Car Dealer Magazine: Issue 108

CDX17: ALL THE LATEST ON BIGGEST EVENT FOR DEALERS IN UK

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EDITORIAL HEAD OF NEWS AND FEATURES Rebecca Chaplin

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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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WELCOME. last for ever? It seems as if

DO you feel like winter will

the cold weather will never ease as I glance out of the window from my toasty office.

That’s a lie, actually. Although conditions at Car Dealer Towers have improved slightly over the past few years, we’re often suffering in either the freezing cold or blistering heat, thanks to our temperamental radiators.

However, I know that will garner absolutely no sympathy from you salespeople – who have likely been braving the cold for coming up to five months now.

If you get a chance, treat yourself to a cup of tea and have a read of this latest copy of Car Dealer.

Hopefully, this month’s edition will warm the cockles of your heart, or at least get you raring to head out on to the forecourt and sell some more cars!

Our cover feature should be enough to set your heart racing, with two incredible machines taking centre stage.

We took the opportunity to test the latest Audi R8 V10 and the Ducati 1299 Panigale S, while exploring the relationship between these highly regarded brands.

The Car Dealer team have had some ‘horrible’ things to do this month too, namely trekking over to the other side of the pond for 2017’s NADA Conference. We’ve got the details on the latest trends and experiences from our American counterparts, as well as some predictions for what we’ll be seeing over here soon.

If you’re looking for more inspiration for your business but didn’t manage to get to NADA this year, we’ve got more great ideas for you at CDX17.

If you can believe it, there are only three months until the UK’s biggest motor trade expo and conference takes place at Silverstone, so don’t forget to set aside May 23 in your diary and register for your free tickets now.

I won’t give you all the details here, as you can turn to p18 and find out all about it, but we’ve been working extremely

hard to ensure that this year’s event blows your socks off. If you don’t feel that has happened on the day, you can take it up with me personally.

I’ll be on the Live Stage once again in another decidedly garish outfit – so you won’t be able to miss me.

This month, we released news of the the panels we’ll be holding on stage and details of keynote speakers too.

You can read more further on in the mag, and I promise that you won’t be short of inspiration if you manage to take in a few sessions.

The keen-eyed among you will notice that we’ve got a very packed forecourt section this month. We’ve had a bit of a tweak of it to make sure you’re getting the most out of it, specifically because we’ve got some great names telling you about their cars this month.

Jack has been in Spain test-driving the new Lamborghini Aventador S and had some time with none other than Stefano Domenicali, CEO of the company and ex-team principal of Ferrari F1.

A final thought before I let you get on with the rest of the issue – online car sales. There have been three manufacturers creating their own platforms to sell cars to customers and deliver direct to their doors.

They said this won’t affect dealers negatively, but we’ve been taking a look at the facts. Turn to p22 for the full story.

Let me know your thoughts by using my contact details on the left-hand side of this page.

Enjoy the issue.

Rebecca Chaplin Head of News and Features

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INSIDE. ISSUE 108 I MARCH 2017

Dashboard

06 All white now: Top car colours 10 Car Dealer goes to NADA 16 Countdown to CDX 18 Online car sales 22 Around the UK 26 Car Dealer Power launch 28 Rebecca Chaplin 33 Around the World 39 Finance 40 Big Mike 45 Feedback

54 88

There’s a new addition to the MX-5 line-up – Mazda fan-boy Andrew Evans delivers his verdict

A new long-termer joins the fleet

22

A changing role for dealers in the world of online sales

85 How to use data to enhance the customer experience

Forecourt

‘‘

Lamborghini Aventador S Hyundai i30

Aren’t we better off starting with all the facts before we make any big decisions?

33

Rebecca Chaplin

Kia Rio Mazda MX-5 RF

Feature Data File

The Statistics Market Insight Taking Stock Auctions

28

Money Talks Key Notes with Traka Long-termers

Car Dealer Power – your chance to tell us what you think of suppliers and manufacturers

56

The Super Powers

Car Dealer Club

James Baggott

46 48 50 54

70 72 74 77 78 83 85 88 90

OUR EVENTS...

As voted for by dealers, Car Dealer Power is unique. Turn to page 28 for news of the 2017 awards – and find out who won in 2016 by going online to bit.ly/CDP2016

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry.

This year’s ceremony will take place on November 27, 2017.

The UK’s biggest and best automotive trade expo will take place at Silverstone on May 23 – once again sponsored by GForces. See the special cover flyer for more info, and turn to pages 18-21.

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

Whole day wasted by my staff every week!

ARE your staff stealing from you? The suggestion might be controversial and I hear shouts from both the employer and employee: ‘If my staff stole, I’d sack them’ and the employees shouting, ‘Of course we don’t steal’.

Hear me out. Over the years, I have heard and seen so many examples, and recently taken on five employees overnight. Talking today to a parts delivery driver, the conversation got on to staff and how different some people are when it comes to work. Some just turn up and go, others actually understand what else is entailed rather than just turning up.

Going back to when I was an apprentice in the late 80s, I was told in my first few days how it works. The service manager explained to me: ‘You start at 8.30 and finish at 5.15. ‘‘Start’’ means ready to start. It’s not a case of clocking on, putting your overalls on and then starting work.

When I say ‘‘finish at 5.15’’ that means finishing the work, then washing your hands at 5.15, not driving off the premises at 5.15.’

I remember those words well, and to make sure, I was always at work around 8.15am at the latest.

Some of the experienced, long-term mechanics pretty much stuck to the rules too, so it wasn’t just ‘us apprentices’. If someone was five minutes late, they would lose quarter of an hour’s pay.

I was explaining to my staff how this was when I was a lad and I’m reasonably flexible; however the give and take has to be on both sides.

So am I wrong when I tell them that they are stealing from me? Last week, three of them came into the kitchen to make a drink at 8.30am, then they wandered into the workshop, chatting away.

Eventually, at about 8.50, they decide to open the workshop doors and move a couple of cars.

By the time they start to bring cars in for work, it’s 9am. At the end of the day come 5pm, they start to clear up and are ready to go at about 5.05 and on the dot at 5.15 they are off.

To me, I’ve lost at least 20 minutes each in the morning and 10 each in the evening, that’s 30 minutes per day per person, that in a week is nearly a day’s worth of work – wasted. My time.

I asked how would they feel if I deducted the wages at the end of each month for the hours

Tweets of the month Carlos Ghosn’s bold reforms helped save Renault in the 90s, but tough decisions were made along the way.

Nissan Motor @NissanMotor Join our Chingford team, 97 per cent of customers would recommend this dealership to a friend.

Vertu Careers @VertuCareers Our first collaboration with Pendragon PLC – work begins on Stratstone JLR Cardiff.

SRA Architects @SRA_Architects 6 | CarDealerMag.co.uk

Picture of the month This Nissan Micra got a little more than it bargained for in Croatia. It was the first time the country had seen snow in 14 years and it managed to slightly overshadow the launch of the new model. Find out what we thought of Nissan’s latest supermini by going online to bit.ly/micra-108 not worked? They didn’t seem to understand that they were actually stealing from me! Thoughts? umesh Same for me. In fact I was told by a manager that I was ‘at work’ when I woke up!

Although I do remember back in the day about ‘smoke breaks’ and how sympathetically smokers were treated. The smokers would work at least an hour less than the rest of us per day, especially when the management were smokers too!

While we are on the subject of timekeeping, I remember when banks opened at 9am sharp. Not 9.02am or 9.04am.

It might seem petty, but 9am is 9am. metcars I feel your pain. I think it’s all about setting out your stall early. It’s almost impossible to change staff when they settle into a routine. I have tried and made a rod for my back cutting them too much slack, whereas my partner works in a coffee house which is run like a military operation.

If they are five minutes late, he docks them shifts the week after. But to answer your question – yes, they are stealing. The next question is – how to resolve the situation? justina3

I see your point and I would agree about the morning as making drinks and chatting is clearly something you do before work in your own time, but in the evening I think clearing the place up is work. Why should they work until 5.15pm then clear up in their own unpaid time?

I would be more interested in whether employees represent good value for money or not, don’t take the p*ss too often and get the job done when it needs doing.

Counting minutes here and there would do my head in. I mean, would you deduct their wages for toilet breaks under those circumstances? bestprice4cash Productivity is more important than arriving 10 minutes late. I’ve got a mechanic who is really good and who I couldn’t do without. He’s not the most punctual but it would be hard to replace him, so a bit of give and take is needed.

M.J

Closing down – adios amigos!

Well, as of today, I am officially out of the motor trade. It’s been a fun couple of years with lots learnt along the way, but financially it hasn’t worked out for me. No regrets though, if I get the opportunity I will be back. Watch this space, and thanks for all the advice, your knowledge has been invaluable. I haven’t thought about what I’m going to do next but maybe I’ll end up working as a yard boy for BCA. I’ve often wondered what it’s like on the other side of the fence. Who knows?

JKG Good luck. I’m not far off making the same decision, unfortunately! My first few years of trading from home went well and most of my customers were decent people. In recent months I’ve found it harder to make a profit with much more hassle from people regarding the Consumer Rights Act etc. I’m just not enjoying it any more.

SK Motors

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CarDealerMag.co.uk | 7

DASHBOARD. GLOBAL SALES

Renault-Nissan’s strong growth

BMW backs down and allows its dealers to use Carwow. bit.ly/bmw-108

Could you tell if these were toys or real cars?

THE Renault-Nissan Alliance delivered significant growth in 2016, with global sales of 9.96 million vehicles.

The group also continued to do well in the field of zeroemission motoring and has now notched up cumulative sales of nearly 425,000 EVs since the introduction of the Nissan Leaf in 2010, followed by the Renault Zoe. The Alliance sales figures include Mitsubishi sales of 934,013 vehicles globally.

Mitsubishi joined the Alliance in the autumn.

ASTON MARTIN

Refurbishment work completed ASTON Martin’s showroom in Wilmslow has reopened after an extensive refurbishment.

The Water Lane dealership has state-of-the-art facilities featuring a deluxe showroom for new Aston Martin sports cars. It also has a luxurious lounge where customers can create their own tailored new car to their exact specification, including the use of ‘Q by Aston Martin’ elements.

DP Phil Cole said: ‘We are delighted to be opening our renovated showroom.’

FINANCE

2016 profitability lower than in 2015 ALTHOUGH last year was a record one for UK vehicle registrations, it failed to live up to 2015 in terms of dealer profitability. The average dealer finished the year with a profit of £178,000 per site, down nearly £20,000 on the figure at the end of the previous 12 months, according to profitability specialists ASE. Retailers did, however, outperform 2015 in the month of December.

08 | CarDealerMag.co.uk

Buyers fooled by photos of toy cars in adverts HPI experiment shows things aren’t always what they seem to be online

P

rospective car buyers across the country have been fooled by spoof online sales advertisements of toy cars purporting to be the real thing.

To prove to the public that not everything online is as it seems, vehicle history checking specialists HPI ran a number of fake car advertisements that displayed images of toy motors.

Edited images of four different models were used for the experiment, all of which were in fact 1:24 scale models of the real vehicles. These were posted on a popular UK selling platform, alongside other ads.

Despite using images of toy cars, however, the adverts were taken at face value by the public.

One of the advertisements received five responses, from interested customers asking to either set up a

by REBECCA CHAPLIN @believebecca

test drive or arrange a viewing.

It wasn’t just one model that the public were unwittingly attempting to spend big on, another of the models used in the experiment also received several responses, with one person even going so far as to make an offer.

The images of the models were created using perspective by carefully placing them on raised platforms.

The experiment was prompted by HPI Check research which showed that most people in the UK have been fooled by an online photograph.

Findings revealed that 80 per cent of men over 55 believe that people look different in photos than in reality. Younger people are less vulnerable to the fact that things are

different online. The research by HPI Check also found that 60 per cent of women think they look better in pictures that are edited, while men are less likely to upload an unedited selfie to the internet than women.

Almost half of those surveyed of either gender would never upload an unedited picture of themselves.

Fernando Garcia, consumer director of HPI, said: ‘No matter how good something looks and appears to be, things aren’t always as they seem.

‘To do this, we needed to have the images look as realistic as possible. Getting an offer proved how vulnerable people can be when they see things appearing to look better online. The research helped sum up our points. We wanted to back up what we were saying and show that the issue goes wider than secondhand car sales.’

Suspended jail sentence for ‘irresponsible’ dealer A CAR trader from Staffordshire who sold a dangerously defective vehicle has been handed a five-month suspended prison sentence and ordered to pay £2,000 compensation.

Umar Khan, aged 40, of Uxbridge Street, Burton upon Trent, was sentenced at Stafford Crown Court after pleading guilty to two trading regulation offences and one product

safety regulation at an earlier hearing.

In February 2015, Khan sold a Nissan Navara through AutoTrader that was found to have major structural defects and severe corrosion.

Khan had described the car as being in ‘excellent condition throughout’ when he sold it for £5,050. He traded as UK Motors from his home.

Staffordshire County Council’s

trading standards team, which brought the prosecution, secured a report which stated that the vehicle was dangerous and unroadworthy.

The five-month sentence is suspended for 12 months. In addition, Khan was ordered to pay £3,500 costs; an £80 victim surcharge and a £150 fine; and compensation of £2,000 to the purchaser of the car.

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DASHBOARD.

Green

Most popular colour 1996

Blue

Most popular colour 1997-1999

MG teams up with eDynamix for service plan partnership bit.ly/MG-108

Silver

Most popular colour 2000-2008

White here, white now... but buyers are starting to shun popular colour Stats show that in England, buyers are going back to black

W

hite maintained its position as the UK’s most popular new car colour for the fourth year in a row in 2016, according to data released by the SMMT. More than half a million new car buyers chose the colour last year – a fifth of all registrations – although figures show its popularity is starting to fade, with demand falling by 2.1 per cent and making it the first drop since 2005.

White and black are the nation’s two favourite car colours – of the 2.69 million new cars registered in 2016, white (552,329) and black (542,862) took more than 40 per cent of the market share. While white maintained its lead in Scotland, Wales and Northern Ireland, in England it was overtaken by black as the new car colour of choice.

Nationally, the third and fourth most popular colours were grey and blue, both gaining market share. Meanwhile, yellow cars appeared in the top 10 for the first time since 2013 at the expense of mauve, which dropped to 11th place.

Regionally, black topped the chart in the southeast while also overtaking white as the favourite new car colour in East Anglia and the West 10 | CarDealerMag.co.uk

by ANDREW EVANS @snavEwerdnA

Midlands. However, white continued to be most popular across the rest of the country, with buyers in the south-west, East Anglia, East Midlands, Yorkshire and the north all following the trend.

Glen Kenington, general manager at Trust Ford for Barnsley, Wakefield and Castleford, told us: ‘White is still a popular colour, but has slowed a little. Black is still a favourite.

‘Blues have been making a comeback recently – Deep Impact Blue is a current favourite for Fiesta and Focus.’ The traditionally strong reds are not doing as well, however.

Kenington said: ‘Solid red is still nowhere near where it used to be, and although it still sells on Fiesta, this is usually because of price and not popularity.’

He added: ‘Metallic reds are also still not making a comeback.’

Black

Most popular colour 2009-2012

White

Most popular colour 2013-2016

WINNERS AND LOSERS IN 2016 GOING UP l Pink may still be a niche colour choice, but last year demand grew by 82.7 per cent to 3,527 units.

l A 44 per cent rise in demand for bronze cars saw a record 8,902 people spec the colour in 2016.

l Turquoise’s popularity grew more than threefold last year, from just 792 registrations in 2015 to 2,718.

GOING DOWN l Is brown’s time in the top 10 coming to an end? Demand fell by 40.1 per cent, meaning it dropped one place to ninth.

l Appetite for beige fell by 27.6 per cent to under 10,000 for the first time since 2000, with 8,426 cars registered.

l Silver saw the biggest volume decline, falling 22,209. A total of 273,220 buyers chose it compared with 843,870 in its heyday back in 2004.

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DASHBOARD. CRIME

Scope of probe into dieselgate is extended by German prosecutors. bit.ly/scope-108

An artist’s impression of the new dealership

Reward offered after £3m raid JAGUAR Land Rover has offered a reward after engines reportedly worth £3 million were stolen from one of its factories.

The car maker said it was working with police to investigate the theft but declined to comment on reports that a stolen lorry was twice allowed to drive into and out of its 300-acre plant in Solihull. It is believed the engines were stolen from the site between the evening of January 31 and the early hours of February 1.

SSANGYONG

Witham Vehicle Solutions wins ESSEX-BASED dealership Witham Vehicle Solutions has been named by SsangYong as its UK dealer of the year.

It was presented with its award at a gala dinner held at the National Railway Museum in York, where it was congratulated on achieving the best performance based on criteria including sales success; parts and accessory performance; and the launch of the Tivoli XLV crossover.

Full list of all winners online at bit.ly/winners-108

CONTRACT

Cox and Cap HPI renew relationship COX Automotive UK and Cap HPI have renewed their relationship with a new three-year contract.

The deal is seen as underpinning the commitment of both companies to providing their clients with accurate data and businesscritical information.

Cox Automotive has a long history of working with Cap HPI, with the latter’s data used across the business.

12 | CarDealerMag.co.uk

Dealer group announces new Hyundai endeavour ENDEAVOUR Automotive has unveiled plans for a new flagship Hyundai dealership in north London that will have 47 cars displayed over two floors.

The retailer said growing demand for Hyundais had influenced its decision to relocate from West Hendon Broadway to Colney Hatch Lane in New Southgate. Overall, Hyundai experienced a five per cent

year-on-year growth in sales last year, passing 92,000 registrations.

The cost of the build isn’t being made public as yet, but the new site, which is due to open in the third quarter of this year, will boast more than 1,000 square metres of display space. It will include a 13-car showroom and Hyundai UK’s first indoor used car display area – capable of holding 34 cars – on

the building’s first floor. There will also be a nine-bay workshop with dedicated MOT, tyre-fitting and wheel-alignment stations, plus integrated space for car care with two valet bays and a wet-wash area.

John Caney, the managing director of Endeavour Automotive, said: ‘We will take great pride in establishing a flagship site with Hyundai at our new north London location.’

Higher insurance costs put motorists off EVs, says poll Charging infrastructure and skills gap are other areas of concern, reports IMI

T

he higher cost of insurance is putting off drivers from making the switch from diesel to low-emission vehicles, according to a survey published recently.

Research conducted on behalf of the Institute of the Motor Industry (IMI) shows that while 40 per cent of the public are worried about air pollution and see low-emission vehicles as a solution, they are unwilling or unable to pay the increased insurance premiums currently levied on these cars. As a result they won’t consider buying or leasing one any time soon.

Insurers charge up to 50 per cent more to cover electric and hybrid cars because of the higher purchase price and the lack of skilled technicians available to repair them.

As things stand, only one per cent of mechanics in the UK have the

by ANDREW EVANS @snavEwerdnA

necessary qualifications to carry out work on the high-voltage systems of ultra low-emission vehicles and they are almost all employed within franchised dealers.

The public are similarly concerned with the lack of charging points available to service electric and hybrid cars, according to the IMI research.

The IMI survey was carried out by Vital Research and Statistics. They polled 2,000 UK adults with driving licences in December last year.

Only 17 per cent of respondents thought the extra costs for insurance were a price worth paying for the environmental benefits – even though 38 per cent ranked air pollution as the thing they worried about most.

Steve Nash, CEO of the IMI, said: ‘Millions of pounds of taxpayers’ cash spent on charging points will be wasted if the government won’t help independent garages and the wider industry keep up with the switch to electric. It’s not rocket science.

‘Small businesses are uncertain about future demand for work on electrified cars and won’t risk investing in the skills they need without help from the government.

This means insurance and servicing costs will stay out of the reach of many drivers.

‘The government has recognised the most obvious barrier to consumers buying electric cars, which is the charging infrastructure, and it is taking direct steps to address this.

‘However, there are other barriers that must be addressed too, not least the skills gap.’

Make Part-Ex conversations easier 73% of consumers already trust our valuations - so you can start conversations with potential buyers, making negotiations quicker and easier all round.

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*Auto Trader research September 2014.

CarDealerMag.co.uk | 13

DASHBOARD. DIESEL CARS

New scrappage scheme on way?

GOVERNMENT officials are working on a scrappage scheme for diesel cars and it could be here within months, according to a national newspaper.

The Daily Telegraph has reported that officials at the Department for Transport (DfT) and Department for the Environment, Food and Rural Affairs (Defra) are drawing up proposals whereby owners who trade in their polluting vehicles could get money back or a reduction on lowemission cars, in a bid to reduce emissions and improve air quality nationwide.

The newspaper quoted a government source as saying that the Treasury would pay for the initiative. However, the Telegraph also reported a DfT spokesman as saying there were ‘no plans’ at the moment to bring in such a scheme.

14 | CarDealerMag.co.uk

Aggressive dealer treated buyers unfairly, court told Businessman ordered to pay fines and compensation of over £5,000

A

Nottinghamshire car dealer has been ordered to pay more than £5,000 by magistrates after treating customers unfairly and denying them refunds and compensation.

Andrew Ostolski, of Heathfield Way, Mansfield, pleaded guilty to seven offences against the Consumer Protection from Unfair Trading Regulations 2008 as director of QMC Limited on the town’s Bradder Way. QMC Limited pleaded guilty to four offences against the Consumer Protection from Unfair Trading Regulations 2008 and one offence against the Road Traffic Act 1988. The company also received a fine of £750.

Mansfield magistrates heard that the dealership refused to refund deposits to two customers in December 2015 and January 2016,

including a female customer who was subject to aggressive behaviour when she requested her money back.

In August 2016, the dealership sold a Ford Focus that was not fit for purpose because it broke down on its first journey from the garage.

No refund or replacement was offered to the customer after the garage collected the car.

Furthermore, the dealership sold a Vauxhall Astra which had faults and refused the buyer a refund – the car

was found to be unroadworthy when independent examiners carried out an inspection of it.

Councillor Glynn Gilfoyle, chairman of Nottinghamshire County Council’s community safety committee, said: ‘This dealer used threats and intimidation to customers who had genuine problems with the vehicles he sold them, refused to refund deposits and in one case took the car back and left the customer out of pocket.

‘The major concern is that he sold a car that was found to be unroadworthy, so justice has been served and the dealer will now have to compensate affected customers and pay fines.’

Ostolski was ordered to pay a total of £2,790 in compensation, court costs of £1,672 and a £700 fine.

Don’t miss out on potential sales 84% of consumers are more likely to search outside of working hours. With Live Chat you can talk directly to buyers at a time that suits them.

Source: Auto Trader Annual Buying Report 2016

CarDealerMag.co.uk | 15

DASHBOARD.

Off to NADA to help us plan It was a trip to NADA in America two years ago that was the inspiration for CDX, the biggest automotive event of its kind in the UK. This year we returned to pick up even more ideas . . .

A

s NADA, the National Automobile Dealers Association convention and expo was the inspiration for Car Dealer Magazine’s ground-breaking CDX show, we’ve once again been on a fact-finding mission to the USA to see how we can improve our event for May 23.

This year is a very special anniversary for NADA. It marks 100 years since the trade body was founded at a meeting in Chicago. This year’s show was held at the Ernest N. Morial Convention Centre at New Orleans, Louisiana.

The remarkable venue is over a kilometre long, has a total of more than 100,000 square metres of expo space and served as one of the most important shelters for survivors in the aftermath of Hurricane Katrina in 2005.

So what are the latest trends in America?

Investing in staff

Targeted marketing

A HOT topic at NADA was the question of how dealers can stand out from the crowd – an increasingly important consideration as consumers now tend to decide who they will buy their car from online before visiting any showrooms in person.

The US market has realised that it is important to grab a customer’s attention up front – and that even a regularly updated website with lots of bells and whistles might not cut the mustard. The conclusion they have come to is that they must invest in their staff to make everything more personal.

It is no longer necessary for someone to be ‘sold’ a car in the traditional sense.

The priority is to assure buyers that you can be trusted. An extreme example of this is one dealership that has made its entire sales team self-employed with their own businesses and marketing budgets. This has paid off with a huge surge in performance.

LOTS of companies at NADA claimed to be able to help dealers with their online marketing. This is not unique to the USA – we will have a number of businesses at CDX17 capable of helping in the same way. Google offers workshops at both conventions to keep the industry ahead of the changes it faces.

Spin Cars is a company which can use data from your website to see which vehicles an individual customer has looked at and what features, such as performance or safety, they were most interested in. Dealers can then present customers with tailored adverts featuring an image of a specific car they might like and a personalised message.

Pure Cars uses mobile tech to deliver data on where phone inquiries are coming from.

The firm can then tell dealers which cars are most popular in which areas, allowing them to target marketing spend by vehicle.

THERE are three major factors that are starting to impact car dealers in the USA, and we think all these are likely to be felt in the UK. Firstly an increase in used car supply will have a negative impact on dealer margins. The number of used cars available on the market in the USA fell from a high of 82 million in 2008 to a low of 62 million in 2012 as a result of the global financial crisis nine years ago and the subsequent

reduction in the level of new car sales.

Although this meant stock acquisition was more challenging, the positive impact was that unit profit increased by nearly 50 per cent to nearly $2,400 (£1,900) per unit. However, the recent buoyant market is having the reverse effect, which means that competition will be greater when selling. This will impact profit.

Also coming into focus is ‘disruption’, where

NADA is truly impressive – and thousands of dealers from all over America travelled to this year’s event in New Orleans, Louisiana

Three things affecting car dealers in the US (Surprisingly, Trump isn’t one of them...)

16 | CarDealerMag.co.uk

for CDX17...

We explore the halls to find out Self-service and VR

Smart driving tech

WHILE at NADA, we tried out virtual reality and self-service sales units. These gave a glimpse of what car retail could look like within the next decade.

The self-service units are akin to those you would find in a supermarket or a Premier Inn and replicate the features that would be found on a dealer’s website. Customers can book a service or check in for one, arrange a test drive or even buy a car.

Although still in beta, the system is already very simple and easy to use. It most likely won’t be replacing your staff anytime soon, but at $2,000 (£1,600) a unit, it could be a good additional option, especially when members of the service team are very busy.

Virtual reality may be in its infancy, but it could change the face of car retail over the course of the next few years. US dealers are already buying VR headsets for their showrooms in increasing numbers.

ANOTHER new technology we experienced at NADA was that of fitting aftermarket car data devices. A number of companies at the expo were throwing significant marketing and development budgets at this.

Verizon has recently launched Hum, a smart system that dealers can offer as an optional extra at the point of sale. By plugging the device into your on-board diagnostics port, you will have access to a number of features, such as a ‘find my car’ option or the ability to automatically call the emergency services in an accident. In addition, the dealer can be notified when the vehicle needs a service or repair, allowing them to proactively contact the customer before they even knew there was an issue.

The service costs $10 (£7) a month and also allows parents of young drivers to keep an eye on their children’s driving habits or make sure the car isn’t stolen.

a retail model is fundamentally challenged and changes, in effect killing the old guard much in the same way Netflix’s model destroyed Blockbuster. In the USA, the new car retail market has not seen significant disruption yet, but with 75 per cent of car buyers polled saying that they would be happy to take the whole thing online, it’s something that may affect them in the reasonably near future.

Key to this is the third factor, that consumer behaviours are changing. Recent analysis has shown that car buyers are now visiting an average of just 1.2 dealers when buying, down from four dealers just 10 years ago.

This usually means that they have done all of their investigating online, where they’re ‘clicking tyres, not kicking tyres’. Only afterwards do they venture out to visit a physical showroom.

Looking forward to a year of celebrations THIS year’s NADA event kick-started a year of celebrations for the National Automobile Dealers Association, which is celebrating its 100th anniversary in 2017.

‘It’s not every day that a national trade association reaches its 100-year anniversary, yet NADA is still as strong and relevant today as the day it was founded,’ said 2016 NADA chairman Jeff Carlson.

For the past 15 years, more than 90 per cent of all new car and truck dealerships in the United States have been NADA members. Few, if any, other associations have sustained those membership numbers, Carlson added.

NADA was formed when a group of dealers set out to fight a bid by Congress to levy a luxury tax on new automobiles. Thirty dealers from state and local associations travelled to Washington to contest the issue.

By convincing Congress that cars were not luxury items as they were classified, but instead were vital to the economy, the group prevented total factory conversion to wartime work and succeeded in reducing a proposed five per cent luxury tax to three per cent.

The incident was the first of many chapters where local dealerships fought to keep new vehicles affordable.

Mark Scarpelli, NADA chairman for 2017, explained: ‘NADA was formed to make sure that entrepreneurs could open local dealerships and provide affordable cars and transportation to farmers, factory workers and people from all walks of life.’

Scarpelli’s priorities for 2017 include advocating on legislative and regulatory issues; promoting the consumer benefits of local dealerships; meeting with auto manufacturer executives; and getting the next generation of dealers involved in their trade associations and on Capitol Hill.

‘We’re advocating for clarity with the new administration and Congress, whether it’s related to auto financing, new tax proposals, vehicle recall policy or fuel economy rules,’ Scarpelli said. ‘We’re concerned about vehicle affordability for consumers. We have to make sure we keep our customers top of mind when dealing with all of these issues.’

TURN THE PAGE TO FIND OUT WHY YOU NEED TO BE AT CDX17 CarDealerMag.co.uk | 17

CDX17.

Register for your free tickets at CarDealerExpo.co.uk

Too important to miss: Join us at Silverstone on May 23 It’s the automotive industry event that everyone’s talking about – we’ll see you there!

I

by DAVE BROWN @CarDealerDave

t’s the automotive industry event that just keeps on getting bigger and better every year – and now we can reveal more about what will be happening at CDX17 at Silverstone on Tuesday, May 23.

With the Live Stage; the Social Media 200 Awards; insightful workshops; the enormous expo; speeches from industry leaders and much more besides, it’s hardly surprising that hundreds of you have already signed up to join us at Silverstone – but there is still plenty of time to save the date and come along.

Best of all, the whole day is free to attend for dealers, so what have you got to lose?

Not convinced yet? Here are six of the best reasons for you to attend. l It’s held at The Wing, Silverstone, the home of the British Grand Prix; l Google, Twitter, Facebook, Instagram and the SMMT will be giving keynote talks; l The UK’s biggest automotive suppliers will be showcasing their products; l Leading manufacturers and dealer group bosses will be appearing on the live stage; l You can learn in workshops and get best-practice advice from the experts; l And you’ll be able to network with thousands of fellow dealers at the biggest and best motor trade event in the UK. Did we mention it’s entirely FREE for bona fide car dealers to attend? The only thing we ask is that you register in advance at our shiny new website, cardealerexpo.co.uk and then we’ll see you on the day.

Rebecca Chaplin, head of news and features at Car Dealer magazine, said: ‘When last year’s CDX had finished, we were all wondering if we would be able to top it for 2017.

‘It was such a great event we thought it would be tricky to replicate its incredible success.

‘But there’s no question in my mind that this year’s CDX will be absolutely sensational – and we’d love to see as many of our readers there as possible. The Car Dealer team will be there to meet everyone and we guarantee a great day out.

‘CDX17 is simply a must-attend event for all motor trade professionals so sign up today. Apart from anything else, it’s free! What’s not to like?’

18 | CarDealerMag.co.uk

CAR DEALER LIVE STAGE

Live Stage is at the heart of the action THE Car Dealer Live Stage will be at the heart of CDX17’s line-up once again with more panels and keynote speakers than ever before.

Here, delegates will get the opportunity to discover new ideas from industry leaders and keynote speakers.

The chief executive of the Society of Motor Manufacturers and Traders, Mike Hawes, will be on stage to talk about the state of the automotive industry in 2017.

With Article 50 expected to have been triggered by the end of March, this year will be a particularly key time for the economy and car sales.

Facebook and Instagram’s automotive client partner Anita Fox; Google’s lead generation manager Scott Sinclair; and Twitter’s agency sales manager Ross MacDonald will also be taking to the stage to talk about how your footprint online can increase your footfall in-store and the virtues of social media in a business environment.

This year, even more key industry figures will join our panels too, giving attendees an exclusive opportunity to pose questions to

some of the biggest names in the business and learn valuable lessons from them.

The Car Dealer Live Stage will host a panel of car manufacturer bosses who will be discussing what they expect to see in the automotive industry in 2017, and whether the move to online sales will mean the demise of dealerships as we know them.

Listed and franchise dealer bosses will be discussing their views of the industry, plus a group of independent dealers will be speaking about the challenges facing operators in the used car sector.

We’ll be finding out the secrets of volume selling with car supermarket bosses, and, for the first time, we will be asking a group of supercar dealers about the difficulties and opportunities that they have faced over the past 12 months.

The panel from the Women in The Motor Industry (WITMI) breakout session will also be on the Live Stage this year.

They’ll be taking questions about diversity and encouraging more women to take up roles at dealerships and in the wider industry.

LIVE STAGE

CAR DEALER LIVE STAGE AT CDX17 09.15 What’s happening on the Live Stage – James Baggott.

09.30 Making the most of Facebook and Instagram in your dealership.

10.00 What will Brexit mean to the car industry? With SMMT chief executive Mike Hawes.

10.30 The challenges facing independent dealers in 2017.

11.00 The opportunities and difficulties when selling supercars.

11.30 Making the most of Twitter for car sales.

12.00 WITMI on the Live Stage.

12.30 View from the top with listed and franchised dealer bosses.

14.00 Introducing the new product launches at CDX. 14.30 How to harness the power of Google in an age of

digital dealerships.

15.00 The secrets to volume selling with car supermarket bosses.

15.30 The road ahead for car sales with car manufacturer chiefs

from Ford, Mitsubishi, Mazda and Kia. Mike Hawes 16.00 The future of digital dealerships.

Silverstone, Tuesday, May 23, 2017 THE SOCIAL MEDIA 200

Make sure you’re included on our list

Glittering awards do will round off an incredible day

The scene at last year’s Autocar Awards THE Autocar Awards will be held once again straight after CDX at Silverstone.

As last year, the awards on May 23 will celebrate the individuals, manufacturers and cars that have made the biggest impact on the industry over the past 12 months.

The biggest honour will again be the Issigonis Trophy, named after Sir Alec Issigonis, creator of the original Mini. The winner will be the individual judged to have contributed the most to the competitiveness of the European car market.

Last year, PSA Group chief executive Carlos Tavares earned the accolade.

Also presented on the night will be the Sturmey Award. Named after Autocar’s founder in 1895, it celebrates innovation and achievement in the motor industry, and 2016’s winner was Ariel Motor Company’s Simon Saunders.

The 2017 awards will also celebrate the rare models that have achieved a perfect five-star rating from Autocar’s road testers.

Other awards include the Readers’ Champion Award; Innovation Award for technical prowess; Used Car Champion; Outstanding UK Leaders and Game-Changers. Autocar’s Design, Engineering and Motorsport Heroes will also be revealed on the night, too.

The evening event will include an exclusive drinks reception and dinner.

Autocar editor Mark Tisshaw said: ‘The automotive industry is one of the fastest-moving and most innovative in the world – and the Autocar Awards set out to celebrate the very best of it in a way that sets the evening apart from other awards events.’

AS THE saying goes, the times they are a-changing. In previous years, we have recognised and honoured the most influential car dealers on Twitter at our annual CDX event – but, new for 2017, we are including many more platforms.

There is not one social media channel that stands above the rest and Klout recognises that.

Yes, Klout, that curious way of measuring how influential you are on social media, is assessing all the channels you use all of the time. And as we all know, that list can include Facebook, Instagram, Google Plus, LinkedIn, Foursquare, Wikipedia and Twitter.

Because of this, we have revamped the Most Influential Dealers on Twitter Awards for 2017 and are now welcoming ALL social media champions to the shiny new Social Media 200 session. The only place to find out where you’ve ranked will be at CDX17, with the results unveiled in an exclusive session for those who make our shortlist.

This list of the most influential car dealers will be judged in the same way as in previous years, based on the highest Klout scores, but this time it will also take into account a company’s combined Twitter, Facebook and LinkedIn followers.

If two companies have the same Klout score, their places in the list will be determined by the combined following they have across these platforms, making this the most comprehensive form of the list yet.

This is an invitationonly event for those who are shortlisted. We’ll be poring over the numbers in the coming weeks to generate our shortlist, before we compile the final list closer to CDX17.

To ensure your dealership is included in the list, direct-message @CarDealerMag on Twitter or Car Dealer Magazine on Facebook with links to your social media channels.

Those who attend will be able to put their questions to representatives from Facebook, Instagram, Google and Twitter.

SOCIAL

THE

MEDIA

200 200

AWARD CATEGORIES • Most Influential Car Dealer 2017 • Most Influential Independent Dealer 2017 • Most Influential Franchise Dealer 2017 • Most Influential Car Supermarket 2017 • Most Followed Dealer on Twitter 2017

• Most Followed Dealer on Facebook 2017 • Most Followed Dealer on LinkedIn 2017 • The Social Media 200’s Best Social Campaign of 2017 • The Social Media 200’s Highest Climber 2017

FACEBOOK’S BACK

We like this! A welcome return to CDX FACEBOOK returns to CDX this year joined by breakout session on how to use Facebook to photo-sharing app Instagram to help you increase your sales. boost sales using the social platforms.

The session will include handsAnita Fox, who is automotive on demonstrations of how you client partner for both brands, will can achieve real results for your be sharing her expertise on how business, an ideal workshop for to run impactful campaigns that those who take a marketing lead deliver both sales and footfall to as part of their role. your showroom.

Fox has been with Facebook Building on last year’s keynote and Instagram for two years, but speech from Facebook, there will has been involved in automotive Anita Fox be even more to learn at CDX17. industry marketing for most of her As well as speaking on the live stage, where career. Before joining the Facebook Fox will be sharing insights into customers’ team, Fox was in charge of Jaguar’s paths to purchase, she will also be hosting a UK brand experience strategy.

CarDealerMag.co.uk | 19

CDX17.

Register for your free tickets at CarDealerExpo.co.uk

New addition to the huge expo CDX17 THEATRE

EXPO

Think Dragons’ Den meets Car Dealer, and you ask the questions!

Y

ou asked and we’ve made it happen.

Last year at CDX16, car dealers told us they loved the expo but with so many suppliers to see, they wished there was a way they could identify the best products to hear about quickly and easily.

In the weeks after the event, we got our thinking caps on and the CDX Theatre was born.

In Hall 1 at Silverstone on May 23, suppliers will be given the opportunity to explain the benefits of their best and latest products and how they could make a difference to your business.

Each supplier will get a 15-minute slot.

You’ll be able to hear about some products for the very first time, while others will be the mustuse ones on the market.

These sessions will be more intimate, giving you the perfect chance to give those presenting a grilling – think of it as Dragons’ Den meets Car Dealer Magazine. We’ll be hosting a series of speakers from businesses who will be able to help you make a real difference and boost your profits.

Already confirmed are companies ranging from AutosOnShow, Carsnip, Codeweavers, GForces, Keytracker, Plan Insurance Brokers and many more. Closer to the event, we’ll be releasing a full list of suppliers that will be braving the CDX Theatre so you can plan your time at the event.

And on the day, we’ll be inviting you to ask questions, no matter how difficult!

With thousands of dealers expected to pour through the doors, it will be a tough task for our brave candidates.

Rebecca Chaplin, head of news and features at Car Dealer, said: ‘We’re always looking for ways to improve CDX and we’re confident that the Car Dealer Theatre will be another superb innovation.

‘You could say it’s curtain up on another great chapter in the story of CDX ! ’ So – take a pew in the CDX Theatre and discover the latest products that will be making a difference to your dealership.

If you’re a supplier and would like to have your 15 minutes of fame at CDX17, email us on events@blackballmedia.co.uk or call 023 9252 2434. To find out more about CDX17 head to CarDealerExpo.co.uk 20 | CarDealerMag.co.uk

CDX attendees will find plenty of opportunities

Visit stands and shake

Even more space is being allocated to stands

THE CDX expo offers the perfect opportunity to do business on the day and ensure you get a great deal when it comes to new products.

Make sure you don’t miss out on the exclusive offers by visiting the stands and shaking hands with the 100-plus suppliers who’ll be there.

After the success of CDX16’s expo, which was packed with a variety of dealership suppliers eager to outdo each other, there will be even more space allocated to stands in 2017, and suppliers have already been committing to places at Silverstone. Many car dealers said they were stunned by the variety and creativity they witnessed last year, and rumours of even more extravagant exhibits have been heard on the grapevine already.

But don’t just take our word for it: here’s what businesses that were there on the day had to say about CDX16’s expo.

Adam O’Neill, dealer marketing manager at the

Silverstone, Tuesday, May 23, 2017 SOME OF THE EXHIBITORS THAT WILL BE AT CDX17

to increase their profits

hands on top deals RAC, said: ‘In a nutshell, CDX16 was yet another great event from the Car Dealer team.

‘We had a very busy day and made some really useful contacts. It was also really good to get our dealers to come along to our first-ever RAC dealer conference, which we held at the expo.’

Georgia Foley, events executive at IMI, said: ‘CDX was a brilliant and worthwhile event, where we engaged in quality conversations with key decision-makers from the auto industry.’

And Stefan Voloseniuc, CEO at AutoVolo, added: ‘It was clear from the moment you stepped through the doors of The Wing at Silverstone that Car Dealer had raised the bar on the previous year’s CDX event. We met hundreds of dealers, engaged with lots of contacts and generated masses of great business.’

These will be limited opportunities, so don’t miss your chance to get in front of the key people who could transform your business!

AutoAlert in association with ASE AutosOnShow Auto Trader AutoVolo Autoweb Cap HPI Carcodeal CarGurus Carsnip CCKeys Codeweavers Cooper Solutions Cox Automotive DealTrak Dragon2000 eDynamix enquiryMAX GardX GForces Glass’s IMI iVendi JudgeService Keytracker Lawgistics Mallard Vehicle Finance Martec MDF Database Solutions Moneypenny Oodle Plan Insurance Brokers Progress Recruitment Solutions ProspectMotor RAC Reynolds & Reynolds Search Optics Secure Valeting Sigmavision Titan DMS Traka Automotive Trusted Dealers Warranty Administration Services Ltd

Meet top suppliers to the industry at CDX

WITMI

Who should be our Woman of the Year?

WHO says there aren’t enough women in the motor industry? At CDX, the Women in the Motor Industry breakout session is one of the most popular around and packed with women who’ve carved shining careers all over the trade.

This year our panellists will be taking questions from the audience, as well as discussing their personal experiences. There’s an opportunity to get your voice heard in our session too, as WITMI Woman of the Year – new for 2017.

Read on to find out how to take part.

Our panel will be hosted by Gaia Innovation Ltd CEO Julia Muir. She has more than 25 years’ experience in automotive retailing and manufacturing. Muir also founded the 30% Club, a group of CEOs and MDs who campaign to close the gender gap in the industry.

Melody Munday, who appeared on ITV’s Deals, Wheels and Steals after setting up her own car dealership, will be in the answering questions on her career and WITMI sharing her ideas on the changing attitudes to women in our industry.

Anita Fox, automotive client partner for Facebook and Instagram, will be talking about her career in the motor industry, having worked for Jaguar Land Rover and Volvo.

Auto Trader sales and service director Le Etta Pearce has been with the company for more than two years but has also gained a lot of experience around the industry, previously working for Manheim and Ford.

GardX marketing manager Gemma Heathcote started there as a graduate and will be sharing her story about how she ended up working with the motor trade and whether it was what she expected it to be.

If you know a woman who you feel should be recognised for the work that she does in the industry, you can nominate her to be WITMI Woman of the Year. You can vote by filling out the form on our website at CarDealerExpo.co.uk/ WOTY or you can tweet @CarDealerMag. The winner will be decided in May and will take part in our panel. ®

Women Motor Industry

CarDealerMag.co.uk | 21

DASHBOARD.

Could a new generation of car buyers bypass dealerships altogether?

As well as using the internet for research, people are now going online to complete the whole purchase process. REBECCA CHAPLIN reports

I

t’s no secret to all of us in the automotive industry that the retail landscape is changing fast. We all know that buyers these days do a lot of research online before visiting a dealership to make their purchase... and that they visit fewer showrooms while they’re in the process of reaching that decision.

But now things have been taken to the next level, and if buyers choose a car from certain manufacturers, they need never visit a dealership at all!

One of the carmakers who is providing the entire purchase process online is Hyundai, which recently launched a service called ‘Click to Buy’.

The system allows customers to fully configure and commit to buying a car without ever entering a dealership or speaking to a salesperson.

At the time of writing, 23 customers had bought a Hyundai using the innovative new approach. Cars are handed over at a customer’s local showroom, with cash buyers having the option of home delivery.

The manufacturer’s UK president and CEO, Tony Whitehorn, is keen to stress that Click to Buy won’t mean the demise of the traditional dealership. ‘Everyone still wants a relationship with a dealer,’ he said.

‘Some manufacturers think they will end up dealing directly with the customer, but that is not how it’s going to work. What will happen is that we’ll do the transaction, but fundamentally, the dealer will do all of the physical process.

‘People also know they’re going to need to get their car serviced, so where do they do that? By bringing the dealer in for the handover, buyers now have a relationship with that dealer for when their car needs a service.’

The Click to Buy service isn’t the first time the manufacturer has offered a new way to buy a

‘The customer is in full control and can deliberate all they want...’

David Peel 22 | CarDealerMag.co.uk

With e-commerce by Peugeot, left, buyers are spared any pressure to make a decision

car. Its Rockar stores at the Bluewater, Kent, and Westfield Stratford City in London have attracted a lot of attention. Whitehorn believes that combining the dealership and online experience is the key to future success. ‘It’s not about taking the dealer out of it,’ he said.

‘It’s getting rid of the worries and the frustrations of the buying process and making it much more transparent, but then directing you to the dealer for your servicing and the handover.’

Hyundai is not alone in its innovative thinking.

Another manufacturer keen to keep ahead of the curve is Peugeot, which has just launched its ‘Order Online by Peugeot’ system.

The company says the platform offers a good degree of flexibility, putting the consumer firmly in the driving seat during the purchase process.

Customers can build a car that meets their requirements, secure a guaranteed part-exchange valuation for their existing vehicle, and fund its replacement according to their individual budget criteria, using a range of finance options.

The system was launched without any fanfare recently and, within 12 hours, the first order had been placed with others following quickly. The range of cars chosen spans the Peugeot range, from the 108 to the all-new 3008 SUV, and the profile of customers is equally wide.

Customers can browse Peugeot’s model range, then save details in their own, password-protected account, which means they can think about their purchase before clicking to buy. Alternatively, they can start the configuration process again to compare packages and cars.

With a new web interface, built in-house by the Peugeot team, it is entirely feasible for a customer to go through the whole process from end-to-end, and order a car in less than 30 minutes.

Peugeot UK managing director David Peel said: ‘The launch of our e-commerce system represents a huge step-change for the UK automotive industry. The retail landscape in general has changed immeasurably over the last few years.

‘Traditionally, car buyers can find visiting a dealership daunting. With e-commerce by Peugeot, that pressure to make a decision is removed; the customer is in full control and can deliberate all they want over spec and finance decisions, change their mind and retrace their steps as many times as they wish.

‘If, having browsed the model range, selected

‘I got on my laptop and ordered it!’

Box-fresh: Hyundai buyers can obtain their new cars without visiting a dealership

their car and found a finance package that works for them, a customer wants a test drive, they can still arrange this before committing to a purchase.’

The Peugeot system filters the best available options for the user, based on the criteria they set.

Customers have the option of either picking their new car up from their local dealership or having it delivered to their door. Finance deals are available online through e-commerce, with the part-exchange element of the system underwritten by Manheim.

Smart is another manufacturer forging ahead with online sales. It has just launched a new website with pre-configured ForTwo and ForFour models ready to buy.

Customers start at smartcarsonline.co.uk where they create an account, reserve a car by placing a £250 holding deposit, and complete a credit

application. As is typical with these new sales models, they can then choose to either collect their new Smart from a local retailer or have their car delivered direct to their home.

The online store offers a number of preconfigured cars available with black or white panels and a black tridion cell.

There are three payment packages, enabling customers to choose from either a lower monthly payment, a standard offer, or a lower deposit. At the end of the process, they could be on the road from as little as £119 a month.

Head of Smart in the UK Krishan Bodhani said: ‘We’re delighted to offer this option to our customers. It’s really easy to do and is extremely time-efficient, enabling a customer to make a reservation, fill in a credit application and sign a contract at a time and place that works for them.’

THE first people to buy cars through Hyundai’s new e-shop platform, Click to Buy, have taken delivery of their cars.

Keith Peile, a 65-year old retired security officer from Poole, Dorset, was the first to buy, replacing a two-year old Hyundai i10 he’d previously bought through an online broker, with a brand new model, less than three days after the system had gone live.

Speaking to Car Dealer Magazine, Peile said: ‘I used to find coming to dealerships a bit drawn-out. Salesmen, as their name suggests, try to sell. As I always go knowing exactly what I want, it’s just hours of saying ‘‘no thank you’’. With Click to Buy you can state exactly what you want, and it’s so easy and straightforward.

‘I was sitting in front of the television one evening with the tablet.

‘The advert came on and I thought I’d explore the site. I managed to persuade my wife overnight that it was a viable proposition and the next morning I got on the laptop and ordered it.’

Since launch on January 6, 23 Hyundai cars have been ordered via Click to Buy. The site has had more than 92,000 visitors with 43 per cent of customers trading in their existing model and 93 per cent collecting their new car from a local dealer.

Mat Carrington, head of business at Westover Hyundai, Poole, told us: ‘It shows the change in buyer behaviour. People do a lot of their research online before they ever come to us – people really know what they want and we’re here to validate their decision. I think it’ll prompt more inquiries into the business, with people going online and getting a quote, then coming to us and having a conversation about it. Click to Buy is something different and if it gets Hyundai talked about, it’s good for us!’

David Pugh, marketing director at Hyundai Motor UK, said: ‘I knew we’d have lots of people in the system having a look but I didn’t think we’d have a sale this quickly!’

Keith Peile takes delivery of his new car CarDealerMag.co.uk | 23

DASHBOARD.

Revealed: Kia’s top dealers of 2016

KIA’S best-performing UK dealers have been rewarded for outstanding achievements during 2016.

The awards were presented at Kia’s annual dealer conference in Liverpool. With 187

dealerships across the UK, the awards highlighted exceptional work.

The winners were: l Dealer of the Year 2016 – Dicksons of Inverness l Dealer Excellence Award – Flear &

Thomson (Dunfermline) l Dealer Excellence Award – Drayton Motors (Boston) l ‘Family-like Care’ Award – TMS (Hinckley) l After Sales Excellence Award – Norfolk Motor Company (Norwich)

l Sales Excellence Award – Burton Kia Paul Philpott, president and chief executive of Kia Motors (UK) Ltd, said: ‘It’s a privilege to be able to reward our bestperforming dealerships.’

INVESTMENT

1.7m cars roll off production lines THE number of cars built in the UK has reached a 17-year high, but investment fell last year amid uncertainty following the Brexit vote, new figures show.

Around 1.7 million cars rolled off production lines last year, an increase of 8.5 per cent over the previous year, with exports reaching a record 1.35 million.

The Society of Motor Manufacturers and Traders said global demand for British-built cars increased by more than 10 per cent, with four of every five cars exported. SMMT chief executive Mike Hawes predicted that car production would reach an all-time high before 2020, but he sounded a note of caution after revealing that investment by the industry fell to £1.66bn last year from £2.5bn in previous years.

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

24 | CarDealerMag.co.uk

DASHBOARD.

Chief executive describes her as a ‘wonderful ambassador and role model’

A

uto Trader customer experience and operations director Alison Ross has been named Woman of the Year at this year’s Women in IT Awards.

In a ceremony opened by MI6 head Alex Younger, she was recognised for her outstanding contribution to driving diversity within two traditionally male-dominated industries: IT and automotive.

Ross has worked at Auto Trader for 14 years, holding a number of roles over that time. Most recently, she has been responsible for the overall customer experience of the business, internal operations (people and culture) and internal systems.

She was the key leader in driving through a complete transformation of Auto Trader’s culture over the past three years, as well as contributing to

the wider Manchester community in which the business is based.

These achievements included diversity workshops, women and family networks, teaching digital skills, and establishing partnerships with Women In Tech, Mums In Tech and Girl Geeks.

Commenting on her win, Ross said: ‘I have been lucky to have built my career with Auto Trader. As a company, we put the importance of diversity and inclusion at the heart of

our culture, but things in the industry are changing fast. I would love to get the message out to girls and young women that a career in technology is incredibly rewarding.’

Trevor Mather, Auto Trader’s chief executive, said: ‘All of us in the industry know that the automotive and digital worlds have a significant challenge with diversity.

‘Traditionally, neither is perceived as an attractive industry to enter by women or minorities. That’s why we are fiercely proud of Alison’s long commitment to educating, inspiring and attracting more women into what is unquestionably an innovative and exciting sector. Alison is a wonderful ambassador and role model not only to those of us at Auto Trader, but to our community in Manchester and the industry as a whole.’

“ Kay looks after calls when our team is busy. The result?

More sales, outstanding service levels.”

Moneypenny client since 2015

Moneypenny will support your existing team by looking after overflow calls, or by providing a fully outsourced switchboard facility.

PROPOSAL

First MOT test after four years?

NEW cars could be allowed to stay on Britain’s roads without an MOT for four years, the government has proposed.

Extending the period before the safety check is required from three years would save motorists more than £100 million, the Department for Transport (DfT) said.

It’s a proposal that has been made before, and the policy, which would also apply to motorcycles, could come into effect next year, and would bring Britain into line with Northern Ireland and many other European countries.

The AA said the change would generally be supported by drivers. In 1967, the MOTfree period was cut from 10 to three years, and the DfT believes technology and manufacturing advances mean new vehicles stay roadworthy for longer.

Kay, Moneypenny Receptionist.

Auto Trader director Alison named Woman of the Year

moneypenny.co.uk 0333 202 1005

OUTSOURCED SWITCHBOARD

DIGITAL SWITCHBOARD

SPECIALIST TEAMS

CarDealerMag.co.uk | 25

26 | CarDealerMag.co.uk

COUNTY ANTRIM: A car dealer had six high-end vehicles as well as his van stolen just days after moving into new premises. The vehicles, including a BMW 5 Series, pictured, were taken from MB Motors in Woodside Road, Ballymena, the same week the firm relocated from Cullybackey Road. Together, the stolen vehicles were reckoned to be worth approximately £100,000. The company has traded for more than 15 years, and owner Malcolm Beattie told Car Dealer Magazine: ‘I’m a sole trader and this has been a big kick in the teeth.’ The Ford van was later recovered.

£100k burglary ‘is a big kick in the teeth’

LEEDS: Porsche has opened a stylish pop-up store in a shopping centre. Guests are invited to experience ‘Porsche Life’ via interactive experiences designed to span the breadth of the German sports car manufacturer’s identity. These include insights into the iconic 911 coupe, the racing heart in the spirit of the 919 Hybrid LMP1 race car. It also hints towards the exciting future direction of the company with the Mission E, the first all-electrically powered four-seat Porsche.

Key elements of what makes a Porsche a Porsche are available for visitors to interact with in the store at Victoria Gate shopping mall.

Store visitors can sample Porsche life

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

SUNDERLAND: Nissan will review the competitiveness of its car plant in Sunderland once the final outcome of Brexit negotiations becomes clear. The manufacturer announced in October that it was investing in production of new Qashqai and X-Trail models in the north-east after receiving government assurances that EU withdrawal wouldn’t affect the plant’s competitiveness. Speaking at the World Economic Forum in Switzerland, chief executive Carlos Ghosn said the company trusted prime minister Theresa May’s assurance, but added Nissan would want to ‘reevaluate the situation’ once the final deal is concluded.

Nissan will ‘re-evaluate’ factory’s future

GATESHEAD: It was a case of hanging up the telephone for good for 70-year-old full-time receptionist Margaret Jackson when she officially retired from Jennings Ford in Eslington Park, Gateshead. For the past 13 years, Jackson has been the first point of contact there. She has greeted thousands of customers to the dealership, as well as answering and handling telephone calls. ‘I’m very sad to be leaving, but it’s time for me to spend time with my family and do all the things I haven’t had time to do because of work,’ she said.

Farewell to receptionist Margaret

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 27

A marvellous year for Maserati London LONDON: H.R. Owen Maserati celebrated a hugely successful year in 2016, with Maserati London breaking the dealership’s record for new car registrations.

The Melton Court showroom in South Kensington sold more new Maserati cars in 2016 than previously achieved in a year, following its long association with the Italian car brand. Mark Langfield, Maserati brand director, said: ‘Our excellent results are a credit to the superb Maserati London team. This year promises to be another one to remember for H.R. Owen Maserati and we’re very much looking forward to it.’

EXETER: Snows Group has officially opened its latest new development in Exeter with both Lexus and Toyota represented in the area. The £6.5m investment is part of Snows Group’s ongoing growth.

Staff, customers and manufacturer representatives supported the opening. They were joined by the Toyota Polar Hilux featured on Top Gear, which took centre stage. Phil Maddison and Alex Domone, group board directors at Snows Group, welcomed guests and introduced Ewan Shepherd, director at Lexus, and Mark Roden, sales director at Toyota GB.

DORSET: Car-sourcing platform Tootle has announced Poole Volvo as the latest addition to its platform of 2,000 dealers. Tootle has gained popularity as a method of sourcing stock from the public, allowing professional dealers to browse cars being privately sold across the UK, make offers and broker deals by phone and email. James Litton, director of Volvo Cars Poole and a columnist for Car Dealer Magazine, said: ‘Tootle slots seamlessly into our existing sourcing options, providing an interesting alternative to the conventional car-selling portals.’

Snows grows with a £6.5m investment

CHISWICK: Honda UK has appointed Chiswick Honda as its second approved NSX dealer. Chiswick Honda will join Crown Honda Hendon as an NSX supplier and aftercare specialist from April, giving additional capacity to ensure an ‘exceptional’ sales and aftersales customer experience. The NSX is described as the epitome of Honda engineering innovations. Developed over years of testing and racing, the NSX blends sports performance with everyday comfort. Chiswick Honda MD David Grainger said: ‘It is a privilege to become one of only two NSX dealerships in the UK.’

Volvo outlet joins pool of Tootle dealers

CAMBS: Aston Martin Cambridge invited the eight new owners of the limited-edition V12 Vantage S Spitfire 80 for an ultimate driving experience as they picked up their keys. The guests gathered at the Imperial War Museum in Duxford, Cambridgeshire, for the unveiling of the car. The day included a Spitfire flight experience, an armoured vehicle driving experience and a personal tour of the museum with a talk from a Second World War Spitfire pilot. A presentation from the Aston Martin Q design team told the story of the car’s design and its unique features.

STAFFS: TL Darby is to join MG Motor UK’s nationwide dealer network. The move coincides with the leading dealer group celebrating 50 years of trading, during which it has established itself as a premier name in the region for car sales, parts and servicing. TL Darby operates a number of showrooms, and Matthew Cheyne, head of sales and marketing at MG Motor UK, said: ‘With its excellent track record for friendly service and expert advice, we’re delighted to celebrate TL Darby’s anniversary by welcoming the team to our national dealer network.’

Second Honda dealer given NSX appeal

Special day celebrates a special car

Leading local dealer group joins MG

SURVEY.

The Power to have your say is placed firmly in YOUR hands It’s time to get into gear for the awards that give you the perfect opportunity to shine a spotlight on the good and the bad among the manufacturers and suppliers out there

O

ur Power Awards are unique – and powerful! Why? Because they let dealers hide behind the cloak of anonymity to say exactly what they think about manufacturers and suppliers.

It’s little wonder, then, that they’ve grown over the years to become a hugely important fixture on the automotive industry’s calendar.

Car Dealer Power lets dealers give their forthright opinions about the suppliers and manufacturers that they work with, because we don’t ask for any identification of the people making the nominations, so there can be absolutely no fear of reprisals.

And your opinions really do count, because we make sure that they’re seen by the people who really need to see them.

All you have to do is give marks out of 10 and honest views in our straightforward, no-nonsense Q&A survey. It’s on the next three pages, but you can also complete it online at CarDealerPower. com if you prefer where, again, we guarantee absolute confidentiality.

So, we want you to tell us which manufacturers and suppliers are the absolute best and how good they are at helping you. For example, what parts

do you use, who do you go to for advice, and who makes sure you get the most out of the internet?

We also want to know, though, which are the ones that give you grief!

Your votes and views will be carefully collated to provide the eventual list of winners, as well as a stark picture of those companies that just aren’t coming up to scratch.

The findings will be shared, so it’s entirely feasible that manufacturers and suppliers will change how they operate because of YOU! Last year, the Car Dealer Power winners included Autoglym for Cleaning Product of the Year, Perfect Placement for Recruitment Agency of the Year and CitNOW for Video Provider of the Year, while the Volvo XC90 was voted Car of the Year and Lawgistics won the Extra Mile Award.

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

CAN I BE TOTALLY HONEST? Make no mistake – we really want you to shoot straight from the hip and we’re giving you the full protection of anonymity as you do so.

We’ll be letting the suppliers and agencies

know what we found but we will not – repeat, NOT – tell them who told us. You have our absolute word on that. The magazine team will only be looking at the answers – we can’t emphasise that enough.

Once everything has been decided, we’ll be holding our glamorous, glitzy awards night at the fabulous venue that is the Spinnaker Tower in Portsmouth, Hampshire, and it’ll be taking place on Thursday, July 6, 2017.

HOW DO I ENTER? There are two ways to do so and both are incredibly easy.

Firstly, you can fill in the form on the following pages and post it to us at Car Dealer Magazine, Blackball Media Ltd, Haslar Marine Technology Park, Haslar Road, Gosport, Hampshire, PO12 2AG. But if you don’t want to mutilate the magazine, you can go online to CarDealerPower. com and fill in the questionnaire there.

It’s easy and it’s quick. So, make sure that you spare a few minutes to complete the form – either in this magazine or online. It’s a very small chunk of your time but your opinions and votes could make a huge difference.

The closing date for entries is Thursday, June 1, 2017 – we can’t wait to receive them!

WANT TO KEEP YOUR COPY OF CAR DEALER MAGAZINE PRISTINE? YOU CAN ALSO ENTER ONLINE AT 28 | CarDealerMag.co.uk

CARDEALERPOWER.COM

The easiest way to fill in the survey is online at CarDealerPower.com We’ve made everything simple and quick. All you have to do is give a mark out of 10 where shown and add comments. This is totally confidential, so don’t be backward in coming forward!

CAR MANUFACTURER 1. Which car manufacturer do you represent? If it’s more than one, please fill in the survey more than once. You can do this online at CarDealerPower.com

 Abarth  Alfa Romeo  Aston Martin  Audi  Bentley  BMW  Citroen  Dacia  DS  Ferrari  Fiat  Ford  Honda  Hyundai  Infiniti  Isuzu  Jaguar  Jeep  Kia  Land Rover  Lexus  Lotus  Maserati  Mazda  McLaren  Mercedes-Benz  MG  Mini  Mitsubishi  Nissan  Peugeot  Porsche  Renault  Seat  Skoda  Smart  SsangYong  Subaru  Suzuki  Toyota  Vauxhall  Volkswagen  Volvo  Other (please name) 2. How do you rate your manufacturer with regard to its finance offers?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer?

10 Comments: ............................................................. ...................................................................................... ......................................................................................

4. How would you rate your car manufacturer on its aftersales support?

8. How good is your manufacturer with regard to the internet? Consider the support it gives your online offering, how leads are fed down to you and the quality of its website.

10 10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

9. How do you rate the supply of new cars from your manufacturer?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

5. How do you rate your car manufacturer’s marketing overall?

Consider the support it offers you for advertising, the offers it comes up with and the marketing schemes it has developed.

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

6. How do you rate your car manufacturer’s brand awareness?

10 Comments: ............................................................. ...................................................................................... ......................................................................................

7. How accessible is your manufacturer?

Can you get hold of the right people at head office? Do they listen to what you have to say?

10 Comments: ............................................................. ...................................................................................... ....................................................................................... .....................................................................................

13. What do you think of the bonus structure put in place by your car manufacturer?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

10. How well does it manage used cars?

Consider how it manages stock and its used car scheme.

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

11. How do you rate your manufacturer’s forward planning?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

12. How do you rate the requirements your manufacturer imposes on you?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

14. How do you rate the return on investment from your manufacturer?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

15. Which car – from any manufacturer – do you think deserves the title of the Car Dealer Power Used Car of the Year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

16. Which manufacturer has produced the best marketing scheme this year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

17. Who is your manufacturer of the year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower. com, photocopying these pages or emailing dave@blackballmedia.co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.

CarDealerMag.co.uk | 29

SURVEY. THE SUPPLIERS This section is about finding the best suppliers. The winners will not be decided solely by being the most popular, but by how good they are at providing you with a service. We’ll be naming a winner for each category and two highly commended places, which will be announced at the Car Dealer Power Awards ceremony on July 6. For each category, first tell us who you use, then give them a mark out of 10, and finally add any comments you have.

3. Website Design For Franchised Dealers Who do you use?................................................................................

Please provide a mark out of 10.

8. Trade Insurance Provider Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

4. Website Design For Independent Dealers Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

9. Online Advertising (New Cars) Who do you use?................................................................................

Please provide a mark out of 10.

10

10 1. Warranty Supplier Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

2. Video Provider Who do you use?..................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ..................................................................................................................... ...................................................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

5. Sub-Prime Finance Supplier Who do you use?................................................................................

Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

10. Online Advertising (Used Cars) Who do you use?................................................................................

Please provide a mark out of 10.

10

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

6. Prime Finance Supplier Who do you use?................................................................................

Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

11. Used Car Valuation Services Who do you use?................................................................................

Please provide a mark out of 10.

10 10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

7. Motor Factor Who do you use?................................................................................

Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

12. Provenance Checks Who do you use?................................................................................

Please provide a mark out of 10.

10

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

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CARDEALERPOWER.COM

13. Cleaning Products What do you use?................................................................................

Please provide a mark out of 10.

10

17. Online Auctions & Trade-To-Trade Remarketing Who do you use?................................................................................

Please provide a mark out of 10.

10

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

14. Recruitment or Training Agency Who do you use?................................................................................

Please provide a mark out of 10.

18. Best Lead Generation Tool Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

19. Dealer Management System Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

15. Paint Protection Who do you use?................................................................................

Please provide a mark out of 10.

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

16. Physical Auctions Who do you use?................................................................................

Please provide a mark out of 10.

20. Product Innovation of the Year Your nomination................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ....................................................................................................................... .......................................................................................................................

The closing date for nominations is June 1, 2017.

That might seem like a long way off but it’ll be here before you know it, so make sure you get your surveys in soon!

Send your completed surveys to:

Car Dealer Magazine

Blackball Media Ltd Haslar Marine Technology Park Haslar Road Gosport, PO12 2AG With its majestic views, the Spinnaker Tower in Portsmouth will be the venue for the awards ceremony on July 6

21. The Extra Mile Award (The company or individual that has gone the extra mile for you somehow this year) Your nomination................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ....................................................................................................................... .......................................................................................................................

10 Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

WANT TO KEEP YOUR COPY OF CAR DEALER MAGAZINE PRISTINE? YOU CAN ALSO ENTER ONLINE AT

CARDEALERPOWER.COM CarDealerMag.co.uk | 31

JOURNEY

MANAGE YOUR

CONSUMER digital

to

physical

engage

convert

transact

Contact us to discuss how we can help you manage your consumer’s journey 0845 226 0503 info@ivendi.com www.ivendi.com/CD 32 | CarDealerMag.co.uk

DASHBOARD.

Trump, Brexit... and why all car makers should have their say

T

here are some key failings in Donald Trump’s attitude towards the car industry.

Oh no, I hear you cry, she’s going to start ranting about him like everyone else who’s taken to social media in the weeks since his inauguration.

Yes, I do have some opinions on the Donald, but don’t worry, I’m not about to go full John Bercow and throw my toys out of the pram.

I’ll confine my observations to his dealings with American car makers and add a few comparisons to what’s happening on this side of the Atlantic.

It’s fair to say that, across the world, automotive bosses are holding their breath as they wait to see how the dust settles in the wake of the US Presidential election.

However, and perhaps strangely, quite a few of them seem to be sitting on the sidelines while others are granted an audience with the man of the moment.

You’ll probably remember that Trump convened a meeting with the top three car manufacturers in the US recently: Ford, General Motors and Chrysler. His point was that, as American companies, they should manufacture their cars in the US of A, not anywhere else (especially not Mexico).

We can argue the rights and wrongs of this approach – but isn’t this bit of a problem for all the car makers who weren’t invited to that meeting?

Overall, the best-selling vehicle of 2016 in the States was an all-American Ford: the F-Series, a chunky pickup truck that the Blue Oval has made in one guise or another since 1948. However, the best-selling car was the Toyota Camry, and the car that saw the biggest increase in sales was the Jaguar XE. Mercedes was the best-selling luxury car brand and Toyota got another mention for recording the best SUV sales figures.

It’s worth noting that Toyota in particular has a huge production footprint in the US. Japanese in origin it may be, but it’s clear there’s a huge American influence there.

Is the Donald’s view of car sales based on some idyllic picture of automotive manufacturing from yesteryear?

He might want to return to the days of American-built cars for American people but times have changed; the world has moved on.

Over the years, Trump himself has owned a series of Rolls-Royces, a Lamborghini Diablo and, my ideal car, a Mercedes-Benz SLR McLaren. He’s even owned a Tesla Roadster. That means that the all-American auto fan and

Rebecca

global-warming denier has imported a lot of his dream cars from outside the US. It’s true that none of his choices were Japanese though, and maybe that’s why he didn’t want to include Toyota in the discussion.

Looking at our own situation, I can’t say I see Theresa May continuing to woo car industry bosses. In her first few days in office she met Nissan chief Carlos Ghosn, but Nissan is certainly not the only car manufacturer in the UK that could be hit by the effects of Brexit.

I’m not surprised that May hasn’t wanted to meet with other manufacturers if the deal that she’s negotiated with Nissan is actually as sweet as we’ve been led to believe, but I’m surprised brands who were keen to have their say before the referendum have now gone extremely quiet.

I find it fairly shocking that May isn’t interested in their thoughts on the matter too, as these are huge contributors to the UK economy. It’s fair to say that Ford has a pretty big

Chaplin ‘I can’t say I see Theresa THE VIEW FROM BEHIND THE SCENES

May continuing to woo car industry bosses’

footprint in the UK when it comes to manufacturing, then there’s Jaguar Land Rover and what about BMW, who went so far as to email employees about the vote?

Are these brands waiting to see how everything pans out when they should be lobbying to ensure they’re protected?

Or is this political minefield so dangerous they’re trying to avoid it at all costs?

If I were May I’d want to know exactly what impact Brexit will have on every one of those companies, and what it will take to keep them based here. I’m not saying the UK government should meet all their demands but, as the whole referendum proved, aren’t we better off starting with all the facts before we make any big decisions?

I find it pretty baffling that manufacturers remained on the sidelines recently as dealer group bosses in the NFDA took it upon themselves to lobby MPs about the outcome of Brexit. Will car makers ensure the voice of the automotive industry is heard when it comes to important Brexit-related economic decisions? Sometimes, even though it might make you unpopular with some, you need to take a stand for what you believe is right. Particularly if that means protecting the jobs of your employees.

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 CarDealerMag.co.uk | 33

DASHBOARD. CITNOW

New financial chief appointed CitNOW has strengthened its senior leadership team with the appointment of Claudia Munn to the board as chief financial officer.

Munn brings strong automotive and financial expertise to her new role, having held several senior financial positions with Volvo, Tesla and Honda.

Her appointment comes at a time of considerable growth for CitNOW, as the automotive video expert expands into both European and international markets.

Wokingham-based CitNOW has also grown in the UK home market, and now works with 91 of the top 100 dealer groups and 35 OEMs. CEO Alistair Horsburgh said: ‘Claudia brings a wealth of experience from previous positions with some of the most coveted names in the automotive industry.’

Dealer group on a mission to help buyers save money £4m initiative will help Foray customers avoid new road tax charges

L

eading West Country Ford dealership Foray Motor Group has launched a £4m initiative to help drivers of new cars beat new road tax charges.

From April 1, drivers of new lowemission cars such as the Ford Fiesta, Britain’s best-selling car for the past eight years, could see road tax duties imposed that cost them hundreds of pounds over a typical three-year period of ownership.

But Foray, which has showrooms in Andover, Salisbury, Poole, Shaftesbury, Yeovil and Taunton, is rapidly filling a compound with Fiestas and the new Ka+ to ensure deliveries can be made before the March 31 cut-off.

The cars it is gathering are together worth £4m at retail prices.

Tom Croft, group sales manager, said: ‘It’s a big commitment but

Make sure you comply

one that we need to make to fulfil anticipated customer orders. I don’t want to have to say to customers that we’re sorry we can’t deliver what will be the most popular Fords even if they have ordered in plenty of time.

‘The Honest John website suggests that around 70 per cent of car buyers will lose out through these road tax changes. But Foray sales teams will do their level best to help customers beat the March 31 deadline.

‘March is forecast to be one of the

busiest months ever for new car registrations as the new 17 number plates arrive, so we have everything in place to help keep costs down.

‘I want people to know we have done our forward planning. We have cars in stock and are geared up to deliver them on time.’

As of April, the amount of duty in the first year of ownership of new cars will be determined by the amount of CO2 that they produce, and will range from £10 to £2,000. Emission-free cars won’t be liable for anything. From year two onwards, all these cars – aside from those emitting no CO2 at all – will be subject to an annual VED bill of £140. Cars with a list price of more than £40,000 will also be subject to an additional £310 levy for the first five years of ownership. The new scheme will not apply retrospectively.

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CarDealerMag.co.uk | 35

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‌by talking to Alphera, the experts in providing tailored finance advice and a comprehensive product range.

We not only provide in-depth information on all finance products, including PCP and Hire Purchase, but offer a diverse range of products, extensive training and all-inclusive brokerage support.

That way, you can confidently tailor finance solutions to your customers’ needs without the guess work.

www.alphera.co.uk Tel: 0370 505 0137

Email: info@alphera.co.uk

Vision. Partnership. Passion.

36 | CarDealerMag.co.uk

DASHBOARD.

Old v new crash test marks Euro NCAP’s 20th birthday Scheme was highly controversial at first but has saved thousands of lives

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wo family cars have been crash-tested to mark the 20th anniversary of the Euro NCAP safety scheme.

A 1997 Rover 100 and a 2017 Honda Jazz were put through a head-on collision at 40mph to demonstrate the advances in safety since the initiative was launched in February 1997.

Former Formula One boss Max Mosley, the first chairman of Euro NCAP, said ‘thousands of fatalities’ had been prevented over the years as a result of its introduction.

The Rover had no airbags to protect crash test dummies in its passenger seats during the test, which destroyed the front of the vehicle. The model was given a one-star rating when it was first tested 20 years ago, and was withdrawn from sale months later.

There was much less damage to the

modern Honda, which had airbags deployed throughout it interior. It was rated five stars for safety.

Thatcham Research, which hosts the UK’s only Euro NCAP testing facility in Thatcham, Berkshire, said safety improvements fuelled by rigorous testing had delivered a 63 per cent reduction in the number of car occupants killed or seriously injured each year, from 23,000 in 1997 to 8,500 in 2015.

Over the same period, the number

of pedestrians and cyclists killed or seriously injured annually has fallen by 41 per cent, from 14,500 to 8,500.

Manufacturers initially opposed Euro NCAP, claiming it was too strict.

Today nine out of 10 cars sold in Europe hold a Euro NCAP rating.

Mosley said: ‘Twenty years on from what started as a controversial programme, Euro NCAP is now firmly part of the automotive mainstream.

‘Thousands of fatalities have been prevented, consumer demand for safety is high, manufacturers compete on safety rating results and vehicle safety standards continue to improve.’

Thatcham Research chief executive Peter Shaw called for future safety improvements to be aimed at avoiding crashes. He said it was important to make sure that ‘Britain’s roads continue to become even safer’.

SAFETY RATING

Mustang given just two stars THE iconic Ford Mustang has achieved a safety rating of just two stars in the latest round of Euro NCAP tests.

The low score was awarded because of concerns over the muscle car’s adult and child occupant crash protection, as well as the fact it lacks safety equipment commonly available in other cars in the European market.

Euro NCAP criticised Ford, saying that the results of the crash test showcased the Mustang’s ‘American DNA’, which is designed to score well in the less extensive US consumer tests.

Ford only applied minor updates to the European variant of the Mustang so it met our pedestrian safety regulations. The Forward Collision Warning system was done away with on Europeanspecification cars.

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

CarDealerMag.co.uk | 37

?

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

Price Indicator is on its way

Whenever I speak to dealers, whether at one of our regular Masterclasses or simply when I’m out on the road visiting them in their dealerships, the most important point I try to make is: in today’s digitally focused industry, trust and transparency are king. There is no two ways about it; when consumers have so much choice available to them at their finger-tips, the dealers that are going to succeed in 2017, are those that a potential car buyer trusts. As we all know from our own online shopping experiences, we want to be confident that what we are being offered is in the right condition, there are no hidden defects, and most importantly, it’s at the right price. The automotive industry is no exception. In fact, 76% of car buyers claim that transparent pricing is the most important factor in their purchase decision.

At Auto Trader we’re committed to giving you the tools to stand out from the competition, build trust with your customers and to ultimately help you convert a site visit into a forecourt visit.

Price has, and always will be, the determining factor whether we trust a purchase or not. Today’s consumers are savvier than ever, and if an item seems too expensive, or too cheap, they’ll keep looking. The introduction of i-Control helped dealers ensure they are pricing their stock in line with the market, but we wanted to do more to build trust between you and your customers. That’s why we launched our Price Indicator functionality late last year.

Like all of our products we test them thoroughly. Price Indicator was only available through our Dealer Portal, Retail Check and i-Control to give dealers an opportunity to get used to the system before we officially launched it and to also ensure its effectiveness. The feedback we received from dealers has been fantastic, and we’ve been working hard to iron out all of the creases, including making sure that we get the extra specifications on vehicles correct. I’m very pleased to say that we’re nearly there and Price Indicator is just a few months away from going live.

How will Price Indicator work?

The Price Indicator system is designed to be as user friendly as possible; a simple way for consumers to determine whether the car they are looking at is a good deal or

not. Adverts on Auto Trader will be labelled as having a Great Price, Good Price or Priced Low in comparison to similar cars.

The Priced Low label indicates that a vehicle is priced significantly lower than the market average.

How are the indicators calculated?

The indicators are determined by comparing car prices against our market valuations. The calculations are based on make, model, derivative, age, mileage and any optional extras on the car. We combine and analyse data from over 500,000 trade used car listings every day.

Price Indicators are based on the live market today; what car receives a Great Price indicator today, might not tomorrow depending on what other vehicles have entered or exited the market. That’s why it’s vital dealers closely monitor the market and update their stock pricing accordingly.

Will optional extras affect the retail value?

“Ah, but how will it take into account all of the optional extras the car has?” Well to make sure the price labels are as accurate as possible we’ll require a little help from our customers; dealers will need to tick all of the correct boxes when uploading new stock. However, we’ll also be pulling in the spec-adjusted data from details within a vehicle’s advert automatically to help further improve accuracy. As well as making sure optional extras are more visible on the adverts, we hope to introduce the ability for car buyers to

search for specific extras or a certain level of options in their results, such as DAB radio, sat nav etc.

Are there any exceptions?

There are some. Cars under £1,500, over £50,000, nearly new cars under six months with less than 300 miles, cars over 15 years old, Cat C/D cars, imports and private listings won’t feature the Price Indicator labels.

How will Price Indicator help me?

Put simply, consumers expect transparency. It’s no longer an optional extra, but standard spec. By introducing Price Indicators alongside your ads, we’re helping you to provide just that.

Won’t getting a certain Price Indicator on my ad put customers off?

The honest answer to this is no. “Oh but you would say that wouldn’t you…” Well, yes, but we haven’t introduced this function lightly. As I said before, the dealers that succeed in today’s digital landscape are those that offer their customers a truly transparent experience.

We know that value is subjective and a buyer will make up their own mind whether the car they’ve seen represents good value for them or not. However, by labelling an ad based on the price of the car compared with the rest of the live market today, you are empowering them to make an informed decision.

For more information and support please visit trade.autotrader.co.uk/price-indicator For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter 38 | CarDealerMag.co.uk

DASHBOARD.

Around the world Dealer news from somewhere other than here

GERMANY

BCA Germany has established a new group record for the price of a vehicle following the sale of a Mercedes-Benz G63 AMG 6x6 in December. The G-Class 6x6 was finished in Mystic White and generated a huge amount of interest when it was offered for sale at BCA’s remarketing centre in Neuss. Following some very competitive bidding, the vehicle sold for €752,800 (£641,150).

AMERICA

INDUSTRY commentator Alex Roy has been giving dealers in America a hard time after a legal battle threatened to deprive Tesla of the right to sell cars direct to the public in the state of Missouri. Roy thinks too many US dealer associations are ‘terrified of competition’ and in a recent blog accused them of ‘cronyism, cowardice, hypocrisy and protectionism’.

Strong words!

BENIN

CAR dealers in the French-speaking West African nation are struggling big-time because neighbouring Nigeria has banned car imports by land. Previously, 99 per cent of car exports from Benin went to Nigeria, but demand has all but dried up. It’s not just dealers in Benin who are suffering, those across the border are sacking staff and closing too.

MYANMAR

THE government is trying to encourage car production in Myanmar, formerly Burma, by restricting imports of used cars, traditionally the bedrock of the automotive industry.

More than 90 per cent of the 540,000 passenger vehicles registered in Myanmar at the end of the 2015 financial year were estimated to be used cars built in Japan. But now, import companies are having to diversify.

Sakura Trade Center, for example, reacted to the rule change by opening a Suzuki showroom in Yangon – its first outlet for new vehicles.

Meanwhile, there are concerns not everyone can afford to buy new.

AUSTRALIA

THOSE who observe the property market are said to take a great interest in ‘trophy homes’ – the top two per cent of properties in any given market – and in Australia, one such dwelling has just been sold by a well-known importer of luxury cars, New Zealander Neville ‘Croaky’ Crichton. His house at Point Piper – a posh suburb of Sydney – was sold for more than 60m Aussie dollars, or £36m.

The only viable key management solution for automotive dealerships Traka Automotive creates hundreds of opportunities every day to: • Reduce costs • Be more productive • Sell more cars • Improve customer satisfaction • Know more about how your business is performing

Email automotive@traka.com or call 0845 225 2910 traka-automotive.com traka-auto IMI half-pg.indd 1

CarDealerMag.co.uk | 39 15/12/2016 10:04

FINANCE. Finance deals aim to tempt more customers to Mitsubishi MITSUBISHI is providing people with even more reasons to consider its recently revised model lineup with the announcement of its latest zero per cent APR HP and 5.9 per cent APR representative PCP offers.

Zero per cent APR HP is available across the entire range, while for the majority of models there is also the option of the 5.9 per cent APR representative PCP package, which offers deposit contributions of up to £2,500. There is no need for a customer deposit with either finance solution.

The multi-award-winning Mitsubishi Outlander PHEV includes a £2,500 deposit contribution when bought via the 5.9 per cent APR representative PCP finance package.

Selected versions of the Mitsubishi

Outlander diesel, which was also updated for 2017 with extra equipment and revised interior detailing, are also available with a £2,500 deposit contribution on the same PCP package.

The latest L200 Series 5 features a £2,000 deposit contribution when customers opt for the 5.9 per cent APR representative PCP offer.

Now with new ‘Dynamic Shield’

front-end styling and enhanced equipment, the 2017 model year Mitsubishi ASX is offered with a £1,500 deposit contribution on selected versions financed through the latest PCP offer.

Adding to the appeal of the legendary Mitsubishi Shogun is a £2,000 deposit contribution on all versions financed through a 5.9 per cent APR representative PCP finance package.

Finally, the Mirage Juro is available for a low monthly cost with the availability of a zero per cent APR representative PCP offer.

All the offers run until March 29, 2017. There is no cash alternative to the finance deposit contributions.

New Mitsubishis come with a five-year warranty package.

Automated systems, plus ‘eyes on every case’ insight Raphaels Finance says its ‘blended approach’ can help used car dealers

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aphaels Finance is stepping up its commitment to the used car market.

The SMMT new car registration figures for January showed that the UK new car market achieved a 12-year high at the start of 2017.

After a 2.9 per cent year-on-year uplift, the market reached its highest level since 2005.

And there’s no question that the used car market is also benefiting from the consumer appetite for car ownership. But as Darren Greenyer, deputy head of lending at Raphaels Finance, explained, motor retailers in the used market have their own challenges to secure sales.

‘Speed and accuracy of decisions is vital for brokers andAdvert dealers to ensure Car Dealer Horizontal 1.pdf 1 C

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the right customers gain access to the finance they need to help them drive away happy,’ said Greenyer.

‘Innovation over the last decade has seen ever more automated decision processes for lending, but in a fluctuating economic climate, this risks the exclusion of some otherwise creditworthy customers.’

Responding to the changing landscape for used car finance, Raphaels Finance has invested in a range of new tools for its underwriting team, which put the focus firmly on the used car customer experience at point of sale.

Designed to help finance brokers and motor retailers offer fast and effective decisions to their customers, the new back-office tools build on 04/01/2017 10:37:32

the blended approach that has become the benchmark for Raphaels Finance, combining automated credit assessment with ‘eyes on every case’ insight. The new developments also reflect the focus that Raphaels Bank places on innovation across all of its propositions, having recently won the Industry Achievement Award at the prestigious Card and Payments Awards. ‘Our focus on the back-office tools that support the decisions being given to motor dealers and brokers means that at every stage of the process, used car buyers will enjoy a seamless buying experience,’ concluded Greenyer.

‘And that has to be good news for brokers and motor retailers.’

SMMT figures, p72-73

ONLINE FINANCE

Independents will be next major market

STARTLINE Motor Finance has appointed Sara Copeland as its first head of human resources.

She joins from Glasgow Life, where she was also head of human resources, and has also held senior positions at B&Q and Marks and Spencer.

Chief executive Paul Burgess said that with Startline now employing 55 people, it was essential to have a human resources specialist in place.

‘Our headcount has grown rapidly over the last year in line with our increasing penetration into leading dealer groups, so we are very pleased to have someone of Sara’s calibre in place to look after our human resources needs,’ he said. ‘We really value our staff, so we will now have the expertise to focus on an effective HR strategy to attract, develop and retain our people.’

Copeland said: ‘It’s very exciting to be joining Startline at this point in time. I believe our people make the difference in realising the vision of being recognised as the UK’s leading specialist car finance provider.’

IN ASSOCIATION WITH

Whether good or bad, you can build trust using online reviews F

irst Response Finance can now boast that we have 1,900 five-star ratings on the website reviewcentre.com, with an average of 4.8 across all of our reviews on that website. We recently launched a Feefo review page as well, which has now given us an average of 4.9 out of five.

Now, I know it’s unusual to start selling in an editorial piece so let me state: I’m not. Yes, I do feel very proud to work for a company with such a great reputation, but that’s not why I’m talking about the reviews.

As you will hopefully have seen, at First Response, we are using the reviews in a positive way within our advertising, informing people that we are a trustworthy company and that they can be sure we will provide them with a great

‘Customers like to buy from people they can trust.’ motor finance experience, just like we did for thousands of our previous customers.

We also take the feedback seriously and where possible deliver it in a constructive way to our employees.

We have also made changes to our processes based on some of the past reviews and some comments have even led us to update our website.

As a motor dealer, there are so many negative stories flying around about rogue traders and other bad apples that we need to redirect people to the good that we do.

With the rise of social media sites such as Facebook and the reviews that they carry, we can expect more and more customers to be searching for online feedback, so you need to have them visible.

If you’ve stopped them showing on the social media

Ben

Garside TIME IS MONEY

channels you use, it is almost as bad as having negative reviews so think carefully!

So what do you need to do? Well, to begin with, start asking your customers to contribute a review.

There’s no harm in doing this, just give them a card or send them a hyperlink to your review pages.

However, and this is quite an important point, do not ask them to do it while on your premises. This can seriously affect your ratings and even get you banned due to your local IP address. And you must take action on the negative reviews, please don’t let them just sit there.

If you can respond swiftly, then the next customers to view the review will trust that you are a caring company wanting to do the right thing for your customers.

Start to utilise the negative reviews you receive to

Turn over page for more finance stories formulate training for your staff and make sure you give positive feedback where it’s due! And don’t forget to be compassionate in your responses.

It’s worth remembering that a motor vehicle is usually the second most expensive purchase in a consumer’s life.

This means that when a problem occurs with the vehicle it could feel many times worse to them, than it does to you. So a caring and compassionate approach will be needed to resolve the problem.

Be sure to share the positives! After all, customers like to buy from people they can trust, so make sure that your visitors see what a great company you are by sharing your results and the good things people say.

Consumers are visiting review sites more and more as part of their buying cycle so make sure you don’t miss out on these opportunities.

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 | 41

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . .

ESTATES VOLVO V90

SKODA SUPERB WITH quality performance and good levels of practicality as standard, the Skoda Superb Sportline is fitted with a 1.4-litre, 148bhp TSI petrol engine... and to attract customers, Skoda is offering the model for £355 per month on a 42-month contract.

Following a customer deposit of £3,172.15 and a Skoda retailer deposit contribution of £2,500, the customer pays 41 instalments of £355 for the remainder of the agreement.

At the end of the contract, the customer has paid £17,727.15, and if they decide to keep the vehicle, they pay the optional final sum of £11,089.80.

This would mean a total of £28,816.95 (£31,316.95 including the Skoda contribution) for the customer, which is just £321.95 more than the on-the-road price. This offer is available until April 3, 2017 and is based on a 35,000-mile agreement.

THE Volvo V90 is a sector-defining model for the estate world, and following last year’s update it’s become a design classic, with its modern feel and quality interior. In the R Design guise fitted with the D4 four-cylinder twin turbocharged diesel engine producing 190bhp, Volvo is offering the V90 for £349 per month on a 49-month contract.

With a customer deposit of £5,999 and a dealer contribution of £3,099, the driver then pays 48 instalments of £349.

At the end of the four-year agreement, the customer will have paid £22,751. If they decide to hold on to the vehicle, the optional final payment is £16,825. The total amount paid by the customer will have been £39,576 (£42,675 including the dealer contribution), which is £4,520.90 above the on-the-road price. This offer is available until March 31, 2017.

Investment giant ploughs £60m into new kid on block Oodle is seen as having great potential because of how it works

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odle Finance has secured £60m from multi-national investment firm KKR. The Oxford-based used car finance business, which was established in 2016, uses proprietary technology to provide differentiated and transparent financing products for a wide range of borrowers.

It has already launched a broad suite of lending products for borrowers with different credit profiles. To date, car finance has been provided by lenders that address distinctive sectors in the market defined by a borrower’s credit profile.

But Oodle’s product means used car dealers no longer need multiple relationships with different finance providers for their customers.

Instead, dealers can access cost-efficient and

by DAVE BROWN @CarDealerDave

transparent finance for a range of credit profiles by using Oodle’s automated online application process, which is driven by its proprietary riskmanagement algorithms. Oodle also has plans to launch rewards for loyalty and performance, which could, for example, be used at the end of a loan to support a deposit on a subsequent car purchase along with a new loan.

Oodle Finance chief executive Jonny Clayton said: ‘Oodle will deliver the benefits of technology into the used car market to build a company associated with exceptional service

Car Dealer Advert Horizontal 2.pdf 2 04/01/2017 10:39:45

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levels, market-leading products and affordable financing solutions for all types of borrowers.

We want to make life easier, more cost-effective, efficient and transparent for car dealers and borrowers. We will improve the car-buying and selling process, and reward our borrowers to build long-term and strong customer relationships.’

Daniel Pietrzak, managing director and global head of principal finance at KKR Credit, said: ‘KKR is committed to backing strong management teams in the speciality finance space who have developed proprietary technology that improves customer service and experiences.

‘We believe that Oodle Finance has great potential as an innovative financing platform in the UK auto market.’

Car Dealer Advert Column.pdf 3 04/01/2017 10:42:23

IN ASSOCIATION WITH

AUDI A4 AVANT BASED on the multi-award-winning A4, the A4 Avant offers lots of practicality but is still as dynamic to drive as the saloon. With a range of petrol and diesel engines, which can be paired with the AdBlue system that reduces NOx emissions, the A4 Avant also has efficiency programs to ensure it uses less fuel and produces fewer emissions. Customers can currently be offered the A4 Avant in Sport trim and metallic paint, fitted with a 187bhp, two-litre ultra TDI diesel engine, for £329 per month.

With the customer deposit of £5,816.71 and an Audi contribution of £2,500, the owner then pays 35 monthly instalments of £329.

At the end of the three years, the customer will have paid £17,331.71 and if they choose to keep the vehicle they need to pay the £16,689.15 optional purchase fee. That takes the total to £34,020.86 (£36,520.86 including the Audi contribution), which is £74.14 less than the OTR price. This offer is C available until March 31.

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STATISTICS

Another record year for point-of-sale consumer car finance, says the FLA THE point-of-sale consumer car finance market had another record year in 2016, according to the Finance & Leasing Association.

Figures just released by the FLA show that new business in the point-of-sale consumer car finance market grew 12 per cent by value and eight per cent by volume in 2016. New business was up three per cent by value and down three per cent by volume in December, compared with the same month in 2015.

The POS consumer new car finance market reported new business up one per cent by value and eight per cent lower by volume in December compared with the same month in 2015. In 2016 as a whole, new business grew 12 per cent by value and six per cent by volume. The percentage of private new car sales financed by FLA members through the point of sale reached 86.6 per cent in 2016, up from 81.4 per cent in 2015.

Geraldine Kilkelly of the FLA said: ‘The point-of-sale consumer car finance market reported another record year in 2016, with new business volumes reaching 2.3m cars.’

IVENDI

‘Price rises put more emphasis on promotion’

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A WAVE of new car price increases caused by the weakness of the pound should place a new degree of emphasis on effectively promoting motor finance in 2017, according to iVendi.

Chief executive James Tew said it was important that potential customers weren’t deterred by headline price rises when cars often remained very affordable.

Tew said that web design had a large part to play, ensuring that wherever a car appeared, a sample motor finance offer was included along with tools such as a finance calculator and an eligibility checker.

‘We advise dealers and manufacturers to ‘‘anchor’’ the finance offer next to the vehicle, so that even if the customer navigates away from the finance page, the key facts of the finance offer remain visible,’ he said.

CarDealerMag.co.uk | 43

The Customer Experience.

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Connect with your customers today.

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44 | CarDealerMag.co.uk

BIG MIKE.

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

I was left counting the considerable cost of different V70 values

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ome lessons you learn the easy way, others you learn the hard way. Recently, I learnt one the hard way…

I’ve always been pretty good at valuing stock, both from a stand-in value perspective (as in, what a car owes you, be it as a part-ex or purchase) and retail value. I’d say that about 85 per cent of the time I’m bang on, the other 15 per cent I’m usually pretty close, and – every so often – I’m way out. Well, we’re only human, after all.

It’s an experience that properly bit me on the bum a little while back, though...

I’d taken into stock a rather smart, albeit quite old, Volvo V70. It was a 2.4-litre petrol automatic, nicely specced in black with tan leather, 80,000 on the clock (not bad for a 53-plate) and with the popular ‘Family Pack’, which comprises built-in booster seats and a fold-up dickie seat in the boot to make it an occasional seven-seater.

I looked in the book (such as it is these days, with pretty much everything being online) to discover that a 13-year old V70 in good nick, mileage adjusted and with service history was worth somewhere in the region of £1,500. I figured, though, that with there being plenty of examples with bigger miles around at under a grand, and with this one being a fairly thirsty petrol auto, I was chancing it a bit at that price. It only owed me £790 out the door of the auction, so I settled on £1,295 as a sensible price at which it would look attractive to a buyer, especially after I’d given it to the Lithuanian lads down the road for a sales prep valet. It came out gleaming so glossily black you could have mistaken it for a hearse…

The only thing dead, though, was the phone. Not a sniff.

Not one iota of interest, despite it being possibly one of the best examples on the market.

After the customary three weeks, I reluctantly dropped the price, first to £1,150, then down to the magic three figures at which the idiots come out from under their rocks. With £995 in the screen, I did get a couple of calls, but mostly from people offering me PlayStations, next month’s giro or casual sex as part (or full) payment, all of which I declined.

Somewhat peeved at the effort it was taking to even extract a couple of hundred quid out of a car that I thought was going to fly out of the door, I finally offered it to a fellow trader in a deal involving three cars

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

each way. Two of his were old Jaguars, and I know where I am with those, so I let him have the Volvo for, nominally, what it owed me.

I was glad to see the back of it, to be honest.

Imagine my surprise, then, when I saw it advertised on a well-known sales website a few days later, looking just as smart as when I had it, but instead of £995 in the screen it was up at £2,995 – yes, you read that right. Three times the price…

I was even more astonished to see it disappear from the site within a week – so much so that I had to call the other trader to see if he’d actually sold it or just taken the ad down because he realised he’d put the wrong price on it. But the Volvo was, astonishingly, sold.

A young family from London had bought it, and the dad was on his way from Euston on the train as we

‘I’d priced it way too cheaply and pitched it at the wrong buyer.’ spoke. Having done his homework, he’d learnt that the 2.4 auto was, apparently, the one to have – no nasty flywheel or particulate filter problems, simple to maintain and doggedly reliable. He’d seen quite a few dog-eared examples at around the £1,500 mark and also checked out quite a few higher mileage newer models that were more expensive, but none was a patch on this example.

He’d driven up to Birmingham at the weekend with his wife and kids (who would be the main users, as the Volvo was destined for school-run duties) and agreed to buy it straight away for £2,800.

I was, of course, as sick as the proverbial tropical bird. If only I’d thought to advertise it nationally, with a suitably erudite description, the £2,000 profit could have been mine for the taking. Instead, I’d priced the car way too cheaply and pitched it at the wrong type of buyer.

So, if anyone has a seven-seat V70 going cheap, please let me know – I’d quite like to try again on this one but price it properly this time…

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 | 45

FORECOURT.

Lamborghini Aventador S Incredible engine

It puts out 40bhp more than before, now harbouring 730bhp.

Four-wheel steering

Allied with uprated software, this makes the Aventador S even sharper to drive than the previous generation.

Outlandish looks

New inlets have been added at the front, while at the side the air intakes have been cleaned up to give a simpler, more purposeful look.

An icon has been reborn and Jack Evans reckons that Lamborghini has done a fine What is it?

The original Aventador was launched in 2011, so it’s high time that it received some attention to bring it up to date – which brings us to this, the Aventador S. The first version was one of the most successful vehicles brought out by the Italian supercar manufacturer, so the new 730bhp Aventador S has a huge amount of weight upon its shoulders.

However, it’s now armed with four-wheel steering as well as uprated software, which should make it even sharper to drive than the previous generation. It also gains ‘Ego’ mode, giving it the ability to split the driving modes to suit the individual and making it easier to set up the car just as you’d like it.

46 | CarDealerMag.co.uk

What’s under the bonnet?

Rejoice, as the Aventador S retains that original car’s iconic 6.5-litre naturally aspirated V12. It puts out a staggering 730bhp – 40bhp more than before – as well as 690Nm of torque. This is sent to the road through all four wheels via a singleclutch automatic gearbox. It’ll reach 60mph in just 2.7 seconds, and continue ferociously accelerating until it hits a top speed of 217mph.

The biggest change comes in the form of four-wheel steering, which aims to improve handling and stability at high speed, as well as making the car easier to drive at lower speeds. It has the ability to virtually shorten the

wheelbase by 500mm for low-speed movements or increase it by 700mm for better stability.

What’s the spec like?

The Aventador S is not what you’d call cheap. However, for that money you get a mechanical masterpiece in that V12 engine. You also get a hugely impressive design, which stands out in the presence of almost any other car. Its new look, upgraded for 2017, looks impressive in the flesh. It’s close to the original, but it’s the subtle differences that really make it stand out. The front end, for instance, now has additional inlets or ‘teeth’ as Lamborghini calls them. At the side, the air

THE KNOWLEDGE

Big changes are in store at Lamborghini, as chief executive Stefano Domenicali described to Car Dealer Magazine What do you think the future holds for Lamborghini in 2017?

We have to proceed at a pace to launch Lamborghini into a new dimension for the future. The idea for this year is to make sure we prepare our company for a big change. We need to prepare the new production assembly line and we need to prepare our staff to be together with the dealers in a new segment. We’ve worked very hard in the preparation of the SUV [the Urus] and this seems to be easy, but it represents many different challenges because we are talking about a totally different story, a totally different car and a totally different customer.

On the other hand, we need to make sure that the perception of the people and the perception of our brand is not diluted. This is why we wanted to have the Aventador S this year and it’s why Geneva is going to be something special.

Do you think SUVs are just an extension of the brand into a different area?

Yes, absolutely. It is an extension, but once again I want to say for us it’s vital to be protagonists and to be very strong in our ideals. When you drive the new SUV – and you’re going to drive it and it will happen soon – you will discover it is really unique and different.

How do you think a customer approaching an SUV will be different to one approaching a supercar?

While on the Aventador we have a supersport customer that is really accepting of a vehicle because they love it, the SUV driver is looking for something that they can use day to day.

Are the core values of Lamborghini still in that SUV? Yes. This is the first point in remembering where we are coming from and where we want to go. Design, the dynamic performance of the car and the engine are three values that are and will be present.

It’s a completely different style of car, so are dealers being briefed on how to sell this new type of car?

Yes, correct, and that is why we’re preparing. You will see this year and in the next two years a change in the preparation of our dealerships in order to give new design and new space. Our dealers are the ones who should be ready to answer questions and what we are doing together with them is to make sure that they are familiar with the car and with our company.

Model: Lamborghini

Aventador S Price as tested: £225,955 + VAT Engine tested: 6.5-litre V12 Power (bhp): 730 Torque (Nm): 690 Max speed (mph): 217 0-60mph: 2.7 seconds MPG: 16.7 Emissions (g/km): 394 TARGET BUYERS: Those looking for huge acceleration. People wanting to make an entrance. Lovers of Italian supercars.

THE RIVALS: Ferrari F12, Noble M600.

Is it important that everyone is on the same page?

Absolutely, and the language has to be the same, too.

That’s something that we’re having a lot of meetings to address, so that from the Far East to America all the brand languages are as one.

KEY SELLING POINTS: 1. Performance that is hard to beat.

2. Huge amount of charisma.

3. Strong residuals.

Will the new SUV still be capable of going off road?

Of course. You will see there are a lot of configurations, a lot of possibilities to drive. You will see our SUV will be more connected to different situations, such as ice, stones – as well as on the street.

DEAL CLINCHER: For pure theatre, the Aventador S is really hard to beat.

If you had to set the Aventador in a specific mode, which one would you choose?

I would say I come from the sport world, so I would definitely go for sport!

Will SUV owners have different needs to those buying supercars?

Yes. The perception and the way we show the car will be absolutely different and that’s why we need to be ready. We are not used to this segment, so we need to be ready for this new game and new challenge.

‘We have to proceed at a pace to launch Lamborghini into a new dimension for the future.’

job in bringing it up to date intakes have been cleaned up and the overall impression is of a simpler, more purposeful vehicle. The iconic scissor doors remain, which means that wherever you pull up, you’re sure to make an entrance.

What’s it like to drive?

Now able to send up to 90 per cent of its drive to the rear wheels, the Aventador S feels far more adjustable than before. Go too hard into a corner and it’ll naturally push into understeer, but plant the throttle and it’ll quickly match that with far more oversteer than you might expect.

There’s actually a fair amount of feel translated from the road through the steering wheel too, which makes placing the car – and given its size

it takes a lot of placing – a little bit easier. The performance afforded by that incredible V12 is addictive. In all-out Corsa mode it is truly brutal, with each gearshift intensifying the fury.

It revs out insatiably, and continues pulling throughout the range. The Aventador S’ ride is also something special. It’s firm, but it remains composed. Out on the road it has a tendency to crash through larger potholes and bumps, but this is to be expected of an out-and-out supercar.

One point of contention is that gearbox.

When pushing on, it makes complete sense, with crisp up and downshifts completing the racing package. However, around town it’s simply too

jerky – and when compared with modern dualclutch units it feels a touch outdated.

What do the press say?

Autocar said: ‘It is . . . a much more sophisticated and rewarding car without diluting the raw excitement any V12 Lamborghini should deliver.’

What do we think?

The Aventador S boasts a host of changes that bring it closer into line with more dynamic rivals. There remain a few sticking points, but in reality this new Lamborghini remains a truly spectacular event to both drive and behold.

CarDealerMag.co.uk | 47

FORECOURT.

Hyundai i30

Darren Cassey chatted to Hyundai boss Tony Whitehorn, president & CEO, Hyundai Motor UK

What are you particularly proud about when it comes to the new i30?

When we launched the original i30, it was good, it was reliable, but it didn’t look fantastic.

However, it had a five-year warranty so people bought it as a rational purchase. The next i30 was stylish and the number-one reason people bought that car was because it had style. So what’s the difference with this version? Well, this one isn’t about being stylish, this is about design. It’s a little bit more conservative, perhaps, a little bit more mature. Therefore, the take-up isn’t quite as dramatic, but actually it has a longer tail. The other point is that the engine configuration is very interesting – they are all turbo-petrol. That’s a route that more and more manufacturers are looking at – but more importantly, it’s the route that customers are looking at.

Do you think the C segment is changing?

What I think is quite fascinating about the C segment is that it used to be dominated by the Focus and Golf but now when you start to look at it, you’ll see the A3, A Class, BMW 1 Series

and so on. What you’ve now got is a place where volume meets premium. We, therefore, have got to offer a vehicle which can compete with the cars I have just mentioned. I’m not saying that our car would necessarily beat its rivals but people are looking at our type of vehicle and comparing it against the premium marques for the first time.

We’ve got to be a credible proposition and although people have not necessarily thought of us being able to properly compete against the likes of Audi and VW before, we’re now sharing that premium space.

Do you see yourself moving away from diesel and focusing more on petrol and your new ‘e-mobility’ products?

There was a big migration to diesel away from petrol and that was for all the right reasons – and it was very CO2-driven. Now people are thinking about NOx as well – it’s a little bit more in people’s minds and people are wondering what the alternative is. I see two alternatives. The first is a turbo-charged petrol engine with a lower CC

and the second is a hybrid vehicle – hence why we’ve gone with Ioniq.

For those who might not know, can you explain a bit about your Rockar stores?

So we have two stores, one in Bluewater, Kent and the other at Westfield Stratford City, where buyers can carry out the entire transaction.

There are no sales staff, there are ‘product angels’ who don’t sell – they’re not on commission. It looks like an Apple store. What’s happening now is that people are going to these malls and going online. They can see the price of their car, configure their car, and buy the car in the store or at home. So they don’t ever have to actually talk to a salesperson.

We’ve also just launched click2buy, which means that you can buy a car online completely. In one week recently, we had 5,000 people use it to configure a car. We’re not expecting too many sales just yet because it’s still a new idea, but we have already had several people buy a car without even going to see it. So there’s something there.

THE KNOWLEDGE

Model: Hyundai i30 Price: £20,395 Engine: 1.4-litre T-GDI Power (bhp): 138 Max speed (mph): 130 0-60mph: 8.7 seconds MPG (combined): 52.3 Emissions (g/km): 124

So what did Darren make of Hyundai’s latest family hatchback?

What is it?

With this new evolution, the i30 has matured, which I’m told is all part of Hyundai’s plan to keep buyers in the brand long-term by focusing more on substance than pure aesthetics. And for the most part it’s succeeded, with refined engines, excellent safety kit as standard and a smooth and comfortable ride.

What’s under the bonnet?

There are three engine options, with the 1.4-litre petrol expected to be the best-seller in the UK. It’s new to the range and will appeal to 48 | CarDealerMag.co.uk

people who do a mixture of city and motorway driving – with 138bhp and 52.3mpg (51.4 for the auto) running costs should be low.

What’s the spec like?

Straight out of the box, the i30 comes with autonomous emergency braking with a front collision warning system, lane-keeping assistance, high beam assist and sensors that can tell a drowsy driver to take a break. Optional equipment includes blind-spot detection, rear cross-traffic alert, speed limit reader and adaptive cruise control.

What’s it like to drive?

The i30 isn’t going to win any awards for its thrilling driving experience, but it does everything well enough.

What do the press think?

CarBuyer said: ‘The Hyundai i30 is a genuinely impressive motorway cruiser, but it’s a shame tighter roads reveal shortcomings.

What do we think?

The Hyundai i30 is a great effort from a manufacturer that’s still young in this industry.

TARGET BUYERS: Young families looking for good value for money away from the obvious German hatchbacks.

THE RIVALS: Ford Focus, Volkswagen Golf, Vauxhall Astra.

KEY SELLING POINTS: 1. Value for money.

2. 1.0 engine.

3. Capacious boot.

DEAL CLINCHER: Quiet and comfortable to drive around town and has low running costs.

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CarDealerMag.co.uk | 49

FORECOURT.

Kia Rio THE KNOWLEDGE Model: Kia Rio 1.0

T-GDi ‘First Edition’ Base price: £17,445 Price as tested: £17,445 Engine tested: 1.0 T-GDi

three-cylinder petrol Power (bhp): 118 Torque (Nm): 232 Max speed (mph): 118 0-60mph: 9.8 seconds MPG (combined): 60.1 Emissions (g/km): 107 TARGET BUYERS: Urban dwellers in need of a small, yet practical city car.

THE RIVALS: Ford Fiesta, Hyundai i20, Citroen C3.

KEY SELLING POINTS: 1. Solid build quality.

2. Kia’s seven-year warranty.

3. Competitive pricing.

DEAL CLINCHER: With a decent drive, solid build quality and that seven-year warranty, the new Kia Rio is an incredibly rational choice as far as new cars go.

‘We have a much more serious contender in the B segment now.’

Kia commercial director Simon Hetherington chatted to Simon Davis about the latest iteration of the supermini How many units is Kia expecting to sell of the new Rio in the UK? About 11,000 to 12,000 a year, which would be a significant growth over the current model, but relatively modest aspirations for such a big segment in the market.

What do you think will attract people to buy it over its rivals?

I think it will be the combination of the package that we have in terms of the looks, the increased interior space, and the significant change in the level of interior quality. Of course, our seven-year warranty will be part of its appeal as well. It’s a very compelling all-round package and coupled with a lot of new technology in there as well, we have a much more serious contender in the B segment than we’ve ever had before.

Will new Rio be able to compete against new Fiesta when that car is launched later this year?

We’re very proud of what we can offer and we’re one of the fastest-growing brands in the UK. The combination of the product, the experience and our seven-year warranty makes it a bigger decision for the customer than just comparing one product against another. I’m not hugely familiar with the new Fiesta, so I couldn’t talk specifically about that. We feel we are much better placed with the new model to increase our share of the market.

We’re not saying this is going to be the top seller in the segment or anything like that though.

Are you concerned that Brexit might affect sales in the UK in the next few years?

We are in very uncertain times and I think it

makes any planning and understanding of what’s going on in the market more difficult than it’s been for a long while. That’s not just down to Brexit, there is a number of factors. There’s the change in the exchange rate, the impact that has on vehicle pricing, even the changes to VED – all of these will be dynamics that affect the market and affect consumers. We have a lot of reasons to be confident though – look at our record of recent growth!

Have your dealers expressed any concerns about this uncertainty?

No. Our dealers share the same uncertainty as everyone else, so none of us has the ability to see the future. The Kia dealer network is fairly supportive of the brand, you see that in dealer attitude rankings. We came second in the most recent NFDA survey. Our dealers made a record level of profit in 2016, a 1.6 per cent return on sales for the average dealer. They’re in a good place and across our network, we see dealers expanding and investing for future growth.

They’ve had a sight of the new investment in products. Rio is the start of it. We have new Picanto coming in just a few months. I think everyone is excited by what they’ve seen of Stinger, coming later in the year as well. So, there’s a huge amount to be positive about.

How have dealers reacted to the new Rio? Are they impressed?

They’re very excited. A lot of them feel that it’s another sign of Kia becoming a bit more grown up. I hesitate to say premium, but the interior quality of the product is a real step forward.

So what did Simon make of the new car when he got behind the wheel?

What is it?

As Kia’s best-selling car globally, the South Korean manufacturer has high hopes for the new fourth-generation Rio. The popular supermini now boasts a more grown-up aesthetic, including Kia’s signature ‘tiger nose’ grille that will also appear on the hotly anticipated Stinger GT, a revised engine range that includes the firm’s 1.0-litre T-GDi petrol unit (which is being offered for the first time in the Rio) and greater connectivity features, to name but a few updates.

What’s under the bonnet?

The new Rio is available with a selection of three petrol engines and one diesel engine. At launch, we tested the 1.0-litre T-GDi petrol powerplant 50 | CarDealerMag.co.uk

in both 99bhp and 118bhp guises, as well as the 1.4-litre CRDi diesel in the 89bhp state of tune.

Of the three tested, our pick would likely be the 1.0-litre petrol with 99bhp and the five-speed manual gearbox. The difference in performance between this and the 118bhp unit is negligible, it has a claimed economy figure of 62.8mpg and CO2 emissions stand at 102g/km. As the 118bhp unit is only available on the First Edition Rios, the less-powerful petrol is also far more affordable, with prices starting at £14,545.

What’s the spec like?

Customers will be able to choose from four levels of specification, logically named ‘1’, ‘2’ and ‘3’.

Prices for the entry-level 1-specification cars start at £11,995, while the top-level 3 models start at £16,295. At launch, Kia will also offer the Rio in a limited run, ‘First Edition’ specification, which gains features such as 17-inch alloys, keyless entry and LED rear lights. It also features a more powerful, 118bhp version of the 1.0-litre T-GDi engine. First Edition cars cost £17,445.

Flagship First

Handsome exterior

The new Rio can certainly hold its own against the likes of its more premium European rivals.

Well-built interior

Despite the presence of some cheap and nasty plastics, it’s of sound quality inside.

Refined engine range

All of these engines were impressively refined, with no harsh or horrible noises making their way into the cabin.

Edition cars feature a sporty red and black two-tone colour scheme, leather seats and a seven-inch touchscreen infotainment system that dominates the centre of the dash. Build quality is sound, and while there are a few smatterings of cheap, horrible plastics around the place, it’s largely a tidy place to sit.

What’s it like to drive?

While the new Rio may not be as fun or exciting to drive as the current Fiesta, it certainly makes a solid case for itself. On the road, it is incredibly tidy. A new suspension set-up and stiffer body lend themselves to greater composure through the corners, without ruining the ride on uneven surfaces. In fact, the Rio deals with the often

shocking British road network remarkably well.

Both of the 1.0-litre T-GDi engines that we tested were punchy and responsive, and are more than capable of getting the car up to speed in a fashionable manner. An added bonus is the fact they are both impressively quiet at motorway cruising speeds, too. Well done, Kia. Another aspect of the Rio that Kia has really nailed is the controls. The manual gearboxes are slick and precise, while the steering set-up offers a pleasing combination of weight and feel.

What do the press think?

The Daily Telegraph said: ‘The Kia Rio might not be the most fun car to drive in its class, or as comfortable as some rivals, but it scores well in

most other areas, whether it’s in the space on offer, the low running costs, excellent reliability record, or value for money.’ Auto Express weighed in with: ‘In isolation the new Kia Rio is a capable supermini. Unfortunately, it’s entering a market with many excellent competitors that beat it in virtually every area, so it’s a tough one to recommend.’

What do we think?

All up, the new Kia Rio is a competent car. It certainly won’t put a smile on your face in the same way a Fiesta might, and it can’t compete with the likes of the Honda Jazz in terms of practicality, but it gets the job of being a car you can depend on done with ease.

CarDealerMag.co.uk | 51

FORECOURT.

Honda Civic

Honda UK managing director Dave Hodgetts gives Jack Evans the lowdown on the new hatchback...

How important is this new Civic to the Honda brand?

The Civic has been the mainstay of the Honda product line-up across the world for more than 40 years now and this new incarnation is the 10th generation that will continue to strengthen the Honda model range in the UK. Globally, sales average around 620,000 a year in more than 170 countries. Not only is the new Civic the result of the largest single model development programme in Honda’s history, with a third of all Honda research and development personnel working on the new Civic family, but Honda has invested a further £200m in the manufacturing plant in Swindon to turn the factory into the global production hub for the new five-door hatchback Civic. Roughly 40 per cent of all Civics made at the factory will be exported to the US – the first time in over a decade that Swindon has exported to that market.

How important are performance cars (eg, the Civic Type R) to the UK market?

Across Europe, Honda experienced rapid sales

growth in 2016 – we were the fastest growing mainstream manufacturer last year. The year before, we relaunched our entire range with a wholly refreshed line-up of cars. However, the brand profile was raised significantly by the launch of the performance version of the Civic – the Type R – and all-new Honda NSX supercar, both of which have gone on to win major awards. And while we will sell relatively small numbers of both in the UK, they have both played a significant part in raising awareness of Honda in general and will continue to do so.

Will hybrid technology play a future role in the Civic?

We have no plans for a hybrid version of the new Civic. The new 129PS and 182PS turbocharged petrol engines launched with the car have improved fuel economy, weigh less, and have higher thermal efficiency and improved torque in the low and mid ranges than the outgoing engine, From a global hybrid strategy, Honda will widen its offerings of electrified powertrains in

line with the direction our president, Hachigosan, gave recently. We have a target of 66 per cent of global sales to be electrified by 2030, and we have hybrid, PHEV, BEV and FCV all under consideration within Honda at present.

What does the future hold for Honda?

2017 is the year of the Civic when it comes to cars for Honda. The new car will be in dealerships from late March and the new race-car-for-the-road, the Civic Type R, will launch later on this year.

Beyond that, there is the new version of the CR-V, which is already on sale in the US. This year also sees Honda celebrate 25 years of both Type R and Fireblade. Let’s not forget that Honda is not just about cars, as we are the world’s largest engine manufacturer, making everything from generators to jets. Honda’s recent profit announcement has shown that consolidated operating profit for the fiscal nine months to the end of December last year was up 23.9 per cent compared with the same period last year. The future holds success!

THE KNOWLEDGE Model: Honda Civic 1.0 SR Price (as tested): £20,180 Engine (as tested): 1.0-litre

turbocharged Power (bhp): 127 Torque (Nm): 200 Max speed (mph): 124 0-60mph: 10.7 seconds MPG (combined): 55.4 Emissions (g/km): 106 TARGET BUYERS: Those who want a sporty drive but don’t want to pay the price in economy or refinement.

THE RIVALS: Volkswagen Golf, Seat Leon, Ford Focus.

KEY SELLING POINTS: 1. Offers a compelling drive.

2. Solid interior build quality.

3. Impressive petrol engines.

DEAL CLINCHER: The Civic is a small hatch that is like a sports car.

52 | CarDealerMag.co.uk

...and Jack gets the chance to try it for himself What is it?

Having sold in excellent numbers, the previous-generation car has made way for an all-new model with a more saloon-like hatchback shape.

What’s under the bonnet?

There’s a 1.0-litre turbocharged petrol producing 127bhp, emitting 106g/km CO2 and returning a claimed 55.4mpg combined. There’s also a 1.5-litre turbocharged petrol – this puts out 180bhp and 133g/km CO2 returning around 46.3mpg. Both come with a six-speed manual or CVT automatic.

What’s the spec like?

The Honda Civic with a 1.0-litre engine and in SR trim gives you 17-inch wheels as standard as well as climate control, automatic lights and wipers plus a larger touchscreen.

For the first time in a Civic, Apple CarPlay has been added, along with Android Auto.

What’s it like to drive?

Around town the ride is extremely composed, making it incredibly relaxing. Add a bit more speed to the mix and you quickly find it has a huge amount of talent dynamically.

What do the press think?

Auto Express said: ‘The Honda Civic is better than ever, although its limited rear space and dated infotainment system let it down.’ Parkers said: ‘Civic raises its game, but loses some of the old car’s charm.’

What do we think?

The Civic is certainly a compelling package. It drives well, but remains relaxing and well composed on all manner of surfaces. The infotainment could do with tweaking, but for the most part the new Civic hits the nail on the head.

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CarDealerMag.co.uk | 53

FORECOURT.

Mazda MX-5 RF THE KNOWLEDGE Model: Mazda MX-5 RF 2.0

Sport Nav Price (as tested): £26,795 Engine (as tested): 2.0-litre Power (bhp): 158 Torque (Nm): 200 Max speed (mph): 134 0-60mph: 7.2 seconds MPG (combined): 40.9 Emissions (g/km): 161

Jeremy Thomson, MD of Mazda Motors UK Ltd, has high hopes for the retractable hard top, finds Andrew Evans

DEAL CLINCHER: Likely to become the default entry-level sports car of the next decade.

How important is the MX-5 to the Mazda brand?

In 2001, when Mazda UK first started as a wholly owned national sales company, the only thing Mazda was known for at that time was the MX-5.

It still remains for most consumers the car they would most easily and readily associate with the brand – and that’s great because in many ways it’s our halo car in terms of delivering on driving fun and being a little different from the mainstream manufacturers’ approach to making cars. For a small company to invest in a standalone platform for a small roadster is extraordinary, and that platform has sold more than a million units globally, with more than 120,000 in the UK. It gives a lot of personality to the Mazda brand that’s beneficial to the rest of the product range.

From the UK’s perspective, the MX-5 is even more important. It started as a reaction to the demise of the great British roadster. For a while, we were neck-and-neck with MGB in terms of sales until that brand died, so the MX-5 has had to blaze a trail largely on its own. The UK represents 12 per cent of global MX-5 sales, so you can see the significance of the UK.

‘In many ways the MX-5 is our halo car in terms of delivering on driving fun and being a little different from the mainstream.’

Where does the RF fit in?

What RF has the potential to deliver for us is significant. We’re expecting about a 75 per cent mix of RF and 25 per cent convertible, so it’s crucial to the brand, crucial to the dealer network and crucial to brand awareness. When you look at the design of the RF roof mechanism – how everything folds away in this incredible origami-style arrangement to leave a stunning outline with the roof down with absolutely zero

TARGET BUYERS: More mature drivers who like the MX-5 but would find a soft top difficult to live with.

THE RIVALS: Toyota GT86, Audi TT, Fiat 124 Spider.

KEY SELLING POINTS: 1. Stunning coupe-style looks.

2. Handling is as good as ever.

3. No soft-top security worries.

impact on boot space – this would, for most manufacturers, be the first thing to be sacrificed.

The new roof adds only 45kg to the car’s weight.

Key to that is the use of three different materials.

We have a little bit of steel to give torsional rigidity across the roof in the lip that remains when the roof is down, the main part of the roof that folds away is aluminium, so it’s lightweight but still strong, and the rear buttresses are made of a composite plastic that gives you the ability to make some really beautiful shapes without steel pressing and is lightweight. We’re launching the car in the English winter, and you do appreciate the heated seats and hot air on your fingertips – and I think that’s where RF wins. You don’t get the swirl of wind around your head, so you can still enjoy open-air motoring!

Do you think that as the car matures, the owners are maturing too?

MX-5 probably has the widest age mix of any car we have, because it really does have an incredibly broad appeal. MX-5 RF is likely to appeal to people who would have considered a more expensive, more premium brand car, but recognise that it delivers on every front but at a much more affordable level.

Is that part of the rationale behind the automatic option?

While it’s probably not the choice for everybody in an MX-5, it does widen the owner base to those who need or want an auto, particularly in the urban environment. I don’t think it’ll be a huge part of the mix, but it’ll widen the appeal.

Andrew delivers his verdict after getting behind the wheel of the new convertible...

What is it?

The MX-5 RF adds a powered hard-top roof to the ever-popular convertible car. The electric roof folds away, or rises into place, in 13 seconds at speeds of up to six miles an hour, but notably it’s only the centre section of the roof that vanishes. This targa-style arrangement leaves the RF looking like a small sports coupe whether the roof is open or shut. Mazda has updated the MX-5 to fit in with its new ‘KODO’ styling and it’s very effective, giving the car a lot of kerb appeal. This is only enhanced by the styling of the RF, with fabulous buttresses on the rear section of the roof, which gives the car more of a coupe look.

54 | CarDealerMag.co.uk

What’s under the bonnet?

The RF comes with the same range of engine options as the regular MX-5, packing 1.5-litre and 2.0-litre versions of the Mazda SkyActiv-G engine.

The 1.5 version has 129bhp and 150Nm of torque – about the same as the original MX-5 from 1989 – while the 2.0-litre has 158bhp and a more useful 200Nm. Both engines are paired to a sixspeed manual, although

you can order the 2.0-litre Sport Nav with a sixspeed automatic gearbox – the first auto in an MX-5 since the Mk2, 15 years ago.

What’s the spec like?

Generally, the MX-5 is good value for money. For the base price of our £25,695 test car you get probably every toy you could ever want in an MX5, including heated leather seats, keyless entry, rear parking sensors, LED adaptive headlights and the infotainment system, which is standard across the range and brings navigation, Bluetooth and DAB radio. The very clever roof effectively sets you back £2,000 compared with the soft-top model.

Retractable Fastback

Lightweight folding targa top gives the RF a coupe profile whether open or closed.

Automatic option

Stiffer suspension

RF owners can have a six-speed auto gearbox in an MX-5 for the first time in 15 years.

To compensate for the 45kg weight increase, the RF gets slightly stiffer suspension settings.

What’s it like to drive?

There’s no question about it, the MX-5 is a brilliant little car if you really like driving. In twolitre form it’s happy to sit in gear and amble along if you wish, but if you want to tackle a good driving road you’ll find a willing companion. The RF roof adds around 45kg to the car’s relatively low kerb weight, which takes a tenth of a second off the 0-60mph time but doesn’t seem to affect the actual driving experience at all. It does affect visibility, though. Thanks to the rear roof section remaining in place whether the roof is open or closed, over-the-shoulder visibility is on the weak side, and you’ll find that if you need to look either side at a junction there’s bodywork in the way.

This can make Y-shaped junctions particularly a

matter of guesswork and hope. Parking the RF is similarly less comfortable than the soft-top MX-5, and if you pick the SE-L Nav grade you won’t get parking sensors either. Luckily, it’s a small car and the turning circle is relatively compact.

One curious factor is the wind noise. With the roof up there’s a constant swirl of sound from the rear roof section at anything above 45mph.

With the roof down it’s nothing short of a bellow, and at motorway speeds you’ll need to learn sign language to communicate with a passenger – just like the original MX-5! It’s very much not a family car, it has to be said. It only has two seats for a start, which means that you’re certainly going to have to leave some of the family behind. The 127-litre boot isn’t conducive to family life either,

though if you’re creative you can probably fit a weekly shop in it.

What do the press think?

Top Gear says: ‘The six-speed gearshift remains a peach, and the whole car thrives on being worked hard’, while What Car? says: ‘The RF gives you the sense of being securely cocooned.’

What do we think?

The RF doesn’t quite hit the mark as a more refined MX-5, thanks to the obvious wind noise at higher speeds, but it is calmer around town and still an astonishingly well-sorted drive on the open road. The stunning good looks might sell the car without any other consideration.

CarDealerMag.co.uk | 55

FEATURE.

THE SUPER

POWERS Back in 2012 Audi bought Ducati, and a beautiful but rather unlikely pairing began. Now, as they’re coming up to five years together, is the relationship just as sweet? Rebecca Chaplin looks at the story so far.

D

ucati has just come to the end of its 90th-anniversary year, but it’s still a relative babe in arms compared with its now-parent company Audi. With a shared passion for creating performance vehicles – albeit with some having more wheels than others – it would appear to be a match made in heaven. But with a gaggle of unruly Italians now under its careful watch, has Audi taken on 56 | CarDealerMag.co.uk

more than it can handle or has it successfully transformed their fortunes?

Ducati, which makes the Panigale 1299 S you see above head-to-head with an Audi R8 V10, is quite rightly known for being the Ferrari of the motorcycle world. Audi has always had a far broader appeal, with cars tailored to every market – the perfect recipe for keeping loyal customers locked into the brand year after year.

That doesn’t mean there aren’t some real treats at the performance end of the range, though, so we united the supercar and superbike on track at Rockingham Motor Speedway in Northamptonshire.

With an array of accolades for producing some of the fastest bikes on the planet, racing trophies and its pure-bred Italian heritage, it’s easy to see why Ducati’s two-wheeled machines are

PHOTOGRAPHY: JONNY FLEETWOOD

so desirable, not only to customers but also to the former chairman of the Volkswagen Group, Ferdinand Piëch.

While overlord of VW, he’d had the chance in 1984 to buy Ducati from the Italian government and said it always bothered him that he had missed out. When the opportunity arose again, he wasn’t going to let it pass him by.

Piëch and the Volkswagen Group weren’t the

first to approach the motorcycle brand. In fact, Ducati has got about quite a bit in its 91 years of producing bikes and times haven’t always been rosy. Back in 1985, it was bought by fellow Italian motorcycle manufacturer Cagiva. Things weren’t going too well for Ducati back then and it was sold for a steal at just $5 million. It was a sign of the changing form at the bike brand, as Texas Pacific Group (TPG) bought a 51 per cent share

only 11 years later for a whopping $325m.

The investment company went on to buy Ducati in its entirety before putting it on the stock market and then selling 65 per cent of its shares. However, in 2006 it returned to Italian ownership when Investindustrial Holdings purchased TPG’s majority stake in the company. It was at this point, only 12 years ago, that Ducati suffered a severe CarDealerMag.co.uk | 57

FEATURE. DUCATI PANIGALE 1299 S

DUCATI’S Panigale badge is revered among motorcyclists. The namesake of the Italian marque’s hometown evokes images of red rockets and sounds of screaming V-twins.

The 1299 S is the most powerful of the Panigale family, making 205hp at 10,500rpm and reaching peak torque of 145Nm at 8,750rpm. Introduced in 2015, it has captured the imagination of wannabe racers worldwide, with its huge power and intuitive rider aids.

At launch, motorcyclists were blown away by the model’s capabilities. During a try-out in Mugello, Ducati test rider Alessandro Valia came within four seconds of a time set

by MotoGP champion Nicky Hayden aboard a racing-spec 1199 Superbike in 2013.

For a road-going model complete with headlights, indicators, and OEspec suspension, this was an incredible achievement and one that landed the 1299 S well and truly in the spotlight.

The 1299 S is still a class leader.

Admittedly, with a claimed top speed of 190mph it may not be the fastest production bike around – in fact, its lesserpowered sibling the Panigale 1199 R exceeds it in that respect – but it is one of the finest.

At 179.5kg, it’s light and, thanks to an aerodynamic design, it’s slim, too. Racederived footpegs and seat push the rider forward, but in a manner that makes it a lot more comfortable than the 1199.

Meanwhile, the extensive electronics package includes an Inertial Measurement Unit (IMU), which calculates the bike’s angle of roll and pitch, adjusting the ABS and electronic Öhlins suspension accordingly.

The 1299 S is a bike built to go fast, and riding it slowly feels alien. That said, with a torque hike low in the rev range, it doesn’t have to be ragged to be ridden.

The Knowledge Ducati Panigale 1299 S Engine: 1285cc Superquadro L-Twin Power (bhp): 202 0-60mph: 3.33 seconds Max speed (mph): 190 MPG: 35 Price: £20,795 58 | CarDealerMag.co.uk

The Audi R8 V10 is the perfect everyday supercar for the UK’s driving conditions

He’d had the chance in 1984 to buy Ducati from the Italian government and said it always bothered him that he had missed out. financial loss. Sales of its bikes were down 16 per cent in the UK, contributing to a global loss of £28.5m. Around the world, a major drop in sales for the Italian motorbike manufacturer was also felt, apart from in Japan, where sales fell by only 5.5 per cent, and in the US, where sales were up by an impressive 25 per cent.

The previous year hadn’t been great, but the net loss of only £3.5m it suffered was a comparatively small hit for a company that was shifting fewer than 40,000 units a year.

It was something felt across the board at the time – for both car and motorcycle brands. In the bike sector, sales were up by just one per cent in 2005, while car sales had dropped by 6.6 per cent,

but the results at Ducati were far from this.

It was in March 2006 that Investindustrial acquired 29.9 per cent of the company, before increasing its shareholding to 100 per cent at the end of 2008.

Back in the hands of an Italian firm, things did improve for Ducati, however. A new focus on high-end motorcycles to improve margins and reducing costs paid off.

This was its last home before Audi AG bought Ducati, via its subsidiary Lamborghini, at a cost of €860m – about £708m – in 2012.

Yes, there was the slightly confusing fact at the time that despite Audi announcing proudly that it had bought

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FEATURE.

the bike maker, actually it was the company that it owned that had bought it. It’s not unusual at Volkswagen Group, as we know. VW owns Audi and it purchased Lamborghini. Well, in this case, Lamborghini purchased Ducati.

This deal with Ducati echoed some of the issues faced during the early days of Lamborghini’s new ownership. It was an opportunity for Audi to improve its luxury image but also a chance to turn around a car marque that was floundering. In 1998, the year of its acquisition, the supercar manufacturer sold 200 cars. Fine if you want exclusivity, but not quite enough to keep you in the black.

However, after 10 years under Audi’s wing, the brand was selling more than 10 times that figure.

Last year, though, Lamborghini achieved another sales record with 2,000 units surpassed in the first six months of the year, up seven per cent on 2015.

It was an incredible turnaround for the brand.

It also recorded that Aventador deliveries totalled 643 units in 2016, while in the first 58 months after market introduction its sales were up by 127 per cent compared with its predecessor, the Murciélago. So it has good form, but what did Audi really want with Ducati? The £708m purchase price was a drop in the ocean for the carmaker, and producing about 40,000 bikes is equally insignificant.

It’s fair to say that 2012 was a very different time for Audi and Ducati.

However, that could also be said about the rest of the automotive industry, the economy and the world generally.

Audi had just celebrated a record year and record profits of €5.3bn. Ducati was also experiencing an extremely lucrative time, with profit up 16 per cent year-on-year and 44,102 motorcycles sold that year. Piëch might have been frustrated that he’d missed out, but it was a far more profitable company that he and Audi had ended up getting.

The decision was more about broadening its portfolio, though, as there was speculation at the time that the bike company offered no real business advantage for the German carmaker. It did give a further opportunity to compete with long-term rival BMW but, apart from on the race track, Ducati remains far behind in terms of sales.

The following year, in the first six months alone Ducati continued to grow and surpassed 26,000 motorcycle deliveries, and by the end of 2013 it had racked up 44,287 sales.

The bike brand would continue to prove itself with record-breaking figures, and the relationship remained sweet.

It’s been rumoured again and again that Volkswagen may be forced to sell some of its subsidiaries as a result of the ‘Dieselgate’ settlements in the US. However, the fact that these have grown to far more than first estimated – both the number and the cost of claims in the UK have now increased, with a far more substantial chance of winning – does throw 60 | CarDealerMag.co.uk

‘This growth demonstrates the strength of both range and brand and, above all, the solid performance of the global sales network.’

The Ducati Panigale 1299 S is the most powerful bike in its family, with a top speed of 190mph things into uncertainty again. However, the boss of Audi AG, Rupert Stadler, has expressed that ‘Ducati is not for sale’.

It’s not at all surprising when you take a look at Ducati’s financial results for last year. Despite the group experiencing this period of uncertainty, it has been another record-breaker for the bike brand and its parent car company. Deliveries for Audi rose from 1.8m to 1.87m globally, and in the UK alone they were up 6.4 per cent to 177,566.

In comparison, Ducati really does seem like a drop in the ocean, with 55,451 motorcycles delivered globally counting as less than a third of Audi’s vehicle sales in the UK alone. The business has continued to grow, though, with deliveries up 1.2 per cent on 2015. This is down to additions to the brand, according to the manufacturer, with the extended Multistrada adventure bike family seeing an impressive 16 per cent increase in sales.

‘Ending the year of our 90th anniversary with yet another record is a source of immense pride and satisfaction’, said Claudio Domenicali, CEO of Ducati Motor Holding.

‘2016 was the seventh consecutive growth year for Ducati, clearly confirming the soundness of the group’s strategy and skills.’

Global sales and marketing director Andrea Buzzoni added: ‘In addition to a new sales record, 2016 saw consolidation of the considerable increase in volumes achieved in 2015, thanks also to the introduction of the Scrambler brand.

‘This growth demonstrates the strength of both range and brand and, above all, the solid performance of the global sales network.

‘Results on the Italian market have been significant. Thanks to 20 per cent growth in 2016 – and an excellent 84 per cent over the two-year period 2015/2016 – Italy is again the second most

AUDI R8 V10

Öhlins suspension and Brembo brakes keep this high-powered bike under control important market, after the USA and ahead of Germany.’ When it comes to presence at dealer level, the two brands have stayed at arm’s length.

There aren’t any joint dealerships in the UK and, much like with Lamborghini, they have kept their identities strictly separate.

Behind the scenes they may have the shared resources, development and board members, but when it comes to their visible brands it would be hard to see the connection.

However, with these shared elements, Audi has managed to transform these brands into roaring successes that continue to grow year-on-year.

We could debate whether owning these smaller subsidiaries will be a benefit or hindrance, depending on the outcome of the ‘Dieselgate’ court cases, but it would be far more fun to debate whether the Volkswagen Group anticipated that there would be the uptake of

motorcycles that we’ve seen over the past few years. The number of cars sold each year is climbing, but in response to this influx in road use many have opted for a traffic-jam-beating motorcycle or scooter. As Steve Kenward, CEO of the Motorcycle Industry Association, said in response to 2016’s results: ‘We factored an endof-year bulge into annual predictions for 2016 but anticipate similar sales for 2017, with between 120,000 and 130,000 new registrations.

‘Like other industries, current predictions will depend on how Brexit affects consumer confidence, but a combination of high public transport costs and stressful driving conditions is likely to induce more people to opt for a powered two-wheeler during the next 12 months.’

Perhaps Audi’s acquisition was more than just an addition to its trophy cabinet, but also a very clever way of future-proofing its business. [CD]

THERE’S something a little bit special about the R8 right from the moment you see it. The first model was something of a soft-focus supercar, all curves and rounded edges, but the new car is a 4K symphony of hard creases and sharp angles.

The past decade has seen manufacturers chasing emissions targets by making engines smaller and applying turbochargers, so that cars make little power during emissions tests but produce plenty of it in the real world. Audi hasn’t taken that path with the R8, though. What it’s done instead is endow it with a masterpiece of an engine – a 532bhp, 5.2-litre V10 that you can also find in sister brand Lamborghini’s Huracan.

Free of such concerns as spooling up a turbocharger, the V10 will howl up towards an 8,500rpm redline almost as if it’s not encumbered by any weight at all, even though the car weighs 1,595kg.

Nought to 60mph comes up in just over three seconds, and it won’t stop accelerating until you’re knocking on the door of 200mph.

Impressive as these figures are, it’s the on-road performance that settles it. Audi fits a seven-speed dual clutch automatic and its quattro four-wheel-drive system as standard, which means that, judging its two-metre width aside, the R8 is never a challenge or chore to drive at any speed. In the R8 you’ll find what may be one of the quickest point-to-point vehicles today, as the four-wheel-drive system keeps the R8 between the lines, offering as much grip as the car will ever need in almost any weather.

Yet it ambles around town without complaint too, and with toys such as the Audi Virtual Cockpit, which displays all driving, navigation and entertainment information in a vast, 12-inch screen in place of the traditional instrument dials, it’s even relaxing. Nor does it feel pent up, yearning for the chance to stretch its legs again.

The R8 is every bit the perfect everyday supercar for the UK’s roads and weather.

The Knowledge Audi R8 V10

Engine: Power: 0-60mph: Top speed (mph): MPG (combined): Emissions (g/km): Price:

5.2-litre V10 petrol 532bhp, 540Nm 3.3 seconds 199 24.8 272 £122,450

CarDealerMag.co.uk | 61

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Bugatti Gives Insight Into Chiron As Production Begins

Lamborghini Joins SUV Bandwagon With Urus

Bugatti’s new £1.9 million Chiron is a stunner.

The VW-owned French manufacturer has now started building it at its Molsheim plant, and given people some exclusive insight.

Go online to: bit.ly/2lHwcYj

Lamborghini is known for making some of the prettiest and fastest supercars, so their new car would follow suit, right? Well not quite as now Lambo have introduced the Urus, an SUV. Go online to: bit.ly/2kp2beN

Alfa Romeo Should Make This For Everyone’s Happiness

Rory Reid Launches New Top Gear Online Road Trip Series

Ignoring the countless issues that have plagued Alfa Romeo for too long, nobody can deny their beauty. Italian designer Antonio Paglia has created what he calls the Alfa Romeo C18.

Go online to: bit.ly/2kpgCPK

Top Gear is definitely holding its own – despite the excitement around The Grand Tour. Now fans of the show have been treated to a spin-off web series presented by Rory Reid.

Go online to: bit.ly/2b8mtgY

Rare Aston Martin One-77 On Sale In The States

Are You Looking For A Little Romance? On Yer Bike!

Cars like the Aston Martin One-77 can be so rare and expensive that they are untraceable to even the most determined of purchasers. One has emerged on sale in the States, however.

Go online to: bit.ly/2kD4KL0

Valentine’s Day may have come and gone for another year but if you’re a lonely biker, why not try ‘Single Cylinders’? It’s a speed-dating event with a bit of a mechanical twist.

Go online to: bit.ly/2lvaMSg

Clunes Behaves Badly By Parking In Motorcycle Bay

Here Are The 11 Most Beautiful Race Tracks In The World

Martin Clunes is no stranger to the average TV consumer, but recent footage he has starred in hasn’t been as well-received as his shows. Click on the link and you’ll see what we mean.

Go online to: bit.ly/2lcn010

Nothing gets a motorist’s blood pumping like the sight of a great racetrack. So we’ve listed 11 of the most beautiful racetracks… in the world.

Click on the link below and enjoy.

Go online to: bit.ly/2kk62yo CarDealerMag.co.uk | 63

FOCUS ON.

Chartered Trading Standards Institute

More important than ever to be up-to-date with the law CTSI

W: businesscompanion.info T: 01268 582200

T

rading standards experts have been working with the motor industry to get answers to some of the most complained-about issues concerning used car sales.

The guidance follows one of the biggest shakeups of consumer law in a generation, which, among other things, makes clear the exact time customers have to reject cars and gain refunds.

Previously, there was no set timeframe for customers to return cars, leading to thousands of customer complaints and disputes.

Meanwhile, Citizens Advice data has confirmed that used car sales have caused the most consumer problems of the last five years – with 57,351 general issues last year alone.

The short guide is published today on the free government-backed businesscompanion.info website which is aimed at helping all businesses understand their legal responsibilities under trading standards law.

Traders are urged to get to grips with the website and, in particular, the guidance on the Consumer Rights Act. The Act places several key responsibilities on traders on issues such as repairs, refunds and even digital content – found in on-board entertainment systems and sat navs.

The website businesscompanion.info is delivered and managed by experts at the Chartered Trading Standards Institute (CTSI) so people can be sure the advice it contains is practical, accurate and always up-to-date.

Adrian Simpson, CTSI’s business education and consumer codes expert, said: ‘It might feel as

TOP TIPS Car dealers can protect themselves from falling foul of the law by: • Having due diligence protocols in place to ensure a vehicle is in a safe and roadworthy condition before being exposed for sale.

• Carrying out pre-expose for sale checks.

Do not rely on the existence of a new MOT certificate as this is not sufficient to prove a safe and roadworthy product.

• Carrying out a documented physical examination of the car as well as office checks.

• Checking to see if the vehicle has any outstanding DVSA safety recalls.

though trading standards law is out to get you but it’s not – it’s there to help create a fair and level playing field to protect consumers and businesses alike.

‘When you get trading standards law right and when you understand your obligations, it saves you time and money and makes it easier to resolve a problem, if things do go wrong.

‘With so many parts of the Consumer Rights Act relevant to car dealers and those who work in the motor industry, it’s more important than ever that businesses get up-to-date with the law.

‘The new guide and the wider information on businesscompanion.info allows businesses to access technical and legal expertise for free, so they can make sure they

• Supplying the purchaser with a copy of the pre-expose check sheet.

It is an offence to give false information or withhold information to a potential buyer that may affect his transactional decision.

Carrying out pre-expose for sale checks not only potentially covers off the safety aspect of a vehicle but also provides an evidence base as to the condition of the vehicle at the time of supply. This could be useful if a consumer decides to make a claim under the new Consumer Rights Act.

are clear on the legislation that affects them.’

Some of the issues that are covered in the guide include: what responsibilities a trader has if a car is faulty and the time limits that apply to both parties; what the law says about when a trader can make repairs to a vehicle that is faulty; and what a trader should do if a consumer claims their final right to reject after initial repairs did not work.

It also provides legal guidance for car dealers who sell goods and services online or over the phone, which can differ from a face-to-face sale.

In addition to being a useful reference in its own right, the guide signposts to other sections of the businesscompanion.info website that many businesses will find useful.

MAINTAINING COMPLIANCE WITH TRADING STANDARDS LAW TRADERS are being reminded about changes in the law surrounding digital content and software and how they come into effect when things like on-board computers and sat navs go wrong.

For the first time, the Consumer Rights Act takes into account contracts made between a trader and consumer in relation to digital content.

The Act clarifies what traders need to do 64 | CarDealerMag.co.uk

if something turns out to be faulty and what responsibilities they have when selling a mixture of goods and digital content, such as a car with computer software.

Sometimes software updates can cause faults and it is difficult to know who is responsible.

Often it can be difficult for car dealers to keep up-to-date with the relevant laws and to understand their legal responsibilities when

things go wrong, but the Business Companion website can help.

The government-backed website provides free, accurate and practical advice on how to comply with the law.

Split into basic, quick and in-depth guides, the website has an easy-to-use search functionality so users can find the relevant information quickly and easily.

CAR CLOCKING

‘‘

When you get trading standards law right and when you understand your obligations it saves you time and money and makes it easier to resolve a problem.

In addition, the Chartered Trading Standards Institute (CTSI) has partnered with online learning specialist Virtual College to create TradeSimple, a range of online e-learning courses suitable for businesses of all sizes.

Businesses in the motor trade can choose from a variety of courses offering jargonfree, step-by-step guidance to important retail legislation.

In particular, the Consumer Rights Act and Trading Fairly courses will provide car dealers with the relevant information on the law and how it affects them.

• Traders who want to remind themselves of the law should go to the Business Companion website and search for ‘used cars’ or ‘Consumer Rights Act’. The website is always updated to reflect any changes in the law.

THE government is exploring whether existing legislation to tackle car clocking, the practice of winding back a car’s mileage for financial gain, is robust enough for the age of digital odometers.

It surrounds confusion on the law which currently states that while the practice itself is lawful, knowingly selling a clocked car without disclosing the fact is in fact a criminal offence.

Industry figures suggest one in 20 cars in the UK have mileage discrepancies and a recent survey found that 57 per cent of consumers are worried about buying a car that has had its mileage altered.

The government has asked interested parties if they think the current legislative provision is enough to tackle the issue of clocking and, if not, to give their reasons.

Civil servants are currently examining the responses.

Car clocking peaked in popularity in the nineties with companies manually fixing the mileages on cars to make them seem newer and boosting their re-sale values.

But with most cars displaying their mileage digitally these days, the activity has adapted to the digital age and made a comeback in recent years.

Last year, a report by The Sun found that around 100 firms in Britain can digitally roll back mileage on a car odometer.

Meanwhile, companies that provide ‘mileage correction’ services could be outlawed in 2018, under EU proposals.

The Local Government Association has called for the ban to be retained under UK laws post-Brexit and is urging they should be brought forward.

The CTSI believes that present legislation does not afford adequate protection from the practice of clocking.

CarDealerMag.co.uk | 65

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FOCUS ON.

Dragon2000

Keep that precious data safe DRAGON2000

I

T: 01327 222333 W: dragon2000.co.uk

t’s likely that you take your business’s security pretty seriously. From vehicles to parts plus expensive equipment and tools, there are a lot of valuable assets on your premises that you’d really miss if they storage accounts, with either default logins used or were taken by thieves. You’ve probably taken steps passwords like ‘password’ or ‘1234’. to prevent such an eventuality, with keysafes, Kelland says: ‘We recommend to each and every padlocks, strong doors, alarms and perimeter business that they consider their exposure to weak fencing all acting as deterrents. passwords internally and, of course, for threats With all of these countermeasures in place to externally. This is stuff that businesses can take care prevent physical theft, it’s remarkable how few of themselves with some planning.’ businesses take the same approach to the But even where there is a password possibility of electronic theft. policy, businesses can be undone by Data is an incredibly valuable other procedural failures. Kelland commodity and should be guarded explains: ‘Over the years, we’ve had as closely as any other asset. all sorts of contact from companies There is also a legal requirement where staff have been dismissed for businesses to keep customer and they’ve been up to all sorts data safe, says Mark Kelland, – such as using other members of commercial manager of Dragon2000. staff’s passwords to disguise what ‘Protecting their own data, which they’ve been doing.

Mark Kelland includes the personal data of their ‘We’ve also heard of issues where customers, should be something that every people have continued to log in or perhaps steal a dealership takes extremely seriously,’ he said. ‘Each company’s data when they’ve left – lists of names business has a legal responsibility to protect the or contacts – because of the company’s failure to personal data of its customers. The Data Protection change passwords regularly. If you’re a Dragon2000 Act is for all to be registered under and ruled by.’ customer and someone leaves, we can block not Businesses found to be in breach of the Data just an IP [internet protocol network address], but Protection Act can find themselves subject to individual machines and users.’ fines of up to £500,000. In 2015, fines by the Information Commissioner’s Office reached more than £2m, with 18 companies subject to sanctions for breaches.

It’s the nature of doing business in the 21st century that some degree of familiarity with information technology is required, but it doesn’t take a computer genius or a significant investment to keep on top of these responsibilities.

Kelland continues: ‘The irony is that some of the most effective steps you can take to protect your data don’t cost thousands of pounds.

‘We’re not talking fancy alarms or security cameras, we’re talking simple common sense regarding who has access to the data and what passwords are used throughout the business.

‘It’s a sad fact, but most companies simply do not have any policy on password security whatsoever.

Most passwords are either commonly shared or just a repeat of the user’s name – making it nice and easy to log in, but also easy for others to guess. The risk from external sources is immense.’

Weak passwords of this type were at the core of infamous ‘hacks’ of celebrity phones and cloud

Many garages and workshops are now offering wifi to their customers as a courtesy while they wait, and this too can be a source of worry for anyone concerned about data security.

Kelland comments: ‘If you are making wifi available for customers, we’d recommend it’s a totally different router and it’s a service that does not go through your main networks. Otherwise, you’re just exposing your network to outside infiltration and eating up bandwidth.

‘If somebody has a trojan on their PC and is using your network, they wouldn’t necessarily know about it. The moment they’re signing in to your wifi, they’re exposing your network to the same viruses and things they may have on their own devices.’

It might sound like a message of doom and gloom for dealerships, but cyber-security need not be all that complicated. It’s essentially a matter of taking care of who can use what, and having a sensible approach to passwords, along with using proper, purchased antivirus software.

Kelland concludes: ‘Being able to prove that you’ve got plans in place protects the business – at least you can demonstrate that you have done everything possible to stop this kind of attack.

‘Let’s be honest, if someone can infiltrate the White House then I don’t think there’s such a thing as totally secure data in this world!’

by Andrew Evans (@snavEwerdnA)

CarDealerMag.co.uk | 67

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O

nline-parts.co.uk launched two years ago, offering one million spare parts for brands such as BMW, BMW Motorrad, Kia, Mitsubishi and Mini that are ordered via its partner companies of Brayleys Oxford and Rybrook Warwick.

It has dozens of free catalogues available at www. oem-catalogs.com for car makes ranging from Abarth to Volvo.

Thanks to the powerful online tool, customers can select and order the suitable parts for their vehicle, helped by graphics as well as searches by chassis number or via the simplified search tree.

And now the Maidenhead-based platform is looking for contract partners with which to work.

Dealers that have multiple brands are especially welcome to apply.

What makes online-parts.co.uk extra special?

A car consists of up to 90,000 parts, all of which are available at www.online-parts.co.uk, and we work closely with dealers so that they can easily and quickly adapt to our business model and can professionally handle the mail delivery procedures within the European Union.

We mainly supply private customers as well as small and medium-sized garages, which can all find themselves pushed for time during the day to get the spare parts themselves.

So, how is it all done? Our dealers mostly wait until closing time, then order online simply, safely and securely the parts that they need. They can then relax, happy in the knowledge that they will be delivered quickly.

Moreover, once registered, our customers can use the system anywhere. What’s more, there are no registration fees – even the catalogues are free.

The online-parts.co.uk platform is part of a family company that stretches back five generations, and operations director Andreas Hoevel described how he came to develop it, saying: ‘Our company has been dealing with all kinds of transport since 1852, starting with coaches, selling its first car in 1903.

‘I trained and graduated as a trader and automotive locksmith, and ran a dealership representing four makes for many years.

‘Because of this, I know exactly what the daily requirements of an auto workshop are, and my experience means I can put myself in the position 68 | CarDealerMag.co.uk

Tom Leach, left, and Anthony Bradshaw of the Rybrook parts team deal with plenty of packages every day

Brayleys parts manager Gary Ferguson counts on online-parts.co.uk of my customers as well as my entire management.

‘Procurement possibilities for genuine spare parts in the mail delivery business were previously restricted to a few large manufacturers and were only made possible within a country.’ He added: Now we supply to all of Europe, within the scope of the block exemption regulation and the respective dealership contract rules of our partners.’

What is the future of online-parts.co.uk?

‘We are aiming to open further target groups such as car parks, municipalities, and the like,’ said Hoevel.

‘We will help our partners more on pushing traffic in slow-selling parts for a reasonable price by creating special advertising and marketing.

‘The offer for genuine accessories is not yet

optimally presented, but we are working on it.

‘From 2018 onwards, our shop catalogue system will also be set at a monthly fixed rate to the dealers’ own websites.’

He added: ‘The fascination and interest in our business concept has spread from other countries.

We are already represented in Germany as well as France, where the ranges that we have on offer are proving to be a great success.’

For more details, contact marketing and contract director Princess Lean Banias on email via Princess.Banias@online-parts.co.uk Are you interested in working with us? Sign up at https://www.online-parts.co.uk/oem-catalogs/ partners-wanted_20.html

The monthly magazine for garage professionals For advertising and subscription inquiries contact Jon Hickey Sales manager j.hickey@blackballmedia.co.uk Tom Adams Account manager tom.adams@blackballmedia.co.uk

Or call 023 9252 2434

@_WorkshopMag

@workshopmag

workshopmagazine.co.uk

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

In, out, in, out – all thanks to chargeback system Q

We sold a car to a customer who paid by debit card. He wrote to us a month later complaining of a suspected issue with the torque converter. We asked him to bring the car back to us for inspection. He did not return the car, but instigated a chargeback and the money he had paid – £3,500 – was removed from our account. We complained to our merchant services firm and the money was recredited to our account. The customer then said he was willing to allow us an inspection of the car.

However, the customer backtracked, refusing once again to allow us to inspect the car – and the £3,500 was debited from our account a second time. How can the card company credit and debit our account when we have been trying to address the matter in accordance with the Consumer Rights Act? Oh, the wonderful world of the chargeback – the seemingly arbitrary system where a consumer can complain to their card provider that they have a reason for not paying for something they have purchased using their debit

A

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR JUST £39.99 70 | CarDealerMag.co.uk

card, and the card provider will retrieve the money and give it back to the consumer.

Chargebacks have their place, in combating fraud and counterfeit for example, or mistaken duplicate transactions, but when a card provider becomes involved in a dispute between a trader and a consumer over a vehicle it can, in our view, be inappropriate.

A cardholder can dispute the quality of a purchase and complain to the card provider that a purchase is defective, much in the same way as the Consumer Rights Act provides statutory protection in the same circumstances, requiring goods to be of satisfactory quality, fit for purpose and as described.

As a trader, you are obliged to consider a claim under the Consumer Rights Act, which may ultimately end up in the county court, but a successful chargeback can effectively result in a full refund even where the requirements of the CRA may not have been met, so it is important to rigorously defend chargebacks.

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.

Chargebacks are not arbitrary of course – there are rules, but they are not covered by statute.

Your merchant services provider will have given you guidelines which will enable you to look up the relevant reason code for the chargebacks in your case and should advise on what you need to do to contest the decision.

The best advice we can give you is to keep as much evidence as possible of card transactions to demonstrate that the cardholder participated in the transaction, received the vehicle and benefited from the transaction.

Card providers require evidence, such as photographs or emails, as proof that the cardholder disputing the transaction is in possession of the merchandise.

In the event of a dispute, the cardholder must have made a valid attempt to resolve the dispute or return the merchandise. In your situation, you should demonstrate as best you can that the consumer is not co-operating with attempts at a resolution or won’t let you view the vehicle.

Paperwork, paperwork, paperwork...

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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.

Confusion!

Q

I am confused as to how Section 75 of the Consumer Credit Act applies – can you give me an outline?

Section 75 of the Act makes a credit card provider equally as liable as a supplier of goods and services if there are any breaches of contract committed by the supplier, or if the supplier goes out of business.

There must be three separate parties – a debtor (consumer), a creditor (credit card company) and supplier (car dealer).

The value of one of the items sold or supplied must have a price more than £100 and up to £30,000. The amount put on the credit card is not relevant provided the cash price is within those parameters. There are separate provisions for goods costing between £30,000 and £62,260, but these are outside the scope of this question.

The cardholder can have gone over their credit limit or have paid off the amount and still be covered.

The amount that the card company is potentially liable for is the same as the seller, and not just the amount placed on the credit card.

A

WHY I JOINED CAR DEALER CLUB

‘It’s like having your own solicitor on a retainer, but at a fraction of the cost’ SOME carefully-worded correspondence from the legal experts at Lawgistics saved a Hampshire dealer the time and expense of a county court hearing.

Gareth Kendall, director at Newtons of Ashley in the New Forest, was contacted by a customer shortly after the introduction of the Consumer Rights Act 2015.

Citing the recently-introduced legislation, the buyer wanted a full refund on an Audi A6 Avant he had bought several months – and 3,000 miles – earlier. He said it was being affected by an intermittent starting issue so Kendall, wanting to do the right thing, arranged for an independent mechanical inspection.

‘The customer bought the car in November 2015,’ Kendall told us.

‘We supplied a usual service, PDI check and a proper Safe and Sound warranty. We never heard from him again, apart from when he phoned three months later.

‘He felt he was entitled to a full refund under the Consumer Rights Act, even though he’d never tried to claim on the warranty.’

The

mechanical inspection didn’t reveal any problems so it was agreed that the customer would take the car back on a trial basis. However, immediately after that, he sent a letter saying he still felt he was entitled to his money back.

At this point, Kendall turned to Lawgistics, having signed Newtons of Ashley up to Car Dealer Club’s small business membership.

Lawgistics gave legal advice and helped word letters to the customer.

‘They’re really good,’ he told us.

‘You can get hold of them quickly and they really know what they’re talking about.’

The customer tried to take Newtons of Ashley to the county court, but Lawgistics managed to dissuade him.

‘If it weren’t for Lawgistics, we would definitely have had to buy the car back with 3,000 more miles on it,’ Kendall concluded.

‘I can’t recommend them highly enough. It’s like having your own solicitor on a retainer, but at a fraction of the cost.’

Tristan Shale-Hester (@tristan_shale)

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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.

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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.

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Dragon2000 CarDealerMag.co.uk | 71

DATA FILE.

Thestatistics

n

SMMT Sales Data

n

Taking Stock

After a record year, 2017 kicks off with a very strong month New car market surges to 12-year high – and even private sales are on the up

T

he UK new car market achieved a 12-year high in January, according to figures published by the SMMT. A total of 174,564 vehicles left showrooms during the month – a 2.9 per cent year-on-year uplift and the highest level since 2005.

Significantly, however, the alternatively-fuelled vehicle segment grew 19.9 per cent to take a record 4.2 per cent market share – the first time four per cent has been surpassed.

Across other fuel types there was a mixed picture with diesel registrations down 4.3 per cent but new car registrations of petrol cars up by 8.9 per cent. Across the market, private motorists led the growth, registering 76,729 new cars – up five per cent. Fleet demand also grew marginally by 1.4 per cent, while business registrations fell by one per cent.

Mike Hawes, SMMT chief executive, above, said: ‘2017 got off to a good start in the new car market, buoyed by a great range of new models which are safer and cleaner than ever before.

‘It’s encouraging to see alternativelyfuelled vehicles benefiting from this

positive growth, reaching a record market share.

‘After record growth in 2016, some cooling is anticipated over the coming months, but provided interest rates remain low and the economy stable, the market is in a good position to withstand its short-term challenges.’

Ian Gilmartin, head of retail and wholesale at Barclays, said: ‘The new car market has delivered again, with more growth leading to the strongest January sales in over a decade.

‘The rise in the number of alternatively-fuelled vehicles is very encouraging, but the really notable statistic is the five per cent jump in private sales. Even during the recordbreaking months towards the end of 2016, private purchases tended to be slightly down on the year before, with

fleet sales driving the strong numbers, so the industry will be delighted with the better figures for sales to individuals this time.

‘These private sales have been boosted by the incentives on offer, and the next question for sellers to answer will be how sustainable these incentives are in the medium term, especially as cost inflation begins to set in. We can expect more modest sales as 2017 develops, but for now this sustained growth should be applauded.’

Chris Bosworth, director of strategy at Close Brothers Motor Finance, said: ‘January’s overall new car registration figures continued in similar vein to 2016, with registrations up and growth continuing in the market. This comes despite recent warnings of a slowdown in investment to the sector, fuelled by the uncertainty created by the UK’s decision to leave the European Union.

‘After a nine-month period of sustained decline, it’s interesting to note that new-car private sector sales are again on the increase. It’s also encouraging to see that the growth of the AFVs shows no sign of slowing.’

Fiesta retains top spot with VW Golf the runner-up THE ever-popular Ford Fiesta kicked off 2017 in pole position, with 8,495 examples registered during the month.

The rest of the top 10 best-sellers list looked like this: VW Golf (5,455); Ford Focus (4,796); Mercedes-Benz C Class (4,230); Vauxhall Astra (4,065); Nissan Juke (3,929); Vauxhall Corsa (3,898); Nissan Qashqai (3,500); Audi A3 72 | CarDealerMag.co.uk

(3,118); Kia Sportage (3,063). The Fiesta has been the best-selling small car in Europe for four years and the UK bestseller for eight years.

Andy Barratt, Ford of Britain chairman and managing director, said: ‘In January more than 30,000 UK car and van drivers picked up new Fords, delivering 15 per cent of the market

– our highest share in two-and-a-half years. Having enjoyed our biggest January volume since 1990, we’re now looking at another sales peak to come in March. With the Vehicle Excise Duty – or road tax – system changing significantly from April, we anticipate another strong month as buyers move fast to avoid the tax increase.’

SMMT sales data Jan/year to date

5

Top

Most-improved manufacturers in January

Aston Martin +173% Maserati +101% Infiniti

+73%

Suzuki +59% Lotus +56%

5

Bottom

Worst-performing manufacturers in January DS -39% MG -34% Mazda -33% Citroen -28% Lexus -20%

LEXUS -20%

MINI +18%

Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda McLaren Mercedes-Benz MG Mini Mitsubishi Nissan Peugeot Porsche Renault Seat Skoda Smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other imports Total

January 2017 2017

223 284 189 11,676 163 8,489 0 3,250 1,994 659 3,221 22,778 4,010 6,387 182 2,694 728 7,661 5,427 800 25 165 2,827 49 13,048 205 2,280 1,329 11,378 5,952 687 4,020 3,854 5,431 751 298 178 3,762 7,436 13,870 12,967 2,795 52 390 174,564

% market share 0.13 0.16 0.11 6.69 0.09 4.86 0.00 1.86 1.14 0.38 1.85 13.05 2.30 3.66 0.10 1.54 0.42 4.39 3.11 0.46 0.01 0.09 1.62 0.03 7.47 0.12 1.31 0.76 6.52 3.41 0.39 2.30 2.21 3.11 0.43 0.17 0.10 2.16 4.26 7.95 7.43 1.60 0.03 0.22

January 2016

2016

201 304 69 11,513 120 8,265 1 4,574 1,667 1,089 3,558 22,035 4,520 5,881 105 2,252 804 5,066 4,609 1,001 16 82 4,281 0 11,800 313 1,931 1,535 10,720 7,313 827 4,145 3,119 4,993 703 260 207 2,354 6,829 15,262 12,055 2,990 48 261 169,678

% market share 0.12 0.18 0.04 6.79 0.07 4.87 0.00 2.70 0.98 0.64 2.10 12.99 2.66 3.47 0.06 1.33 0.47 2.99 2.72 0.59 0.01 0.05 2.52 0.00 6.95 0.18 1.14 0.90 6.32 4.31 0.49 2.44 1.84 2.94 0.41 0.15 0.12 1.39 4.02 8.99 7.10 1.76 0.03 0.15

% change 10.95 -6.58 173.91 1.42 35.83 2.71 0.00 -28.95 19.62 -39.49 -9.47 3.37 -11.28 8.60 73.33 19.63 -9.45 51.22 17.75 -20.08 56.25 101.22 -33.96 0.00 10.58 -34.50 18.07 -13.42 6.14 -18.61 -16.93 -3.02 23.57 8.77 6.83 14.62 -14.01 59.81 8.89 -9.12 7.57 -6.52 8.33 49.43 2.88

2017 223 284 189 11,676 163 8,489 3,250 1,994 659 3,221 22,778 4,010 6,387 182 2,694 728 7,661 5,427 800 25 165 2,827 49 13,048 205 2,280 1,329 11,378 5,952 687 4,020 3,854 5,431 751 298 178 3,762 7,436 13,870 12,967 2,795 52 390 174,564

Year-to-date (YTD) % market share 0.13 0.16 0.11 6.69 0.09 4.86 0.00 1.86 1.14 0.38 1.85 13.05 2.30 3.66 0.10 1.54 0.42 4.39 3.11 0.46 0.01 0.09 1.62 0.03 7.47 0.12 1.31 0.76 6.52 3.41 0.39 2.30 2.21 3.11 0.43 0.17 0.10 2.16 4.26 7.95 7.43 1.60 0.03 0.22

2016

201 304 69 11,513 120 8,265 1 4,574 1,667 1,089 3,558 22,035 4,520 5,881 105 2,252 804 5,066 4,609 1,001 16 82 4,281 0 11,800 313 1,931 1,535 10,720 7,313 827 4,145 3,119 4,993 703 260 207 2,354 6,829 15,262 12,055 2,990 48 261 169,678

% market share 0.12 0.18 0.04 6.79 0.07 4.87 0.00 2.70 0.98 0.64 2.10 12.99 2.66 3.47 0.06 1.33 0.47 2.99 2.72 0.59 0.01 0.05 2.52 0.00 6.95 0.18 1.14 0.90 6.32 4.31 0.49 2.44 1.84 2.94 0.41 0.15 0.12 1.39 4.02 8.99 7.10 1.76 0.03 0.15

% change 10.95 -6.58 173.91 1.42 35.83 2.71 0.00 -28.95 19.62 -39.49 -9.47 3.37 -11.28 8.60 73.33 19.63 -9.45 51.22 17.75 -20.08 56.25 101.22 -33.96 0.00 10.58 -34.50 18.07 -13.42 6.14 -18.61 -16.93 -3.02 23.57 8.77 6.83 14.62 -14.01 59.81 8.89 -9.12 7.57 -6.52 8.33 49.43 2.88

Figures supplied by SMMT

CarDealerMag.co.uk | 73

MARKET INSIGHT.

..in association with ASE-global.com

Investors don’t seem keen on our industry

It may be that the opportunities in the sector are misunderstood, says Adam Cottam

J

anuary was a quiet month for share price movements, with motor retail groups showing no material movement. However, when prices are compared with 2016, most groups are behind.

Investors don’t appear to be too keen on the industry, despite record levels of vehicle registrations and strong results in recent years.

Despite this, the UK economy as a whole appears to be in good shape, although the effects of the weak pound following Brexit are expected to be fully felt in the coming months.

Cars will be more expensive to import and in fact, most household goods will see some sort of price increase, which will no doubt put a strain on the buying power of UK families and mean tougher trading conditions for retailers.

Cambria and Marshall made announcements about their trading, with each painting a relatively positive picture. Both groups mentioned margin pressures in recent months, which will be something to keep an eye on, as this may well be the start of the new car market contraction that is anticipated to take hold in 2017.

Despite being a quiet month in terms of transactional activity, there was one significant deal which saw a change at the top of list of UK motor retailers ranked by turnover for the first time in 19 years. It was also perhaps further evidence that the industry expects the new car market to slow this year, and that used cars will need to be given much more focus.

Share price performance Although share prices have climbed slightly since the turn of the year, they are significantly down compared with last year.

The industry has not been favourable among investors for some time now, and it is thought this may be due to the misunderstanding of the opportunity in a traditional car dealership.

There can be the perception that success is all attributed to the fortunes of the new car market, discounting the effect of strong used and aftersales departments. There also seems to be a misinterpretation that new car registrations mean sales. As many in the sector believe the new car market will start to contract in 2017, it may be the case that investors take an even dimmer view of these equities as the year progresses.

Mainly due to the fact that Sterling is relatively

Share price movement from January 3 to January 31, 2017

Share price movement from January 1 to December 30, 2016

Pendragon

111.2%

66.8%

Vertu

99.4%

56.7%

Lookers

106.2%

63.4%

Inchcape

102.2%

89.4%

Cambria

102.5%

75.0%

Caffyns

99.0%

96.3%

Marshall

114.1%

74.8%

weak, the FTSE100 continued to perform well and the index was marginally behind where it was at the start of the year. Because of the high proportion of non-UK based businesses in the index, the FTSE100 provides a muddied picture when trying to establish strictly UK performance.

Using this as a barometer of UK success should be done with caution.

The economy continues to perform well, with most indicators suggesting the UK is in a good position as we start to move through the first quarter. There is, of course, the fear of an inflation hike as the weak pound starts to affect the price of goods purchased abroad, and the knock-on this will have on UK households.

Not only will this further limit the disposable income of those people potentially looking for a new car, the exchange rate implications for the manufacturers are not yet clear. There may well

be increases in list prices or indeed reductions in margins for dealers, both of which present problems for the retailer networks.

Financial performance Cambria released a trading update on January 4, and overall the story was positive. Pressures on margins were highlighted in October’s performance and volume pressures also identified in November. These were counteracted by the improved used performance, with like-for-like unit sales up 2.5 per cent on the same period last year. The group also commented that service profitability was slightly behind, citing the disruption caused by the Welwyn Garden City fire as a factor that may have influenced this.

The headline message in Marshall’s preclose statement and notice of results was that performance was ‘comfortably in line with expectations’. The business also reported margin pressures, but reported like-for-like unit sales growth in new and used.

Aftersales revenues and margins also grew on a like-for-like basis, and this, along with the incremental growth seen from the Ridgeway group acquisition, paints a healthy picture as we move through the first quarter of 2017.

Transaction activity There was very little activity. There was one notable move, however, as Sytner bought used car outfit Carshop. This knocked Pendragon off the top spot as the UK’s biggest motor dealer by turnover, the first change at the top in 19 years, a major shift in power in the UK motor industry.

Who is Adam Cottam?

He’s corporate finance executive at dealer profitability specialist ASE plc. You can read ASE’s column here every month.

74 | CarDealerMag.co.uk

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TAKING STOCK. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead

Full speed ahead as BCA buyers continue to hunt for retail-ready stock Good-quality pre-sale preparation can generate real value, writes Simon Henstock, BCA’s chief operating officer for UK remarketing

D

espite rising volumes, average values climbed in January as buyers competed strongly for stock. A number of BCA centres around the network set new records for sold volume during the month and BCA recorded the highest inventory number on record.

The month recorded the second highest headline figure since Pulse began reporting in 2005, with values rising by 3.3 per cent (£278) to £8,619.

Values for fleet/lease and dealer part-exchange vehicles improved during the month to near-record levels. Year-on-year values were up by 9.4 per cent (£742), with average age and mileage falling by three months and 4,000 miles respectively.

Business really accelerated into the new year at BCA, following on from an equally busy December.

For the first time in several years, average values rose in January compared to December, despite stock levels rising to record levels during the month.

The competition for the buyers’ wallet remains intense, but BCA is delivering the best quality of stock thanks to a number of significant vendor wins and retentions in recent months.

Preparation and presentation remain key, however, as buyers continue to focus demand on retail-ready vehicles. Goodquality pre-sale preparation can generate real value in the remarketing arena, uplifting residual values with returns far outstripping investment.

Older, higher-mileage or poorly-presented stock needs to be realistically appraised and sensibly valued if it is to sell first time.

And with the March plate-change nearly upon us, we expect to see an influx of corporate fleet and dealer partexchange stock in the weeks ahead which means even more choice will be arriving for our buyers.

Average values in the fleet and lease sector rose for the first time since last October, reaching £10,163, the second highest point on record.

The month-on-month increase of £498 represented a 5.5 per cent uplift.

Retained value against original MRP

Dealer part-exchange values:

£4,579

(Manufacturer’s Retail Price) improved by a point to 42 per cent, while year-on-year values were up significantly, rising by £723 (7.6 per cent), with both age and mileage declining.

Dealer part-exchange values also improved during January, rising by £84 (1.8 per cent) to £4,579.

Year-on-year values were ahead by £263 (6.1 per cent), with average age and mileage relatively static.

Average nearly-new values fell to £18,276 in January, with model mix having a significant effect in this low-volume sector, as we always take care to mention.

Average values in the fleet and lease sector:

£10,163

CarDealerMag.co.uk | 77

AUCTIONS.

Henstock AUCTION STATIONS

Innovation is changing remarketing landscape

BCA’s Perry Barr site officially open after Lord Mayor’s visit Car donated to charities raises an impressive £5,050

B

CA’s new multi-million-pound remarketing and logistics facility at Perry Barr, Birmingham has been officially declared open by the city’s Lord Mayor.

The day’s events included a special sale of vehicles which attracted a large crowd of buyers to the 20-acre site – and the sale of a car donated by BCA with all proceeds going to the Lord Mayor’s charity appeal.

Following an introduction by Simon Henstock, chief operating officer of BCA’s UK remarketing operation, the Lord Mayor, Councillor Carl Rice, unveiled a plaque declaring the new centre formally open for business before embarking on a tour of the facilities with other special guests.

He watched from the rostrum as the car donated by BCA was sold to raise funds for his appeal, which supports a number of good causes including Cancer Research UK and Fisher House, a ‘home away from home’ for military patients and their

families based at the Queen Elizabeth Hospital, Birmingham.

The 2012 Vauxhall Astra 1.4 16V 100 SRI in red sold for an exceptional £5,050 and was purchased by Trade Centre UK, which is soon to open a new 12-acre, 1,200-car site in the West Midlands.

Henstock, who writes a regular column for Car Dealer magazine with his contribution this month appearing on this page, said: ‘We were delighted to welcome the Lord Mayor to officially declare BCA Perry Barr open for business.

‘Perry Barr offers a fantastic opportunity to grow our business as it offers muchneeded additional capacity in the midlands alongside our thriving existing businesses at Castle Bromwich, Walsall and Wolverhampton.’

Our picture shows Henstock and Cllr Rice with the car that was auctioned for charity – and a cheque for the amount raised for the Lord Mayor’s charities.

W

hile sourcing good-quality stock is becoming ever more competitive for retail dealers, the ongoing drive for innovation in the remarketing sector means buyers have more information and more ways to secure stock than ever before.

The past decade has seen a proliferation of routes to market. For dealers, the growth of both physical and digital platforms means more choice and better access to used vehicles 24/7, 365 days a year. Alongside this, better-quality data and huge improvements in the inspection, appraisal and preparation processes have driven convenience and transparency in the remarketing sector.

At BCA, a blended approach has seen volumes rise in both physical auctions and on digital platforms. The growth of digital sales is supported by an ongoing expansion and investment in the infrastructure of BCA’s physical auction network. The continued growth of digital platforms is underpinned by some significant investments in imaging, video and appraisal technology that provides buyers with a consistent description of a vehicle’s condition.

The ability to move data along the remarketing journey has accelerated the process. Vehicles are now imaged, checked and placed on retail websites ahead of the vehicle arriving on the forecourt. Innovations such as BCA Assured provide buyers with added confidence.

Funding options have also progressed and BCA Partner Finance has seen rapid growth. Dealers can trade more flexibly and source stock seven days a week. The availability of accurate pricing data enables better stocking decisions.

The advent of funding solutions has freed the dealer to operate more efficiently and, with better liquidity, buy for the best deal to suit the business. Even the part-exchange process has been revolutionised with BCA’s Dealer Pro offering a slick and efficient platform to process nonretail and over-age stock.

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.

78 | CarDealerMag.co.uk

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Renewed Cargiant deal helps Aston Barclay keep growing ‘Continued excellence of service and performance’ wins a glowing tribute

A

ston Barclay has renewed its solus agreement with Cargiant, which will see its Chelmsford site continue to handle all of Cargiant’s part-exchanges throughout 2017.

Building on the solus deal that was announced in January 2016 after a decade-long relationship with Cargiant, Aston Barclay will continue to supply a complete remarketing solution for the used car supermarket through its physical and digital channels. More than 1,000 vehicles will feature prominently every month from Cargiant at Aston Barclay’s Monday evening and Wednesday morning auctions.

A Cargiant spokesman said: ‘We’ve been extremely impressed with the continued excellence of Aston Barclay’s service and performance.

It was only natural to continue our existing relationship with Aston Barclay, which we’re sure will continue to prove fruitful.’

In addition to new business secured from Essex-based 24x7 before Christmas, Aston Barclay has announced additional volume from

Aston Barclay is enjoying a significant period of business expansion Saxton 4x4 and Quest Motor Group.

24x7 operates specialist vehicles for the transportation of children with disabilities and learning difficulties to and from 17 schools in Essex, through county council-led schemes. The majority of vehicles are low-mileage, late-plate cars, minibuses and larger capacity vehicles.

Saxton 4x4 will increase its presence further throughout 2017 at Aston Barclay’s Chelmsford site after volume doubled in 2016, compared to 2015. Part-exchange volume from

Braintree and Maldon-based Quest Motor Group will continue to feature on Monday evenings at Chelmsford.

Aston Barclay’s additional new business volume represents a hugely successful period of growth across all areas of the group for the year so far.

Martin Potter, group operations director at Aston Barclay, said: We’re delighted to continue our successful relationships with Cargiant, Quest Motor Group and Saxton 4x4, while welcoming 24x7 Ltd to our Chelmsford sales programme.’

Glyn Hopkin Group signs three-year remarketing tie-up with BCA GLYN Hopkin has signed an exclusive three-year remarketing deal renewal with BCA. All non-retail partexchanges and over-age stock will be sold in a weekly event at BCA London Enfield every Saturday, with around 250 cars on offer in every sale.

A wide range of vehicles will be Car dealer new strip ad 3/16 available, including many examples

from the Glyn Hopkin franchise network which includes Abarth, Alfa Romeo, Dacia, Fiat and Honda.

All eligible vehicles will be sold under the BCA Assured scheme and come complete with V5, plus in many cases a service history and warranted mileage. Vehicles will be available to 26/9/16 14:32 Page 1 BCA Live Online buyers as well as

THE FLEET AUCTION GROUP - THE UK’S

N1 O

TRADE ONLY AUCTION

bidders in the auction hall.

Glyn Hopkin is also utilising the Smart Sell element of the BCA Dealer Pro system to consign non-retail partexchange cars to BCA for remarketing.

Glyn Hopkin operates more than 40 sites across London, as well as counties such as Essex, Hertfordshire and Suffolk.

EPYX

Online sales values trump physical ones ONLINE sales values of ex-fleet stock beat physical auctions by an average of one per cent or £220 per vehicle in 2016, according to new figures from epyx.

The statistics are taken from tens of thousands of vehicles sold through the company’s 1link Disposal Network platform, which is used to manage online and offline sales. David Goodyear, commercial director at epyx, said: ‘Because we see very similar stock sold through both our online channels and traditional auctions, we are in a very good position to make direct comparisons about how they are performing.

‘Our overall figures last year were 97.5 per cent of the trade guides for online and 96.5 per cent for offline.

This may sound like quite a small difference, but it adds up to around £220 per car.’

Goodyear explained that much of the difference in values attained was because online provided a more effective way of reaching interested buyers: ‘We are able to create communities of buyers such as franchise dealers and first-tier independents for different vehicles and target them very specifically. This helps to maximise values.’

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

The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com CarDealerMag.co.uk | 79

80 | CarDealerMag.co.uk

RECRUITMENT.

Cambria welcomes two non-executive directors

JENNINGS MOTOR GROUP

Both bring to the group ‘experience, knowledge and expertise’

P

aul McGill and William Charnley have joined the board of Cambria as nonexecutive directors.

McGill has a detailed and extensive level of knowledge of the motor retail industry, acquired from more than 30 years in the business.

He was most recently head of projects at Lloyds Banking Group, where he was responsible for promoting the Black Horse Consumer Finance brand, leading new initiatives and recruiting key individuals to the business.

He also served as head of motor finance (south) at Black Horse, a position he held from 2009 until April 2016. Prior to these roles, McGill was head of distribution at Bank of Scotland Dealer Finance for 18 years.

Charnley is currently a partner at King & Spalding International in the corporate practice.

He has more than 20 years’ experience in public and private mergers and acquisitions, disposals, flotations, private equity transactions and general corporate and securities advice.

He has a high level of knowledge of both the motor retail sector and Cambria as he has acted as an adviser to the company in the past.

Philip Swatman, chairman of Cambria Automobiles, said: ‘I am delighted to welcome Paul and William to Cambria.

‘Both bring to the group a vast amount of experience, knowledge and expertise, which will complement the extremely strong management team we already have in place.’

Cambria Automobiles plc is one of the UK’s fastest-growing motor dealer groups.

Following recent Land Rover acquisitions in Welwyn, Woodford and Swindon, the group now comprises 30 dealerships, representing 47 franchises and 17 brands Swatman added: ‘I am sure Paul and William will prove to be valuable assets as the board focuses on enhancing the core operations of the group’s existing businesses whilst delivering the integration and optimisation of the more recently acquired businesses.’

Luke who’s been promoted!

A MEMBER of staff at Jennings Seat, part of the multi-award-winning Jennings Motor Group, is cruising towards career success after receiving his second promotion in just under two years.

Luke O’Neil, 25, from Houghton-le-Spring, has been promoted to deputy business compliance manager, in addition to carrying out the roles of sales executive and Motability specialist at Jennings Seat’s dealership in Cargo Fleet Lane, Middlesbrough. Recognising Luke’s potential within a couple of months of him joining the company, franchise manager Craig Johnson described him as ‘a dedicated, conscientious and committed member of the team’.

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MONEY TALKS

..in association with Paragon Car Finance

Keeping it clean

We all have to work together to prevent money laundering – and help reduce crime

U

K financial institutions and motor dealers have statutory responsibilities to guard against money laundering – and this year sees the implementation of the Fourth EU Money Laundering Directive designed to bolster defences against the practice.

Why be concerned about money laundering?

Money laundering is used by criminals to disguise funds obtained from illegal activity.

Often, the money will be used to facilitate further crime or even fund terrorism.

Lenders and motor dealers have legal obligations to prevent money laundering and must work together to stop it happening.

What should I look out for?

Look out for indicators, including customers making large deposits or customers buying and then reselling a vehicle in a short space

Any questions?

of time. While it’s not to say that customers in these situations are anything other than entirely legitimate, lenders and dealers need to be sure.

Taking deposits as an example, any deposit equivalent to €15,000 or more (including deposits where the total is broken down into smaller payments) must come directly from the customer and not from a third party.

Reducing to €10,000 under the new regulations, this means that cheques, debit or credit card and bank transfers must be in the customer’s own name. Equally, where a vehicle is used as part-exchange, it’s important to have proof of ownership.

How can dealers help?

Money laundering regulations make the identity of the customer essential. So, before entering into a relationship with a new customer, get evidence of the customer’s identity and residency, usually by way of a photocard driving

licence and a utility bill or bank statement.

Make sure you know the source of any deposit and the source of the customer’s wealth. It’s not enough to say that a deposit is coming from a customer’s bank account; you need to know how the customer acquired the money.

Also, if the customer is a corporate borrower, it’s important to identify who the beneficial owner of the asset will be by obtaining identity documents for the individuals who own more than 25 per cent of the shares.

What if I suspect money laundering?

If you work for a lender or dealer and suspect a customer is involved in illegal activity, you must report your suspicions to your employer’s money laundering reporting officer. They, in turn, will inform the National Crime Agency.

Failure to report suspicious activity carries penalties of up to five years in prison and unlimited fines.

If you have any finance questions relating to the motor industry, please send them to Paragon Car Finance at pcf@paragonbank.co.uk

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84 | CarDealerMag.co.uk

KEY NOTES

..in association with Traka

Turn data into insight Dealers will need to focus more on the customer experience in 2017, says Paul Smith

T

he new year is always a good time to examine the workings of your dealership as a whole: identifying things which are functioning well and spotting opportunities for improvement.

One area I’m hearing a lot about now and which is likely to warrant closer attention in 2017 is improving customer experience.

For many DPs today, customer experience is all about getting those CSI scores up enough to hit manufacturers’ targets for bonuses. But surely, customer experience goes way beyond tick-box customer satisfaction levels? In a homogenous marketplace, customer experience is a critical differentiator to ensure customers come to you and keep coming back in the future.

It should extend to gathering data from wouldbe customers at every touchpoint, recognising that this data has value – just as the customer will have value when he buys.

For this to work well, it’s important to look at every opportunity to gather data about a customer’s car-related interests and preferences.

Take the online ‘car configurator’ which most manufacturers (but not enough dealerships) now offer. The data collected here is extremely valuable in that it should indicate price range, make, model, as well as preferred spec, including in-car and finance options being considered.

Once this work is done, it would not be unexpected for the person having configured their dream car to want to test-drive it. To do that, he or she will, in the main, need to go through to a car dealership. But is your dealership wellplaced to harvest these leads and can it access the associated data collected in these configurators?

How many dealerships today even ensure they have access to the configurator data to make sure that the test-drive vehicle is set up in the way that

the customer seemed to prefer online?

If this all sounds tricky, it’s worth considering putting an automated process around the test drive to marry up data from the configurator as closely as possible to available demo stock and offering test-drive appointment options to the customer in a more automated way.

Managers could then keep an eye on the process to see how many appointments are going ahead as planned and what percentage of the test-drives are putting customers into their preferred vehicle. Here is a great opportunity to impress the customer and close more sales.

The agent involved can also input data after the test drive if the customer was satisfied or wanted other options. Again, a digital process could be put in to get feedback from those taking test drives. This feedback could help direct the next communication… and so on.

Marketing theorists today talk a lot about the ‘voice of the customer’ (VoC) being at the heart of great ‘customer experience’ (CX).

The idea is that you capture all interactions with the customer regardless of channel (email, Twitter, Facebook, phone) – using the insight to do a slicker, more ‘joined-up’ job for him/her.

Without identifying and plugging these gaps,

your manufacturer(s) will start closing your future customers out themselves as more aspects of the customer journey take place online through their increasingly sophisticated websites.

As more of the sales process goes online, this does not mean that the dealership needs to lose contact with their prospects. If anything, it is the reverse: there is a clear opportunity to garner more insight into interested prospects long before they reach the dealership.

If car buyers are spending more time harvesting information and getting pricing online, is that because they don’t trust dealership staff to give them the information they need?

Do they fear being overloaded with information or being ‘upsold’ into features and options they really do not want? Sadly, the answer to some of these questions is still ‘yes’ and it’s high time dealers did something to combat this.

In short, car buyers want more control over the purchase process and they are getting this by arming themselves to the teeth with information before they arrive on your forecourt. So surely the best response from dealers is: l Stimulate additional opportunities to gather more customer data. l Turn that data into insight which you can act on, closing out gaps in the customer journey, and tightening feedback loops to hours not weeks. l Simplify the sales process, reducing aggressive sales techniques, and increasing your ability to listen to the customer rather than sell at him/her, or worse, leaving him confused and unmotivated.

Once you begin looking at the opportunities to turn customer data into knowledge and insight and, by stages, positive customer experiences which enhance your brand(s) and keep them coming back to you forever, you pretty quickly realise they are legion.

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 Email automotive@traka.com or call 0845 225 2910

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CarDealerMag.co.uk | 85 15/12/2016 09:56

DATA FILE.

James Litton

TRADER TALES

One to look out for from Lynk & Co

M

edia companies haven’t been struggling for content in the past few months – so much so that last October you may have missed some articles relating to a new entrant to the automotive arena scheduled for late 2018.

Lynk & Co is a brand owned by the parent company of my own franchise, Volvo. For that very reason I didn’t miss the press releases, but I’ve only recently looked into it in more detail and I’m both nervous and excited by what I read.

The fact that Geely wants to widen its brand portfolio from Volvo, the London Taxi Company and its own domestic models is no surprise, but Lynk & Co offers the future consumer a new ownership model that doesn’t involve a traditional network, and this definitely raises some eyebrows.

The launch model is called the One. It looks like it’s been created from the parts bins of a Porsche Macan, Volvo XC60 and Kia Sportage. A curious mix, but all models have something to offer a would-be driver.

A customer will configure the car online and it appears may be able to sign a contract of a variable length.

I am aware that many manufacturers are considering ways to innovate finance contracts as consumer sentiment drifts from ownership, but Lynk & Co looks to take this a stage further.

It promises the use of a digital key which, in theory, allows the owner to offer the use of the car to someone else. Think Airbnb but for cars.

You can even see on its website, artwork of an app that appears to show feedback from a driver given to an owner.

This is a really exciting development that you can see would have mass appeal, particularly in urban environments. But I’d urge caution to my colleagues involved in this new venture.

The much-publicised failure of South Korean conglomerate Daewoo to revolutionise motor retailing will be frequently thrown in the face of Lynk & Co. Service and body networks are not easily established, particularly with partners that have similar brand and cultural values as Lynk & Co. There is also the issue of residual values. I have just been challenged with my first Tesla. I had no idea where to go with it, nor who would buy it. The customer told us this was not the first time he had heard that – and that was partly why he was looking to sell. However, Daewoo entered the market a long time ago and the market at that time wasn’t looking for a revolution.

In today’s destabilised world, disrupters can be found in the worlds of both business and politics, so there is no reason to doubt the potential success of the venture.

‘Disrupters can be found in both business and politics.’

Who is James Litton?

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

86 | CarDealerMag.co.uk

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A major slip-up at my first dealership...

W

hen I got my first job in a car dealership, I thought I had it made. I wasn’t exactly dealer principal – more a lackey who fetched tea for everyone – but I had to wear a tie, and I got to spend every minute of every day with shiny new cars made by my favourite luxury brand.

After about 18 months, I was pretty pleased with how things were going. I’d graduated to actually speaking to customers and I’d even made the odd sale – even if they were mostly selling the brand’s lowliest model. Most importantly, though, I’d been given a demonstrator to drive and I hadn’t crashed it, or anything else. Yet. One wintry day, a rather scruffy but obviously well-todo chap came in with his intolerably pretty sports car.

I overheard him telling ‘his’ salesman (they obviously knew each other well) that he had had his two-seater for four years and his wife had told him in no uncertain terms that the arrival of their first child meant a four-door was in order.

I was dispatched to move his gorgeous, bright red car to our garage for a quick check over and to help provide a trade-in quote, while the senior salesman took him for a spin in the latest fourseat sports saloon.

I watched in envy as the two of them left me in a cloud of petrol fumes, then set about finding the scruffy bloke’s coupe. It turned out to be an immaculate, almost showroom-condition car with a low mileage for its age.

At this particular dealership, taking the car to the garage meant driving maybe 100 yards down the road and taking another turning into the rear of the site.

After creeping carefully through the car park, I waited for a gap I considered conservative, then put my foot down to pull out into the road.

The next thing I remember, the car was halfway up the railway embankment on the other side of the road, and most of the back end had vanished. I’d stuffed a £60,000 sports car on a patch of black ice.

I was mortified, but nowhere near as upset as the senior salesman, who had to explain to the customer that he was giving him a top-of-the-range saloon for free, then to the dealer principal that it was all because of my incompetence. How I kept my job I’ll never know.

‘I watched in envy as the two of them left me in a cloud of fumes.’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email our head of news and features (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 | 87

THE FLEET.

LATEST FROM THE FLEET...

Welcome report:

Third report:

Third report:

Fourth report:

LexusNX300h

MitsubishiMirage

SkodaSuperb

MiniClubman

Luxury and technology go hand in hand and longer journeys are in order for audio

Hopelessly devoted Conditions have to the heated seats been very fluid

It’s the car with real socks appeal!

MONTH three of my custody of the Mirage, and as we reach the depths of winter my love affair with the heated seats has reached devotional levels.

I wouldn’t want to overplay the fact, but with every morning of scraping the ice off the windscreen, and tentatively making my way through thick fog, my appreciation of the heated seats and how quickly they thaw me out grows deeper.

The Mirage continues to be a pleasure to drive, on journeys long and short.

Recent celebrations led to its biggest test yet — the in-laws test. Transporting my mother-in-law and grandmother to a family dinner, they were really impressed with the comfort and space, so much so that mother-in-law asked me about the finer details such as running costs – and these are refreshingly low.

What’s more, the Juro’s light and sharp handling is a godsend in tight spaces, Clare Newman (@ClareNewman81)

A WEEKEND in Cornwall saw me having to pack enough food and drink for 14 people, along with enough pairs of socks to keep me going.

With this in mind, I was dubious as to whether it’d all fit in the Clubman, as well as whether or not it would then prove enjoyable to drive the 150 miles through winding West Country roads. However, my doubts quickly dissipated as the Mini swallowed up everything I could throw at it, thanks in part to its excellent folding rear seats.

It really is a bit of a Tardis when it comes to storage.

It remained nippy and would happily cruise at the legal limit – although of course rear visibility was somewhat impaired.

The four-wheel-drive system fitted to our Mini really aided traction too, and when coupled with a gutsy diesel engine provided a driving experience that was truly impressive.

Andy Entwistle (@CarDealerAndy)

A NEW Lexus NX has just come into my custody and I feel like the girl who got all of the toys.

First impressions have been fantastic, although I’ve yet to see the benefit of its hybrid credentials.

This car looks seriously futuristic, with striking lines, angular LED lights and that blue paintwork. On the inside, it’s a perfectly paired combination of luxury and technology. Sitting in the NX for the first time, you’re surrounded by buttons – something that has become a bit of an anomaly in cars these days, but it really adds to that spaceship feel. Once you’ve adjusted your seat to your preferred position it’ll memorise this, so that every time you get in and press ‘power’ it adjusts perfectly.

Getting comfortable is easy too, with electric adjustment on the seats and steering wheel, plus heated seats and even a heated steering wheel – a life-saver on freezing mornings!

Lexus likes to use a range of ways to direct you around its infotainment system, but rather than a touchscreen or buttons it has a touchpad – something you’d expect on a late ’90s computer. That said, it’s very easy to use.

The Lexus screen is something else that looks daunting at first glance, 88 | CarDealerMag.co.uk

but I’m finding that there’s method in the madness and, once you’ve adjusted to that, things become simple to use.

Another great touch that adds to the car’s premium feel is the Mark Levinson speakers. The sound is incredible, and already I’ve been known to drive the long way home to play just a few more songs.

I’ve also got to admit the electric driving is addictive.

I’m desperate to get my miles per gallon up and use electric-only power as much as possible, but with a few long drives, I’m struggling to improve on 32.8mpg.

The CVT gearbox is a bit irritating too, as it doesn’t have quite the drive you’d want and acceleration feels particularly sluggish, which is only worsened by the unpleasant engine note.

Rebecca Chaplin (@believebecca)

THE KNOWLEDGE Model: Lexus NX300h Price: £ 38,890 Engine: 2.5-litre petrol hybrid Power: 141bhp, 210Nm Max speed: 112mph 0-60mph: 9.0 seconds Emissions: 119g/km Mpg: 54.3 (combined) Mileage this month: 2,020 THIS MONTH’S HIGHLIGHT Toasty hands and rear, thanks to the heated fixtures and fittings.

THE KNOWLEDGE Model: Mitsubishi Mirage Juro Price: £12,499 Engine: 1.2-litre, petrol automatic Power: 79bhp, 106Nm Max speed: 112mph 0-60mph: 11.5 seconds Emissions: 100g/km Mpg: 65.7 (combined) Mileage this month: 1,900 THIS MONTH’S HIGHLIGHT In-laws impressed by the Mirage’s comfort and space.

JANUARY was the month when many people went ‘dry’, but the Superb didn’t join them, as its fluid consumption rose hugely.

First there was the fuel.

Whereas the Skoda was consistently achieving 50-52mpg in the warmer, autumn months, the average dipped into the high 40s for the first time because of the extra drain on the electrical system courtesy of the dark days and wet weather as well as extensive use of heating.

The constant grime smeared over the windscreen and tailgate thanks to the salt-covered roads mean the Skoda has also been ripping through screenwash. When a warning light said the tank needed a top-up, I hoped one litre at £2.49 would fill it. No chance. It demanded five, but the tank was nearly empty again after a couple of weeks. Bring on the milder weather so we can dilute the mixture!

Tom Barnard (@TomBarnardPR)

THE KNOWLEDGE Model: Skoda Superb Estate Laurin & Klement Price: £33,555 Engine: 2.0-litre TDI Power: 150bhp, 340Nm Max speed: 135mph 0-60mph: 8.9 seconds Emissions: 119g/km Mpg: 62.8 (combined) Mileage this month: 1,385 THIS MONTH’S HIGHLIGHT Keeping warm during the cold weather – despite the added cost.

THE KNOWLEDGE Model: Clubman Cooper SD ALL4 Auto Price: £36,070 Engine: 2.0-litre turbocharged diesel Power: 188bhp, 400Nm Max speed: 138mph 0-60mph: 7.1 seconds Emissions: 126g/km Mpg: 58.9 (combined) Mileage this month: 543 THIS MONTH’S HIGHLIGHT Getting so much clobber in the Tardis-like back.

LONGTERMERS Seventh report:

Seventh report:

Seventh report:

Farewell report:

Farewell report:

AudiQ7

DS4Crossback

SeatIbiza Cupra

SuzukiVitara

KiaSportage

Seeing green after a close scrape

Raised perspective but a dim view

Ask not what Cupra can do for you...

Parting is such sweet sorrow

Saying hello, waving goodbye...

I’M NOT really sure how the Crossback justifies itself as its own distinct model, other than looking a bit more like a crossover/SUV than its standard equivalent and offering a high driving position designed to make it easier to get around off the beaten track.

The Crossback is still only available as front-wheel drive, so you can’t go too wild with the off-roading.

Sub-zero conditions have raised another minor inconvenience. The heaters are relatively slow to get up to temperature, meaning de-icing has to be done by hand – not easy with such a massive windscreen – unless you leave a little early! And the Crossback’s odd door design claimed another victim in the shape of my brother, who caught his arm on a piece of trim that juts out from the door.

It was only a minor scrape, but again it makes you wonder what the designers were thinking…

Darren Cassey (@DCassey)

I’VE BEEN spending some time in Norfolk, where the little Ibiza felt perfectly at home on the narrow roads.

Its pocket-rocket credentials meant I could enjoy myself without breathing in every time an old biddy in a Rover 416 came around the corner.

But there were downsides to its dimensions. Taking three pals to the golf club for a round proved simple enough, and the car happily swallowed their golf bats.

Unfortunately, it couldn’t cope with both at once.

In fairness, that wasn’t the car’s fault but a question of me asking far too much of it. The truth is, you can’t have everything from a car.

Apart from that, I’m struggling to think of anything the Cupra struggles with, and I’m now steadfast in my belief that the Cupra is the least compromised of all the compromises in its segment. If I were in the market for such a thing, I’d buy one in a heartbeat.

James Fossdyke (@JFossdyke)

DURING the Vitara’s time with us there have been many ups and a few downs.

On the whole, the small SUV is a pleasure to drive.

It’s a nippy automatic that will allow you to shoot around town, but it also finds its feet on motorways.

However, the lag of the turbocharged engine can be a pain sometimes, particularly if you’ve been in the car for a while. The Apple CarPlay and I have had a few fallings-out, too.

It’s a fantastic bit of kit that makes driving far safer for people glued to their phones, but only when it works. There’s an issue with it cutting out when you try to call someone, but this should be rectified with a software update.

Suzuki has done a fantastic job in lifting the Vitara in car buyers’ estimations. The latest generation is stylish and practical, a far cry from its utilitarian past, and will be sorely missed.

Rebecca Chaplin (@believebecca)

I’M ASHAMED to say that, until this month, I haven’t had much of a chance to get to know our Sportage.

It’s not through lack of trying, I should point out – every time I try, there’s always someone else who’s nabbed the keys to our First Edition uh… first. This month, though, I decided I wasn’t having any of it. No more excuses, I was taking the elusive Kia for a farewell trip – all the way to the Brecon Beacons and back.

So, what’s to like? The seats are supportive, the JBL speaker system isn’t half bad, and the interior is well put together and nicely laid out. And the bad bits? The 2.0-litre CRDI diesel seems to like a drink, and the ride on our car’s big alloys isn’t as serene as it could be.

Beyond that, it’s really hard to fault the Sportage, so I can see why it’s proved such a hit for Kia in the UK – and why the rest of the motoring team have gripped the keys so tightly…

Jon Reay (@JonReay)

SINCE my last report I’ve covered a whopping 3,753 miles. The Audi managed to return 30.7mpg over that distance which, although somewhat shy of its 48mpg combined figure, is still not too disappointing considering the spirited manner in which I’ve been driving.

I’m still very much in love with the Q7, but the past few weeks have not been without their issues: a green car scraped along the passenger-side door handle, leaving a telltale sample of its colour in the once-silver paintwork. Very frustrating.

Thankfully, the noisy engine I reported last time seems to have got better – I’m pinning the blame on a particularly cold snap.

I celebrated by giving the Audi a thoroughly good clean – with all those motorway miles the dirt was becoming a bit of a feature, so an extra-long jet wash returned it to almostshowroom shine.

James Baggott (@CarDealerEd)

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: 153g/km Mpg: 48 (combined) Mileage this month: 3,753 THIS MONTH’S HIGHLIGHT Scrubbing off four weeks of grime.

THE KNOWLEDGE Model: DS 4Crossback BlueHDi 120 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: 573 THIS MONTH’S HIGHLIGHT Ha ha! You MUST be joking...

THE KNOWLEDGE Model: 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: 45.6 (combined) Mileage this month: 834 THIS MONTH’S HIGHLIGHT No worries on narrow roads, thanks to the car’s pocketrocket credentials.

THE KNOWLEDGE Model: 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: 695 THIS MONTH’S HIGHLIGHT Fitting in nicely on a trip to the family home – all of them black car owners.

THE KNOWLEDGE Model: Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2 seconds Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 1,298 THIS MONTH’S HIGHLIGHT Learning – at long last – what all the Sportage fuss was about.

CarDealerMag.co.uk | 89

BAGGOTT.

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Convenience is key for the consumer – ignore this at your peril

T

here are some people I know who look back nostalgically to a time before mobile phones and wish those days of undisturbed peace could return. As much as I’d like to have some downtime from notifications every now and again, in the main, life is a lot better these days thanks to that little black device in my pocket.

I can answer emails from the beach or FaceTime my mother on her round-Australia trip from a ski lift in the French Alps.

I can see what my friends have had for breakfast or gauge the mood of the nation after the latest brain fart from the President of the United States. I can order a taxi and watch it drive towards me and know accurately the time and place it will arrive. I can buy pretty much anything I can think of with one press of my finger and have it delivered the next day – or if I’m really desperate, a few hours later.

I remember a time when I would sit on my sofa on a Friday night, order a tikka bhuna over the phone (when I could finally get through) and then wait for many hours before it turned up. These days I fire up an app, choose with my finger and have it delivered half an hour before it was due because the takeaway fears the bad feedback will knock them down the preferred list of eateries.

I can pay bills while sitting on the train, I can check the weather forecast while I’m walking the dogs, and can update my diary while I’m shopping. I’ve got every single picture I’ve taken in the past five years at my fingertips – some 10,000 of them – and videos of my six-year-old daughter lip-syncing to Taylor Swift on demand (if I can watch them again). I can watch feature-length movies that download from thin air, find my way when I’m lost or, if things are really desperate, use the thing as a phone.

Let’s face it, few gadgets have changed our lives quite like the mobile phone – or more accurately, the iPhone. It’s not hard to see why it’s become such a go-to gadget: it’s all about convenience. It excels at making things easier, quicker and simpler. Every single one of us is time-poor these days – lives have got busy. While gadgets have made those mundane tasks easier, we’ve managed to fill our regained time with other, far more important things.

So if consumers these days haven’t got time to visit the bank, to go to the shops, to wait on the phone for a taxi or a takeaway, then how much longer are they going to have time to shop for a car?

We already know that car buyers don’t visit any more than one dealership these days in their search for a new car – they

know what they want, they’ve watched the video reviews, they’ve crunched the prices, they’ve even chosen their specification and colour. They’re at your dealership to do the deal – in fact, they already know the deal they want; they’re only really sitting in front of you to sign the paperwork.

So why do they even need to do that? If they already know what they want, if they’ve already done all the research they’ll ever need to do, why do they even need to leave their sofa? To test-drive it, I hear you say. Well maybe, but is it tradition that dictates they come to you for that? In these time-poor days, shouldn’t you really be going to them?

Oh, but what about their part-exchange, you retort. Well, I’ve got news for you there too: there are plenty of online carbuying sites that’ll give them a price online.

Yes, it might be less than you’d offer, but do they care?

James only sitting Baggott ‘They’re in front of you to sign

Who is James Baggott?

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

the paperwork.’

Have you seen the latest PR line from the biggest buying site that makes a huge deal about the fact it may offer less but it’s quicker and easier than going to you?

Manufacturers are getting wise to it. This month we report on Hyundai’s first click-to-buy customer – a punter who completed his whole purchase online. Smart is at it, Peugeot is getting in on it too, and there will be many more to come.

BMW’s chief of sales and marketing, Ian Robertson, even told me this month about a doctor who ordered a new 5 Series on its website at 2am.

The automotive industry has invested heavily in bricks and mortar, so the move to digital retailing was always going to be a reluctant one.

And it doesn’t help that initiatives to move car selling online haven’t all gone swimmingly in the past.

However, there are seismic shifts afoot.

There was a time when people used a mobile phone to make phone calls; now one in four people never even make calls on theirs.

Dealerships need to get wise to these changes – simply remembering that convenience is key for consumers these days and working out how to change to give them that might just be the saviour of this great industry.

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.

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