Car Dealer Magazine: Issue 70

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Issue 70 | January 2014

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IGNITION.

EDITORIAL EDITOR James Batchelor

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STAFF WRITER Jon Reay

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STAFF WRITER Sophie Williamson-Stothert

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head of design Graeme Windell

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ADVERTISING ADVERTISING Manager Duncan Chappell

duncan@blackballmedia.co.uk Twitter: @CarDealerDunc

Advertising EXECUTIVE Cliff Culver

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CREDIT CONTROL & ADMINISTRATOR Pippa Marsden

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SUITS MANAGING DIRECTOR James Baggott

james@blackballmedia.co.uk Twitter: @CarDealerEd

OPERATIONS DIRECTOR Andy Entwistle

andy@blackballmedia.co.uk Twitter: @CarDealerAndy

Contributors James Litton, Tim Naylor, Tim Heavisides, Jonathan Such, Dave Brown, Gareth Bethell, Mal Hay, Leon Poultney, Daljinder Nagra, Diana Hargreaves, John Bowman and Dave Brown.

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have believed Welcome. IweCOULDN’T would have bettered

2012’s Used Car Awards, but I think it’s fair to say that at the beginning of December 2013 we did just that.

This year’s awards night, sponsored by Black Horse and once again held in association with Wheeler Dealers’ Mike Brewer, was spectacular and allowed us to celebrate the individuals and companies who are helping the used car industry play a pivotal role as the UK economy finally emerges from its long hibernation.

Whether or not the all-you-can-drink booze on the night played a role in how smoothly the evening went is debatable!

But why have we put all of our eggs into one basket – or, in other words, why did we decide to stage an awards ceremony entirely about the used car industry?

Well, it began in the summer of 2011 when Brewer and his wife Michelle said that all too often the vital work of this industry is overlooked in favour of the more glamorous world of new cars. Between Car Dealer and the Brewers, we wanted to put that right – and we’re trying our hardest to give all those who work in the used car industry the credit they deserve.

As always with this type of event, the Used Car Awards took a lot of planning – and the occasion would not have even happened had it not been for the Car Dealer team’s hard work and, of course, the fantastic support of all our sponsors.

I’d like to take this opportunity to congratulate all of the winners and highly commended nominees on their achievements.

The night was topped off with a charity raffle, too.

Thanks to some incredibly generous donations, we raised more than £2,500 for Macmillan Cancer Support – a cause

that’s very close to Mike’s family and the hearts of those in the Car Dealer team.

But we’re not resting on our laurels. Plans are currently under way for the 2014 Car Dealer Used Car Awards – and they are big plans too.

In fact, many dealers have already booked their tickets – even though they don’t know whether they have been nominated yet – and some big names in the suppliers world are signing up for sponsorship of various categories – as well as the headline sponsorship of the whole night.

If you’re interested in getting involved with the 2014 Used Car Awards, please email me or contact the team – our details are to the left of this column. In the meantime, you can read the full report of this year’s Used Car Awards and Ewards from p50.

GOOD KOREA MOVE Planning the Used Car Awards took an awful lot of time but James Baggott managed to find a few days to travel to the Far East. He visited the Tokyo Motor Show and drove an exciting Mazda prototype, and then hopped to Korea to experience the world of selling Kias to the Koreans.

He put together some great features – even if we did think he was having a jolly – and you read the fruits of his labours from p36 onwards.

Enjoy the (largest ever) issue.

James Batchelor, editor

Winner: Best Business ‘This magazine brings its readers an insightful, engaging overview of their industry which Publication of the Year entertains as well as informs’ - award judges CarDealerMag.co.uk | 03

Working in partnership with the best in the business That’s why Supagard have been the UK market leaders in paint and fabric protection since 1988. And we’d like to thank our trade partners for their continued support - all those major manufacturers, large and small dealer groups and individual retailers who’ve helped us grow our business again over the last year and made us the success we are today. +HUH¶V WR DQRWKHU \HDUV RI SUR¿ WDEOH SDUWQHUVKLSV

Supagard Limited 19-27 Gavinton Street, Muirend, Glasgow G44 3EF. Tel: 0141 633 5933. Fax: 0141 637 7219

www.supagard.co.uk 04 | CarDealerMag.co.uk

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INSIDE. ISSUE 70 I JANUARY 2014

Dashboard

Car Dealer Forum Car Dealer Club

36

Finance Big Mike

Far Eastern Delights

Baggott Real Deals

Car Dealer goes East to visit the Tokyo Motor Show and finds out how the Koreans sell Kias

34

New Peugeot 308 driven

Forecourt Peugeot 308

2014 Land Rover Discovery 4

Features

Car Dealer chats to Renault Group UK MD Ken Ramirez

35

2013 Car Dealer Used Car Awards

‘‘

& Ewards – full report 5 for 2014 Focus on: BDM Voice

What is there to hide? Why would the SMMT keep this information secret?

Tested: Land Rover Discovery 4

50

Baggott

IN ASSOCIATION WITH

GEN-3 GLASSCOAT

2013 WINNER

USED CARAWARDS IN ASSOCIATION WITH

WHEELER DEALERS

CarDealer

SPONSORED BY

2013 WINNER

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IN ASSOCIATION WITH

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IN ASSOCIATION WITH

GEN-3 GLASSCOAT

2013 WINNER

CarDealer As voted for by dealers, the CarDealer USED POWER Car Dealer Power Awards are AWARDS uniqueCAR in the industry. For back issues, copies of awards 2013 WINNER 2013 WINNER call (023) 9252 2434.

OVED

50 93 104

106 Taking Stock & Buyers’ Guide 108 Commercials 110 Auctions 113 Trader Talk 114 On Track 115 Motor Mouth 116 Crystal Clear 117 Food for Thought 118 Caught in the Net 119 Front Runner 120 Market Insight 121 Suppliers’ Guide & Trader Directory 122 Long-termers 127 USED Time Is Money 130 CARAWARDS

The Car Dealer Used Car Awards, CarDealer sponsoredEWARDS

by Black Horse and held in association2013 with Wheeler Dealers, are the only awards that celebrate the used car industry.

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The Statistics

All the winners revealed in the 2013 Car Dealer Used Car Awards POWER

OUR AWARDS...

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Far Eastern special

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APPROVED CLUB

All suppliers to Car Dealer Club are approved by us. Learn more about the exclusive benefits of becoming a member by flicking to p8 for details.

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Hanging on the telephone

What not to wear

Just another manic Monday What is your busiest day?

WHICH day/days in the week are your best for sales?

Mine is Friday followed closely by Tuesday. Saturdays are always dead for me!

TML CARS LIMITED I SELL only online and make sure that any auction ends on a Thursday, as I always get the most hits to the site Thursday.

Kido

‘How much for my P/X’?

Shirt and tie or the Apple ‘look’?

THE question of a P/X value crops up many times.

When the customer and the car are in front of you, it’s a simple process – you can see the car and value what you see. But how do you deal with the question when it’s made via email or telephone? You can’t see the car and its condition, its spec and which colour it is (they say blue but it could Monaco Blue, Montego Blue or Bluewater). Do other dealers find the inquiry goes dead once they send an approximate value via email? Do you class them as serious inquirers or dreamers?

Gavin@Rousdon

AS a franchised dealer, do you think customers expect to see someone wearing a tie when they’re buying an expensive car? Or have times changed? Is the Apple casual look okay nowadays? williamblackshaw

WE try very hard not to give a price without seeing the car, but have found in the past that the best way to deal with this is you can either offer a range of prices from £x to £y or explain that it is difficult to offer without seeing the car.

jimreidvehicle THIS question always bugs me. We know customers’ understanding of ‘mint condition’ is a million miles away from ours. Simple thing is tell them their car is worth between £50 and top book.

CJ Underhill

OUR sales team always wear jeans and a nice shirt (no tie) with brogues or dress shoes, so ‘smart casual’. It breaks down barriers straight away.

jimreidvehicle I THINK it looks nice when the sales staff look smart.

Company-branded work wear. autoecosse WE are a smallish independent in a fairly rural location and I tend to go for the smart casual look with trousers, shirt and some branded fleeces and polo shirts for the summer. Personally, I wouldn’t feel comfortable dealing with customers in a pair of jeans. I guess it’s a personal choice, but if I were walking into a dealer looking to do business, I would expect the sales person to look the part, not like he was off down the pub for a few beers.

Autolink100

IT’S so, so mixed – there’s no real pattern. I’d say Mondays and Fridays are the busiest days if I had to try and pick. I’ve had some very busy Saturdays but then sometimes I’ve had Saturdays which are totally dead! Maybe I ought to open only on two days – both days would be very busy!

Umesh

Look – no hands!

Should hands-free be banned?

What do you think about the suggestion of banning hands-free car kits? Isn’t the clue in the name?

We will ban changing the radio next.

Cliff Culver Isn’t this an idea by the charity Brake, which, despite good intentions towards safety, seems to come out with the most anti-driver ideas that seem designed solely to take people off the road? The truth is that people are going to speak on their phone in a car no matter what – a hands-free system is the safest way and is no different to speaking to someone sat next to you. I would say a sat-nav is more dangerous than hands-free, as it’s something you look at rather than the road.

Gavin@Rousdon

Twitter threads of the month HERE is just a quick selection of some of the tweets flying around Twitter on the night of the Used Car Awards and Ewards. Obviously we couldn’t include the tweets that reveal the winners, but here’s just a flavour of the good mood of everyone who attended.

Having a great time @theBreweryVenue for the @CarDealerMag #UCAwards 2013 - Fab Venue Fab Company. Darren Williams @DTFWilliams

@CarDealerMag Got cramp holding my stomach in for the photos!

David Smith @DavidKSmith Not a bad night’s work all things considered. @CarDealerMag #UCAwards

Grants SEAT @GrantsSEAT To see what they were talking about and for the full round-up of the Car Dealer Used Car Awards winners and Ewards winners, turn to p50

Picture of the month

The Car Dealer Used Car Award-winners’ photo was photo-bombed. Dan Sellen from Essex Car Company decided to join the winners even though he hadn’t won anything. What a joker . . . so we obviously removed him !

CarDealerMag.co.uk | 07

DASHBOARD. FEATURE.

Ask Lawgistics

Holidays building up

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

Q

A customer bought an eight-year-old car from me and then three months later wanted me to repair a cup-holder that had broken and replace a rubber mat that had worn through. I do get surprised at what customers expect, but in this case I put a new set of mats in the car, although I could do nothing about the cup-holder. Annoyingly, the customer is now threatening to go to the main agent for a new cup-holder then bill me, which will cost the earth. Where do I stand?

A

There are a few issues here under sale of goods law that we need to look at.

Firstly, the car is getting a little tired and I am sure the cupholder and mats were fine when you sold the car.

Both of them, I guess, have merely failed through routine wear and tear, and hopefully a judge would support you and would agree that the car was of satisfactory quality when sold.

Because of the ‘six-month rule’, if it went to court it would be up to you to provide evidence that the car was satisfactory when it was sold, rather than the customer prove it was not.

That evidence is partly provided in that the customer hasn’t complained for three months, but secondly, you might have carried out a recorded PDI that would have spotted the problems. In actual fact, there are two other parts of ‘satisfactory quality’ which are on your side.

Firstly, one aspect of ‘satisfactory quality’ is ‘freedom from minor defects’.

Through case- law precedent, this does not mean that being able to point to any minor defect makes a car unsatisfactory.

So, in the case of, say, the hole in the mat, even if it had been there when sold, it was of insufficient consequence to make the car unsatisfactory.

Secondly, another aspect of ‘satisfactory quality’ is ‘durability’. Here, we can say that it is not unreasonable that items are subject to wear and tear – for example, the cup-holder will eventually fail/break. If you had been selling a brand-new car then the customer would not expect the cup- holder to break so soon, but for an eight-year-old car it is not unreasonable.

The conclusion, therefore, is to fight the claim, if ever it is brought.

.com

Q

I have a member of staff who has been on long-term sick leave since the summer. We are now coming towards the end of the year, when our holiday year also ends. The staff member has just handed in a sick note for a further eight weeks, taking them into 2014. Where do we stand with regard to untaken holidays?

A

The European courts have ruled that holiday pay continues to accrue during periods of absence and can be carried over. Alternatively, an employee can take that leave before the end of the year, in which case you would just pay the relevant number of days as holiday then return to paying sick pay. But this all relates to statutory entitlement and not additional contractual leave that the employer may offer. If you offer more than the statutory amount (20 days plus bank holidays), the additional days will not carry over unless it is mutually agreed.

How soon should I issue a new employee with a contract?

Q

I’ve taken on a new member of staff and have put them on a three-month trial. As I’m not sure how things are going to work out with them I haven’t given them a contract of employment yet.

The staff member says that they should have been given a contract when they started, regardless of any probationary period.

Is this correct?

It is paramount that employment contracts are issued within the first eight weeks of any person’s employment.

A

There are two reasons for this: Firstly, an employee can claim four weeks of pay from their employer when raising any claim at an employment tribunal if a contract wasn’t issued within the first eight weeks of their employment.

This amount can be awarded even if the employer does eventually issue the contract after the eight-week deadline. As such, it is critical that these contracts are issued.

Secondly, employees will begin to accrue a number of statutory rights from their first day

of employment. This means that if you – as the employer – wish to implement any company policy against the employee before it has been confirmed in a contract and it then becomes a problem with that employee, you will not be able to address it.

We have a number of contract templates on our website, for full-time, part-time, and casual employees.

If you haven’t already got contracts in place, or haven’t updated them for some time, it’s advisable to have a look at these templates.

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WHY I JOINED car dealer club WHEN it comes to running a business, it’s always a relief to know that there’s a helping hand just a telephone call away for occasions when things don’t go to plan.

That was the case for Julian Cole, dealer principal at The Diesel Car Company in Southampton, who stumbled across a tricky customer, which eventually turned legal.

Cole had no choice but to seek legal advice – and by using the Car Dealer Club free telephone consultation, he was put straight through to the Car Dealer Club lawyers at Lawgistics, who were able to resolve the situation.

‘Initially, we had an issue with one of our customers just over a year ago, which started to go legal,’ said Cole. ‘We needed to seek advice so we used the Car Dealer Club service and I was able to speak with the lawyers at Lawgistics.

‘Lawgistics was able to offer us great advice and support, allowing us to resolve the problem soon after. It was handled very well and resolved quickly and efficiently.’

Cole said he was so pleased by the help given that he signed The Diesel Car Company up to full Car Dealer Club membership and has since used it to tackle other issues.

‘I was

very impressed with the service,’ said Cole.

‘I decided to sign up the company to Car Dealer Club to receive the full benefits and we regularly turn to them whenever we need support or simple advice.’

Cole believes that Car Dealer Club has become an extremely important tool in protecting his used car business and ensuring that The Diesel Car Company team handles every situation in the correct way, always with a bright outcome.

‘Having the tools and advice on hand to deal with legal issues is very reassuring and proves to be invaluable when it comes to running the business,’ said Cole.

‘I would definitely recommend the service to a fellow dealer.’

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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 extra firepower, and the good news is that Club members receive discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £595) – perfect for sole traders, a partnership or a small dealer group – and £250 off the professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There’s a package for everyone with Lawgistics.

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Bristol Street Motors waves goodbye to stalwart bit.ly/bristolstalwart

Police cracking down on dealers flouting motor trade insurance Know the limitations of your policy, traders urged

P

olice forces across the UK are cracking down on car dealers who flout the terms of their motor trade insurance policies.

Car Dealer Magazine can reveal that the police have launched an intelligence-led operation, dubbed ‘Rogue Trader’, to clamp down on car dealers who are misusing their insurance policies.

‘A startlingly large number of people are under the misconception that a motor trade policy provides insurance cover for the vehicle and that anyone can then drive it,’ said a spokesman for the Motor Insurers’ Bureau in an exclusive interview with Car Dealer.

‘This is not the case and anyone caught driving a vehicle who is not covered by the policy is deemed to be breaking the law.’

The punishment for misusing a motor trade policy is as severe as driving with no insurance. Police can seize the vehicle, issue a £300 fixed penalty, charge £150 to recover the car and £20 per day for storing it, and place six points on the offender’s licence.

Proof of insurance is needed before the car can be collected and seized vehicles that are not claimed in 14 days are sold or crushed. Not very handy if you happen to be driving a customer’s car…

The MIB spokesman said: ‘To comply with the law it is important that dealers

by JAMES BAGGOTT @CarDealerEd

using motor trade policies understand the limitations of their policy. They stipulate exactly what motor use is and isn’t covered under the terms of their policy and if they’re unsure they should check with their provider.’

Dealers should regularly submit information about the cars that need to be covered on their policy so they’re on the Motor Insurance Database. The police use this information to check which cars are covered.

‘Perhaps the most shocking fact for motor traders, affecting their business and their customers, is that if their vehicle is seized by police for no insurance, the penalties and recovery are the sole responsibility of the motor trader,’ added the MIB spokesman.

‘The message to those who are using motor trade policies and who may not be familiar with insurance law is: know the limitations of your policy. These are the legal conditions for using a motor trade vehicle.’

Have your say on this story. Get commenting by logging onto CarDealerMagazine.co.uk/forum

New hatchback is ‘a cracking proposition’ FRENCH firm Peugeot is full of confidence about its new 308 hatchback as it believes the car will be a cracking used car proposition.

A new pricing structure and improved build quality will see uplifts in residual values for the 308, Peugeot believes.

Neil Moscrop, director of sales at Peugeot, told Car Dealer: ‘One of the biggest improvements to the 308 is the change in residual values. Peugeot currently sits second to Volkswagen by less than four per cent in the used car market and this is just by improving the quality and efficiency of our cars.’

Lead attribute engineer on the 308, Ben Hindley added: ‘After three years or 60,000 miles of driving, we can guarantee that the new 308 will be like brand new, therefore keeping used sale prices higher.’

While the improvements in quality will strengthen the 308’s values in the secondhand market, its price-tag on the new car forecourt will also be very appealing.

In fact, the new 308 will sit at roughly £1,500 cheaper than the current model.

‘On average, the current 308 model is £2,000 cheaper than the Golf and the new model will have an even lower list price starting from just £14,495,’ said Moscrop.

Heavisides warranty wonders

Well done all – here’s to another great year

A

s you’ll read elsewhere in this edition, the second Car Dealer Used Car Awards were held in London earlier this month to great acclaim and our congratulations go to all the winners and nominees across all categories. It was another great evening and a fabulous way to round off the year.

It’s always refreshing to recognise success and to celebrate accomplishment in the market place and never more so than when smaller businesses can compete directly with the larger players. These awards are a great leveller and are unusual in letting small dealers run against the bigger sites in specific awards sectors.

2013 has been a tough year but an encouraging one and capping it off with a celebration of the very visible hard work and commitment that dealerships up and down the country have put in over the past 12 months is very fitting.

It’s easy to get caught up in the more negative media stories and we’ve had our fair share of those; I dare say there’ll be more of them in 2014 too.

But it’s equally important to focus on the strength of performance that the car market has drawn upon this year. New car sales are at their highest levels for several years and the used car market has followed closely behind for much of the past 12 months and, despite reports of impending doom in 2014, our market’s had a buoyant 2013.

As the Used Car Awards ably demonstrated, there are plenty of reasons to be cheerful and we’ll be working with dealers across the UK to capitalise on new opportunities and to make the most of whatever the market presents us in 2014. There will probably be some challenges along the way but as an industry, we’re resilient, innovative and customer-focused and no-one’s better prepared to succeed.

The Used Car Awards celebrated all that was positive in 2013; now it’s time to focus on making 2014 even stronger. Happy New Year – let’s make it a great one.

‘2013 has been a tough but encouraging year and celebrating it is very fitting’

Who is Tim Heavisides?

Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products.

CarDealerMag.co.uk | 11

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Mustang comes galloping in Gaetano Thorel, vice president of marketing for Ford of Europe, talks Leon Poultney (somewhat philosophically) through the strategy behind selling the upcoming European Mustang in the UK… How will this car be marketed for a UK audience?

We will not market the Mustang like any other Ford car; it is more than a car so it deserves a different marketing strategy. The Mustang is an icon so you will begin to see it appear in unexpected places and in unexpected scenarios.

Can you see Mustang in every dealership up and down the country or will you be more selective?

The Mustang definitely requires the right space and the right elements for it to be displayed correctly so we will need to be selective with where it appears. The surroundings need to be right and the showroom needs to be able to portray the car in the best possible light.

But saying that, I believe this car will be sold in the digital sphere – a customer will already want the vehicle long before they walk into a showroom.

Personalisation is very important to dealers as a sales tool. Will customers be able to personalise their Mustangs?

It is very early to talk about personalisation programmes but I can say we will definitely have a Mustang merchandising department

that is linked directly to the car. As for bespoke paint and decals, we will have to see.

good with the roof down. It will appeal to so many different people.

Do you have a certain customer profile that fits this car?

No, what I like about Mustang is it is very difficult to pigeonhole a certain type of customer. The car can be suited to the sports enthusiast who really wants to drive the car hard or the businesswoman who wants to look

You are obviously very passionate about the car. How will you ensure this filters down to the sales teams?

We will do everything we can to make sure that the correct training is given to all of our sales staff because, being our halo car, this model will serve to educate the customer to

The cars to get excited about

Ford Mustang

Set to go on sale in 2015, the new European Mustang sees an end to 50 years of waiting for diehard muscle car fans. But to ensure the model resonates with UK buyers, it will come with the choice of either a 2.3-litre EcoBoost engine or a full-fat 5-litre V8. The latter certainly sounds the part and when present in the convertible version. ��| CarDealerMag.co.uk

Ford EcoSport

Any car buff worth their salt will know that small SUVs are currently all the rage and Ford isn’t one to miss out on the action. Step forward the EcoSport, a jacked-up city car with off-road intentions and enough room for five. Ford offered 500 pre-order opportunities on Facebook and every single one was snapped up in 48 hours.

Ford Ka Concept

Forget the Ka of old, this is an all-new proposition that brilliantly fuses everyday practicality, stylish design and value for money.

Ford promises an unrivalled amount of future technology, highly economical engines and room for five all crammed inside a city-friendly super-mini.

Saab production resumes in Sweden bit.ly/saabback

bold target

Ford aims for 1m new customers

all of the features that appear in our other models. We want customers to know that all of the technology on Mustang can be found in other products. It is the ultimate Ford in that respect.

Why did it take you so long to bring Mustang to the UK? Simply because the company is now

ready to launch something like this and secondly, because the car is now ready for the UK. We have listened to the customer’s needs, specifically in terms of dynamics and engines. Ford could have easily brought over small amounts of Mustangs like Chevrolet did with the Camaro but we wanted a car that actually appealed to the UK and European markets. It has the right suspension, economical engines and all of the technology that the UK market demands – it is the complete package. But we are not just selling Mustang to sell Mustang, we are selling it to show the

capability of Ford and prove that the brand is going in new directions and that is important in the UK market.

Do you think customers will be put off when taking their Mustang to the same garage that deals with Fiestas?

Not at all, the technology inside this car is pure Ford. All of it can be found in many other products we create.

I personally think it reassures the customer to know that they can take the car to any local dealer and have a professional service without paying the premium.

Ford: State-of-the-art technology that people want will sell our cars Barb Samardzich, chief operating officer at Ford Europe, believes that cutting-edge technology is integral to creating cars customers want.

‘Our 1.0-litre EcoBoost engine has already saved over a million tonnes of CO2 when compared to our old engines but I think we can do more,’ she told Car Dealer.

The future of Ford is going to be about connectivity and not just because motorists will be soon able to access applications such as Twitter and Sky Sports from within their cars, but also because their cars will one day be able to ‘speak’ to each other.

‘Next generation driving technology is already heavily underway,’ explained Barb. ‘We have already created a system that allows one of our models to take over driving duties when the traffic is crawling, allowing the person behind the wheel to relax and then take over when traffic moves off.’

It may sound like science fiction but Ford has already demonstrated models that can literally park themselves – building on the Park Assist functionality that the marque currently offers. The driver only has to step out of the car, press a button

and let the vehicle do all of the work.

‘Safety is always a huge concern with many customers and we want to make sure we are always at the forefront of new safety technology,’ said Barb.

‘You’ll be hearing more about Automatic Obstacle Avoidance in the coming months – it’s our new system that can scan the road for up to 200m ahead and warn the driver of any upcoming obstacles.

‘It can even go so far as to steer the vehicle to safety should an emergency situation present itself,’ she added.

Leon Poultney (@Blokesincars)

FORD is set to continue the global trend for SUV production with the launch of not one, but three new ‘soft-roaders’ over the coming years.

At a European event dubbed Go Further, Ford unveiled the EcoSport, updated Kuga and the upcoming Edge vehicle in a show of solidarity for the jacked-up ride height and beefed-up exterior of the SUV segment.

Jim Farley, executive vice president of global marketing and sales at Ford, said: ‘The SUV segment is the fastest growing in Europe and customers of these vehicles want a premium product, allowing us to offer more upmarket choices in the future.’

First to be revealed was the smaller EcoSport model – a sort of beefed-up Fiesta with increased ground clearance and a spare wheel attached to the rear door.

According to Ford, there is ample room for five adults inside, yet the car will deliver firsts in the segment, such as a class-leading wading depth and an ultraefficient engine line-up.

Next in line was the new Kuga, which Ford hopes to shift 100,000 models of in Europe alone next year, thanks to the stylish exterior and unexpectedly premiumfeel interior.

Lastly, the Edge Concept will offer ‘unparalleled levels of luxury’ for a car in its price bracket when it comes to market in 2015.

The vehicle, previewed at the LA Auto Show, will sit at the very top of the Ford SUV range and feature new technology such as autonomous parking and obstacle avoidance that automatically steers the car out of impending danger.

Farley added: ‘Ford expects to welcome one million new customers to the Ford family over the coming years and we feel, especially in Europe, that an attractive range of SUVs is the way forward.’

CarDealerMag.co.uk | 13

��| CarDealerMag.co.uk

DASHBOARD.

Honda Tourer set to boost Civic sales bit.ly/Tourerboost

Future of Chevrolet network unclear as brand will disappear from Europe ‘There’s no need to panic. We’re not closing our doors any time soon,’ says company

G

eneral Motors has announced it will pull the Chevrolet brand from Europe.

GM will drop Chevrolet by the end of 2015 in order to focus its resources on the Opel and Vauxhall brands, which continue to struggle in the European market.

The company said Chevrolet will no longer have a mainstream presence in Western and Eastern Europe, due to the difficult economic climate. Sales volumes of Chevrolet vehicles in Europe have hovered around 200,000 cars since the brand was re-launched in 2005.

GM chairman and CEO, Dan Akerson, said: ‘Europe is a key region for GM that will benefit from a stronger Opel and Vauxhall presence and further emphasis on Cadillac.

For Chevrolet, it will allow us to focus our investments where the opportunity for growth is greatest.’

Thomas Sedran, president and managing director of Chevrolet Europe, added: ‘Our customers can rest assured that we will continue to provide warranty, parts and services for their Chevrolet vehicles, and for vehicles purchased between now and the end of 2015.’

by JAMES batchelor @JRRBatchelor ‘Chevrolet’s business results in Europe were unacceptable,’ GM vice chairman Stephen Girsky told the agency Reuters. ‘It’s a one per cent share company. Meanwhile, we are gaining more and more confidence with Opel and Vauxhall.’

Girsky added that Chevrolet’s seven-year sponsorship deal with Manchester United – worth approximately £342m –remains unaffected.

‘We always looked at Man Utd as a global deal,’ he told Reuters. ‘They’re exposed around the world, and Chevrolet will be exposed around the world.’

Dean Bowkett, technical director and chief editor at EurotaxGlass’s Group, said: ‘Our contacts at Chevrolet have assured us that they are planning an orderly close down, over an extended period.

‘We have also been informed that stock levels are already low which will negate the need for any fire sales from the brand during the transition period.’

He added: ‘Different countries will react in different ways as the brand has had varying levels of success across Europe. The stronger the brand is in a country, the more damaging this news is going to be for RVs.’ However, the immediate future for Chevrolet UK’s dealer network is, at the moment, unclear.

As this issue of Car Dealer went to print, Chevrolet told us its national sales team had contacted every dealer and explained what the announcement meant.

A spokesperson told us the immediate future for Chevy dealers and customers was safe, adding: ‘There’s no need to panic. We are not closing our doors any time soon.

‘We have contractual obligations which we will be abiding by, and we will be fully supporting our authorised repairers.’

Around 70 per cent of Chevrolet’s network is dual-franchise with Vauxhall – the American brand will be speaking to the remaining solus dealers ‘over the coming weeks and months’.

Discussions are under way that might result in General Motors continuing to sell North American-derived vehicles in Europe, including the UK, but nothing has been confirmed yet.

Have your say on this story. Get commenting by logging onto CarDealerMagazine.co.uk/forum

CarDealerMag.co.uk | 15

DASHBOARD. ROAD TAX

End of the road for the tax disc THE good old paper tax disc has been axed as part of proposals laid out in Chancellor George Osborne’s Autumn Statement.

The tax disc was introduced in 1921 but now the DVLA and police will rely on an electronic system.

Drivers will be able to pay the annual charge via a monthly direct debit.

Jonathan Evans, PwC tax partner, said: ‘This will make things easier administratively.

‘However, there will be people who don’t have access to electronic payment systems or computers so provision will be needed for these people to tax their vehicles.’

REFURBISHMENT

Hartwell gets up-to-date HARTWELL plc has announced the completion of its £1.5m refurbished multi-franchised dealership at Kidlington Motor Park near Oxford.

Kevin Godfrey, managing director of Hartwell plc, said: ‘The Kidlington Motor Park dealership is one of a number of projects aimed at increasing our representation and scale.

‘We’re delighted to bring this additional choice to the Oxfordshire market and further expand our commitment to our customers.’

As many as 100 special Evos might be heading for the UK, says Mitsubishi boss A number of dealers have already taken orders, reveals MD

M

itsubishi dealers are desperate to get their hands on as many specialedition Evo models as they can, says the UK MD. Boss Lance Bradley recently tweeted that he was thinking of bringing in a small run of Evo special-edition models next year – and ever since, dealers have been hassling him for more details.

Speaking to Car Dealer at the Tokyo Motor Show, Bradley revealed that if he can negotiate a decent deal with the MMC, he may bring as many as 100 into the UK next year.

‘We originally planned to bring in 40 as it’s Mitsubishi’s 40th anniversary in the UK next year,’ explained Bradley. ‘But since then, I’ve had a number of dealers calling me to say they’ve already got orders.

‘Our newest dealer in Peterborough, who ditched Subaru to join Mitsubishi, told me he has 10 orders already and could have 20 if the price is right!’

That dealer had only been a Mitsubishi franchisee for a month, but Bradley said his database of Subaru buyers made for rich

by JAMES BAGGOTT @CarDealerEd

pickings. The biggest stumbling block at the moment, said Bradley, was the price of the car – but if he can secure a decent deal he’ll order more than the original plan.

All will come to the UK with a standard 280bhp and when they arrive, Mitsubishi UK may decide to boost their power further.

The FQ400 kit was always installed when the Evo models arrived here.

‘An FQ400 was £50k which is quite a lot, so it depends what we secure them for as to what we do with them when they arrive,’ said Bradley. ‘A 350bhp version for around £35k may sell more.

‘In the real world they were all pretty quick anyway. I know it’s exciting to have a car that’ll do 60mph in 3.5 seconds but in realworld driving, 350bhp is just as quick.’

The Evo 10 was taken off sale around a year ago as market conditions dictated slow sales and

new model

Audi cues up new mini SUV AUDI has confirmed that a new SUV model will be produced at its Ingolstadt plant in Germany from 2016.

Named Q1, the new SUV will strengthen the company’s international competitiveness, Audi said.

Audi has produced and delivered more than 1.5 million Q models since the market launch of its first SUV, the Q7, in 2006. ��| CarDealerMag.co.uk

Have your say on this story. Get commenting by logging onto CarDealerMagazine.co.uk/forum

depressed interest. It’s extremely unusual for a car to make a comeback in exactly the same guise – but if any car can do it, it’s this Evo. ‘It still has a cult following and for many the chance to have one of the last of the lot will be very tempting,’ explained Bradley.

A replacement model has been discussed by the manufacturer, but it’s a long way off yet. Bradley explained it could use the manufacturer’s pioneering plug-in hybrid technology too, meaning next year’s batch of Evos could be the last chance for purists to own an ‘analogue’ version.

‘A PHEV Lancer Evolution is entirely possible – a performance hybrid is not out of the question in the future,’ he explained. ‘But you’re right, this could be buyers’ last chance to get a traditional internal combustion engine model.’

Dealers better get those deposits in fast then… n Mitsubishi are looking for new dealers across the country.

For more information contact the firm’s network development team on 01285 647714.

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Renault reveals its five-year growth plan as it passes a significant sales milestone ‘There is a large amount of positivity in the network at the moment’

EXPANSION

£800k spend for Wolsey VW THE Suffolk-based dealership Wolsey Volkswagen is investing £800,000 in order to upgrade and expand its showroom facilities.

The expansion will allow the dealership on Sproughton Road in Ipswich to display a wider selection of vehicles from the Volkswagen range.

The work is expected to be complete by March 2014.

Tim Hargreaves, brand manager at Wolsey VW, told EADT24: ‘We continually review our services and facilities to ensure we provide a high level of service, so felt the time was right to expand our offering.’

MANUFACTURING

Oxford signs off Mini hatchback

R

enault has exclusively revealed to Car Dealer Magazine its growth plans for the next five years.

Called Go 5+, the mid-term plan has been signed by the French firm’s UK dealer network and is designed to bring significant growth and enhanced profitability to the franchise. Renault agreed the plan earlier this year, but chose to reveal it exclusively to Car Dealer once it had passed a milestone.

‘That milestone occurred in October when total group sales for Renault were 59,058 units – surpassing the 2012 Renault full-year total registrations of 55,685,’ Renault UK managing director Ken Ramirez told us.

For the 10-month period of January to October, Renault and Dacia UK car sales increased by a record 46.1 per cent to 49,154 units – up from last year’s total of 33,640. Meanwhile, retail car sales for the Renault Group for the same period jumped

industry average; position Renault in the top 10 of the JD Power Customer Satisfaction Survey, and see Renault break into the top 10 in the a record 75.7 per cent to a 3.4 per cent Global Opinion rankings – market share. all by 2017. Renault calls the plan ‘That October milestone ‘a win-win strategy with clear benefit demonstrates that we are growing. to all parties’.

A lot of manufacturers say they will ‘We’ve had ups and downs but this grow but it’s quite different when year we will be solidly profitable,’ you have proof to show you actually Ramirez told us. ‘But we want to be are growing. We’ve waited until top tier and above the average which this milestone to be able to declare is about 1.9 per cent. clearly that we are committed to our ‘We have identified we need to customers, our network partners and improve our consistency when it we are here to grow. This five-year comes to the customer experience. plan is clearly being executed and we We haven’t always been consistent so are delivering on it.’ we are putting a lot of emphasis on The Go 5+ plan aims to deliver a this area.’

Renault Group UK market share – Ramirez added: ‘Next year we will which includes Dacia and Renault be increasing the number of dealers Vans – of five per cent-plus; top tier in our network and aiming to improve network profitability that is above the the dispersion that we have suffered from in recent years. We have a lot Have your say on this story. Get to do with the network – but there commenting by logging onto is a large amount of positivity in CarDealerMagazine.co.uk/forum the network at the moment.’

by JAMES batchelor @JRRBatchelor

THE very last model of the current Mini hatch has been driven off the production line at Plant Oxford.

Leading up to the big launch in spring 2014, production of the allnew Mini hatch is already underway at the historic site in Oxfordshire.

Between 2006 and 2013, 1,041,412 outgoing Mini hatchbacks have been produced at the facility, while more than 2.4m Mini vehicles have rolled off the production line since 2001.

Some 14 per cent of all cars built in the UK in 2012 were Minis.

FUNDING

Lotus secures £10m grant LOTUS has secured a major £10m government grant creating new jobs and facilities.

The British sports car brand was awarded a £10.44m grant from the Regional Growth Fund, which will be used to enhance research, product development and staff training. It follows a £100m investment by its owners DRB-HICOM earlier this year.

CarDealerMag.co.uk | 19

DASHBOARD. Jaguar Land Rover factory builds 1m cars JAGUAR Land Rover is celebrating the production of its 1,000,000th vehicle at its Halewood manufacturing facility, near Liverpool.

The landmark car is a unique Range Rover Evoque painted in a one-off colour combination of Fuji White with a contrasting Firenze Red roof. It will be donated to Cancer Research UK in preparation for a special car auction event in 2014, which will see all funds raised go to supporting projects in the North West.

Global demand for the Evoque exceeded expectations with 18,000 advanced orders before production began in July 2011. Continued demand for the Evoque and growing sales of the Freelander 2 means this production milestone was achieved earlier than predicted.

Verve comes to the end of the road Scottish dealer group goes into administration

S

cottish motor group Verve has gone into administration.

Verve operated Volkswagen Commercial, Peugeot, Kia, Mazda, Seat, SsangYong and Citroen franchises and, according to the company’s website, employed more than 400 people.

Citroen told Car Dealer that any customers concerned about the situation can call their customer services line on 0844 463 3500.

Peugeot is also directing customers to its customer relations line on 0845 200 2500, adding: ‘Peugeot will take ownership of any outstanding issues and all outstanding orders will be dealt with through an alternative outlet.’ The Verve business was established in 1998 with dealerships in Glasgow and Wishaw in Lanarkshire, and more recently the group added former ‘Motorway Cars’

dealerships bringing Peugeot, Citroen and Kia into its portfolio.

Verve’s website describes the business as ‘the fastest-growing and most progressive automotive retailer in the country’.

Jim Reid posted in the Car Dealer Forum: ‘It just goes to show that the job is still very hard and unless you focus 100 per cent on it, it is very easy to lose the place and in this case your business! ‘This part of central Scotland has always been a difficult one to deal in as there is a distinct lack of money. This along with years of very difficult trading conditions, has obviously taken its toll.’ Eastern Western MD wants Verve employes to apply for jobs, right Have your say on this story.

Get commenting by logging onto CarDealerMagazine.co.uk/forum

OPPORTUNITIES

Eastern Western offers jobs to Verve workers FOLLOWING the meltdown of Verve, Eastern Western Motor Group is recruiting a number of employees.

Eastern Western operates more than 30 businesses across Scotland and northern England and is looking to expand in 2014, opening up a variety of different roles across the group.

MD at Eastern Western, Keith Duncan, told Car Dealer: ‘We are looking to further expand the business. ‘This means there is a large number of vacancies available. Any ex-Verve employees looking to secure a role within a stable, well-funded and wealthy business should write to us.’ Contact Kim Gilfillan, HR Manager, 8 Westerton Road, Broxburn EH52 5AU.

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DASHBOARD. Brookside Ltd sells out to Vertu Motors VERTU Motors has bought Brookside Limited, which operates three Volkswagen dealerships in Nottingham and Mansfield.

The acquisition cost a total amount of £4.7m, including £1.6m of goodwill.

It follows Vertu’s acquisition of the Boston and Lincoln VW dealerships in July 2013, and increases the group’s number of sales and aftersales outlets to 104.

Vertu boss Robert Forrester said: ‘Nottingham and Mansfield are important centres where Vertu already represents several manufacturer partners.

‘Adding Volkswagen to this list will further strengthen our business.

‘We are continuing to develop the Group by adding to existing franchise relationships and exploring new manufacturer partners.’

��| CarDealerMag.co.uk

Marshall Motor Group buys up Grants Seat Dealership becomes group’s first Essex business

M

arshall Motor Group has acquired Grants Seat in Braintree.

The acquisition will see the total number of Volkswagen businesses in the Marshall portfolio rise to 15 – up from just one in 2008.

Meanwhile, the new outlet will become the third Seat business for Marshall with its two other sites in Leicester and Cambridge.

Based on the edge of Braintree, the new dealership will be the very first Essexbased business for Marshall and is set to continue the group’s expansion, in which it’s now represented in 17 counties across the UK. All 20 employees in the former business have transferred to Marshall including the managing director Darren Williams who will report to Marshall franchise director

David Waghorn for the VW business.

Daksh Gupta, chief executive at Marshall Motor Group, said: ‘We are delighted to have completed the acquisition and to be strengthening our relationship with the Volkswagen group in line with out strategy to grow with our core brand OEM partners.

‘I am looking forward to meeting personally all of our new colleagues and to welcoming them into Marshall. This site has picked up a number of important awards since it opened and we are delighted that it is now part of our group.’

Neil Williamson, managing director of Seat UK, added: ‘We look forward to working with Daksh and his team in Braintree.’

Have your say on this story.

Get commenting by logging onto CarDealerMagazine.co.uk/forum

COURT

Suspended jail for dealer who misled buyers A BIRMINGHAM-based car dealer who tricked customers into buying insurance write-offs has been handed a four-month suspended prison sentence.

The second-hand dealer, Peter Robinson, of The Hurst, Birmingham, was caught trying to trick drivers into buying former write-offs while running the Midland Ford Centre on Warwick Road in Tyseley.

According to the Birmingham Mail, both he and his business were found guilty of five charges of misleading customers by omitting the VCAR notification from adverts.

At Birmingham Crown Court, Judge Andrew Menary QC also ordered Robinson to pay £6,000 costs. His company was fined £2,500.

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dashboard.

Around the world Dealer news from somewhere other than here

GERMANY

Toyota says it won’t reach its sales target of 80,000 cars in Germany in 2013, because of a failure to keep up with the demand for hybrid-powered cars.

However, the manufacturer is still confident it will reach approximately 78,000 sales. Hybrid cars make up around 40 to 60 per cent of the brand’s overall sales.

CHINA

Volvo Cars expects to exceed its sales target in China in 2013. An expanded dealer network and broadened product range helped fuel a 50 per cent sales increase in November compared with the same period a year ago. Volvo sold more than 5,000 cars in China in November and has sold 48,000 cars in that market so far in 2013.

ITALY

According to Fiat, Italy’s car market shows no signs of recovery, after car sales fell by 5.58 per cent in October from a year ago, while sales rose in France, Spain and Germany. Italy accounts for 10 per cent of Fiat’s volumes in Europe, and the brand’s market share in Italy remains between 28 to 30 per cent. However, Fiat is confident that it will break even during 2015 and 2016.

SOUTH AFRICA

Strikes by the South African Transport and Allied Workers Union are affecting dealer deliveries in the country. More than 4,000 union members have walked out in support of a 15 per cent wage increase, delaying the shipments of vehicles. In one case, the industrial action has cost German manufacturer BMW 13,000 cars in lost production.

INDIA

Mercedes-Benz has exceeded its sales target for 2013 and is likely to cross the 8,500 mark by the year’s end, reflecting a growth in the sub-continent of more than 20 per cent. Not only has Mercedes-Benz regained the number two slot from BMW India in yearly sales, the German firm took the number one slot from rival Audi in the monthly sales chart as well.

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FINANCE. SPECIAL OFFER

Alfa celebrates 90 years of spicy models ALFA Romeo is celebrating – and that means there’s a great offer available for customers.

The Italian marque is marking 90 years of is Quadrifoglio Verde (Cloverleaf) symbol and, as such, is allowing customers to take advantage of a cracking offer on one of its hottest models.

Customers can save up to £2,000 on the topof-the-range Alfa MiTo Quadrifoglio Verde. Priced from £16,995 on-the-road, this celebratory Alfa MiTo Quadrifoglio Verde offer is available to cash, hire purchase and PCP retail customers subject to terms and conditions.

Powered by Alfa Romeo’s award-winning 1.4-litre TB MultiAir engine, the 170bhp Alfa MiTo Quadrifoglio Verde can sprint from 0-60 mph in 7.3 seconds and top 136mph while at the same time deliver 47.1 mpg on the combined fuel economy cycle and CO2 emissions of just 139g/km.

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Buyer stock funding service from BCA aims to make buying and selling easier Service offers exclusive line of credit for dealers struggling to secure financial support

B

CA has launched its new buyer stock funding service, which offers an exclusive line of credit to dealers who struggle to secure financial support.

The new service offers credit to independent car and van retailers as well as small car supermarkets and individual dealers who struggle to secure financial support from the banks and other traditional lenders to fund their purchases.

The first customers to use BCA Vehicle Finance Limited were a southern-based LCV specialist and a car dealer based in East Anglia that both bought vehicles in early November. The launch coincided with research into BCA’s buyer base that found that nearly a third of small independent dealers fell into this category. BCA Vehicle Finance Limited offers up to 120-day terms on vehicle purchases at its auction centres to an agreed limit, and funds 100 per cent

of the purchase cost plus fees.

The new service is headed up

by Andrew Shaw, who joined BCA after leaving his former role as financial director at autoXP, the specialist automotive service provider to manufacturers’ corporate demonstration and press fleets.

Spencer Lock, BCA’s managing director, said: ‘Even at a time when the used vehicle sector is experiencing a lot of demand, lack of access to finance is still a major concern for a number of smaller independent motor retailers.

‘Many simply cannot get funding because business lenders do not understand the specific requirements of the motor trade, and underwriters

are wary of the exposure. BCA has addressed this issue with the launch of BCA Vehicle Finance Limited, a move that has been welcomed by our customers.’

He added: ‘We know many of these dealers exceptionally well, as they have trading accounts with us – often of many years’ standing.

‘As the scheme is linked into the vehicles that are effectively the lifeblood of the industry we see this as a win-win situation.

‘Small dealers can take advantage of the buying opportunities at BCA to meet the needs of their retail customers, while our sellers will benefit from enhanced buying power at the point of sale.’

FLA: Used car finance market ‘on target’ to beat records RECENT figures released by the Finance & Leasing Association (FLA) show growth of 16 per cent in the number of consumer used cars bought using dealer finance in October 2013 compared with the same month in 2012, contributing to a rise of 14 per cent over the past 12 months to almost 890,000.

The rate of growth in the number of new cars bought by consumers using

dealer finance was four per cent, but volumes were up by 15 per cent in the three months to October compared with the same period last year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘The used car finance market has reported strong growth since April of this year. It’s on target to record its highest level of annual new business volumes in more than a decade.

‘Growth in the consumer new car finance market was in line with the increase in private new car sales in October and follows a particularly strong performance in October 2012, when volumes increased by 40 per cent.

‘The percentage of private new car sales financed by FLA members in the 12 months to October 2013 remained steady at 74.2 per cent.’

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KIA’S Sportage is now available with a 4.9 per cent APR representative, and as Christmas approaches, it’s the ideal car to hold the heavy loads of shopping, while transporting family to festive gatherings.

Along with a stylish bold design, the Sportage carries essential SUV credentials to tackle family adventures, while combining the comfort and versatility of a family saloon.

With a price tag starting from £17,495 for the Sportage 1 1.6 CRDi, buyers will benefit from low monthly payments of £255 over a 36-month payback period when they put down a deposit of £3,690.50.

Buyers will also get complete peace of mind on the road thanks to Kia’s sevenyear, 10,000-mile warranty package.

HONDA CR-V HONDA’S CR-V 1.6 diesel is on sale with a zero per cent APR representative, which also comes with a five-year complimentary service plan.

Buyers can drive away in the five-door 1.6-litre diesel for just £239 per month over a 37-month payment period. This is based on a 10,000 annual mileage agreement and a customer deposit of £5,849.71.

Priced at £23,300, the CR-V has an average combined fuel consumption of up to 62.8mpg, so drivers won’t need to worry about making too many stops at the fuel

pumps, and it emits just 119g/km of CO2.

It’s spacious too. When the seats are folded flat there’s a generous 1,648 litres on offer.

MAZDA CX-5 MAZDA’S CX-5 is now on the market with an attractive 5.9 per cent APR representative finance package.

For a customer deposit

of £5,691.50, the CX-5 148bhp 2WD SE-L diesel means buyers will only have to pay £279 per month over a 42-month payment period.

The CX-5 comes well equipped with 17-inch alloy wheels, front fog lights and front and rear parking sensors, as well as a number of driving assistance features such as smart City Brake Support.

The CX-5 has a combined average fuel consumption of 61.4mpg and emits just 119g/km of CO2, which gives it a group C tax band.

time is money

O

ver the past two months I’ve written about how important it is for car dealerships to put the individual needs of each and every customer at the heart of everything that they do.

You’ll be aware that everyone who works in your organisation has a focal point and that focal point directs their thinking and their behaviour towards your customers. What this means is if your staff are focused on the wrong things then your customers will not get the kind of service that they really deserve and would encourage them to come back again and again. It’s also pretty certain that they won’t rush to recommend you to their family or friends.

Now, some may argue that getting recommendations from family, friends or even social media doesn’t sell that many more cars, and while this statement may be true for a few car dealerships out there, it would be wise to consider that one unhealthy comment in the wrong place will send many potential customers elsewhere.

One of the biggest competitive advantages any business can succeed in creating is in making every customer contact an enjoyable experience. This direct contact can be by telephone, by email or more usually by a visit to the showroom.

This issue is vitally important to car dealers because having the wrong focal point will mean losing business to competitors who willingly place their customer’s experience first and foremost in the minds of the staff.

One final thing: consistently delivering an outstanding customer experience isn’t about increasing people’s sales skills or issuing more regulatory guidelines for them to follow, it’s about creating a focal point that promotes a ‘customer first’ environment and puts the needs of every individual customer ahead of everything else.

‘One wrong comment will send customers elsewhere’

Who is Jim Meldrum?

Jim is regional sales manager for First Response Finance. Call him on 07917 460 111 or email Jimm@frfl.co.uk

CarDealerMag.co.uk | 27

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big mike.

I

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

Since when was a Rover worth more than a Merc?

t’s a tale of two cars this month, and real proof of how the mighty have fallen. Both of the two cars in question arrived on my lot as part-exes last month and both were a little different from my normal trade-in stock but were nevertheless pretty easy to sell and worth taking on the books, albeit at the cheaper end of the market.

Quite often with older or less desirable cars, a quick ‘trade sale’ ad in the local rag if they look half respectable does the job of getting rid of them. Those that are just too ugly or nasty to contemplate selling go one of three ways: if they’re revolting they get scrapped; if they’re shabby but usable they get driven to the auction as an alternative to a taxi, shoved through the block and I drive home in something else; or if they’re plain comical they usually end up being my daily transport until the tax expires, at which point one of the two aforementioned options comes into play.

With these two, though, none of the above seemed appropriate. We’ll start with car one. The vehicle in question was a 1994 Rover 214 SEI, finished in metallic Nightfire Red. I remember flogging these when they were nearly new, as they were a perennial favourite of Daily Mail-reading Middle Englanders. The SEi had half leather trim, some stately-looking alloys, metallic paint, power steering, leccy windows and a sunshine roof, which were enough to sway even the most discerning of Hyacinth Buckets into parting with their husband’s hard-earned. That and the incongruous chrome grille that Rover insisted on bolting on to the snout of the later models meant they were an easy sell, not least because these were the days before it became apparent that further down the line most of these engines would eat their own head gasket for lunch.

The one that came in was from a trilby-wearing gent who had decided it was time for something a little smaller – I duly obliged by putting him behind the wheel of a five-year-old Corsa, and he was pleasantly surprised that my part-ex offer was a fairly decent £500.

Now, before you all think I’m off my trolley and call the nearest nurse, allow me to justify that. Not only did I have a pretty decent chunk of margin in the Corsa and the customer was far too much of a gentleman to haggle, but the old Rover was a genuine 35,000-mile-from-new example with all the books.

Unscuffed alloys, nearly-new tyres and a receipt for a new, properly-designed head gasket fitted just 12

Big Mike Our man on the inside spills the beans on the car business...

months earlier made me think I might just make a few quid on the side with this one, so let’s come back to it in a minute.

Car two was another customer wanting to switch into something a little smaller, though this time he was coming from a car that couldn’t really get much bigger. A 2000 X-plated Mercedes-Benz S500L with 150k on the clock and quite a few toys that were never on the ‘standard’ models meant that this car, which came with its original bill of sale, had set its original owner back a cool £76,500. As I waved the new owner off behind the wheel of a tidy, low-mileage Volvo S40, I felt pleased as punch that I’d been able to haggle the Merc off him for just £1,200. A lot of car for the money, you may say.

So what happened next? First up, I had a look on various car sales websites only to realise I’d paid near book for the

‘It had enough to sway the most discerning of Hyacinth Buckets’ bloody thing. How on earth could such a beautiful, wellmade and superbly-presented motor car be worth so little?

I put it in my ad for a rather paltry looking £1,795 and two weeks later waved goodbye to it for £1,550.

Next, the Rover. A quick look at the same websites made it ridiculously hard to value. From what I could see, it was worth somewhere between a bag of peanuts and a bag of sand. So I did the only thing possible and put it up on that well-known colourfully-branded auction website, with a gushingly lyrical description that majored on its history, low mileage and ‘desirable’ colour and spec.

You could have knocked me over with a ten pound note when the auction closed a week later at £1,551.

A bag of peanuts more than my lovely Merc had sold for – to a slightly bolshy local businessman – had found the old dog heading off to a new home with a youthful Austin Rover nutjob from 200 miles away, who paid me instantly by PayPal and collected it within 24 hours, beaming from ear to ear about what he called an ‘incredible find’. It takes all sorts in this game, it really does. And while I much preferred the grand’s worth of profit that I didn’t expect to make on the old 214, I know which of the two cars I’d rather have spent my own money on . . . Funny old world.

Who is Big Mike?

Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

CarDealerMag.co.uk | 29

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bAGGOTT.

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

Shouldn’t the SMMT come clean about what’s really going on?

N

ew car sales are at their highest level for five years, shouted the BBC News website in October, reporting on the SMMT’s allimportant 63-reg September registrations which had broken records. Again. Take a look a few pages further on in this magazine and you’ll see that we’re carrying another report on the SMMT’s monthly registration figures, this time for November, showing yet another rise. Okay, it’s not increasing at quite the same meteoric rate but still more new cars are apparently finding buyers.

The SMMT is so confident about the new car market that it’s even raised its forecast for sales in 2013 from 2.22m units to 2.25m. That’s back to the heady days pre-recession.

If all is to be believed, we’ve now seen 20 months of continued rises in registrations. Twenty months!

Apparently, according to the SMMT’s chief executive, Mike Hawes, it’s PPI payments bolstering buyers’ bank balances and ‘robust private demand’ that is making sales surge. But is it? Is it really, Mike?

If that’s true, and the figures stack up, why is the SMMT so secretive about the numbers? Why, despite me asking the same question four times, has the SMMT refused to give me an answer?

I wasn’t asking for the meaning of life, or why Vauxhall hasn’t made a car worth buying for years (no one, quite honestly, knows the answer to either). No, what I was asking was a simple question about registrations: What day of the month do the most cars get registered on? Simple query – but one to which I was flatly refused an answer.

I know car manufacturers already get this detail – because I’ve seen it. Car firm bosses are given daily reports on registrations by the SMMT, charting sales of every manufacturer. The detail is out there – so why the secrecy?

‘I am afraid we’re not able to help – we only publish registration figures at the end of every month,’ said an SMMT spokesman.

Okay, so why is that?

‘It’s just the way our members like us to operate,’ said the email reply.

What is there to hide? Why would the SMMT keep this information secret from the wider public? Could it be that, perhaps, a huge amount of the month’s registrations appear on the last day? And could that be because manufacturers are forcing volume into the market, coercing dealers into registering cars with big discounts – something more commonly known as pre-registrations?

We all know pre-reg is happening – and happening in

James Baggott *EDITOR’S NOTE: You’re not the only one that’s wondering*

a big way. I’ve spoken to a number of dealers who’ve told me so and even been present in their offices when a big manufacturer rep calls offering them a boatload of cars with £5k off if they’re registered within the next five hours.

I’ve spoken to sales directors, too, who’ve told me it’s going on – and more manufacturers are guilty of it than would ever admit.

So what’s the big deal? Why does it matter that preregistrations are taking place and on such a large scale?

Well, because like crystal meth, it’s a drug that’s highly addictive, has only short-term gains but lots and lots of long-term pain.

‘Once you get in the cycle of pre-registering cars to hit targets it’s an ever-decreasing circle,’ one dealer principal told me. ‘You register a load to hit your target, then you’ve got to sell them quickly the next month to catch up. It’s hard to sell a new car when the buyer can see you’ve got exactly the same one with 10 miles on the clock on the

‘Doesn’t that give people a false sense of economic recovery?’ forecourt at a £5k discount. So he buys that one, you miss a new car sale and at the end of the quarter you need to do it all over again. It’s madness.’

How dealers and manufacturers choose to do business shouldn’t be anyone’s concern other than their own. Unless – and this is the case here – it’s misleading the public.

While the motoring press might have an idea of what’s going on, the mainstream media certainly don’t.

The Daily Mail reporter or the junior from the BBC trots out the corporate line from the SMMT, one that doesn’t reflect the true facts or what’s really going on, and where do you think the monetary policy-makers, the government, and the economists get their information?

If they’re not in receipt of the whole facts, if they think the car market is booming when in fact it’s simply plodding along nicely, doesn’t that give people a false sense of economic recovery? I think it does and I think the SMMT should come clean.

‘Others have asked the same underlying questions as you of late – all have had the same reply,’ said the SMMT communications chief.

So it’s not just me that’s starting to wonder what’s really going on. I think it’s time they came clean – don’t you?

Tweet me @CarDealerEd and let me know.

Who is James Baggott?

He’s the founder of Car Dealer Magazine and managing director of parent company @BlackballMedia, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us.

CarDealerMag.co.uk | 31

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REAL DEALS.

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Rally-ready Escort is far from being retro Much-modified Escort three-door would be perfect for a budding rally driver, says Sophie Williamson-Stothert

E

veryday road cars that are also suitable for a quick blast around the race circuit aren’t commonly found on dealership forecourts, but that doesn’t stop the occasional dealer getting hold of one.

Independent car dealer John Guess recently discovered quite a cracker. Originally registered as a standard 1.3-litre in 1980, this smart-looking Ford Escort was later turned into a fully race-prepared 2.0-litre track car just four years ago.

‘It started life as an innocent 1.3-litre Escort before my friend, who I’m selling the car on behalf of, commissioned to have the car completely rebuilt at Mercury Classic Cars in Scotland,’ said Guess, who is based in Bedfordshire.

Since its creation in September 1980, the 33year-old three-door Escort has had just four owners from new, and since its engine rebuild in 2009 has covered under 500 miles, pretty much making it a brand-new car. It’s the ideal car to show off on the road, to take on track days and to enter for competition.

It’s hard not to mistake this piece of kit for an iconic rally car from the good old days of ’80s motorsport, except this motor has been given a full makeover, inside and out.

‘It’s effectively a brand-new car and it’s attracting a lot of attention,’ said Guess. ‘I’ve listed the Escort

on eBay and Piston Heads and so far I’ve had endless emails and inquiries about the car – people think it looks absolutely brilliant.’

As well as a bare metal respray in metallic Ford Puma black, the Escort’s chassis has been rebuilt, while its body shell has been reinforced and sandblasted. In fact, when it comes to mechanical enhancements, this machine has been completely transformed.

It features a modified 2.0-litre Ford Pinto engine with a brand new camshaft, twin 45 Dcoe carbs and a Type 9 Ford five-speed quickshift gearbox. The new alloy radiator also cost approximately £1,500 alone and it certainly sounds good too, thanks to a new sports exhaust system.

The Escort also benefits from an electronic ignition, electric fan, lowered and adjustable suspension, front and rear vented discs with four pot-alloy callipers and an alloy strut brace.

And the additions don’t stop there, with its racecar-styled battery cut-off switch and push stop/start button, a full roll cage, Tarmac rally arches, Cibie sport lights, Minilite alloy wheels and an RS boot spoiler.

Inside, the racing upgrades continue. The Escort comes equipped with FIA-approved competition bucket seats coupled with full harness seatbelts.

Drivers will also enjoy its rally suede steering wheel With under 500 miles on the clock since its rebuild, this Escort is almost brand new

to match its suede ‘dashblack’ carpets, along with its carbon-fibre qualities. ‘£20,000 is a lot of money for a 1980s car, but it’s had so much money spent on it,’ said Guess. ‘The owner spent at least £3,000 on the engine rebuild and a further £1,500 for the radiator alone – that’s not including the upgrades to the car itself.

‘He told me that he actually spent more money rebuilding the car than what he’s trying to sell it for, but that’s what he enjoys doing.’

Priced between £20,200 and £22,200, the Escort comes ready and prepared for the road with 12 months MOT and six months road tax as well as a partial service history, which is quite rare for a 33year-old vehicle.

Guess doesn’t usually deal in this niche area of the market, but because of the amount of interest the little Ford Escort has gained for the company, he says he is certainly keen to dabble more with classic cars in the future.

‘I don’t usually deal in classic cars, especially rebuilds, but I’m definitely considering having more of them on my forecourt,’ said Guess. ‘Depending on how quickly this car sells and based on the interest I’ve received, I’m sure it won’t take long.

There’s no doubt I will look into buying and selling more of them.’ [CD] Visit autotrade-mail.com to start your free 14-day trial.

CarDealerMag.co.uk | 33

forecourt.

CABIN

LOOKS

The 308 has gone from cluttered to tidy with its new bold styling and benefits from better build quality than its predecessor

It’s certainly on VW’s tail for the bestlooking C-segment hatch, but it resembles a compact Audi A-Class

ENGINES

The Peugeot 308 comes with a choice of three smooth petrol engines and two efficient diesel units capable of 75mpg

Peugeot 308

the knowledge

French firm Peugeot is gunning straight for the Volkswagen Golf with its new 308. Sophie Williamson-Stothert reports What is it?

This is the bigger and better secondgeneration 308, which has been stripped down to cut weight and completely redesigned to improve on the quality of its predecessor. The 308’s back-to-basics styling is the result of Peugeot’s promise to provide class-leading quality, putting it head to head with Volkswagen’s Golf and the Ford Focus – only with a price tag that’s roughly £2,000 cheaper. But the fight doesn’t end there, as Peugeot hopes to put the pressure on the Audi A3 and Mercedes-Benz A-Class.

What’s under the bonnet?

Three petrol and two diesel engines, but the range is due to expand with the introduction of ultra-efficient turbocharged units in 2014. The petrol engines range from an 82bhp 1.2-litre VTi three-cylinder unit to two 1.6-litre THP turbocharged engines that can produce 125 and 155bhp. The diesel alternatives include a 92bhp 1.6-litre HDi unit and a 115bhp 1.6-litre e-HDi ��| CarDealerMag.co.uk

engine, which are both capable of achieving more than 75mpg.

What’s the spec like?

The new model comes in four trim levels, from the basic Access from £14,495 right up to the range-topping Feline from £21,345, which comes with clever technology such as LED headlights. Even the basic Access model remains well equipped as standard with electric powerassisted steering, cruise control, air conditioning, Bluetooth connectivity, keyless start and park assist.

What’s it like to drive?

It’s hard not to be impressed by the 308’s progress. It’s comfortable to drive and tracks nicely on both motorways and country roads. It does suffer from a hint of body roll when pushing on through corners, but that’s to be expected. The most impressive feature has to be the fully electric power-assist steering.

At low speeds the steering wheel is

featherlight, so manoeuvring into a parking spot is effortless. But pick up the pace on the motorway or along some twisty B-roads and the steering wheel automatically tightens to improve wheel response.

What do the press think of it?

Auto Express said: ‘The new 308 betters its predecessor in almost every single way, so it’s just a shame that that’s not enough to make it class-leading.’ The Daily Telegraph concluded that ‘the 308 should tick most buyers’ boxes’.

What DO WE THINK OF IT? In comparison to the outgoing model, the new 308 is a remarkable transformation. This is one of the better-looking family hatchbacks on the road, and while it isn’t the quickest, its attention to detail will make up for that. But despite what it has gained in some areas, we can’t help but feel it’s just a little too dull.

Model: Peugeot 308 1.6-litre

THP Feline Price: £21,345 (as tested) Engine: 1.6-litre

turbocharged, petrol Power: 156bhp, 180Nm Max speed: 132mph 0-60mph: 8.4s MPG (comb’d): 48.7mpg Emissions: 129g/km Residual values (three years): tbc

target buyers: Mostly current 308 buyers, but Peugeot is confident to attract new customers.

the rivals: Ford Focus, Vauxhall Astra, Renault Megane, VW Golf

Key Selling Points: 1. Overall build quality has improved.

2. Its new appearance puts it back in the running as the best-looking hatch 3. It’s easy to drive and has a class-leading 380-litre boot

Deal Clincher:

It’s £2,000 cheaper than the outgoing VW Golf.

Monthly AutoTrader.co.uk searches: 193,154

INSIDE

UNDER THE BONNET

Top sellers will be the range-toppers – HSE and HSE Luxury. 2014 Discovery 4s get Range Rover-levels of technology

There’s now only one choice – a 3.0-litre V6 diesel badged 3.0 SDV6. Though tweaked, the new Disco will be costly to run

STYLING

It’s still recognisably a Discovery but with every facelift it gets glitzier. ‘Discovery’ now adorns the nose rather than ‘Land Rover’

Land Rover Discovery 4

the knowledge

It’s the new Discovery. Well, not quite – rather a healthy makeover for the ageing workhorse. James Batchelor reports What is it?

Take a quick glance and the 2014 version of the Discovery 4 looks little different from the car already on sale. But look closer and you’ll spot ‘Discovery’ badging on the nose instead of the traditional ‘Land Rover’; ‘4’ disappears from the tailgate leaving just ‘Discovery’; an edgierlooking front bumper, glitzier grille, less fussy daytime-running lights, new door mirrors and wheels. Under the bonnet lies a tweaked engine while, for the first time, the Discovery gets tech normally reserved for its Range Rover bigger brother.

What’s under the bonnet?

Just one engine – Jaguar Land Rover’s robust 252bhp 3.0-litre diesel (badged 3.0 SDV6) that has been made more environmentally friendly with CO2 emissions dropping from 230g/km to 213g/km and mpg improving from 32.1 to 36.2 combined. All models get a slick eight-speed ZF automatic gearbox with paddle shifters and

there’s a choice of four-wheel-drive systems too – an on-road single-speed transfer system and mud-plugging twin-speed transfer box.

between gears with little fuss. The driving position is near enough spot on and the car changes direction easily and confidently.

What’s the spec like?

What do the press think of it?

All models come loaded with equipment and the range kicks off at £39,990 for the GS and £46,850 for the HS. But it’s the HSE and HSE Luxury that are likely to be the top sellers in the UK, as they have the right amount of snob value – they’re priced at £53,750 and £59,450 respectively.

They can be specced with tech that is normally reserved for the Range Rover – stuff such as wade-sensing technology, blind spot monitoring, close vehicle sensing and reverse traffic detection plus T-junction cameras all make an appearance.

What’s it like to drive?

The engine is the car’s sweet spot – punchy and very refined – and the eight-speed auto ‘box must be one of the best in the class, switching

What Car? said: ‘The Discovery remains a superb multi-tasker but the Discovery is feeling its age inside, and the running costs – although lower than they were – are still pretty high.’

What DO WE THINK OF IT? Those who say the Discovery is blurring the line between a Land Rover and a Range Rover won’t be impressed with the new version.

It looks super-stylish and gives off an image different from any Range Rover; dignity rath++er than Puff Daddy. That’s not to say there aren’t any faults – it’s expensive to buy and it won’t be cheap to run. But if customers can afford one, the new Discovery 4 is a fine set of countrychic wheels.

Model: Land Rover Discovery

SDV6 HSE Price: £53,750 (as tested) Engine: 3.0-litre

turbocharged V6, diesel Power: 252bhp, 599Nm Max speed: 112mph 0-60mph: 8.8s MPG (comb’d): 36.2mpg Emissions: 213g/km Residual values (three years): tbc

target buyers: Owners of current Disco who want latest model, ‘Townies’ wanting ‘Country’ look

the rivals: BMW X5, Mercedes-Benz ML, Volvo XC90, VW Touareg

Key Selling Points: 1. Tweaked styling keeps Discovery looking posh 2. Still feels smart inside despite ageing equipment 3. Now gets technology and gadgets that appear on the new Range Rover

Deal Clincher:

It’s posher and cheaper to run than the old model

Monthly AutoTrader.co.uk searches: 1,009,189 CarDealerMag.co.uk | 35

FEATURE. tokyo motor show 2013

Top 10 show stars The Tokyo Motor Show is renowned for its mad concept cars – and this year’s crop haven’t failed to disappoint. Here, James Baggott takes a look at the cars that made the headlines in the Land of the Rising Sun.

Mazda 3 Hybrid Mazda hasn’t gone down the outrageous concept route at this year’s show, focusing instead on future tech. The maker showcased a hybrid version of its Mazda 3, but unfortunately there are no plans to bring it to the UK. The market for such a car is so small that the maker says it will focus on improving the efficiency of current engines instead.

Honda S660 It may have lost its way, but Honda is rapidly getting its mojo back – and we’re very glad about it. A new Civic Type-R is coming, and an NSX – now we have this little sports car to lust after too. Scheduled for production in 2015, it’s for the Japanese kei-car market only at present and features one of the firm’s bike engines. There are no plans for UK import . . . at the moment.

Nissan IDx Freeflow and IDx Nismo They’re rear-wheel drive and shaped by a digitalobsessed generation – and every car nut already wants one. Harking back to classic Nissans such as the Datsun 510, the concepts show how a Nissan sports car could look in the future. The Nismo version has sports exhausts and a 1.6-litre lump, while the Freeflow has either a 1.2 or 1.5-litre. Nissan is closely monitoring public reaction with a view to making them.

Lexus LF-NX Here’s one of the cars on show in Tokyo we desperately want to see put into production exactly as it is. Showcasing Lexus’ first turbo petrol engine, the compact crossover is around the same size as a Qashqai. We first saw a version of this concept at Frankfurt, but a few exterior tweaks have been made for Tokyo. We love it. ��| CarDealerMag.co.uk

Mitsubishi XR-PHEV

Mitsubishi GC-PHEV

Suzuki Crosshiker

The ASX has been one of the Japanese firm’s best sellers in the UK and this concept car hints at what the next version will look like. Again utilising the maker’s plug-in hybrid powertrain, it will offer excellent efficiency and a nimble chassis, thanks to its ‘sport coupe’ body style.

The Mitsubishi Shogun has been around for a while now – but a new one is on the way and this concept points at its future design direction. Featuring the brand’s plug-in hybrid powertrain, which debuts next year in the Outlander, the concept SUV has all-wheel drive and dramatic styling.

Suzuki’s presence in the UK may be small, but out here its stand is easily as big as rivals.

Taking centre stage was its Nissan Juke-rivalling Crosshiker concept. Weighing just 810kg, it is said to appeal to adults who can’t forget their ‘playful side’. It’s slated for production but there’s currently no word as to when.

Subaru Cross Sport Design concept The lovechild of a BMW 1 Series and a Mazda 3 hatch, this is Subaru’s vision of an urban SUV with sporting prowess. With hints of the BRZ, the concept is designed to be easy to get in and out of and have acres of luggage space. We’re just pleased to see something new from a firm that’s been too quiet for too long.

Daihatsu Kopen The brand may be dead in the UK, killed off by a high exchange rate and an industry downturn, but Daihatsu is alive and kicking here and rolling out a new Kopen. The tiny sports car comes with fully inter-changeable panels so buyers can swap colours. A concept at present, the Kopen is likely to make the streets of Japan but not the UK.

Nissan BladeGlider Meet the son of the Batmobile-inspired Deltawing, Nissan’s BladeGlider. Taking the radical Ben Bowlby race car design that shook up Le Mans in 2012 a step further, Nissan says the carbonfibre model hints at an establishmentrocking sports car that could make production in the future.

We hope it happens.

CarDealerMag.co.uk | 37

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DASHBOARD. tokyo motorshow 2013

Top 10 maddest show cars Durax D-Face

It’s one of the coolest concept cars at the show, but it was hidden away from most of the show-goers! That’s a huge shame, as the Durax D-Face has a front door like a BMW Isetta, is powered by electric (aren’t they all?) and has a range of 150km. Very cool.

Toyota Winglet

The Segway is dead, long live the Winglet!

OK, we may have written off the Segway a bit early, but this is Toyota’s take on moving people around by making them stand on a board and bending.

It’ll do 4km on a charge and has a max speed of 6kph.

The Japanese show is held every other year, giving the world’s car designers plenty of time to think of something truly mad to shock the crowds with. In the halls above the main show they display their visions of the future – and James Baggott couldn’t resist taking a look.

Here are 10 of the maddest he uncovered.

It leans like a motorbike, but keeps rider and passenger warm in a cocoon-like cabin. It’s supposed to offer the comfort of a car and, with its slim dimensions, the convenience of a motorbike. We think it’s very smart and are pleased to hear it’ll be used in car-sharing tests next year.

Ikeya Formula

Well, this is more like it! While most firms were showcasing EV people pods, this firm debuted a mental road racer. It’s fully road-legal, features a 320bhp 2.0-litre Honda engine and is slated for limited production. There’s no word on pricing though.

Terra 3-Wheeler

EcoCarry

It’s the love child of an elaborate bike and a pizza delivery boy’s scooter – meet the EcoCarry that could be delivering a takeaway to a door near you very soon.

With a top speed of 50kph, it’ll do 40km on a 2.5-hour charge.

And it’s even got a roof!

Toyota i-ROAD

ZieD a1

If it looks like a wheelchair with a bike attached to its rear-end, that’s because it is! Designed to be the world’s lightest EV, the ZieD is supposed to transport two people 20km at speeds of up to 25kph. Looks like a Jeremy Clarkson creation to us . . .

Do not adjust your Terra-vision sets (sorry). This is what the the future looks like –a three-wheeled: part-bike, partrickshaw, partpeople carrier.

Possibly. Terra is Japan’s biggest EV maker and this model has a 100km range and recharges in eight hours.

ACN Personal Mobility Vehicle

Toyota Ha:Mo

It looks like something that’s usually attached to a rail at a theme park, but this is one of Toyota’s visions for future mobility. It has built-in sat-nav to guide users around jams, is powered by electricity and is part of the Ha:Mo car-sharing scheme being piloted in Japan.

Kobot charging station

This clever piece of kit is less about the car and more about the shelter. It’s made from solar panels that can be used to charge the car in less than six hours. It has its own battery pack too so can store juice ready for when you need to use it. Smart.

Designed by a university professor, this is what mobility for pensioners could look like in the future. Drivers are supposed to ride it standing up (not good for those old knees), it’ll do 30kms on a charge and an on-board tablet computer can detect when a crash is imminent and help take avoiding action.

CarDealerMag.co.uk | 39

FEATURE. far eastern special

Combustion’s here to stay Mazda has promised to stick with the internal combustion engine despite rivals opting for more fashionable electric and hybrid technology. James Baggott reports CE, ICE, Baby – that’s the 90s popthemed message coming out of Mazda’s Tokyo-based engineers, but it’s not one-hit wonders they’re referring to, but engine technology.

Petrol heads who feared the death knell was ringing for the Internal Combustion Engine need not fret as Mazda has promised to stick by it for the foreseeable future.

As many of its rivals go down the hybrid and electric routes, one of Mazda’s highest placed engineers told Car Dealer it was conventional combustion engines that excited him the most.

Kiyoshi Fujiwara, managing executive officer, said: ‘ICE excites me. It is the most popular form of engine and it’s our job to make these engines more efficient so they are sustainable.

‘The fuel that powers them doesn’t necessarily have to be fossil fuel either as we can use sustainable fuel in the future too. Where is the electricity produced to power EVs? Power stations that produce CO2, that’s where. That’s why we’re looking at making ICE even more efficient.’

Fujiwara San said evolution will happen with conventional engines and it means that drivers

on test

of Mazdas in the future will still be able to enjoy traditional power plants, just ones that feature far more technology.

The firm is working on improving combustion and energy loss and is developing higher rates of compression that would surpass diesel engines.

‘We want to be the number one in the world for efficient internal combustion engines,’ he added.

Mazda showcased a Compressed Natural Gas powered Mazda 3 at the Tokyo Motor Show and a hybrid version for the Japanese market only. The latter uses technology borrowed from Toyota’s Prius, but will not be sold in the UK. A spokesman for Mazda said: ‘The market for a hybrid Mazda 3 in the UK would be so small it is not sensible to bring them in.’

... but Mazda has tried its hand at a plug-in hybrid 2 supermini. James Baggott got

What is it?

What’s under the bonnet?

A range-extending rotary-engined, plug-in hybrid might sound like someone at Mazda has eaten a packet of Rowntree’s Randoms and blurted out words, but it is in fact a very sensible way to power electric vehicles.

Here’s how it works: The car uses an electric motor to power the wheels and drive along the road. While you can charge it up from the wall in eight hours and travel around 125 miles, to extend the range, a small rotary engine – similar technology as you used to find in an RX-8 – has been placed under the boot floor. This 330cc unit kicks in when it’s needed above 6mph and recharges the battery on the go, but it never powers the wheels.

Cast your eyes where a normal engine sits and you’ll find a 75kw motor that produces 100bhp and 150Nm. It means the car can hit 60mph in around 12 seconds and a top speed of 75mph. But keep searching and slotted behind the rear axle, under the boot floor, is the horizontally-mounted rotary engine. With a 10-litre fuel tank it can recharge the batteries on the move and double the range to 250 miles.

Range-extending technology is limited by law in Japan to only double a car’s existing range (don’t ask why), but if the technology is introduced elsewhere in the world, a larger tank could be installed. An engineer told us if the same size fuel tank from a standard Mazda 2 was

��| CarDealerMag.co.uk

fitted, the range extender could potentially travel 500 miles without stopping.

What’s the tech like?

Very impressive. Mazda were extremely keen to point out this is a one-off development car that isn’t scheduled for production (yet). Getting information out of the engineers was like getting blood out of a stone, but we did glean it will be around three years before something like this could make it onto UK roads.

Considering we’re not getting the standard Mazda 3 hybrid in the UK, a car which uses conventional technology, it’s unlikely the Mazda 2 Rotary Plug-in Hybrid will be appearing in Mazda dealerships any time soon.

the knowledge

behind the wheel of a prototype to try it for size Any rivals?

If we’re talking rotary-engined plug-in hybrids, then no. There’s talk of Audi doing something similar and showcasing it at next year’s Geneva Motor Show, but Mazda got in there first. The Chevrolet Volt and Vauxhall Ampera are plugin range-extending hybrids, but their cost has severely put UK punters off.

In the back you could hear it fire up, but it was not intrusive and barely audible from the front seat. It’s quick to accelerate and the regenerative braking is sharp. Inside it’s just as comfortable as a standard Mazda 2 apart from the huge EMERGENCY button attached to the dash. This, I was assured, wasn’t for near-miss situations, but for the test mule only.

What’s it like to drive?

what do we think of it?

Given we only had a five-minute stint behind the wheel in a car park, and we’re not talking Ken Block car park antics, it’s hard to tell you much more than it works. The batteries were already fairly depleted in the car we drove so the range-extending rotary unit kicked in quickly.

Finding out what the Mazda development team had for lunch was hard enough, so any real detail on this new technology wasn’t exactly forthcoming. They wouldn’t tell us what CO2 emissions were, but one exec did say they hoped it would eventually duck under 15g/km.

Model: Mazda 2 Rotary Plug-In Hybrid

(development car) Price: TBC Engine: 75Kw battery,

330cc rotary range extender Power: 100bhp, 150Nm 0-60mph: 12s (est) Range: 250 miles Emissions: 15g/km (est)

What was interesting was the research Mazda had carried out for the electric car trials they’re running with the Japanese government. Of those users, 70 per cent were dissatisfied with the car’s 125-mile range, despite the fact they never used it all. Mazda says it was this that led them to investigate range-extending technology further as they’re not convinced pure electric cars are the future. That could be one thing that the Mazda engineers and Car Dealer agree on...

CarDealerMag.co.uk | 41

FEATURE. far eastern special

The Dealership ...Korean style James Baggott visits Kia’s flagship Seoul dealership to find out how they do things differently in South Korea and why the boss insists his young salesmen get married as quickly as possible ia’s flagship Korean dealership is situated in the heart of one of the most affluent areas of the capital Seoul.

Nestled between luxury fashion brands’ stores, such as Calvin Klein and Armani, the Kia Motors Apgujung dealership fits in nicely.

Built into the high street, just like the neighbouring stores selling designer label goods, the clean and modern dealership displays its cars to passing shoppers as they walk by clutching bags full of the latest fashion apparel.

Smart LED displays in the doorway and around the showroom show off the marque’s range of cars and there’s plenty of space around the nine cars in the showroom to look around. A new Soul takes pride of place on an elevated stage and gloss white walls and bright lights show off the cars like pieces of art. There’s no clutter on display, in fact it looks like the showroom has just opened and hasn’t been stocked with brochures yet – then you realise they’re just cleverly hidden away.

However, there are two very distinct things missing from inside the dealership: Customers and staff. During Car Dealer’s three-hour visit to the company’s flagship showroom, not one customer walked through the smart, touchscreencontrolled glass doors while the salesmen were noticeable by their absence.

‘We have few customers walk in off the street,’ explained 51-year-old Jong-Kwon Park, the dealer principal. ‘Our salesmen are on the road, out there meeting customers in their homes and in their places of work. It’s unusual for customers to come into the showroom.’

That seems strange and begs the question, why spend out on such a plush showroom in prime retail space in one of Seoul’s most expensive areas?

‘It’s important that we have a presence and that those driving by can see Kia has nice showrooms that are modern and smart, especially when the importers do this,’ added the showroom chief. ��| CarDealerMag.co.uk

And that’s where we really get to the crux of the matter. Down the road, Kia’s bitter rival, a BMW dealer, is wowing young South Koreans with its smart Germanic showroom – and Kia is being forced to keep up.

With 30 per cent market share – and 80 per cent of the market cornered when you throw in sister company Hyundai – Kia dealers haven’t

had to worry too much about rival brands in the past. But change is coming and it’s starting to affect the way Kia dealers do business in their home country. Roll the clock back a few years and imported cars were taxed so heavily they didn’t even register on Koreans’ shopping lists. But that’s all changed now. Taxation has been relaxed and the German brands in particular are starting to

Car buyers are starting to consider German brands and BMW is the one taking our sales

all in a day’s work THE dealer boss works long, hard hours.

Arriving at the Apgujung showroom just after 6am he sets targets for his team and catches up on the previous day’s business.

Jong-Kwon Park, who is married with two daughters, spends much of his day staying in touch with his travelling team of salesmen and reporting back the latest figures to head office.

In his case that’s easy as the Korean head office is located above his head in the tower block above his dealership.

With profit only coming from car sales – there’s no paint protection or finance kickbacks here – and no used or service departments to worry about, his time and efforts are focussed on selling new cars.

He’s always the last person to leave and locks up around 9pm.

get a foothold in the country. ‘Our biggest rival is BMW,’ explained Park. ‘Car buyers are starting to consider German brands and BMW is the one taking our sales.’ It may seem strange to us Brits that Kia would be doing battle with a premium manufacturer like BMW, but things are very different in South Korea, very different indeed.

Park explains his team of 13 ‘car masters’ – salesmen to you and me – don’t spend any

time in the showroom. After a quick morning meeting at the dealership they head out into the Seoul metropolis to sell. While some cold-call customers, even stand in the street, most stick to the dealership’s database for leads. This list goes back an incredible 30 years and when a Korean is a Kia buyer, more often than not they remain that way for life.

‘My sales team will visit existing Kia CarDealerMag.co.uk | 43

FEATURE. far eastern special owners and try to sell them the new model,’ said Park. ‘Most buyers don’t even test drive the car, they’ll do the deal with my salesman there and then and we then deliver the car to their home. Kia customers are very loyal and we are focussed on maintaining that relationship.’

At the Apgujung dealership there’s a noticeable lack of used cars too – what happens to all the part exchanges, we wonder.

‘We don’t deal with used cars,’ explains Park.

‘When a part exchange comes in we sell it on immediately to another company. We don’t deal with used cars at all. Usually buyers keep their cars for around seven to eight years so there is little point in us selling the used cars here.’

Servicing isn’t done at the showroom either.

A service expert is based at the dealer but he is in charge of sorting out problems and pointing customers towards a separate service site. The two companies are unconnected but work together – the service technicians even pass on brochures to customers when they’re having work done and the salesmen chase them up. It’s a mutually beneficial agreement.

The dealership’s 13 salesmen shift around 75 new cars a month with the Picanto and K5 (Optima in the UK) notching up the most sales in Korea. But as Apgujung is an affluent area, the Korean market-only K7 and K9 models (think BMW 5 and 7 Series sizes) make up the most sales at the brand’s flagship store.

Dealer principal Park joined Kia in 1986 and worked in the office at the Hwasung plant just as the manufacturer was ramping up mass production of the Pride. In 1996 he asked for a transfer to the company’s retail division and took up a finance manager’s post, an important position as most car sales in Korea are on finance. He then worked his way up to dealer principal before taking control of the flagship store earlier this year.

Kia dealers in the home market are split between franchises and those wholly owned by the manufacturer. Park’s site is one of the latter, but he explains they all have to abide by the same rules.

‘For example, Kia has a strict no-discount policy,’ he explained. ‘The cars cost what they say in the windscreens and there’s no haggling.

As all dealers stick to this, it doesn’t become a problem and you’re not left fighting each other.

‘Customers are loyal and the salesmen work hard to keep those relationships going so they buy their next car from us.’

That loyalty is very obvious in all walks of life in South Korea and extends to the showroom staff – even when a salesman is underperforming, the business is far more likely to stick with them and train them rather than fire them.

‘It’s not easy to get rid of people if they aren’t selling so instead we try and train them to be better,’ added Park.

Just as it’s changed the way dealers do business in the UK, the internet and technology is making inroads into the traditional ways of shifting metal in South Korea too. Salesmen now have tablet computers with apps that they can take into customers’ homes and configure cars on while the internet is funnelling more leads into their showrooms.

‘We don’t have our own website, but are part of the Kia website for South Korea which leads customers to us,’ he said. ‘We’re starting to see more customers come to us that way who members of the team then go out and visit.’

Park also has some interesting advice for his new salesmen when they start their career with him at Kia. He believes it’s very important that they are proud of what they do – car sales is seen as an average job in Korea, but he believes they should take pride in their profession.

‘I also tell them to get married early,’ revealed Park. ‘I find when people get married they are more focussed. They know what they want from life and they get responsibility – with that comes a desire to do well and sell more. I find married people are more focussed and perform better at their jobs.’

While the Korean way may be worlds apart from how the manufacturer’s network operates back in the UK, it’s clear to see it has its benefits. In fact there are many lessons about relationships and databases that dealers in the UK could take on board. However, perhaps advising new salesmen to get married on their first day in the job is best left to the Koreans…

My sales team will visit existing Kia owners and try and sell them the new model

Korea car facts Mr Blobby

Dealers leave the blue rubber protectors (left) on the outside of doors in Korea as customers like to keep them on the car. While in the UK these are thrown away, Koreans like to keep them as they protect the doors when parking and make the car look new. ��| CarDealerMag.co.uk

Testing times

Just 10 per cent of new car buyers will want to test-drive a new car. Most people buy without even seeing it in the metal. The salesman visits them at home, they sign the deal and the new car is delivered – many don’t even see the inside of a showroom.

Rivals

Kia, and sister brand Hyundai, enjoy an 80 per cent market share in South Korea, but the German brands are starting to get a foothold.

BMW is the biggest rival. Only 20 per cent of cars in Korea are diesels, but derv is getting more popular.

On a plate

There are no age-identifying numbers or letters on Korean cars. Number plates don’t show when the car was registered so there’s no desire among buyers to be seen to have the newest. Salesmen have to instead use new models to tempt buyers into changing.

CarDealerMag.co.uk | 45

FEATURE. far eastern special

Kia Ray EV Kia is entering the electric vehicle market in 2014 with an EV version of its Soul mini SUV. James Baggott tries the car’s forerunner, the Ray EV, which is leading the charge for the brand’s electric future

What is it?

What’s under the bonnet?

Right, let’s get this cleared up from the start – the Ray is not, and will never be, available in the UK. But before you turn the page, you need to know that this car is pioneering the technology that will appear in the Soul EV that’ll arrive in the UK in the winter of 2014.

The Ray is a micro city car for the Korean market where some 67,000 have been sold. The EV version, though, is only available on a pilot car-sharing scheme in Seoul where 180 of the tiny vehicles are available to 15,000 members for as little as £3 an hour.

Kia has been using the scheme to gain data on its EV models that it has used to refine the massproduction Soul version. ��| CarDealerMag.co.uk

Well, what’s more important is what’s under the seats. Hidden in the floor pan is a battery pack that’s coupled to an electric motor situated in the more traditional location under the bonnet.

We won’t concentrate too much on what the Ray features, as much of this has been enhanced for the Soul. The Soul EV has a range of 125 miles, can be fully charged in five hours or topped up in just 25 minutes with a fast charger. Top speed is 90mph and it will hit 60mph in around 14 seconds.

What’s the spec like?

That’s unclear at this point, but what we do know is that when the Soul EV arrives it will be

the most expensive model in the range. That will mean it’s likely to have Kia’s top spec too with a clever sat nav system that will point out recharging locations and range, just like our Ray EV test car did.

Kia did tell us the Soul will come with heated and cooling front and rear seats and a heated steering wheel. Slightly different bumpers and headlamps, and a charge point in the grille, will mark out the EV model from the rest of the Soul range.

Any rivals?

There most certainly are. BMW are the latest entrants to this market with the i3, but electric car buyers can also choose from more established

Kia: EV battery technology has reached its peak

offerings from Nissan like the Leaf, or Renault’s Zoe. If customers are looking for something even more outrageous, then they could consider a Renault Twizy.

What’s it like to drive?

If the Ray EV is anything to go by, the Soul promises a lot. On the clogged streets of South Korea’s capital, we found the brisk, smooth acceleration of the battery-powered model a boon. The silent running makes for a relaxing drive and the added weight from the batteries was hard to spot.

Regenerative braking was also impressive, if a little aggressive at slamming on the anchors at times.

WHAT DO WE THINK OF IT? We’re impressed with Kia’s first entry into the EV market – and it helps it comes in the funky Ray body shape. Even if we won’t see it on UK shores, the Ray points to impressive things to come from the Soul EV. There’s currently no word on pricing for the Soul or whether buyers will be offered the car complete with batteries to buy outright, or with rented batteries.

What was clear from our test-drive, though, is that Kia has EV technology pretty much nailed and it’s ready to go.

Factor in the likelihood the manufacturer’s competitive pricing will be brought into the equation, and the Soul EV could bring about the shake-up the segment needs.

ELECTRIC vehicle battery technology has hit a plateau and ranges are unlikely to get better any time soon – that’s the disturbing news from latest EV entrant Kia. On the day the Korean firm announced an electric Soul mini SUV will be sold in Britain, the manufacturer’s head of battery design told Car Dealer that development was starting to hit its peak.

Just three years ago, Kia engineers told us that for every year of battery development the cells would halve in size and double in range – however that prophecy appears not to have come true.

‘Battery technology has peaked,’ revealed Jon-Ho Park, Kia’s team leader for battery design.

‘We can’t see there will be a massive improvement in range unless another material is found in outer space or somewhere.

‘Lithium-ion battery technology is close to its most effective now and without another material to use we can’t see a major improvement any time soon.’

That news, from a manufacturer that is only just entering the worldwide EV market with the Soul that can manage 125 miles on a charge, may come as a surprise – but it perhaps hints at the future direction Kia plans to take for alternatively-fuelled cars.

The Korean firm has refrained from putting all its eggs in an EV basket and has instead ploughed ahead with hybrid technology and, alongside sister brand Hyundai, fuel cell cars too.

It’s clear it’s the latter that makes the most sense to the Koreans, despite expensive infrastructure needing to be put in place first.

‘By 2015 we will have a Kia fuel cell car,’ added Mr Park. ‘And then by 2020 we will have full scale production, but it’s the infrastructure and refuelling that is holding us back.’

WE CAN’T SEE THERE WILL BE A MASSIVE IMPROVEMENT IN RANGE CarDealerMag.co.uk | 47

FEATURE. far eastern special

Kia rules out sporty off-roaders KIA HAS ruled out extending the performance range that debuted on the Pro Cee’d GT to its popular SUVs. While premium manufacturers like BMW and Audi are dabbling with fruity engines in their off-road models, Kia product planners are not considering going down a similar route.

That means a cut-price rival to Audi’s RSQ line or BMW’s M-badged X models won’t come in the shape of a Sportage or Sorento.

However, Chung-Yul Hwang, Kia executive vice president of product management, is adamant sporty cars ARE the right thing for the brand – just not SUV versions.

‘We are looking at how to boost our sporty image further,’ he told Car Dealer. ‘It is the right direction for the brand to be taking and we are looking at all segments.

‘But we will never do a sporty SUV like Audi has with the RSQ models. We need to go down the sporty route for sure, it was the right one for us and we are exploring all avenues – but not an SUV one.’

Kia’s Pro C’eed GT has been well received by UK dealers and has received positive reviews in the press. UK buyers are particularly keen on performance variants and Kia is keen to give it to them too.

‘Kias need to be sporty and fun to drive and they are engineered that way,’ added Mr Hwang.

‘We try to do this with all our cars – sporty handling is, and always needs to be, a trait of Kias.’

Just apparently not for its SUV models…

BMW-a-like saloons could come to UK ia could bring its K7 and K9 BMW rivalling saloon cars to the UK – but only if the Optima is a hit with buyers.

The two larger saloon cars – similar in size and looks to the BMW 5 and 7 Series – are common sights on South Korean roads, but at present there are no plans to import them.

Speaking exclusively to Car Dealer, Thomas Oh, executive vice president and COO of the International Business Division, said that didn’t mean they had been ruled out of the UK completely though.

‘Optima will lead the path for larger cars like K7 and K9 in the UK,’ said Oh. ‘But we don’t have to use all our resources everywhere – we can take our time and think about this.

‘But I think before that happens our image needs to change. Our awareness is still low in some markets and we need to increase that first. We must build our image further and develop Kia before we introduce cars like K7.

‘Optima will lead the way and then K7 could be a stepping stone for K9.’

A spokesman for Kia UK said that in the last 12 months around 1,200 Optimas – called K5 in South Korea – had found homes. The manufacturer planned to sell between 1,000 and 1,500 in the UK and he said the brand was ‘content’ with the car’s performance.

When asked if the K7 would work in Britain, Kia UK sales director, David Ovenden, said he

doubted it. ‘It looks great,’ he said. ‘But I’m not sure it would work.’

If the cars did come to our shores, the names would have to change. In South Korea the brand uses the ‘K’ naming convention, but this hasn’t been adopted by the UK – and there are no

Behind the scenes at Kia’s secret test site IF YOU’RE in any doubt as to how seriously the Korean car-making twosome of Hyundai and Kia are taking world automotive dominance, look no further than their sprawling Namyang research centre.

Just south of Seoul, the small town-sized research and development facility covers 3.5 million square metres – some 870 acres – and is home to an incredible 10,000 engineers.

Here the teams, working for both sister companies, subject the next generation of Hyundai and Kias to some of the cruellest conditions possible, all in the name of research. ��| CarDealerMag.co.uk

And as if proof was needed as to the importance the firms put on R&D, on the very day we visited it was announced that the president of the facility, Kwon Moon-sik, had been fired just a few hours earlier to ‘take responsibility for a series of quality issues’.

Reports suggest the R&D chief – who is quoted in the firm’s glossy brochure as someone who makes ‘dreams a reality’ – left his role following a series of embarrassing recalls in South Korea, the United States and other countries.

The sacking only served to highlight the high regard to which the two companies’ bosses place

on the Namyang engineers’ work – and what can happen if they get it wrong.

Our behind-the-scenes tour of the secret site took in the three ‘districts’ of conjoined buildings that surround a huge test track, home to 34 different road types and 71 surfaces. Here Hyundai and Kia models are punished on everything from cobbled streets to English B-road clones as engineers analyse every second.

A climate chamber on the site can freeze cars or super heat them, while a dust chamber fires tiny particles at test car mules in an attempt to find any hint of imperfect panels.

Company hints at sports car future KIA needs to create a sports car for the masses – just like Mazda did with its MX-5 –when the brand heads down the performance car route.

There has been talk of the Korean manufacturer launching a sports car for some time – but management has been undecided in what shape it should appear.

A large rear-wheel-drive coupe, showcased in the GT concept (pictured below) at Frankfurt in 2012, is one option while a smaller offering, like the Provo concept shown in Geneva earlier this year, is also on the table.

Thomas Oh, executive vice president and COO of the International Business Division, told Car Dealer that he believes a Kia sports car should be aimed at the biggest-selling segments – pointing towards the smaller car as the preferred option.

‘We have seen big growth in the B/C/D segments in Western Europe and it’s here I think where a sports car would work for Kia,’ explained Oh. ‘We need to develop further in these segments and it’s this sized car where I’d prefer we do a sports car if we did it.’

Oh said there is still a lot of work to be done by the brand first in terms of improving image perceptions – but that will lay a path for more exciting cars in the future.

He added: ‘The brand image is not so high at the moment and we’d need a sports car to deliver in all areas, especially in marketing the brand right. It will need to deliver the emotional feel of our brand.”

Oh also revealed there are plans to extend the GT performance range of cars further and said Kia was closely monitoring its success in Europe.

‘Step by step we’ll add to the GT line,’ he said.

‘We are monitoring the development of this car in markets closely.’

The Rio – Kia’s Fiesta challenger – is ripe for the GT treatment, but Oh wouldn’t be drawn on whether this car would be next for a sporty makeover.

plans to introduce it. ‘It wouldn’t make sense to use the K names in the UK unless we changed all the model names,’ said a spokesman. ‘And that’s not going to happen as people buy Picanto or they buy Sportage, those names have good traction and we don’t want to lose that.’

A wind tunnel – built at a cost of £28m – can even recreate hurricane speeds in a sound-proof chamber. We climbed inside the huge piece of equipment and were staggered at how the clever noise-capturing walls eliminated echoes completely in the huge room.

At the crash test facility, Kia uses 150 dummies – costing up to £200,000 each – to test its forthcoming models. Each new car is subjected to up to 100 smashes, from all different angles, with the manufacturer completing an incredible 500 tests per year.

With each crash costing upwards of £150,000 to

carry out, that’s a lot of money spent on bending metal…

Star of the crash show is a purple-suited test dummy costing a cool one million dollars – covered in more sensors than its sisters, this superstar human stand-in helps the manufacturer assess where it can make major improvements in vehicle safety.

We weren’t allowed to take cameras or phones onto the Namyang site as it’s littered with secret test mules – we saw a camouflaged Sportage, due in 2015, and a new Sorento being put through their paces.

Perhaps more interesting were the rival cars the Koreans had on the site for its engineers to benchmark. We spotted countless Volkswagen Golfs, including the latest GTI, an Audi RS5 and even a Porsche Cayman. Unfortunately our hosts remained tight-lipped as to why they were there…

The Namyang facility is working on 10 to 12 new and face-lifted models at any one time. That may not sound a lot, but when you get a glimpse of the work that goes on behind the scenes on each model like we did, you soon realise it’s more than enough to keep all 10,000 workers rather busy indeed. [CD] CarDealerMag.co.uk | 49

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ow in their second year, the Used Car Awards returned to The Brewery in London to celebrate the best of the best of the used car industry.

But before we reveal the winners, it’s worth taking a few moment to reflect on the importance of the used car industry to UK PLC. According to this year’s Used Car Market Report by BCA – the past 12 months saw used car volumes rise to their highest levels since the recession, with 7.1 million cars changing hands.

The value of used vehicles sold was a staggering £38.1bn – the highest on record, and ��| CarDealerMag.co.uk

well ahead of the value of new car sales, which were £5bn less.

Those figures helped make the UK used car market the largest in Europe, outperforming even Germany, France and Italy.

Make no mistake, the used car market is absolutely vital to the economy and is helping pull us out of recession and back into growth.

When Mike Brewer came to us and discussed the idea of

launching the Used Car Awards – gongs that celebrate this vital part of the industry – we immediately jumped on board.

But from the start we were all adamant it had to celebrate every level of the industry.

Unlike new car sales, the used car business is fuelled by firms of all different shapes and sizes. From independents working hard ‘under the arches’ to large plcs with busy used car sites, every single one is a vital link in a very large chain.

These awards are about celebrating and congratulating ALL of them.

So, here are the winners of the 2013 Car Dealer Used Car Awards, sponsored by Black Horse and in association with Wheeler Dealers.

James Batchelor Editor

CarDealerMag.co.uk | 51

AWARD-WINNING SERVICE VOTED FOR BY DEALERS. We must be doing something right but don’t take our word for it.

OUR LATEST 2013 AWARD WIN… Car Dealer Used Car Finance Product of the Year 2013 National Franchise Dealer Association Business Partner of the Year 2013 & 2012 AM Reader Recommended for Finance 2013 & 2012 Car Dealer Prime Finance Provider of the Year 2011 AM Supplier of the Year 2011 Motor Trader Product of the Year

Discover other ways we help our dealers drive business at blackhorse.co.uk/dealerportal ��| CarDealerMag.co.uk Black Horse, St William House, Tresillian Terrace, Cardiff CF10 5BH

Used Car Dealer of the Year – Under 50 Cars Sponsored by Black Horse Presented by Chris Sutton, managing director, Black Horse

Lansdown Mazda took the top spot in this category

Winner: Lansdown Mazda Highly commended: Burton Kia Commended: Lawton Brook

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he Used Car Awards were set up last year to shine a light on the used car industry, and especially this part of it.

The small used car dealer has just as an important role to play in the industry as do larger, more high-profile dealers.

This category was open to the smallest of dealers who stock up to 50 cars, and we received a huge variety of nominations.

But in order to narrow down the entries, we mystery-shopped at all the nominees and the dealers that appeared in our shortlist were the best of the bunch.

It was a close battle, with the winners

eventually being decided on how quickly they responded to our phone calls.

The winner of the Used Car Dealership of the Year is a family-run business.

Established in 1976, Avon and Somerset’s longest-running Mazda dealer reacted to our telephone inquiry quickly and efficiently. Our winner is Lansdown Mazda, of Bath.

Taking the highly commended prize is a dealer that prides itself on great customer retention and an excellent CSI score of 95-plus per cent.

It’s Burton Kia, of Burton-on-Trent.

Commended goes to Lawton Brook, of Knaresborough, near Harrogate.

Burton Kia collect their highly commended award from Mike Brewer CarDealerMag.co.uk | 53

Used Car Dealer of the Year – 51-100 Cars Sponsored by Black Horse Presented by chris sutton, managing director, Black Horse

Jim Reid and Jill Reid pick up their award from Chris Sutton and Mike Brewer

Winner: Jim Reid Vehicle Sales Highly commended: Quirks Car Company Commended: Windrush Maidenhead

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ouble the stock inventory and the stakes take a turn skywards. As turnover increases, so do customer expectations and demands made on staff. That’s not forgetting the need for larger premises, a bigger workforce and an even greater need to balance the books.

Once again we mystery-shopped at the nominees and dealers were judged upon how quickly they acted on our initial inquiries. We were surprised that some of our queries went unanswered – but the ones who reacted quickly were the ones that won our gongs.

If there’s ever a case of the small players mixing it with the big boys, it’s with this category – and it was closely fought for overall spoils, with ��| CarDealerMag.co.uk

some of the smaller players really showing the larger dealer groups just how it’s done.

Commended goes to Windrush Maidenhead and taking the highly commended prize is a dealer that specialises in giving a quality franchised dealership experience but to used car customers. Congratulations go to Quirks Car Company of Wickford in Essex.

Our winner is Jim Reid Vehicle Sales of Inverurie, Aberdeenshire, and this dealer certainly knows how to grow a business successfully.

It started out 10 years ago as a husbandand-wife team with only 12 cars but today the business employs 14 people and turns over more than £5m a year.

Our congratulations go to Jim Reid.

Quirks Car Company won highly commended

Used Car Dealer of the Year – Over 100 Cars Sponsored by Black Horse Presented by chris sutton, managing director, Black Horse

Representatives from Marshall Grantham Volvo collecting their award

Winner: Marshall Grantham Volvo

Highly commended: Eddie Wright Car Supermarket Commended: Motorpoint

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hen it comes to businesses that deal with more than 100 cars there’s no room for error – and the dealers who know their craft inside out rise to the top of the pile.

These dealers are coping with large stock inventories and sizeable customer books, as well as larger business premises, so it’s vital that they operate like a well-oiled machine.

As with the previous categories, we mysteryshopped at the nominations to draw up our shortlist and decide our winners – and it proved to be a close battle.

Our winner is a dealer group with family values that has long recognised the importance of great

stock and a strong focus on customer service.

That’s probably why they were the quickest in replying to our inquiry about a car and were interested in doing all they could to help us in finding a car.

They weren’t pushy but they were genuinely committed to helping us.

Our congratulations go to winner Marshall Grantham Volvo in Lincolnshire.

Highly commended goes to a business that knows the importance of family tradition and in not growing too quickly and that is Eddie Wright Car Supermarket of Scunthorpe.

Winner of our commended award is car supermarket Motorpoint.

Eddie Wright picked up a well-deserved highly commended CarDealerMag.co.uk | 55

Used Car Dealership Group of the Year Sponsored by Black Horse Presented by CHRIS SUTTON, MANAGING DIRECTOR, Black Horse

HR Owen’s divisional director Paul Westaway collects the award

Winner: HR Owen Highly commended: Vertu Commended: JCT600

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on’t think the big boys don’t know the importance of selling used cars. While it’s true they’ve got their attention set on shifting new metal, the canny ones know that keeping a close eye on used car sales forms an important cornerstone of their businesses.

Like last year, competition was fierce in this category, with all of our finalists deserving overall spoils in one way or another.

But there has to be a winner, and the top gong goes to a dealer group that has undergone a magnificent transformation.

A new chief executive, new investment and renewed spirit has helped it outperform its strategic overhaul plan first laid down in 2011.

It has increased its used car sales volume by 24 per cent this year, thanks to improvements in its ��| CarDealerMag.co.uk

customer proposition and more tightly- defined processes. The winner of Used Car Dealership Group of the Year is HR Owen.

Highly commended is awarded to a business that is going from strength to strength and recently published record-breaking profits plus increased used car sales – it’s Vertu.

A deserved commended is sealed by Bradfordbased JCT600.

Joe Doyle, HR Owen’s chief executive officer, said: ‘Transforming our used car business has been a major project for HR Owen this year, and many employees have worked really hard to deliver it. I’m delighted with the progress we’ve made (volume up over 30 per cent with 20 per cent higher margin across all sales) and it’s a great to see that externally recognised by Car Dealer Magazine.’

HR Owen has performed impressively in 2013

CarDealerMag.co.uk | 57

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Find out how easy it is to switch to us.

Call 0844 573 7591 or visit carcareplan.co.uk Car Care Plan Limited is authorised and regulated by the Financial Conduct Authority. ��| CarDealerMag.co.uk

Upsales and F&I Performance of the Year Car Care Plan

Sponsored by Car Care Plan Presented by John Saleh, sales manager, Car Care Plan

An AmTrust Financial Company

Phil Buchan from Jim Reid picks up his gong

Winner: Phil Buchan, Jim Reid Vehicle Sales Highly commended: Terry Troakes, McCarthy Cars Commended: Martin Pooley, Tempest 4 Cars

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hether it’s paint protection, extended warranties or service plans, every car dealer knows the importance of upselling.

When times are hard and sales are slow, upselling additional products can bring a welcome boost to a dealer’s bottom line.

But, like many things in car retailing, there are some that do a good job while there are others who excel. And it’s those in the latter category who are picking up this year’s plaudits.

The nominations said that our winner has helped the company to smash its 2013 finance turnover target and increased F&I volume by 48 per cent, while individual cases are up by 34 per cent. He has been part of a team that has

increased penetration, average balance and, more importantly for any dealer, commission. Our winner is Phil Buchan from Jim Reid Vehicle Sales in Inverurie, Aberdeenshire.

Highly commended goes to Terry Troakes of McCarthy Cars in Croydon, where a nomination said that Troakes has ‘implemented simple but effective procedures which, combined with comprehensive training of other members of staff, have resulted in massive profit gains’.

A deserved commended goes to Tempest 4 Cars’ Martin Pooley, who was praised for his proactive attitude when it comes to upselling in West Sussex.

Our congratulations go to Phil Buchan, Terry Troakes and Martin Pooley.

Terry Troakes from McCarthy Cars collects his highly commended certificate CarDealerMag.co.uk | 59

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Used Car Sales Team of the Year Sponsored by evolution funding Presented by Paul Hibbert, key accounts director, Evolution funding

Great customer service sealed the deal for South Hereford VW

Winner: South Hereford Garages Volkswagen Highly commended: Davies Car Sales Commended: Big Motoring World

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n the world of car dealerships, the used car sales team can sometimes be unfairly overlooked by the more glamourous business of selling shiny new metal – but their job is just as, if not more, important.

With used cars, it’s more about the experience that the customer receives and the clever little touches that make them shake the salesperson by the hand.

Our winner – South Hereford Garages Volkswagen – really does know how to put the customer first.

Nominations said this business has managed to deliver a year-to-date performance of 147 per cent of its target and a very strong average-

days-in-stock figure. One respondent said our winner has ‘always been focused on customer satisfaction and has even added loan bikes to their courtesy modes of transport for their more energetic customers’.

Another nomination said: ‘Tom Lyons has led the team throughout the year in a very rural setting. The business offers great customer service and once again has risen to the challenge in performing well with used cars.’

For highly commended, our congratulations go to the excellent team at Davies Car Sales in Warrington, Cheshire. Nominations said its passion really shines through.

Commended goes to a deserving Big Motoring World in Kent.

The team at Davies Car Sales pick up their highly commended award CarDealerMag.co.uk | 61

Used Car Finance Product of the Year Sponsored by HPI Presented by Wendy Swaine, head of major accounts, HPI Black Horse won the top gong in this category

Winner: Black Horse

Highly commended: FGA Capital for Fiat i-Deal Commended: DSG

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here’s no doubt finance plays a vital role in the process of selling secondhand cars.

And you’d be wrong to think finance is just a big thing for new cars – it’s vital business for used, too. Just think of the number of used cars that are sold in the UK every year and it’s fair to say that without great finance products on the market that figure wouldn’t be anywhere near as high. And that’s why it’s important for used car dealers to have the right finance products at their fingertips.

Dealers need a finance product that is simple to use, easily integrates into their systems and provides measurable profit gains to their business. ��| CarDealerMag.co.uk

Our winner won the top gong simply on merit.

We had a large number of nominations saying that because of this company’s sizeable portfolio of flexible products it is head and shoulders above the competition.

The winner of the Used Car Finance Product of the Year is Black Horse.

Going home with highly commended is a finance firm whose products have a large number of dealer fans. One nomination said: ‘It allows Fiat dealers to offer up to £500 deposit contribution on used Fiat PCP finance agreements – it’s really helping to get customers into our used cars.’

Highly commended goes to FGA Capital for Fiat i-Deal. Taking our commended gong is DSG. Our congratulations go to all of them.

FGA Capital pick up the highly commended award for the Fiat i-Deal product

Used Car Product of the Year 8

Sponsored by Blackball media Presented by duncan chappell, advertising manager, Blackball media Representatives from Deltapoint pick up their award

Winner: Deltapoint i-Control Highly commended: HPI Spec Check Commended: AA Cars

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e all know that sales people cannot sell cars without the right tools – and that’s why having clever and time-saving products at a dealer’s disposal can make or break a sale.

Whether it’s a brilliant online sales portal or a clever warranty scheme, a fantastic product can make light work of the sales process – for both the dealer and for the customer.

This category is designed to reward innovation and celebrate the products that dealers love to use and make their lives easier – and this particular product does exactly that.

It tells dealers what stock they should buy, how they should pay for it and how much they should sell it for, thanks to collating important

used car data – vital information for any dealer, as the competition to sell used cars gets ever stiffer. Dealers told us they love this product and welcome its introduction to the market place.

The winner of the Used Car Product of the Year is Deltapoint i-Control.

And for bringing something new to the industry, the product that goes home with highly commended is one that’s helping dealers not to miss out on selling cars because of poor valuations – it’s HPI Spec Check. Nominations said it is helping dealers get customers to their showrooms because they’re able to price their stock correctly.

Taking home a very deserved commended is AA Cars. Congratulations to all.

Highly commended winner HPI collects its award for Spec Check CarDealerMag.co.uk | 63

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Used Car Website of the Year Sponsored by BCA Presented by Simon Henstock, network operations director, Bca

Big Motoring World collect their award from Simon Henstock and Mike Brewer

Winner: Big Motoring World Highly commended: Grants Seat Commended: Williams Automobiles

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rom one hard category to judge to another. This one looked for, and celebrated, the best used car website on the market.

Every dealer that wants to sell needs a decent shop window – and in this digital age it’s their website, not their showroom, that creates the first impression for the customer. And with used car classified magazines disappearing fast – in particular, the UK’s leading example being axed earlier this year – the online space is rapidly becoming very important.

A great website is not one that just has the business’s contact details or pictures of a car, it also has to offer a selling experience that tempts the customer into the showroom.

Unlike our Ewards, this award is focused on websites that deal with used cars or the used car area of their website.

Our winner has taken the top gong because of its fastidious attention to detail, for its breadth of stock and the amazing information on every car it sells. It’s a great example of how used cars should be advertised on a website and one that has been a success. Our congratulations go to Big Motoring World in Kent.

Highly commended goes to a website that is bold, memorable and uses social media integration brilliantly – and that’s Grants Seat of Chelmsford.

Taking our commended place is Williams Automobiles, near Bristol.

Darren Williams accepts the highly commended award for Grants Seat CarDealerMag.co.uk | 65

Manufacturer Used Car Scheme of the Year Car Care Plan

Sponsored by car care plan Presented by philip morrison, head of corporate sales, car care plan

An AmTrust Financial Company

Kia Approved took the top gong in this category

Winner: Kia Approved

Highly commended: Volkswagen, Das WeltAuto Commended: Volvo Selekt

V

irtually every car manufacturer offers a used car scheme.

In these days of super-conscientious customers who shop around for the best service, they can’t afford not to.

But often they can appear very similar. A bit of ‘approved’ branding here and a few promises there – it’s no wonder customers can often feel confused and start to question the real benefits of going approved.

We were looking for the manufacturer schemes that really go the extra mile in giving great benefits to customers.

It was clear from our shortlist that there are some leaders in the field – three of which have been honoured in our awards. ��| CarDealerMag.co.uk

Our winner took the top gong because of its extra-special offering. This was a closely-fought battle and came down to the really small details – but ones that really matter.

Our winner – Kia Approved – has a 60-day or 1,000-miles exchange policy, showing it really has the customer at heart. Nominations said that along with the seven-year warranty, dealers are often selling cars that give great peace of mind to their used car customers.

Highly commended goes to a manufacturer’s used car scheme that is detailed, precise and offers great benefits for the customer. It also has great branding, and that’s Volkswagen’s Das WeltAuto scheme.

Taking commended is Volvo Selekt.

VW’s Das WeltAuto used car scheme won the highly commended award

Manufacturer Used Car Marketing Scheme of the Year Sponsored by Gen-3 Presented by gary barak, director of communications, gen-3 VW’s clever ‘142 Checks’ earned them the winner’s trophy

Winner: Volkswagen Das WeltAuto, 142 Checks Highly commended: BMW Approved Used – Still Got It Commended: Audi Approved – Solutions

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e now know the manufacturer with the best used car scheme – but what about the manufacturer with the best marketing scheme?

It’s one thing offering a fantastic used car scheme that has hundreds of benefits for the customer but how do they get to hear about it in the first place?

This new category aims to celebrate those car-makers that get their used car messages out there in the strongest fashion.

We were looking for the television, social media or internet adverts that best explained the benefits of that manufacturer’s used car scheme. They had to be clever, witty and, most importantly, memorable.

Our winner has already been praised for its detailed used car approval scheme but it is its advert that seals the win here.

For its clear portrayal of exactly what its approved used car scheme does, the winner is Volkswagen for its Das WeltAuto 142 Checks.

The advert had similar flair to Volkswagen’s new car adverts – a simple message but with a large dose of character.

For its advert that would clearly stick in the mind of any potential customer, the winner of our highly commended award is BMW for its Approved Used – Still Got It campaign.

Taking our commended gong is Audi Approved – Solutions.

Our congratulations go to VW, BMW and Audi.

BMW’s memorable Still Got It campaign went home with highly commended CarDealerMag.co.uk | 67

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Dealers’ Dealer of the Year Sponsored by gardx Presented by victor coutin, managing director, gardx

Umesh with Victor Coutin and Mike Brewer

Winner: Umesh Samani, Specialist Cars of Stoke

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his is a new category for 2013 and one that was suggested by the readers of Car Dealer Magazine.

The Dealers’ Dealer of the Year award looked for nominations from their peers across the used car industry.

We asked dealers to put aside their prejudices and their friendships and asked them to name individuals who do something great in the used car industry.

It’s said there’s nothing like recognition from your peers – and we believe this year’s winner can rightly hold that claim dearly.

We received a vast number of nominations for this category. From dealer principals of large multi-franchised dealer groups to the smaller

players in the industry, dealers were keen to honour the best.

Umesh Samani of Specialist Cars of Stoke has experienced a lot of exposure and celebration so far this year.

This is in recognition of his business-like attitude and spirit, and also because he loves his business and selling used cars to people from all walks of life.

He’s a great advocate of Twitter and can often be seen tweeting customers and even his rival dealers – he just loves chatting and striking up a conversation! One nomination said that Samani ‘is one of the nicest guys around’.

Our congratulations go to Samani on this very well-deserved award.

Umesh Samani is wellrespected in the industry and easily scooped the award CarDealerMag.co.uk | 69

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New Used Car Dealer of the Year Sponsored by aston barclay Presented by barry watts, group operations director, aston barclay

Mitsubishi’s Clive Messenger collected the award on behalf of Hawkins Motors

Winner: Hawkins Motors Penryn Mitsubishi Highly commended: Big Motoring World Canterbury Prestige Commended: TH White Fiat – Swindon

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et another new award this year – as requested by the readers of Car Dealer Magazine For this category we were looking to mark the efforts and tenacity of a dealer that has managed to set up and make a success of the used car business in 2013. The dealership had to be new to receive a place in our shortlist – and we had some amazing nominations, making the decision of which business went home as victor even more challenging.

With the used car market getting more and more buoyant as the dark days of 2008 disappear fast, dealers are taking a closer eye at how they can make the most of the opportunities available – hence why more dealers are stocking used cars.

Our winner was established in 1934, and this business is as passionate about delivering excellent customer service as it’s possible to be.

This year it signed a deal with Mitsubishi, and its brand-new dealership is winning new customers all the time. It has also joined one of the most promising dealer networks – so 2014 could be a great year. Congratulations to Hawkins Motors Penryn Mitsubishi.

Highly commended goes to a dealer who knows how to stock quality used cars and in large quantities. This company has opened a brand-new dealership this year to specialise in its premium used car stock – it’s Big Motoring World Canterbury Prestige.

Commended goes to TH White Fiat – Swindon.

The Big Motoring World Canterbury Prestige team with their award CarDealerMag.co.uk | 71

Best Performing Used Car of the Year Sponsored by Glass’s Presented by Steve Worrell, head of dealer sales, Glass’s

Steve Worrell hands over Skoda’s award to Jo Davis

Winner: Skoda Yeti

Highly commended: Land Rover Discovery 4 Commended: Toyota Land Cruiser

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hat is the used car that’s desirable to customers, isn’t affected too much by market changes and holds on to its value the best?

We worked with the leading valuations experts in the industry and used their data to find the winners.

We looked at cars right across the board and, as you can see from the shortlist, there was everything from crossovers and SUVs to a supercar included – and judged them on residuals: three years, 36,000 miles.

Our winner – the Skoda Yeti – has been hot since it was launched, with customers lining up to get their hands on one.

And that desirability has translated to the ��| CarDealerMag.co.uk

used car sector too – with dealers reporting that examples of this car don’t hang around long.

It looks great, is built well and, impressively, holds on to more than 67 per cent of its value after three years.

Dealers also nominated the Yeti, with one saying: ‘This is the car that changed perceptions towards the Skoda brand the most. When was the last time you heard customers queuing up for a used Skoda? Probably never!’

Highly commended goes to a car that’s loved by customers across the country simply for its sheer off-road ability and posh looks – it’s the Land Rover Discovery 4.

Taking commended is the rugged and dependable Toyota Land Cruiser.

Jaguar Land Rover’s award was collected

by Dan Connell

Used Car of the Year Sponsored by auto trader Presented by kevin harding, sales director, auto trader

BMW’s Gavin Ward collects the top gong from Kevin Harding and Mike Brewer

Winner: BMW 3 Series Highly commended: VW Golf Commended: Ford Focus

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or this award, we enlisted the help of the UK’s number one classified advertising portal, AutoTrader.co.uk, to help us compile our shortlist.

We analysed the most popular used cars on sale in the country to find the winners in this category.

We took the number of searches logged on Auto Trader in 2013 into account as well as data from trade experts CAP and Glass’s.

Taking first place is a car that has won battalions of dealer fans. Not only has it a desirable badge but also amazing residual values and more than three million views chalked up on Auto Trader. The winner, for the second year running, is the BMW 3 Series.

We also received nominations for the executive express 3 Series. A number said the car doesn’t hang around for long on dealers’ forecourts and is a leading choice for buyers right across the country – there’s no north and south difference with this car.

One nomination said: ‘I can confidently stock this car knowing that there will be a buyer for it.

You can’t say that about many cars these days.’

Taking highly commended with 2.9 million searches to its name is the dependable and classless Volkswagen Golf.

Commended goes to the Ford Focus, thanks to a whopping 2.4 million searches on Auto Trader – a fine result among more premium competition in this category.

Auto Trader logged 2.9m searches for the Golf in 2013 – it won highly commended CarDealerMag.co.uk | 73

Used Car Sales Manager of the Year Sponsored by Tracker Presented by Mark Tavner, national reseller manager, tracker

Alan Palmer inspires all those around him

Winner: Alan Palmer, Drift Bridge Volkswagen Highly commended: Paul Cook, Tees Valley Mitsubishi Commended: James Mackie, Big Motoring World

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ehind every good sales team, there’s a good sales manager.

An excellent sales manager is one who leads by example, who inspires, gets the best from their team and juggles pressure from above.

But as we all know, just because a sales manager has been a sales person, it doesn’t necessarily mean they know how to do the top job – not everyone has the skills to take their job to the next level.

Making the transition to the role is a tricky one, but our three finalists really show how that transition can be a successful one.

Nominations said Alan Palmer of Drift Bridge Volkswagen, in Epsom, is ‘dedicated to his job ��| CarDealerMag.co.uk

and fully supports the manufacturer’s used car programme’.

Another nomination said he ‘does all he can to maximise the impact of the used car operation’.

Paul Cook of Tees Valley Mitsubishi, in Darlington, wins a well-deserved highly commended. He has been described as ‘inspirational’ and as knowing how to motivate all those around him – not just his team. Cook also clocked 25 years’ service in 2013 and chalked up a running total of more than 5,000 cars sold to happy customers.

The commended place was taken by Big Motoring World’s James Mackie, based in Kent.

Our congratulations go to Alan Palmer, Paul Cook and James Mackie.

Tees Valley Mitsubishi’s Paul Cook has more than 25 years of experience behind him

Used Car Dealer Principal of the Year Sponsored by Supagard Presented by sue healey, key account manager, supagard

Nathan Tomlinson took the spoils in this category

Winner: Nathan Tomlinson, Devonshire Motors Mitsubishi Highly commended: Danny Sacco, Lansdown Mazda Commended: David Willoughby, JCB Medway Volkswagen

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his is another award that was requested by our readers to be added to the lineup this year.

Whether it’s a small group with one dealership or a dealer group with several outlets, the role of the dealer principal doesn’t change.

They need to be a person with an eye for detail, the know-how to lead their team through the best and the worst of times and how to make their dealership a top destination for customers.

This was another highly-fought category, making judging hard and deciding the overall winner and commended places even harder.

Taking this prize is Nathan Tomlinson from Devonshire Motors Mitsubishi in Barnstaple, who

is in charge of a dealership that holds a franchise of a resurging car brand.

With clever ideas such as spa days and VIP events, he’s always thinking up new ways to boost customer integration.

Our highly commended award is taken by a man who inspires his team to work hard, knows the importance of the products he’s selling and is great with customers – Danny Sacco from Lansdown Mazda near Bath.

Winning the commended award is David Willoughby from JCB Medway Volkswagen at Gillingham in Kent.

Our congratulations go to Nathan Tomlinson, Danny Sacco and David Willoughby.

Lansdown Mazda’s dealer principal Danny Sacco won highly commended CarDealerMag.co.uk | 75

Congratulations to...

Award sponsored by:

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Best Used Car Customer Care Sponsored by FIRST RESPONSE and presented by JAMES BATCHELOR, EDITOR of CAR DEALER MAGAZINE, ON BEHALF OF FIRST RESPONSE

McCarthy Cars winning for the second year running

Winner: McCarthy Cars

Highly commended: Jim Reid Vehicle Sales Commended: Knights BMW

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t’s easy for a dealer to say that they know how to look after customers but actually doing it is something quite different.

And the ones who know how to do it best are the dealers who realise that used car customers are no different from buyers looking for shiny, showroom-fresh new cars.

Winning for the second year running, McCarthy Cars in Croydon is a well-respected dealer with countless happy customers.

It has a 99 per cent customer satisfaction rating on an independent review website and also has more than 1,200 customer testimonials – no mean feat to achieve and one that shows the

business must be doing something right.

One nomination said: ‘They treat customers how they would hope to be treated,’ while another noted: ‘It’s a common-used expression but one that’s really true with McCarthy Cars – they have the customer’s interests at heart and won’t stop until the customer is happy.’

Highly commended goes to Jim Reid Vehicle Sales of Inverurie, Aberdeenshire, who earned nomination comments such as: ‘He’s customerfocused and has outstanding customer retention.’

Commended goes to Knights BMW, based in Staffordshire.

Our congratulations go to McCarthy Cars, Jim Reid Vehicle Sales and Knights BMW.

The Jim Reid team collecting their highly commended award CarDealerMag.co.uk | 77

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Outstanding Achievement of the Year Sponsored by AA Cars Presented by Paul Davis, DIRECTOR, AA Cars

JLR’s UK sales director Chris Newitt collects the gong

Winner: Jaguar Land Rover

I

n this category we were looking for a dealer, an individual or a company that has done something incredible this year.

And this year’s winner is truly deserving of the award. Five years ago, this company was producing cars that only really appealed to its traditional customer base.

But five years on and the story couldn’t be more different.

Jaguar Land Rover now has market-leading

products in a whole raft of categories, excellent customer satisfaction scores and battalions of new buyers desperate to get behind the wheel of its cars.

Its UK factories are churning out record numbers of cars, and dealers are queuing up to join its impressive team.

Moreover, the dealers that do have one of its franchises are enjoying increased new and used car sales, bumper profits and fantastic state-ofthe-art cars to sell.

Jaguar Land Rover is a burgeoning British success story in the new and used car sectors CarDealerMag.co.uk | 79

Lifetime Achievement of the Year Sponsored by northridge finance Presented by david smith, regional manager, northridge finance

David Smith, Ray Sommerville and Mike Brewer

Winner: Ray Sommerville, managing director, Perrys Group

W

hen it comes to an individual who could be described as embodying the spirit of the used car industry, there are few who beat Ray Sommerville, managing director of Perrys Group.

For this category, we were looking for a character who not only lives up to the used car industry’s entrepreneurial spirit but also one who has praise among their peers.

They needed to be an industry big-hitter and one who could be justifiably rewarded for their lifetime’s service to the used car industry. ��| CarDealerMag.co.uk

As such, we received a large number of nominations for Ray Sommerville. Most of them didn’t waste unnecessary words on describing why he should walk away with this gong at our awards ceremony, but they all agreed on one thing – his passion.

One nomination summed it up perfectly: ‘He has served the motor industry well for more than three decades. He is enormously popular among his peers and has contributed greatly to the wellbeing of the industry and to the motor groups he has worked for.’

Dealer group Perrys has blossomed under Ray Sommerville’s stewardship

CarDealerMag.co.uk | 81

W

e say it time and time again: the importance of the worldwide web cannot be overestimated. But it’s most definitely a true statement.

Websites are no longer simply an advert or a nice thing to have. They are almost as important as a car dealer’s stock and business premises. Websites have grown from being a luxury to a necessity.

Now in their sixth year, our Ewards aim to mark out and celebrate the very best automotive retail websites on the net.

We called for nominations earlier this year and received hundreds of entries, with our judging panel also submitting their favourites. Our judges – Spidersnet,

��| CarDealerMag.co.uk

Responsive Digital, Autotrade-mail and Razsor – then deliberated over the final shortlist and chose this year’s winners, highly commended and commended places.

In some cases, the winners won by a narrow margin over the highly commended winners, so the businesses that went home with a highly commended gong can feel genuinely proud of their efforts.

Here they are, then – the winners of the Car Dealer Ewards 2013.

James Batchelor Editor

CarDealer

EWARDS 2013

Franchised Dealer Website of the Year Presented by kevin watson, operations DIRECTOR, autotrade-mail

Winner: Williams Automobiles Highly commended: Jemca Car Group Commended: Benfield

I

n the six years that we have been running Ewards, the franchised dealer category is routinely the one that is most highly fought over. Why? Because the stakes are high when it comes to this sector, as customers can all too easily be persuaded to take their business elsewhere if they come across a website that doesn’t grab their attention.

But that’s not the case with our three finalists.

Taking commended is Benfield. Highly commended is awarded to Jemca Car Group’s bold and interesting website.

And so to our winner – and our judges loved it.

One said: ‘It’s clean, has clear calls to action, has no advertising – it’s all about the cars.’ Another impressed judge said: ‘The imagery is beautiful and aligned with the prestige motors.’ The winner of the Franchised Dealer Website of the Year Eward is Williams Automobiles.

Kevin Watson presents the Eward to Williams Automobiles

Independent Dealer Website of the Year Presented by simon berry, senior account manager, spidersnet

Winner: Auto Sportiva

Highly commended: Amari Supercars Commended: Oliver Corey Garages

T

here’s a tendency among some in the trade that just because a dealer is an independent they can never worry the big boys – they just don’t have the budget,

after all.

Wrong! With a little thought and an eye for detail, independent dealer websites can be some of the best around.

Three of these became our finalists.

Taking commended is Oliver Corey Garages.

Highly commended has been awarded to a website that delivers a premium experience – and that’s the site for Amari Supercars.

The winner is Auto Sportiva, and one judge described the experience of navigating its website as ‘clean and easy with great navigation’.

Another judge commented: ‘It’s a really nice solution and has a great mobile theme.’

Congratulations to all three.

Spidersnet collects the award on behalf of Auto Sportiva

CarDealerMag.co.uk | 83

CarDealer

EWARDS 2013

Car Manufacturer Website of the Year Presented by kevin harding, sales DIRECTOR, auto trader

Winner: Aston Martin Highly commended: Jaguar Commended: Volkswagen

I

t’s fair to say that manufacturer websites are nearly always going to look the business. After all, they do have huge budgets and the best design teams on hand to create the best that money can buy – but that doesn’t mean they always get it right.

Three websites stood out, though, with commended going to a well-deserved Volkswagen.

Highly commended was Jaguar – a car maker experiencing an uplift in consumer interest these days and with a website that’s a step up from before as well.

Our winner knows how to create desirable products – and the same can be said of its website too. One judge said: ‘It’s graphical and interactive, and has a very clear and unique layout.’

The winner of the Car Manufacturer Website of the Year is Aston Martin.

Aston Martin took the top gong in this category

Social Media User of the Year Presented by alex knight, commercial DIRECTOR, responsive digital

Winner: Umesh Samani

H

ere we were looking for the dealer that uses social media in an inspiring way.

It’s easy to sign up to a social media platform these days, but making a success of it is quite different.

Not so for our winner – he’s created quite a name for himself as the man who does social media properly. He’s always tweeting, chatting to customers and posting photos of new stock he’s just acquired.

One judge said: ‘He’s a true professional ambassador of the car industry.’

Another said: ‘He uses consistent branding, has a friendly tone, has some good engagement and a good following. He makes a nice use of video and imagery too.’

Another remarked: ‘A true professional ambassador of the car industry.’

Our congratulations go to Umesh Samani for a well-deserved win. ��| CarDealerMag.co.uk

Umesh Samani collects his gong

CarDealer

EWARDS 2013

WHAT THE JUDGES SAY...

Responsive Digital W: responsivedigital.co.uk T: 08445 580 386

Q A

What attracted you to being a judge for the Ewards 2013?

As a company that works with the web and car dealers day in day out, we’re obviously interested in seeing what the best practices are among the top dealers and groups, and to see how many of them have the finger on the pulse of technology change. While historically the motor industry has tended to lag behind other areas of retail in terms of digital investment and understanding, there are a lot of dealers doing a good job out there, and it’s only fair that we reward them for their hard work and investment when they are getting things right!

Q A

Have you spotted any trends in the digital sector during your judging?

In general, franchised dealers and groups have come on leaps and bounds with their digital strategies in the past year or so. And they have had to. 2012 saw an explosion in the mobile web, and this trend has continued throughout this year, with many companies now experiencing upwards of 40 per cent of their site traffic coming through non-desktop devices, whether mobile phones, tablets or e-readers. In addition, social media continues to become ever more important as a reputationmanagement and customer- communication channel.

Q

What should the automotive industry be doing to enhance its online presence in 2014?

A

With recent changes to Google’s stance on mobile, dealers need to seriously think about ensuring ‘continuity and consistency of experience’. What does that mean? The first step is analysing and recognising how people are accessing their websites. Most car buyers aren’t just looking on a desktop computer, with many starting their search on a phone while on the move, or on a tablet on their sofa. So it’s more important than ever to make sure websites are readable, accessible and optimised for the hundreds of web-enabled devices out there. The next step is ensuring continuity of experience. Recent evidence published has

‘‘

Franchised dealers and groups have come on leaps and bounds with their digital strategies

shown that the biggest reason for consumer dislike of mobile websites is the loss of functionality (from slimmed-down mobile offerings), and this is a lesson car dealers need to address. The car-buying research process is now occurring over a number of weeks and months and, importantly, over multiple devices.

Q A

What will you be doing in 2014 to help dealers?

We will continue to help dealers to plan and execute the right digital strategy to fit their business, with custom responsive websites ensuring their site is delivering a consistent user experience and also setting them apart from their competitors via engaging, different design and class-leading functionality. 2013 was a big year for us as we overhauled our content management system, WebBuilder, to work with responsive website designs, as we recognised during 2012 that this was where

Google and the other search engines were heading. It makes huge sense in terms of search engine optimisation, user experience and also economically for car dealers to be building and managing one website as opposed to separate sites for different devices, and this has been confirmed with our own experience.

Our first responsive dealer website was for Jemca Car Group. Users are more engaged on page, are accessing the site more from mobile and tablet devices and, most importantly, are consequently inquiring in greater volumes than ever before, which is having a huge positive effect on the marketing return on investment.

What we have learnt from this, and other responsive sites, we will use to inform other dealers about why this is so important to the web, and how we can help them achieve it themselves.

Alex Knight, commercial director, Responsive Digital CarDealerMag.co.uk | 85

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We provide quality service for all. Don’t get lost in the crowd.

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CarDealer

EWARDS 2013

WHAT THE JUDGES SAY...

Spidersnet W: spidersnet.co.uk T: 01273 837 560

Q A

What attracted you to being a judge for the Ewards 2013?

We were really pleased to be involved - it’s fantastic to recognise online excellence in the automotive industry.

At Spidersnet we believe that providing strong, clear and creative web resources results in the best conversions for our dealers and, in turn, the best user experiences for their customers. To take a look at the dynamic offerings across the web and to help Car Dealer Magazine find the best around is a great reminder of just how fastpaced the used car landscape is.

Q

Have you spotted any trends in the digital sector during your judging?

A

Definitely. We’ve noticed that integration is expanding more and more. Long gone are the days of offering websites acting only as basic windows into a business.

Uptake of more comprehensive marketing packages is continuing to grow – joining up the dots of online experience to boost expertise, interaction and practicality and, ultimately, success. As such, we get to see digital provision increase and diversify, both in terms of functionality and in terms of how we communicate with dealers and their customers.

Q

What should the automotive industry be doing to enhance its online presence in 2014?

A

There’s so much used car dealers can do to stand out and offer excellent service - from eye-catching stock and online valuations to instant chats and digital learning environments.

We expect this will run and run. One of the routes that’s always key is social media - if you’re not on Twitter and Facebook at the very

‘‘

If you’re not on Twitter and Facebook at the very least, you’re missing a trick!

A

least, you’re missing a trick! Customer service, promotion and competition, the fun stuff and latest news - social media is one of the best channels to inspire loyalty and new leads.

Connect with your customers and influential industry figures and your social reach can be lucrative. Don’t forget, videos can increase conversions by 86 per cent. And how-to guides, stock profiles and case studies - for shareable social content (shares are great for snowballing across the internet to more and more followers) – on your website work very well, an example being the dealership MJ Warner.

There’s a lot we want to achieve in 2014, and we think it’s right to be ambitious and dedicated to our customers. As such, we’ll continue to provide quality products while developing them to reach the new potentials that arise.

To increase sales and penetration we’ll be launching a new CMS and new products throughout the year, and for brand engagement we’ll be keeping our social focus and continuing our series of digital seminars with further training opportunities for all our customers.

Watch this space!

Q

Laura Coleby, divisional director, Spidersnet

What will you be doing in 2014 to help dealers?

CarDealerMag.co.uk | 87

CarDealer

EWARDS 2013

WHAT THE JUDGES SAY...

Autotrade-Mail W: autotrade-mail.com T: 01243 523 000

Q

What attracted you to being a judge for the Ewards 2013?

A

Being in the very fortunate position as the UK’s leading online ‘real time’ car-trading network, we can see some tremendous firstclass industry operators that largely go unnoticed.

Ewards 2013 gave us the opportunity to highlight these and let some of these unnoticed operators become noticed.

Q

Have you spotted any trends in the digital sector during your judging?

A

We’ve certainly spotted the pace of change and the hunger for professional IT solutions grow.

A few years ago, the digital arena was a little more advanced than the audience, which presented difficulties for both sides of the fence.

But over the recent few years, there has been a tremendous amount of realignment.

Dealers have begun to really embrace the efficacies it can provide and benefit from the rewards a true partner can provide.

Q

What should the automotive industry be doing to enhance its online presence in 2014?

A

Continue to push the boundaries. People within the industry should be thinking outside of the box and also constantly ask themselves: ‘What would I want? Where could my business benefit from the reach of IT? How would I want to experience the journey, as either a group CEO, sales executive or as a customer?’

Individuals in the industry should be keeping

��| CarDealerMag.co.uk

‘‘

Individuals in the industry should be keeping a constant eye on those that do it right. a constant eye on those that do it right. If you spot an instance when someone has done something correctly, you should learn from it and replicate.

Q A

What will you be doing in 2014 to help dealers?

We will not be standing still. Autotrademail was established in 1999 (yes, we happily survived the burst of the dotcom bubble!) and we are part of the Trader Media

Group. We have been helping dealers to buy and sell quickly, efficiently and economically, and we have many thousands of happy dealers on our books.

We have continued to work extremely hard at growing the business since 1999, and we will be doing exactly what we have been doing for the past 15 years in 2014 – and that is serving our dealers in meeting their sourcing and disposing needs in an unbelievably lowcost way.

Kevin Watson, operations director, Autotrade-mail

CarDealer

EWARDS 2013

WHAT THE JUDGES SAY...

Razsor W: razsor.co.uk T: 08433 096 679

Q

What attracted you to being a judge for the Ewards 2013?

A

Having worked in the industry for a number of years, it was a great opportunity to help recognise dealerships who are working well in digital.

Q

Have you spotted any trends in the digital sector during your judging?

A

Utilising a broader range of digital techniques and a focus on mobile experience are growing within the industry.

However, as a judge, I became acutely aware that the implications of this are still not always clearly understood.

During the judging, it became apparent that there is still a focus on having lots of ‘bells and whistles’ leading to feature-rich content whilst missing some of the basic elements.

For example, websites that are built with lots of functionality in terms of the desktop solution, do not always have a relevant mobile site. This generates the concern that often the focus is still on generating leads as opposed to converting through excellent consumer experiences.

Q

What should the automotive industry be doing to enhance its online presence in 2014?

A

Digital marketing will continue to evolve in 2014, however some of the cornerstones will remain unchanged like the need to embrace mobile solutions.

Digital offers the opportunity of a level playing field for all and those who are willing to dip their toe in are not going to be too far

‘‘

There is still a focus on having lots of ‘bells and whistles’ whilst missing some of the basic elements. behind those who are fully committed.

Material will need to continue to be relevant across all aspects of digital marketing.

Those who succeed will capitalise on the ability to have a joined-up approach that provides an excellent consumer experience as well as ticking the boxes of search engines.

Q A

What will you be doing in 2014 to help dealers?

During 2014 we will be looking to support dealerships wherever they are in terms

of their journey in the digital world. We will be doing this by providing opportunities to enhance their understanding of digital marketing, clearly communicating what we are able to deliver and supporting them with advice around what they need to do to remain visible and relevant. We’ll be making sure dealers are able to compete in the ‘always-on’ environment that is digital. [CD] Maria Whittington, head of product, Trader Media Group

CarDealerMag.co.uk CarDealerMag.co.uk | 89 | 89

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Mike Britton, Motor Sales Director

Here at Barclays Partner Finance, we want to make sure our dealer partners are fully prepared by keeping them updated with the information they need to help them through the regulatory changes as smoothly as possible.

What's changing?

The FCA Handbook is in the process of being updated.

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CarDealerMag.co.uk | 91

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focus on.

5 for 2014

How to avoid a scandal AMS

B

W: ams-gap.com T: 01869 232 563

ecause of an increase in the level of customer awareness, the GAP insurance market has become increasingly competitive recently.

But with the majority of GAP providers offering just limited-cover Market Value Only GAP, dealers must ensure that their buyers are properly informed in order to avoid mis-selling complaints under the new FSA/FCA GAP Regulations (bit.ly/GAPregs).

AMS believes that Market Value Only GAP policies should generally be avoided if GAP insurance is not to become the next mis-selling scandal, following on from the problems surrounding Payment Protection Insurance.

The primary reason for this is that Market Value Only Gap will just pay the difference between the customers’ original invoiced purchase price and the vehicle’s Retail Market Value as set by Glass’s Guide Retail at time of loss and not the customers’ actual motor insurance settlement, which will invariably be much less. Consequently, the customer will not receive the full GAP claim settlement anticipated.

‘The popularity of GAP insurance has grown dramatically over the past five years and has become an essential and profitable insurance product for most dealers, particularly since the demise of PPI,’ says Peter McKenna, the managing director of AMS Group.

‘Unfortunately, the majority of GAP providers only offer limited cover Market Value Only GAP which, if not properly explained to a customer upfront, can result in mis-selling complaints. What we do at AMS Group is make up the difference between a customer’s invoiced purchase price and their motor insurance settlement, whether or not the customer obtained Retail Market Value or not from their motor insurer.’

Since 1992, AMS Group has been providing insurance products, consultancy, F&I training and recruitment to major manufacturers and dealer groups throughout the UK and Europe, including Fiat, Ford, Toyota, Mercedes-Benz and Volvo, to ensure that dealer staff are properly clued up when it comes to their GAP products and that they can offer the right product to meet their customers’ requirements.

AMS Group does not provide Market Value Only GAP, and introduced its unique range of Asset Secure GAP insurance products to dealerships across the UK in 1992. These provide the most comprehensive cover available for all vehicles.

GAP sales penetration for franchised dealers in the UK is now averaging approximately 25 per cent, with some dealer groups achieving 65 per cent and more. In fact, the consensus within the industry is that the average GAP penetration level in this country will match the US rate of 70 per cent within the next five years.

The one thing dealers need to be aware of is that they should not tell a customer a GAP policy will pay the difference between a motor insurance settlement and the original invoiced cost of the vehicle in the event of a write-off if that customer is protected by Market Value Only GAP. It’s essential for a dealership sales team to fully understand GAP products and to inform buyers of exactly what they’re getting for their money.

McKenna explains: ‘Sales compliance rules specify how the dealer must explain to their customers exactly what is

covered and excluded under a GAP insurance product and, most importantly, how a claim is calculated using Glass’s Guide in relation to Market Value Only GAP products.

‘As motor insurers rarely, if ever, provide a pay-out based on Glass’s Guide Retail, particularly if the customer also has GAP cover, the customer will not receive the GAP settlement anticipated and could still owe money on their finance agreement.’

This can lead to those dealers who sell Market Value Only GAP invariably increasing their exposure to mis-selling complaints, unless the terms and conditions have been clearly explained to the customer upfront and documented with a correctlyworded Demands & Needs.

‘Most Market Value Only GAP policies also contain a number of other claim reduction and rejection clauses that the dealer should be aware of, which the FCA may consider unfair in the event of a complaint,’ says McKenna.

‘As an example, Market Value Only GAP offers an unrealistic limited claim period of 30 days, and the pre-approval clause – where it states that “in the event of a total loss you must not accept any offer from the vehicle insurer without the GAP insurer’s permission” – means they can completely reject a claim, even though the majority of customers will have accepted the insurer’s settlement before making a GAP claim.’

Because of an increase in the number of customers who have lodged complaints after they have made a claim through their Market Value Only GAP, manufacturers are now beginning to offer full pay-out GAP insurance to make up the difference, but even these policies often come with their own limitations and usually cost much more.

It’s therefore important for dealerships selling GAP products to avoid selling Market Value Only Cover completely and to ensure their sales process is FCA-compliant, with trained sales staff who fully understand the GAP products they’re selling.

By using AMS Asset Secure GAP and enrolling staff on dedicated training programmes, dealers can be sure they will be able to offer exactly the right cover to suit their individual customers’ needs.

By Sophie Williamson-Stothert (@1Sophie_W) CarDealerMag.co.uk | 93

World Class Training Facilities for your team Working in consultation with industry experts, Babcock has designed and developed a world class training facility for Body Repair and Paint customers. Based at the Technical Training Academy in Milton Keynes, there is over 12,000 sq ft of space GHGLFDWHG WR %RG\ 5HSDLU DQG 3DLQW WUDLQLQJ ZLWK Æ‚YH VSHFLDOLVW DUHDV LQFOXGLQJ D steel panel bay, Mechanical, Electrical and Trim bay, aluminium repair booth, paint mixing room and spray booth. Each practical training area will also have an adjacent FODVVURRP WR VXSSRUW NQRZOHGJH EDVHG OHDUQLQJ 6WXGHQWV ZLOO EHQHÆ‚W IURP UHFHLYLQJ Æ‚UVW FODVV WUDLQLQJ XVLQJ WKH ODWHVW HTXLSPHQW LQ D TXDOLW\ ZRUNLQJ HQYLURQPHQW 7R Æ‚QG RXW PRUH FDOO RU HPDLO DXWRPRWLYH#EDEFRFNLQWHUQDWLRQDO FRP www.babcockinternational.com/automotivetraining

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focus on.

5 for 2014

Delivering top training with latest technologies BABCOCK

W

W: babcockinternational.com T: 01908 232808

hen it comes to running an on-site workshop and managing the staff that carry out vital work on customers’ cars, it’s important for dealers to know their employees are up to scratch and trained to use the latest manufacturer equipment.

Babcock International has become the UK’s largest engineering support service organisation since it began trading back in 1891, and it now provides a comprehensive range of training services across the motor trade.

In 1993, the fast-growing organisation integrated its training services into its international business division. It now specialises in delivering critical support and training sessions that focus on managing assets and infrastructure, delivering projects and programmes and integrating engineering expertise.

In the education and training sector, the company employs a workforce of 2,500 skilled

personnel and manages the training of more than 22,000 learners.

For this very reason, Babcock International has been labelled as the major player in the automotive industry when it comes to delivering both independent and private training services across dealer networks.

‘Babcock International is the UK’s largest training provider in the private sector,’ says business development manager Mark Bowles. ‘While we work with a number of independent dealers from large and small businesses, we also work directly with a number of key manufacturers.

‘This enables us to share technology across the board, meaning learners enrolling on Babcock International courses will gain more experience with us than they would on an average college course.’

In order to ensure manufacturers and dealerships across the network get the best from their staff, Babcock International offers a number of training courses focused on areas such as vehicle paint and bodywork.

These courses are usually run from the Babcock Technical Academy in Milton Keynes – a well-

equipped and spacious building dedicated to vehicle paint and bodywork training.

Babcock International invested £250,000 in the existing facility in order to deliver apprentice programmes for German manufacturers Volkswagen and BMW, in which the sessions include a panel of senior assessors.

‘We deliver circa 37,000 technical and nontechnical training days each year from a purposebuilt BMW-branded academy,’ says Bowles.

‘Babcock International trains more than 200 apprentices on a three-year BMW Group Dealer Apprenticeship scheme and delivers brand training across the entire network.’

By working with a number of key manufacturers, including Volkswagen, Bentley Motors, Rolls Royce, BMW and Mazda, Babcock International has access to all the latest equipment and innovative technology, including spray booths, paint-mixing equipment and workshops.

‘Having such a close relationship with the manufacturers allows us to deliver training programmes with the very latest technologies to our clients. That’s what makes Babcock International the leading company in this sector,’ says Bowles.

‘As well as working closely with manufacturers, Babcock runs independent paint and bodywork programmes for dealership employees. This means dealership staff enrolling on the courses will always benefit from using the latest tools and equipment.’

To ensure that your employees are correctly qualified and equipped with the crucial knowledge they need to run and fulfil the daily activities of a modern workshop, dealership staff will always receive the best and most up-to-date training from Babcock International.

By Sophie Williamson-Stothert (@1Sophie_W)

CarDealerMag.co.uk | 95

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5 for 2014

The direct connection that aims to deliver in an hour Carfinance247

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W: carfinance247.co.uk T: 01612 740 812

abelled as the UK’s leading online car finance broker, Carfinance247 has now launched a Dealer Partner Programme where dealers can earn commission by introducing customers directly to Carfinance247.

Carfinance247 was the very first online car finance broker and soon became a sub-prime specialist by delivering more opportunities for dealers to secure finance for their customers.

Carfinance247 aims to provide dealers with more opportunities in order to ensure those all-important leads aren’t thrown away.

If a customer doesn’t have a strong credit rating, the company will always find the best lender to suit their requirements, meaning dealers are more likely to secure a sale.

Sales director Alex Hurst explains: ‘Our aim is to help dealers secure finance for their customers within the hour from our large panel of lenders and complete the deal the same day that we receive the application.

‘We believe that if an application has been declined dealers should contact us straight away.

‘We are a sub-prime specialist, and for customers

with poor credit ratings our in-house underwriters will review the application to find the right finance package to suit their requirements.’

Having been in the industry for more than 10 years, Carfinance247 will ensure dealers receive a fast-paced service.

Dealers can choose to submit a finance application directly to Carfinance247 on the telephone or online.

The Dealer Partner Programme incorporates technology that allows Carfinance247’s partners to track the progress of each and every proposal in real time. Once an application has been submitted, dealers will be assigned their own personal account manager, which gives them the opportunity to leave all the hard work to the company.

Essentially, if dealers would prefer to leave the paperwork and customer interactions to the account manager, they can do so.

Carfinance247 is best known for its fast turnaround in securing approvals and making sameday payments once a finance deal has been funded.

By using the Dealer Partner Programme, dealers will receive a stress-free service and customers will

be left with a satisfying experience.

‘Throughout the whole process, the dealer has a designated finance adviser as their single point of contact, and that enables us to provide a quick and efficient service underpinned by open communication,’ says Hurst.

‘Dealers will often secure finance from direct lenders. We do not want to replace dealers’ existing business relationships, we want to enhance their options by providing them with a trusted partner for sub-prime business where, unlike our competitors, we pay commission.’

Becoming a partner takes no time at all and dealers can be proposing their first application in minutes. Through the online portal, over the phone, or by fax, Carfinance247 has taken the hassle out of securing finance for your customers.

Cutting-edge innovation enables dealers to generate more business and that’s why Carfinance247 is the company that dealers should be using in 2014.

By Sophie Williamson-Stothert (@1Sophie_W) CarDealerMag.co.uk | 97

Like other paint protection ... only better.

That’s what the majority of the AM Top 100 think.

Call us today to find out how you can profit from the UK’s Number One Paint and Fabric Protection.

Supagard Limited 19-27 Gavinton Street, Muirend, Glasgow G44 3EF. Tel: 0141 633 5933. Fax: 0141 637 7219

www.supagard.co.uk ��| CarDealerMag.co.uk

focus on.

5 for 2014

Work with the leader in 2014 supagard

A

W: supagard.co.uk T: 0141 633 5933

fter celebrating 25 years in the business, Supagard has been labelled the UK’s market leader in professionally-applied paint and fabric-protection products, and according to the company it’s not just about the product, it’s also about the knowledge.

Terry Abbott, Supagard’s divisional director, says: ‘Our philosophy is simple – give our trade customers the best quality, value, service and support in the country and make it easy for them to sell our products and maximise their profits at the same time.’

Supagard has enjoyed exceptional double-digit growth throughout 2013, with increased business from its existing customer base and several new customers, including Aston Martin, now specifying Supagard paint and fabric protection as its products of choice. It shows that Supagard is the win-win choice for keeping customers happy and improving bottom-line profits.

Many of the top car manufacturers and dealer groups endorse Supagard, and David Paterson, Supagard’s head of brand, says it’s because they know they’ll receive top-standard customer service as well as class-leading products.

‘They want hassle-free products that can generate substantial earnings for both them and their dealer network while keeping their customers satisfied,

and Supagard delivers in every way. Our current comprehensive range offers world-class protection and value to both new and used car customers and an unbeatable source of additional revenue to motor dealers and manufacturers,’ says Paterson.

To ensure dealer staff are in the know and ready and waiting to make a sale, Supagard offers dealerships a comprehensive package of training and support programmes to suit everyone at all levels. Supagard also offers free follow-up courses and intensive tuition.

Allen Ford Group sales director Michael Ball endorses the importance of training and development to maximise the opportunity represented by paint sealant. ‘Of course, the vehicle is the most important part of the deal, but in the same way as the sale of that vehicle, other associated products like GAP, dealer-fitted accessories and paint protection need proper training to sell them too,’ he emphasises.

Allen Ford has worked with Supagard for more than 20 years, and after the poor experience the company encountered without Supagard a few years ago, the group has come to realise it wouldn’t want to change its partnership with Supagard again.

‘Within a year, we decided we had to go back to Supagard,’ explains Ball. ‘We went back not only because of the quality of the products, but also

because of the excellent support and training which have enabled us to be successful with the product.

‘We always insist on having the most experienced people from Supagard to give us support and Terry has consistently done just that. When we introduced Supagard into our Swindon and Bath dealerships, Terry took all new starters in those showrooms through a comprehensive induction course, part of which includes learning how to sell the product.’

Training is crucial in reaching the Allen Ford Group benchmark of 35 to 40 per cent penetration on car sales, and according to the group Abbott plays a leading role in achieving those figures.

‘There’s also fortnightly follow-up training, in which Supagard helps underperforming sales staff and managers by giving them refresher lessons to help them get back on target. Our staff are really pleased with the training as it’s very thorough and helps them to achieve their goals,’ says Ball.

Supagard not only offers a vast range of protection and security products, it can also arm your sales team with the knowledge and skills required to maximise the financial opportunity that paint protection represents.

By Sophie Williamson-Stothert (@1Sophie_W)

CarDealerMag.co.uk | 99

���| CarDealerMag.co.uk

focus on.

5 for 2014

Selling and buying stock just got a whole lot simpler trusted car buyerS

T

ired of paying a tad too much for a car at auction? Fed up with buying a car from a trade supplier only for it to break down two days later? Buying quality and dependable used stock that easily sells is a problem for many a dealer, large or small.

Customers have a similar concern too. Often a customer wants to get rid as quickly as possible for the best price and for the least amount of hassle.

But going down the route of advertising a car on a classified site can sometimes be costly and a timewasting experience. Happily, however, there is one service that can help out both sides of the coin – Trusted Car Buyers.

The service was set up in October 2013 and had one aim in mind – to make selling and acquiring cars simple.

‘Trusted Car Buyers encapsulates the essence of what sellers need while also enabling dealers to operate such a business that has, until now, been reserved for large companies with the resource funding and technical ability to launch such a business,’ says Trusted Car Buyers’ head of business development, David Jones.

In essence, Trusted Car Buyers allows both independent and franchised dealers to buy stock directly from the general public simply and with minimal fuss. Think of it as a combination of We Buy Any Car and Auto Trader and you wouldn’t be

W: trustedcarbuyers.com T: 08455 610 201

too far wrong. But where Trusted Car Buyers differs from these two big names is in cost.

‘We’re taking away a lot of the upfront costs associated with dealers having to build themselves their own online platform,’ says Jones.

‘We give the infrastructure straight to the dealer for them to enter this market and start buying cars from the general public.’

So how does it work? Well, unsurprisingly, that’s very simple too.

The customer logs on to trustedcarbuyers.com, enters their car’s number plate into the website, and this then queries a DVLA dataset and returns the vehicle data.

After that, the customer enters a few details about the car – optional extras and damage for example – and then trustedcarbuyers.com automatically generates a valuation based on CAP data. The customer then chooses whether they want to book an appointment too.

Next comes the really clever bit. If it’s a natural inquiry, the quote request is then sent automatically to the nearest Trusted Car Buyers dealer, or directly to the specific dealer if the inquiry has derived from that dealer’s online advertising.

Here the dealer will conduct a final inspection and pay out once the customer attends the booked appointment.

Customers get to complete the deal within a day

and the dealer doesn’t have to move an inch – the stock comes to them.

Getting started couldn’t be any easier either.

Once a dealer has chosen their package – subscription or pay as they go – they are given their own page and information on the Trusted Car Buyers portal with a unique branch URL to capture all leads generated by online marketing activity.

Dealers then get their own bespoke administration panel on the platform to where they can make adjustments on listed vehicles, and the panel also doubles as a CRM quote-management system.

Dealers will get their own account manager to assist them whenever they need help and to deal with their marketing spend. They will also work with a dealer’s marketing team to set up and manage online pay-per-clicks campaigns, track response and keep the dealer updated with reports.

But what happens if a dealer gets offered a car that doesn’t suit their stock profile? They can offer that car to the Trusted Car Buyers network or transfer the vehicle instantly to the Trusted Car Buyers’ trade portal ATB remarketing for any member of the trade to advertise.

Try Trusted Car Buyers today to experience the new way to buy and sell cars quickly and easily.

[CD] By James Batchelor (@JRRBatchelor) CarDealerMag.co.uk | 101

���| CarDealerMag.co.uk

Rate for Risk

15%

PCP

10%

HP <4% paf

5%

Motorloan HLTV

11%

HP 4-6%

17%

Corporate

7%

No Fees APR

6%

HP >6%

29%

CarDealerMag.co.uk | 103

focus on.

BDM Voice

Want the bigger picture with customers? Looks BDM Voice

W: bdm-ltd.co.uk T: 08433 572 222

A

s the economy begins to recover, it’s becoming more and more important for dealerships to manage and develop their sales staff to help them in the valuable daily tasks they carry out on behalf of the business.

That’s why BDM Voice offers both dealers and manufacturers a call-tracking and recording service that allows them to assess their customer relations, ensure that all opportunities are being exploited and improve performance to generate those allimportant leads.

‘Marketing is extremely important when it comes to running a business and dealers spend a lot of money in this area,’ says managing director Mike Surridge. ‘At BDM Voice, our services help them maximise returns from that spend. We help dealers to improve the skills of their sales teams by using a call-recording and tracking service. We also ensure dealers are following up inquiries made by their manufacturers.

‘Recording calls allows BDM Voice to not only analyse how customer inquiries are dealt with, but also to check whether or not potential leads are being followed through to generate more sales.’

Since its launch in 2002, BDM Voice has worked right across the marketplace, from large dealer groups with 180 sites to smaller, independent concerns. Similarly, the company also works very

‘‘

Ensuring staff are coached to the highest standards and motivated to deliver results is crucial to the running of any business

���| CarDealerMag.co.uk

closely with manufacturers in order to monitor when and how their dealerships respond to leads.

This can prevent dealers from missing out on potential sales opportunities.

Insight Call Recording has been hailed as one of the most valuable tools BDM Voice has to offer, allowing dealers to better understand how their businesses handle inbound and outbound calls and whether or not dealership or manufacturer objectives are being met.

BDM Voice will also contact the customer to find out how they felt the telephone call was managed and if they were happy with the service.

‘When looking at inbound calls into a dealership, our research tells us that only around 15 per cent of them turn into showroom appointments, while only one in three appointments results in a sale,’ says Surridge. ‘That means only five per cent of those inbound calls ever end in a sale, but we’re confident that we can drive that figure up by 50 per cent.

‘Insight Call Recording monitors whether or not processes are being followed, and that quality is maintained throughout all telephone calls.

Insight is a hosted call-recording solution and the application dealers need if they’re looking to manage and develop commercial performance.’

To coincide with the Insight service, BDM Voice also runs a Call Tracking system. By using local, national and non-geographic telephone numbers, BDM Voice can supply detailed and immediate call data reports to monitor consumer response.

‘Our Call Tracking facility provides dealers with an instant barometer of consumer response to individual marketing activities by providing dedicated numbers for use on all marketing collateral,’ says Surridge.

‘We can supply geographic numbers for businesses that need local identity or nongeographic numbers for businesses that prefer a national identity. We can then supply data to help dealers determine which media source is driving the most response.’

BDM Voice can provide information on how

long a telephone call took to answer, which part of the country it came from and whether or not it turned into a showroom appointment. What makes the service more convenient is Insight’s ability to interface with any telephone system, so there is no need for any additional equipment, hardware or software.

From a training perspective, dealers can use BDM Voice’s critique and analysis solution Reveal to seek an independent analysis of call-handling, which will then be evaluated to highlight the company’s strengths and weaknesses.

‘The introduction of Reveal and dealershiptraining was fuelled by the recession, when dealers reduced the size of the payroll. Now, as the economy continues to improve, dealers are less likely to take on the fixed cost of more staff,’ says Surridge.

‘What BDM Voice can do is offer a service to help dealers ensure that their staff members are carrying out the valuable everyday roles of the business productively. Our team of analysts will take a selection of calls and evaluate them against the business’s criteria. Dealers will then be presented with a detailed report illustrating the company’s strengths and problems.’

BDM Voice believes that high-quality skills are vital to overall business success and that the rate in which the sales team converts customer inquiries into sales can be greatly increased with effective training and coaching.

‘As the range of products on the new and used car market continues to increase and with price competition on the rise, the difference between one dealership and another is the quality of staff,’ says Surridge. ‘Ensuring they are coached to the highest standards and motivated to deliver results is crucial to the running of any business.’

BDM Voice offers a number of training courses, from handling inbound telephone sales inquiries, face-to-face sales inquiries, essential sales management skills and product-knowledge training to budgeting and cost-control skills.

‘On average, we record more than a million calls per month and the strength we have over

when dealing like it’s your call our competitors is the ability to understand the call process and how it should be handled by the dealership,’ says Surridge. ‘We provide the bigger picture of what’s actually happening during those phone calls along with strategic information and advice to maximise those all-important leads.’

Understanding how your sales team is trained to deal with the vast range of individual customers that make inquiries on a daily basis is one of the most powerful ways to understand the route for business development and ensure that those leads are being

met to drives sales forward. Surridge adds: ‘Whether it be handling customers, booking appointments or arranging service bookings, recording and analysing calls within this live environment is the efficient way to successfully identify both opportunities and problems to maximise performance.’

BDM Voice has a wide range of services that can be tailored to a dealer’s needs, all designed to improve sales performance and customer service.

Get ahead in this area and take advantage of the opportunities available as the economy starts to pick up pace. [CD]

By Sophie Williamson-Stothert (@1Sophie_W)

CarDealerMag.co.uk | 105

DATA FILE.

Thestatistics n

SMMT Sales Data

n

Taking Stock

Best-performing November for nine years Market on target to hit forecast of 2.25m registrations in 2013 NEW car registrations in November grew by seven per cent to 159,581 units, figures published by the SMMT reveal.

Registrations year-to-date climbed by 9.9 per cent to reach 2,111,819 units, recording the month’s best performance since 2004.

The car market is on target to hit SMMT’s forecast of 2.25m registrations for 2013.

SMMT chief executive Mike Hawes said: ‘Motorists have bought more than two million cars so far in 2013 – a tremendous success for the industry on the back of buoyant consumer confidence and innovative new products. With the UK economy looking increasingly positive, we can expect strong underlying demand for new cars to continue into 2014, with volumes set to match or surpass those seen this year.’

Richard Lowe, who is the head of retail and wholesale at Barclays, said: ‘The 21st consecutive monthly increase in new car registrations underlines the continuing strength of the UK market, despite some expectations that November’s sales would slow down as we enter the winter months.

‘Some stabilisation in the coming months would be welcome in order to prevent the market from overheating.

‘Looking forward to 2014, we should expect to see a slower rate of growth in the UK, whilst our key European neighbours start to play catch-up.’

Derek McAllan, KPMG’s head of automotive retail, said: ‘The latest figures show once more that the UK market continues to power onwards and upwards, driven by improving economic conditions and rising house prices, feeding consumer confidence

and private demand. This will likely continue into 2014 and maybe beyond.’

Meanwhile, Sue Robinson, the director of National Franchised Dealers Association (NFDA), said: ‘It is extremely encouraging to see that the new car market continued on its upward trend in November with overall sales up seven per cent.

‘Consumer confidence continued to grow, with November reporting its best performance since 2004. Competitive pricing and strong incentives have driven new car sales in 2013. Dealers have reported increased footfall in showrooms throughout the year and this continued into November.

‘The NFDA expects the market to remain strong into the New Year as consumer confidence continues to grow as the UK economy continues to recover.’

Business as usual for Ford’s fabulous Fiesta FORD’S Fiesta strengthened its dominance on the new car sales market in November, SMMT figures reveal.

The supermini chalked up 8,796 registrations in the month – its nearest rival was its bigger brother the Focus, which only managed 5,298 registrations.

Vauxhall duo Astra and Corsa followed in third and fourth with 5,077 and 4,958 registrations respectively, while the Volkswagen ���| CarDealerMag.co.uk

Golf rounded off the top five with 4,074.

The Vauxhall Insignia broke into the top 10 in November, coming sixth by managing 3,175 registrations, while Nissan’s Qashqai finished in seventh thanks to 3,046 cars being sold.

The Fiat 500 came home in eighth with 3,024, the BMW 3 Series in ninth with 2,999, and with 2,851 units registered the Nissan Juke finished in tenth place.

Meanwhile, in the year-to-date

charts, it’s business as usual – the Fiesta remains supreme with 113,417 total units registered.

The Ford Focus sits in second with 81,791, while the Vauxhall Corsa and Astra lag behind with 77,861 and 62,835 cars registered respectively.

Alternatively-fuelled vehicles accounted for 1.4 per cent of the market over the first 11 months of 2013.

Their volumes have risen by 16.4 per cent to 30,496 units.

SMMT sales data Nov/year to date

5

Top

Most-improved manufacturers in November

Lotus +2,300.00% MG

+257.14%

Subaru +139.76% Suzuki

+58.07%

Mazda

+53.25%

5

Bottom

Worst-performing manufacturers in November Proton -100.00% Perodua -89.66% Infiniti

-63.64%

Smart

-40.51%

Abarth

- 26.96%

SUzuki +58.07%

INFINITI -63.64% Figures supplied by SMMT

November 2013 November 2012 February Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG Mia Mini Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Saab Seat Skoda Smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other imports Total

2013

84 462 57 9,617 100 10,307 599 90 5,499 2,026 4,455 21,027 3,157 5,442 20 1,017 239 4,893 3,806 616 24 32 1,980 7,867 75 0 3,754 426 8,040 3 6,318 747 0 4,720 0 3,335 5,578 329 61 199 2,262 4,812 19,669 13,230 2,515 57 35

159,581

% market share

0.05 0.29 0.04 6.03 0.06 6.46 0.38 0.06 3.45 1.27 2.79 13.18 1.98 3.41 0.01 0.64 0.15 3.07 2.38 0.39 0.02 0.02 1.24 4.93 0.05 0.00 2.35 0.27 5.04 0.00 3.96 0.47 0.00 2.96 0.00 2.09 3.50 0.21 0.04 0.12

1.42 3.02 12.33 8.29 1.58 0.04

0.02

2012

115 321 50 8,214 109 9,704 780 107 5,435 0 2,907 21,152 3,381 5,754 55 1,071 175 5,003 3,782 443 1 22 1,292 6,671 21 0 4,424 384 7,678 29 6,696 643 5 3,387 1 2,705 4,122 553 55 83 1,431 6,346 18,262 13,247 2,460 57 58

149,191

Year to date (YTD)

% market share

0.08 0.22 0.03 5.51 0.07 6.50 0.52 0.07 3.64 0.00 1.95 14.18 2.27 3.86 0.04 0.72 0.12 3.35 2.54 0.30 0.00 0.01 0.87 4.47 0.01 0.00 2.97 0.26 5.15 0.02 4.49 0.43 0.00 2.27 0.00 1.81 2.76 0.37 0.04 0.06

0.96 4.25 12.24 8.88 1.65 0.04

0.04

2013 % Change

-26.96 43.93 14.00 17.08 -8.26 6.21 -23.21 -15.89 1.18 0.00 53.25 -0.59 -6.63 -5.42 -63.64 -5.04 36.57 -2.20 0.63 39.05 2,300.00 45.45 53.25 17.93 257.14 0.00 -15.14 10.94 4.71 -89.66 -5.65 16.17 -100.00 39.36 -100.00 23.29 35.32 -40.51 10.91 139.76 58.07 -24.17 7.70 -0.13 2.24 0.00 -39.66

1,298 5,374 848 134,598 1,156 124,113 11,281 2,466 74,483 15,099 56,138 291,369 52,292 72,161 365 15,217 2,039 68,303 51,687 8,385 193 303 29,786 102,837 384 5 47,922 8,281 110,927 205 99,196 7,483 20 40,801 3 41,706 60,795 5,010 628 2,061 30,818 83,606 238,142 180,360 30,138 735 802

6.96

2,111,819

%market share

0.06 0.25 0.04 6.37 0.05 5.88 0.53 0.12 3.53 0.71 2.66 13.80 2.48 3.42 0.02 0.72 0.10 3.23 2.45 0.40 0.01 0.01 1.41 4.87 0.02 0.00 2.27 0.39 5.25 0.01 4.70 0.35 0.00 1.93 0.00 1.97 2.88 0.24 0.03 0.10

1.46 3.96 11.28 8.54 1.43 0.03

0.04

2012

1,172 6,963 868 118,836 1,184 117,355 13,040 3,198 69,721 0 46,647 266,261 50,877 68,734 488 13,055 2,186 62,739 46,094 8,014 123 295 25,213 86,594 689 0 46,825 5,814 99,394 394 94,729 7,237 207 37,027 232 35,999 50,403 5,102 810 1,931 23,329 80,414 215,983 173,447 29,760 876 793

%market share

0.06 0.36 0.05 6.19 0.06 6.11 0.68 0.17 3.63 0.00 2.43 13.86 2.65 3.58 0.03 0.68 0.11 3.27 2.40 0.42 0.01 0.02 1.31 4.51 0.04 0.00 2.44 0.30 5.17 0.02 4.93 0.38 0.01 1.93 0.01 1.87 2.62 0.27 0.04 0.10

1.21 4.19 11.24 9.03 1.55 0.05

0.04

1,921,052

% Change

10.75 -22.82 -2.30 13.26 -2.36 5.76 -13.49 -22.89 6.83 0.00 20.35 9.43 2.78 4.99 -25.20 16.56 -6.72 8.87 12.13 4.63 56.91 2.71 18.14 18.76 -44.27 0.00 2.34 42.43 11.60 -47.97 4.72 3.40 -90.34 10.19 -98.71 15.85 20.62 -1.80 -22.47 6.73 32.10 3.97 10.26 3.99 1.27 -16.10 1.13 9.93

SMMT HAS REMOVED DAIHATSU AS it registered no new vehicles in 2012. DATA FOR mia was incorporated as of october 2013.

CarDealerMag.co.uk | 107

TAKING STOCK. Once again, Motors.co.uk and BCA give their thoughts on what dealers should be paying attention to in the months ahead. Here’s what they have to say

2013 – the year There’s only one of the mobile conclusion: The revolution market is strong says Dermot Kelleher, Motors.co.uk’s head of business intelligence

D

uring 2013, the number of consumers searching Motors.co.uk for their next car on mobile devices has nearly doubled, rising from 22 per cent at the beginning of the year to 43 per cent in October 2013. In fact, there is a very realistic chance that this will rise to around half of all traffic by the end of this year.

There’s absolutely no doubt that dealers have begun to embrace this form of internet browsing when it comes to showcasing and selling their cars. Indeed, Motors. co.uk has now launched more than 100 responsive websites since introducing the Flex platform for dealers at the start of 2013.

These new responsive sites have seen demonstrable success, with improvements to the amount of time spent on site, the number of page views per visit and a fall in the bounce rate.

���| CarDealerMag.co.uk

On average, when compared with the previous platforms, Flex customers have seen a 10 per cent increase in the number of unique visitors to their sites and a 24 per cent increase in the number of pages being viewed per visit.

Furthermore, when you look a bit closer at these figures, mobile devices account for more than 36 per cent of total visits, with traffic to the Flex sites from tablet devices increasing by 21 per cent and from mobile phones increasing by 44 per cent.

It is clear that 2013 has seen the rise of the more technology-savvy consumer and this trend is set to continue into 2014.

It is vital that dealers take advantage of this trend to maintain healthy levels of inquiries and, in turn, drive overall sales. As technology continues to advance, dealers must ensure they continue to keep pace with multi-channel retail trends to ensure potential buyers have access to their vehicles, no matter what platform they use.

believes Simon Henstock, BCA’s UK network operations director

W

e have seen that average values continue to rise in the used car market.

Our latest Pulse report shows that October achieved the second-highest monthly average value on record. The year-on-year figures also showed a substantial rise over 2012, underlining the ongoing value evolution in the used car market.

The October average figure of £7,174 is the highest figure this year and the second highest since Pulse began reporting in 2005.

The increase is largely the result of the on-going shortage of good, retail-quality stock that is creating a very competitive trading environment, and BCA’s remarketing centres nationwide once again reported strong demand from professional buyers.

October values climbed by £167 (2.4 per cent) compared to September, and were up by £693 (10.6 per cent) year-on-year. Average mileage continues to fall – down by around 2,200 miles compared to last year – while average age was marginally lower at 61 months.

Average performance against CAP Clean is 0.3 per cent up, year-onyear. In particular, dealer-entered P/X stock has been performing exceptionally strongly.

Average part-exchange values reached a record level for the second month running and the fifth time this year, climbing by £80 (2.1 per cent) compared to September to £3,840. Year-on-year, values were ahead by £689 (21.8 per cent) compared to October 2012, with average age and mileage both down slightly over the year. CAP performance fell to 94.58 per cent in October, down by nearly three points compared to September, but ahead year-on-year.

It shows that while many buyers continue to focus on smaller and more economical cars, demand remains right across the board up to late-plate prestige and luxury marques. Some shrewd dealers are buying 4x4s now in anticipation of demand rising sharply in the coming weeks. [CD]

Buyers’ guide

Qashqai

..in association with

’07-current

Warrantywise helps you choose the best stock for your forecourt.

This month the Nissan Qashqai is the model in the spotlight

What is it?

There’s much debate as to whether the Nissan Qashqai was the first C-segment crossover, but there’s no doubt in it being the most successful. Launched in 2006, it marked a step-change in Nissan’s model line-up and quickly became Britain’s best-selling crossover/SUV – and still continues to be so today.

What CAN GO WRONG? Door locks have a tendency to fail, so if the key is needed to unlock the car, factor this in to the price you pay or walk away. Door motors cost around £300 to fix.

When you start the car up, look for black or blue smoke once the car has warmed up. If the car feels a bit sluggish then these are tell-tale signs that the turbo is failing or has blown. It’s a good idea to check the exhaust gas recirculation valve – if it’s faulty it could cost £1,000 to fix. Also, once you’ve started the car up,

look for the diesel particulate filter warning light. If it doesn’t go out and the car is reluctant to drive at full power, the filter could need replacing – it costs around £300. Interested in a car built between 4th January 2008 and 28th October 2008? Check it has been recalled to fix a faulty connector in the filter. If it wasn’t replaced under the recall, fuel may leak. ECUs can become faulty too and only really need a software fix – a sensitive throttle is a sign of this. Wayward handling and rattles could equal worn shock absorbers. There was also a recall concerning the front suspension lower ball joints, so make sure this has been fixed.

Warrantywise’s top facts Pricing (subject to change depending on engine size/ age/mileage): Trade price - £93 – 6 months – Platinum cover Top claims: n Engine n Brake callipers n Alternator

£3,403 £364.01 £374.30

Top problems: n DPF filters

What’s the perfect QASHQAI? Most versions of the Qashqai are desirable among customers, but perhaps the most appealing is the Acenta, which came with tasty equipment such as air conditioning, alloy wheels, a CD player, front and rear electric windows, automatic lights and wipers, rear parking sensors, 17-inch alloys, foglamps and cruise control. [CD]

KNOWN PROBLEMS

There aren’t too many problems with the Qashqai, but check all recalls have been carried out

THE RIGHT BUY

Acenta models. They’re a step up from base Visia cars.

They’re loaded with standard equipment and are much desired by customers

Cover your customers from unexpected repair bills & maximise

your profits.

0800 001 4550

www.warrantywise.co.uk CarDealerMag.co.uk | 109

data file.

NOVEMBERSEARCHES

Volkswagen Transporter

Percentage of total number of searches on TheVanWebsite.co.uk for the month

5.49%

Citroen Berlingo

3.40% Peugeot Expert

3.09%

Mercedes-Benz Sprinter

4.77% Ford Transit

6.33%

Volkswagen Caddy

4.03%

Market for LCVs in 2014 will remain strong Shortage of stock and other factors could see prices continue to be robust next year

V

alues for the average used LCV in the wholesale sector could continue to rise significantly in the months ahead, despite an increase in age and mileage.

BCA has reported that average values have consistently continued to rise during the past 12 months, and with increasing demand expected as the economy starts to recover, 2014 could be

another year of record performance for used vans.

According to BCA’s new long-term trend data, average van prices are up 42.9 per cent compared to five years ago, despite being nearly a year older and having covered 9,000 more miles.

BCA’s general manager of commercial vehicles, Duncan Ward, said: ‘Demand has been right across the board, from older higher-mileage vans

through to younger ex-fleet and lease vehicles, while the few late-plate light commercials on offer can make exceptional values. The end result has been record-breaking average values for fleet, lease and dealer part-exchange vehicles.

‘However, while this is good news for sellers, supply issues could worsen, meaning buyers could suffer in 2014. Due to the fall in new van sales between 2008 and 2009, the volume of used vans reaching the wholesale market in 2014 could drop, meaning the used LCV sector may be short of stock for some time.

‘Our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of higher selling prices in 2014, effectively meaning we are going to see more of what is best described as a “sellers’ market.”’

DEALFINDER. Latest deals on COMMERCIALS VOLKSWAGEN’S Caddy is Caddy Highline has VW currently being offered at air conditioning and CADDY £15,660. The TDI Highline Bluetooth connectivity, a Van has a 2.0-litre maximum loading weight engine, which is mated of 654kg and also comes to a six-speed manual with 16-inch alloy wheels gearbox. Meanwhile, as standard as well as the Caddy emits 158g/ body-coded bumpers km of CO2 emissions and has a and mirrors. satisfactory average combined fuel Type bit.ly/CaddyJanDeal into a consumption of 47.1mpg. web browser for more details.

CITROEN’S Dispatch The Dispatch has CITROEN workhorse is on the a maximum loading DISPATCH weight of 1,200kg and market for a competitive £12,870. The 2.0-litre HDI comes equipped with van is a spacious and 16-inch steel wheels, reliable vehicle, as well climate control, MP3 and as a robust asset to any Bluetooth connectivity small or large business, plus three years and to guarantee peace of mind it Trafficmaster Smartnav as standard. comes with a standard 10,000-mile Type bit.ly/DispJanDeal into a manufacturer’s warranty. web browser for more details.

Old vans or

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..in association with Ford Transit Connect

3.26%

Lawton

Vauxhall Vivaro

4.33%

COOL CONVERSIONS

UK vans on the wane Ford Ranger Fiat Ducato

2.99%

3.72%

Ford director delighted as new Transit Custom clocks up 10,000 UK sales FORD’S all-new Transit Custom has reached 10,000 sales in the UK in the first 12 months of its launch.

More than 5,500 Transit Custom vans have been sold to a number of fleets in the UK and, according to Ford, the Transit Custom has also become a popular choice for ‘artisan businesses’ across the country, accounting for nearly 50 per cent of total sales.

The new Transit Custom was designed and engineered at the Ford Dunton Technical Centre in Essex and is powered by a 2.2-litre

Duratorq diesel engine built at the Ford Dagenham engine plant.

Andy Barratt, Ford of Britain sales director, said: ‘I couldn’t be happier that we’ve reached our target to sell 10,000 Transit Customs a whole month earlier than planned.

‘Ford is in a strong position, offering customers more choice by selling previous-generation Transit alongside new Transit Custom, helping to maintain our firm grip on the UK’s mediumvan segment.’

THE VW Transporter is currently 0-60mph time of 15.3 seconds VW on offer with an attractive lease but emits 198g/km of CO2.

TransporteR deal exclusive to business users.

It comes with 16-inch steel For a deposit of £656.79, the wheels and body co-ordinated 2.0-litre TDI Trendline Van is bumpers, so it offers drivers available for £218.93 per month a bit of spark, and it has a across a 48-month period. This maximum load capacity of deal is subject to an average 918kg, so all the daily tools can 10,000-mile agreement. easily fit into the back.

The 2.0-litre is diesel has a five-speed Type bit.ly/TranJanDeal into a web gearbox and produces 102bhp. It has a browser for more details.

W

e’re told UK automotive production is in rude health. Heavyweight members of the UK government can often be found posing by the latest new model produced in this country.

The Mini factory in Oxford is full to capacity, with production of the third-generation hatchback set to commence. Honda is heavily reliant on its Swindon-built models, and Nissan in Sunderland is producing huge volumes of popular cars. Let’s not forget Jaguar Land Rover either – its Halewood plant is operating around the clock. Close by in Ellesmere Port, Vauxhall has confirmed it is the lead European manufacturing plant for the next-generation Astra.

However, the often-forgotten blemishes on UK plc’s automotive production report card are commercial vehicles. Rolling CV output continues to fall, with October 2013 figures revealing a near34 per cent collapse in production and just 7,875 units rolling off the production line over the course of the month. It is highly likely that 2013 production figures will drop below the 80,000 mark – something which occurred in the deepest, darkest point of the credit crunch. It cannot just be blamed on the ongoing slack demand on the continent either. While it is true that export demand during 2013 has fallen by more than 25 per cent, UK demand is weak, down by 11.6 per cent on 2012.

So what is happening? It would seem that the UK is suffering from the vagaries of the industry. It just so happens that the prospering production facilities are owned by brands that don’t have as compelling a range of CVs as their competitors. And the CV brands that are popular either don’t build them in the UK or, in the case of Ford, have switched production overseas.

This all leaves UK plc with a prospering automotive industry with a dark secret.

‘Rolling CV output continues to fall, ’

Who is Richard Lawton?

Richard is marketing manager for Really Good Domains and on the team at TheVanWebsite. co.uk and ContractHireAndLeasing.com.

Contact: richardl@reallygooddomains.com

Advertise your new, used and lease stock on the new website.

Sold vans?

Call today on 0161 482 7650 and quote ‘SP101’ for a 50% discount on your 3-month trial.

CarDealerMag.co.uk | 111

���| CarDealerMag.co.uk

auctions.

Electric market continues to move slowly bit.ly/slowEVs

Level of car ownership increases in the north... ...but declines in the south-east, says latest BCA Used Car Report

parts of the country where there is a more comprehensive public transport infrastructure, car ownership has dropped.

The report highlighted a four percentage point increase in the number of motorists in the south-east who no longer own a car – rising from 26 per cent in 2012 to 30 per cent in 2013.

The findings from the report do, however, seem to suggest that the UK may be turning a corner in consumer confidence, as lower inflation, a slowdown in fuel price rises, improving employment prospects and a more stable economy seem to be helping to restore car buyers’ confidence. ‘There has been an increase in those planning to buy a car, with 14 per cent saying they will certainly or quite likely buy a car in the next year, compared to 11 per cent in 2012,’ said Naylor.

Another McLaren goes under the hammer BCA has sold another McLaren MP4-12C supercar in a special Top Car sale.

The 2012 right-hand-drive model, finished in Fire Black ‘elite’ paintwork and with just 2,623 miles on the clock, sold for £126,000. It was offered with an up-to-date service history from McLaren London.

The car was equipped with a topspec black leather interior with orange stitching to the dashboard and seats, as well as brandedcowboy car mats,ads carbon-fibre Car dealer 28/8/13

auction stations

Are we still going green?

I

C

ar ownership is increasing in the north but declining in the southeast, according to BCA’s latest Used Car Market Report.

‘Our latest report, based on independent research of 4,000 motorists, car ownership has remained static, with 72 per cent of families owning at least one car,’ said the report’s editor, Tim Naylor. ‘There has been a decline, however, from 2010, when 77 per cent of households owned at least one car.’

According to the report, there has been a one per cent increase in two-car families in the past year across the UK and the same for three-or-more-car families, with a one per cent drop in one-car families.

Two-car ownership in the north has increased to 29 per cent from 16 per cent in 2012, while in the south-west the number of families with three cars or more has risen to 10 per cent from three per cent. In contrast, in

Henstock

elements, Superlight alloy wheels with orange brake callipers and a sports exhaust.

BCA’s Top Car sales exclusively feature prestige and luxury sports or executive cars, from Audi and BMW to Ferrari and Lamborghini, all of which come with warranted mileage, full service history and accompanying documentation.

BCA sold its first McLaren MP4-12C in October £127,000.

15:49 for Page 1

No cowboys.

Just Just trade trade professionals. professionals.

n the wake of the recession and several periods of high fuel costs, most car buyers today seem more mindful of the cost of motoring, and this is impacting on the decisions they are making when choosing a used car. The general trend is towards smaller, more economic and fuel-efficient cars, but are motorists really getting ‘greener’?

According to the most recent BCA Used Car Market Report, motorists are keen to curtail their frontline motoring costs – with ‘better fuel consumption’ (29 per cent), ‘lower road tax’ (22 per cent) and negotiating the ‘best purchase price’ (15 per cent) being the key factors that car buyers are considering when buying their next car. The possibility of buying a ‘smaller car’, with ‘lower maintenance costs’, is also a significant factor for some prospective car buyers.

However, while the focus for the OEMs, government departments, transport planners and fleet managers may be to minimise emissions, the reality for most used car buyers is a lot more pragmatic – it often comes down to ‘what’s the best car I can buy with the budget I have available?’

Alternative fuels remain very much on the wider motoring agenda, but how are these vehicles perceived in the harsh glare of the remarketing sector? Hybrids are well established and there is a steady demand for younger examples, although older higher-mileage models need to be sensibly valued to attract the buyers.

BCA Analytics data shows that remarketing parameters for hybrids are similar to diesel in terms of age and mileage, but price performance is prone to more erratic peaks and troughs than both petrol and diesel models. This is typical of low-volume sectors, where model mix has an effect.

LPGs are few and far between and restricted largely to the commercial vehicle sector, and EVs are also very scarce. The key issue for all alternative ‘greener’ fuels is acceptability with the general motoring public, because they will drive the demand in the used market.

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.

Strictly Trade only (VAT No. and verified bank details reqd).

Purpose built 12 acre auction complex .

Enclosed and heated auction halls.

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Call now for account applications.

Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com

CarDealerMag.co.uk | 113

TRADER TALK.

..in association with AutoTrader

Message is clear: think long term Analyse historical data over a period of three months and use professional judgement

W

hile some dealers will be reducing stock during December to minimise inventory at yearend, others will be taking the opportunity to stock up for an expected boost in demand for used cars come January and beyond.

Stocking the right cars at the right time is vital for any used car operation. More obvious seasonal trends can be easy to predict, like preparing for an upsurge in convertible demand during spring, or turning to 4x4s to meet the autumn rush.

But what of other vehicle segments that may not lend themselves to such straightforward analysis? How can you predict the strength of potential demand for these in a month’s time following the Christmas break?

One weapon in the savvy dealer’s arsenal is to carefully analyse what has gone on before.

A strategy based on the analysis of historical data can reap rewards when preparing for the year ahead.

Auto Trader customers have access to a breadth of such data. The company undertakes monthly surveys of vehicle searches and is a strong barometer of used car demand. As the UK’s most-frequently-visited online classifieds website, with 11.5m unique visitors undertaking

‘One weapon for dealers is to carefully analyse what has gone on before’ on average 100 million searches each month and viewing more than 370,000 used cars, changes in demand can be easily identified and used as the basis for stock decisions.

Of course, any analysis cannot consider a single month in isolation. Trends don’t necessarily confine themselves to a period of 30odd days. For example, things generally quieten down in the weeks leading up to the festive season. But search trends in December alone can be a misleading indicator of what will happen in the months that follow.

In December 2012, demand for fuel-efficient city cars and superminis fell by 9.8 per cent and 4.8 per cent respectively but increased significantly in January, up 12.2 per cent and 10.5 per cent. Meanwhile, demand for luxury vehicles and luxury sports cars rose by 6.6 per cent and 1.4 per cent in December – only to fall by 12.5 per cent and 13.7 per cent the following month, when overall searches increased by 19 per cent from 85.6m to 102m.

Although overall searches during February dipped by nine per cent to 92.8m, the growth in demand for city cars and superminis continued, up by eight per cent and 2.3 per cent respectively, while demand for luxury cars declined again, down by 2.7 per cent.

In January this year there were 17m searches for city cars and superminis on the Auto Trader website alone and 19.5m in March, so there’s a good chance that these vehicles will also be in demand in the first few months of 2014.

So the message is clear: think long term.

When planning stock, analyse historical data over a period of three months and use professional judgement to factor in any additional anomalies, such as the plate change or seasonal factors. Then measure your success.

Auto Trader’s monthly Pulse report shows how you’re performing relative to your immediate competitors, while regular dealer seminars can help the best in the business hone that competitive edge.

Who is Nick King?

Nick is market research director of Auto Trader, the UK’s number one digital marketplace for new and used cars. Visit autotrader.co.uk

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Including Profit Indicator and Market Tracker, you can check what’s profitable before you buy and stay competitively priced before you sell. So, why not give the Ro. Bots. A. Try. To find out more about our Intelligence Packages, just call us on 08433 088 875 or visit www.dealerportal.co.uk ���| CarDealerMag.co.uk

ON TRACK.

..in association with TRACKER

This winter car theft is snow joke Cold weather brings rise in a new type of car theft – ‘frost jackings’

W

inter has arrived and while we welcome the usual festivities that come with this time of year, canny car thieves who have kept a close eye on the weather will be rubbing their hands with glee – for ’tis the season of theft.

We like to think that criminal activities slow down during the season of goodwill but in reality thieves see the darker nights, with everyone staying in the warm, as the perfect cover for their activities.

In fact, we see a 20 per cent increase in thefts and recoveries during the months of November to February. Rather than relaxing their defences, motorists should be extra security-conscious during the winter months.

Another issue we see around this time of year is a method of theft called ‘frost jacking’.

This is theft in its most basic form but it’s highly effective. Most people still leave their car unlocked, unattended and with the engine running on a frosty morning to clear the windows, but this is an absolute gift to a car criminal.

Although some of these thefts are just opportunists, as with all car crime organised gangs are now getting in on the act. They will target specific makes and models while they are parked overnight and then keep watch on them when the weather is cold, waiting for the owner to leave it unattended.

Ex-Manchester United player Paul Scholes was the victim of exactly this type of theft earlier this

‘Ex-Manchester United player Paul Scholes was the victim of exactly this type of theft earlier this year.’ year when his brand-new Chevrolet Captiva was stolen from his driveway in Manchester while he was defrosting his windscreen, showing that anyone can fall victim to this scheme.

We’ve already talked about the in-built security seen on most modern cars, which makes it difficult to steal them without using keys – and this is why every year thieves look to exploit any cold snap by targeting owners who take the risk on frosty mornings.

A lot of drivers don’t even realise the police may prosecute them if their car is stolen while unattended with the engine running. And they may also find their insurer refusing to pay out for the theft, leaving them

seriously out of pocket. At a time when car sales usually slow down, offering your customers peace of mind during a time when they are vulnerable can be invaluable.

By showing them that it only takes a few simple steps to install a vital tracking system that offers the best possible level of security, you can be offering to save them considerable heartache, not to mention expense, if the worst happens under the cover of darkness.

Who is David Wilson?

David is sales and service director for TRACKER. Read his column here every month.

C A L L O U R D E D I C AT E D T R A C K E R D E A L E R S U P P O RT T E A M TO DAY

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CarDealerMag.co.uk | 115 18/3/13 12:55:27

MOTOR MOUTH.

..in association with Motors.co.uk

Keeping pace with technology It’ll be critical for dealers to keep up to date with the latest technology in 2014

G

one are the days of the classified ads in the local paper being the best way of advertising your stock. In this age of technology-savvy consumers, dealers must make sure they are utilising every marketing channel available to them to ensure they can reach their target audience.

Over the past 12 months, we have seen a rapid rise in people using mobile devices as a means to search the web and find their next car, with statistics from Google confirming that 35% of all automotive searches now take place on mobile and tablet devices. This has led to savvy dealers investing in responsive websites to cater for this desire to view used cars while on the go, and there’s absolutely no doubt this trend will continue into next year.

The move by consumers towards mobile technology has seen dealers evolve the way in which they market their stock to potential car buyers. We are now seeing dealers utilising tools such as social media platforms and mobile apps to showcase their vehicles or special offers.

This change in the way that dealers communicate with customers has enabled sales teams to not only reach a wider audience but also offer out-of-hours inquiry services. This activity is sure to become more commonplace across the industry next year.

Video and photography will become even more important marketing tools next year, especially in terms of enticing car buyers from further afield into dealerships. Providing consumers with

‘Video and photography will become even more important marketing tools next year.’ detailed insights into a particular vehicle and its accessories via photography or video has been proven to double the click-through rate of vehicles listed online.

In fact, recent research by Motors.co.uk shows that more than two-thirds of consumers wouldn’t contact a dealer without seeing a picture of the car first. With the growth in the number of mobile devices and the speed benefits of the 4G network, it will become even easier to view and download photos while on the move. Therefore, dealers wishing to make their stock stand out from competitors on the web will need to make sure they are using the right imagery and video to give potential buyers a true look, feel and sound of the car for sale.

Next year will see even more updates to the Google business model: Google Business Photos links with Google+, Google Maps and Google+

Local to let web users browse inside showrooms and vehicles from any location on a mobile or desktop device.

When integrated with Google+, Google Business Photos will also appear in online search results, which will help to increase a dealership’s internet footprint and therefore make stock more visible online to searching consumers.

Ultimately, however, the business of selling vehicles next year will come back to the people involved. It is vital that any digital marketing strategy is underpinned by an investment in the sales team to ensure that they are knowledgeable and up to speed with the latest market innovations.

Who is Andy Coulthurst?

Andy is the managing director of Motors.co.uk. Read his thoughts here every month.

NEW LOGO, NEW COLOUR, NEW WEBSITE, NEW MOTORS Over 250,000 cars are now advertised on motors.co.uk and we are growing daily ahead of the launch of our multi-million pound advertising campaign.

Find out more at new@motors.co.uk or call 0845 265 6000.

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1

06/12/2013 16:25:40

CRYSTAL CLEAR.

..in association with Glassâ&#x20AC;&#x2122;s

For how much longer?

Are current levels of private new car sales sustainable?

S

ince September 2010, sales of new cars have increased steadily. In particular, sales to private buyers have grown almost every month against the equivalent period in the previous year, with September 2013 only slightly behind the same month in 2009 under scrappage, which was itself a record.

It is the surge in popularity of what may be collectively termed as Point-of-Sale (PoS) finance packages, which encompasses more traditional Hire Purchase (HP) as well as PCPs (Personal Contract Plans) and PCH (Personal Contract Hire) agreements, which has driven this trend.

Before the recession, PoS finance traditionally accounted for around 40-50 per cent of private sales by volume.

From 2011, this figure began to rise dramatically, from 59 per cent to a projected 74 per cent for 2013. As a consequence, growth in sales from PoS finance accounts for by far the majority of new car sales growth since 2010.

Ultimately, private buyers buy new cars when they both need and can afford to, so an ageing parc coupled with great deals has made for a resurgence in new car sales among franchised dealers and their respective manufacturers.

A number of positive factors have come together to influence affordability amongst private buyers: Low finance cost. Not only has cheap finance been made available through captives, but a collapse in savings rates since the government

â&#x20AC;&#x2DC;The relative affordability of cars is likely to diminish for private buyers over the coming years.â&#x20AC;&#x2122; launched the Funding for Lending scheme has also promoted consumer spending.

High residuals. With a shortage of used stock pushing prices ever higher, potential purchasers are able to cash in on a good partexchange valuation. Surprisingly for some, the most frequently cited reason for private sales growth â&#x20AC;&#x201C; PPI settlement payments â&#x20AC;&#x201C; may have had only a limited impact. Most vehicles sold to private buyers still come with a trade-in, which has been sufficient to fund the initial payment on a typical PCP deal.

So what does the future hold?

Finance costs are likely to increase. Positive economic data coupled with falling unemployment suggests that the Bank of England will raise rates sooner rather than later.

Although sterling may strengthen against the euro, and so permit larger manufacturer discounts, these would only offset each other, and

with demand now beginning to turn the corner in the rest of Europe, the manufacturers may not need to either.

Residuals will decline in real terms. While we are not exactly expecting a crash â&#x20AC;&#x201C; more of a soft landing â&#x20AC;&#x201C; it is unlikely that such levels will be maintained, and so the percentage of a new carâ&#x20AC;&#x2122;s value covered by a trade-in will decline.

As a consequence, the relative affordability of cars is likely to diminish for private buyers over the coming years and so will sales volumes in that segment. However, with rising employment, fleet and business sales will keep advancing and so it is likely that overall new car sales will hold steady for a while, even if fewer are sold using PoS finance. This is good news for the industry.

Wilkins

Motor Company Who is Richard Parkin?

Richard is director of valuations & analysis at Glassâ&#x20AC;&#x2122;s. Read his thoughts here every month.

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CarDealerMag.co.uk | 117

food for thought.

..in association with THE IMI

Managing success is vital Competency framework now provides independent common standard

R

esearch by the IMI with more than 400 employers and industry stakeholders has revealed that more than 80 per cent of motor retail managers do not possess any form of management or higher-level qualification, such as a degree or diploma.

Although this may appear stark to those outside our industry, it is perhaps not surprising to many of us within the sector when you consider the traditional progression route that many have taken from the shop floor into management and beyond.

Our research found that managers often lack support in gaining the skills needed to succeed, with under 18 per cent of managers having gained a Level 4 qualification or assessed training programme, compared to an average of 45 per cent in all other sectors.

So with the sector facing some very real challenges in the next decade, such as even greater competition, more demanding customers, changes in customer interaction approaches, increasingly complex product ranges and more sophisticated vehicle technology, there’s no doubt that the development of strategic and operational management skills is vital.

To meet this challenge, the IMI has introduced the Automotive Management & Leadership Competency Framework. The competency framework provides an independent common standard to benchmark management and leadership training programmes and qualifications for in-house and external provision.

‘It is vital for the success of businesses that we address the need to improve management and leadership.’

The framework has been created in consultation with industry, training providers and management experts to ensure that it provides a robust solution that meets the needs of businesses and individuals. It is designed as a benchmark to provide consistency in the measurement and training of managers and to help reduce duplication in development, as well as highlighting development needs, benefiting both individuals and the businesses for which they work.

Over the course of our work in this area, we have also developed a number of solutions that can provide tools for your automotive business, be this from the first stage of recruitment and selection process, through to appraisal and targeted development, leading to recognised status with accreditation.

The solutions have been engineered to easily fit into a busy working environment, minimising

disruption and helping to focus training and development budgets to enable high-impact, value-for-money decisions to be put in place. It’s no secret that our industry is under-qualified, which means we do not always have people in influential positions with the level of qualifications needed to lift an entire business.

It is vital for the future success of both individual businesses and the sector as a whole that we directly address the need to improve management and leadership standards by developing a comprehensive and coherent competency standard for the first time.

I am pleased to say that the IMI is close to achieving this goal.

Who is Steve Scofield?

Steve is head of accreditation at the IMI. Find out more about the IMI at www.theimi.org.uk

Are you in the dark about recruitment & selection?

Visit www.theimi.org.uk/ama-trait

���| CarDealerMag.co.uk

caught in the net.

..in association with Spidersnet

Get tweeting and see the benefit

Don’t just sign up – this tool can be used to powerful effect with your audience

S

ocial networks are vital to businesses in the modern world. If you choose to overlook these powerful tools then you will suffer as your competitors keep up with the times. Twitter is one such tool that many car dealerships are getting on board with. And you should too!

Sure, it’s easy to scoff and turn a blind eye to Twitter, but if you roll up your sleeves and get stuck in, your business can really see the benefit.

Simply signing up is not enough. You must ensure that you’re using the tool to its best effect while constantly monitoring your company’s page. ‘But how can Twitter benefit my business?’ I hear you ask. Let me explain . . .

Show off your stock!

By creating a profile on Twitter and building a following, you are putting your business in front of a new audience.

This means that if you have some fantastic new stock, or you’re running a great deal for your customers, you’re allowing more people to see what you’re offering, which is a fantastic way to generate new leads. This is the main benefit of Twitter – being able to advertise your stock to a captive audience.

However, it is reliant on you having already built that audience.

Building an audience In order to be able to show your stock to your

‘it’s easy to turn a blind eye to Twitter, but if you get stuck in, your business can really see the benefit.’ followers, you must firstly grow your audience.

You can do this by tweeting about a number of topics. It’s best to focus on people within your local area, so why not run a simple follow-andretweet competition, offering something in your local area as a prize? It doesn’t have to be anything too fancy, maybe a meal for two at a restaurant in town or a day at the local spa.

What this will do is encourage local people to follow your brand on Twitter, allowing you to grow your following and start to build relationships with people from within your local community.

Interacting with customers As well as being able to flaunt the cars and services that you have to offer, Twitter also allows you to interact with current and potential customers. If you’ve set up a Twitter account for your business, then it’s important that you are monitoring the page regularly. If you get asked a question by a customer and respond in a timely

and helpful manner, then you’re showing the world that your business offers great customer service.

You can also get a bit creative and have some fun with your Twitter profile.

Joining in with discussions can be enjoyable and is a good way to strengthen your brand and interact further with potential customers. You can also have fun by tweeting links to humorous and interesting articles that would be of value to your audience, and you can raise a smile by posting funny videos or photos. You’re basically trying to convince users to come back to your profile regularly by offering them things that they’re after.

Take a look at how your competitors are using Twitter and see what they’re up to – you might just get some good ideas.

Who is Laura Coleby?

Laura is divisional director at Spidersnet. For more information, log on to spidersnet.co.uk

SPIDERSNET ADVENT FIND OUT MORE HERE:

@SPIDERSNETUK

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CarDealerMag.co.uk | 119

FRONT RUNNER.

..in association with Frontline Solutions

Make sure you’ve got all FCA requirements covered The clock is ticking over the shake-up in consumer credit regulation

W

ith FCA regulation of consumer credit looming next year, I wanted to continue the focus on compliance in this month’s column. In particular, I wanted to provide some steer and guidance for motor dealers regarding an area of much debate and confusion – which categories do I need on my consumer credit licence (CCL)?

Those of you who have applied for the ‘interim permissions’ required by the FCA will know that part of the application process involved you being asked to contact the Office of Fair Trading directly if you needed to amend or add categories to your CCL. Most motor dealers would have had Category C (Credit Brokerage) on their licence, but most wouldn’t have had other required categories such as D and E (Debt Adjusting and Debt Counselling). So hopefully you will have applied to have these additional categories added

‘I am pleased to announce that there has finally been clarification about Category G.’ ���| CarDealerMag.co.uk

to your CCL. If you haven’t, then you will need to do this, as the FCA expects you to have your categories sorted out before you apply for interim permission.

Many dealers have told me that they are concerned about another category that is being discussed at the moment – Category G. This relates to Debt Administration. For motor dealers, the concern was that this category covers ‘operating an electronic system in relation to lending’. Would this include any point-of-sale electronic systems used for proposing finance deals? If these systems were in scope, then it would mean every motor dealer using these systems would need to obtain Category G on their licence. Obviously, this would cause a large degree of additional work (and also additional fees) to vary the CCL again.

There were then several conflicting opinions from lenders and brokers, which caused some degree of confusion within the industry. Some lenders even maintained that the dealer was fine as long as they only used that lender’s own system! However, I am pleased to announce that there has finally been clarification from the FCA on this subject. As I write this (Nov 27), I can announce that the FCA has today confirmed that

Category G will NOT apply to the relationships between motor dealers and their lenders.

The FCA has stated that Category G is only intended to apply to ‘peer-to-peer’ lending.

This welcome clarification ensures that motor dealers will not need to apply for this category on their consumer credit licence.

Stephen Sklaroff, director general of the Finance & Leasing Association, said: ‘As agreed with the government, firms who use electronic platforms that do not operate in the peer-topeer lending market will not require Category G permissions.’

Frontline Solutions has always been of the opinion that the motor dealer, and electronic finance proposal systems in particular, were not intended to come under the scope of Category G. After we analysed the guidance and information, we believed our systems weren’t something the new regulations were designed to catch. We welcome the clarification from the FCA – as I’m sure do many motor dealers!

Who is Martin Hill?

Martin is national sales manager at Frontline Solutions. Contact him on 07739 751748 or via martin.hill@ frontline-solutions.co.uk

MARKET INSIGHT.

..in association with ASE-global.com

Cambria’s share price nearly trebles in past 12 months ASE: Result is a ‘superb performance’ but in line with rest of sector as new car market recovers

C

ontinuing our series of articles where ASE reviews the financial and share performance of the quoted groups, we look at a relative newcomer to the sector: Cambria Automobiles plc.

Cambria was established in 2006 with a plan to create a top ten UK dealership group. Somewhat unusually for the UK motor trade, the company received significant start-up backing from the venture capital firm Promethean.

The strategy of the business was to buy underperforming businesses paying little or no goodwill. Management believed that the group focus on then improving these businesses provided the best return for shareholders.

The company then floated on AiM in April 2010, with management retaining more than 40 per cent of the equity. Promethean exited its shareholding in 2012 by way of distributing its shareholding in Cambria to its shareholders.

As a direct result of this and the management shareholding, the shares are very thinly held and there is little liquidity in the shares at present.

It may be that the company will look to raise further funds in the market over the next few months to dilute some of the current shareholders and increase the level of liquidity.

From a zero base in 2006 the group has grown to comprise 27 dealerships, representing 42 franchises and 17 brands. The company has a balanced portfolio between volume and prestige dealerships. Despite buying several dealerships in 2012/2013, the company generated strong cashflow during the year and appears poised ready to make further acquisitions.

Reading between the lines in a variety of recent announcements, it looks like Cambria is about to change its historic growth model and start to acquire profitable businesses where it has to pay goodwill.

ASE’s view of latest results Cambria has just delivered a strong set of final results for its latest financial year, with an adjusted profit before tax of £4.1m compared to £3.1m in the previous year. This was in excess of the market consensus of £3.5m.

Cambria’s new car revenues grew by 19.5

‘It looks like Cambria is to change its historic growth model and start to acquire profitable businesses.’ per cent, which is significantly in excess of the national average franchise performance for Cambria’s brands, indicating a strong outperformance by the group.

There was also healthy growth in the performance on used cars and within aftersales as the group continues to embed its working practices within the acquired businesses.

Share price performance Consistent with many of the other listed groups in the sector, there has been a substantial improvement in share price performance, as the new vehicle market recovers and retailer profitability improves.

Over the past 12 months we have seen the share price virtually treble, which is clearly a superb performance. The company has received a nice spike in share price right at the end of the graph as a result of the announcement of its latest

results, which have been received warmly by the markets.

On a headline basis Cambria has historically traded at a discount to its peers, although the P/E ratio has jumped to above average as a result of the recent share-price growth.

The discount was largely a result of the lack of liquidity in the shares as a result of the volumes held by management and legacy Promethean shareholders. However, the company also has a comparatively low profile in the market, which further adds to this discount.

Broker forecasts Following the recent results publication, the covering brokers reiterated their ‘buy’ recommendation with a target price of 61p, which compares favourably to the current share price of 48.70p, even after the bounce resulting from the strong profits.

Who is Mike Jones?

He‘s executive chairman of ASE Global. If you want to talk to him about his column, call 0161 493 1930.

CarDealerMag.co.uk | 121

data file.

James Litton

TRADER TALES

Physical auctions. Soon to be a thing of the past?

L

ike most sales managers these days, getting out of my office for a jolly to the auction is very much a thing of the past. Given the amount of bottom-wiping I do, I often wonder whether it would be more commercially viable to open a crèche. However, I digress.

If you are as passionate about our trade as I am, there is no greater physical embodiment of the good and bad of our business than the car auction.

Instead of working on my A-levels, I used to drive to BCA in Bridgwater, sit in the halls and just soak up the atmosphere: a strange mix of body odour, diesel fumes, bacon grease and Polo from Ralph Lauren.

While the big auction companies have nothing to fear, I am concerned that the physical auction may soon be consigned to the past, instead replaced completely by simulcast services, offering multi-lane capability at the touch of a button.

I recently ran our disposal auction at Manheim Wimbledon, and was amazed at the number of online bidders and how few physical attendees there were.

In time, you could see much larger national centres replacing smaller, regional sites with restricted access, space, and sales capability.

This would reduce the operating costs for the auctioneer, allowing more competitive pricing, and therefore guaranteeing the auction as the best remarketing channel for leasing companies, manufacturers and dealers alike.

The buyer also has something to gain from this potential development.

Even the most veteran of auction-goers can get sucked into a price war with a private punter, or bid last-minute for a car that they did not inspect properly, only to cry when they get it back to the pitch and realise it had been on its roof. Online sales mean you can act more commercially, only bidding for cars you have researched more thoroughly. You can also add to this the money saved from wasted journeys, a day of missed sales or business opportunities and - perhaps most importantly - no queasy tummy from a ropey full English.

‘A strange mix of body odour, diesel fumes, bacon grease and Ralph Lauren.’

What do you think? Share your views on our brand-new forum – it’s easy to sign up.

Type CarDealerMagazine.co.uk/forum into a web browser to get commenting

Who is James Litton?

James is sales manager at Tony Purslow Mercedes-Benz, Guildford. He always has something to say about the industry he loves. ���| CarDealerMag.co.uk

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

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CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers, worth £195 – all for a paltry £39.99 annual subscription!

This offer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access to this very special

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guide

Confessions

your real stories

the details of selected companies here Key tracking Keytracker Ltd

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Online marketing

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Autotrade-mail.com

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WMS

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AutosOnShow.TV

Carfleet Wholesale Ltd

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The original and the best. Call for your free two-week trial.

W: supagard.co.uk T: 0141 633 5933 E: info@supagard.co.uk Info: Still the UK’s number one after 24 years and the preferred choice of the AM Top 100 and major vehicle manufacturers.

W: www.g-3glasscoat.com T: 01753 215 311 E: enquiries@g-3glasscoat.com Info: Existing paint protection products cannot compete with G-3 Glasscoat. It gives your car a ceramic-hardened glass finish.

W: swiftpublicity.co.uk T: 020 8880 2359 E: sales@swiftpublicity.co.uk Info: Ideal both as advertising plus QR coded/bar-coded and numbering & self-coding options for key cabinet security.

W: carcom.co.uk T: 0800 019 1299 E: enquiries@carcom.co.uk Info: Carcom is the UK’s new dealer-dedicated online vehicle remarketing service which links buyers and sellers of used vehicles across the UK.

W: globaloasys.com T: 0203 322 2090 E: sales@globaloasys.com Info: The best and most automated stock-sourcing solution that dealers can get - with hundreds of vehicles available right now.

W: nationalcarclean.co.uk T: 01268 565050 E: sales@nationalcarclean.co.uk Info: With 30 years of excellence in vehicle valeting, we have an unparalleled reputation for quality on-site vehicle preparation.

W: hpi.co.uk T: 0845 301 1812 E: thehpiteam@hpi.co.uk Info: We are the UK’s leading provenance check provider with 75 years’ experience. Get peace of mind with HPI Check.

W: www.autosonshow.tv T: 0800 644 6894 E: info@autosonshow.tv Info: Sell more cars with our multi-award-winning video solution. On-demand video, plus live video streaming of your stock.

Getting your company featured here is more affordable than you can imagine. Here’s why

W: wisedealer.co.uk T: 0800 001 4991 E: info@warrantywise.co.uk Info: The UK’s leading car warranty service and maintenance plan specialist. The ultimate bespoke solution for your customers.

W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market-leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!

W: autoprotect.net T: 0871 384 1167 E: sales@autoprotect.net Info: Providers of warranty, GAP and other sources of additional dealer income. Backed by dedicated support teams and IT systems.

W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.

W: gforces.co.uk T: 0845 658 9290 E: info@gforces.co.uk Info: Multi-award-winning car dealer website design and digital marketing. Find out why we keep winning awards.

W: carfleetwholesale.co.uk T: 0151 356 1200 E: sales@carfleetwholesale.co.uk Info: We are the number one supplier to the trade, providing the cheapest nearly-new vehicles in the country.

Prices for 12-month listings: £29 per month. Single months are £49 per month

Christmas goodwill and all that . . .

N

ow, my boss is a very busy man – far too preoccupied with figures, meetings and, of course, his annual festive skiing holiday to think about buying presents.

So, when he said: ‘Would you sort this out for me? I’ve got Gary in parts as my secret Santa. Just get something with cars on it,’ you can imagine what I was thinking.

I hated Gary and he hated me. He’d always have a wise crack about me being new and slightly vertically challenged. The old git.

This was my chance to get some well-deserved revenge.

Gary is in his mid-50s, bald, lacking in hygiene and single. He was quite sensitive about his lack of hair.

So, my shopping started with a trip to the supermarket.

Hair dye, anti-dandruff shampoo and mouthwash.

Then it was a quick stop at the chemist for a foot fungus treatment kit and men’s incontinence pads.

A wig from the fancy dress shop followed before my final call at the newsagents for a copy of Razzle, a packet of tissues and the Christmas edition of 50 Plus magazine.

I placed all the gifts in a shoe box and wrapped it with the cheapest wrapping paper I could find. The tag read ‘To Gary. Thought you’d appreciate all of these things!

Terry (the boss).’

The present handover day finally came, and I couldn’t hide the grin on my face.

Everyone went in turn and we watched as each person opened their secret present.

When it got to Gary, I was transfixed on his face. He ripped the paper off and opened the box. In a confused and slightly upset-little-boy voice, he listed the items as he pulled them out of the box one by one.

‘A porn mag? Foot fungal kit? A wig? What the hell?’ he said. There was an awkward silence in the room before the sniggering started and Gary walked out.

The boss never asked about the present and Gary never brought it up with him. Too scared to offend maybe? I’m still waiting for him to wear the wig though . . .

‘The present handover day came, and I couldn’t hide the grin on my face.’

Tell us your story

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

Prices exclude VAT. Adverts are invoiced after they have been included in the magazine. 12-month bookings are payable up-front.

CarDealerMag.co.uk | 123

workshops.

Want to be included in this section? Call (023) 9252 2434

Fixed price repairs for Saab owners Independent company puts customers who own Saabs first this winter

S

AAB UK has announced it introducing fixed price repairs.

‘We understand the UK car parts market is very competitive and gives owners a wide choice of alternatives,’ said Corin Richards, managing director Saab Parts UK. ‘However, there is nothing quite like an original component.’

Saab Parts UK says there are 200,000 Saabs on UK roads and it has developed a list of some items that at some point need replacing, and offering a new national fixed price for the job, which includes VAT and fitting. Front windscreen wipers can be fitted for £29, brake fluid can be drained and replaced for

£45,front brake pads can be replaced for £119 and a new battery can be fitted for £99.

Richards added: ‘As well as offering Saab owners greater transparency and value, we are also improving customer convenience by expanding our national network through the appointment of new Service Centres. Saab Parts now has 84 repairers across the country and is in the process of appointing more Service and Parts Centres in 2014.

Our approach is to offer Saab drivers the best of both worlds; the technical equipment, training and experience of authorised workshops along with the pricing of independent specialists.’

time to make

08450 212123 perfectplacement.co.uk

Automotive recruitment agency of the year

���| CarDealerMag.co.uk

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the fleet.

WELCOME TO THE FLEET...

New arrival:

RenaultZoe T

here wasn’t much time to shed a tear over the Twizy’s departure as we’ve just got stuck in to living with a Zoe – Renault’s more practical 100 per cent electric supermini.

Most tests carried out on EVs use them in their normal urban environment, but we’re doing something different. I live deep in the New Forest and 40 miles from the office which makes for a nervous journey every trip.

Why? Well, the Zoe’s supposed full range is 130 miles – but due to the cold weather I’ve only managed to charge it up to 84. And my daily commute is 80... So, this test is going to establish whether someone can live with a Zoe when they don’t live in the city.

First impressions are mixed. The Zoe has all the toys any other car of its size would get, and it’s without doubt the most ‘normal’ electric car we’ve seen. It will do typical motorway speeds with ease – a steady 60mph is best – and as with all electric cars the power delivery is good; it will keep up with most things out there and embarrass a few up to 30mph.

the knowledge

But the bad things. I don’t like the poor headlamps, the radio only has FM, the steering is very light and the brakes grab as the regeneration switches off causing some sudden stops.

However saying that, it’s a good-looking thing and does get a lot of attention.

Can I live with it every day? Only time will tell…

Andy Entwistle (@CarDealerAndy)

Model: Renault Zoe Dynamique Zen Price: £16,250 (as tested, Govt. grant incl.)

Engine: Electric motor Power: 88bhp, 219Nm Max speed: 84mph 0-60mph: 13.3s Emissions: 0g/km Mileage this month: 325 This month’s highlight The looks you get from passers-by and the New Forest’s animals

New arrival:

VolvoXC70 I

don’t think I’ve ever been so excited about signing a yellow chit for a car.

The scrawl which I made on the cheapfeeling paper hardly resembled my name – but it didn’t really matter. I wasn’t bothered, least of all was the delivery driver.

Car Dealer’s fleet now boasts a lovely, creamy, and simply wonderful Volvo XC70.

Since I’ve been around, my dad has always had Volvo estates and the XC70 – basically a jacked-up, off-road-prepared V70 – is the ultimate version of the classic Volvo estate.

We Brits love the dependable wagon. It’s the perfect middle-class symbol – it’s upright and not showy, practical and not compromised. I hate to mention Margo and Jerry at this point in this paragraph but you know what I’m hinting at…

We’ve taken delivery of a top-spec XC70 – an SE Lux with the soon-to-be-retired and glorious 2.4-litre, five-cylinder diesel engine. It’s the latest model too – complete with its 2013 refresh with new rear lights, a tweaked front end and nicer interior features – and is absolutely packed to the gunwales with kit.

Just for starters we’ve got charcoal leather, xenon lights with automatic beam, electric seats which are heated, sat nav, DAB, Bluetooth and, most importantly for any Volvo estate, a heated steering wheel. There’s much more to tell but I’m starting to get too excited so I’ll save the rest of the features for a later report.

It does come at a cost though. Volvo estates have always commanded a bit of a premium over run-of-the-mill Fords and Vauxhalls, but our XC70 is massively expensive – ours is £41k. But I suppose that’s the cost of being modern-day Margos and Jerries.

James Batchelor (@JRRBatchelor)

the knowledge Model: Volvo XC70 D5 AWD SE Lux Geartronic Price: £41,020 (as tested) Engine: 2.4-litre, five-cylinder diesel Power: 213bhp, 439Nm Max speed: 127mph 0-60mph: 7.8s Emissions: 169g/km Mileage this month: 1,953 This month’s highlight It fits right in with my lifestyle – middle-class living CarDealerMag.co.uk | 127

the fleet.

WELCOME TO THE FLEET...

Second report:

FordMondeo Mondeo’s vastness amazes 6ft 8in man

A DIESEL estate may not be the first thing that springs to mind when discussing desirable motor cars, but since its arrival, our Ford Mondeo has become one of the most in-demand members of the fleet.

This month marked my first acquaintance with EN13 KWG, and initial impressions were positive.

In its twilight years the Mondeo remains a handsome beast, even if ours is painted the same colour as a Beluga whale.

Its estate silhouette gives a sense of purpose missing from the hatchback model, too, which is further enhanced by the roof racks we’ve festooned it with.

Pointing the Mondeo’s nose towards the snarled-up A3, the first thing that struck me was the sheer enormity of the interior. It’s so vast, it makes the Mondeo’s more ‘upmarket’ German rivals seem positively pokey.

Sat in traffic, an automatic gearbox would have been nice, but the tractable 2.0-litre diesel and an effortless manual shifter made for light work, as did the optional adaptive cruise control.

A relaxing and well-equipped cruiser, then, but with little chance to explore the car’s dynamics, that will have to wait until next month – provided I can fight off the rest of the office for the keys.

Second report:

NissanQashqai MitsubishiASX If it’s as good as this, the next one will be good

NISSAN unveiled the stunning second-generation of the supremely-popular Qashqai to great critical acclaim in November. But while the new model will raise the bar even higher, is it really needed just yet?

Don’t get me wrong. I’m as excited as anyone about the new Qashqai. Trouble is, the original’s still so good, it seems criminal to consign it to the history books. We get to drive lots of crossovers at Car Dealer and the daddy of them all – Qashqai Mk1, in the 360 guise of our long-termer – is still streets ahead of most.

Standing proud on its oversized alloy wheels, and finished in pearlescent Arctic White with black gloss styling accents, it still looks the business. And inside, while the Qashqai has matured, its build quality makes it a match for many a more expensive rival. The 1.6dCi engine too is as efficient, smooth and responsive as you’ll find anywhere.

But while I lament the loss of the trailblazer that spawned dozens of copycats, I guess now is the time to be optimistic and excited. Because if Nissan has managed to move the game on as much as they say they have with the new Qashqai – and by all accounts they most certainly have – then boy, are we in for a treat.

Daljinder Nagra (@DJonMotors)

the knowledge

Third report:

Mal Hay (@MalcolmHay)

the knowledge

Why aren’t there more ASXs on the road?

ONE of the surprising things about travelling the country in our Mitsubishi ASX, is that you very rarely seem to see another one.

Now it could be that I’m not particularly observant when it comes to car-spotting, but I do notice plenty of examples of the other cars in Mitsubishi’s range... Outlanders, L200s, Shoguns, and also more and more little Mirages as time goes by. But the ASX just doesn’t seem to have caught the public’s imagination since its launch in the UK and that’s a shame.

The variant on our fleet is a well-equipped ASX4, with a refined and economical 1.6-litre petrol engine and plenty of creature comforts such as heated seats, keyless entry, reversing camera and more.

And as I think I’ve pointed out in previous reports, it equally at home dodging dozy Christmas shoppers in Kensington High Street or avoiding the wandering wildlife on the remote roads of Scotland. Some of the journeys I have made recently have involved the transportation of elderly parents in varying degrees of infirmity and they all love it for its ease of access, comfort and excellent visibility.

Qualities that any driver would appreciate too.

If only there were more of them!

Dave Brown (@CarDealerDave)

the knowledge

Model: Ford Mondeo Estate Titanium X Price: £29,490 (as tested) Engine: 2.0-litre, turbocharged diesel Power: 161bhp, 340Nm Max speed: 137mph 0-60mph: 8.7s Emissions: 119g/km Mileage this month: 1,313

Model: Nissan Qashqai 360 Price: £22,090 (as tested) Engine: 1.6-litre, turbocharged diesel Power: 128bhp, 320Nm Max speed: 118mph 0-60mph: 10.7s Emissions: 135g/km Mileage this month: 1,467

Model: Mitsubish ASX 4 Price: £19,130 (as tested) Engine: 1.6-litre, petrol Power: 115bhp, 154Nm Max speed: 113mph 0-60mph: 11.4s Emissions: 137g/km Mileage this month: 2,133

This month’s highlight The size of the interior. You could lose things in there and you’d never find them

This month’s highlight Seeing the new Qashqai and realising our ‘old’ one is still an excellent car

This month’s highlight A comfortable trip to Edinburgh and back – not exactly a short hop from the South Coast!

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longtermers

Third report:

KiaCarens

Sixth report:

SkodaCitigo

The Carens is one of our favourite things

FORGET raindrops on roses, whiskers on kittens and all that sugary stuff – heated seats are currently the only items on my ‘favourite things’ list.

As lovely as its 1.7-litre diesel engine is, you’ll have driven a few miles feeling like Scott of Antarctica before it’s prepared to chuck out any warm air.

Thankfully though, the front seats get hot enough to sear a fillet of beef in just a minute.

Surprisingly, the Kia even has a heated steering wheel – something I thought only Range Rover owners got to enjoy.

Things aren’t perfect in Carens-land, though.

For example, the clock in the corner still thinks London takes half an hour to cross. Even with a minicab sticker on the side I couldn’t manage that.

The stereo has a few niggles too, if I’m honest.

Turn the car off a couple of times and its mind wanders off the task of connecting to your phone – leaving you to prod hopelessly at the little green answer button without result.

To be honest, flaky Bluetooth is a least of my concerns though. It’s December and I’m warm.

The stereo can spontaneously combust tomorrow for all I care.

Jon Reay (@JonReay)

the knowledge

After six months, we put the rear seats down

CROSSOVERS have become all the rage at the moment, and it’s easy to see why. Getting two cars for the price of one makes perfect sense.

But after a couple of weeks with the video department, it’s quite clear that the Citigo is very much a one-trick pony.

Its limited boot space has meant that for the fortnight we’ve been driving it around, the rear seats have been lowered. That, however, creates a surprising amount of space, which swallows most of the filming kit fairly easily, and the low boot lip makes getting some of the heavier items in a doddle.

As nippy little city cars go, the Skoda is quite characterful. OK, it’s not what you’d tag ‘hot hatch’, in fact it’s not even luke warm, despite what the ‘sport’ badging will have you believe.

But down deserted twisty country lanes it is quite fun. The steering is well weighted and the dinky dimensions make placing the car in exactly the right spot easy.

What surprised me was the frequency we needed to stop to top up the fuel tank, especially on long motorway journeys where the engine seemed to be working hardest. Still, all the loyalty points I’m collecting with all the pit stops means I’m getting closer to a new toaster.

Nigel Swan (@motoringnut)

the knowledge

Eleventh report:

Peugeot208 A new tax disc... let’s get motoring

AS reminders go that you’ve had a car for a long time, the arrival of a nice, shiny 12-month tax disc is probably as strong as they come.

That’s right – the Peugeot 208 has been with us for so long now, the Chancellor wants us to cough up another year’s road tax for it. Luckily, the nice chaps in the Peugeot Press Office noticed the tax had expired – we’re far too busy to be keeping a note of things like that – and popped one in the post to us.

One lunchtime this month, I thought I’d reacquaint myself with the Gallic motor car. With the new tax disc securely stuck to the windscreen I was looking forward to my adventure. The 208’s squashy driver’s seat and natty little steering wheel immediately felt comfortable again.

What I had forgotten about though was the dreadfully high clutch. The 208 really suffers from a little niggle – after changing gear and applying the throttle, there’s a strange pause in progress.

It seems to be getting worse, not better, after 12 months. And the gearknob is made from the nastiest plastic possible.

That said, the 208 is a perfectly acceptable little thing. It’s the type of car which would be fine if you hadn’t sampled a Fiesta or Polo – that’s not a criticism, just a statement of fact. [CD] James Batchelor (@JRRBatchelor)

the knowledge

Model: Kia Carens ‘3’ 1.7 CRDi manual ISG Price: £23,895 (as tested) Engine: 1.7-litre, four-cylinder turbocharged diesel Power: 134bhp, 330Nm Max speed: 119mph 0-60mph: 10s Emissions: 132g/km Mileage this month: 896

Model: Skoda Citigo Sport Price: £11,050 (as tested) Engine: 1.0-litre, three-cylinder, petrol Power: 58bhp, 95Nm Max speed: 99mph 0-60mph: 14.2s Emissions: 105g/km Mileage this month: 1,103

Model: Peugeot 208 Active Vti 1.2 Price: £14,550 (as tested) Engine: 1.2-litre, petrol Power: 82bhp, 118Nm Max speed: 109mph 0-60mph: 13.8s Emissions: 104g/km Mileage this month: 423

This month’s highlight The heated parts of the Carens are very much appreciated now that it’s getting chilly

This month’s highlight There’s a surprising amount of space when the seats are folded down

This month’s highlight Climbing back into the 208 after a short while and it feels immediately comfortable again CarDealerMag.co.uk | 129

data fiLe.

Analyse your business, find your shortfalls and then take action W

hen I started my financial services career at the start of the millennium, I was working for a major UK bank at a contact centre in South Wales.

Walking down the corridor during my first few days I encountered numerous corporate posters strategically placed on walls.

Each one had a different message, followed by a brief explanation outlining what the message meant and how the company in question would go about achieving this.

Throughout the following years with new employers or other businesses whom my employers completed business with, or in life generally, as a consumer it became apparent that it was very normal for businesses to make strong and positive values apparent to both employees and customers, it was just the degree to which they were actually enacted which varied.

The other major (and critically important) learning curve for me as my life evolved as an employee, and consumer, was that it was all well and good for us to learn what a company should reflect on in terms of values, but actually putting those values into the fabric of the organisation so that the employees and the customers benefit overall was much harder than sending your poster to the printer for production.

Highlighting how important the customer is; their experience; the service they receive; meeting their expectations; going above and beyond; and endeavouring to take on board any feedback from that customer’s experience, are some of the examples which I have witnessed, with the customer being the focal point.

There is little point wasting valuable words in this article, giving views on how many organisations fail

Jonathan

Such TIME IS MONEY

when being measured against the words which they put to paper; we haven’t got time for that.

The FCA takes over the regulation of the consumer credit industry from April 1, 2014 which will ensure that you will have to pass through their gateway to enter the market, come under their jurisdiction from a supervision perspective and be subject to their enforcement if they find you to have failed under any of their rules.

And the good news is that companies who specialise in writing customer-centric slogans, and who wish to access the market under the FCA, will have no problems!

That is until they have to back up their words with action. Pretty posters, wallpaper, web pages, and any

‘We are fast coming towards the end of 2013 – time is running out.’

other corporate method of communication advertising what that company is all about will be all very well but the employees will need to work in complete cohesion if success is to be achieved.

That is, maybe, where it becomes a little trickier!

Executing a good outcome on behalf of each, and every customer, and being able to demonstrate this on a regular basis, is going to be a fundamental requirement of being supervised from 2014 by the FCA. We are fast coming towards the end of 2013, which means that time is running out. My advice is very simple; start analysing your business quickly to determine where the shortfalls are, then take action to get ready for our new regulator.

Who is Jonathan Such?

Such is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk

Coming next month

If there’s something you think we should be covering get in touch. Our details are on page three ���| CarDealerMag.co.uk

TESTED

Ford Ecosport

CarDealerMag.co.uk | 131

A sincere thank you to all our customers for making 2013 such a memorable one.

Have a very Merry Christmas, and a Happy New Year.

Paintseal Europe Ltd, 93-97 Whitby Road, Slough, SL1 3DR 01753 215311 · enquiries@paintsealeurope.com · www.paintsealeurope.com

TECHNOLOGY WITHOUT FRONTIERS

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