOPROTECT

e are calling upon all dealers to review their performance when it comes to extended warranties. Looking at the retention, lifetime value and customer care opportunities, and with reference to the Consumer Rights Act, they really should have a growing role. This is the view of AutoProtect Director Nick Wake. AutoProtect is encouraging dealers to ‘re-boot’ their approach to extended warranties, moving them from a ‘necessary part of their sale’ with a short lifespan of three to six months, to an important retention and lifetime value tool. As well as enhancing the bottom line, a better warranty strategy, and in some cases product, could also protect both the bottom line and reputation in light of increasing consumer protection under the Consumer Rights Act, introduced last year. A comprehensive, clear, well-administered and fairlypriced warranty is something that many customers would value as part of a calculated purchasing decision, according to research undertaken in 2015. Sadly, that same research concluded that 78 per cent of consumers did not make a purchase because this value was not sufficiently built and because the price was prohibitive. Price and value are inextricably linked and creating sufficient value in an extended warranty to increase sales is behind Wake’s call for dealers to look again at their approach.

He said: ‘In a rapidly changing market, warranties need to rise from their slumber. A perfect point-of-sale product, they can help close a sale and protect both the dealer and customer. ‘Yet too often, their role in the sales and profit model is underplayed. All warranties are not the same and with a considered growth strategy and review of their product offering, an increase in sales can be achieved.’ While many customers did not buy an extended warranty, their value is made clear in the new car market with Trendtracker reporting that 68.5 per cent of new car owners highlighted their warranty AutoProtect as a primary reason for returning to the franchised Director Nick workshop for servicing, something that in turn Wake aids long-term retention. It is an opportunity for many dealers. As a starting point, Wake is encouraging dealers to consider the potential of offering longer extended warranties on their used stock to differentiate their proposition to consumers. It is a strategy that offers a degree of protection from any long-term problems that may surface courtesy of increased consumer protection in areas such as the Consumer Rights Act and would enable the dealer to get a better feel for how their customers react to the value of increased protection.

A Perfect Fit A warranty that’s a perfect fit for your customer and tailored to suit your pocket

line claims

NEW: Online claims

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Warwick House, Roydon Road, Harlow, Essex CM19 5DY • Email: sales@autoprotect.co.uk • Tel : 01279 456600 twitter.com/autoprotect

linkedin.com/company/autoprotect

CarDealerMag.co.uk | 59

60 | CarDealerMag.co.uk

FOCUS ON.

Warranties

Taking pressure away from dealers – and being second to none AUTOGUARD WARRANTIES

W: autoguardwarranties.com T: 03432 271499

inding the right warranty cover for every customer can be a tricky affair. With forecourts littered with used stock and following changes to the Consumer Rights Act, dealers need to be more cautious than ever when it comes to protecting their buyers and their business. This is where Autoguard Warranties can help, ensuring that neither buyer nor dealer ends up in a sticky situation. ‘Dealers need to be proactive rather than reactive when dealing with customers,’ explained chief executive Robert Dockerill, pictured below. ‘They can do this by buying cost-effective tools that enable them to streamline their activities and enhance profitability. Our range of products can provide dealers with access to real-time information and live claims, and their customers with a bespoke product, which is tailored to their individual requirements.’ Autoguard has been a warranty brand for more than 35 years and, following a reformation in 2008, has continued to go from strength to strength. The firm currently operates new and used car warranty programmes in more than 15 countries around the world and has access to ‘A’-rated underwriting for all of its schemes. Offering a range of comprehensive warranty products from Platinum and Premium to Select cover, Autoguard also provides Combination GAP, which includes a 60-month, unlimited mileage cover on vehicles under eight years old and under 80,000 miles. The firm is also branching out into the motorcycle and motorhome sectors. The company was formed by four individuals who, between them, have more than 100 years’ experience working in the motor trade. Autoguard has been a Financial Conduct Authority-approved firm since day one, paying testament to its dedication and intention to become one of the leading warranty providers across the world, dealing with claims in a firm but sympathetic

‘‘

manner. Autoguard now works with more than 900 dealers and provides 60,000 warranties every year. ‘We felt there was a gap in the market for a company to provide the highest possible levels of service in delivering warranties,’ said Dockerill. ‘We aim to be second to none, which is why we only employ industry experts who are experienced in working in the trade – formerly, our 10-strong team of claims staff were mechanics and service advisers, which enables them to fully understand what our dealers need. ‘Our aim is to take the pressure away from dealers. We do this by ensuring we can get access to our dealers to ensure we can fully understand a situation that arises within the dealership. We now have a 20-strong sales force, which has grown consistently at 25 per cent year-on-year. We now cover the whole of the UK.’ He added: ‘We’ve been FCAapproved since the start and extending our market presence is our aim for the next few months. Dealers stick with what they know, and once they’re on board they

We understand the needs of both the customer and the dealer and aim to assist in helping dealer upsell and profitability

tend to stick with us. The Consumer Rights Act and changes to it increasingly place responsibility on the dealer, who want to protect themselves – that’s why we’re directly linked with the customer and take the reins once the dealer has introduced us.’ Dockerill has been involved in warranty services for more than 20 years. Having started working for a leading insurer in the motor insurance market, he has since set up and run a large book of business, covering new and used vehicles in the UK, Middle East and continental Europe. ‘We understand the needs of both the customer and the dealer and aim to assist in helping dealer upsell and profitability,’ he said. ‘We don’t have a varied level of product offerings; we treat all of our clients equally and to the best of our ability, while also striving to be cost-effective. ‘We answer 98 per cent of all calls within 20 seconds and aim to hit 85 per cent of authorisations in one call.’ He added: ‘We understand that the services we offer must integrate with your existing processes, rather than dictating rules and exclusions, and we as a company adopt a hands-on and flexible approach to developing our partnerships with our customers.’ CarDealerMag.co.uk | 61

Becoming an RAC Approved dealer means you have access RACof Approved means youmotoring have access to toBecoming the power an of one the UKâ&#x20AC;&#x2122;sdealer most respected brands. the power of one of the UKâ&#x20AC;&#x2122;s most respected motoring brands. With over 8.2 million members, Approved Dealer status can With over 8.2 million in our network, Approved help drivemembers them to your forecourt. Dealer status can help drive them to your forecourt. Call us today and harness the power of RAC Approved status. Call us today and harness the power of RAC Approved status.

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Call: Call: Email: dealernetwork@rac.co.uk Email: dealernetwork@rac.co.uk Visit: rac.co.uk/getapproved Visit: rac.co.uk/getapproved

62 | CarDealerMag.co.uk

FOCUS ON.

Warranties

Progressing from a warranty to a complete used car proposition RAC

W: rac.co.uk/getapproved T: 0330 100 3807

ustomers in 2016 want a greater degree of reassurance than simply a warranty – they desire a complete used car proposition. This is the thinking behind the RAC BuySure initiative, which has been adopted by more than 250 dealers across the UK. Rather than simply adding a warranty to the cars on their forecourts, these members of the RAC Approved Dealer Network are able to provide a much higher degree of peace of mind. Sean Kent, director – corporate and independent dealers, said: ‘RAC BuySure is for customers who want a comprehensive support package around their used cars – and for dealers who want to differentiate themselves in an increasingly competitive market by meeting that need. The proposition itself is extremely convincing and, because of the strength of the RAC brand, has a huge degree of credibility.’ In fact, almost three-quarters (73 per cent) of used car buyers who purchased a car from a member of the RAC Approved Dealer Network said the RAC brand first attracted them to the dealership. Sean said: ‘Consumers rightly believe that the RAC would only put its name to a used car programme that meets the very highest

standards, and we work with dealers who have the commitment necessary to meet them. ‘Being part of the scheme does mean commitment from dealers, but they are rewarded with customers who are prepared to pay a little more for a vehicle of this quality. Our research indicates additional unit chassis profits of £200-300 while there is also reduced pressure to discount. ‘We are seeing success at all kinds of dealers ranging from one-man independents through to huge car supermarkets and even some franchises. As a proposition that has a high level of appeal to both used car buyers and dealers, it has undeniably hit a sweet spot in the market.’ n email dealernetwork@rac.co.uk

ALL ABOUT RAC BUYSURE RAC BuySure sees dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a car data check, and a minimum of three months of RAC Warranty cover. In support of this, the RAC will provide 12 months’ RAC Roadside breakdown cover.

250 DEALER MILESTONE PASSED AS DEALERS SEEK TO DIFFERENTIATE A ‘need to differentiate’ their business from competitors has been behind the RAC Approved Dealer Network passing the 250 mark. During 2015, the network doubled its number to just under 200 and plans to have around 350 in place by the end of this year. Sean Kent, director – corporate and independent dealers, explained that new dealers joining the network wanted to

distinguish their businesses and provide a comprehensive customer proposition that offered more than just a warranty. He said: ‘This is all about needing to differentiate. For independent used car retailers, the market is strong but very competitive and they want to mark themselves out from the businesses against which they compete. ‘This is the message that we hear from

them time and time again. If you can meet the standards that we demand and are genuinely committed to the highest levels of customer service, becoming an RAC Approved Dealer gives you access to the best respected brand in UK motoring and provides a comprehensive customer proposition. ‘It is a superb route to achieving that differentiation.’ CarDealerMag.co.uk | 63

Introducing The Used Car Product of the Year

WMS offer a range of regulated and non-regulated products and also an appointed representative facility free of charge subject to acceptance. If you want to generate more customers, improve retention and increase profitability across your used car operation, apply to offer the UK’s leading used car scheme, as endorsed by motor racing legend Sir Stirling Moss. Safe and Sound includes:

Sir Stirling Moss OBE Motor Racing Legend

Wear & tear warranty 24 hour rescue and recovery Vehicle safety inspection Provenance and mileage checks 24/7 operation so your customers can receive service at any time Regular contact and visits from our dedicated account management team Simple and quick claim submission, with all authorised claims paid within one working day – the industry’s fastest turnaround! Free and unlimited sales training Free point of sale and display materials, with the option of own-branded materials subject to volume Wide range of incentives for your customers And much more! Improv and ret ing profit margi ention ns since 2003

The wa

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Request a dealer pack at SafeandSound.co.uk or call our sales helpline on 01844 293810. 64 | CarDealerMag.co.uk

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FOCUS ON.

Warranties

An important strategic partner – and a friend of the business, too WMS GROUP

W: wmsgroupuk.com T: 01844 293 810

utting the customer first should be at the heart of any company’s operations – and it’s certainly the way The WMS Group does business. The WMS Group offers dealers award-winning car dealership warranty products and aftersales support, proven to generate customers for life. As the UK’s favourite provider of extended dealer warranties, The WMS Group supplies motoring products to more than 3,500 dealerships nationwide, including a growing number of the largest franchises. Their products enable you to minimise vehicle downtime, improve retention, boost cash flow and create additional profit streams. The WMS Group should be a familiar name to the readers of Car Dealer, having been awarded the Used Car Product of the Year trophy for its ‘Safe and Sound’ scheme at the 2015 Used Car Awards. Car Dealer recently caught up with Malcolm McIntosh, National Business Development Manager, who was keen to emphasise the firm’s approach. ‘Yes, we most definitely put the customer first,’ he confirmed. ‘The WMS Group is very focused on that. There are two customers in our world: one is the supplying dealer; then there’s their customer who becomes the policyholder. ‘In essence, we’re a service provider. We don’t get involved with a dealer’s customer until they have a need. It’s then important that we’re able to back up the supplying dealer by being the best of the best. First of all, the customer needs a quick decision on their claim – is it a covered component or isn’t it? If it is a covered component, we agree the cost with the repairer because at that point, we don’t want the customer to get involved with the claim.’ A key point to remember when considering a warranty partner is that the team at The WMS Group are incredibly easy to get hold of. Many of their competitors only work five days a week, while

‘‘

The WMS Group operates Monday to Saturday – and far beyond normal office hours as well. McIntosh explained: ‘To give great service and put the customer first, our claims hours are Monday to Friday 8am to 6pm with an out-of-hours team manning phone lines until 11pm. ‘This means that claims inquiries and authorisations are served 15 hours a day. ‘A service is provided from 11pm to 8am to respond to phone calls made during the remaining hours. ‘Claims calls are also handled throughout the weekend and Bank Holidays. ‘We’re in the service industry so we have to operate service hours. The 24-hour claim line is an integral part of the business and again it is all about putting the customer first.’ If our 24-hour society is a sign of the modern world in which we live, another is the neverending march of technology – and The WMS Group is constantly reviewing its offering to stay bang up to date. The app My Motor Manager is a great example of that – and makes life easy for everyone in these days of smartphone connectivity. The WMS Group also recognises that dealers’ margins are under pressure – and aims to help them improve their financial situation. ‘Mr Dealer is squeezed,’ explained McIntosh. ‘He doesn’t benchmark the values of his vehicles by what’s available in the towns or villages around him any more, he’s benchmarked nationally now,

We’re in the service industry so we operate service hours. Our 24-hour claim line is an integral part of the business – it’s all about putting the customer first.

by what appears on pages one and two of the internet. ‘He can’t make any more money out of the vehicles than he’s currently making. Where we can make the difference is by helping him make money out of his F&I. Particularly his warranty, his GAP, and other products such as rescue and recovery, MoT test insurance and service plans. ‘We aim to be a strategic partner to our dealers. We’re not just a warranty or a GAP provider. We are their strategic partner and wish to become a friend of the business.’ Perhaps a sign that The WMS Group is good at what it does is the fact that the company itself has thrived in recent years. ‘Thankfully, with our award-winning programme, being in touch with our dealers and constantly reviewing what we do and the way we do it, we manage to maintain the status quo,’ says McIntosh. ‘We must be doing something right, we’re still here!’ [CD] by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 65

Empathy {Noun} the ability to recognise, understand and respond to the needs of our referral partners and their customers

For 15 years weâ&#x20AC;&#x2122;ve demonstrated how to build unbeatable partnerships with automotive dealers and how to understand and exceed their expectations and the expectations of their customers

66 | CarDealerMag.co.uk

FOCUS ON.

Accident Exchange

Driving 15 years of customer satisfaction ACCIDENT EXCHANGE

n onward mobility programme is now as integral to a dealership’s P&L line as its F&I offering, says Steve Evans, CEO and founder of Accident Exchange. The company, acknowledged by many to have pioneered the adoption and integration of accident management within the franchised dealer network, celebrates its 15th anniversary this summer. ‘Back in 2001, onward mobility or ‘‘customer accident management’’ was not a revenue stream for manufacturers and their networks,’ he said. ‘Today, not only is it an integral driver of revenue, sold hours, OEM parts and sales of new cars, it is a significant tool in the retention of customers, their satisfaction and overall opinion of the brand and dealership.’ Since its inception, Accident Exchange has managed the post-accident experiences of more than 350,000 customers, generating an estimated £2bn in previously-lost revenue for its franchised and manufacturer partners. Today, it boasts partnerships with half of the UK’s top 50 dealer groups including the likes of John Clark Motor Group, Swansway Garages, Dick Lovett Group and Vines Group – the latter is now into its 14th year. Through its cumulative fleet of more than 41,500 different vehicle models, it has kept motorists mobile for a combined 7.95 million days in like-for-like replacement vehicles to deliver a near-perfect 98 per cent satisfaction rate for its dealer partners in the eyes of its customers. With more than 2.5 million accidents from car park scrapes to roundabout bumps recorded every year, the integration of a proactive, customercentric support service is a logical one especially

‘‘

Onward mobility is now an integral function in the success of a modern-day dealer and manufacturer.

W: accidentexchange.com T: 03700 116 720 when one in 20 go on to buy a new car. Steve Evans explained: ‘At first, it was not a natural step for dealers, but looking after customers in the event of an accident answered the all-important question of customer retention and satisfaction. Those that have always ‘‘got it’’ from the off are continuing to benefit greatly. ‘Our customers are their customers, which is why our investment in the best staff and intelligent back-office communication systems means we’re able to deliver, or surpass, the exacting values and expectations of the brand above the door of the dealer.’ And what of tomorrow and the next 15 years? ‘Onward mobility is now an integral function in the operational and financial success of a modern-day dealer and manufacturer,’ says Evans. ‘Technology is playing an ever greater role in delivering visibility and efficiency into the customer journey and relationship with the dealer, especially in the event of an accident. Harnessed, that culture of connectivity is only going to insure against the loss of customers to rival brands. ‘However, it will come as no surprise to dealers who rely on accident management programmes to support business objectives that I believe the industry will change. ‘Certain fundamentals will persist, though: the need to provide alternative mobility following an accident and the importance of customer

Dealers cannot risk a customer getting exposed to a rival brand during the accident repair process, says Steve Evans

satisfaction when things go wrong. In the medium term, this means a huge focus on making sure the experience is outstanding. ‘The educational role when it comes to consumer rights is shifting – Accident Exchange alone has dealt with 350,000 customers – so the experience must measure up to those high expectations in terms of service levels. ‘After all, any driver will know someone who has experienced how aftercare can help if they haven’t themselves. ‘From a defensive standpoint, as the OEMs’ focus on new model conquest sales intensifies, more than ever, dealers cannot risk a customer getting exposed to a rival brand during the repair process.’ n Accident Exchange is now part of the wider AIS (Automotive & Insurance Solutions) Group that incorporates fleet and courtesy car management software house DCML Ltd, telematics provider In-car Cleverness, ZeroMyExcess.com and motor fraud investigators, APU Ltd. [CD] CarDealerMag.co.uk | 67

N I JO

t s e t s a F e h t f o e v i one t o m o t u A g n i w o Gr s e t i s Web s h t n o m 6 r o f p u E n E R F Sig s h t n o m 6 t e g and TACT E

FOR MOR

N O C N O I T INFORMA

0333 0040 044 dealers@autovolo.co.uk

68 | CarDealerMag.co.uk

autovolo.co.uk/AreYouDealer

FOCUS ON.

Success stories

AutoVolo launches revolutionary new partnership scheme AUTOVOLO

W: autovolo.co.uk T: 0333 004 0044

utoVolo – one of the UK’s fastestgrowing automotive classified websites – has announced details of a truly revolutionary new scheme that will give dealers the opportunity to become a shareholder and have a voice in the turbulent industry. The scheme is quite simple: AutoVolo will make a 20 per cent stake of its total business available to the car dealer community, which will have a dealer panel and elected representative who will regularly meet the AutoVolo management team to discuss, analyse progress and help shape future requirements and support the dealers. Chief executive Stefan Voloseniuc commented: ‘By having a “voice” on the inside of the business it will provide more confidence to other dealers to join, knowing that they have a platform where they can have some input into addressing issues that the industry faces. ‘We believe that by offering the dealers this unique opportunity to join and support us, we can work together to become a real credible alternative, and in addition, our “shareholder members” will also get a share of all future profits of AutoVolo as long as they remain a member in the scheme.’ He added: ‘This is as close to a dealer-owned platform that you can get without all of the set-up and operational costs that go with it. We have already gone through that period and spent millions to get to where we are today. ‘Now we are offering a 20 per cent stake to the dealers, in a business that has huge potential with no upfront or entry fee required. This has to be unique. No other portal would, or can, offer this type of opportunity. ‘Together, we can make change, but it requires support and commitment from those involved plus one other key requirement, which is time – time to develop the brand and increase visitor numbers, as it doesn’t just happen overnight, and time is the one thing that no-one can actually buy. ‘We have a long-term brand-building plan, which is coming into place to support everything else and it is working.’ Stuart Askey, sales director, added: ‘Being privately owned and funded, AutoVolo is free from restriction and is able to react and implement things rapidly with no red tape or shareholder

approval. We have some interesting ideas and new approaches that we are working on to address some of the key issues that dealers face that have been well documented recently, such as price increases, finance commissions, PX tools, reviews, pricing tools, etc. ‘Initially, we are looking to select around 1,000 dealers who are prepared to join this unique scheme. All our partner dealers will have a benefit of a three-year price guarantee as long as they remain in the scheme. ‘Furthermore, as a 20 per cent shareholder, they can obtain a financial return in the form of a dividend payment from future profits. ‘Just imagine – in five years of working together we can achieve 50 per cent of Auto Trader’s market value, which is currently £3.4 billion. ‘This would put the value of the equity share of the shareholder group with a 20 per cent stake at £340 m. What other classified portal offers you this type of partnership?’ AutoVolo only launched at the end of August 2015 and now has more than 160,000 cars available online via around 4,000 franchised and independent dealers listing stock on the portal. It recently launched its first TV campaign across a wide range of channels and is on around 5,000 buses in major towns and cities, plus it has a presence on the London Underground. In addition to all of this, the company is on a long-term brand-building exercise and is working

with Tesco/Waves across 240-plus nationwide Tesco car park/car wash locations. These attract more than five million shoppers a week. Web traffic is growing quickly. Last month saw more than 500,000 visitors, and it is aiming for a million a month by December or sooner. However, if people want or require change then it needs actions and not just words, and AutoVolo is ready to take on the challenge and is interested to hear from dealers who would like to register their interest in being a part of this scheme. We are finalising a number of things from a legal perspective plus the overall requirements that both parties will agree to enter into under the terms of this unique partnership agreement. Once things have been finalised then further details will be made available. To register your interest in being one of the ‘1,000 Voices members’, then send an email to 1000voices@autovolo.co.uk [CD] CarDealerMag.co.uk | 69

DASHBOARD. FEATURE.

Ask Lawgistics .com

Q A

Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it

What is the best way to sell old part exes? We have often been asked this since the introduction of the Consumer Rights Act 2015 (CRA). We see dealers selling part-exchanges on ‘unroadworthy’ or ‘spares and repairs’ invoices but this is not advised unless the vehicle really is unroadworthy; in other words, has no MOT and cannot be test-driven or driven away. Of course, a 12-year-old vehicle which has covered more than 150,000 miles is never going to be as good as new but, if it is roadworthy, you cannot call it unroadworthy just to try to deny the consumer their statutory rights under the CRA. You are best advised to list any faults or issues in any advert and also list these on the order form before the customer signs. Avoid phrases such as ‘perfect drive’ or ‘excellent condition’ and ensure that all advertised components are working. For example, if the vehicle is listed as having a CD player then it will need to be working – in this regard also be wary of auto-populated advertising portals. In short, be as honest as you can. If the consumer got what he paid for, then they will find it hard to raise a successful complaint.

Trade plate particulars . . . Q A

Can I use trade plates for a jolly? Having witnessed a number of cars sporting trade plates in the car park at CDX16 recently, it might be helpful to remind some of the readers of the permitted uses of trade licences. Trade licences must be used only for the particular business purposes for which they were issued, to include: l to test or trial a vehicle, its accessories or equipment during or immediately after construction, modification or repair l for a return journey to a public weighbridge or for registration or inspection by an authorised official l to undertake a test trial for the benefit of a prospective purchaser or the press l to demonstrate the operation of a vehicle, its accessories or equipment, when being handed over to a purchaser and delivering it to the place where they intend to keep it l for moving vehicles:

– for valeting or accessory fitting between traders’ premises. NB: This does not apply to drive-through car or hand washers open to the public – to a workshop where special equipment or accessories are fitted – between traders’ premises and a place where it starts or finishes a journey – between traders’ premises and auctions or other places of sale l to and from places of test or inspection and for going to a place for breaking and dismantling A motor trader may use the trade licence on mechanically propelled vehicles only if they are temporarily in their possession in the course of their business. A vehicle tester may use the trade licence only on vehicles submitted to them for testing (including the vehicle’s trailer, its accessories or equipment). (Source: DVLA Guidance Notes VTL301G)

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

70 | CarDealerMag.co.uk

Receive a month’s free management when you book a three-month pay-per-click campaign Autoweb Design has achieved exceptional results with automotive pay-per-click (PPC) campaigns and is a recognised Google Partner. PPC is a hugely successful way to advertise your business and stock online, targeting relevant customers and widening your digital reach. That’s why we’re offering Car Dealer Club members an exclusive deal of one month’s free management when they book a three-month PPC campaign with us. We’re sure you’ll see fantastic results.

Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. (*subject to vetting)

Exclusive five per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.

What if warranty firm fails to pay?

I put a 12-month warranty on every vehicle under 10 years old. Am I still liable if the warranty company does not pay out? A consumer’s statutory rights are separate from those contractual rights set out under a warranty. There is no law to say you have to provide a warranty, but if you do, its terms have to be clearly written out and given to the customer. If a warranty company refuses to pay out then you could be liable if the fault is covered under the Consumer Rights Act 2015 (CRA) or, conversely, you may not be liable if it is not covered by the CRA. Genuine wear and tear is unlikely to be covered by the CRA, as is anything that doesn’t make the vehicle not of satisfactory quality. Of course if you run your own warranty scheme, such as one of the options administered by Lawgistics, you have more control over what is covered but, if your insurance warranty won’t pay out, yes you will be liable if the issue is covered by the CRA.

WHY I JOINED CAR DEALER CLUB

‘Safety net’ relief as customer seeks refund despite repairs and offer of a replacement TONY Dale sought Lawgistics’ advice in March this year after a car he had sold the month previously was returned to his dealership for a repair to a leaky sunroof. Now, four months later, the 2012 Audi A6 Avant is occupying storage space in his 40-car, Norfolk-based dealership after the customer refused to accept the repaired vehicle back and instead demanded a refund. ‘We had the car in and we thought that the problem was with the windscreen,’ explained Dale. ‘So our windscreen company fitted another screen, but we later found that it wasn’t coming from there and the customer brought it back for a second time to be rectified.’ It was only once the second repair had been carried out and the car was ready to be returned that the customer suddenly changed his tune. ‘He then decided that he had lost faith in the car and didn’t want a model with a panoramic roof, because “what if it goes wrong again in 12 months?” ‘We said anything can go wrong but we can guarantee that it’s been repaired and fixed, and shouldn’t.

‘And then he decided that he wanted his money back.’ It was at this point that Dale turned to Lawgistics, which told him the customer did not have the rights that they believed they had. ‘We acted under his instructions, and if his instructions had been that he wanted a refund within the first 30 days we would have respected that. But he only asked for the problem to be rectified and didn’t ask for a refund until we had completed the work on his request.’ Despite Dale offering a replacement vehicle the customer still insisted on his money back plus costs. A stalemate has been reached, with litigation threatened some two months ago but nothing heard since, and Dale said he was glad of the support of Lawgistics, which he called a ‘safety net’, adding: ‘They’ve been very helpful.’

WANT TO UPGRADE? LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There really is a package for everyone with Lawgistics.

EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM

AND ALL FOR JUST £39.99

2. HIT SUBSCRIBE

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Get 10 per cent off App Creatives development costs for your exclusive app

Book an appointment with Paragon Car Finance and get £50*

Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.

At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.

3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST 5. OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM

* Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.

Dragon2000 CarDealerMag.co.uk | 71

DATA FILE.

Thestatistics

SMMT Sales Data

Taking Stock

Has Brexit hit new car sales? Too soon to tell, says SMMT Figures for June – the month of the EU vote – reveal a 3.2pc increase

he UK new car market grew by a steady 3.2 per cent in the first six months of the year, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). So far in 2016, 1,420,636 new cars have been registered – the best half-year performance ever recorded. Growth was reported across all fuel types, with diesel and petrol registrations growing 2.3 per cent and 3.0 per cent respectively in the year-to-date. Meanwhile, alternatively-fuelled vehicles (AFVs) continued the significant gains seen over previous months, up 21.3 per cent compared with the first six months of 2015. AFVs now account for 3.2 per cent of the overall new car market. Demand in June eased slightly, with a 0.8 per cent fall in registrations, meeting expectations that market growth would stabilise following a record 2015. Fleet registrations

continued the trend of recent months, driving the market with a 4.5 per cent rise and compensating for a 4.5 per cent drop in private registrations. Mike Hawes, SMMT chief executive, said: ‘It is far too soon to determine whether the referendum result has had an impact on the new car market. ‘The first six months saw strong demand at record levels but the market cooled over the second quarter. ‘It’s important that the government takes every measure to restore business and economic confidence

to avoid the market contracting.’ Richard Jones, left, managing director of Black Horse, one of the UK’s leading motor finance providers, and part of Lloyds Banking Group, said: ‘It is natural to see figures cooling after the incredible growth of recent years. We know that some key drivers of growth such as the increased penetration of PCP are already very high so cannot simply continue to grow at such a pace. ‘However, despite potential increased challenges in H2, the approach of Black Horse will not change – we remain committed to keeping dealers central to the car-buying journey.’ The best-selling models for June were as follows: Ford Fiesta (11,357 examples registered); Vauxhall Corsa (8,837); Ford Focus (6,833); Volkswagen Golf (6,775); Mini (6,284); Nissan Qashqai (5,832); Vauxhall Astra (5,628); Volkswagen Polo (4,930); Vauxhall Mokka (4,356); Mercedes-Benz C Class (4,112). James Baggott, p90

SMMT sales data June/year to date

Top

Most-improved manufacturers in June

Infiniti +447% DS +130% Jeep +60% MG

+43%

Renault +37%

Bottom

Worst-performing manufacturers in June

How Infiniti is ‘driving forward in all areas’

Chrysler -100%

THE top-performing manufacturer in June was Infiniti. So far in 2016, the brand’s new car registrations already exceed the total for the whole of 2015. In fact, the month proved to be a huge success for both Infiniti’s fleet and retail sales, with registrations climbing 447 per cent compared to the same month last year. Retail registrations alone were up 400 per cent compared to June 2015. This rapid rise positions Infiniti as one of the fastest-growing 72 | CarDealerMag.co.uk

Lotus -73%

automotive brands in the UK. Barry Beeston, country director for the UK, commented: ‘Infiniti continues to drive forward in all areas of the business. ‘The network is currently benefiting

from the continuous introduction of new models. ‘The recent introduction of the two UK-built products of the Q30 and QX30 is making a serious impact. ‘Adding the stunning Q60 coupe, due later in the autumn, means this momentum is set to continue.’ The latest Sunderland-manufactured Infiniti QX30, with its 2.2 diesel engine, all-wheel drive and DCT transmission, is now available in Infiniti showrooms with a starting price of £29,490.

Chevrolet -100% Mitsubishi -41% Dacia -23%

VAUXHALL -14%

HONDA +17%

Figures supplied by SMMT

June 2016

Marque

2016

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Peugeot Porsche Renault SEAT Skoda smart Ssangyong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

409 415 85 14,503 188 18,712 0 0 6,005 1,957 1,772 6,442 30,244 5,144 8,294 569 2,922 1,473 8,403 5,669 1,370 9 162 4,014 15,566 336 8,718 1,257 13,785 8,773 1,002 9,156 4,245 9,035 1,005 392 325 3,358 9,928 25,578 19,196 4,824 76 450 255,766

% market share 0.16 0.16 0.03 5.67 0.07 7.32 0.00 0.00 2.35 0.77 0.69 2.52 11.82 2.01 3.24 0.22 1.14 0.58 3.29 2.22 0.54 0.00 0.06 1.57 6.09 0.13 3.41 0.49 5.39 3.43 0.39 3.58 1.66 3.53 0.39 0.15 0.13 1.31 3.88 10.00 7.51 1.89 0.03 0.18

June 2015

2015

210 428 93 14,024 148 17,242 1 19 7,466 2,568 768 6,562 33,055 4,394 8,204 104 2,200 918 7,707 5,044 1,240 34 133 3,486 13,055 234 7,166 2,142 15,771 10,004 1,004 6,654 5,049 8,135 804 379 245 3,089 9,801 30,022 23,670 4,317 56 172 257,817

% market share 0.08 0.17 0.04 5.44 0.06 6.69 0.00 0.01 2.90 1.00 0.30 2.55 12.82 1.70 3.18 0.04 0.85 0.36 2.99 1.96 0.48 0.01 0.05 1.35 5.06 0.09 2.78 0.83 6.12 3.88 0.39 2.58 1.96 3.16 0.31 0.15 0.10 1.20 3.80 11.64 9.18 1.67 0.02 0.07

% change 94.76 -3.04 -8.60 3.42 27.03 8.53 -100.00 -100.00 -19.57 -23.79 130.73 -1.83 -8.50 17.07 1.10 447.12 32.82 60.46 9.03 12.39 10.48 -73.53 21.80 15.15 19.23 43.59 21.66 -41.32 -12.59 -12.31 -0.20 37.60 -15.92 11.06 25.00 3.43 32.65 8.71 1.30 -14.80 -18.90 11.74 35.71 161.63 -0.80

2016 2,005 2,705 467 89,521 961 91,610 3 0 37,781 13,445 9,436 33,324 171,192 32,449 48,077 1,565 16,597 7,600 46,343 42,559 7,416 140 712 26,381 88,603 1,896 33,963 10,544 78,582 54,776 6,712 44,570 24,634 42,233 5,743 2,342 1,828 19,944 54,504 132,947 109,566 22,629 423 1,908 1,420,636

Year-to-date (YTD) % market share 0.14 0.19 0.03 6.30 0.07 6.45 0.00 0.00 2.66 0.95 0.66 2.35 12.05 2.28 3.38 0.11 1.17 0.53 3.26 3.00 0.52 0.01 0.05 1.86 6.24 0.13 2.39 0.74 5.53 3.86 0.47 3.14 1.73 2.97 0.40 0.16 0.13 1.40 3.84 9.36 7.71 1.59 0.03 0.13

2015

1,078 2,612 496 86,009 732 80,363 4 129 45,483 14,463 794 32,676 177,150 27,653 46,743 609 9,882 5,354 42,248 36,164 6,929 187 778 23,548 74,803 1,670 31,304 13,190 83,423 57,337 6,192 36,840 27,327 39,468 3,520 1,355 1,667 17,687 53,945 142,434 120,064 21,156 379 1,044 1,376,889

% market share 0.08 0.19 0.04 6.25 0.05 5.84 0.00 0.01 3.30 1.05 0.06 2.37 12.87 2.01 3.39 0.04 0.72 0.39 3.07 2.63 0.50 0.01 0.06 1.71 5.43 0.12 2.27 0.96 6.06 4.16 0.45 2.68 1.98 2.87 0.26 0.10 0.12 1.28 3.92 10.34 8.72 1.54 0.03 0.08

% change 85.99 3.56 -5.85 4.08 31.28 14.00 -25.00 -100.00 -16.93 -7.04 1,088.41 1.98 -3.36 17.34 2.85 156.98 67.95 41.95 9.69 17.68 7.03 -25.13 -8.48 12.03 18.45 13.53 8.49 -20.06 -5.80 -4.47 8.40 20.98 -9.85 7.01 63.15 72.84 9.66 12.76 1.04 -6.66 -8.74 6.96 11.61 82.76 3.18

CarDealerMag.co.uk | 73

DISCOVER HOW EMBRACING CHANGE CAN BOOST SALES At Black Horse, we’re investing in our dealer partnerships to give you the systems, support and insights to guide you through the ﬁnance regulatory changes and grow your business.

DISCOVER A BETTER WAY OF DOING BUSINESS

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TAKE A LOOK AT OUR DEALER VIDEO CASE STUDY AT: blackhorse.co.uk/dealerportal

TAKING STOCK. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that are important to dealers for the months ahead

Cars in the best condition will do well – but honesty and accuracy are crucial There’s little to be gained by placing over-aspirational reserve prices on poor condition cars, says Simon Henstock, BCA’s chief operating officer for the UK

sed car values stalled in June following two consecutive months of record values in the wholesale markets. With seasonal pressures coming into play as the markets slow for the summer holiday period, the headline average value of a used car fell by £63 (0.76 per cent) to £8,198 – although this figure is the second highest monthly average value on record. Year-on-year, the headline figure was up by £440, equivalent to a 5.6 per cent increase in average values. Values fell by £237 (2.3 per cent) in the fleet and lease sector, while partexchange values reached record levels, although the rise of £17 to £4,507 was marginal. Nearly-new values fell by £452 (2.2 per cent) to £20,042, although, as we are always at pains to point out, model mix has a significant effect in this lowvolume sector. The summer months typically see some pressure exerted on average values, so we are not surprised to see the headline figure drop in June, as it did last year. Supply and demand are reasonably well balanced, with conversion rates remaining relatively stable and buyers are continuing to compete strongly for good retail-quality stock. While cars presented in the best ready-to-retail condition will typically outperform the market, vendors should not expect similar returns for vehicles in poor or below average condition. It is important to appraise vehicles honestly and accurately as there is little to be gained by placing over-aspirational reserve prices on poor-condition cars. Looking at the average price performance by

model shape, values were generally flat in June, although there was a spike in convertible values in anticipation of warmer weather and a fall in 4x4s, which tend to reach a low point in the summer. There was little significant movement in the larger-volume sectors, with hatchbacks down 0.87 per cent, MPVs rising by 2.7 per cent and saloons up by 0.3 per cent. Values fell by £237 (2.3 per cent) in the fleet and lease sector, following four consecutive month-on-month improvements. Retained value against original MRP

Headline average value of a used car

£8,198

(Manufacturer’s Retail Price) fell marginally to 41.3 per cent from 41.9 per cent in May, with age and mileage steady. Average values for dealer part-exchange cars improved for the fourth month running and we saw the third consecutive record value, although the rise was again modest at £17. Values averaged £4,507 in June, with year-on-year values ahead by £129 (3.0 per cent), with age static and mileage declining. Nearly-new values fell in June, by £452 (2.2 per cent) to £20,042, although, again, model mix has a significant effect in this low-volume sector.

Average value for dealer part-exes

£4,507

CarDealerMag.co.uk | 75

AUCTIONS.

Henstock AUCTION STATIONS

Benefits of retaining retail-ready vehicles James Tomlinson, managing director of Motor Auction Group, with Daniel Green of Knight Frank

Bawtry relocates and grows to become MAG Rebrand follows recognition of need for expansion

long-established Yorkshire motor auction business has relocated from Bawtry to a larger refurbished site in Rotherham. The move has seen Bawtry Motor Auctions rebrand to Motor Auction Group (MAG) and move into a new seven-acre base at Carr House in Greasborough Road. MAG has increased its throughput from 400 vehicles to more than 500 vehicles per week, with a dedicated 15,000 sq ft auction house, which has undergone a full restoration to concourse condition in readiness for the move. Bawtry Motor Auctions was established in 1947, selling as many as 300 vehicles per week from its former site at Scott Lane in Bawtry. James Tomlinson, managing director of MAG, said: ‘The company has grown considerably over the past few years and we knew that there was a need to expand as we aimed for sales of more than 300 cars per week. ‘It was clear to us that the Bawtry site was no longer sufficient and we spotted an opportunity to acquire the Rotherham site. There was a lot of work to secure the site and to make the changes required, so we appointed Knight Frank, which

worked alongside Mark Roberts, our business development manager from BHP Consultancy, to organise the logistics and practicalities of the relocation.’ Daniel Green, partner at Knight Frank, said: ‘We were appointed by Bawtry Motor Auctions to manage the acquisition of a new site, including lease agreements surrounding the company’s planned move, which was a substantial body of work. ‘It included an acquisition survey to determine the new property’s condition and identify any significant issues or repair liabilities either during the term or in respect of dilapidations on lease termination. ‘We advised on lease repair, reinstatement and decoration covenants contained within the lease to mitigate the client’s liability. The schedule was prepared to record the condition of the premises at the start of the term and we arranged planning applications for change of use and new signage. ‘Finally, we undertook design and contract administration services for the internal refurbishment and alteration works to bring the premises to Motor Auction Group’s operational requirements.’

aving good-quality data and using it effectively is key to making sound business decisions – and nowhere is this more apparent in the part-exchange process. With car buyers increasingly doing their research before they visit the dealership and having access to better information than ever before, woe betide the salesperson who doesn’t get their sums right at the part-exchange stage. To assist, BCA has worked closely with dealer groups to develop the BCA Dealer Pro tools. As well as helping car dealers standardise their vehicle appraisals in a professional and customer-friendly manner, they provides accurate market valuations, capture retail-quality photographs to be used across various sales channels and manage the partexchange inventory and vehicle disposal process. A key element of BCA Dealer Pro is helping dealer groups identify and retain retail-quality vehicles within the group, maximising profit opportunities. Dealer groups can use the system to tailor the buying process to meet their needs, specifying that any partex franchise vehicle within certain age and mileage parameters should be seen by the group buyers. Dealer Pro automatically filters the vehicles when matches arise and alerts the group buyers. It shows that dealers, on average, could retain between seven and 10 per cent of vehicles that might otherwise be traded, keeping valuable retail-quality stock within the group. The dealer-to-dealer functionality allows details of incoming part-exchange vehicles to be shared with dealers within the group in real-time, generating additional selling opportunities while the retail customer is still on-site. The end result is a happy customer getting a fair deal on their part-exchange and another car sourced for the group inventory. No-one can afford to let profit slip through their fingers so make the most of those PX opportunities.

Who is Simon Henstock? ‚

He is BCA UK s Chief Operating Officer – Remarketing. Visit bca.co.uk or call 0845 600 6644.

MAJOR CORPORATE FLEET & MANUFACTURER CAR AUCTIONS 3 100’s of Professional buyers every Thursday 10am – 300 fleet vehicles at Rockingham and Belfast 3 Live Bid 2 online technology available from smartphone and tablet 3 Buy with confidence - corporate vehicles subject to mechanical health check and 20+ digital images 3 Competitive buyer fees - buy five cars or more and qualify for Platinum rates

ENTRIES INVITED FROM CORPORATE VENDORS WORLD CLASS FACILITIES – FIRST RATE SERVICE Click www.cityauctiongroup.com for vehicle details, images and NAMA inspection reports 76 | CarDealerMag.co.uk

Ninth year of Auto Trader Click Awards hailed a huge success. bit.ly/clickawards

BCA exceeds expectations with its first full-year results Landmark year also announced for WeBuyAnyCar.com subsidiary

CLASSIC SALE

Historic Lotus Elite to be sold

CA Marketplace has announced its maiden full-year results since it was floated in March 2015. Its operating profit was £16.3m on a total revenue of £1,153.1m, according to the automotive wholesale and services group’s report, reflecting the 12-month trading period following the acquisition of the BCA Group, with statutory earnings per share of 1.2p and adjusted earnings per share of 7.1p. More than 1.1 million used vehicles were sold through auctions across the UK and internationally. Executive chairman Avril PalmerBaunack said: ‘We are pleased to announce this strong set of maiden results, exceeding market expectations and delivering an attractive dividend. ‘Our physical infrastructure, market-leading IT systems, valuation tools, data and most especially our customers and experienced and committed employees are at the heart of our business and have supported this strong performance in our first full year as a listed group. ‘The BCA Group is the UK and Europe’s largest used-vehicle remarketing exchange. With our continuing development of the exchange, remarketing products, enhanced full service offerings and market-leading true transactional data, we continue to be the partner of choice in the automotive sector. ‘The new financial year has begun well and the board remains confident of the group’s performance. The team will continue to focus on our Car dealer new strip ad 3/16 recently-launched T4G programme

BCA Marketplace made a net operating profit of £16.3m in the last financial year (Together for Growth), delivering exceptional service and innovation to our customers, a positive working environment for our employees and a financial return for our shareholders.’ The group was formed to build a cohesive, broad-based services business in the automotive sector. The acquired BCA Group provides the strong platform at the core of the business. It is the market leader in the UK and all of the key markets in which it operates, and it also owns We Buy Any Car, the UK’s largest vehicle-buying service. According to BCA Marketplace, 783,000 used vehicles were sold in the UK and 333,000 in Europe. 7/3/16 13:27 Page 1 Meanwhile, 1.5 million vehicles

THE FLEET AUCTION GROUP - THE UK’S

N1 O

TRADE ONLY AUCTION

were transported via the UK’s largest transporter fleet (540 vehicles), representing 20 per cent of the UK vehicle transportation market. The report also revealed a landmark year for WeBuyAnyCar.com, bought by BCA in 2013 and which has achieved the strongest year-to-date with a total 172,000 cars traded. Meanwhile, BCA Dealer Pro valuation software rolled out to more than 1,000 dealers, with 460,000 valuations and 893,000 MarketPrice valuations. From the dock to defleet and beyond, BCA is involved with more than 3.5m vehicles a year, working with OEMs, fleet operators and dealers to provide the backbone of the UK’s automotive supply chain.

THE very first production Lotus Elite – bought new by jazz legend Chris Barber, and recently restored for Channel 4’s For the Love of Cars – will be auctioned by Silverstone Auctions at the Silverstone Classic Sale on July 30. This 1958 Lotus Elite Series I, chassis 1009, was displayed at the 1958 Earls Court Motor Show. It was then bought by Barber – one of Colin Chapman’s most favoured customers and a personal friend – in December 1958. Barber raced it extensively for five seasons in top-level international sports car events in the UK and abroad. Silverstone Auctions managing director Nick Whale said: ‘This car represents a unique proposition for buyers wanting to race in top-level historic motor sport or add to a stable of historically interesting cars.’ Hidden in storage for many years, the car has just emerged from a top-quality, exacting restoration by Ant Anstead’s team at Evanta Motors with assistance from Lotus marque experts. It is estimated to fetch between £75,000 and £100,000.

Purpose built 12 acre auction complex Central UK location Fixed cost buyers premium Fleet Car Sales every Monday & Thursday at 10am Collection of vehicles 24 hours a day, 7 days a week Excellent variety of weekly stock from premium sources Regular Top Car Sales. Vans, Truck & Plant every week Enclosed and heated auction halls and viewing area All new website & stock locator. On-line bidding The UK’s finest auction restaurant Call for account application

The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com CarDealerMag.co.uk | 77

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In-Depth Video Shows How Fast F1 Drivers Really Are

Turkish Racer Hits 249mph In Supercharged H2R

Thanks to Sky F1 and some excellent software, we’re now able to see just how fast Formula One drivers have to be to get round the track in some of the most brutal vehicles ever built. superunleaded.com/?p=15182

Think about the fastest you’ve ever driven, double it and add 100. It probably still won’t be close to the 249mph reached in 26 seconds by World Supersport champion Kenan Sofuoglu. superunleaded.com/?p=15160

Cabbie Makes It A Fare To Remember At Nürburgring

GP3 Driver’s Brakes Fail, Massive Crash Follows

A BMW 2 Series Gran Tourer taxi driver forgot the crucial rules of tackling the notorious Nürburgring and very nearly came a cropper, with a save to remember. superunleaded.com/?p=15220

A GP3 driver got a shock when his brakes failed during practice at the Red Bull Ring in Austria. Giuliano Alesi shot off the track and into the tyre wall. Ouch. superunleaded.com/?p=15161

Pagani Builds Yet Another One-Off Zonda, We Go Weak

Loren Healy Buys Milk – And Doesn’t Take A Normal Route

Remember when Pagani started making the Huayra in place of the Zonda? Yeah, so do we. Someone needs to tell Horatio Pagani himself, ’cos he’s just released yet another Zonda! superunleaded.com/?p=15070

Loren Healy, who is the all-time-winningest driver in the Ultra4 Series, went to grab some milk for ‘The Wife’ and decided to take his Ultra4 off-road buggy. Very nice. superunleaded.com/?p=15087

10 Things We Learned In A Chat With Lewis Hamilton

Study Says Bikers Are Sexier Than Car Drivers. WHAT?

We were among a small group of journalists given the chance to chat with F1 champion Lewis Hamilton at the launch of the new Mercedes-AMG GT R. Here’s what we learned. superunleaded.com/?p=14989

The battle between bikers and car drivers over who is superior has raged for years, and now a study claims to have picked a winner – in the attractiveness stakes, at least. superunleaded.com/?p=15157

MARKET INSIGHT.

..in association with ASE-global.com

Share prices take tumble in wake of the Brexit vote But it’s difficult to predict anything with any certainty at the moment, says Adam Cottam

otor retail share prices fell dramatically in the fallout of the UK’s decision to leave the EU. Although there has been some recovery, shares remain substantially behind their pre-Brexit price and this has coincided with the falling pound. Until the UK’s exit formally begins under Article 50 of the Lisbon Treaty, the period of uncertainty will remain, most likely harming the UK economy, including the UK motor trade. The signs are not great for the short to medium term, although the majority of manufacturers have confirmed there will be no substantial changes to the way they do business in the UK until the terms of our exit are known. Aside from the EU referendum, there was very little activity involving the listed UK motor retail groups. There weren’t any profit statements, although two transactions did occur. Vertu bought Gordon Lamb at the start of the month and in early July, Cambria bought the North London Jaguar Land Rover business from Pendragon. UK motor retail share prices fell significantly in the wake of the British people’s decision to leave the EU. Across all industries, share prices have fallen, although some have recovered in the days following the vote, indicated by the FTSE 100 rise compared to the end of May. The main reason for this reaction is the uncertainty that now exists, given that at the time of writing, the UK still had to find a new Prime Minister and formally confirm its intention to leave the EU to the other member states. A major problem is that those steps will take time and negotiations won’t begin until potentially 2017. This is making

Share price movement from January 1 to July 7, 2016

Share price movement from January 1 to May 31, 2016

Pendragon

62.4%

87.8%

Vertu

50.8%

75.9%

Lookers

50.8%

80.9%

Inchcape

81.8%

86.8%

Cambria

81.3%

98.1%

Caffyns

93.6%

105.5%

Marshall

83.7%

98.6%

investors nervous, affecting the markets with the general volatility we have seen over recent weeks. Sterling has also been affected, reaching its lowest value against the dollar in 31 years. The currency has seen similar falls against the Euro which will make cars more expensive to import from abroad. The manufacturers that build cars in the UK will see the opposite effect representing an opportunity for their exports to Europe and the wider world. Most manufacturers have responded to ‘Brexit’ by stating nothing will change until the terms of the UK’s exit are known, although PSA have

warned they are reviewing prices of their vehicles imported to the UK to protect their interests. It’s very much a case of ‘wait and see’ for the UK motor industry until negotiations begin and a harmful environment of uncertainty will exist in the interim. Financial performance There were no performance statements from any of the listed motor retail groups. Several commentators have predicted that unit registrations will slow and possibly fall in 2017 and 2018 following the result of the referendum. However, nothing can be predicted with any certainty until the political and regulatory landscape is known later this year once Article 50 of the Lisbon Treaty is invoked and the official exit process begins. Transactional activity It has been a fairly quiet month for transactions involving the listed groups, as several adopted a policy of holding off major investment decisions until the result of the EU Referendum was known. Earlier in the month, Vertu completed the purchase of Derbyshire-based group Gordon Lamb adding five dealerships to their portfolio. This included a sixth Land Rover business and introduced them to their first Toyota representation. The deal was worth £18.7m, £8.3m of which was goodwill. Early in July, Cambria purchased the North London Jaguar Land Rover business from Pendragon for £2.1m. Having paid £2.0m goodwill, the group has committed to relocating the operation in order to achieve the JLR Arch corporate identity concept.

Who is Adam Cottam? He’s corporate finance executive at dealer profitability specialist ASE plc. You can read ASE’s column here every month. CarDealerMag.co.uk | 79

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RECRUITMENT.

New director of Volkswagen Passenger Cars is appointed

APPOINTMENT

James named as general manager

A NEW general manager has been appointed at Wessex Garages’ dealership in Mercia Road, Gloucester. In his new position, James fascinating products – both on sale Bicknell will be overseeing now, and in the not-too-distant future. the sales, servicing and parts ‘We also have one of the best for the Nissan, Kia and Fiat retailer networks in the industry, brands at the dealership and I am looking forward to working and will be managing a team of 32 people across all with them to deliver the very best departments. experience for our customers.’ Chris Wiseman, operations Paul Willis, managing director of director of Wessex Garages, Volkswagen Group UK Limited, said: said: ‘We’re thrilled that ‘I’m really pleased that Alison is James will be heading up moving into this key role. Her sheer our Gloucester branch. Prior breadth of experience makes her to his promotion he was the ideal person to take Volkswagen Nissan brand manager at the forward at such an important time dealership for four-and-a-half for the brand. I’m very much looking years and it seemed like the perfect time to promote him forward to working with her.’ to general manager. Jones replaces Alex Smith, who ‘He works extremely hard has moved to a role elsewhere in the and his dedication to the industry. Jones’s successor as head company goes above and of Volkswagen group’s aftersales and beyond. James also has a customer quality function will be wealth of knowledge to share.’ MMG careers 1 26/07/2012 15:29 Page 1 announced in advert_Layout due course.

‘We have a great brand, a brilliant team of people and fascinating products’

lison Jones is the new brand director of Volkswagen Passenger Cars. Jones, 48, right, knows Volkswagen extremely well. She has worked in the brand for ten of her 18 years to date with the Volkswagen Group. She has developed a deep understanding of the Volkswagen network, brand, numbers and customers through a variety of roles, including management and head-of positions in retailer support, aftersales and customer service, as well as a stint overseeing finances as brand controller. In 2010, she drove the transformation of the Volkswagen Group UK customer services centre in Leeds, followed by a move to Audi as head of operations. Jones was promoted to the

Volkswagen Group UK board of management in 2012 as director of customer quality, and then moved on to set up the group aftersales and customer quality (GACQ) function two years later. Jones said: ‘I’m very excited to return to Volkswagen Passenger Cars in this leading role. We have a great brand, a brilliant team of people and

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CarDealerMag.co.uk | 81

DATA FILE.

James Litton TRADER TALES

Can used car valuation data be more accurate?

have written before about my interest in baseball and the offshoot statistical field called sabermetrics. Sabermetrics essentially applies data to the evaluation of baseball players with no regard to the traditional ‘eyeball’ critique applied by scouts. Better appraisal of players results in increased team performances through maximising player output. So how can we apply this principle to used car management? After all, better appraisal of used cars will result in more profit from a higher turnover. Many of you will be familiar with the i-Control system from Auto Trader. Auto Trader pulls data from a variety of sources, and once the system is provided with a registration number and mileage, a magical retail figure is produced. For independents stocking cars of three years and older, I can see that the system may have a place in reducing the time searching Auto Trader for similar examples. However, for main dealers whose network does not support Auto Trader fully, there is a weakness because of the number of cars remarketed through manufacturer websites. The difference between CAP and Glass’s on many cars is baffling and has been for some time. While I accept that the algorithms for each guide work differently, both systems are attempting to provide figures for both trade and retail pricing – so how do you decide which ones to choose? Another known data source could be through Manheim or BCA. Again, I have experience with Seller Advance from Manheim – and yet again it has a flaw. Whilst Manheim will point to vendors achieving an average of, say, 98 per cent of CAP clean, the individual variations experienced on sale day from expectation can be wild. Why can’t the used car valuation data be more accurate? The simple answer is it can’t. In fact, I would even suggest it has become more difficult to value cars. I have had 90-day cars that were priced competitively and put them up by £1,000 and sold them the next week. I sold a trade Alfa Romeo this month for £3,000 above CAP Clean. Used car management is still as much about experience, proper understanding of your local marketplace and an ability to handle inquiries effectively. It is not about running the registration number through a computer. If you apply this logic back to sport, Leicester City would not have won the Premier League and England would not have lost to the minnows of Iceland.

‘Better appraisal of used cars will result in more profit.’

Who is James Litton?

James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 82 | CarDealerMag.co.uk

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W: cargurus.co.uk T: 0800 808 5557 E: dealers_uk@cargurus.com Info: Leading car shopping website that brings transparency to the car search process, helping consumers easily find great deals.

W: fridaymediagroup.com T: 01273 837855 E: MotorsTeam@fridaymediagroup.com Info: An automotive classified site that exposes used car dealers to more than 200,000 unique car buyers a month. Detailed search functionality helps drive leads.

W: citnow.com T: 0118 997 7740 E: reply@citnow.com Info: CitNOW is the UK’s largest provider of personalised video presentation services to the automotive industry. More than 3,500 live installations worldwide.

The UK’s Best Used Car Warranty

W: wisedealer.co.uk T: 01254 355104 E: dealers@warrantywise.co.uk Info: Provide your customers with the UK’s best used-car warranty, designed by Quentin Willson.

W: wmsgroupuk.com T: 01844 293 810 E: dealers@wmsgroupuk.com Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA registered dealerships.

W: gforces.co.uk T: 0844 247 4523 E: info@gforces.co.uk Info: The leading provider of automotive web software and full service marketing, working globally with OEMs and more than half of the UK’s top 200 dealers.

W: goldsanddigital.com T: 020 7287 9233 E: info@goldsanddigital.com Info: Build a high-quality pool of hot leads, avoid fatiguing your database and create marketing your customers will love.

Vehicle Inspections

Warranty

Website Design & Digital Marketing

AA Cars

Car Care Plan

Spidersnet

W: theAAcars.com T: 01920 252054 E: enquiries@theaacars.com Info: The AA is a trusted brand, so let us help you expand your business with vehicle inspections, AA branding and advertising on our used car site.

W: carcareplan.com T: 0344 573 8000 E: salesinfo@carcareplan.co.uk Info: The market-leading supplier of warranty, asset protection and cosmetic repair products protecting 1m customers every year. We work with manufacturers, dealer groups and independents across the world.

W: spidersnet.co.uk T: 01273 837560 E: support@spidersnet.co.uk Info: Award-winning website solutions plus services to help drive leads to dealers’ doors. The specialist team are dedicated in assisting new and used operations reach their full online potential.

Something fishy had indeed been going on

t was certainly long overdue. Our showroom was having a revamp and we were all fairly relieved. Of course, we know customers don’t always pay that much attention to their surroundings when they’re buying a car – they are more interested in the vehicle itself of course. Nonetheless, our premises had become a bit tatty and a refresh was very much in order. However, there was a flip side. We’d been told that once the work had been carried out, we would no longer be able to eat at our desks. OK, that was the rule anyway, but it was sometimes ignored. Who among us hasn’t needed an emergency Sausage and Egg McMuffin to stave off a hangover on a Saturday morning? Despite our grumbling, our MD wouldn’t budge on the issue. And what made us doubly resentful was that he was getting a swanky new office as part of the revamp, with all sorts of bells and whistles to keep him amused. There were even rumours that his desk was coming from Oak Furnitureland. In fact it must have been the case because he developed a weird habit of repeating the slogan ‘no veneer in ’ere’ every time he walked on to the sales floor. It was all a far cry from the bog-standard Ikea desks supplied for the masses, which, to add insult to injury, we had to put together ourselves. By now you can probably guess where this is going... some sort of childish revenge-based prank to show our displeasure with the situation. And you’d be right. Work was progressing nicely on the boss’s office one Saturday afternoon when he was out on a test-drive. But we were still feeling a bit aggrieved about the no-food policy. What could we do to get one over on him? Well the answer was simple – and once his new office had been furnished and equipped, he got the distinct impression that something fishy had been going on. And it had been! We’d bought a jar of those salty little anchovies and dotted them around here and there within the confines of his luxurious new bunker. We put one in the back of a desk drawer, one underneath a corner of the carpet... you get the idea. It all added up to a rather stinky situation...

‘Work was progressing nicely on the boss’s office one Saturday afternoon...’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email the features editor (you can find her details on page three) or post them on our forum – simply type cardealermagazine.co.uk/forum into a web browser and get confessing! CarDealerMag.co.uk | 83

KEY NOTES

..in association with Traka

Beef up all your IT skills Strong cybersecurity is increasingly important in this connected age, says Paul Smith

ar hacking was back in the headlines last month when a security testing firm exploited loopholes in a Mitsubishi Outlander’s wi-fi system to gain control of the lights and theft alarm of the popular 4x4. It was the latest instance of hackers taking ‘remote control’ of increasingly connected vehicles but it is not alone: last summer’s ‘stunt hack’ of a Jeep Cherokee (pictured) resulted in a 1.4m-vehicle recall to fix the vulnerability. It’s becoming important for dealerships to stay up to date with automotive cybersecurity threats and hacking trends because they could easily begin damaging brand values and hitting showroom sales. Although a remote third party taking over a car’s driver controls sounds worrying, industry authorities suggest that may not be the threat that car dealers should be most concerned about. A more attractive target for hackers is the confidential data held on, or passing through, a connected vehicle’s IT systems. One route in is via the vehicle’s built-in wireless communications that offers access into back-end computer systems. Data that might be stolen by hackers could include vehicle ownership details, congestion charge/toll payment information, insurance/road tax data, driving licence data, even driver medical records, vehicle location information, ‘sat-nav’ info such as the location of the driver’s ‘home’, and physical key codes. As you can imagine, some of these information sets have real market value for ‘frontline’ hackers who flog them to criminals. As a mature sector, auto dealerships have long been subject to cyberattacks. The industry has been warned to be even more on its guard as online malefactors shift focus away from larger

corporates. According to the US-based managed security services provider Nuspire Networks, cybercrooks are turning their attention to small-to-medium-sized businesses because they are seen to have fewer resources allocated to cybersecurity, so they can lift as much valuable data from several smaller dealerships as from one bigger group. They might go for customer payment details, scanned ID documents and repair orders, for example. This is information that is worth something to unscrupulous firms. Cyber-savvy dealerships have layers of IT security in place, but the connected car brings with it new IT security threats for dealers. For example, consider the possibility that hackers may focus their efforts to steal connected car data via vulnerabilities in a dealership’s IT systems. Or they may instead choose to hack directly into a connected car’s communications, and from there find a way back into dealership computer systems or even the DMS. Next consider the possibility that your customer might themselves be a cybercriminal, intent on using their newly-purchased SUV, say, as a base from which to launch a ransomware attack on a dealership or other part of the

connected automotive ecosystem. Servicing and maintenance checks are potentially another way into a dealership’s inner IT sanctums. Wired magazine recently reported a security consultant’s warning that were a hacker to bring in a pre-malware-infected car for servicing, it could spread infection to the equipment used by mechanics to update software and run diagnostics. Infected workshop systems could then unknowingly spread this malware to other vehicles the dealership is servicing, starting an ‘epidemic’ of hostile code capable of affecting critical driving systems. It’s not hard to see that reports of the first hacked cars careering off the road and causing fatalities could cause huge reputational damage to the brand(s) you stock, or even your dealership itself, if it is found that the malware spread via your workshop’s systems. A recent survey by Total Dealer Compliance indicates car buyers will not return to a dealer for a new car purchase if it has been implicated in a cybersecurity incident. But it’s not all gloom and doom. There are real opportunities here. For example, designating your most IT-savvy employee as your infosecurity ‘champion’ could be one approach. Provide them with extra training in this area. Start to build in tighter anti-virus security regimes to prevent system infections. Even consider using outsourced penetration-testing services to run regular reviews of your IT systems. The key is to be aware of the fact that there are more and more IT systems in use in your dealership and in the cars you are selling and servicing. This inevitably means you will need to beef up your IT skills across the board, while considering IT security as a key part of this upskilling push.

Who is Paul Smith?

ASSA Abloy purchased the electronic key management software provider eTag Solutions. eTag was founded by Paul Smith, who now heads Traka Automotive, part of the ASSA Abloy Group brand Traka. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.

Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive POWERED BY

Email sales@etagsolutions.com or call 0845 225 2910

84 | CarDealerMag.co.uk

MONEY TALKS

..in association with Paragon Car Finance

The crucial question How do you choose the optimum lender panel for your business?

strong, supportive lender panel is a key ingredient in ensuring sales success. While some customers will approach their dealer with funding for their next car purchase already in place, the ability to offer affordable and competitive finance at the point of sale is the make-orbreak factor in many transactions. Getting a lender panel big enough to meet all of your customers’ finance needs but small enough to be manageable can be tricky. Here’s what you need to think about.

the lender’s risk appetite and they set out some straightforward, minimum requirements in terms of the profile of the buyer and the vehicle they want to finance. In simple terms, each lender will tailor their criteria to attract customers with a particular credit profile. They will also focus on vehicles of a specific type and up to a certain age. If you know that you have a lot of self-employed customers looking for LCVs, for example, you will want to make sure you have at least a couple of lenders on your panel that can offer this.

Customers: Most important is making sure you have sufficient breadth in your lender panel to service all the customers that you want to appeal to. Each lender has different ‘lending criteria’. These are a set of parameters against which the lender is able to offer finance. They reflect

Product: While hire purchase was once the mainstay of car finance, PCP and leasing products have grown dramatically in popularity. PCP deals, for example, accounted for 75.6 per cent of the finance on new vehicles in 2015. They are becoming more common in the used

car market. Not all lenders offer the full range of finance products, so dealers should include a mix of lenders on their panel in order to get the full coverage. Service: The final part of the jigsaw is service. It’s all very well getting a group of lenders that look good on paper but if they don’t process applications quickly and you can’t ever speak to them, it can be very frustrating. In a similar vein, it’s important to understand commission rates and to make sure that pay-out processes and timescales coincide with your own payments to staff. Cash flow is an important consideration in any business. So, in summary, always quiz prospective lenders about their service levels and make sure you understand exactly what you’ll be getting before you sign up.

Any questions?

If you have any finance questions that you should know the answers to but you’re too scared to ask, send them through to Paragon Car Finance at pcf@paragonbank.co.uk

I need a finance provider that will improve my cash flow�

Speedy commission payments Paragon Car Finance pays commission in full on day one, as soon as the funds are released, helping to improve your cash flow.

0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/local

While we offer a range of competitive products to cater for your customers, we also appreciate the need for dealers to receive their commission as soon as possible. Get in touch with us to arrange a meeting with one of our Regional Sales Managers to find out more.

Paragon Car Finance is a trading style of Paragon Bank PLC. Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. BPCF12838 (06/2016)

CarDealerMag.co.uk | 85

HOT PROPERTY

..in association with Rapleys LLP

Opportunities amid uncertainty Geoff Sayer looks at the steps owners and occupiers can take in the wake of Brexit

n June 23, the UK voted to leave the EU. It’s too early to predict specific long-term outcomes; short-term snap decisions and kneejerk reactions have initially grabbed the headlines. Readers are likely to view things operationally, considering either the effects on car sales or aftersales functions – my perspective on those is limited. With property, however, we tend to go back to the fundamentals of the market. The market will no doubt be affected to some extent by uncertainty, although at this early stage it’s virtually impossible to determine the true extent of any price movements. Uncertainty regarding wider economic effects on currency, investment markets and the general economy is not good for the property market. Certainty is key but politicians can’t deliver that in the short term even though the Bank of England’s monetary support has helped. The effect of the uncertainty caused by

Brexit has, to use Donald Rumsfeld’s famous terminology, threatened a period of many known knowns, some known unknowns and limited scope for unknown unknowns, because Brexit has swung us towards the unknown. In such situations, decision-makers are far more likely to sit, watch and analyse so big decisions (ie, acquiring, disposing of, or enhancing the property portfolio) are likely to be more closely scrutinised. Property investors will certainly take that view because the scope of Brexit has potential to impact in all sorts of ways that contribute to how their investment decisions are made. Early signs are that some institutional investors are saying it’s ‘business as usual’ – time will tell. Life goes on and so my question is: ‘What steps can property owners or occupiers take during a period of uncertainty?’ The short answer is: ‘Be up to date with your known knowns, better understand your

known unknowns and reduce the likelihood of unknown unknowns’. There are ways of minimising some of those unknowns, because in such times ‘certainty’ becomes a commodity for property owners and ‘certainty with flexibility’ becomes a commodity for occupiers. That puts asset management right at the top of the priority list. The two commodities seem to conflict, but not always. There are situations where they align and it’s there that opportunities arise. For example, an occupier seeking certainty on rent at their best site might want to extend their lease and the property owner may be prepared to agree a rent review and offer a capital payment or rent concession in return. Alternatively, an occupier may wish to downsize, providing the opportunity to surrender part, reduce their rent and allow the owner to relet/refurbish and spread their risk. Uncertainty? Yes, but not without opportunity.

Who is Geoff Sayer?

Geoff is a partner in the market-leading automotive & roadside team at Rapleys LLP. Contact him by mobile on 07769 671488 or email Geoffrey.Sayer@rapleys.com

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

86 | CarDealerMag.co.uk

THE FLEET.

LATEST FROM THE FLEET... Welcome report:

SuzukiVitara Not exactly love at first sight, but James Fossdyke thinks he could learn to like the latest addition to the Car Dealer fleet...

can’t pretend I was particularly enamoured with the idea of spending six months with the Suzuki Vitara S – I had a play with the diesel version of the new Vitara in a past life and came away distinctly underwhelmed. Yes, it was cheap, but it was unrefined and the cabin plastics were naff. As a result, I was hardly bouncing off the walls when our Vitara rocked up, and I was even less pleased to see the gangster-spec paint-and-wheels combo. When it turned up, I thought Gosport’s least successful drug dealer had arrived. Ever the consummate professional, though, I duly gathered up the keys and braced myself for my 10-mile commute behind the wheel. First impressions were actually good – the petrol engine is far more refined than its diesel stablemates, and the automatic transmission is surprisingly slick – but it’s difficult to garner much from a 25-minute urban trudge. A much sterner test was waiting for the Vitara the following morning, when I had to catch the red-eye express for a date with a Mercedes in northern Italy. Rising in what the Spanish would describe as ‘la madrugad’, I began the 70-mile cruise to Heathrow. Setting up the satellite navigation was nice and easy, and I enjoyed the turbocharged 1.4’s punch on the M3, but there was one fly in the ointment.

Apple Car Play is not my favourite piece of incar tech, but if you want to simultaneously charge your phone and play an iTunes playlist, the Vitara leaves you a bit stuck with it. Given previous unhappy experiences, I was a bit surprised to find it worked relatively well, happily churning out even my questionable music choices through the on-board speakers. But then, just north of Basingstoke, it decided that enough was enough. Whether this was down to the fact that it was about a minute or so into The Verve’s Love is Noise is anybody’s guess, but whatever its reasoning it simply packed up. Numerous (and slightly distracting) attempts to re-establish a connection failed miserably, and

THE KNOWLEDGE Model: Vitara S ALLGRIP Automatic Price: £24,285 Engine: 1.4 Boosterjet Power: 138bhp 220Nm Max speed: 124mph 0-60mph: 10.2s Emissions: 128g/km Mpg: 51.3 (combined) Mileage this month: 300 THIS MONTH’S HIGHLIGHT Finding out that life with the Vitara probably won’t be as bad as I’d feared

I was eventually reduced to listening to Vanessa Feltz’s early-morning Radio 2 show. There was good news at journey’s end, though, because the Vitara’s compact dimensions meant it was relatively easy to park in Heathrow’s ludicrously tiny bays. Getting home was slightly easier, despite the best efforts of Lufthansa. After a seven-hour delay I found myself paying the £47 ransom to free the Suzuki from the car park at 9pm. I was in a hurry to make my way back to the south coast, and the Vitara’s 138bhp 1.4 proved perfect for nipping around in the stop-start traffic of Egham and Staines. Officially, the 0-62mph sprint takes more than 10 seconds, but it just didn’t feel that slow. There was plenty of torque on tap to save me from being trapped in the wrong lane and I somehow managed to make it through the door at a semisensible hour. So after all that, has my opinion of the Vitara changed? Well, sort of. I still don’t like the cheap plastic and the infotainment system got on my wick, but the little Suzuki is reasonable to drive and, considering it’s a four-wheel-drive petrol automatic, its 39mpg economy isn’t too terrible. Maybe I’ll learn to like it. James Fossdyke (@JFossdyke)

CarDealerMag.co.uk | 87

THE FLEET.

LATEST FROM THE FLEET... Third report:

Fourth report:

Fifth report:

FordMondeo

KiaSportage

MitsubishiOutlander

The Mondeo impresses during a video expedition in Germany

The young, the bewildered and the elderly... it charmed them all

It’s been a ‘bumpy’ ride for the Outlander, clocking 10,000 miles

OUR Mondeo has been stretching its legs this month with a 1,200-mile round trip from Blackball Towers in Gosport to Boxberg in Germany. The video team had a big shoot to go to, and needed a car that would not only carry all their filming equipment, but would also be comfortable and at home on the German autobahns. The Mondeo fitted the bill perfectly. The automatic gearbox made sitting in a twohour traffic jam much more bearable, while the climate control helped keep the team cool as tempers became frayed in the 35-degree heat. Once the autobahn cleared, the Mondeo was more than enough of a match for some of the ‘bahn stormers’, at one point reaching in excess of 140mph – not bad for a plucky diesel. But at normal cruising speeds, the Mondeo was the perfect tool for the job – comfortable, refined, and equipped with all the multimedia tools one could wish for to keep driver and passengers entertained. The sat nav system was also easy to switch between countries too, and didn’t take us on a weird route, which some systems have a habit of doing. In fact, the Mondeo did such a good job that it was ‘borrowed’ again for another film shoot in Wales, where it went in convoy with its American muscle sibling, the 5.0-litre V8 Mustang, above. I suspect this won’t be the last time the video team nabs it. Nigel Swan (@motoringnut)

SOMETIMES, you need a little help from your friends. Or, in this case, from a trusty set of wheels – which turned out to be the Sportage. On one particular weekend, I needed a comfortable and relatively classy car to transport a group of family and friends to and from an event. Debating which of our fleet was the best for the job, I ended up with the keys to our favourite Kia. It’s been quite some time since I’ve had an outing in our comfy cruiser and, I have to admit, it was really great to be back behind the wheel. I drove back to the depths of glorious Oxfordshire and prepared for a frantic weekend. Throughout my taxi duties, each and every passenger I collected was delighted with the Sportage. Especially those who don’t have any particular interest in cars. One of our neighbours proceeded to tell me: ‘Gosh, isn’t this posh?’ It goes to show just how premium the Kia brand has become over the past five years. It’s no news that Kia is extremely generous at speccing its cars to a good level from standard and, in my opinion, that attitude has played a major role in the brand’s current success – you end up driving a value vehicle that boasts premium qualities. Its ventilated seats, for example, were a huge hit for the more mature passengers, who aren’t fond of the heat. In all, the Sportage did a grand job, and each passenger left the car with a smile on their face. Sophie Williamson-Stothert (@1Sophie_W)

THE KNOWLEDGE Model: Ford Mondeo Titanium TDCI Auto Price: £29,375 Engine: 2.0-litre, 6-speed automatic Power: 208bhp, 450Nm Max speed: 142mph 0-60mph: 8.1sec Emissions: 134g/km Mpg: 54.3 (combined) Mileage this month: 1,200 THIS MONTH’S HIGHLIGHT Stepping up to the challenge like a champion. The video crew has a new loyal companion now. 88 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2sec Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 350 THIS MONTH’S HIGHLIGHT Helping to put a smile on my passengers’ faces as we toured the Oxfordshire countryside.

IT’S A proven scientific fact that men don’t like reading instructions. Whether it’s a curry recipe or an Ikea shelf, we are genetically programmed to think we know best. But after six years of driving cars from only one brand in my previous job, I found I was forced to reach for the owner’s manual to work out some bits of the Mitsubishi. Mysterious buttons and warning chimes abound, but after a little bit of layby reading I am now up to speed with the Outlander’s myriad features. The most useful of these has proved to be the 4WD system. Car parks at the Goodwood Festival of Speed became mudbaths and while other cars (including a poor E-Type) had to be towed out by one of Lord March’s tractors, the Outlander slithered its way out of the fields without drama. The mud splattered up the side of the Mitsubishi was soon washed away by the heavy rain and floods though – all of which were shrugged off with ease. The poor Mitsubishi can’t shrug off poor parkers though. While sat parked at a dealership, the front grille was cracked by a reversing lorry. Then, two weeks later, the same front bumper was impaled on the tow hitch of a school-run Discovery. The apologetic mummy had been distracted by the six kids on board! As I write this the Outlander is just about to clock up its 10,000th mile. We hope the next 10,000 are kinder to it. Tom Barnard (@TomBarnardPR)

THE KNOWLEDGE Model: Outlander GX4 2.2 DI-D (man) Price: £31,499 Engine: 2.2-litre turbodiesel Power: 147bhp, 380Nm Max speed: 124mph 0-60mph: 10.0 seconds Emissions: 139g/km Mpg: 53.3 (combined) Mileage this month: 940 THIS MONTH’S HIGHLIGHT We don’t think life can get much worse for the poor Outlander. But we’re giving it some TLC.

LONGTERMERS

Tenth report:

Farewell report:

Mazda2

RenaultTwingo

SkodaYeti

The little 2 continues to woo new staff with its economy figures

Car Dealer Dave is delighted to be behind the wheel of this city car

We wave goodbye to the Yeti, but Jack hasn’t shed a tear just yet

WE’VE spent the past few months hearing that people will vote with their feet, and that’s certainly true in the CarDealer office. Although some of our number – namely myself and fellow staffer Darren Cassey – find the little dieselengined Mazda2 a bit coarse, it’s by far the most popular car on the fleet. After about nine months with the Fiesta-rivalling hatch, we’ve accumulated a staggering 21,500 miles, and I set out to add to that total with a four-hour slog back to my native county of Cheshire. Like many who have driven the car before me, I was impressed by its levels of fuel economy. The 66.6mpg it’s achieved under our stewardship is devilishly impressive, and it certainly prevented my wallet from wincing every time I glanced at the fuel gauge. There are drawbacks, however, such as the colour. The 2 has put me off white cars for life, simply because it’s a nightmare to keep clean. No matter how hard you work with the microfibre cloth, stone chips and splattered bugs are immediately obvious, and in these summer months, you need only to drive a couple of miles before your front bumper is liberally coated with deceased mossies. At this time of year, the black interior is a pain, too. It looks smart, but the dark plastics absorb heat very effectively when you leave the car sitting in the sunlight, turning the cabin into an oven. James Fossdyke (@JFossdyke)

IT’S a familiar route that I’ve described before in these reports... up the A3 towards the Smoke, left at Tibbetts Corner and along Putney High Street towards Hammersmith. From there it’s just a short hop past Olympia towards Kensington and my second job, a bit of ‘moonlighting’ if you will. I never really jostle for position when allocation of our long-termers is discussed, which means that I’m quite often left with our little Twingo, HY65RJJ. But to use the phrase ‘left with’ immediately does the Twingo a disservice. It’s a super little car and of course, simply perfect for negotiating the congested streets of the capital. As one of the more, ahem, ‘senior’ members of the Car Dealer team, my days of ferrying kids around are long behind me, so I don’t mind driving something that’s a bit more compact. The Twingo is full of surprises, it’s fair to say. Chief among which is the amount of space that exists when the rear seats are folded flat. The boot was recently easily able to accommodate some furniture for a delivery to my youngest daughter’s new accommodation in the depths of the Wiltshire countryside. It’s a car that definitely suits the summer months, too. It might be small, but it’s big on personality and there’s a genuine feelgood factor to be had buzzing along the South Coast between home and Car Dealer Towers. Dave Brown (@CarDealerDave)

THIS month brought with it a farewell to our little Yeti. Somewhat the black sheep of the office car park, it has – at times – brought many a frustration. The specification, for instance, didn’t do the Skoda any favours. I’m not naming any names, but putting a 1.0-litre engine in a relatively heavy car and driving the power it produces through an automatic gearbox didn’t make for an awfully economical car. On average, we saw the high thirties of fuel economy, though around town it didn’t take long for this to tumble. One massive irritation was the inclusion of an incredibly clear and easy-to-navigate multimedia system – but without satellite navigation. I couldn’t quite understand why you’d go to the extent of fitting the system without nav. There were some highs, of course. The gearbox, though ill-fitted in the Yeti, did shift smoothly, and everything was exceptionally well-pieced together. The Yeti wasn’t all that bad to drive, either. The little 1.0-litre engine did run out of puff on motorway trips, but for short trips it had more than enough punch. Am I sad it has gone? Not particularly. But I’d like to emphasise it was the layout of our particular example that didn’t highlight the Yeti’s positives. With a small, economical diesel engine and a manual gearbox, I reckon it would be a cracker. Our little Yeti just lacked the key ingredients required to be a top-notch all-rounder. Jack Evans (@jackrober)

THE KNOWLEDGE Model: Mazda 2 1.5D SE-L Nav Price: £16,395 Engine: 1.5-litre turbodiesel Power: 104bhp Max speed: 111mph 0-60mph: 10.1sec Emissions: 89g/km Mpg: 83.1 (combined) Mileage this month: 1,070 THIS MONTH’S HIGHLIGHT Making both internal combustion engines and insecticides look horribly inefficient.

THE KNOWLEDGE Model: Twingo Dynamique S Energy TCe90 Price: £12,545 Engine: 0.9-litre petrol Power: 98bhp Max speed: 103mph 0-60mph: 10.6sec Emissions: 99g/km Mpg: 65.7 (combined) Mileage this month: 380 THIS MONTH’S HIGHLIGHT Zipping along the South Coast in the sun.. and making light work of London congestion.

THE KNOWLEDGE Model: Skoda Yeti 1.2 TSI DSG SE L Price: £24,900 Engine: 1.2 TSI Power: 108bhp, 175Nm Max speed: 111mph 0-60mph: 11.2 seconds Emissions: 128g/km Mpg: 51.4 (combined) Mileage this month: 360 THIS MONTH’S HIGHLIGHT Personally? Handing back the keys. But the rest of the team were sorry to see it go. CarDealerMag.co.uk | 89

BAGGOTT.

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The doom-mongers might be wrong, but things don’t look good I

don’t usually like to fill these pages with heavyhitting political columns, because this is a car mag, not the Telegraph. However, the events of the past few weeks have been so significant, and their ramifications are so deep, so lasting and so potentially damaging to the motor trade, that they’re far too seismic to ignore. It doesn’t matter what side of the ‘Brexit’ fence you sat on, now, with the benefit of hindsight, you can’t deny that it’s been catastrophic. In the hours and days that followed the historic vote to leave the European Union, we lost our prime minister, potentially witnessed the start of the break-up of the United Kingdom and watched billions of pounds wiped off the values of some of the biggest companies in the UK. And it got worse. As the sheer scale of the decision to leave the EU really started to hit home, the hangover from hell kicked in. Boris Johnson, one of the orchestrators of the chaos, slipped deftly into the background, refusing to take on the poisoned chalice of leading the Conservative Party, and ultimately the country, into what many commentators believe will be a recession and the break-up of Great Britain. What’s more, at the time of writing this, it was looking as though our next prime minister will be the scariest woman ever to enter the public eye since Cruella De Vil. And what can we say about smug Nigel Farage? The planecrash-dodging, real-ale-quaffing, European bureaucrat-bothering joke of a man called time on his ‘career’ and jumped the sinking political ship, too. Possibly to take up flying. I don’t pretend to be a political commentator – and as you can tell by my contempt for them, it really is better if I stick to reviewing Vauxhalls. You see, I’m a car fan and a businessman employing a team whose future is intrinsically linked to the success of the automotive business. Of course I don’t want to see that boat rocked. Why would I? Why would I vote for a future that world leaders told us was wrong or that the governor of the Bank of England said had the potential to cause economic turmoil (and has)? The more I think about it, the more I can’t quite believe so many people voted to leave. I had a heated discussion with a member of my family about this very thing. His opinion – just as strong as mine, yet completely opposed – was that if no-one could tell him the exact facts about what would happen if we left, then he could see no reason not to vote to see what happens and give leaving a go. He said he dealt in facts and as there were no facts to tell him that leaving wasn’t a good idea, that’s what he did.

And there’s the rub. On both sides of the argument there was simply hypothesis and guesses. There were warnings – oh, there were plenty of those – but how many people still touch paint when there’s a ‘Wet Paint, Don’t Touch’ sign? It’s the same thing. It doesn’t matter how many people say something’s not good for them, most people still want to find out for themselves. So what happens next? Who knows? But as I sit here contemplating this, the headlines are beginning to turn dark. Mark Carney has announced that the UK ‘has entered a period of uncertainty and significant economic adjustment’ and has relaxed rules for banks so they can lend consumers more money to compensate. And only a few days ago I read that the gains in new car

James ‘I can’t quite believe Baggott so many people voted

Who is James Baggott?

to leave the EU’

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sales that we’ve seen so far this year could be wiped out by consumers holding back, post-Brexit. It’s clear the vote has caused uncertainty. And uncertainty leads consumers to stop spending. They may have just as much money in their pockets as a month ago, but when the economy looks shaky, those pounds stay in bank accounts. And it’ll only get worse if negotiations with the EU don’t go to plan. Car companies that build in the UK pointed out before the vote that they’d be forced to make tough decisions if Britain chose to leave – Toyota even threatened significant cuts. What exactly will happen remains to be seen, but at the moment the signs don’t look good. Yes, things might pan out OK. In a few years’ time, we may look back at this vote and wonder what all the fuss was about. But the way things are going now, that might only be after a significant downturn in the economy – and not even the experts can guess just how bad that’ll be, or if it’ll happen at all. Perhaps I just don’t like change. Perhaps I just like being part of Europe, being part of an open and welcoming society and being part of a thriving economy that was actually doing all right, thank you very much. I’ve got everything crossed that the prophecies don’t come true, that the doom-mongers are wrong and that everything turns out for the better. But, sadly, the way things are going now, I’m not so sure.

He’s the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. 90 | CarDealerMag.co.uk

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