Car Dealer Magazine: Issue 103 by Blackball Media

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Issue 103 | October 2016 | CarDealerMag.co.uk | £3.50

OUR DAY BEING PAMPERED IN A SPA AT AUDI’S POSHEST DEALERSHIP

WE TRY NISSAN’S BONKERS TAKE ON THE FUTURE OF ELECTRIC CARS

DRIVEN

CLUBSPORT S

IT’S VW’S FASTEST EVER GTI – AND IT ONLY HAS TWO SEATS PLUS ON THE ROAD IN THE CAR THAT STARTED IT ALL

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IGNITION.

EDITORIAL HEAD OF NEWS AND FEATURES Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @Believebecca

HEAD OF DESIGN Graeme Windell

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PRODUCTION EDITOR Dave Brown

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NEWS EDITOR Jack Evans

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SENIOR STAFF WRITER Andrew Evans

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STAFF WRITER Laura Thomson

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ADVERTISING SALES MANAGER Jon Hickey

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ACCOUNT MANAGER Michelle Searle

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

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

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the incessant WELCOME. GIVEN rumblings of the past 12 months over dieselgate – yes, it’s really been a full year since the scandal first broke – Volkswagen and its dealers could well be forgiven for adopting the mindset of Private Frazer in Dad’s Army: ‘We’re all do-o-o-omed...’ There’s no doubt that the manufacturer has had a turbulent time of it, and it’s not out of the woods yet. The story continues to make headlines on both sides of the Atlantic and UK sales figures are in the doldrums, as evidenced by the latest SMMT registration figures reported on pages 72 and 73 of this issue of Car Dealer. Nevertheless, the brand has had at least one good reason to crack open the bubbly this year: the 40th birthday of its iconic hot hatch, the Golf GTI. We thought we’d stage a little celebration of our own – and what better way to mark the occasion than to roll back the years with a classic-versus-modern head-to-head? We took an original Mk1 Golf GTI to Wales to meet its present-day namesake in order to see how the recipe for the definitive hot hatch has changed in the intervening decades – and how it’s stayed the same. Volkswagen must have had similar ideas, as it chose the 40th anniversary to release the most potent version of the GTI yet, the Clubsport S. This stripped-down model holds the front-wheel-drive Nurburgring lap time crown, so who better to put it through its paces than mpg-obsessed senior staff writer Andrew? We sent him back to Wales and you can read his impressions on p60. WHILE the rest of the team has been flitting to and from Wales to drive VWs, CEO James has been to Rio de Janeiro to experience Nissan’s latest concept car, the BladeGlider. Based on the same sort of ideas that went into the innovative DeltaWing and ZEOD Le Mans racers, the threeseat BladeGlider is Nissan’s vision of electric cars to come – head to p12 to find out what the boss made of it all.

Editorial assistant Jack Healy has been getting in on the flyaway action too, as we sent him to Berlin to witness the unveiling of Skoda’s brand new Kodiaq. This five-plus-two SUV represents a whole new dawn for the marque as it starts to take on new markets beyond its traditional core. You can read his thoughts on p41. WITH free tea and coffee, relaxing sofas, plus magazines and TVs galore, franchised dealerships (and others, too) do their best to make their customers feel at home. But this month, we’ve visited one that almost seems to be providing a holiday feel ! With a beauty spa, gym, and other luxurious facilities, Poole Audi in Dorset really is something special and we spent a day there to take advantage of the team’s hospitality and find out about the thinking that went into the project. Though they might have got the right idea about erasing the image of car showrooms as temples to masculinity, women can sometimes feel intimidated by the whole car-buying process. On p17, our new head of news and features, Rebecca Chaplin, gives her thoughts on the consumer gender gap in the industry. Fascinating stuff. THE clocks might not have gone back yet, but our annual Used Car Awards ceremony at the end of November is rapidly approaching and we’re looking for your nominations on p20. And as well as nominating, why not come along? It’s a highlight of the year for all of us at Car Dealer and we guarantee a cracking night. Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

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INSIDE. ISSUE 103 I OCTOBER 2016

Dashboard Feedback Plate-change day round-up

53 28

Nissan BladeGlider Trade Plates TV A day at a posh Audi dealership Around the UK

Simon Davis drives the latest incarnation of the Porsche Panamera

BladeGlider: The car that shows EVs don’t have to be boring

Skoda Kodiaq in the spotlight Around the World Finance Big Mike

Forecourt We get thoroughly spoilt at a VERY swanky dealership

It’s that time of year again! A busy September 1 across the UK

SsangYong XLV

‘‘

Porsche Panamera Kia Optima Sportswagon

When it comes to the thinking behind invitation only events, I am a bit of a party-pooper. James Litton

Features VW Golf GTI Special

82 Data File Car Dealer Club The Statistics Taking Stock Auctions Market Insight

Suppliers’ Guide Key Notes with Traka Hot Property Long-termers Old meets new in a VW Golf GTI special – how do the two compare? PLUS we drive the Clubsport S, a stripped-back limited-edition special

James Baggott

06 08 12 16 28 36 41 45 46 51

52 53 54

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 took place on July 28. Find out who won by going online to bit.ly/CDP2016

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Turn to pages 20 and 21 to find out more and get involved.

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

On Twitter Follow @CarDealerMag

Forum CarDealerMagazine.co.uk/forum

How quickly do you turn over your stock? I’m wondering what your policy is on moving on stuff that has been sitting around a while. For the average car, at what point do you cut your losses: one month, two months? I would normally adjust the price to get it in new searches, take new photos, re-work the advert and so on, but every now and then something just sits around for no apparent reason. It is a bit different if you have something a bit specialist or with a nice margin in it but when bog-standard stuff sits around for too long it feels like you are just burning money really. bestprice4cash Average for us is nine days from going on the books to it leaving the door. Steve92 That is mightily impressive.

sparky

Picture of the month We’re often mocking news and features editor Becca Chaplin for her diminutive dimensions, but this might be step too far… Made by Pocket Classics, this miniature AC Cobra replica is powered by a 110cc engine from a scooter, and certainly caused a stir in the office. Look out for a video review on TradePlates.tv this month.

Nine days! You should bottle what you do and sell it on. justina3

profitable stock. Everyone has ‘their’ own way that suits their business. umesh

I would say six weeks is the average for me. Some stuff shifts within days and some sits for several months. If something is hanging around for more than three months, and I have done everything I can to shift it, then I will consider price-dropping to clear it. A lot also depends on how much space you have. If you have space for it to sit there, then some would just leave it until it sells. If you’re struggling for space, it could be more efficient to get it gone and replace it with some fresh stock. Max Branning

Mine is 30 days, 14 hours and 21 minutes – according to my stock list. But I did sell my oldest two cars in two days last week so it’s a little skewed. I’d say three weeks is my average. I stock 13/15 cars and sell on average 12 a month so stock turn wise I’m not doing too bad I guess. I adjust my prices almost daily, up by £5, down by £20. It’s just a habit I formed working for a plc where we would write everything down at 30, 60 and, God forbid, 90 days. To be honest, we got fined for 90-day+ stock so it never happened. So I give a car a premium price for the first 10 days while it’s fresh and then adjust accordingly. Mat C

Space, and having too much of it, is my Achilles’ heel. As a result, I can have stuff sitting here for months. I’m convinced I’d be more pro-active in turning stock over if I had less of it, although I’d draw a line at retailing back! sparky Nine days is awesome! With me, it’s mixed like Max says – sometimes it’s hours ! Nice when that happens. I don’t panic if a car sits for a few months and I know it is right – I’ll hold out for profit instead of churning it just for the sake of it and then not being able to replace it with nice,

Tweets of the month 5 weeks away from our £10m investment in Oxford for JLR opens ! Wow. Stunning. Daksh Gupta @MarshallMotorGp Looking great Daksh! #JLR Umesh Samani @specialistcars1

I think if you can turn around two thirds of your stock per month, that’s a good benchmark, although it completely depends on what section of the market you deal in. Edward Roots

A fee I’m thinking of passing on WITH the increase in debit card charges, I am now thinking of passing the fee on to the

customer. My statements seem to be increasing month on month. I have always added three per cent for a credit card transaction but have never charged for debits. I will maybe now add one for debit payments or they can do a bank transfer for free. Anyone else doing this? Max Branning I’ve thought about that Max, but isn’t it just another barrier in between the customer and the sale of the car? Also, will they just ask you to chuck it in/swallow it as part of the deal which invariably we may do? SC Derby Yes, some buyers could be put off by this and if it really meant them walking over a £10 charge then I would probably just say, ‘OK, don’t worry, we will let it go this time’ but many will just accept it, I think. No-one has ever really moaned about the three per cent credit card fee, they always pay it. I have had several customers now do bank transfers with their phones when my card machine went down so this could become the norm if a fee is being charged to use plastic. Max Branning Needs to be passed on IMO. Work it out on every 100k turned over, then every million turned over. Cost soon becomes another huge burden. Soon stacks right up. Rory RSC For the last two weeks I’ve stuck to three per cent credit card, one per cent debit, free for a bank transfer. Nearly all have done bank transfer. My last Worldpay bill was ridiculous so I’m going to try and stick to my guns. david gott

#Nissan’s legacy in #Rio continues with the opening of a school in the neighborhood of Caju NissanMotor @NissanMotor

Don’t you just love it when...

160mph in a #FordTransit!! @guymartinracing we take our hats off to you #speed Ford UK @forduk 06 | CarDealerMag.co.uk

You sell a car and it doesn’t come back!

You go to pick up the recent purchase, get in, turn key... full tank of fuel. david gott M.J

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DASHBOARD. TECHNOLOGY

‘Autonomous cars for everyone’ pledge by Ford FORD has thrown its hat into the autonomous ring by announcing that it plans to have high-volume fully autonomous cars in production by 2021. The manufacturer has been working on the research and development of autonomous vehicles for more than a decade. It says its first fully autonomous vehicle will be without a steering wheel, accelerator pedal or brake pedal. It is being specifically designed for commercial mobility services, such as ride sharing and ride hailing, and will be available in high volumes. To get there, the company is investing in and collaborating with four startups to enhance its autonomous vehicle development, doubling its Silicon Valley team and more than doubling its Palo Alto campus. Mark Fields, Ford president and CEO, said: ‘The next decade will be defined by the automation of the automobile. We’re dedicated to putting on the road an autonomous vehicle that can improve safety and solve social and environmental challenges for millions of people – not just those who can afford luxury vehicles.’

COMEDY

Russell on the road with Motorpoint MOTORPOINT has helped comedian Russell Kane get his new tour on the road. The award-winning standup kicks off the autumn leg of his critically-acclaimed Right Man, Wrong Age Tour this month. And the car supermarket has driven to Russell’s aid, providing him and his team with a sevenseater VW Sharan 2.0 TDI Bluemotion to use travelling between shows in England, Scotland and Wales. 08 | CarDealerMag.co.uk

Autovolo makes waves at Tesco bit.ly/carwash-103

We’re getting our kicks with

Plate-change day comes round again, meaning busy times for dealers by REBECCA CHAPLIN @believebecca

ealerships up and down the UK enjoyed a busy start to September as the first 66-plate cars were handed over to customers. Social media was full of happy buyers taking to the roads in their new cars and dealer groups are holding promotional events to increase footfall at this busy time of year. Glyn Hopkin, for example, one of the UK’s leading car retailers with more than 40 franchised showrooms across the south-east, is running a ‘New 66 Reg Upgrade Event’ until the end of September. The event offers Glyn Hopkin customers thousands of pounds in discounts, loyalty incentives and finance deals on new, nearly new, and used models in its extensive 12-brand range – now including Nissan, Fiat, Abarth, Jeep, Infiniti and Dacia. Fraser Cohen, managing director at Glyn Hopkin, said: ‘Our 66 registration plate offers are some of the most competitive deals we’ve ever rolled out. We’re hoping to break our record of more than 4,000 customer upgrades during the 66 plate change event, which is on until the end of September.’

Glyn Hopkin also offers its current Motability customers the opportunity to trade in their old car for a new model, while paying less. The new Alfa Romeo Giulietta, the new Nissan Pulsar family car and the new Fiat Doblo MPV all come available with zero advance payment, and join a selection of 90 models across 10 of Glyn Hopkin’s brands that are eligible for the offer. The all-new Fiat Fullback pick-up truck is set to be a firm favourite among business customers and is

available from just £199 per month on contract hire. MPV and cargo van discounts can be found across the Nissan, Fiat and Mitsubishi ranges, while a variety of additional incentives and monthly finance deals are available for repeat Glyn Hopkin customers. As part of Glyn Hopkin’s appreciation of its existing customers, up to £5,000 deposit contributions and five years’ free servicing on a range of new models are also available to those looking to upgrade.

Ridgeway Skoda Oxford tweeted: Mr & Mrs Harvey looking pleased with their new #66Plate Yeti

Stratstone Mini tweeted: Jayne, you’ll cut quite a dash in your #new #66plate MINI Countryman

A Mr. Hudson collected his new Ford Focus ST from Neil Wright @StoneacreDoncYR

Kings Lynn Audi tweeted: ‘Early morning here and the first customers are here ready and taking their New 66 Plates #customerservice #66plate

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DASHBOARD. CRIME

Car key security warning issued TWO in five car owners don’t appear to think twice about leaving their car keys with a stranger, despite the potential security risk, according to the results of a YouGov consumer survey. Car theft has fallen significantly since the mid1990s but Sarah Newton, minister for safeguarding, vulnerability and countering extremism, said: ‘Determined thieves are still out there and we should remain vigilant.’

PICADOR

Paul is new group marketing chief PAUL WILDE is the new group marketing manager at Hampshire-based car dealer Picador. The family-owned Vauxhall, Renault and Dacia retailer has brought Wilde in to oversee all of its group marketing activity and to assist in driving the business forward. Wilde brings many years of experience to the role, having previously worked in the automotive sector before spending three years in telecoms.

RATING

Sustainability plaudit for BMW THE BMW Group has once again been named the world’s most sustainable automotive company in a rating published for the Dow Jones Sustainability Indexes (DJSI). The BMW Group is also the only one of the three automobile manufacturers listed to have featured in the renowned index every year since 1999. ‘Sustainability is an important part of our identity and strategy,’ said BMW’s Ursula Mathar. 10 | CarDealerMag.co.uk

Fiat Chrysler Automobiles joins humanitarian efforts after earthquake bit.ly/quake-103

Two acquisitions, a disposal and ‘excellent’ results... never a dull moment at Lookers! Restructuring, not relaxation, during holiday season at major dealer group by ANDREW EVANS @snavEwerdnA

ugust might be the time for holidays in the sun and some well-earned rest, but Lookers has been busily restructuring instead of relaxing. In the first part of the month we learned that the company had entered into a contract to sell its parts division – FPS, Apec Braking and BTN Turbo – to Alliance Automotive Group (AAG). AAG, a large European aftermarket business with the backing of global private equity group Blackstone, had offered £120m for Lookers’ parts division, with the exchange of contracts and final completion pencilled in for October pending shareholder approval and clearance from EU merger regulators. Regarding the sale, Lookers chief executive Andy Bruce said: ‘This transaction will significantly strengthen our ability to accelerate the growth in our core car dealership business. In fact we are already at an advanced stage of negotiation to acquire two dealership groups who represent premium brands and we anticipate making announcements on these in the coming weeks.’ Just a few short days later, Lookers announced the acquisition of the first of those businesses: Drayton Group. A four-time winner of MercedesBenz Retailer of the Year, Drayton is a well-established name in the West Midlands for the luxury German marque and doubles the number of Lookers’ Mercedes-Benz retailers in the UK – adding sites in Staffordshire, Shropshire and Worcestershire to the existing Kent and Sussex locations. The £55.4m acquisition, also expected to be completed in October, means that Lookers

Lookers has doubled the number of Mercedes dealerships it has in the UK will now be the largest MercedesBenz retailer in the UK, with Bruce adding: ‘The acquisition of the Group is a perfect fit in terms of franchise, geography and culture. The Drayton Group is a business that we have respected for many years because of its fantastic reputation. We know that Mercedes-Benz is a fantastic brand with a rich heritage and is one that Lookers has worked well with, built and developed as part of our national network of motor dealerships.’ Less than a week later, Lookers then announced its purchase of Knights Group BMW and Mini, adding both brands to its UK offering for the first time. This £27m deal brings six BMW and Mini dealerships in Stafford, Stoke and Crewe to the Lookers family, increasing the UK dealership count for the company to 166.

Over to Bruce again, who said: ‘Knights is another perfect fit for Lookers and allows us to offer our customers an even wider choice of fantastic vehicles. ‘We are excited to be adding BMW and Mini to our list of brands due to their history of producing some of the world’s most celebrated and iconic cars.’ Between the two acquisitions, Lookers also announced a glowing set of half-yearly results to June 30 2016. Revenue increased by 33 per cent to £2.34 billion, with profit before tax increasing by 17 per cent to £46.7 million. The figures include both the conditional sale of the parts division and acquisition of Drayton Group, along with a net debt reduction of nearly £90 million to £74.9 million. Bruce described the figures as ‘an excellent set of results’. Market Insight, p79

Busy times... Lookers chief executive Andy Bruce

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DASHBOARD. THE FUTURE OF EVs

First Drive* Nissan BladeGlider *Unfortunately, Nissan wouldn’t let us drive their multi-million-pound concept car (weird, we know!) ... but we did get a passenger ride

Do electric vehicles have to be dull? Nissan doesn’t think so. James Baggott travelled to Brazil to find out about a fascinating project the manufacturer has been working on What’s new? Pretty much everything you see before you. This is the BladeGlider, Nissan’s take on the future of electric vehicles. It’s a mad, arrow-shaped, electric-powered concept car that the Japanese firm hopes will prove the future of EVs is far from dull. Before we go on, you need to know that the chances of anyone being able to order a BladeGlider from their local dealer any time soon is

highly unlikely. This is just one of two produced – a duo made in a partnership between Nissan and F1 experts Williams – and they’re likely to be the last. Well, in this form at least. So you might be wondering what the point is? Well, Nissan says that’s simple really: They want to make people realise electrification doesn’t mean dull, and that a sports car concept as Batmobile-like as this proves otherwise. Looks and image The BladeGlider is about as far removed from a traditional car as you can get. Part Robin Reliant,

The power of three... Nissan’s awesome BladeGlider

FACTS AT A GLANCE Model: Nissan BladeGlider Engine: 2 x 130kw motors, 220kw battery, one in each rear wheel Transmission: Automatic 12 | CarDealerMag.co.uk

Performance: 0-60mph in under five seconds Top speed, 118mph Economy: N/A Emissions: Zero

part McLaren F1, part Caterham, the concept is designed to stun. With rear-hinged suicide doors, a three-seat layout which sees the two passengers sit just behind and either side of the driver, and a long, tapered nose, it’s like nothing we’ve seen before. Well, that’s not entirely accurate – the BladeGlider takes design cues from the Delta Wing racer from Le Mans 2012. That car’s

Williams badging not ruled out for special edition Nissans Nissan wants to inject excitement into its EV mix – and BladeGlider is showing the way forward time on the race track might have been short lived, but the concept of a tapered nose with front wheels closer together than the rear, has lived on in this. Space and practicality That three-seat layout makes sense, and not just for drivers who really dislike their passengers. Rear legroom is business-class in proportion, letting rear occupants stretch out on the long flat floor, while the added weight over the rear axle improves handling. The rear-hinged suicide doors are a close fit on your shoulders, though, and the Targa-style open-top roof makes for wind-in-the-eyes thrills for taller occupants. Up front the driver looked a little cramped, and when we squeezed in for a try, it certainly felt it too. However, a cool digital dash and rear-facing cameras instead of mirrors go some way towards making up for it. Behind the wheel We’ve got to come clean here – we didn’t actually get to drive the BladeGlider. Unfortunately, Nissan wouldn’t trust us with its multi-million-pound concept car, as much as we pleaded, so instead we were strapped into the back like naughty schoolchildren and told to enjoy the ride. That wasn’t hard as the sports car leapt towards the first corner of a tight and twisty karting track in Brazil. The first thing that strikes you as strange,

notwithstanding the fact you are sat with a clear view out of the windscreen despite being in the back seat, is the noise. It’s a wail, banshee-like in pitch, the sort of sound that wouldn’t seem out of place on a Star Wars fighter. The BladeGlider feels quick too. Not supercar fast, but enough to push you back into the sports seats and throw you around enough to induce a whiff of travel sickness. It features two 130kw (174bhp) motors in each rear wheel which are good enough to propel it to 60mph in under five seconds and on to a top speed of close to 120mph. There’s no word on range, though – which we’d guess means it’s currently pretty poor. Ride and handling Even from the passenger seat, it’s clear the BladeGlider offers a unique driving experience. Those two front wheels, positioned closer together, and the wide-tyred rear, makes for a planted and agile ride. On the tiny test track, it whipped between corners with a whiff of tyre-smoking over-steer when our exuberant test driver got playful. For us mere mortals the BladeGlider offers a drift mode, similar to that found on the Focus RS, for sideways fun – yet more technology debuting here that is likely to filter down to other Nissans. The BladeGlider did feet softly sprung, though, more hot hatch than sports car over the kerbs. But most importantly it was great fun – and with the instant torque available from those electric motors felt swift too. Who would buy one? Well, no one currently – not in the BladeGlider’s present guise anyway. What’s more important is the future this concept car points to. Nissan wants to inject excitement into its electric car mix and with a sister car to the Leaf, the world’s best-selling EV, long overdue, many will be hoping the lessons Nissan has learned here will lead to a thrilling follow-up. Fortunately, after a very short passenger ride, all the signs are pointing in the right direction for a smash hit.

NISSAN hasn’t ruled out badging one of its performance cars as a ‘Williams’. Following the successful partnership between the Formula 1 manufacturer and the Japanese firm producing the BladeGlider, the head of the Nissan’s EV project has admitted that using a Williams badge on a production car is still up for grabs. The two firms worked incredibly closely on the arrow-shaped EV concept, which is designed to showcase the future direction of the firm’s sports car and electrification – and it’s a partnership that has paid dividends already. Gareth Dunsmore, director of EVs for Nissan Europe, said: ‘Nothing has been ruled out. Our partnership with Williams is currently about developing BladeGlider, but who knows what will happen in the future?’ Williams’ most famous road car tieup was with Renault – one part of the Renault-Nissan Alliance – on the Clio hatchback. The Clio Williams attained cult status and was so popular it was made in three editions. With the tie-up between the two firms deeply rooted in electric cars it would make sense for performance variants or special editions of future electric cars to feature Williams badging. Dunsmore remained tight-lipped when quizzed on the possibility, though, adding that so far the firms have been concentrating on making the BladeGlider. However, with Williams F1 know-how and expertise in using electrification to enhance its race cars and Nissan’s desire to make its EVs more exciting, a longterm partnership looks highly likely.

The Clio Williams attained cult status

CarDealerMag.co.uk | 13

DASHBOARD.

Audi salesman avoids jail after running over his boss It was a ‘loss of temper in a difficult and heated situation,’ court is told

n Audi salesman who ran over his boss in an A3 after wrecking the office printer has avoided a jail term. Aaron Starbuck, 22, flew into a rage at Leicester Audi on February 29 after being ordered to leave the Narborough Road South showroom and come back three days later for a disciplinary hearing because of poor performance and his behaviour and attitude, the city’s crown court was told. According to the Leicester Mercury, the father-of-three left but came back a few minutes later ‘in a temper’. Prosecutor Steven Coupland said that Starbuck knocked over the £1,088 printer and refused to give his manager, Shakil Karim, the keys to his Audi A3, similar to the one pictured on the right. The court was told that when

Karim stood in front of the car to try to stop Starbuck driving off, he ended up on the bonnet and fell off when Starbuck swung out of the dealership, which is part of the Sytner Group. The manager suffered back and shoulder pain plus soft tissue damage and went to hospital. Starbuck, of Holmfield Avenue, Loughborough, admitted aggravated vehicle-taking and damaging the printer. In mitigation, Matthew Rowcliffe told the court: ‘It was a loss of temper in a difficult and heated situation, rather than something thought out. ‘He’d previously worked for a car

dealership and it had gone well. He encountered problems with Audi and was struggling with his employment and it affected his mental health.’ Judge Robert Brown told Starbuck he wasn’t sending him to jail as ‘the suffering to your partner and three young children would be out of all proportion’. Instead, he gave him a four-month prison sentence, suspended for a year, ordered him to carry out 80 hours of unpaid work and banned him from driving for a year. He said: ‘You lost control in a situation where you should have been able to control yourself and deal with things in the proper way.’

GARDX

New partnership is announced GARDX Protection has announced a new partnership with Cambria Automobiles plc as the official and sole supplier of paint and interior protection products to the group. Cambria Automobiles plc consists of more than 30 dealerships where the award-winning GardX Vehicle Protection system was launched across all of the sites during August. This latest acquisition for GardX is a great accomplishment. Victor Coutin, managing director of GardX, said: ‘This is yet another great partnership announcement for GardX and we are really delighted. ‘Cambria Automobiles are a very impressive business and a great company to partner with – we are confident this will be a very successful relationship.’

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

14 | CarDealerMag.co.uk

CarDealerMag.co.uk | 15

DASHBOARD.

Jim Reid named as dealer council head A ‘real appetite for change’ has been detected, as online platform looks to shake things up in the car classifieds world

im Reid will be taking the helm of AutoVolo’s dealer council, we revealed on Trade Plates TV. AutoVolo previously announced that it would be giving shares in its business to dealers who registered for its 1,000 Voices scheme. This gives dealers a say in how the business is run and training in how to make the most of the service, which will be headed up on the dealer side by Reid. The director of Jim Reid Vehicle Sales, in Inverurie near Aberdeen, said: ‘I think there’s a real appetite from dealers out there for change. ‘In the car classifieds market we all know there’s been one main player out there for years and years. The way I look at it, there are three ways that dealers can go. We can stay with what we’ve got now and moan continually about the costs of advertising. The second option is a dealeronly run website, but who runs that and where does it come from, where’s it funded from? Most dealers can’t even agree with each other, so how do we get a group together without being policed? ‘Or do we go with someone like AutoVolo who has already got some traction in the market place and fantastic growth?’ AutoVolo has announced that there will be two dealer meetings taking place in September. A southern meeting will take place on Wednesday, September 21 at the Mercure Heathrow, Hayes, Middlesex, with a northern meeting the following day, Thursday, September 22, at Clayton Hotel Leeds (formerly Bewleys), West Yorkshire. There is more to gain from joining the dealer council than having a say in how the business is run, although the chief executive of AutoVolo, Stefan Voloseniuc, said this would be a large part of it. The team will also be providing training on improving the sales process.

THE BREXIT VOTE EFFECT

Rebecca chats with (from left) Stuart Askey, Stefan Voloseniuc and Jim Reid He said: ‘Their influence will be maximum. They’re going to have 20 per cent and I would like to treat this as a family. ‘We’re prepared to spend the time once we have this 1,000 Voices set up. We’ll have quarterly meetings with them and help them learn how to improve the selling process.’ Voloseniuc added that he only wanted the best dealers involved and that Reid would be sharing his expertise to ensure that happens. ‘We have Jim here to make a good assessment. He has a lot of experience. Even today we were going through phone calls [made through AutoVolo’s website] and he said “there’s a lot to be changed.”’ Reid said that when he was first approached by the business, he wasn’t sure what to think. ‘I was really sceptical when I came down a few weeks ago. I had these guys telling me about air fresheners and getting their name out on buses, but it’s back-to-basics advertising,’ he said. Stuart Askey, sales director at AutoVolo, said: ‘It’s about putting the brand where the motorist is on a day-to-day basis offline. We’ve got a few new partnerships that we can’t divulge too much about yet, but hopefully we’ll be in 500 to 600 locations around the UK soon.’

TRADE PLATES TV CHOICES

DAKSH Gupta, CEO of Marshall Motor Holdings, revealed his thoughts on the UK economy and its impact on the car industry in the weeks since Britain voted to leave the European Union. ‘Three manufacturers that I’m aware of have put their prices up,’ he explained on the show. I think clearly one of the things [driving it] is “what’s the impact of sterling going to be?” ‘The majority, 85 per cent, of banks are saying it will go as low as 1.09. Clearly, that could have an impact on the margin the manufacturers make and that could have an impact on pricing.’ Gupta added that some manufacturers had been extremely supportive in this potentially turbulent time by reducing targets. ‘Not all of them, but certainly one or two. They’re live to the issue,’ he said. ‘I’ve got to give credit to, I won’t mention the brand, but it’s one of the premium brands that has reduced its targets by about 15 per cent and I think that’s quite responsible.’ However, the Marshall Motors boss doesn’t believe that increases in cost for the consumer are anything to worry about at this time. He said: ‘If you take what we’ve seen with these manufacturers that have put their pricing up, it’s only been one or two per cent. That, on a 36-month PCP with interest, is probably a tenner a month. I don’t think that’s going to be a driver to prevent the customer renewing their car. In addition, we have just seen an interest rate reduction. So what’s important is that the funders and the banks pass that on to consumers.’

There’s a packed line-up of shows available on Trade Plates TV. To watch live or catch up, head over to tradeplates.tv where you can talk directly to our guests using our chatroom system. Up next: The Finance Show – September 21, 3pm We’ll be talking about all the latest finance news and the big issues facing the economy with Fred Crawley from Credit Today Magazine and Blue Motor Finance.

Twitter: @tradeplatestv 16 | CarDealerMag.co.uk

Facebook: Trade Plates TV

Rebecca with Daksh Gupta on Trade Plates TV

Website: tradeplates.tv

Customer service for women? This is how you can really nail it

en are from Mars and women are from Venus, or so the saying goes. And no, I’m not really sure what it means either. But if we’re going to make sweeping gender generalisations, women are supposed to be the half of the species known for being the organisers, care-givers and more likely to ask questions when we’re unsure about something. So why, in 2016, 56 years after the MOT was introduced, are garages working on the basis that we need to be persuaded to take our cars in for what is, after all, a legal requirement? I can’t think of one woman I know who’s scared about taking her car to a workshop. Maybe annoyed at the inconvenience because she’s keeping so many other plates spinning, but not scared. Now I’m all for dealerships introducing new and luxurious ways for their customers to pass the time while waiting for their car to be serviced or repaired – and our visit to Poole Audi on pages 28-31 of this month’s mag provides ample evidence that this is definitely the way things are going. However, I don’t need to be patronised by a company looking to make going to a garage more comfortable for women who can be ‘put off by the experience’ – particularly by a business offering MOT-and-manicure deals. If that’s really the way forward, why not introduce IPA on tap at every department store in the country or football on TVs in dentists’ surgeries? Okay, bad examples… I can only really blame myself for getting in a tizzy, because I was reading the Daily Express. And, as any sensible person knows, nothing good has ever come from doing that. Anyway, I saw a story with quotes from a female employee and endorsed by a women’s driving group, saying what a fantastic first for the industry an MOT-and-manicure combo really is. I don’t actually have a problem with getting your nails done while waiting for repairs. It’s definitely a step up from reading a three-

Rebecca

month-old copy of a pointless gossip magazine. What I’m not too keen on is being treated like a scared mouse when I’m actually on the premises to engage in a fairly straightforward business transaction. Put simply, what I would like is to be given the same level of respect that a man would be shown in a car dealership. Don’t forget (and this is another generalisation), women hold the purse strings – another reason to take us seriously. So, do we have any genuine reason to be nervous about going to a car dealership or garage? Well, there does appear to be some worrying evidence. According to research by TyresOnTheDrive.com, 62 per cent of women surveyed ‘believed’ they had been quoted more for repairs than a man would have been. It could be all in our heads, but that’s a pretty high proportion of women who feel as though they’re being duped. Separate research by ClickMechanic says that, on

Chaplin ‘Women hold the purse THE VIEW FROM BEHIND THE SCENES

strings, a good reason to take us seriously’

average, women are charged £45 more than men for the same repair work. In an investigation, it asked male and female mystery shoppers to get quotes for a clutch replacement on a 2011 Ford Focus. ClickMechanic found that in more than 182 garages, women were charged more than men. I know that as an industry we’re forever trying to be more transparent. But these figures make me think that offering fair prices to everyone would be a much easier and cheaper way to make more money – certainly easier than introducing a beautician to your forecourt. But if you really want to make me feel more at ease in your business, I’m sure I could be persuaded by a bottle of white wine and a Michelin-starred dinner. Just make sure you throw a chauffeur home into the mix.

Who is Rebecca Chaplin? Rebecca is head of news and features at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV

Go to TradePlates.tv now to see our latest videos CarDealerMag.co.uk | 17

DASHBOARD.

Healthy results and a new appointment to the board Group has performed well during the financial year, says chief executive

ranchised motor retailer Cambria has reported strong trading in the second half of the financial year ahead of its preliminary results for the year to August 31, 2016. A statement from the board said that it followed a good first half, with trading in the first 11 months of the financial year substantially ahead of the corresponding period in 2014/15 on both a total and like-for-like basis. New vehicle unit sales were up by 11 per cent (like-for-like up 3.8 per cent), with gross profit per retail unit increasing year-on-year in the total group and in the like-for-like businesses. Used vehicle sales also performed well, with unit sales 4.4 per cent (like-for-like 2.6 per cent) ahead of the same period in the previous

year. Gross profit per unit continued to increase year-on-year, which has driven profit growth from the used car segment of the business. Aftersales operations also continued to perform well, with profitability up by 3.7 per cent year-on-year (like-for-like flat). Heading into the September trading period, the group’s new car order book was reported to be building well and in line with Cambria’s expectations. In addition, Tim Duckers joined the board as managing director of the motor division. He has more than

20 years of motor retail operating experience, and has been with the group since 2008. Mark Lavery, Cambria chief executive, said: ‘The group has performed well during the course of the financial year, delivering growth in the operating business and adding on earnings accretive acquisitions. The mix of franchises has been enriched in line with our growth strategy and the business is well placed.’ He added: ‘I am very pleased that Tim has accepted our offer for him to join the board of directors and look forward to him supporting myself and the team as we continue to expand the group further.’ Cambria will announce its preliminary results for the year ended August 31, 2016 on November 22. Market insight, p79

USED CARS

Strong demand boosts values, says cap hpi STRONG retail demand has supported used values in August with a reduction of 0.7 per cent at the three years and 60,000-mile mark, according to statistics produced by cap hpi. The automotive data experts say the stable market is due to consistent performances across sales channels, and is steadier than the 1.6 per cent reduction experienced during July. Auction activity has remained strong and despite the holiday season, the halls have experienced good attendance levels and the balance of this alongside an easing in stock levels led to conversion rates holding well. City car performance has been unusually strong with a reduction of only 0.7 per cent.

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It’s time to get The top reasons why you should enter the Car Dealer Used Car Awards 2016 The prestige: The Car Dealer Used Car Awards are sponsored by Black Horse and have become THE awards ceremony for the second-hand car sector. Winning one of our trophies can give your business a terrific boost because customers will know for sure that they’ll be getting a high quality of service from you. It’s priceless: But it doesn’t cost you a bean to enter the awards. It’s quick and easy: You can enter online. The variety: There are 20 categories in which you can vote, covering the whole industry.

The glamour: The event is held at The Brewery in London – an amazing venue in a great location that’s both small enough to give an intimate feel to the evening and large enough to host a fantastic celebration. Networking: The awards ceremony gives you the opportunity to rub shoulders with fellow motoring professionals and to make top contacts with people from across the industry. Entertainment: With food, drink, cocktails and a disco all part of the package, the awards night is also the ideal excuse for a Christmas party to put on expenses!

AWARD CATEGORIES Used Car Supermarket of the Year This award is for supermarkets that provide great cars and great service on a major scale. Used Car Dealership of the Year: Under 50 Cars We’re looking for the best dealership that stocks up to 50 used cars. Used Car Dealership of the Year: 51-100 Cars This award is for the best dealer that stocks between 51 and 100 cars. Used Car Dealership of the Year: 100+ Cars This one is for the larger dealers stocking more than 100 cars. Used Car Dealership Group of the Year Aimed at those with more than one site, this award marks the best used car groups.

Newcomer Dealership of the Year This is an award for dealerships established during 2016.

portals will be used to decide this category. Best Performing Used Car of the Year – Residual Cars that hold their value are like gold dust. We celebrate the ones that help put pounds in dealers’ pockets.

Specialist Used Car Dealership of the Year If you sell specialist used cars, you need to be a little special yourself to take home this prize!

Best Performing Used Car of the Year – Days to Sell Which cars are best at being shipped out as soon as they’re shipped in?

Manufacturer Used Car Scheme of the Year Honouring the best official manufacturer-backed Used Car Scheme of the Year.

Social Media User of the Year This award will mark the achievements of a dealer who has mastered their digital direction.

Used Car of the Year Data from industry trade bibles and advertising

Service and Repair Outlet of the Year We’ll be looking for the garage that excels in

Go to carawards.co.uk to fill in 20 | CarDealerMag.co.uk

nominating! When is it? The awards night takes place on Monday, November 28 and will be hosted by TV’s Mr Wheeler Dealer himself, Mike Brewer. Simply go to carawards.co.uk to fill in the online nomination form – you can enter as many categories as you like. Make sure that you give plenty of detail, though, to help our judges decide who should go on the shortlists, which will be drawn up by our judging panel, headed by Brewer. The closing date for nominations is Monday, October 31. You can also buy tickets for the glitzy event via the site, and we’ve got a great range of packages to suit all budgets. Alternatively, you can book tickets by calling the Car Dealer team on 023 9252 2434. So, what are you waiting for? Get your entries in and those tickets booked! We look forward to seeing you at The Brewery on November 28…

repairing and maintaining used cars. Dealers’ Dealer of the Year Award Recognition from your peers makes this award extra special. Mike Brewer and the judging panel will decide the winner from the nominations. Best Dealership Use of Video We’re looking for dealerships that have made the best use of video technology to present their products and services. Used Car Sales Team of the Year Behind every great dealership there’s a great team – and that’s who this award is for. Used Car Dealer Principal of the Year Running a successful used car dealership isn’t

easy. We’re looking for DPs who absolutely excel at it, and we’ll take nominations from teams and peers to ensure we find the best of the best. Best Used Car Customer Care Canny dealers know that cultivating a used car customer can create a punter for life – a loyal supporter who’ll return time after time. Used Car Product of the Year This one is for the suppliers. Whether it’s a brilliant online sales portal or a clever warranty scheme that helps dealers sell more cars, this award will celebrate the very best. Manufacturer Used Car Website of the Year We’re looking for manufacturers’ websites that present their pre-loved vehicles clearly, are easily

navigable and provide just the right level of interactivity to amuse but not confuse. Dealer Used Car Website of the Year Our judges will be looking for the ease of use, design and functionality of the website. Outstanding Achievement of the Year This award looks to recognise the dealer or dealership personality who has achieved something remarkable, whether it’s amazing sales figures, brilliant upsales or top customer service. Lifetime Achievement Award Previous winners have included John Tordoff of JCT600, Ray Sommerville, formerly of Perrys and designer Afzal Kahn. Once again, the judging panel will be looking for a big hitter.

the online nomination form CarDealerMag.co.uk | 21

DASHBOARD.

European Commission to meet consumer groups over dieselgate bit.ly/dieselgate-103

APPOINTMENT

Ashley becomes new MD at Fiat Chrysler UK

ASHLEY Andrew has taken over as managing director of Fiat Chrysler Automobiles UK. The 45-year-old most recently held the role of head of marketing at Škoda UK. Before that, he was head of operations at Seat UK, and has also held positions at Rolls-Royce, BMW, Mini and Ford. Married with two children, he has a BA Hons in business and economics from the University of Sheffield and an Executive MBA with Distinction from Warwick University. ‘I am delighted to be joining FCA UK at this exciting time,’ he said. ‘With award-winning products such as Jeep Renegade, Fiat Tipo and Alfa Romeo Giulia to work with, I’m looking forward to the opportunities ahead.’ He has replaced Steve Zanlunghi, who is now heading up FCA’s Australian operations. ‘Steve has left the company in an excellent condition,’ said Andrew.

TESTS

Singapore set for autonomous taxis SOFTWARE developer nuTonomy has started the first test of autonomous taxis in Singapore. Running in a 4 km² area in the western side of the country, it consists of a fleet of six electric vehicles, with the company adding its sensors and software to Renault Zoe and Mitsubishi i-MIEV cars. The company was set up three years ago by two researchers who specialise in robotics. 22 | CarDealerMag.co.uk

A new Dawn is in store for Rybrook Specialist Cars as it hosts four luxury marques Top brands are separated into unique showrooms around foyer by REBECCA CHAPLIN @believebecca

ybrook Specialist Cars in Bristol is preparing to officially open the doors to a one-of-a-kind dealership in the UK, hosting four luxury brands in one building: Rolls-Royce, McLaren, Lamborghini and Bentley. It’s approximately 25 years since Rolls-Royce was last represented in the south-west of England. For supercar brands McLaren and Lamborghini, they’ve never been represented in this part of the country. The dealership has been trading since June 1 and will have an official opening ceremony when Lamborghini arrives. The layout sees each brand separated into unique showrooms behind glass doors, all focused around a central foyer. Choosing the right dealer partner was extremely important to Rolls-Royce, as James Warren, its communications manager for the UK and western Europe, explained to Car Dealer. ‘We think incredibly carefully about who would make a suitable dealer partner. Rybrook has served us incredibly well in Solihull. They shared in our ambition to grow in the home country and were committed

Inside one of the showrooms at Rybrook Specialist Cars in Bristol to creating an incredible space here.’ This showroom brings Rolls-Royce’s representation in the UK to seven, and Warren added that Rolls-Royce was not averse to adding more locations. Speaking with dealer principal Mark Borwick, he credited the feat of gathering four premium brands under one roof to Rybrook managing director Henry Whale. ‘It’s been around 25 years since RollsRoyce was represented in this area, while McLaren and Lamborghini has never been represented here,’ he said. ‘It’s a credit to Henry’s strength and forte that he was able to get these four brands under one roof. There’s not another set-up in the country like this. If they’d come to me and asked me to set it up before, I probably would have said it’s impossible! ‘However, generally car buyers in this area have been willing to travel elsewhere in the country when buying a new car.’

The site is proving to be a success. Borwick said: ‘We’ve already taken orders for new Rolls-Royces, but Bentley will be the biggest volume brand here. We’ll sell as many of the sports cars as we can get our hands on.’ The latest addition to the Rolls-Royce brand is the drop-top Dawn, which sits proudly in the centre of the showroom. Warren said: ‘We thought Dawn would be a popular car for existing customers looking for a fun car for the weekend, but we’ve had a very pleasing number of new customers coming into the range with Dawn. ‘We’ve also seen a huge lowering of the average age of buyers, as we saw with Wraith. In terms of orders, we can’t build them quick enough!’

Ask Auto Trader

Have a question, or a suggestion for next month’s topic? I’d love to hear from you: marc.thornborough@ autotrader.co.uk

Putting a price on it Valuations are key to setting the right market price for a vehicle in order to attract more buyers, provide a fair part-exchange and to know what to buy a vehicle for at auction. Here, Auto Trader’s Brand Director, Marc Thornborough, answers some frequently asked questions about prices, valuations and the key challenges in ensuring their accuracy. How do you arrive at your valuations and why should we believe them to be any more accurate than those from rivals? It’s important to point out that Auto Trader market valuations are guide prices, but we do use a wider source and a bigger volume of data than anyone else in the UK to power our valuations algorithm which enables us to share the most accurate valuations available. While we are very confident in the provenance of our sources and data, and the technology that powers the algorithm, we recognise that proving accuracy is very difficult - any item is only worth as much as the seller will sell it for and the buyer will buy it for. That said we’re very committed to aligning the Auto Trader market valuation as closely as possible to the final transaction price. It will enable a retailer and consumer to have the best possible experience discussing any car purchase, because their expectations on price will be almost matched.

How do your valuations take account of vehicles with a lot of optional extras and rare vehicles – surely these cars are difficult to value without a proper appraisal? The challenge for every UK valuations provider is that manufacturers don’t have to record the extra options fitted to their vehicles. Delivering

accurate vehicle valuations without this data is particularly challenging. The Auto Trader market valuations are based on make, model and derivative plus mileage, and the car being in good condition. These are guide prices and a dealer’s own expertise and knowledge will help shape what they will actually offer on a car or take as a deal. This knowledge is particularly valuable when it comes to niche cars, such as celebrity-owned vehicles. The industry finds it a real challenge to value them, but a retailer’s experience can help asses this sort of car’s worth.

What are your plans to develop your valuations offering? We are looking at a full range of options to keep improving the accuracy of the Auto Trader market prices and we’re making sure we keep your feedback at the forefront of any developments. We are also working with partners to see if their data can help address some of the key challenges, and are looking at ways of capturing more information on the car’s specification to aid more accurate prices.

Why is it important for dealers to use the same valuations as consumers? Consumers value transparency as it helps build trust with a retailer. If the retailer and car buyer

are using the same valuations, this can really deliver that transparency, and a car buyer is much more likely to feel confident in doing a deal. Offering a part-exchange price that is in-line with a seller’s expectations makes for smoother negotiations - something that can really help sales, as we know nearly a third of consumers claimed to have walked away from a part-ex deal due to a disagreement on price.

Consumers are using your Part-Ex Guide tool for pricing, but this gives them false expectations of what their car is worth. What are you doing about this? We always make it clear to consumers the price provided is a guide only and based on a vehicle being in ‘good’ condition. We are always looking at improvements, including the communication sent to consumers that clearly explains any terms and how we might capture more info from them. We hear from those retailers that are using the Part-Ex Guide tool that it’s generating a higher quality of lead, the price can then be negotiated if the consumer is really interested in the car. A successful negotiation on a part-ex not only means a completed sale but can also secure a quality trade-in. This can save you significant auction costs, which on average is about £1,000, and boost your profit margins.

Find out more about valuations: trade.autotrader.co.uk/valuations For the latest news, views and insight from the automotive retail community, follow @ATInsight on Twitter

95635.002 Car Dealer Advertorial_valuation_Sept aw1.indd 1

07/09/2016 CarDealerMag.co.uk | 23

11:57

DASHBOARD. Tree o’clock, time for a meeting . . .

MAZDA

Recall affects millions of cars

n Maybe it’s their branch office... or perhaps it’s the ideal place to take a trunk call! n Whatever it’s used for, it’s not every company that can boast a treehouse as part of its HQ. n But this impressive structure is part of the new £15m home for call-handling experts Moneypenny, who have many clients in the automotive sector. n As well as the treehouse meeting room, the Wrexham building has its own pub and even a sun terrace. n The staff won’t want to go on holiday! (Perhaps that’s the idea...)

MAZDA is to recall 2.3 million of its vehicles around the world because of a tailgate problem and a separate diesel engine issue. Japan’s fifth-largest car manufacturer said that 2.19 million vehicles would be called back for a fix to the tailgate damper stays, which could be prone to corrosion through salt exposure and then break. The affected six models include the CX-3 SUV and Mazda 3 and were made between December 2007 and December 2015. It has been reported that paint has been incorrectly applied to the tailgates. In addition, some 110,000 of its vehicles that were made between August 2014 and last month are to be recalled in Japan because of a problem with the diesel engines’ computer.

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DASHBOARD. SSANGYONG

Cars will be very well prepared! SSANGYONG Motor UK has taken over control and management of its importation and reception base at Portbury, Bristol and created the SsangYong vehicle preparation centre. The new nine-acre facility includes a new fully-equipped five-ramp workshop, complete with 14 accessory bays and parts storage. Paul Williams, CEO of SsangYong Motor UK, said: ‘This is a big but essential step for SsangYong.’

APPOINTMENT

New marketing director at Kia KIA Motors has appointed David Hilbert, 38, as its new UK marketing director. Hilbert, above, has joined Kia from Toyota, where he was general manager of vehicle marketing for three years. Before that, he held marketing, sales and purchasing roles at the company. He worked in high street retail before joining the motor industry. Hilbert said: ‘I am really excited to be joining Kia at this point in time.’

SUCCESS

Infiniti keeping up sales momentum INFINITI continued its strong momentum when it sold 616 vehicles in Europe in August, almost twice as many as in the August of the previous year. Year-todate the car manufacturer sold 11,386 cars on European soil – corresponding to an increase of 169 per cent compared to the same period last year. Across the competitive EMEA (Europe, Middle East, Africa) region 1,499 Infiniti cars were sold in August – five per cent more than in August 2015. 26 | CarDealerMag.co.uk

A new phenomenon for the car industry: iPhonification bit.ly/iPhone-103

Dealership boss sent to jail over £86,000 VAT fiddle uncovered by HMRC probe Business partner is given a suspended sentence after false invoice submitted by JOHN BOWMAN john@blackballmedia.co.uk

he former boss of a motor dealership in Maidenhead has been jailed and his business partner given a suspended prison sentence for an £86,000 VAT fiddle. A VAT fraud investigation by HM Revenue and Customs (HMRC) revealed that Charles Henry Mogford, 53, and Julia Ann Smith, 51, who were company directors of Auto Exporters UK Limited, trading as Berkshire Land Rovers until July 2014, submitted a false purchase invoice to reclaim more VAT than was due. They made a VAT claim for buying 31 Land Rovers but the real invoice was for just two vehicles. The fraudulent invoice was dated January 22, 2010 and used to make a false VAT repayment claim the following month. At a hearing at Reading Crown Court on June 30, Mogford, of Ray Mead Road, Maidenhead, Berkshire, pleaded guilty to the fraudulent evasion of £86,118.99 of VAT. Smith, of Primrose Hill, Widmer End, High Wycombe, Buckinghamshire, had

Charles Henry Mogford and Julia Ann Smith reclaimed more VAT than they should have Pictures: HMRC denied the same offence but was found guilty on July 4, 2016. Sentencing was postponed until August 30, when Mogford was jailed for two years and Smith was sentenced to 18 months in prison, suspended for two years. In addition, Mogford was disqualified from holding any company directorships for ten years and Smith received a similar disqualification for eight years. Smith must also complete 180 hours of unpaid work. While sentencing Mogford, Judge Johannah Cutts QC told him: ‘You had the leading role in this offence,’ adding that she ‘believed that he had

doctored the invoice.’ The money has been repaid to HMRC. Following the sentencing hearing, Anthony Swarbrick, assistant director of the HMRC’s Fraud Investigation Service, said: ‘Mogford and Smith had traded legitimately, but greed led them to commit VAT fraud. ‘Our message is very clear – it is simply not acceptable to steal from the tax system and, ultimately, honest UK taxpayers. ‘HMRC will continue to pursue those criminals who attack the tax system and we ask anyone with information about suspected VAT fraud to contact our 24-hour hotline on 0800 59 5000.’

Jaguar organising group tests to showcase XE JAGUAR has been inviting customers to test-drive its XE against segment rivals during group tests at UK showrooms. More than 250 examples of the three main rivals to the Jaguar XE were obtained early in September and placed at key Jaguar retailers across the UK for the magazine-style tests to take place. Jaguar Land Rover UK managing director Jeremy Hicks said: ‘Our offer is simple: if you are interested in test

driving a Jaguar XE, but are uncertain about how it will compare against its key rivals, then contact your local Jaguar retailer and arrange your own personal group test. ‘It’s a bold move, never done before by a manufacturer in the UK, but the Jaguar XE speaks for itself. It is the best-looking car in its class, appealing to the heart but with class-leading running costs that add up to a shrewd financial purchase.’ It’s a bold statement but the UK MD

isn’t worried with the XE having won many awards already. He said: ‘It’s a class-leader across the key measures of efficiency, performance and cost of ownership and absolutely holds its own in the most hotly-contested sector of the market against the most established players in the world. ‘We know it, the critics know it, now it’s time for car buyers across the UK to know it – and crucially, experience it – for themselves.’

CarDealerMag.co.uk | 27

DASHBOARD. INTERVIEWS

Life in the lap of luxury at the Audi dealership with its own beauty spa and gym A whole day visiting a car showroom? How would you fill the time? SOPHIE WILLIAMSON-STOTHERT found plenty to do at Poole Audi...

n some ways it’s a pretty normal car dealership – complete with the usual glossy brochures and manufacturer-branded coffee cups. But while some of the things you’ll find at this particular showroom are fairly routine, there’s plenty here that you won’t find elsewhere. Covering a substantial four acres, the Poole Audi Centre in Dorset is not only the largest of its kind in Europe; it’s probably the most luxurious. It houses an on-site spa – thought to be a world-first for a car dealership – a well-equipped gym and a swanky airportstyle lounge in which customers can enjoy complimentary refreshments. Of course, the development of such an extravagant dealership came at a hefty price. A total of £14.5m was invested in the premises and now they’re all in situ, the 110-strong team relocated just a mile up the road from their former, and notably smaller, base.

28 | CarDealerMag.co.uk

Boasting groundbreaking facilities for customers, Poole Audi, in Old Wareham Road, was designed to transform the entire customer experience, be that in relation to servicing, parts, or the sale of new and approved used cars. David Kelly, MD of Poole Audi Centre, told Car Dealer: ‘The expansion of Poole Audi over the last 16 years stretched the previous Ringwood Road

facilities to the limit with 90 employees working in a building that was designed for 30. ‘With the opening of the new Poole Audi Centre, 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.’ The relocation and development of the centre, which coincided with the publishing of the business’s 2016 turnover projections at £79m, took just 14 months to complete – impressive for such a vast and complex site. What’s more, it has facilitated the creation of more than 20 new jobs in sales, servicing, parts, hosting and finance. Being the curious bunch we are here at Car Dealer Magazine, we were keen to experience the world-class customer service for ourselves. Surprisingly, and without too much armtwisting, we managed to persuade Audi Poole’s

PICTURES: JON REAY

It’s 9am at the dealership, and Sophie enjoys a cup of coffee as she looks forward to her day

Mark Laming chats to reporter Sophie head of business, Mark Laming, to allow us to spend an entire day with his team and get a real taste of what it’s like to buy a car from the UK’s largest Audi showroom. We dropped in very soon after the building opened for business. Laming said: ‘Since its conception in 2000, Poole Audi has continually expanded in excess of the national average and underwent one major refurbishment in 2006. In 2012 it was decided that a new home was needed for the business and the Old Wareham Road site was acquired. Four years later, here we are. ‘Today, having only opened the doors for business 48 hours ago, it already feels as though we’ve been open for months – but in a good way. We’ve been delivering cars to more than 15,000 loyal customers for the past 16 years, and they’ve been extremely supportive through the development of this centre. ‘Our aim was to be braver and provide more choice for everyone who walks into our

CarDealerMag.co.uk | 29

DASHBOARD. INTERVIEWS

Phew! Sophie’s never worked so hard in her life... a facial in the spa is followed by a session in the gym and a tour of Poole Audi’s four-acre site

showroom.’ Although, as Laming explained, the new showroom had only been officially open for two days when we arrived, we were greeted with a wonderfully warm welcome and, following a few too many cups of coffee, we were handed a menu. This was where our day in the life of an Audi Poole customer was to begin in earnest. Said menu was a treatment guide for the Lilliput Health and Beauty Spa. That’s right, while waiting for their vehicles to be serviced, or to kill time between appointments, customers can book a complimentary 30-minute treatment, or pay for a full hour-long session. Faced with a comprehensive choice of treatments, we finally decided on the 60-minute customised facial and were promptly guided to a comfy seat in the spa, before undergoing a personal consultation with a beauty therapist. 30 | CarDealerMag.co.uk

We were pleasantly surprised by the entire experience and didn’t for one moment feel like we were in a dealership; it was more like a fivestar hotel spa resort. It’s fair to say we left the spa feeling slightly more relaxed than anticipated. So the next activity on the agenda was designed to wake us up a little – a tour of the full facilities ahead of a test drive in an Audi RS6. As we made our way across the site, we found ourselves constantly astonished by the vast amount of space available and the incredibly futuristic facilities – especially in the workshop and parts department. Poole Audi houses 80 spaces for used cars plus 325 spaces for vehicles being stored and serviced – not to mention the half-acre of rooftop parking which is able to accommodate more than 100 vehicles.

Three climate-controlled, drive-in, drop-off and pick-up bays provide access to the new centre, enabling the entire service, MOT and sales experience to take place undercover. Meanwhile, inside, the new 8,300 sq ft showroom exhibits 24 new Audis, incorporates three hand-over bays, two HD display configuration rooms and a 24-bay workshop which incorporates two MOT zones with full valet and SMART repair facilities. Audi Poole has clearly been designed with the future in mind and it is a pioneering development that reflects the increasing expectations of Audi owners along with the pace of competition in the premium car market. While touring the facilities and meeting members of each department, from sales and service through to parts and customer service, it

LYNN LOWERY – SERVICE MANAGER

Sophie meets Simon Bignell, Sports sales specialist, before her test drive in an RS6

“

In 2012, it was decided that a new home was needed. Four years later, here we are. A spot of heavy lifting, right, during our day at Poole Audi!

was the passion of the staff and the pride they showed, which really grabbed our attention. ‘Staff and customer experience is key to our success,’ explained Laming. ‘Audi Poole has become a landmark in its own right, with around 30,000 cars driving past every day. ‘David’s vision for Audi Poole is one that was at first controversial, but has proved to be a step ahead of the competition. ‘When he suggested incorporating a spa, I have to admit that I was thinking “really?” but then it came to make sense, and I fully supported him in his vision.’ After a quick spin in the RS6 and a spot of lunch, it was time to slip into something a little more comfortable in preparation for an intense workout in the gym. We have to say, we preferred the spa session!

Nevertheless, we managed to row 2,000 metres and even lift a few weights. Featuring a cross trainer, rowing machine and treadmill, as well as a range of weights and aerobic equipment, the on-site suite is extremely well-equipped and ideally located next door to shower and changing-room facilities. It’s fair to say, by the end of our workout, we were more than ready for another spa treatment. But, more importantly, Poole Audi had proved to us

I STARTED working for Poole Audi in November 2002 and you could say I’ve since become a part of the furniture. I’m relatively new to management, so that’s been quite a learning curve for me. But I’ve managed the workshop for three-and-a-half years now and I can honestly say I love my job. If I had to give an example of one of the most fulfilling aspects of my role, it would have to be the trusting and lasting relationships I build with our customers. How did I get into it? I’ve always loved cars, ever since I started car-spotting with my dad. I guess I fell into the motor trade, starting off in accounts and gradually working my way up the ladder through various departments. I’ve always enjoyed the customer interaction that comes with this role. I’m a people person and that’s really driven me to take on a role where I can help and support others – not just my customers, but my team as well. I currently manage 35 team members, 20 technicians, four apprentices, six service advisers and five drivers. I know it sounds quite daunting but they’re all marvellous and working with them is a pleasure – watching them grow and thrive, especially. In 18 months, we’ve topped Audi customer satisfaction league tables, beating over 113 centres across the UK – I’m extremely proud to be a part of that. My ethos is that having happy staff equals a better service which results in happy customers.

that spending eight hours in a dealership isn’t quite as absurd as it sounds – in fact, it can be rather entertaining and great fun. What’s more, Audi Poole taught us that a successful business depends on having happy and motivated staff. ‘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 for many years to come, is a significant landmark in Poole Audi’s journey,’ concluded Laming. ‘We teach skills, but our real success is the desire of our staff. As well as an incredible site, we are blessed with a driven and transparent team. I like to think of Audi Poole as my legacy – a business and team that I’m extremely proud to be a part of.’ [CD] CarDealerMag.co.uk | 31

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DASHBOARD. APPOINTMENT

New member of the board at Bentley Motors

BENTLEY Motors has announced the appointment of Dr Andreas Offermann as its new member of the board for sales, marketing and aftersales. Offermann joins Bentley from Seat where he held the role of executive vice president for sales and marketing. He succeeds Kevin Rose who is retiring after a 30-year career with the Volkswagen Group. Prior to his position with Seat, Offermann led the global co-ordination of all national sales companies within the VW Group. Before that, he spent 17 years at Porsche AG in a number of senior positions, finally as head of sales operations. Offermann started his career at BMW, spending nine years in a variety of management positions, including head of product and volume planning for the overseas markets. Wolfgang Dürheimer, chairman and CEO at Bentley Motors, said: ‘I am delighted to welcome Andreas to Bentley.’

PEUGEOT

Another key role for Simon Bisp PEUGEOT UK has bolstered its sales department with the appointment of Simon Bisp as sales director. Bisp is currently head of sales programmes at the company and brings with him 15 years of experience within the PSA Group. A graduate of Warwick University, he has held several key roles within the PSA Group, including significant posts in distribution, aftersales and sales zone management. 34 | CarDealerMag.co.uk

PHEVs supplied for foraging fun FOWNHOPE Mitsubishi has teamed up with brand ambassador Charlotte Pike, right, for a food experience with a difference at this month’s Abergavenny Food Festival. The dealership, based in Kings Acre Road, Hereford, has provided a number of Outlander PHEVs for Charlotte’s foraging tour. Sam Peachey, director at Fownhope, said: ‘We hope the tour will give our customers an unforgettable experience.’

Average dealer recorded a £6,500 loss in July – ASE Figures also show a fall in the net profit as a percentage of sales ratio

he average UK motor retailer made a loss of £6,500 in July 2016, according to profitability specialists ASE, with the company saying the figure is significant for a couple of reasons. It says: ‘Firstly, it represents a deterioration of £10,000 on the performance from the prior year, when July was a profitable month. ‘It is also the first time in years when dealers have not made a profit, even a marginal one, in the first trading month of a quarter. ‘Before we jump to any conclusions over a general retail downturn or a dramatic impact of the Brexit vote, we need to wait until the end of the quarter. Inter-month performance can vary as brands change their fast

start bonuses and dealers change their internal policies, so we should not read too much into the result of a single month.’ ASE says that one trend which cannot be ignored, however, is the fall in the net profit as a percentage of sales ratio year-on-year. ‘Across the board, dealers have seen significant increases in turnover levels and have struggled to make as much

money as they did in the prior year. ‘This is expected to continue as we finish 2016 with profit levels looking like being, at best, on a par with 2015.’ ASE says there is no sign, yet, of the current level of tactical registrations leading to unbearable strain on the used car market, with return on investment remaining stable. Retailers have moved over recent months to improve their stock turn and this will continue to be an area of focus through the remainder of the year. ‘August is always a tough month and we expect no different in 2016. ‘All eyes will then point to September and the forecast bumper level of bonus income.’ Market Insight, p79

Dragon 2000 launches a new feature on its websites DRAGON2000, a leading provider of DMS solutions, is launching a new feature on its dealer websites to help capture and distribute vehicle video presentations. Dealers will be able to record videos using Dragon2000’s new mobile APPraise app or upload their own videos to YouTube and then attach these to appear alongside the vehicle stock details on the website. Vehicle video presentations are proving to be invaluable in the sales

process and are helping to convert sales. In addition to the new vehicle video presentations, the websites also give dealers a single point of data entry, as the websites are fully integrated with DragonDMS. Stock is automatically sent to Auto Trader, eBay, Motors and more, saving dealers time as there is no need to rekey cars into their website. Inquiries made on the websites are sent straight into DragonDMS CRM. A range of other functions are also

integrated, including finance, online service bookings, social media and live chat. Mark Kelland, commercial manager at Dragon2000, said: ‘One of the great benefits of our integrated websites is that dealers can manage them from their DragonDMS. ‘For example, if a vehicle is in DragonDMS, all the dealer needs to do is tick a box and it is instantly ‘‘live’’ on their website, including all images, specification and price.’

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36 | CarDealerMag.co.uk BRADFORD: The SsangYong range of 4x4s and SUVs is now available in Bradford and the surrounding area, following the appointment of Stanley Cars. The dealership will operate the SsangYong franchise from its premises at Canal Road. Welcoming the company to the network, Paul Williams, CEO of SsangYong Motor UK, said: ‘We and our dealers are focused on giving customers great service, so whether buying a new or used SsangYong, choosing accessories or helping to maintain their car, we are confident customers will appreciate the car, their dealer and the brand.’

Full steam ahead with £1.7m redevelopment NORTH YORKS: JCT600 has won planning permission to redevelop its Mercedes-Benz dealership in Pannal, just outside Harrogate in North Yorkshire. The proposal will see the site increased in size with a full refurbishment of the existing building. The final approved design, left, was agreed after a number of months spent working with council planners to find an acceptable landscaping solution for the site, which is close to a listed viaduct. The company, which acquired the dealership on Leeds Road in April 2015, plans to invest more than £1.7m in the development.

New state-of-the-art home for Volvo team

WOLVERHAMPTON: The city’s Volvo dealership, Brindley, is to relocate to a new state-of-the-art showroom, right. The move is the result of a £1m investment which will bring the company’s new car, aftersales and trade parts operations together under one roof. The purpose-built, 5,000 sq ft site, relocating Brindley Volvo to Stafford Road, will officially be opening its doors on October 3 following six months of development. The showroom will have enough space to display seven cars, while incorporating the Volvo Retail Experience (VRE).

New SsangYong dealership in Bradford

Jason the victim of an Olympic mix-up

BOLTON: A car dealership boss called Jason Kenny was being mistaken for the British cycling champion of the same name during the Rio Olympics – and received dozens of messages of congratulation on social media. Kenny, aged 46, comes from the same part of Manchester as his sporting namesake, pictured above – and says cycling is a hobby of his – but had to amend his Twitter account to make it clear he is not a gold medal winner. In fact, he is general manager at Perrys Bolton, and said it was an ‘absolute pleasure’ to receive the cycling champion’s tweets.

GLASGOW: Lookers is helping a hospice in Glasgow raise £21m as part of a major appeal to construct a new, state-of-the-art care facility. The Prince & Princess of Wales Hospice, which provides compassionate care for patients with progressive, life-limiting illnesses and support for those who care for them, needs to raise £2.8m to reach its £21m target. Lookers is donating a new Dacia Sandero 1.2 which has a list price of £7,290, to help it reach its funding target as part of a prize draw for those who pledge financial support. Shown left is an artist’s impression of the new hospice.

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

Lookers donates car to aid hospice project

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 37

Chairman’s award for excellent service CHELTENHAM: Bristol Street Motors Ford Cheltenham has been named the winner of one of Ford’s most prestigious awards – the 2015 Chairman’s Award. Ford Cheltenham, part of Vertu Motors plc, was recognised at an award ceremony in Paris as one of the top Ford dealers across the country for delivering excellent customer service. The Ford Chairman’s Award is judged on extensive research, which is carried out by Ford, to assess how customers feel about the quality of attention they receive from their dealer – whether buying a car or having their vehicle serviced.

Store is a world first for Spanish brand

Manufacturer’s ‘brand experience boutique’ LONDON: Aston Martin has opened its first brand experience boutique in the heart of London’s Mayfair district. Named ‘Aston Martin at No. 8 Dover Street’, it displays a range of the company’s products, experiences and brand collaborations. Aston Martin said that No. 8 Dover Street would also be a destination for design master classes, art exhibitions, dinners and other exclusive events. The new boutique will display products from Aston Martin partners including Hackett London, Marma London, Quintessence Yachts and Emilia Burano.

Staff ‘brave the shave’ to help raise funds

SWANSEA: Staff at a Mitsubishi dealership in Swansea have ‘braved the shave’ and had their hair cut off as part of a charity’s national fundraiser. Celtic Mitsubishi in Victoria Road, Gorseinon, took part in Macmillan Cancer Support’s Brave the Shave event, with four of the team getting a new look as the charity aims to get people standing proudly alongside men, women and children with cancer. Managing director Tony Sciascia went under the clippers, along with senior service adviser Paul Harris, site co-ordinator Bryan Tasker and technician David Jones. The four are shown below.

Snows Group expands into Somerset

SOMERSET: Snows Group has moved into new territory after taking over a Seat dealership in Yeovil, shown right. Located on the Lynx West Trading Estate in Brympton Way, it is the group’s first site in Somerset. The store will now trade as Snows Seat Yeovil, joining five other Snows Seat dealerships across the south. Overseeing the new branch will be Snows group director Neil McCue and franchise manager Sam Patterson. McCue said: ‘Working in tandem with the group’s five other Seat dealerships, Snows Seat Yeovil will lead the way for Snows Group in Somerset.’

ESSEX: Seat UK has taken the bold and exciting step of launching its first ‘Store’, in association with longestablished franchise partner, Group 1 Automotive, at one of the UK’s largest shopping centres, Lakeside in Essex. The Seat Store, above, the firm’s first store concept, gives the Barcelona-based brand further coverage in the highly competitive London and M25 area, as well as access to Lakeside’s millions of customers. Richard Harrison, Seat UK director, said: ‘Our new store is a world first for us, and I’m delighted to be working with Group 1 Automotive.’

WEST MIDLANDS: More than 2,700 jobs are set to be created in a new business district being supported by a government investment of £35m. The 24-hectare automotive business zone in Whitley, near Coventry, is aimed at attracting local manufacturers and supply chain firms from next year. Business and energy secretary Greg Clark, left, said: ‘Our world-class auto sector is leading the way and this new development will create thousands more skilled jobs. It shows how the private and public sector can work together to make a difference to the economy.’

New district will create thousands of jobs

WORCESTERSHIRE: Savilles Garage has opened a cutting-edge Renault and Dacia dealership in Kidderminster to replace its previous franchise of 16 years with Groupe Renault. The rapid growth of Renault, coupled with the value and potential of Dacia, were instrumental in Savilles Garage making the change to its business and investing over £700,000 in the extensive redevelopment of its sole dealership. The new dealership is based on the site of the oldest garage premises in Worcestershire, which is located off Worcester Road, Mustow Green, Kidderminster, that has been home to Savilles Garage for nearly 17 years.

£700k spent on extensive redevelopment

DASHBOARD. APPOINTMENT

Jon Wakefield named as Volvo’s new UK boss

VOLVO CAR UK has appointed Jon Wakefield as managing director. It sees him assume overall responsibility for Volvo’s UK operations on a permanent basis, having served as acting managing director since July. He joined Volvo Car UK in 2012 as sales director, and in his new role succeeds Nick Connor, who recently became chief executive of Polestar. Wakefield, pictured above, said: ‘I’m delighted to be taking up this position at such an exciting time for Volvo in the UK. ‘I’m confident that Volvo’s standing as a premium brand will go from strength to strength in the coming years.’ The Exeter University graduate has a track record of delivering success in automotive manufacturer and retail companies. His career has seen him progress through business development and sales roles at firms including Lex, Porsche, Bentley, Mercedes-Benz, Daimler Chrysler and Inchcape.

RAC

Network heading for 350 dealers AT least 50,000 used cars will be sold by the RAC Approved Dealer Network this year, according to new figures – meaning it has gone from zero to outstripping many manufacturer-approved used car schemes in just three years. Also, the network has just passed the 250-member mark. During 2015, it doubled in number to just under 200 dealers and plans to have around 350 by the end of this year. 38 | CarDealerMag.co.uk

JLR sales move ahead on the back of new models bit.ly/JLR-103

Motor Codes introduces a new nine-point plan to put buyers’ minds at rest Recent introduction of Consumer Rights and ADR legislation led to move by DAVE BROWN @CarDealerDave

otor Codes, the leading provider of codes of practice and alternative dispute resolution for the automotive industry, has announced a new initiative for the sector. It’s introducing the new ‘Motor Industry Code of Practice for Vehicle Sales’ – to be known as the Vehicle Sales Code. The code has been added because of the growing number of inquiries received from car buyers since the arrival of the Consumer Rights Act and Alternative Dispute Resolution (ADR) legislation last October. Citizens Advice has also reported that, as a category, used cars have represented the second largest volume of complaints from consumers since 2014. The Vehicle Sales Code provides guidelines on the sale of both new and used cars, as well as the supply of finance and warranties. Consumers can now be protected from the initial purchase of a vehicle, through to servicing and repair, subject to the codes that a trader is signed up to. Any independent garages or franchise dealers who adhere to the Vehicle Sales Code are voluntarily agreeing to operate to the highest standards. By meeting these guidelines, they are able to display the widelyrecognised trading standardsapproved Code and Motor Codes logos on their premises and website, thereby giving customers enhanced peace of mind. The Vehicle Sales Code covers nine different areas. These include the

Nine different areas are covered by the new code transparent wording of adverts and pricing, clear and transparent invoicing, and the sale of a used car which is supported by a vehicle provenance check to ensure that it has not been stolen, written-off and is free of any outstanding finance payments. It also says that retailers should provide test drives, avoid highpressure selling techniques, supply accurate advice on warranty and finance products, and deliver a vehicle with a full handover, complete with all historic documentation, the entire service history and a valid MOT. Furthermore, subscribers pledge to resolve any problems quickly and cost-effectively should a dispute arise

in relation to the sales process. As a last resort, retailers are able to refer a customer to Motor Codes, a trading standards-certified ADR provider, for adjudication prior to the awarding of a final decision. Bill Fennell, managing director of Motor Codes, said: ‘Following the recent introduction of Consumer Rights and ADR legislation, and the large number of inquiries seen by Citizens Advice regarding used cars, it became apparent that there was a need for a Vehicle Sales Code that offered consumers protection when buying a second-hand, or just as importantly, a new car. ‘This gap has now been filled, and the Code gives motorists the reassurance that they are dealing with a trusted and reputable trader.’

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Tributes paid after sudden death of motor group empire founder Paul Dixon bit.ly/founder-103

Skoda looks to Kodiaq to make firm impression in SUV market Preview in Berlin reveals advanced technology plus an interior that’s larger than average

koda’s ventures into the SUV market have been limited to say the least, with only the Yeti being viewed as a multi-functional people and cargo carrier. But the Czech marque is embarking on a new adventure by releasing its new Kodiaq; a five- or seven-seat SUV providing yet another choice in an already crowded market. Built on Volkswagen Group’s Modular Transverse Matrix (MQB) base, the Kodiaq is a new direction for Skoda, and as chief executive Bernhard Maier explained at the vehicle’s reveal in Berlin, this model is an integral part of Skoda’s Strategy leading up to 2025. Maier said: ‘We aim to take on all comers with the Kodiaq and make an impression on the SUV market. With our new SUV strategy, we hope to make Skoda fit for the future and fulfil our Strategy 2025 plans.’ So, what’s so special about the Kodiaq that makes it such an important vehicle for Skoda? Well, it’s the first true SUV in the company’s 121-year history, making it a truly allencompassing brand, and with the support of Volkswagen – which it has had since 1991 – this could be Skoda’s stepping stone towards a more premium market.

by JACK HEALY @jack_healy19

The Kodiaq will come with a wide variety of features to make it appealing to its new customer base. It is also more technologically advanced, with a wide range of assistance systems and new infotainment selections. In conjunction with the Kodiaq’s launch, Skoda also announced its new mobile application, Skoda Connect, which keeps owners up to date with their car’s condition and can transfer pre-planned routes to the navigation system. Kodiaq-first features such as the sensoractivated boot release and Area View – which uses four wide-angle lenses to get a top-down view of the car’s surroundings – also show that this new model is an important addition to the Skoda range. Skoda’s head of technical development, Christian Strube, said: ‘When it comes to driver-assistance systems, infotainment and connectivity, the Skoda Kodiaq proves Skoda’s innovative capabilities, offering technology of higher classes and therefore putting itself top of its segment.’

Despite being only 4cm longer than the Octavia, the SUV has a larger interior than the market average, and to make the Kodiaq more appealing to a wider market, a third row of seats can be added as an optional extra. With two diesel and three petrol selections coming in a 1.4 or 2.0-litre guise, the Kodiaq also has three transmission options: six-speed manual, six-speed DSG automatic and, as a Skoda first, a seven-speed DSG automatic. A plug-in hybrid model is also understood to be in the pipeline, with Maier saying: ‘Our electrification projects for our models are at full speed.’ Pietro Panarisi, head of Skoda UK PR, said: ‘With the Kodiaq entering the UK market towards the end of March 2017, we’re hoping for sales of between 8,000 and 10,000 next year, with a sub-£25,000 starting price for the base model. ‘We see this model as a big step change for Skoda in the UK and we think that it will be an attractive option in the SUV market, thanks to its great accessories and high build quality.’

CarDealerMag.co.uk | 41

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DASHBOARD. CLOSE BROTHERS

Almost £13,000 raised for hospital CLOSE Brothers Motor Finance employees have raised an impressive £12,898.47 for Great Ormond Street Hospital through a series of charity events. Employees took part in a range of fundraising initiatives, including a 1,300-mile cycling challenge between all of Close Brothers Motor Finance’s offices. James Broadhead, CEO, said: ‘I’d like to commend the efforts of all who took part in charity initiatives.’

FACILITIES

Leisure World joins MG network MG MOTOR UK has appointed Leisure World Group to its national dealer network. Based in Catterick, North Yorkshire, the familyrun business has more than 30 years’ experience in the sales of cars, motorhomes and caravans. Run by brothers Matthew and Chris Kinsell, the company has quickly expanded from its HQ in Catterick, now operating two additional facilities in York and Tyne & Wear.

MITSUBISHI

Dealership gives L200 to charity A MITSUBISHI dealership in Chesterfield is supporting a charity that inspires and educates youngsters. Gilder Mitsubishi has given Whirlow Hall Farm Trust an L200 pick-up, which is used daily on the 138-acre farm, and for taking animals to market. Ben Davies, chief executive of the educational charity, said: ‘The farm simply wouldn’t be able to operate without the vehicle that Gilder has so generously given.’

JLR offers first premium online-only purchase option bit.ly/Rockar-103

We’re off to a flyer with a sale a day! MIDLANDS-based dealership group Arbury has officially opened a state-of-the-art Seat showroom in Solihull. Seat becomes the latest in a long line of well-known automotive manufacturers that Arbury already represents across the region – and recently there was a successful launch event at the showroom. The new outlet will serve the Spanish marque’s customers in and around Solihull, offering a wide range of new and used Seat cars, including the award-winning Leon, the iconic Ibiza and the eagerly-anticipated all-new Ateca SUV. The new dealership also offers aftersales services with servicing, MOT testing, plus parts and accessories all under one roof. The dealer principal is Phil Yarnold. Yarnold told us: ‘We had a great launch evening. Richard Harrison, the head of Seat UK, came down and it was a wonderful evening. Seat has really welcomed us into the brand. ‘It’s going really well at the minute. We’ve had quite a lot of footfall and we’ve already sold 10 new cars for

September, so a car a day! ‘The brand is growing with the products that Seat has got coming out. Next year, we expect to be doing double or triple the sales, with a new facelifted Leon, a brand new Ibiza, a new crossover towards the end of next year and the launch of the new Ateca. ‘Seat has opened another 25 per cent of the market with the Ateca. I can only see the product and the brand getting better.’

The Arbury team are ready to welcome customers

Amazon Vehicles ‘a great resource for customers’ Site supports people during ‘one of their most important purchases’

mazon has announced the launch of Amazon Vehicles. It describes the new site as ‘a car research destination and automotive community that makes it easy for customers to get the information they need when shopping for vehicles, parts and accessories’. Customers can view specifications, images, videos and customer reviews for thousands of new and classic car models on the site. It stops short of actually selling cars, however, and the information it contains at present appears very much

geared towards an American audience. Adam Goetsch, director of automotive at Amazon.com, said: ‘Our goal is to support customers during one of the most important, research-intensive purchases in their lives by helping them make informed decisions every step of the way. ‘Amazon Vehicles is a great resource for customers who

The Amazon Vehicles site

are interested in car information or looking for a broad selection of parts and accessories – all enhanced by the ability to tap into the knowledge, opinions, and experiences of other car owners within the Amazon customer community.’ People can view comprehensive detail pages complete with specifications, images, videos and customer reviews for thousands of new and classic car models. They can browse tens of thousands of customer reviews and ask other car owners questions. The site is an extension of the Amazon Automotive store, which enables customers to add information about their current car to the Amazon Garage for shopping parts and accessories designed specifically for that vehicle. James Baggott, p90 CarDealerMag.co.uk | 43

List your stock for free on CarGurus Join the fastest growing auto-shopping site and start receiving quality leads from our informed, ready-to-buy shoppers

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DASHBOARD.

Around the world Dealer news from somewhere other than here

DUBAI

BENTLEY Motors has opened its largest showroom in the world, spanning an incredible 75,000 sq ft. Bentley Emirates is the result of a multi-million-pound investment by Al Habtoor Motors, the luxury brand’s exclusive retail partner in the United Arab Emirates. It boasts six floors, including a personal commissioning area, a roof garden, a VIP suite and a specialised water feature.

AMERICA

A CAR dealer in Texas has been luring customers in with Pokemon Go. Nick Schuman of Street Toyota in Amarillo had been playing the game, and when the business held a Pokemon Go event he found he bonded with fellow players. The event resulted in two deals being closed. The gathering cost $25 (£19) to advertise on Facebook and Instagram. The firm then spent $20 (£15) on lures, which attract players to a location.

FRANCE

A TESLA electric car caught fire during a promotional tour but those inside escaped unharmed. Tesla said in a statement that it was ‘working with the authorities to establish the facts’ about the fire in Bayonne. The Model S driver said he saw smoke and the three people aboard got out before it caught fire. Nobody was hurt.

CHINA

A DEALER in Nanjing sparked panic-buying when he spread a false rumour that authorities would be curbing car sales. It’s believed he might have done it as a reaction to how cars are sold in the east Asian state, where manufacturers set sales targets and demand showrooms buy them irrespective of whether they have any customers for them. Police detained the salesman, named only as Chen, for five days ‘as punishment for disturbing the social order’. Another salesman said that had the government not quashed the rumour so swiftly, his dealership’s annual sales goal would have been reached soon.

INDIA

POLICE have filed a case of fraud against a dealership in Vasai after 16 customers said they never got their vehicles, despite having stumped up for them. According to the Mumbai Mirror, the amount handed over to CarBerry, owned by Sandeep and Sunil Jha, who were both reported missing, could total ten million rupees (£1.1m). Refund cheques have reportedly bounced.

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

CarDealerMag.co.uk | 45

FINANCE. German premium brands dominate used car searches GERMAN premium car brands make up four of the five most common searches from buyers looking to finance their next used car, according to automotive data expert cap hpi. It also revealed that BMW topped the list on its website, based on consumer habits, with 13.64 per cent of searches throughout the month of July 2016. Only Ford broke up the German brands’ stranglehold on the top five, coming in ahead of Volkswagen, with 8.46 per cent of searches for the Blue Oval compared with 8.15 per cent of searches for VW. Philip Nothard, consumer and retail specialist at cap hpi, said: ‘Looking at the data from the number of used cars consumers are searching for online, there’s no arguing with the German dominance of the used market. ‘German-manufactured cars are book-ending the top 10, with BMW out in front and Porsche in tenth spot. The Germans give consumers the cars they want. Engineering, a long history of car manufacturing, quality and brand recognition are just some of the factors that help them remain popular and appealing.’

Growth sees firm move to larger HQ

Manufacturer BMW Audi Mercedes-Benz Ford Volkswagen Vauxhall Toyota Land Rover Mini Porsche

Percentage of recorded searches 13.64% 10.34% 10.03% 8.46% 8.15% 5.49% 3.61% 3.45% 3.13% 2.82%

Exposed: Huge loans being given to people on poor pay BMW Australia Finance is named as culprit in leaked consultants review

leaked review of BMW Australia Finance has revealed it has been lending to customers with zero and negative disposable income. Earlier this year, BMW Australia was held in breach of its credit licence and its finance arm was fined $697,000 (£409,000). This resulted in the independent review – the first of four and obtained by Fairfax Media. Consultants Ernst & Young found that in one case BMW Australia Finance lent $27,000 (£15,800) to a Car Dealer 1.pdf 6 05/08/2016 single mother withBanner 10 children, a C

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zero-hours employment contract and negative disposable income. In another case, it lent $23,300 (£13,700) to a refugee who had held a job for only one month. It also lent money based on earning projections rather than actual income in the case of a 76-year-old man, who received a loan of $50,000 (£29,300) – twice the value of the car he was buying. According to the report, a ‘strong sales culture’ was to blame and employees were paid ‘unprecedented bonuses’. A salesperson would receive $375 (£220) 16:00:06 commission for selling finance at the

GRAND OPENING

base interest of 5.49 per cent, but if they increased this to the maximum of 12.29 per cent the commission rose to $8,163 (£4,780). Ernst & Young examined 100 BMW Australia files that it believed to be questionable and found 98 per cent were in breach of the country’s consumer credit code. In a statement, BMW Australia Finance said it was working ‘to ensure the company is updating its processes to meet all regulatory obligations’. It’s unknown as yet what repercussions BMW Australia Finance will face. There is no suggestion that BMW Finance operations in other countries – such as the UK – have been caught up in the affair.

NEXTGEAR Capital UK has opened a new and larger office in Kingsfield Court on Chester Business Park. The company, which provides stock funding for the used car and LCV markets, said it had come about as a result of rapid business growth since opening its UK headquarters in 2014. David Mercer, NextGear Capital UK’s managing director, said: ‘With recent headlines about the UK used car market hitting record levels in the first half of the year, it is clear that our funding solution is helping dealers to capitalise on this strong consumer demand.’ John Wick, chief strategy officer and general counse for NextGear Capital US, said: ‘The growth of the NextGear Capital UK business has been phenomenal, and part of that success has been driven by the speed at which we were able to start up in Chester and the opportunities that being based here have given us for our continued expansion.’ Special guests from the UK and the US attended the grand opening of the new HQ.

IN ASSOCIATION WITH

True, not everything is rosy, but the outlook is definitely Great! I

hope you have all been keeping a keen eye on the post-Brexit vote situation. Since June’s referendum result, things haven’t really changed that much as far as consumers on the streets are concerned, although a lot of things happened during the month of June itself. For example, we saw the pound plummet and we saw both the FTSE 100 and FTSE 250 fall off a cliff, but none of this lasted too long. Recently we saw that GfK’s long-running Consumer Confidence Index had risen by five points. In August, all five measures used to calculate the index actually saw increases. It appears that consumers have settled into a wait-and-see reality of a post-Brexit, pre-exit UK.

‘Cutting back your marketing budgets? Think again!’ Interestingly, this has turned into an uplift in consumer confidence. This is because of a number of economic factors, including low interest rates, high levels of employment and falling prices. Let us discuss the pound. The pre-Brexit exchange rate was €1.30 to £1. This dropped to a low point of €1.15 following the referendum on June 23. It was fuelled by a number of negative comments from Mark Carney, the governor of the Bank of England, and also the fact that the monetary policy committee reduced the base rate to a record low of 0.25 per cent. This move, in my opinion, was made too early – just as we had started to gain momentum, reaching €1.19. In the following two weeks it led to the pound dropping €0.04 against the euro to €1.15 once again – as I say, our lowest

Ben

Garside TIME IS MONEY

point in this whole situation. As I write this, we are back to €1.18 to the pound, which isn’t that bad, but it does make me wonder where we would be if we hadn’t had interference from the Bank of England? The FTSE 100 drop was quite a significant one following the Brexit result, with about £100 million being wiped off the values of our leading companies in just two days. It dropped to a low of 5,982, but was quick to bounce back fairly shortly afterwards. In fact, it has been as high as 6,941 and, as I write this, stands at 6,842. This is about 600 points up on preEU referendum levels. The FTSE 250, which is seen as a key indicator of the health of the economy, took just one month to almost completely eradicate the losses it sustained in the immediate aftermath of the referendum.

Turn over page for more finance stories The FTSE 250 includes household names such as Auto Trader, Balfour Beatty and Debenhams, and closed a month later at 17,265.91 – just 0.2 per cent off its pre-Brexit levels. The FTSE 250 had dropped to lows of 14,967 and is now up to 18,193: a year high. Things are by no means completely rosy in the long term, with the definite exit ahead and trade agreements still to be agreed across Europe. However, in the short to medium term, the economy is stable and the outlook is great. We are Great Britain and one of the world’s greatest economies. So if you were planning on cutting back your marketing budgets, cutting back on staff or even moving to Europe, think again!

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 | 47

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . PHEVs VOLKSWAGEN GOLF GTE

AUDI A3 E-TRON THE Audi A3 Sportback e-tron was introduced in 2013, but with the new 2016 facelifted model Audi hopes to intrigue yet again with a stylish mid-sized PHEV. Paired with a 1.4 TFSI petrol engine, the Sportback e-tron has superb economy of 166.2 mpg combined and as low as 38g CO₂/ km. It also includes Brake Recuperation and excellent safety features to make it both practical and secure on the road. Audi is offering a three-year contract, with the customer deposit costing £7,994.95 and an Audi Centre contribution of £900. For the remainder of the contract, the customer pays £349 for 35 months, adding up to £12,215. Customers choosing to buy their A3 Sportback e-tron then pay £16,701.95 plus a £10 optionto-purchase fee, making the final total paid by the customer £36,921.90 – the recommended OTR price is £35,930.

BUILT with performance and economic intelligence in mind, the Golf GTE has taken the superb style and reliability of the Golf and combined it with a petrol/electric hybrid power system to improve the range and emissions. The ever-dependable hatchback has a 1.4-litre TSI petrol engine combined with an electric motor, producing just 35g CO₂/km, and has a combined range of up to 580 miles. The Golf GTE comes with only the 1.4-litre TSI DSG 5-door combination at the moment, and on a four-year contract, customers pay an initial deposit of £9,356.05, then 47 monthly payments of £315, totalling £24,161.05. If they then choose to buy the Golf GTE, they pay £12,024.60 (including the optionto-purchase fee), taking the total costs to £36,185.65, which is £4,355.65 more than the retail cash price.

Brexit vote ‘means shorter-term finance opportunity knocks’ Online experts report less casual browsing and more buying

rexit uncertainty for EU nationals in Britain is an opportunity for new shorter-term motor finance products, according to online car retail experts Buyacar.co.uk. Finance providers must also make early exit options as clear as possible, as it emerged that some EU nationals had become more wary of taking out long-term car finance. Buyacar.co.uk said that it detected the sentiment during July, after speaking to hundreds of buyers. While its business performance in July suggested no immediately negative market impact from the Brexit vote, some nervousness around long-term finance commitments was detected among EU nationals. Buyacar.co.uk believes uncertainty over16:01:17 Car Dealer Banner 2.pdf 1 05/08/2016 C

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by DAVE BROWN @CarDealerDave

the future economic shape of Brexit means consumers are doing less ‘window shopping’ and that there is a generally higher intent to buy among those consumers currently visiting the site. Managing director Austin Collins, pictured, said: ‘Rather than an immediate slump in sales, we have seen a typical mid-summer trading period so far. ‘In July we saw more determined buyers and less browsing of cars online on a purely casual basis. This was revealed by an increase in the conversion rate between car quotations saved

and actual purchases. However, what emerged in our contact with many customers is that EU nationals currently resident in the UK are increasingly wary around the issue of long-term finance. A significant number of those we have spoken to are citing uncertainty about their future residential status as a concern when planning for the medium to long term. ‘There are nearly three million EU nationals living in Britain and they are a significant customer segment for us.’ Collins added: ‘We believe this signals an opportunity for innovative finance providers to reach out to that segment with new offerings and reassurances around the exit terms of their existing products.’

Car Dealer Advert Column.pdf 8 05/08/2016 15:52:05

IN ASSOCIATION WITH

MITSUBISHI OUTLANDER PHEV AS one of the first PHEVs on the market, the Mitsubishi Outlander brought the plug-in hybrid concept to the fore and it’s been a huge success for the Japanese manufacturer. Thanks to its highly efficient 2.0-litre petrol and electric motor combo, you can expect more than 150mpg and combined emissions of 42g CO₂/km, making it one of the most economical and environmentally friendly vehicles on the road. Thanks to the government plug-in grant, there is a £2,500 contribution on top of a finance deposit contribution of £2,500 from Mitsubishi. The customer makes a deposit of £8,964 and, based on a 37-month contract for the Outlander PHEV GX3h 4WD Auto, then pays £299 a month for the remaining 36 months. If they choose to buy the Outlander, the last payment is £12,500, including the optional purchase fee of £10, taking the overall price for the C customer to £32,228 – which is £2,076 LESS than the OTR price. M

PARAGON

FLA

Applications over used cars ‘are growing faster than for new vehicles’

Performance of markets ‘in line with expectations’

THE majority of the UK’s largest motor finance brokers are seeing a faster rate of growth in used car finance applications than in new, according to the latest Paragon Car Finance Headlight Survey. During the first half of 2016, 62 per cent of the 30 brokers surveyed reported growth in used car finance applications compared with 48 per cent highlighting growth in new. In addition, while 38 per cent of brokers pointed to ‘a lot more’ growth in the used car finance market over the past six months, only 10 per cent of brokers reported such fast-paced growth for new cars. Looking ahead to the second half of the year, brokers believe used car finance will continue to perform well, with 43 per cent expecting more growth in used car finance applications compared with 33 per cent forecasting growth in new car finance. Julian Rance, who is the head of Paragon Car Finance, said: ‘Dealers looking to expand used car sales will need to make sure they have an attractive suite of finance products on offer.’

NEW figures released by the Finance & Leasing Association show that the point-of-sale consumer new car finance market grew one per cent by value and one per cent by volume in July, compared with the same month last year. The percentage of private new car sales financed by FLA members through the POS reached 85.3 per cent in the 12 months to July, up from 84.9 per cent in the 12 months to June. The POS consumer used car finance market also reported new business growth in July, of two per cent by value and one per cent by volume. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘The performance of the POS consumer new and used car finance markets remains in line with our expectations for 2016.’

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sales@dragon2000.co.uk  dragon2000.co.uk  01327  sales@dragon2000.co.uk  dragon2000.co.uk  01327 222222 333333 50 | CarDealerMag.co.uk

BIG MIKE.

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

Oh, smokers – how I miss you and your inglorious ways!

’ve seen many changes in the car trade over the past four decades and I’m sure there are many more to come. The one that truly breaks my heart, though, as both a car enthusiast and a car dealer of the oldest of old schools, is the demise of the ‘smoker’, a big old barge of a car that was once grand and beautiful but had descended to a level of inglorious decay, under-maintained, scruffily presented and run on a shoestring until the heartache became too much for its careworn keeper. To the likes of me, such cars were (and still are) wondrous specimens, but they’re rapidly disappearing. We’d occasionally take them in part-ex back in the day, but more often than not they were the result of an intertrade ‘who can pee highest’ competition at the bombsite auctions where they inevitably ended up. I’ve had no end of exotica that way. More Jaguars and Daimlers than you’ve had hot dinners (I adore them), old and baggy 7-Series BMWs, Mercedes S-Classes (including one with a privacy divider to stop the chauffeur overhearing your dodgy deals), a Bentley T2 (Silver Shadow to you and me) and my two favourites – a Maserati Quattroporte (the old one that looked like a giant Cortina) and a Ferrari 400i. To those of us in the trade, they weren’t expensive to run. For starters, we’d get them way behind book price. We’d get them MoT’d by our mates in the trade who somehow failed to see the gaping holes in the inner sills, and we’d drive them around on trade plates, which was often more legitimate than you’d give us credit for – we were taking them to show people, after all… Plus, we’d have some epic banter. Monday was auction day over at Walsall, where all the beaten-up old snotters would go through the block. Tuesday was the unofficial West Birmingham and Black Country car dealers’ pub lunch, where a gang of us would turn up in all sorts of ratty old executive horrors and royally take the piss out of each other’s purchases. I found some great cars that way, and some even better mates. Whatever you bought, you could always get out of. The process was simple – a ‘PX to clear’ ad in the paper, and even a sorry old Jag that was bowing in the middle would magnetise a council estate pub landlord if it had the best part of a year’s ticket, hooky or otherwise. It’s different now. Old Jaguars don’t snap

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

in half through metal fatigue, we travel to our (thankfully still vibrant) Tuesday pub meets in miserable diesel Astras, and car dealers no longer smoke around in interesting cars. We can’t, because trade plates are forcibly policed, and the tax on a car expires the minute the change of keeper (even into the trade) is notified. Even worse, the cars we used to love for a while and move on have become utterly unsaleable, and it’s only going to get worse. The reason is down to 10-year old tax rules. In March 2006, the government moved the vehicle tax goalposts, making it a bloody dear do to put rent in the windscreen of any car in the highest Band M tax bracket. Today, anything that emits more than 254 grammes of invisible stuff into the vasts of nowhere will set you back £515 a year before it has even turned a wheel. Apply that, if you will, to the V8-engined 2006 Jaguar

‘I found some great cars that way, and some even better mates’ S-Type that’s currently sitting on my lot. I knew the tax thing would kill it at retail when I agreed to take it in part-ex a year ago, but the owner had an eye on the alloybodied XJ6 I’d put up as Car of the Week, and I had good margin in it. I allowed £1,500 for it, which for a nine-year old Jaguar (at the time) was peanuts. Or so I thought. I’ve been trying to shift it for 12 months, and in that period I can count on the fingers of no hands the number of times the phone has rung about that car. It has attracted nothing but tumbleweed. Radio silence. Historically, of course, this wouldn’t have bothered me one jot. All the while it sat there not selling, it would have been conveying me to and from work instead, trade plates gaffer-taped to the windows. But I’m not paying fifty quid a month vehicle tax to drive what, in all honesty, has to be one of the most mediocre Jaguars ever made. Nor, quite clearly, is anyone else. And that’s why I’m going to set the lads on it and we’ll sell it piece by piece on eBay before we weigh the shell in. I feel terrible doing it, but it’s the only way I’ll get my money back. Jaguar S-Type, may you rest in pieces.

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 | 51

FORECOURT. BIG BOOT

720-litre luggage bay is almost 300 litres larger than that of a standard Tivoli.

EQUIPMENT

Only one trim level is available, and it includes everything you’ll ever need.

SsangYong Tivoli XLV

ENGINE

The 1.6-litre diesel is neither refined nor especially efficient, but it has bags of torque.

With bags of space and lots of kit, you’d think SsangYong would have a hit on their hands. What does James Fossdyke reckon? WHAT IS IT?

WHAT’S THE SPEC LIKE?

SsangYong’s latest model is the world’s first B-segment SUV estate. As a result, it’s short of direct rivals, yet it’s aiming to take sales away from a broad range of cars. The Honda HR-V, Nissan Juke, and Skoda Yeti are all in its sights along with its own stablemate – the Tivoli. No, that isn’t a misprint – SsangYong admits a fair number of XLV customers will simply buy it because its 720-litre boot is almost 300 litres larger than that of the Tivoli.

As the vast majority of standard Tivoli sales are accounted for by the top-spec ELX model, that’s the only trim level the XLV is offered with. Prices start from £18,250 and rise to £20,500, which is a substantial chunk of money, but you’re left wanting for nothing. Leather seats, keyless start, two-zone climate control, 18-inch alloys, a seven-inch touchscreen infotainment system, a reversing camera… the list goes on.

WHAT’S UNDER THE BONNET? Engine choices are limited – you can have a 113bhp 1.6-litre diesel engine or nothing – but you do get a small range of transmissions to choose from. A six-speed manual gearbox with front-wheel drive is the entrylevel combination, while a six-speed automatic is also available. No matter which you choose, you’ll still have the option of upgrading to a clever four-wheel-drive system. 52 | CarDealerMag.co.uk

WHAT’S IT LIKE TO DRIVE? Not so different from the standard Tivoli. The torquey diesel engine is still grumbly and unrefined, and there’s still quite a lot of tyre noise at speed, but it’s otherwise perfectly reasonable. It stays surprisingly upright through the corners, and though the front-drive car is a tad jarring over the bumps, the all-wheel-drive version’s multi-link rear suspension makes it more than comfortable enough. Despite the

impressive body control, though, this is no driver’s car. There’s next to no feel through the steering wheel, even in the weightiest of its three modes, and braking is a question of guessing how much force you need.

WHAT DO THE PRESS THINK? Autocar said: ‘It is impossible to ignore the fact that, spec-for-spec, the XLV is considerably cheaper to buy than any Qashqai, Yeti or Kadjar, yet it will carry more luggage and is every bit as roomy inside.’ Car said: ‘The Tivoli offered great value for money, a fuss-free drive and a well-built interior. Add the XLV’s improved practicality and you’ve got a seriously compelling package.’

WHAT DO WE THINK? SsangYong has a genuinely reasonable car on its hands, but despite the sensible asking price, spacious interior and huge kit list, most of those looking for a roomy SUV will still go elsewhere.

THE KNOWLEDGE Model: SsangYong Tivoli XLV ELX Auto AWD Price: £20,500 Engine: 1.6-litre turbocharged diesel Power: 113bhp Torque: 300Nm 0-62mph: 12 seconds Top speed: 107mph Economy: 53.3mpg Emissions: 164g/km

TARGET BUYERS: Anyone who likes the current crop of small SUVs but needs more space.

THE RIVALS: SsangYong Tivoli, Honda HR-V, Skoda Yeti.

KEY SELLING POINTS: 1. Huge boot embarrasses plenty of larger cars. 2. Cheap and lots of goodies. 3. It’s a SsangYong you might actually want to own.

DEAL CLINCHER:

It’s pretty much the same size as a Juke, but it has more cabin space than a Qashqai.

TECHNOLOGY

The Panamera is now offered with a range of new safety equipment, including optional night-vision cameras.

ENGINE

The new 4.0-litre V8 is smaller than the one it replaces but it’s also more powerful and more economical.

Porsche Panamera Turbo

FRONT END

Four-point LED daytime running lights featured on other Porsche models make an appearance on the Panamera.

Simon Davis takes a shine to the extendable rear wing as he takes this new, luxurious four-door grand tourer for a spin WHAT IS IT?

splitting into three parts as it does so. Interior-wise, the cabin is certainly a nice place to sit. Classy-looking black panel surfaces featuring touchsensitive controls have replaced the buttons of old, and a crystal-clear 12.3-inch touchscreen houses the new infotainment system. Here, you will find features such as satellite navigation – which comes WHAT’S UNDER THE as standard – and controls for the air BONNET? conditioning and chassis set-up, to The Panamera Turbo’s new 4.0-litre twin-turbo V8 may be slightly smaller name but a few. While this new layout looks the than that of its predecessor, but this part, in reality traditional buttons certainly doesn’t mean the car has are far easier to locate and use while lost any of its potency. you’re on the go. Power has been increased to 543bhp – 30bhp more than the older WHAT’S IT LIKE TO Panamera Turbo – while torque has DRIVE? also received a healthy boost, with The Panamera’s driving experience is the car now producing 770Nm. dominated by the explosive power of WHAT’S THE SPEC LIKE? the new 4.0-litre V8 engine. Even the slightest prod on the pedal will send One of the more eye-catching you forward at a significant rate of features on the big Porsche is its new extendable rear wing. We wager knots, and with a soundtrack to boot. Standard four-wheel drive that you’ll never tire of watching it emerge from the Panamera’s tailgate, means the Panamera feels planted The Panamera Turbo is Porsche’s second attempt at making an incredibly fast and luxurious fourdoor grand tourer. While the firstgeneration Panamera was a bit of an eyesore, this second-generation car is a dramatic improvement looks-wise.

through the twisty stuff, and grip is abundant. Even though this car lapped the Nürburgring in a staggering 7 minutes 38 seconds, the motorway is where it is most at home. Even at 125mph on a German autobahn, wind and tyre noise still don’t become all that irritating.

WHAT DO THE PRESS THINK? Auto Express said: ‘The Panamera is quantifiably better in almost every way – that it looks so much sharper only adds to its appeal.’

WHAT DO WE THINK? The Panamera Turbo is certainly an addictive car. The tower of power that is the engine will never get old, and the luxury and comfort afforded by the cabin only add to the car’s list of strengths. Usually a split personality can be a car’s undoing, but the manner in which the Panamera handles both sporty driving and leisurely cruising is genuinely impressive.

THE KNOWLEDGE Model: Porsche Panamera Turbo Price: £113,075 Engine: 4.0-litre twin-turbo V8 petrol Power: 543bhp, 770Nm Max speed: 190mph 0-60mph: 3.6sec MPG (combined): 30.4mpg Emissions: 212g/km

TARGET BUYERS: Anyone after a large, comfortable and incredibly powerful long-distance cruiser.

THE RIVALS: Maserati Quattroporte, Aston Martin Rapide, Mercedes-AMG S 63.

KEY SELLING POINTS: 1. Addictive levels of power. 2. Luxurious cabin.  3. Hugely refined long-distance tourer.

DEAL CLINCHER: A high-performance sports car and comfortable grand tourer all in one package. CarDealerMag.co.uk | 53

FORECOURT. BOOT

A wide tailgate and low lip make loading easy.

SAFETY

Higher trims come with active safety technologies.

Kia Optima Sportswagon

Darren Cassey welcomes this foray into the world of estates – but although the ride is refined, he feels let down by the engine WHAT IS IT? The load-lugging version of Kia’s compact executive saloon. Sportswagon is just fancy Kiaspeak for estate, and it’s a welcome addition to the Optima range because estates make up two-thirds of sales and 75 per cent of fleet sales in this segment.

WHAT’S UNDER THE BONNET? As with the saloon, there’s only one engine – a 1.7-litre turbodiesel with 139bhp and 340Nm of torque – but it feels a lot more sluggish. It also has the slightly clattery character of old diesel engines. However, its redeeming feature is economy – the manual is rated 64.2mpg and 113g/ km of CO2, while the automatic returns 61.4mpg and 120g/km.

WHAT’S THE SPEC LIKE? The interior is of a much higher standard than you might expect. Often with these relatively new challengers in the market, the inside 54 | CarDealerMag.co.uk

can look decent but the materials can be cheap interpretations of quality. The Optima Sportswagon feels well put together, though, and on a par with German rivals. The touchscreen is very responsive, though with many buttons moved to the screen’s menus from the dash to declutter, it takes time to figure out how to work some basic features such as climate control.

WHAT’S IT LIKE TO DRIVE? Kia’s ethos is to offer practical cars that are fun to drive. The Optima Sportswagon is certainly more fun than many rivals, offering a refined ride and enjoyable steering feel. However, the real let-down is the engine. Admittedly less noticeable with the DCT transmission equipped, it has no satisfying surge of torque and feels flat and linear throughout the range. For general city and motorway driving the Kia is excellent. This is how the vast majority of owners will

use it, so no complaints there, but if the South Korean manufacturer wants to build truly fun-to-drive cars it needs to work on that powertrain…

WHAT DO THE PRESS THINK? Auto Express said: ‘The lesser models offer plenty of kit, so unless you desperately want the GT-Line S’s bells and whistles, a more modest variant makes greater sense.’ Car Magazine says it is ‘a wagon that carries no real penalty over the saloon other than a couple of grams of CO2 and a slightly higher price. Impressive stuff.’

WHAT DO WE THINK? The D-segment is a busy place and Kia has, by its own admission, struggled to make the Optima sell. Now it has the capability to build this estate version there’s no reason why buyers shouldn’t check it out as an alternative to established names such as BMW, Audi and MercedesBenz. It honestly doesn’t feel like a step down.

SUSPENSION

Sportswagon gets a revised set-up to handle heavier loads.

THE KNOWLEDGE Model: Kia Optima Sportswagon Price: £22,295 Engine: 1.7-litre turbodiesel Power: 139bhp Max speed: 124mph 0-60mph: 9.8 seconds Economy: 64.2mpg Emissions: 113g/km

TARGET BUYERS: Company car buyers looking to save a little bit of money or try something new without sacrificing quality.

THE RIVALS: Ford Mondeo, BMW 3 Series, Volkswagen Passat.

KEY SELLING POINTS: 1. Loads of boot space. 2. Looks great. 3. Drives just like the saloon.

DEAL CLINCHER:

Offers decent quality without the cost of premium brands, and now with more boot space.

Dealer Promise Be trusted, sell more

The Dealer Promise builds unrivalled confidence by reassuring your customers they are in safe hands when buying a car from you. How it works... Clarity - show customers you have signed up to deliver the best customer service experience Commitment - communicate with your customers your core values including minimum of six months MOT and test drives on all vehicles Reassurance - buyers know your promise to deliver all documents, offer free breakdown cover and carry out history checks Confidence - AA branded POS clearly partner you with the UK's most trusted brand Reputation - confirming your integrity, openness and position as a reputable dealer

01920 877750 aacars.com

CarDealerMag.co.uk | 55

FEATURE. VW GOLF GTI SPECIAL

THE

GAME CHANGER

Past meets present in spectacular fashion as we arrange for a 1984 Golf to meet its modern counterpart then take them both for a spin in the rolling Welsh countryside. Rebecca Chaplin compares and contrasts...

THE KNOWLEDGE Model: Mk1 Golf GTI Price from new: £3,372 Engine: 1.8-litre four-cylinder petrol Transmission: Five-speed manual Power: 110bhp/152Nm Max speed: 114mph 0-60mph: 8.4 seconds Economy: 35.2mpg (comb’d) Emissions: N/A

56 | CarDealerMag.co.uk

PHOTOGRAPHY: JONNY FLEETWOOD LOCATION: NORTH WALES

t’s 8am and Wales is offering up its usual mixture of freezing air that locks up your lungs with a thick mist, making everything damp to the touch. We’ve driven here to what is, effectively, a deserted pub car park in the middle of nowhere, in the most recent generation of the Volkswagen Golf GTI. Today, we will reunite it with its antecedent and pit them head to head around the roads of north Wales. Already, the Mk7 Golf has won hearts and minds. The four-door hatchback demonstrates what Volkswagen does so well. It’s compact and practical but hasn’t forgotten about the driving quality that GTI is renowned for. Cruising into Wales was a dream as, after some

hellish traffic on the M6, we took a detour and stumbled across a winding road into the country. The Golf GTI has to be the most understated of modern homages to some of the greatest performance hatches of all time. Unlike the Peugeot 208 GTi, it isn’t available with a look-atme paint job, but put to the test it has to be one of the greatest for outright speed and versatility. The Golf is far more subtle in its approach to hot hatchery these days, standing stoic in the morning mist. It has a subtle hint to the power inside thanks to that characteristic red stripe across the grille, plus the designers have turned up the styling with more sharp edges, a larger air intake and fierce-looking vents. Back to the car park, and members of the Car

Dealer editorial team are huddled around waiting with bated breath. Unfortunately for the modern Golf, we’re all far more interested in the 1984 car that the delivery driver is unloading from off the back of the truck. He fires it up, demonstrating the low growl from the four-cylinder engine. As he begins reversing it to the ground, the squared edges of this silver GTI become visible. That distinctive black detail on the rear window appears, the P-slot Pirelli wheels roll into view and the original GTI badge stands proud on the rear. As the front end becomes visible it’s impossible to miss that black bumper – although if the addition of that plastic hanging on the front makes any real difference to performance we’ll

THE KNOWLEDGE Model: Mk7 Golf GTI Price from new: £27,495 Engine: 2.0-litre petrol Transmission: Six-speed manual Power: 216bhp/350Nm Max speed: 153mph 0-60mph: 6.5 seconds Economy: 47mpg (comb’d) Emissions: 139g/km

CarDealerMag.co.uk | 57

FEATURE. VW GOLF GTI SPECIAL be extremely impressed – and, of course, the red pinstripe detailing around the grille. Yes, the Golf has come a long way in almost 40 years, but it’s impossible not to appreciate how far ahead of its time this vehicle was. The dash is filled with lights for gadgets and gizmos you’d now expect as standard on a modern car – an arrow instructing the driver when to change up a gear and a readout for your miles per gallon, for example. However, in this case a small orange light bulb powers the arrow and the mpg readout could have come from a Casio watch. The interior of the Mk7 is crammed with kit in comparison, now featuring a seven-inch touchscreen, and I quickly remember just how minimal the classic is. Similarities remain, though, as the latest edition is still available with the trademark tartan seats and golf ball gear knob – although our original is missing the former in this case… As mentioned earlier, the GTI was designed for roads like we have in front of us. Miles and miles of sweeping Welsh highway await, weaving up to the mountains of Snowdonia. Although the Mk1 cost a little more than £3,000 in the 1980s, good examples can fetch £10,000 or even more at auction nowadays. Even so, despite the car’s iconic interior, the first-generation Golf doesn’t quite drive how you imagine it would – or, indeed, would like it to. Maybe that’s why they say never meet your idols... The first-edition Golf rides too high for a performance hatch, so bombing around corners it’s nowhere near as capable as modern rivals. But really we shouldn’t have been surprised. The gearstick is more akin to a walking stick placed in the middle of the dash, but to be fair to Volkswagen changes are on point for what’s a 32-year-old example. And hey, those brakes aren’t going to win any awards by today’s standards, nor do we think NCAP will be giving it any stars soon. But the seating position – in what look like amateurish bucket seats but were really one of the first attempts at bringing something sporty to the mainstream market – gives you the confidence you need and wills you to push it harder.

‘The first-edition Golf rides too high for a performance hatch, so bombing around corners it’s nowhere near as capable as modern rivals. But really we shouldn’t have been surprised.’ Sitting behind that squared-off steering wheel bearing the GTI name, you can’t help but feel as if you have power at your fingertips. In truth, we have to see the Mk1 for what it is – a trailblazer. Let’s thank the creators of the Golf GTI for giving us the mindset that performance and fun could be accessible to the everyday man and woman. But we also have to praise Volkswagen for continuing down this path to give us what is a truly fantastic car today. It’s transformed itself from a fairly frugal (compared with today’s performance hatches) 1.8-litre four-cylinder engine with merely 110bhp to a two-litre turbocharged engine with 216bhp standard on the latest Golf GTI.

However, there’s now the added bonus of the Performance pack giving you an extra 10bhp, not to mention what’s available in the special 40thanniversary edition… Boasting a limited top speed of 155mph and being able to climb from 0-60mph in 6.4 seconds puts it in a totally different game to its predecessor, but Volkswagen wasn’t prepared to stop there. Now it’s gone all out and produced the fastest ever GTI – the Clubsport S – complete with two seats less than you’d expect to find, which our man Andrew Evans has been putting to the test on the following pages. Proof, if any was needed, that Volkswagen and the legendary GTI badge that it’s been nurturing for decades will be around for many more years to come.

and carved a revolutionary new genre almost completely off its own back. Yes, aficionados, we can hear your mutterings from here, but the Golf GTI was the first and proper hot hatch, and the events that led to its birth remain a fable well worth telling. The GTI began as the guilty secret of two talented Volkswagen employees: development engineer Alfons Lowenberg and PR director Anton Konrad,

both of whom had strong motor racing roots. Motorsport wasn’t on the VW radar in the early 1970s, but Lowenberg, displaying his passion for competition, believed that the (still preproduction) Golf held promise as a rally car. The sending of a memo hinting as such to six senior managers in March 1973 found a mixed reaction. While it sparked a strong dismissal from some, Hermann Hablitzel, the manager of

GOLF GTI: HISTORY GTI. Three letters that conjure up images of golf ball gear knobs, tartan seats and, above all else, fantastic fun. Of course, the title itself doesn’t necessarily mean much, for many manufacturers claim the GTI badge as their own. Look at the 205 GTI, celebrated for its cult status in Issue 90 for example. Surely it deserves the hallowed letters more than any other? Well, sorry, but there’s really only been one GTI. And its name is Golf. As with all true icons, a world without the Golf GTI is nigh-on unthinkable in 2016. It’s a vehicle that has defined an automotive generation 58 | CarDealerMag.co.uk

The mark of a true classic...

Spot the difference inside the two Golfs old (left) and new

FIRST DRIVE Turn the page for the Volkswagen Golf GTI Clubsport S… Taking to the remote Welsh highways in the latter-day Golf

passenger car development, encouraged the idea. He founded an unofficial working group, led by Lowenberg, to develop his sporty vision. To avoid detection, many meetings were held well away from the factory, eventually resorting to Konrad’s own home. The task of Project Test Mule was given to a pre-production Golf, equipped with 6x13in rims, lower springs, different shock absorbers and a power plant sourced from allies at engine testing. According to official reports, the initial Sports Golf was a thinly disguised rally machine, with

wide rims, rock-hard suspension and a deafening exhaust note. When Lowenberg showed the imposing creation to the head of research and development even that strong sceptic was begrudgingly impressed. This, combined with resoundingly positive road tests and the upcoming Frankfurt Show requiring a showstopper, meant the Sports Golf received factory backing in May 1975. Six prototypes were created, and when Herbert Schuster – later referred to as the ‘father of the GTI’ – came across from Audi, he mixed

and matched specifications until the perfect combination was found. His arrival wasn’t the only Audi whiff about the prototype, though, as the engineers crucially fitted fuel injection, nabbed from the forthcoming Audi 80 GT. Interestingly, Schuster maintains that the reasoning behind the ‘GTI’ name was merely to distinguish it from the sister Audi 80 GTE. However, while the ‘E’ in GTE stands for the German equivalent of ‘injection’, the ‘I’ in GTI has never been given a proper explanation. The rest, as they so often say, is history. CarDealerMag.co.uk | 59

FEATURE. VW GOLF GTI SPECIAL

FIRST DRIVE

VW GOLF GTI CLUBSPORT S A few things may have been left out of this new model – not least the back seats – but Andrew Evans finds there’s still plenty to enjoy WHAT IS IT? It’s the fastest front-wheel-drive car around the Nürburgring, a stripped-out hardcore celebration of the 40th anniversary of the Golf GTI and a limited edition collector’s piece all in one. The Golf GTI Clubsport S is the result of asking engineers to do what they can to cement the GTI’s name in the hot hatch pantheon.

WHAT’S UNDER THE BONNET? Lifting the Golf’s bonnet will reveal the same twolitre, turbocharged petrol you’ll find elsewhere in the Golf range – notably the Golf GTI and Golf R. In this application it’s been turned up a little bit, producing 306hp – broadly similar to the Golf R’s output but with a different exhaust system freeing up a couple of horsepower. That’s paired with the six-speed manual gearbox for weight purposes, as the DSG’s extra few kilos would work against the weight-saving nature of the Clubsport S.

WHAT’S THE SPEC LIKE? To all intents and purposes, the GTI Clubsport S is a top-specification Golf and it comes with the appropriate bells and whistles. The infotainment system is fitted as standard – Volkswagen’s Discover Navigation with a 6.5-inch colour screen – but you can upgrade to

INTERVIEW Joe Laurence, product manager responsible for the Golf range in the UK 60 | CarDealerMag.co.uk

the Discover Pro for £1,325, which adds a larger screen and DAB radio. You’re missing one or two things – not least of which are the rear seats, replaced with a faux strut brace and cargo net. Cruise control is absent, unusually, leading to an oddly sparse suede steering wheel.

WHAT’S IT LIKE TO DRIVE? It drives exactly as you’d expect the car that set the fastest front-wheel-drive lap of the Nürburgring ever to drive. It’s really very savage in a straight line, barking through the exhausts with every upshift at flat chat, and scrubs off speed no less impressively. The sticky Michelin Pilot Cup tyres offer huge amounts of grip, too. On the mixed and drying roads we used, the Clubsport S exhibited a bit of torque steer if you gave the car some stick, but far less than you might expect. Otherwise, it’s a very neutral car to drive on the road.

It’s a very odd move to turn a car with such broad

credentials into a two-seater sports car, especially as the rear compartment trim is still present, but you can’t really ignore the way it drives. The Golf R might be a safer bet for all-weather performance, but the Clubsport S makes a great case for itself on dry roads and doesn’t feel as wrung out as other front-wheel-drive offerings of similar power outputs. Losing the rear seats does make the Clubsport S a bit of a tough sell when silhouette rivals retain the family usability and two-seat competitors are commonly less expensive, but as all of the UK’s allocation of 150 have already been sold, it’s almost a moot point.

There have been 150 cars allocated to the UK – have they all been sold yet? Yes. There has been very significant interest in this limited edition, numbered, Golf GTI. Indeed, we had sold more than 100 of the cars before precise pricing and specification were announced. Why has such a big proportion been allocated to the UK? Outside Germany, the UK is the biggest market for the Golf GTI in the world and we have a very large, loyal fan base for the car here. Therefore it made sense to offer as many Clubsport S models in the UK as we could.

Is this really limited or is there a chance you’ll do a second run? There are no plans for a second run currently. Are there any plans to continue to develop the lightweight Golfs as this has been so successful? The investment in time and money to develop the bespoke set-up for the GTI Clubsport S was not insignificant. I would hope that this learning could help inform future performance Golf models. How has the reaction been to the car from both the public and your network? The response to the GTI Clubsport S has been

WHAT DO THE PRESS THINK? AutoExpress reckons that the Clubsport S has ‘even more involvement and surprising refinement’, while Autocar thinks that it’s ‘by a nose, the very best fast Golf you can buy’.

WHAT DO WE THINK?

REAR WING

THE KNOWLEDGE

Reduces the high-speed lift of the regular Golf to provide downforce.

REAR SEATS

In the pursuit of weight loss, the Clubsport S has no space for rear passengers.

LIMITED EDITION

The UK will be getting 150 cars from a total of 400.

Model: Volkswagen Golf GTI Clubsport S Price: £33,155 Engine: T wo-litre, four-cylinder petrol Power: 306hp, 380Nm Max speed: 165mph 0-60mph: 5.7s MPG (combined): 40.4mpg Emissions: 172g/km TARGET BUYERS: The performance car enthusiast who loves the Golf but wants a sports car. THE RIVALS: Honda Civic Type R, Porsche Cayman, Ford Focus RS KEY SELLING POINTS: 1. Limited edition cachet 2. Unflappable cornering manners 3. Usable real-world performance DEAL CLINCHER: It’s no harder to live with than any other Volkswagen Golf

overwhelmingly positive from customers, fans and the Volkswagen retailer network in the UK. This is the first truly track-focused Golf we have developed, and whenever we do performancefocused concept cars we normally get the same response: ‘Please put it into production’. It has been very gratifying, therefore, to be able to see customers placing their orders for the car, and we are all now looking forward to deliveries of the GTI Clubsport S beginning later this year. Why was the decision made to produce such a hardcore car when previous anniversary editions have been more mild updates? We wanted to do something extra-special to

mark the 40th anniversary of the GTI, and creating a car to challenge for – and actually take – the front-wheel-drive lap record at the famous Nürburgring Nordschleife is, we feel, a suitable way to mark the occasion. How many people have decided to spec up the car with climate control, the superior nav, etc? It’s not possible to add any spec to the GTI Clubsport S. We wanted to ensure the cars are specialist and a piece of history, so we didn’t want the experience of buying a Clubsport S to be like ordering a ‘normal’ car. There has been no brochure or configurator for this Golf. The only decisions a customer could make were

which colour to opt for (black, red or white) and whether to delete the air conditioning system, to save some weight, or not. [CD]

CarDealerMag.co.uk | 61

S WA N S WAY S H I N E O N L I N E thanks to collaboration with industry specialists GForces

With technology constantly evolving and consumer demands adapting to it almost as fast, just keeping pace with today’s connected customers is a serious challenge for vehicle retailers. Swansway Group, a premier dealer group based in the North West, decided that in order to deliver a new benchmark in their digital offering, collaboration and outsourcing was going to be key to its success. They chose GForces, a company purely focused and dedicated to the automotive industry to deliver the project. Working together provided the opportunity to build an online dealership bringing all of Swansway’s brands under one roof, and one that incorporated intelligent lead generation tools. We join them for a Q&A about the project.

Anna Ling, Group Marketing Manager

What concerns, if any, did you have about launching

Swansway Group

a new website? There was initial concern that the individual dealerships might not

What led to the demand for a new Swansway website? Great developers are hard to come by and we knew we would never be able to keep up with the development speed of a dedicated agency. We’ve always had an in-house website team, and they’ve become more in demand and under pressure over the last few years. Even doubling the size of the team just three years ago still wasn’t enough, so we came to the decision to outsource the main group

want to lose their dedicated websites. Thankfully, the great design and infrastructure provided by GForces was so good there was no resistance at all. The enthusiasm of the centres for the new project meant we had their buy-in from early on in the process. The enormity of moving from 21 websites to just 1 possibly took a little while to kick in! There was a huge amount of work to be done and our marketing team really pulled out all the stops, working with GForces to make sure that everything was in place and ready to go.

website and focus our internal team on other bespoke projects.

“The structure and content has been built with focus entirely on the customer journey... an area of expertise for GForces.” 62 | CarDealerMag.co.uk

How were these concerns addressed throughout the project? The great relationship we enjoyed with the GForces team meant that we could be totally honest with each other. We did worry at times that the sheer volume of work we had to get through was just not going to be doable by the go live date. GForces massively supported us and together we achieved the fantastic end goal.

What were the absolute essential elements you wanted to see incorporated into the new site? Our research suggested consumers expected several factors which were critical to them, and that’s what became critical to us. Live chat that enabled customers to talk directly to a sales person about a particular vehicle for instance. Being able to configure a new vehicle without being redirected to a different website was another. Most importantly though, customers wanted to see market-led valuations for their own vehicles alongside group stock search so they had all the facts and figures to hand. How do you think the new site will impact and benefit Swansway customers? The structure and content has been built with focus entirely on the customer journey. This is an area of expertise for GForces. The data and insight they provided from their NetDirector® Auto websites showed 72% of car buyers were open minded about make and model when they begin their research. We therefore wanted to make all of our brands available to them based on this consumer intelligence, and introduce the Swansway feel of a caring, honest and proud family experience at the same time. We firmly believe we’ve given buyers what they wanted.

“Great developers are hard to come by and we knew we would never be able to keep up with the development speed of a dedicated agency.”

What key messages do you think the new website delivers for you? We hope of course it’s informative and easy to use. But it’s the way in which it informs and engages that we hope gives the Swansway feel. We’re approachable and always happy to help and we think the website gets that family friendly feeling across perfectly. What do you think the Swansway name means to your customers, and how is this expressed through the new site? Like many dealers, a number of our centres are named after the area they’re located in rather than bearing the Swansway name. So we have to recognise that some of our customers may not have known they were already part of the Swansway family. A bonus of the new website is that these customers will now be able to see who they’re actually dealing with and differentiate Swansway centres from others.

frustrated when things don’t go your own way, but hugely satisfied when you finally catch the Mew! It’s been exciting and stressful at times, but we’ve developed a hugely positive partnership and we certainly feel like we’ve caught our Dragonite!

Paul Hilton, Retail Sales Director GForces

What do you think the new website has delivered for Swansway? Conversion is at the core of everything we do at GForces, and that has quickly become apparent for Swansway. The website was launched on the 10th August and within the first week, one dealership had already reportedly sold two vehicles from Live Chat alone. Since then, the website has benefitted from hundreds of e-mail and live chat enquiries, as well as online part exchange valuations and already showing an increase in conversion rate. This shows that better lead generation and improved conversion is already being achieved thanks to the tools we’ve incorporated and the support we provide. How would you describe working with Swansway? Collaboratively working with Swansway over the 16 weeks of the project, not just with the team, but also enjoying an open exchange with the directors, really helped fuel the content and feel of the website. This enabled the project to run efficiently from start to finish, and we delivered on time and beyond expectations on both sides. We recognise the serious endorsement represented by Swansway ultimately choosing us over the extensive range of providers this industry has to offer automotive retailers. We are thrilled to have been chosen to deliver their new, landmark website with all the incorporated improvements, new functionality and the services and support we offer, and we’re excited to be working with them on a number of initiatives to drive increased leads and conversion.

What makes Swansway stand out from their competitors? Are there any elements of the website that help you do this? I think we’re known for great, friendly service and a positive, can-do attitude. We see the business as one big extended family and we try to treat our customers as guests by making their visit, either to one of our dealerships or our website, an enjoyable one.

What can Swansway expect from GForces now the site is up and running? Every client on a GForces NetDirector® V10 platform can expect dedicated customer support. Our most recent customer satisfaction survey, indicating how our customers rate their experience with our support team set a new record, not to mention standard, of 99.1%. They’ll also benefit from our class-leading marketing services, data-driven user experience reviews and a host of future, nextgeneration software releases. So much work has gone into what we’ve achieved so far with the launch of the website, but really, it’s just the beginning.

Were you surprised about what GForces were able to deliver? The fantastic level of support from start to finish and the dedication that included pulling resources onto the project at the drop of a hat to provide content and get the site live was very impressive.

To see the exciting results of the collaboration and some of the cutting edge lead generation tools incorporated, visit www.swanswaygarages.com

How would you describe working with GForces? To use a very current analogy, it’s been rather like playing Pokémon GO! You get excited at the thought of going up to the next level,

0844 846 4767 | www.gforces.co.uk CarDealerMag.co.uk | 63

FOCUS ON.

CarGurus

From a standing start to unique monthly users in CARGURUS

W: cargurus.co.uk/signup/issue103

ead generation is the lifeblood of any modern dealership – in the digital age, you can’t rely on good stock and footfall alone, you need an effective online presence too. With the internet age comes an internet company that is helping UK dealers optimise their digital marketing efforts, reach more customers and ultimately, it says, sell more cars. CarGurus was founded in the USA by Langley Steinert – also a co-founder of TripAdvisor, the global travel site. Nine years into operations, CarGurus is the most popular consumer car research and shopping platform in the US by daily traffic, and the third-party site of choice for more than 20,000 dealerships. The company is now gaining traction in the UK where it launched in November 2015. It has been a quick rise for the company. CarGurus’ Diego Sanson, VP of International Operations, recalls attending CDX15 at Silverstone in June 2015 while still researching the opportunity for CarGurus in the UK. ‘We first went there to meet the dealer community and learn about the market. At that point we were talking about launching a website and got a lot of positive reinforcement. We also had a lot of people saying, ‘‘Are you crazy, do you really want to do this?’’ ‘But listening to some of the challenges dealers were facing, we were very confident in our offering and what we’re able to provide.’ Following CDX15, CarGurus went ahead with a soft launch to market in September 2015, scaling up to a full launch as the year turned over to 2016. The company operates a ‘Freemium’ model, with dealers able to use the listing services free of charge if they wish, upgrading to paid-for subscription packages with greater functionality and consumer interaction. CarGurus can already account for 200,000 units in stock – with that number expected to grow to 300,000 by year-end – from over 4,000 dealers. From a traffic perspective, the company 64 | CarDealerMag.co.uk

T: 0808 164 1369

CarGurus is seeing its value proposition carry over from the success it has had in the United States

has gone from 0 to over 1m unique monthly users in less than a year. Sanson acknowledges there is more work to do, but says that traffic growth is evidence that ‘we are a relevant player to consumers and dealerships’. The company is sending leads to dealers through the free Basic subscription package, and in June began upgrading interested clients to the Enhanced package. ‘What we feel more proud of than anything is that in a short period of time we have proven we can drive engagement between consumers and dealers. With a Freemium model the dealer has the choice of moving to a paid subscription and they certainly wouldn’t do that if they didn’t see value or weren’t selling cars or weren’t seeing the engagement there. Dealers buying from us confirms the value of our offering.’ CarGurus’ free ‘Basic’ package option allows dealers to add as many listings as they wish, and up to 12 photographs per listing. In the Freemium model, dealers do not get full contact information for the consumer, instead an email inquiry comes from an anonymised email address. Enhanced and Featured package upgrades include full phone number and email address contacts for the lead, dealership branding, extra

image capability, and access to the CarGurus pricing tool, among other value enhancements. CarGurus’ focus is on delivering engagement and value to its dealers, but also providing consumers with a value proposition that is differentiated from the market. By providing them with the type of information and transparency they’re looking for – such as customer testimonials and the pricing tool that calculates how keenly priced the vehicle is compared to the market – CarGurus believes that it allows the consumer to make faster, more confident decisions on their next car purchase. ‘From that perspective we’re seeing our value proposition carry over from the success we’ve had in the United States,’ adds Sanson. ‘The digital consumer is reacting very similarly

a million a single year ! and that makes us feel very bullish about our current and future success in the marketplace.’ So how does CarGurus get the consumer to the stock in the first place? Sanson notes: ‘One of the things in our DNA is that we grew out of the digital age – we don't have a legacy print classified background. ‘We don’t really do a lot of television, radio and above-the-line marketing to attract customers, instead we focus on where the consumer is and that’s online. ‘We invest heavily in a sophisticated manner in search engine marketing where you’re seeing 80 per cent plus of people starting their search for a vehicle online. Being able to be there when consumers are starting their search for the car is very important. ‘We are also able to re-target visitors across the internet, reinforcing what they’re looking for and providing relevant searches and results. ‘This is not only when they visit CarGurus but after they leave, so that from a dealer’s perspective it’s a continuation of providing a consumer with their adverts and listings.’ The CarGurus team returned to CDX16 this year, but from the other side of the fence. Sanson comments: ‘We went from last year being attendees to this year being exhibitors with our own booth that was very well represented and full for the majority of the day. It was coming full circle for us – from talking about an idea to launching a business and 12 months later being a viable contender in the marketplace.’ by Andrew Evans (@snavEwerdnA)

‘‘

What we feel more proud of than anything is that in a short period of time we have proven we can drive engagement between consumers and dealers.

Diego Sanson

CarDealerMag.co.uk | 65

FOCUS ON.

UK Turntables

High-quality imagery with a minimum of fuss UK TURNTABLES

W: 0800 612 4930 T: ukturntables.com

K Turntables Ltd are offering an ideal accompaniment to online motor sales, with a virtual showroom that allows customers to view vehicle stock before they even leave their homes. It has never been easier to show off new and used cars in high definition, bringing a greater ease to the sale process for both the buyer and the seller. With this new and exciting development, customers can pick and choose which vehicles may suit their needs, via still and video images, in a must-have extension to any motor selling website. UK Turntables Ltd have long been providing driveway solutions to their customers, as well as installations in car showrooms, but this unique venture has quickly proven to be a successful, much-needed accessory for all online motor sellers. Who are UK Turntables Ltd? UK Turntables Ltd are a family-run designer, manufacturer and supplier of vehicle turntables, combined with in-house image-capture solutions for the modern retail motor industry, based in Crewe, Cheshire. They are the only company providing a one-stop, tailored image solution using turntable, IT and camera technology in the UK and Europe. Will this product suit my business? For any motor selling website, this is fast becoming a necessary feature. UK Turntables Ltd have already partnered with the largest wholesale vehicle auction company in the world to deliver a unique

66 | CarDealerMag.co.uk

automated image capture system designed specifically for the online auction industry, enabling confident online purchasing. This product creates consistent imagery that is not reliant on expert staff, meaning the availability of a photographer – and even adverse weather conditions – will not affect the smooth process on offer. On top of that, this product is not exclusive to the UK, with UK Turntables Ltd having provided solutions in Dubai, Germany, Ireland, Spain and Portugal, too. What does my business need to provide? The majority of the necessary components come as part of the package, meaning the motor dealer need only provide a flat concrete floor – with a minimum space of 6m x 6m, allowing the vehicle to rotate, and additional room between the camera and car – and a 13-amp socket. UK Turntables Ltd offer varied products, depending on the dealership’s space, experience, infrastructure and budget. In some instances, this would be a motorised turntable; in others, a fully-automated enclosed image booth with LED lighting, computercontrolled turntable and camera system generating 360-degree imagery via a cloud-based service. The automation can be upgraded through the range as volumes and budget allow.

How easy is this product to use? A full booth will be installed in just five days to get the product up and running. From that point, images – controlled by either a standard remote, programmed positioning or automated object capture – are easily accessed. External and internal 360-degree images are automatically uploaded to the dealer360 platform for immediate deployment online using the simple application programming interface (API). A word from the Managing Director… ‘Having worked in and around the retail motor industry for 25 years, and having wife and joint partner Nicky, who has 30 years’ IT experience, working beside me, we can say in confidence that we ‘‘get’’ the current need for delivering high-quality, low-cost consistent imagery to a dealer’s website in the shortest possible time and with the least amount of fuss.’ – Nigel Spratt, MD.

CarDealerMag.co.uk | 67

FOCUS ON.

iwoca

iwoca helps car dealers IWOCA

W: iwoca.co.uk T: 0800 205 5535

Background: Fast-growing small businesses face a huge funding gap – bank lending is down and SMEs are hardest hit. In Q1 2016, banks approved £6.1 bn of new SME loan and overdraft facilities – 18 per cent lower than in Q1 2015 (BBA figures). Cash is particularly critical for car dealers because growing a dealership means building up a large stock of new or used vehicles. This typically means you have a lot of upfront costs and these costs increase as you grow. Some dedicated financing options have been trying to fill this gap but their facilities usually come with hidden costs or limited flexibility. With the post-September plate change peak in car sales coming up, it’s more important than ever that car dealers get access to the finance they need to grow.

Introducing iwoca: That’s the background against which Christoph Rieche and James Dear launched iwoca – they were looking to solve the small business funding gap by offering SMEs a fast, efficient and fair finance solution: n iwoca is based in London, is completely independent of the banks and has developed a proprietary technology platform to eliminate the cost and complexity associated with traditional business finance. n Businesses can sign up to iwoca in minutes. iwoca automatically collects thousands of data points on every business that applies. This means it can approve a business for a credit line of up to £100,000 within hours. n A business can then draw down as much of the funding as they want with funds sent to their bank account within a couple of hours. n Most car dealers draw down funds whenever they come across a great deal (e.g. at an auction) and repay as soon as they sell it on. Paying back early saves them money since they only pay interest for the time they have the funds. There are absolutely no upfront fees or commitments. 68 | CarDealerMag.co.uk

n However, the funds are not just limited to buying vehicles. Some dealerships use iwoca to refurbish showrooms, improve repair facilities or just bridge day-to-day cash flow gaps.

A quick look at iwoca’s track record: iwoca started trading in 2012 and has already lent over £120 million to more than 6,000 businesses, making it one of Europe’s fastest growing business credit providers. iwoca’s clients include a large proportion of car dealers. For example, B R Car Sales Ltd, a specialist used car dealer, uses funding from iwoca to grow and expand the business and deal with a rapidly increasing volume of sales. Director, Bryan Riddick, explains: ‘Bank finance was readily available to us for almost a decade. However, when recently we were experiencing a very high demand from customers using our

service centre and needed funds to open another unit, our bank let us down.’ That’s why B R Car Sales turned to iwoca. ‘Initially, we were looking for funds to take advantage of great stock opportunity. iwoca staff didn’t need to help but they did. They are doing the great job – the speed, clarity and attention deserve praise.’ This meant iwoca was the natural choice when Riddick was looking for further financing. ‘As the business grew we decided to open a second service centre focussing on warranty claims and repairs. ‘This time we had no doubts on where to source financing from.’ It’s not just the speed and flexibility that makes businesses use iwoca. With a 9.5/10 feedback score on Trustpilot, based on more than 800 reviews, iwoca is one of the highest-rated finance companies in the UK.

grow faster

The iwoca team

Helping small businesses forget about finance iwoca is continuing to make it even easier for car dealerships and other businesses to access finance, investing in new technology whilst maintaining its commitment to personal service. In fact, David Cameron highlighted iwoca as one of the UKâ&#x20AC;&#x2122;s most successful FinTech leaders at a speech to the Innovate Finance Global Summit and iwoca was named as the Alternative Lender of the Year for Commercial Credit in both 2015 and 2016. The aim? iwoca wants it to be possible for small businesses to stop worrying about finance and focus on actually growing their companies.

More details Businesses can find out more and sign up for free in less than ten minutes at iwoca.co.uk.

Christoph Rieche

James Dear CarDealerMag.co.uk | 69

DASHBOARD. FEATURE.

Ask Lawgistics .com

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

Can I sack my apprentice? He’s a waste of time

Our apprentice mechanic is very reluctant to learn and hasn’t made anywhere near the sort of progress we would expect after 18 months with us. Having had many discussions with him about the need to buck his ideas up, I’ve reluctantly reached the conclusion that he is never going to make a mechanic and our efforts in training him are a waste of time which could be better spent training someone else. Can we dismiss him? Traditionally, apprenticeships are governed by ‘common law principles’, meaning the regulation has developed from years of judicial decisions. Whereas a standard employment contract is a contract of service by which an employee provides work in exchange for money, the primary purpose of a contract of apprenticeship is to provide training and professional development. In the normal course of events, a contract of apprenticeship, being fixed-term, will terminate on the end date and cannot be terminated earlier except in cases

of extreme misconduct where the apprentice’s behaviour makes him or her untrainable. Apprentices, therefore, have a type of special protection and wrongful termination can give rise to substantial damages for loss of earnings as well as cause damage to the apprentice’s future career prospects, described by one Lord Justice as ‘the loss of teaching, the loss of instruction and the loss of status’. In 2006, an apprentice dismissed for poor attendance was awarded £24,000 by an employment tribunal in a breachof-contract ruling. The employer did not appreciate the ‘special protection’ given to apprentices and had it not been for the employer’s unfair absenteeism policy, the apprentice would probably have completed his training and gone on to become a skilled engineer. The Apprenticeships (Form of Apprenticeship Agreement) Regulations 2012, which came into force on April 6, 2012, specify a prescribed form

of apprenticeship agreement. It is absolutely vital that your apprenticeship agreement is worded in accordance with the requirements of the Apprenticeship Schools Children and Learning Act (ASCLA) 2009 to be considered a contract of service (i.e., a contract of employment), and if so, an apprentice’s contract could be terminated on notice, subject to the normal rules of unfair dismissal and the break clause. It follows that if you do not have an ASCLA-compliant apprenticeship agreement, you will not be able to dismiss your apprentice without risking a potential claim at an employment tribunal. There are, as yet, no reported employment tribunal cases on apprenticeship agreements not complying with ASCLA, so it is important to proceed with extreme caution and seek legal advice if you wish to dismiss your apprentice. See the ACAS guide on employing younger workers for further information. Go online to bit.ly/apprentice-103

ADVICE

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.

Rights issue

WHY I JOINED CAR DEALER CLUB

‘Lawgistics are very friendly and helpful, you don’t need to fear ringing them . . .’

CRYSTAL Motor Company of Northampton recently experienced a rather thorny problem with a disgruntled customer over a Land Rover Freelander. Several months after buying the petrol-powered, 54-plate vehicle, the car suffered a head gasket failure. Crystal repaired the car, but after the costly repairs the customer wanted a replacement vehicle instead. Joyce Bradshaw, of Crystal Motor Company, told us: ‘She gave us a list that she wanted for us to get her a new car that was a lot more expensive than the car she already had. Her wishlist for what she wanted was ridiculous.’ The company did its best to accommodate the requirements, but soon found it was difficult to appease the customer. ‘We were going to help her by looking for another car. She wanted us to get one at £3,500 from another garage – of course we said no!’ added Bradshaw.

If a customer arrives looking to buy a vehicle at a discounted price, can I sell this on a trade-to-trade basis? No, if a genuine consumer arrives at your garage looking to purchase a vehicle and requests a discount by attempting to name the agreement on a trade-to-trade basis, you could be accused of trying to restrict the consumer’s statutory rights. This is because a legitimate trade-totrade sale does not entitle the buyer to the Consumer Rights Act 2015 legislation. You will, of course, come across genuine trade-to-trade sales, this is when another trader is purchasing the vehicle or a company is purchasing a vehicle (for business use). When this does occur, it is important that the invoice is made out to the company name, eg Smiths Removals. If you can show the purchase was sold to a company; the vehicle is used for business use; payment is made by a company; the V5 is in the name of a company and both parties understood that the agreement was a trade sale – this will all provide evidence of a genuine trade-to-trade agreement.

Not happy that Crystal was not moving to the timescale she wanted, the customer started a claim against the garage, including not only a new vehicle but compensation for a loss of wages in the interim – a sum totalling in the region of £5,000, double the original purchase cost of the Land Rover. Bradshaw said: ‘Lawgistics dealt with that for us and we ended up giving her around £300. They did all the emailing, got her into the right frame of mind and reduced our cost significantly. ‘They’re very good. If we have a problem, we ring them up and they deal with it straight away and help us out. They’re very friendly and helpful – there’s no fear of ringing them, they make you feel that you’re worth something.’ With social media being such a potentially damaging outlet, Bradshaw was also impressed that as part of the settlement the customer agreed not to complain about the garage on Facebook.

AND ALL FOR JUST £39.99

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 2. HIT SUBSCRIBE

Discount on software and free health check app from Dragon2000

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

Modest growth in August ahead of 66 plate change

Key to maintaining strong market is consumer confidence, says SMMT

he UK new car market achieved modest growth in August, as registrations rose by 3.3 per cent against the same month last year, according to figures released by the SMMT. A total of 81,640 new cars were registered in the month, with the yearto-date performance remaining positive, up by 2.8 per cent to 1.68 million units. The fleet sector drove the growth in demand, buoyed by attractive finance deals and discounts, rising 7.7 per cent to 43,267, while private registrations fell slightly by 0.2 per cent. Diesel demand also fell marginally by 0.2 per cent, with petrol registrations edging ahead 5.3 per cent and alternatively-fuelled vehicles (AFVs) seeing significant growth of 30.8 per cent. Almost 54,000 AFVs have been registered so far in 2016, compared with just over 44,000 last year. Mike Hawes, SMMT chief executive, said: ‘August is traditionally one of the quietest months as consumers look ahead to the September plate change, so growth, albeit small, is good news.

‘With showrooms full of exciting models featuring the very latest technology and a raft of affordable finance options, it still makes sense to consider buying a new car. The key to maintaining this strong market is consumer confidence for which we look to the government to deliver the conditions for economic growth.’ Chris Bosworth, director of strategy at Close Brothers Motor Finance, said: ‘The figures indicate that the automotive sector remains resilient in the months after the UK’s decision to leave the EU, with the small growth in registrations helping the sector recover from a flat performance in July. ‘The increase in overall registrations

has been helped by the growth in demand for alternatively-fuelled vehicles and growth in fleet sector markets, which saw significant year-onyear and monthly figures for August. ‘However, the total figure continues to disguise the performance of the private sales market where, for the fifth month in succession, we have seen a drop in customers buying new cars. This may be in part due to the timings of the calendar year – August is traditionally one of the quieter months in the new car market, with most drivers waiting until the September plate change to buy a new vehicle. ‘As such, it is still too early to gauge the impact that Brexit is truly having on the market.’ The top 10 sellers for August, from the top, were the Ford Fiesta (4,547 units registered, and pictured above left); Ford Focus (2,519); Vauxhall Corsa (2,393); Vauxhall Astra (1,931); Volkswagen Golf (1,855); Volkswagen Polo (1,765); Vauxhall Mokka (1,762); Kia Sportage (1,540); Ford Kuga (1,515); Nissan Qashqai (1,491).

High-flying Kia enjoying ‘remarkable’ popularity KIA enjoyed its best-ever August sales month with 3,849 new cars delivered to customers – a massive 81 per cent up on the same month in 2015. That took the Korean manufacturer to a year-to-date sales performance of 57,609 – again a best-ever figure by this point in the year and an increase of 14.7 per cent over the same period last year. Even more remarkable, Kia entered both the top 10 makes and 72 | CarDealerMag.co.uk

the top 10 models, with the all-new Sportage recording eighth place after 1,540 examples of the mid-size SUV were delivered. In a market up by 3.3 per cent, Kia’s overall sales saw the company join the top 10 in seventh place for the first time in its history. Paul Philpott, president and chief executive of Kia Motors (UK) Limited, said: ‘Whilst August is generally a quiet month, our dealer partners have been

recording remarkable levels of demand and interestingly, many customers have not wanted to wait for the new registration plate! ‘Ever since we launched our all-new Sportage there has been a waiting list and our customers are desperate to get their hands on the car – even if it is just a few weeks before the new registration month. Our dealers are telling us there is no let-up in demand.’

SMMT sales data Aug/year to date

Top

Most-improved manufacturers in August

Infiniti +617% Lotus +500% Bentley +155% MG

+130%

Dacia +97%

Bottom

Worst-performing manufacturers in August Mitsubishi -39% Volkswagen -25% Lexus -17% Fiat -15% Jaguar -13%

SUBARU -12%

HONDA +12%

Marque 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

August 2016

2016

135 148 15 6,195 69 4,752 0 0 2,593 845 504 1,719 11,703 1,826 2,440 280 722 488 3,849 1,574 234 90 70 1,269 4,651 99 1,608 367 3,503 3,164 299 2,485 1,816 2,687 352 219 69 1,384 2,193 8,579 5,694 776 43 132 81,640

% market share 0.17 0.18 0.02 7.59 0.08 5.82 0.00 0.00 3.18 1.04 0.62 2.11 14.33 2.24 2.99 0.34 0.88 0.60 4.71 1.93 0.29 0.11 0.09 1.55 5.70 0.12 1.97 0.45 4.29 3.88 0.37 3.04 2.22 3.29 0.43 0.27 0.08 1.70 2.69 10.51 6.97 0.95 0.05 0.16

August 2015

2015

85 128 14 5,850 27 4,848 1 3 2,863 428 389 2,031 11,980 1,629 2,208 39 836 278 2,123 1,086 283 15 46 1,450 3,969 43 1,660 602 3,159 3,304 280 1,734 1,348 2,716 344 123 79 1,273 2,313 8,919 7,611 831 32 80 79,060

% market share 0.11 0.16 0.02 7.40 0.03 6.13 0.00 0.00 3.62 0.54 0.49 2.57 15.15 2.06 2.79 0.05 1.06 0.35 2.69 1.37 0.36 0.02 0.06 1.83 5.02 0.05 2.10 0.76 4.00 4.18 0.35 2.19 1.71 3.44 0.44 0.16 0.10 1.61 2.93 11.28 9.63 1.05 0.04 0.10

% change 58.82 15.63 7.14 5.90 155.56 -1.98 0.00 0.00 -9.43 97.43 29.56 -15.36 -2.31 12.09 10.51 617.95 -13.64 75.54 81.30 44.94 -17.31 500.00 52.17 -12.48 17.18 130.23 -3.13 -39.04 10.89 -4.24 6.79 43.31 34.72 -1.07 2.33 78.05 -12.66 8.72 -5.19 -3.81 -25.19 -6.62 34.38 65.00 3.26

2016 2,320 3,286 527 107,298 1,218 106,061 3 0 44,685 15,676 11,151 38,549 205,142 38,161 56,610 2,244 19,958 9,270 57,609 49,015 8,424 231 913 30,342 104,904 2,300 38,597 12,097 92,029 64,856 7,647 50,837 29,604 50,745 6,968 2,854 2,045 24,213 62,030 161,259 129,298 27,034 522 2,267 1,680,799

Year-to-date (YTD) % market share 0.14 0.20 0.03 6.38 0.07 6.31 0.00 0.00 2.66 0.93 0.66 2.29 12.21 2.27 3.37 0.13 1.19 0.55 3.43 2.92 0.50 0.01 0.05 1.81 6.24 0.14 2.30 0.72 5.48 3.86 0.45 3.02 1.76 3.02 0.41 0.17 0.12 1.44 3.69 9.59 7.69 1.61 0.03 0.13

2015

1,323 3,046 579 104,863 875 94,596 8 134 53,842 15,931 1,965 39,400 213,245 32,829 55,119 785 13,106 6,323 50,228 40,072 8,040 241 929 28,006 88,899 1,950 36,087 15,414 96,494 67,718 7,649 44,073 31,865 48,760 4,525 1,875 1,913 21,005 62,509 168,252 143,178 25,003 469 1,246 1,634,369

% market share 0.08 0.19 0.04 6.42 0.05 5.79 0.00 0.01 3.29 0.97 0.12 2.41 13.05 2.01 3.37 0.05 0.80 0.39 3.07 2.45 0.49 0.01 0.06 1.71 5.44 0.12 2.21 0.94 5.90 4.14 0.47 2.70 1.95 2.98 0.28 0.11 0.12 1.29 3.82 10.29 8.76 1.53 0.03 0.08

% change 75.36 7.88 -8.98 2.32 39.20 12.12 -62.50 0.00 -17.01 -1.60 467.48 -2.16 -3.80 16.24 2.71 185.86 52.28 46.61 14.69 22.32 4.78 -4.15 -1.72 8.34 18.00 17.95 6.96 -21.52 -4.63 -4.23 -0.03 15.35 -7.10 4.07 53.99 52.21 6.90 15.27 -0.77 -4.16 -9.69 8.12 11.30 81.94 2.84

Figures supplied by SMMT

CarDealerMag.co.uk | 73

74 | CarDealerMag.co.uk

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

Holidays, what holidays? August was a busy month for both cars and LCVs There’s been a good level of demand recently, says Simon Henstock, BCA’s chief operating officer for the UK, and the weeks ahead will see even more activity

sed car values improved again in August, according to the information in BCA’s latest Pulse report. The headline average value of a used car rose by just £1 compared with July to establish a record monthly average value of £8,342. Fleet/lease values increased by 2.3 per cent to the third highest point on record, while average dealer part-exchange values were the fourth highest recorded. Yearon-year, the headline figure was up by £503, equivalent to a 6.4 per cent increase in average values. It all goes to show that August was a strong month in the used wholesale markets. Prices have improved as inventory has dropped and conversion rates have risen with first-time sales – which are critical to churn – also improving. Reports from managers across BCA’s 23-strong network also bear this out, with both car and LCV sales performing strongly, despite August being the main holiday month. Our Pulse report for July saw a steady marketplace with the average values at record levels and August has improved on that performance. It has been a strong month with good levels of demand and with the September plate change upon us, we can expect the markets to be very busy indeed over the coming weeks. BCA works closely with both vendors and buyers to ensure vehicles are sensibly priced to meet market expectations. Appraising and valuing vehicles accurately is critical to success and we consistently put that message into the marketplace. Current performance suggests that

vendors are in tune with market expectations as prices have firmed and churn has improved. In fact, the conversion rate at BCA nationally rose to 85 per cent in the last week of August, suggesting there was plenty of confidence amongst buyers. Looking at the average price performance by model shape, values for volume stock were largely static during the month, with some minor price pressure in the low-volume roadster sector. Values in the fleet and lease sector climbed by £225 (2.3 per cent) in August compared to July, to reach the third highest point on record. Retained value against original

Headline average value of a used car

£8,342

MRP (Manufacturer’s Retail Price) improved to 41.7 per cent in August from 41.1 per cent in July. Year-on-year values were up by £242 (2.5 per cent), with age falling by one month and mileage down by 2,000. Average values for dealer part-exchange cars were flat for the second month running, down by just £6 over the month at £4,489 – but still the third highest average value on record for dealer PX stock. Year-on-year values were ahead by £246 (5.8 per cent), with both age and mileage static. Average nearly-new values fell by £318 (1.5 per cent) to £21,021 in August, although model mix is key in this low-volume sector. Values were slightly down year on year.

Average value for dealer part-exes

£4,489

CarDealerMag.co.uk | 75

AUCTIONS.

Two well-known industry figures join Cox Automotive bit.ly/cox-103

New apprentice taken Henstock on as Aston Barclay A service that’s simple, builds for the future effective and efficient

AUCTION STATIONS

‘It’s vital that we source and nurture the best talent’

ston Barclay has recruited its latest apprentice as part of its drive to bring new talent into the remarketing world and develop the industry leaders of tomorrow. Liam Draper, pictured, recently joined the accounts and finance team at Aston Barclay’s main Chelmsford site, working in a wider group role where he’ll learn a wide variety of skills. He will be working towards his Association of Accounting Technicians (AAT) qualification, whilst gaining vital insight into the remarketing sector. Alongside the continual and successful investment in auction centres, IT infrastructure and transport & logistics, the vehicle remarketing group recognises the importance of introducing new talent into the remarketing sector. As a result, Aston Barclay has now emerged as one of the leading apprenticeship and training providers in the auction industry. Commercial director David Scarborough said: ‘It is vital for the future of our

company and industry that we source and nurture the best talent. ‘The remarketing industry is not one which is widely seen as a career option and is often overlooked by many young people, yet through our apprenticeship and training programmes, we have showcased just what an exciting and varied industry it is. There is real potential to succeed in a range of roles.’

Advisers on hand from BCA Partner Finance BCA Partner Finance has announced plans to support its growing customer base with the roll-out of a national network of customer service advisers. Each BCA auction centre will have an adviser to help customers access the benefits of Partner Finance. The move will create 13 new jobs. The company has seen a rapid growth of the service that offers dealers 120 days finance on vehicles purchased at

BCA auction centres. It now has over 1,100 customers across the UK, ranging from small independents to large, multi-marque, franchised operators. BCA Partner Finance was the first finance product specifically designed for the UK remarketing sector. It helps dealers and groups buy from the UK’s largest pool of used vehicles – with 100 per cent of the purchase funded plus any fees.

ith used car demand continuing to generate record values, according to BCA’s Pulse Report, it’s perhaps no surprise we are seeing the continued expansion of our innovative BCA Partner Finance Service. There has been a rapid growth of the service that offers dealers 120 days’ finance on vehicles purchased at BCA auction centres. BCA Partner Finance now has more than 1,100 customers across the UK, ranging from small independents to large, multi-marque, franchised operators. The service has one simple aim – to help car and van dealers secure incremental funding to underpin their used vehicle acquisitions at auction. At busy times for the motor trade, BCA Partner Finance means there is one less thing for dealers to worry about, as they are secure in the knowledge they have the funding they need. What this means in reality is that BCA Partner Finance allows dealers to get on with the profitable business of sourcing and retailing used vehicles. Dealers can use BCA Partner Finance to fund any auction purchase. Talking to independent dealer customers about the service, the key benefit that comes up time and again is the opportunity to compete on a level playing field with the bigger national groups when it comes to buying power. Dealers can focus on acquiring the right vehicles for their retail customers, confident that they have the buying power that can generate profit opportunities for their business. Importantly BCA Partner Finance is not linked to the retail sale, allowing smaller independent dealers to free up funds to grow their businesses how they see fit. Feedback has been that BCA Partner Finance is both good value and easy to use. Our customers value the simplicity of the service, which is helping them to purchase additional stock from the huge choice available at BCA and freeing up funding to grow their business – simple, effective and efficient.

Who is Simon Henstock? ‚

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

ROCKINGHAM AUTOMOTIVE DEFLEET & REMARKETING CENTRE VEHICLE REMARKETING SERVICES 1. Logistics Our dedicated collection team are experienced in all forms of vehicle movement from doorstep inspection/ collection featuring detailed damage costings supported by digital images signed by the customer to the more standard movement of single or multi vehicle transporter load. With six strategically positioned UK wide drop off locations we have the ability to cover the England, Scotland, Wales and Ireland regions for all aspects of recovery. 2. Inspection On arrival all vehicles are inspected to the NAMA grading standard, the standard you can trust. This nationally defined scheme will enable the best possible prices to be achieved. Vehicles of specific grades will attract certain buyer groups therefore ensuring that vendors obtain the best audience both physically and online. The transparent grading of used vehicles within the industry has encouraged growth in the online buying practices of major motor retailers at all specialist corporate fleet sale events. 3. Presentation Every vehicle is presented to a retail clean standard to ensure the best possible financial return is achieved. This small investment is an essential ingredient to the overall result for the corporate vendor. The vehicle presentation takes place immediately prior to digital imagery of vehicles which are then uploaded to website and smartphone applications for marketing purposes.

76 | CarDealerMag.co.uk

3 UK wide inspection and collection service at competitive pricing 3 Strategically positioned central hub to provide nationwide single centre sale events 3 Every vehicle presented to a retail clean standard 3 Expert refurbishment programme tailored to your needs 3 300 acres of secure hard standing vehicle storage

3 Established auction programme to suit both corporate and dealer group part exchange 3 State of the art Online Centre to offer vehicles 24/7 direct to marketplace 3 Asset Recovery System – digital platform to track, recover and remarket the asset 3 Fleet Management Department – Experienced, knowledgeable and dependable

For further information please contact Michael Tomalin 07808 791210 or email mt@cityauctiongroup.com

Rockingham Speedway, Mitchell Road, Corby NN17 5AF

www.cityauctiongroup.com

SuperUnleaded.com THE GRID

Top stories, accelerated by you...

SuperUnleaded is your new motoring service station where you choose what’s important. Like a post? #AccelerateIt up The Grid for others following in your slipstream and help set the starting line-up of timewasting content for everyone else.

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Cop Chases Red Light Runner, Slipper-Wearing Porsche Gets T-Boned Immediately Driver’s Reckless Overtake If you think you’re having a bad day at work, spare a thought for this police officer in Minnesota. He’s rather keen to give chase and it doesn’t end well in this video. bit.ly/2c5AqVH

For the slipper-wearing woman driving a Porsche Cayenne, her choice of footwear is no excuse for the appalling driving style in this video. Watch and wince. bit.ly/2bxXBwu

Audi R8 TV Ad Banned… For Being Too Exciting!

Russians Invent All-Terrain Two-Wheel-Drive Bike

Supercars are exciting. There’s no getting away from it. But one person complained to the ASA about an Audi R8 advert that was said to be TOO thrilling. What were they thinking? bit.ly/2c8oy5L

If you’ve ever wanted an all-terrain, two-wheeldrive, floating, lightweight, folding motorbike, then we’ve got some good news for you. If you didn’t, what’s wrong with you? bit.ly/2bTdHxr

Moto3 Rider Displays CatLike Reflexes To Bounce Back

Chap Has A Really Bad Day, Punches Through Windscreen

We’ve all had an edge-of-our-seat, buttockclenching near-miss, haven’t we? But none is probably greater than this save Moto3 rider Hiroki Ono had at the German GP. bit.ly/2c8parL

This footage, shot in Leicester, shows a man sat on the bonnet of a (pretty nastily) modified Mercedes CLK convertible punching its windscreen. He’s not a happy bunny, obvs. bit.ly/2bCFAY9

Touring Car Crashes Heavily, Wipes Out Cameraman

It’s The Daftest Overtake In The Most Garish Car Ever!

Take a look at this scary video from the British Touring Car Championship round held at Snetterton. At the start of race three it all goes a bit Pete Tong... bit.ly/2bGeT6n

On a backroad in Russia an innocent, dashcamtoting motorist is going about his business. Suddenly, his world becomes a blur of noise, colour and a poorly-controlled Audi R8. bit.ly/2bPnyFo CarDealerMag.co.uk | 77

Dealer Stocking. Simplified.

Stock what you know sells well Take advantage of stock availability this plate change with a Stocking Plan tailored to your dealership

Make More Profit with 100% funding* on: • Trade vehicles • Part exchanges • Auction purchases Improve your cash flow 24/7 access with StockMaster No retail lock in

APPLY NOW 0843 50 60 606† nextgearcapital.co.uk *100% of hammer price (auction) or lower of CAP clean or invoice price (trade vehicles) +VAT funded on LCVs and qualifying vehicles up to the value of £45,000. †We may monitor and record calls, email and SMS messages between you and us for quality control, training purposes to improve our services and to keep a record of what was agreed. Calls will cost 7 pence per minute plus your phone company’s Access Charge. NextGear Capital UK Limited, NextGear House, Kingsfield Court, Chester Business Park, Chester, CH4 9RE. Registered in England and Wales number 08696123. Stocking Plan is subject to status, terms and conditions.

78 | CarDealerMag.co.uk

MARKET INSIGHT.

..in association with ASE-global.com

A busy month for Lookers as we weather the storm New retail car demand is slowing, but opportunities exist elsewhere, says Adam Cottam

ugust was a month of gradual recovery by UK stocks in motor retail. Despite strong interim results being released by three groups, investors are still seemingly hesitant to invest in the sector, perhaps because of the slowing new car demand. The UK economy appeared to be in good shape as the majority of post-Brexit fears were yet to be realised. Predictions that we would be plunged straight into a damaging recession were clearly wide of the mark. There was also little evidence the motor trade was being affected negatively by the political uncertainty. Lookers released record results and made two major purchases in the month in Drayton and Knights North West. The group also sold its three parts businesses. Share price performance Share prices continued their slow recovery in August with some significant positive movements. The FTSE 100 has further improved in August, and the wider economy is showing signs it is weathering the storm following the EU referendum. Nationwide revealed that house prices had unexpectedly risen in August, and the lack of negative commentary on the impact of Brexit from a variety of UK business, including those in the motor retail sector, suggested a healthy economic environment. At the time of writing, extremely robust manufacturing data had just been released showing that the weakened pound had helped those selling into overseas markets. Having said all of that, UK business confidence is at a five-year low according to a recent survey by Lloyds, and the government has cut growth forecasts for 2016 and the coming years, so the good news should be taken with a fraction of caution. It has been noted by several high-profile UK motor dealers in the press that any impact to their business is yet to be felt following Brexit, which bodes well for the industry as a whole. Footfall still appears to be strong, and there is little evidence manufacturers are going to change pricing in the wake of the vote. Although new retail car demand is slowing, future opportunities still exist in used and aftersales. It’s just a case of which operators make the best of the trading environment.

Blue Bell BMW of Crewe is now under Lookers ownership after a very busy month for the listed motor retailer Share price movement from January 1 to Aug 31, 2016

Share price movement from January 1 to July 29, 2016

Pendragon

72.5%

67.7%

Vertu

63.2%

62.9%

Lookers

73.8%

57.6%

Inchcape

89.4%

85.9%

Cambria

83.8%

86.9%

Caffyns

102.8%

96.3%

Marshall

88.6%

83.5%

Financial performance Three groups released their interim half-year results to June during August. H1 results were released for Pendragon on August 2, showing earnings had increased by 9.7 per cent. Like-for-like revenues were up seven per cent. The business reported it had not seen any change in consumer activity following the EU referendum result, but acknowledged there was some uncertainty generally in the trading environment. The balance sheet remains strong, and so does the business. Marshall’s interim results were strong, reporting a 5.3 per cent increase in PBT. On a like-for-like basis, new, used and aftersales revenues were up 3.2 per cent, 0.9 per cent and six per cent respectively highlighting that the underlying business is growing in all areas. SG Smith has now been fully integrated and the

company is seeing the enhancement in earnings as a result. The Ridgeway businesses were also on plan, although there is some time still to go until the full benefit is felt, given Marshall’s ownership is still in its infancy. The accompanying notes to the results stated that it was too early to assess any impact on the UK motor vehicle market as a result of the UK’s decision to leave the EU, but that the business was well placed for the future. Record results were posted by Lookers to the end of June 2016, as PBT was up 17 per cent and revenue up 33 per cent. All areas of the business saw like-for-like increases. Cash flow was a very strong area meaning net debt was down over 50 per cent, allowing the company to pay greater dividends to investors. Transactional activity All the major transactional activity this month involved Lookers. In the biggest deal in August, the group bought Mercedes and Smart operator Drayton for £55.4m. This added seven sites to their portfolio and continued their strategic expansion with premium brands. They also sold their three parts businesses to Alliance Automotive for £120m, with the Drayton purchase conditional on this deal completing in October. In the third major transaction, Lookers’ premium growth continued, they gained their first BMW/Mini outlets with the purchase of Knights North West Limited for £27.2m. Six dealerships were added across three locations. All in all a very busy month for Lookers, and early indications were that their share price had reacted positively.

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

80 | CarDealerMag.co.uk

RECRUITMENT.

Twenty jobs created as Glyn Hopkin grows with Renault

TOOTLE

Online platform has a new CEO

THE online platform helping dealers source stock directly from private sellers, Tootle, has appointed Gordon Tulloch as its new CEO. Before the opening of the all-new Tulloch has already started in dealership, Glyn Hopkin represented the role following the decision Renault and Dacia in Colchester by former CEO and co-founder from a temporary facility, which it Al Taylor to concentrate on opened earlier in the year. The group new early-stage start-ups. Tulloch has a wealth quickly followed this with its Renault of entrepreneurial and and Dacia dealership in St Albans, automotive industry which is currently operating from an experience, having held interim facility in Lyon Way while positions such as chief Glyn Hopkin considers its options for commercial officer at another state-of-the-art dealership. Carland, and chief relations Fraser Cohen, managing director of officer at Direct Car Finance. Glyn Hopkin, said: ‘Our Chelmsford He has also worked at the dealership has far exceeded our likes of Jaguar Cars, Porsche expectations. We always look to GB, BCA and Manheim. Tulloch will help lead Tootle’s represent our brands at a multitude of next funding round, after locations, and opening Colchester and its £1.75m seed round last St Albans is a natural progression for year. He said: ‘Our expansion us, especially as these are areas where will continue with further Glyn Hopkin already has a significant appointments to develop our presence and our expertise is well proposition.’ MMG careers recognised andadvert_Layout established.’ 1 26/07/2012 15:29 Page 1

Opening of two extra dealerships strengthens brand’s expanding network

lyn Hopkin has increased its investment in the Groupe Renault franchise with the completion of a state-of-theart dealership in Colchester and the opening of a further site in St Albans. The development comes just months after it joined the Renault franchise with the establishment of its inaugural Renault and Dacia dealership in Chelmsford. The opening of two extra dealerships by one of the southeast’s biggest and most successful automotive retail groups adds even more strength to the rapidly expanding Renault dealer network. Glyn Hopkin has ploughed £1.2million into its new Colchester dealership in Wimpole Road, completely remodelling the nearone-acre site over six months. The

extensive work has resulted in a spacious 12-car showroom featuring the latest Renault Store showroom design, a standalone seven-bay workshop with dedicated MOT test lane, and an exterior that boasts electric vehicle charging points and enough room for 50 Approved Used Renault and Dacia vehicles. More than 20 jobs spanning all areas of the business have been created through the opening of Glyn Hopkin Renault and Dacia Colchester.

Only need apply! Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size. At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.

Tuesday, May 23, 2017 The Wing, Silverstone

STAND BOOKINGS BEING TAKEN NOW!

To register your interest please call 023 9252 2434 or email events@blackballmedia.co.uk

marshallweb.co.uk

CDX17 will be bigger than ever, with a larger expo, plus more workshops and breakout sessions

With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date. We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to

www.marshallcareers.co.uk

to find out more about the Group and see our current vacancies.

CarDealerMag.co.uk | 81

DATA FILE.

James Litton

TRADER TALES

Why we should scrap invitation-only events

f you walk into any franchised showroom at this time of year, there is a strong likelihood that you will be confronted with a life-sized cardboard cut-out of the Spice Girls or Luke Skywalker. You will not have been able to see them from the outside, as there will have been black curtains hanging from the windows, adding an air of mystery to the place. Most of you will be familiar with the invitation-only event. There are many variations on the theme in the marketplace, all of which attempt to harness the excitement and focus that a timed promotion can provide. But why are they ‘successful’ and how do you measure success? Every company who operates in this space will point to the number of outbound calls made, appointments generated and deals done as a result of the campaign. These figures cannot be disputed; the results clearly speak for themselves. As a buyer, invitation-only events appeal to a human inclination that is deep-seated in our DNA. For example, we love to think we have paid less for something than our next-door neighbour. We all long to be the person on Antiques Roadshow who bought something at a car boot sale for 50p which is now worth £1m. Greed. As long as we keep dangling the bait, the little fishes will keep biting. Or will they? Invitation-only events are becoming as common as the DFS or Currys sale. They are perpetual and offer little creativity. They are successful because we communicate with our customers with a sense of urgency. We are engaged when they walk through the door as we are fully resourced. Most importantly, we have our eye on the prize. A deal. Dealers are never going to let a customer walk out during an event weekend – there is too much invested – even if they have to write a stronger deal than normal. Better to have loved and lost than never to have loved at all. But when it comes to the thinking behind invitation-only events, I am afraid I become a bit of a party-pooper. I simply don’t think the rationale behind them is worth preserving. In fact, I would go further and say that we should never allow an opportunity for this type of campaign to work. Why write a deal on one weekend which we would not write on any other day? Why are sales teams not focused and energised to drive appointments every weekend? It may just be the Swedish influence of working with Volvo, but I would rather be like Ikea than DFS.

‘We love to think we have paid less than our neighbour.’

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

Suppliers’

If you’re looking for a motor trade supplier you can find

App Development

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Keytracker Ltd

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W: auctionbuyers4u.co.uk T: 07836 777268 E: info@auctionbuyers4u.co.uk Info: We have more than 30 years’ experience, providing a first-class service whether you’re a small concern or a large retail operator. We deal with motor trade only.

W: bca.co.uk T: 0344 875 3480 E: customerservices@bca.com Info: BCA’s remarketing programmes deliver volume, choice and availability for buyers, and speed, efficiency and marketleading returns for sellers.

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W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an award-winning UK finance company providing simple financial solutions. Get in touch and let us help increase your profits.

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To have your details included here call (023) 9252 2434 and ask for Suppliers’ Guide listings

guide

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YOUR REAL STORIES

the details of selected companies here Paint Protection

Vehicle Logistics & Delivery

Warranty

GardX

Movex Logistics

Centurion Warranties

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Gtechniq

National Car Cleaning

Warrantywise

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Supagard

CarGurus

WMS

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Website Design & Digital Marketing

Euro Car Parts

Friday-Ad

GForces

Stock

Video

Website Design & Digital Marketing

Maguires Garage

CitNOW

Goldsand Digital

W: gtechniq.com T: 01327 811015 E: platinum@gtechniq.com Info: In 2004, scientists at Gtechniq created a superior line of products aimed at perfecting all car surfaces, and these products have been continually improved.

W: supagard.com T: 0141 633 5933 E: info@supagard.co.uk Info: The UK’s number one since 1988 and the preferred choice of the AM Top 100 and major vehicle manufacturers.

W: eurocarparts.com T: 020 3474 0500 Info: The UK’s number one distributor of car parts for all makes of cars and light commercial vehicles. Door-to-door delivery service six days a week.

W: maguiresgarage.co.uk T: 028 9061 3141/07718 780343 E: info@maguiresgarage.co.uk Info: New car and van imports in stock and available to order. Contact Stevie or Jim. First-class customer service and very competitive pricing.

W: nationalcarclean.co.uk T: 01268 565050 E: info@nationalcarclean.co.uk Info: Over the past 30 years we have grown from a family business to a national enterprise, providing a complete valeting service.

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.

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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.

Revenge on the angry giant really was sweet

ccasionally, you encounter a customer who somehow manages to get under your skin. I used to work in a dealership which seemed to attract these types of people. One morning, before anyone had particularly woken up, I saw what appeared to be a raging bull entering the forecourt. I only hoped that he wasn’t angry about something I’d done. He told me that, shortly after driving away in his new car, it had jettisoned a wing mirror. He then added that if I didn’t get it sorted, that I’d be hearing from his lawyers. Not all that keen to get the law involved, I quickly told the chap that we’d sort the problem, and to come back later that afternoon. In the garage, it was easy to see what had happened. A large scrape on the car’s pillar showed that, rather than having just fallen off, the man had hit something instead. I didn’t fancy facing the wrath of the angry giant, so I got the technicians to attach a new wing mirror, despite the confusion over the damage. Fast forward a few hours, and the raging bull came back in again while I was absentmindedly making a coffee. He then proceeded to tell me that we’d caused the damage to the car, and that he wasn’t happy with the service. After mentioning something about my kneecaps, I told him that the damage was already there when he dropped the car off – and we had security camera footage to prove it. Still not happy, he pushed past me and stormed back inside to speak to someone else. It might have been the stress of the situation, or the angriness of the man involved, but I then did something that I’ll never be proud of. Taking a few unopened packets of sugar that I’d been using to make my coffee, I ripped them open and leant into the car. I quickly poured sugar in all of the car’s air vents. I ran back inside the dealership, chucking the empty sugar packets in the bin as I sprinted along. The raging bull had now calmed down, but still shot me a dirty look as he walked back to his car. Looking on from the inside of the dealership, I saw him start his car and disappear into a white sugary cloud. Needless to say, he didn’t get any happier.

‘I told him the damage was already there when he dropped the car off.’

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

Are soft keys the future? Digital has its advantages but it also poses threats for dealerships, says Paul Smith

ike just about everything else automotive, car keys are getting smarter and they’re getting ‘softer’. Computer code is replacing the physical indentations and notches that were once de rigueur for door locks and engine ignitions. Transponder fobs using short-range wireless links have superseded the need for a physical connection to unlock and start most new autos. The various forms of smart keys to date haven’t proved a significant sales driver, but the next technology leap to completely digital keys could have a much bigger impact on buyers’ decisionmaking. Some automotive manufacturers are abandoning the traditional concept of physical keys and moving primary and other control functions into new mobile-ready apps. For instance, Jaguar Land Rover is porting the latest versions of its remote functions app on to smart wearables including Android Wear and the Apple Watch. The new app’s connected features include the ability for drivers to remotely start the engine, activate climate control settings, check the fuel level, confirm location (if in a large car park, for example) and unlock doors to let friends and family into the car. Volvo’s ‘digital key’ app already places principal functionality on to a device most drivers will already own: an Android or iOS smartphone. Using Bluetooth, the Volvo app will let a driver open the door and start the car without necessarily touching the phone. The digital key also means that, in theory, key codes can be exchanged between phones so that cars can be more easily shared. To most car buyers today, these developments might seem more gizmo than must-have. But thinking ahead, dealerships know that OEMs such as Volvo don’t invest megabucks in R&D

without expecting a reasonably quick return on their investment. Volvo also knows that making car-key functionality available via smartphone apps is about ironing out a range of car-key-related issues simultaneously and offering a more rapid, costeffective method of upgrading security around car access in the future. Replacing lost car keys, for instance, is now an increasing bugbear for dealerships as well as for owners hunting for keys around their home. The escalating cost and aggravation involved in replacing conventional car keys has become, as former PM John Major used to say, ‘not inconsiderable’. Insurer Keycare calculated that since 2013, the cost of replacing car keys has risen, on average, by nearly 30 per cent. This means that the replacement of keys for prestige vehicles nowadays routinely exceeds £250 – and can cost as much as £700! Prestige-end dealerships have nearly all added key-replacement insurance as part of the F&I shopping list they offer buyers of new cars. But would a move from physical to digital keys kill that relatively new income stream off? A reduction in the number of physical keys being lost might also bring about a reduction in additional revenue some dealerships make when supplying replacement keys to customers. Even if car buyers aren’t smitten

by this new phone-based key and just want something to do the basic tasks of opening and starting a vehicle, there is the potential to have your mobile-based key as a back-up just in case. Less positively for the new soft keys, if a mobile phone is stolen or hacked by cyber-criminals, they are likely to target access to car control apps because they are the juiciest prospects for ransomware attacks. Another issue for dealerships of a transition towards digital keys is that it offers car manufacturers a new way to establish direct relationships with the owners of their products. In a worst-case scenario, digital keys might be downloaded directly on to car buyers’ handsets from an OEM’s dedicated web portal. So, Volvo’s initiative could be the first stage in the eventual demise of the hallowed ritual of the physical ‘key handover’ by dealer staff. How long will it take us to get used to knowing we have our car (back) in our control when we hear the familiar ping on our smartphone as our key software download completes? If autonomous cars are likely to be on our roads in volume in less than 10 years it seems highly unlikely that smart/ mobile-based access to cars will not be an option for most new vehicle owners within two to three years. Are you ready to take advantage of this eventuality by gearing up to securely host, serve and maintain digital keys?

Who is Paul Smith?

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

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

Email sales@etagsolutions.com or call 0845 225 2910

84 | CarDealerMag.co.uk

MONEY TALKS

..in association with Paragon Car Finance

Keep buyers informed PCPs might not always be able to generate a new deposit for your customers

ccording to the FLA, point-of-sale finance was responsible for funding 84 per cent of all private new cars in the 12 months to June 2016. Overall, new car finance grew 17 per cent by value in the first six months of 2016 to a phenomenal £17.5bn and the market shows no signs of slowing down. PCP finance plans have been a key factor driving the popularity of point-of-sale vehicle finance but, as used car supply increases and car values come under pressure, can PCPs continue their rise? What’s so good about PCPs? PCPs are now the most popular form of new car finance in the UK. They’re made up of three components: a deposit, fixed monthly repayments and a final lump sum known as the ‘guaranteed future value’. Lenders attempt to match the ‘guaranteed

future value’ to a forecast market value of the car at the end of the contract term. As a result, customers only have to fund the deposit and the monthly payments to enjoy the benefits of driving a new car. What’s more, if at the end of the contract the customer doesn’t want to keep the car or pay the lump sum, they can simply return the vehicle to their dealer. So far, for most PCP buyers, the market value of their car has been greater than the ‘guaranteed future value’, covering the lump sum and providing them with a deposit to switch into another new vehicle either during or at the end of their contract term. Why does used car supply matter? In the early part of the decade, after the recession, used car supply was very limited so prices for available stock held up well. However, as new car sales have increased and gradually

worked their way back into the market for resale, used car stocks have grown substantially. In this new environment, used car prices will come under pressure and it’s reasonable to assume that not all PCP vehicles will exceed their ‘guaranteed future value’ going forward. What could change? If used car prices were to fall further than expected, buyers will find that they can’t generate a deposit for a new car by trading in their PCP-funded car. While they will still be able to give their car back without losing any money and therefore limiting any downside, it could still be disappointing for buyers. Dealers should prepare buyers by keeping them up-to-date with current deals, letting them know about zero-deposit offers and, importantly, by talking about the potential need to have a new deposit at the ready.

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

Always at home…

wherever we roam Paragon Car Finance is proud to extend its lending package to motorhomes

What we can offer Hire Purchase Maximum loan term = 10 years No deposit required Maximum LTV 115% Maximum age of vehicle at end of term = 15 years Maximum loan £100,000

0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/motorhomes 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. BPCF13143 (08/2016)

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CarDealerMag.co.uk | 85 18/08/2016 09:56

HOT PROPERTY

..in association with Rapleys LLP

Are you a record breaker? In sport, it’s good news, but not so great in the world of property, says Geoff Sayer

his month’s headline doesn’t refer to a member of Team GB smashing a world record in Rio, although it was estimated that our fantastic 67-medal performance came at a cost of around £4.1m a pop. In actual fact, I’m talking about the importance of keeping records intact. That might lack the excitement of elite international sport, but I’d hazard that the cost of poorly-kept records in the property industry would put the c£275m funding budget for Team GB easily in the shade. Some suggest that the value of a used car may reduce by five to 10 per cent if a full service history can’t be provided. If record-keeping is desirable with used cars, it’s absolutely essential for users of property, particularly occupiers, and here are three critical areas to think about: Selling: If you own your freehold and want to sell, your purchaser will want to see the planning consent, the building regulation

Who is Geoff Sayer?

certificate and the warranties for the extension you did to the showroom eight years ago. If the records have gone AWOL, you’re likely to face a price reduction or even a lost sale. For tenants under leases there’s even more at stake: Tenant break clauses: These are a lifeline for many occupiers as they give flexibility and hedge against tough trading conditions. However, the wording of break clauses came under massive scrutiny in the last recession and a flurry of cases resulted. The problems can arise from conditions in the lease around the break clause requiring strict compliance. Knowing exactly what you have and haven’t done, what you have and haven’t paid and when, can be the difference between enjoying the flexibility of breaking the lease or facing an unexpected continuing rent and occupier liability for five, 10 or more years. Tenant improvements and alterations: The last thing you will want to do, having invested tens,

or even hundreds of thousands of pounds in your leasehold property, is to end up paying a higher rent because of it, effectively paying twice over. Modern leases generally allow for tenants’ improvements to be disregarded at rent reviews – however, the burden of proof lies with the tenant. Also, in some cases, compensation can be recovered at the end of a lease for improvements if a specific procedure is adopted – but, again, the burden of proof is on the tenant. And it’s not only important to know what you’ve done but also to make sure you’ve done it right and complied with the lease – so beware of the verbal agreement of the friendly landlord if your lease says you actually need something in writing. These areas should be discussed with your property or legal advisers. It’s not a sexy subject but the implications go straight to your bottom line so perhaps it’s worth hearing again... and again!

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

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86 | CarDealerMag.co.uk

THE FLEET.

LATEST FROM THE FLEET... Second report:

AudiQ7 Audi’s gigantic Q7 is taking up most of our car park for the next few months. James Baggott lets you know how it’s settling in.

udi’s giant Q7 SUV has joined our fleet and as the resident family man, I’ve become the lucky keeper of the keys. I’ve been promised three months to get to know the 3.0-litre TDI model, both the good and the bad, and I’ve already managed to pile on 800 miles in the name of testing. So what’s to love? Well, the seating configuration is a real bonus. The centre row slides back and forth independently and each reclines too, which makes them a comfortable place to spend time in, even on long journeys. It’s also useful when you need to call the rearmost pair into action as it gives those in the back a little more legroom. The way the seats rise and fall out of the boot floor at a touch of a button is super smart and does away with the Crystal Maze-style challenges other manufacturers set you when you want to use their folding sixth and seventh seats. I’ve called the rear seats into action a number of times – at a recent wedding, even all 6ft 4in of me managed to fold into one. I much prefer things in the driving seat, though. Audi knows the Q7 is a big car and has added a whole host of parking aids for you to slot it into even the tightest spaces. They use a host of cameras to give you a bird’s-eye view that is so good you can almost use them solely to park it. The digital dashboard is a joy to use too. First introduced on the Audi TT, you can manipulate the size of the dials and even have a full sat nav screen displayed in front of you. It works incredibly well. In fact, the entire multimedia system on the Audi is a joy. It’s one area where I really feel the manufacturer is excelling compared with its other mainstream premium rivals. The driving position is comfortable, but a little more cramped than a Range Rover around the legs. Perhaps this is down to the fact Audi wants it to feel sporty, but it’s noticeable nonetheless and who really wants a sporty SUV? Over the few weeks we’ve had to get acquainted, I’ve found the steering to be a little on the light side and the eight-speed automatic gearbox a little sluggish to respond, but both niggles have eased as my mileage in the car has increased. One thing that really stands out in the Q7,

“

Audi knows the Q7 is a big car and has added a whole host of parking aids for you to slot it into even the tightest spaces. though, is the build quality. I’ve taken lots of passengers from all walks of life for trips in the Audi and they’ve all mentioned how nice it is. And it really is. Nice is such a terrible word, but the Audi’s classy touches such as the soft neon mood strips across the interior, the classy switchgear and the smart leather seats really do make it a lovely place to spend time. I’m not quite sold on the looks, though. It’s certainly better looking, smarter and more grownup than its predecessor, which seemed to be around forever, but this model’s slab sides and sharp creases don’t quite do it for me. I’m probably in the minority. Since I’ve been lucky enough to be custodian of our £65,250 longtermer I’ve seen lots around. Mostly driven by women, near schools. I’ll let you make the connection. Right now the only thing the Audi needs is a thorough clean. My five-year-old daughter likes spending time in it as much as I do, but she never seems content on one seat. That means there’s crisp detritus and chocolate smudges (sorry Audi; even more sorry mummy) spread liberally around each of the Q7’s seven seats, which will make cleaning a lengthy job. I’d better get on with it.

THE KNOWLEDGE Model: Audi Q7 3.0 TDI Quattro S Line Price: £65,250 Engine: 3.0-litre, TDI Power: 268bhp Max speed: 145mph 0-60mph: 6.5 seconds Emissions: 153 g/km MPG: 48mpg (combined) Mileage this month: 800 THIS MONTH’S HIGHLIGHT Picking up the keys to a £65k SUV CarDealerMag.co.uk | 87

THE FLEET.

LATEST FROM THE FLEET... Second report:

Second report:

Third report:

SeatCupra

OutlanderPHEV

DS4Crossback

SuzukiVitara

Looking the part and comfortable with it

Clare’s converted but for the home charging

Plenty of gripes but at least the mpg is great

Striking look beats the socks off earth tones

THE Cupra has been in solid use since it arrived. Well run-in now, it’s really starting to loosen up and show its merits as a little hot hatch. It definitely looks the part, too. First and foremost, it’s the Cupra’s daily usability that shines through. The boot’s a decent size, there’s plenty of room in the front and – at a pinch – there’s room for two in the back. The driving position is also spot-on, which means it’s really easy to get comfortable in. We’re seeing mid-30s for fuel consumption at the moment, though on a longer run I reckon you’ll get much better than that. Thanks to cruise control and a long sixth gear, it’s relaxing on the motorway. Though it’s got sporty suspension, there’s very little jarring sent through to the cabin, and the Cupra deals well with bumps and potholes in the road. So, what next? Well, as a now fully-fledged member of the Car Dealer long-termers, there’s a good chance it’ll be seeing many miles under its tyres. I’ve just got to check if my bike can fit in the back, and if it does it’ll be the ideal car for me. I just need to keep the keys away from the rest of the eagle-eyed team. Jack Evans (@jackrober)

LONG motorway journeys, and hefty summer traffic jams were made easier for me when I took the Mitsubishi Outlander PHEV keys. At 5ft 3in, I always considered myself to be only suitable for hatchbacks or small three-door city cars, but having now experienced the wonders of this SUV, I guess you could say I’ve been converted. Though sometimes I felt swamped by this vehicle, its comfort can’t be denied. Caught up in long tourist-led jams through the New Forest and around Gatwick Airport, I sank into the red leather seat and couldn’t help but think how much more frustrating it would have been in my much smaller manual car. It’s not sluggish, or slow; it’s smooth, powerful and has a real kick to it. Handling is exceptional, with a surprisingly tight turning circle for its size, and you can almost feel the car respond and adjust to different surfaces. The big selling point is its fuel efficiency and environmental credentials. However, if you don’t have a decent charge, the petrol gauge drops pretty quickly. And it’s tricky to charge it at home when you happen to live in a third-floor flat! Clare Newman (@ClareNewman81)

I’VE NOT really been getting on with the DS4 Crossback. The company is determined to distinguish itself from Citroen, but my biggest gripe is a problem inherited from the French manufacturer’s cars it’s based on. The driving position is awful for a start. At six foot I’m tall but not absurdly so. However, there’s absolutely no hope of finding a decent driving position here. Then there’s the driving experience. The ride’s acceptable and the steering good enough, but it does rather wallow about in corners. On the plus side, it’s got a brilliantly economical engine and plenty of luggage space. My commute is a 120-mile round trip mostly spent on a dual carriageway with the cruise control set to 70mph. Few other cars in our fleet have been able to complete this journey while giving me change from a tenner but the DS 4 does so without even trying. It also looks great to my eyes, especially in the Tourmaline Orange Metallic paint our car wears. The longer I spend with the car, the more I learn to live with some of its foibles. But I can’t help but feel you’d have to really want to be different to buy one. Darren Cassey (@DCassey)

THE Suzuki Vitara has been catching eyes this month and I’ve been very proud to be behind the wheel. You might think black paint with black wheels and pink detailing is a strange combination. To be honest, when I first heard that’s how my long-termer would be arriving, I was a bit sceptical. On the roads this month I’ve definitely felt like this was a good choice, though. Car manufacturers seem to be promoting more earth tones or bronzes in their marketing material and it’s transferring to the mainstream. However, on a journey up the M1 I was extremely pleased with what I believe is a far more striking look on the Vitara. This feeling was compounded as I drove past another Vitara, a new one in fact, bearing a 66-plate. The proud owner had gone for a far more understated look than my slightly older vehicle, in what I would describe as Putty, but you could also compare it to the colour of sand on a gloomy Scottish beach. Each to their own, though. So I’ve been proudly rolling around, enjoying the last sunny days of summer in the Vitara, but I’m positive this will be the ideal motor for winter, too. Rebecca Chaplin (@believebecca)

THE KNOWLEDGE Model: Seat Ibiza Cupra Price: £18,900 Engine: 1.8-litre turbocharged petrol Power: 189bhp Max speed: 146mph 0-60mph: 6.8 seconds Emissions: 145g/km Mpg: 45.6mpg (combined) Mileage this month: 827 THIS MONTH’S HIGHLIGHT Getting to grips with the latest hot hatch to join us at Car Dealer 88 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Mitsubishi Outlander PHEV GHX5h Price: £40,899 (after PiCG) Engine: 2.0-litre 4-cylinder petrol plus electric motors Power: 104bhp, 385Nm Max speed: 106mph 0-60mph: 11 seconds Emissions: 42g/km Mpg: 156 Mileage this month: 483 THIS MONTH’S HIGHLIGHT Traffic jams suddenly got comfy

THE KNOWLEDGE Model: DS 4Crossback BlueHDi 120 S&S Price: £24,045 Engine: 1.5-litre turbodiesel Power: 118bhp, 300Nm Max speed: 117mph 0-60mph: 10.9 seconds Emissions: 103g/km Mpg: 72.4 (combined) Mileage this month: 2,250 THIS MONTH’S HIGHLIGHT Refuelling for £9 something

THE KNOWLEDGE Model: Suzuki Vitara S ALLGRIP Automatic Price: £24,285 Engine: 1.4 Boosterjet Power: 138bhp, 220Nm Max speed: 124mph 0-60mph: 10.2 seconds Emissions: 128g/km Mpg: 51.3 (combined) Mileage this month: 607 THIS MONTH’S HIGHLIGHT Feeling smug with our paint choices compared with other Vitara owners

LONGTERMERS Fifth report:

Sixth report:

Twelfth report:

FordMondeo

KiaSportage

Mazda2

RenaultTwingo

Tom is proud to call himself a Mondeo man

An emotional reunion as repaired vehicle returns

Time for a health check – and a hunt for a deal

A warning system that both helps and hinders

‘MONDEO Man’ once defined a whole section of British society, but the invention of crossovers and the rise of prestige brands has conspired to kill off traditional choices. This car would seem to have a lot to offer, though – and not just in terms of its physical size. So, just as the world has changed, so has the Mondeo. People who initially turned up their nose at the thought of a diesel Mondeo estate are visibly impressed when they see our smart blue version with its pseudo Aston-Martin nose and high-quality interior. The figures impress, too. Our Mondeo’s 2-litre twin-turbo diesel produces 208bhp, while returning more than 40mpg in everyday use. That’s progress. There are some irritations, though. Firstly, the sat nav system isn’t quite as intuitive as some rivals’ units. It also makes some very odd road choices. The other gripe is with the gearbox. The Powershift automatic seems to get confused at low speeds when on slopes. But the Mondeo is clocking up the miles and impressing us with each one. To our surprise, I’m proud to be a Mondeo man. Tom Barnard (@TomBarnardPR)

THIS month’s long-term report for the Kia Sportage is more of a ‘what we haven’t done’. The car has spent the past few weeks resting up as a result of some ‘remodelling’ of the rear bumper by a nameless member of staff. The damage was done just before my last trip to France, and although minor, it did mean the rear parking sensors weren’t working properly – you don’t realise how much you have come to rely on these. It was caused by someone reversing into a truck, which was a particularly impressive feat because a) the car has rear parking sensors, b) the car has a rear parking camera, and c) well… it was a truck. The Sportage has now been delivered back looking like new, and I can’t say how happy I am to have the keys to what is now a perfect car back in my hands, and I look forward to giving a proper update next month. The Sportage is one of the best mile-munchers we have. The lightcoloured interior and high-quality materials make the whole driving experience a dream. The rest of the team will have to try very hard to get the keys off me for the time being... Andy Entwistle (@CarDealerAndy)

AS you can tell from the fact that this is the 12th long-term report for VU65 UAT, we’ve been in possession of our long-term Mazda 2 for around a year now and its time with us is coming to an end. Not surprisingly though, and with the total mileage approaching 25,000, it was recently due a service. Right – who to call? Well, our location in south Hampshire meant that we contacted Magna of Southampton first off, where we were quoted what we thought was a rather high £316. Not surprisingly perhaps, and being the chap in charge of the purse strings here at Car Dealer, managing director Andy Entwistle raised an eyebrow at this (well, both of them actually...) and said he’d do a bit of shopping around. To cut a long story short, the job was done for £160 at Hendy in nearby Eastleigh, showing that it’s worth searching for a good deal, even when you’re keen to use a main dealer. A couple of minor recall items were sorted, Andy told me, and the car had a thorough health check before its return to Mazda HQ. We’ll be sorry to see this car go when its time with us is up – it’s been a real star of our fleet. Dave Brown (@CarDealerDave)

TO BE honest, I’ve always thought tyre pressure monitoring systems to be a lot of hassle for little reward. Every time you change your tyres, you need to reset the system via a complicated series of button presses, and the light will sometimes come on simply because of a change in air temperature. They’re a bit pointless, too, because you usually know when you’ve had a blow-out. So when the tell-tale orange light sparked into life on the dash, I wasn’t really sure what to make of it. The car was driving quite normally, so there clearly hadn’t been a catastrophic tyre explosion, and a quick walk-around check in a nearby car park revealed no nails poking from the rubber. Once I was safely in the confines of the office car park, it quickly became apparent that not one of the four tyres actually had enough air. However, the light remained stubbornly illuminated even when they’d been topped up to the correct levels. Resetting the system – mercifully less fiddly than I’d feared – finally banished that pesky light, which has become just an unhappy footnote in our generally agreeable time with the little Renault. James Fossdyke (@JFossdyke)

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: 8.1 seconds Emissions: 134g/km Mpg: 54.3 (combined) Mileage this month: 1,387 THIS MONTH’S HIGHLIGHT Altering people’s perceptions

THE KNOWLEDGE Model: Kia Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2 seconds Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 108 THIS MONTH’S HIGHLIGHT Getting my beloved Kia back

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: 10.1 seconds Emissions: 89g/km Mpg: 83.1 (combined) Mileage this month: 878 THIS MONTH’S HIGHLIGHT Getting the car serviced for half the price of the first quote

THE KNOWLEDGE Model: Renault Twingo Dynamique S Energy TCe90 Price: £12,545 Engine: 0.9-litre petrol Power: 98bhp Max speed: 103mph 0-60mph: 10.6 seconds Emissions: 99g/km Mpg: 65.7 (combined) Mileage this month: 607 THIS MONTH’S HIGHLIGHT Winning the warning light battle CarDealerMag.co.uk | 89

BAGGOTT.

Have you got our FREE iPad app? Download it here bit.ly/CDMiPad

Selling cars online: Can success really follow such epic failures? I

n business it’s always good to know where the next threat is coming from. It’s decent business practice to know if Dodgy Dave Down The Road has decided to ditch his bargain-bucket bangers and is instead planning to start hawking nearly new motors to compete with your pre-reg. It’s also good to keep an eye on what the competition is offering. If local Generic Mainstream Manufacturer is selling City Car That Looks Like Every Other B Segment City Car for £150 per month on a PCP and your Ever-So-Similar City Car That Looks Like Every Other B Segment City Car is £50 per month more, you know Mrs Miggins is going to spend hours on Comparethecarcat.com and head to your rivals instead. Unless you’re savvy, of course, and know what they’re up to. But what if the threats weren’t from where you expected? What if it was so blindingly obvious that you hadn’t even considered they would be the ones to hit you harder in the hard-earned than anyone that’s ever gone before them? No, I’m not talking about HMRC – those money-removing magicians are a given – I’m talking about those brand names that we use every day. Virgin tried it; that didn’t last. Tesco tried it, and we all know how that went. But what about the bigger brands? What about the not-so-sleeping internet giants of this world who’ve got so many billions in the bank they could buy the Moon and use it as an outpost for their R&D teams, just to make them look ‘a bit kooky’? You know who I’m talking about – rhymes with boogle. They’ve even tried it before. ‘Selling cars can’t be that hard, can it?’ I imagine thought Larry and Sergey, so they set up a test in California. I like to think it was them, on their own, coding away furiously, high on 14 Red Bulls and two and a half packets of Haribo, angrily prodding at a keyboard to change the face of car retailing, but it probably wasn’t. They were probably too busy creating Google+. (Too soon?) Anyway, Google’s model was one we’ve sort of seen before. They let Californian users search for cars at local dealerships and then request a ‘quote’ from the showroom. But there was a ‘clever’ twist. They didn’t actually reveal who the potential buyers were to the dealers. Instead, quotes were sent to a proxy address or phone number and then forwarded, by Google, to the customer. They obviously deemed handing over the contact details of the user to dealers was like handing over children. What would those evil salespeople at the dealerships DO with these details? Phone them!

Who is James Baggott?

Maybe even... No, they couldn’t, could they? They wouldn’t dare to, would they? What if they EMAILED them too?! Needless to say, Google didn’t have the luck they were hoping with it. I’ve done some research – well, I’ve used said search engine – and could find little evidence of the project still being around. But then I’m in Gosport, not California, and I’m pretty sure they can work out where I am. Now there’s a new threat, one that’s even more omnipresent than those doodle logo-wielding web nerds. This month the drone-threatening, Prime-pushing book sellers at Amazon have decided to muscle in on the car market too. Dubbed ‘Amazon Vehicles’ (can you see what they’ve done there?), the site promises to be a ‘car research destination’ and ‘automotive community’. Oh, pass me the sick bucket, I

James ‘Is Amazon trying Baggott to out-internet the internet?’

AGAINST OUR BETTER JUDGMENT, WE GIVE OUR CEO THE LAST WORD EACH MONTH

just threw up in my mouth. They say they’ll make it ‘easy for consumers to get the information they need when shopping for vehicles’. Sorry, but isn’t that what the internet is for? Is Amazon trying to out-internet the internet? I wouldn’t put anything past them. So far, the site offers no way for consumers to buy cars. But that’s like Tesco setting up a site to give people advice on shopping for groceries, and then not offering them the chance to buy any. Why on earth would they do that? Well, obviously they wouldn’t. There’s a plan in them there digital hills and I’d bet my house on Amazon thinking it’s golden. So, friend or foe? Well, I’m not sure. Buying cars online is something that’s fraught with difficulties – consumers might say they’re ready for it, but then they’re not really, are they? They still love seeing cars in the metal, kicking the tyres and working out if their bigger-than-they-think-it-is bum fits in the driver’s seat. Amazon may know retailing like few others – arguably it’s the greatest retailer on the planet – but even for them, the art of selling cars by humans and the relationships and services that come with it might just still be out of reach of a machine. But then what if they promised to deliver the cars with drones? Oh, well that’s an entirely different proposition altogether… and I’ll have to come back to you on that one.

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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