Car Dealer Magazine: Issue 72 by Blackball Media

PRE-REG: SMMT CHIEF ENTERS DEBATE

Issue 72 | March 2014

plus: A DAY AT CAROLINE’S CARS

CarDealerMag.co.uk | £3.50

clear picture industry’s leading figures on what 2014 has in store

featuring car bosses FROM: Renault, Toyota, Peugeot, Nissan, Jaguar Land Rover, Kia, BMW, Pendragon, Ford, Mitsubishi and Hyundai plus Major suppliers give their views on the year ahead

Efficient

New Features Profit

Email Business Intelligence

SQL Database Engine

Multi-Brand/Location

Prospect

Vehicle Stock Book

Automotive Software UK Support Centre

Powerful CRM Parts Orders

02 | CarDealerMag.co.uk

2014

DragonDMS

Hosted/Cloud Option

Manufacturer Links HPI Checker Workshops SAGE 50 Integration Service Reminders SMS Text

Reports

Accounts

Estimates Supplementary Invoices

Reliable

New Look

Low Cost

Reports

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

Blackball Media Haslar Marine Technology Park, Haslar Road, Gosport, PO12 2AG T: (023) 9252 2434 W: CarDealerMag.co.uk

Free ipad App

6,147 people have it – have you?

Free iPhone App

4,653 people have it – have you?

IGNITION.

EDITORIAL EDITOR James Batchelor

james.batchelor@blackballmedia.co.uk Twitter: @JRRBatchelor

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

STAFF WRITER Sophie Williamson-Stothert

sophie@blackballmedia.co.uk Twitter: @1Sophie_W

head of design Graeme Windell

graeme@blackballmedia.co.uk

ADVERTISING ADVERTISING Manager Duncan Chappell

duncan@blackballmedia.co.uk Twitter: @CarDealerDunc

Advertising EXECUTIVE Cliff Culver

cliff@blackballmedia.co.uk Twitter: @CarDealerCliff

CREDIT CONTROL & ADMINISTRATOR Pippa Marsden

pippa@blackballmedia.co.uk Twitter: @CarDealerPip

SUITS MANAGING DIRECTOR James Baggott

james@blackballmedia.co.uk Twitter: @CarDealerEd

OPERATIONS DIRECTOR Andy Entwistle

andy@blackballmedia.co.uk Twitter: @CarDealerAndy

Contributors Tim Naylor, Tim Peake, Paul Daly, Jonathan Such, Leon Poultney, Daljinder Nagra, Gareth Bethell, Jon Reay, Mal Hay, John Bowman and Mischa Allen.

Subscriptions

£39.99 per year (UK) £59.99 (EU) £79.99 (rest of the world)

You can pay by credit or debit card on our website – visit CarDealerClub.com

Distribution

Car Dealer is distributed to a database of up to 12,000 franchised car dealers, independents, service and repair sites, car manufacturers and suppliers. Advertisers are supplied with a print certificate every month.

App downloads

Jan iPhone app downloads: 82 Total downloads: 4,653 Jan iPad app downloads: 109 Total downloads: 6,147 Search for ‘Car Dealer Magazine’ in iTunes

Company No. 6473855 VAT No. 933 8428 05 ISSN No: 1759-5444

Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright. Nothing may be reproduced wholly or in part without permission.

Influencers Welcome. AUTOMOTIVE has become one of our best and most popular features. It’s our annual collection of the finest and most important people in the car industry, all gathered together in one place so you can find out exactly what they think will happen on the motoring scene in the next 12 months. Once again, we held the event at the RAC Club in Pall Mall, London. It’s a breath-taking venue, and, more importantly, neutral ground for the bosses of the car companies and automotive suppliers who attend. We asked them for their views a few weeks before, and their arrival at the RAC Club was purely for photographic reasons. They were relaxed, genial and happy to chat and laugh at each other’s picture poses. And this year, they were all feeling pretty optimistic. Some of the MDs predict a 10 per cent rise in new car sales this year. Other say between two and five – but, despite the fact that 2013 was a great year for the motor trade, they think the next 12 months have similar potential for growth. On the day at the RAC Club, Car Dealer’s video team were also on hand and produced a brilliant film of every car manufacturer MD, showcasing their thoughts. And due to such a positive feeling from the day with high expectations of another strong year ahead, we rushed back to the office and issued a press release and the video to national media. The story and video were picked up by a number of outlets including the Daily Telegraph, which ran a piece about the car bosses’ optimistic mood and our video too. You can see the film by scanning the QR code on p45.

SMMT JOINS DEBATE HOPEFULLY it didn’t escape your notice that in the last issue of the magazine, Car Dealer MD James Baggott investigated the subject of pre-reg. It’s obviously a topic you’re interested in – just take a look at some of the letters we received this month – but we really wanted to hear the SMMT’s views on the subject. After weeks of diaries not matching, the SMMT eventually spared us their chief executive just 24 hours before this magazine went to print. Whether you think the organisation’s view of the thorny issue of pre-registration is revealing is entirely up to you, but I think it’s a very interesting insight. Flick to p12 to see the debate. HELLO AND GOODBYE THIS is the last issue our very talented staff writer, Sophie Williamson-Stothert, will be working on, I’m sad to announce. She’s off to embrace her first love, motorsport, and in so doing, hangs up her journalism hat and puts on a public relations one. And as Sophie goes, it gives me great pleasure to welcome Dave Brown, former Car Dealer sub-editor, back to the mag after 12 months in the world of PR. He is our new production editor, and he and I are very much looking forward to bringing you the magazine every month.

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

Like other paint protection ... only better. Thatâ&#x20AC;&#x2122;s what the majority of the AM Top 100 think. Call us today to find out how you can profit from the UKâ&#x20AC;&#x2122;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

04 | CarDealerMag.co.uk

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

INSIDE. ISSUE 72 I MARCH 2014

Dashboard

06 Car Dealer Club 10 Interview: Mike Hawes, SMMT chief 12 The importance of dealer PR 20 Car Dealer Power 23 Car Dealer Conference 2014 24 Big Mike 31 Baggott 33 Feedback

Automotive Influencers

We gather together the industry’s biggest names to find out their thoughts on the automotive landscape in the next 12 months

Tested: Maserati’s new Ghibli saloon

Forecourt Maserati Ghibli Seat Leon ST

Honda Civic Tourer Why you need to attend the Car Dealer Conference 2014

SsangYong Rexton W

‘‘

Features

We are not hiding anything

Driven: Honda’s Ford Focus Estate rival – the Civic Tourer

36 38 40 42

SMMT chief enters pre-reg debate

44 A day in the life of: Caroline’s Cars 76 Trading Up 78 Focus on: Autosonshow 80 Automotive Influencers 2014

12 Data File

82 Taking Stock & Buyers’ Guide 84 Auctions 86 Trader Talk 89 Market Insight 91 Suppliers’ Guide & Trader Directory 92 Workshops 94 Long-termers 95 Time Is Money 98 CarDealer The Statistics

Car Dealer visits the very feminine Caroline’s Cars

OUR AWARDS...

IN ASSOCIATION WITH

GEN-3 GLASSCOAT

2013 WINNER The Car Dealer Used Car Awards, CarDealer sponsored by Black Horse, are EWARDS the only awards that celebrate 2013 the used car industry. Nominate now – log onto bit.ly/UsedNoms14

WINNER

USED CARAWARDS SPONSORED BY

2013 WINNER ea arD le

As voted for by dealers, the Car Dealer Power Awards are unique in the industry. Go to cardealerpower.com to fill out this year’s survey

POWER

IN ASSOCIATION WITH

WHEELER DEALERS

CarDealer

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 p10 for details. CarDealerMag.co.uk | 05

feedback. Your comments via email to james.batchelor@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

SMMT FIGURES

It’s the issue everyone’s talking about

I WRITE to you after reading your article on preregistrations, and the somewhat disingenuous attitude put forward by those manufacturers involved in the encouragement of the practice. I am employed within a large franchise dealership, which has enjoyed a typically tepid start to the year new car sales-wise, and would ask that you respect my confidentiality. After reading your article, we were briefed by our sales manager, who outlined the pressure coming from the manufacturer to reach a set volume of registrations for January, and there is a financial incentive to do so. The manufacturer is insisting we (ie the dealer network) reach this target, and has passed on additional support onto a number of stock vehicles to give us dealing room. This is fine, but disregards the issue of footfall, which is crucial to sales, and the failure of the manufacturer to generate interest in their vehicles and finance offers which drives conquest inquiries to any dealership. The message is clear from the manufacturer. We do not care how you get there, but you must get there. This could therefore mean another month of pre-registering vehicles that there isn’t an immediate demand for, and having them stuck with us but excluded from the offers that new cars attract when traffic does come into our showroom. What obviously goes on within the industry is a headlong rush towards registration targets at manufacturer level, with little regard of the trading and logistical problems that preregistrations cause the dealership. For manufacturers to spin the line that it’s a

dealership decision to register cars is close to being a lie, and certainly a misrepresentation of their involvement in driving the process. Let’s be clear. Dealers do not want preregistered stock. They do not increase sales, they drive down profits, and begin a procedure of price-led distress selling for no financial gain. It is the leverage the manufacturers exert on the dealers that means we have this absurd situation existing at the moment. It also breeds a sense of false optimism in the state of the market. Maybe this could be seen as a positive regarding the economy, but the last thing the motor industry needs is a false dawn. Manufacturers as a breed are hopelessly out-of-touch with what goes on in the real world. They elevate the superiority of their own product in their own eyes, and to one extent or another, believe price is not a major factor in purchasing. They then plan optimistic sales figures, disregard previous forced registrations, and when real demand fails to match this, the dealers are left to carry the burden. We are at present approaching saturation point. We are being forced into holding preregistered stock, which has to be sold at some point, and distress selling as a result, all to satisfy the vanity and poor sales targeting of manufacturers. Thank you for raising the issue, how it can be reduced I do not know, but its impact on the market and individual dealers can be serious indeed for their own financial viability. Anon, via email

Manufacturers, not dealers, are to blame for situation IT HAS been very interesting to read your article about pre-registration and the comments from a manufacturer perspective. As a former new car franchised dealer and with a career of nearly 50 years in the retail motor trade, I would have to disagree with most of the manufacturers who seem to ‘blame’ the franchised dealers for the proliferation of pre-reg units. Truthfully, and for as long as I can remember, the requirement for preregistration is purely down to manufacturer quarterly target figures. If it wasn’t for a worldwide overproduction of new vehicles, resulting in franchised dealers being pushed to help with new car registrations, there would be much less need for pre-reg. Also profit margins on new cars are still under severe pressure, not only via the car-buying public, but also from the manufacturers whose wholesale margin always remains a constant. In the main for most new car dealers, if they did not have their overriding margin based on quarterly targets and the resulting need for pre-reg and similar categories, then a large number would very soon go out of business. So the reasons for pre-registrations rest largely with the manufacturers and most definitely NOT with franchised dealers. Anon, via email

Will Sun Motors bring any added value to dealers or consumers? I’m not so sure... I NEED convincing Sun Motors will bring any added value to either dealer or consumer. I think News UK’s online classified strategy is confused. They claim Sun Motors has been on the drawing board for 12 months, yet they only launched Driving.co.uk 15 months ago under a fanfare that it was going to break the dominance of Auto Trader. However Driving.co.uk was only going to advertise vehicles over £14,000. Common sense suggests you can’t launch a niche website and 06 | CarDealerMag.co.uk

go toe-to-toe with a website advertising nearly 400,000 vehicles. Since the launch of Driving.co.uk, they have continually diluted the brand proposition by lowering the threshold value of a vehicle advertised and by the looks of it there is no longer a threshold. Therefore then, how do they propose to sell two propositions that don’t in principle have any differentiation? When News UK announced their launch of Driving.co.uk I was personally surprised that

they didn’t do it under the Sun brand. After all, it claims a 12 million weekly readership and has the mass-market appeal that would attract both visitors and dealers. So when other newspaper publishers rush to exit the car classified market: Daily Mail selling Motors.co.uk to Manheim and Guardian Media Group looking to sell their stake in Auto Trader. co.uk, how will Sun Motors fare? Andy Cullwick, via email Full story, p19

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

What you’re saying on Car Dealer Forum

When’s a deal a deal?

Test match Try before you buy?

Customer’s ‘Pompeii-style eruption’ prompts moral dilemma SO, here’s the scenario: Mrs A sees the car in our showroom. Says all the usual things like, ‘it’s lovely, I’d like that, will be back for a test drive.’ She comes back three days later, has a test drive and says she must talk to her husband who’s away on business. I tell her that it’s on sale until it’s sold and if someone comes in with the money, I’m selling it. Mrs A comes in two days later with her husband and has another test drive. They tell us they’re very keen, but there’s a mark on the interior trim that’s putting them off. I say, we’ll work on the trim and call when we’re happy. Next day I call Mrs A (husband away again) to say that the mark is 80 per cent gone. She says that should be okay but will check with Mr A, and has to speak to her insurance company as the previous car was a write-off. I say we’ll take the advert offline whilst she sorts it out, but we need her to come in and sign the order. Mrs A says she’ll be in the next day or the day after. Next day, Mr and Mrs B arrive, see the car and want it. We agree a part-exchange value and they pay the balance in full. Then I call Mrs A to give the bad news – and a Pompeii-style eruption ensues. She says we ‘promised’ her the car and it’s ‘her’ car, and why

didn’t we contact her when someone else was looking at it? (It wasn’t possible for us to contact her.) What should we do and what would you do? GreenGiant IF it were me, Mr and Mrs B would still be the proud owners of a shiny new car. The only thing I would have done differently would have been to leave the car advertised online. sparky WE have had similar situations in the past, so we only ever set a car to one side for the customer on receipt of a £250 deposit. Even if Mrs A turned up with the deposit in hand and Mr and Mrs B were out test-driving the car, it would be Mr and Mrs B’s call, as Mrs A had her chance! The only place you have gone wrong is by saying that you would set the car to one side and remove it from the online adverts. To Mrs A, that sounded like the conclusion of the deal! jimreidvehicle Mr and Mrs B rightly got the car. You’re in business and you’ve sold it. Well done! LawJaw

AT the Car Dealer Used Car Awards evening, I was approached by a dealer who said they had seen ‘The Dealership’. He said he was in charge of several main dealers and the thing he took from the programme was that we try to give everyone a test drive. He went on to say he regularly gets all of his managers and sales team together to stress the fact people really need to drive ‘our cars’. I was shocked. Surely this is the first thought of any salesman or manager? The reason I remembered this was because today I sold a Ford Kuga to a customer who had gone to a Ford main dealer to buy a Kuga but the salesman wouldn’t give them a test drive but did drive the customer in the car! Why would you do that? Dan Sellen THERE are two sides to every story. I have spent 30 years selling cars, and worked for a few large companies. They all have policies regarding test drives. Usually the salesman has to take a copy of the driver’s licence. Often people don’t carry them, so a test drive is refused. A customer has to be accompanied to comply with insurance normally, and definitely when using trade plates – that’s the law. So, although many customers like to just be given the keys, that is not the correct way. I am a firm believer in test drives. They give you a chance to get away from the showroom, which is your environment, into a neutral zone which usually makes the customer feel more relaxed. In my experience, salesmen who send customers out on their own are too lazy to go with them or think that the customer will not feel comfortable. I say it is our job to help the customer get the best from the drive. Ron Gwilliams

Twitter threads of the month THERE were quite a few tweets flying around before and after our Automotive Influencers feature this year. Here are a few of our favourites...

Thank you to @CarDealerEd and to all at @CarDealerMag for today’s meeting at The RAC. David James @OfficiallyDJ

Big shoot in London tomorrow for @CarDealerMag so @JRRBatchelor is definitely not having any of these. Definitely. (picture right) James Baggott @CarDealerEd

Interesting views from fellow car company MDs at the @CarDealerMag Automotive Influencers event in London on. All forecasting growth. Lance Bradley @Lance_Bradley_ n Automotive Influencers p44 CarDealerMag.co.uk | 07

Hereâ&#x20AC;&#x2122;s what you need at your fingertips. A range of warranties to help you tool up for stronger profitability. Small wonder weâ&#x20AC;&#x2122;re first choice for over 60% of UK dealers. 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.

08 | CarDealerMag.co.uk

Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

DASHBOARD.

Vauxhall boss Aldred leaves UK for new job in America Will successor have equally high hopes that firm can overtake Ford?

auxhall chairman and managing director Duncan Aldred is leaving his UK role to take up a new job in America with parent company General Motors. Aldred, pictured, has been named as US vice president, Buick-GMC and he will be responsible for Buick-GMC sales, service and marketing in the US. He takes up his position on March 1, and will be based in Detroit. The announcement comes fewer than six months after Aldred boldly announced he expected Vauxhall to overtake Ford in the UK sales charts by 2016. However, Vauxhall finished 2013 more than 51,000 units behind the Blue Oval. News of Aldred’s appointment will lead to speculation as to whether his successor will have such high hopes for the Luton-based car company. Aldred’s move is part of a wider GM reshuffle. He will report to Steve Hill, vice president, US sales and service. Hill said: Duncan has a broad understanding of sales and marketing and the right skills to help us delight our current customers and attract new ones.’

CAR DEALER COMMENT JUST six months after making the bold claim that ‘Vauxhall will outsell Ford by 2016’ in the UK, the manufacturer’s chairman and managing director, Duncan Aldred, has been shunted to a new role across the pond. After finishing 2013 in second place behind its Blue Oval rival – some 51,000 units off the number one brand’s pace – Aldred will leave the UK operation to take up a position with Buick at the start of March. Based in Detroit – a place no-one would choose to work, let alone live – Aldred will be in charge of Buick-GMC sales, service and marketing in the States. No one at Vauxhall would comment whether the move to the US was connected to Aldred’s bullish statement on the brand’s

sales ambitions made to a national newspaper. Despite Car Dealer contacting the Vauxhall press office, no-one there bothered to reply, so we can only speculate as to the reasons for Aldred’s surprise career move. Car Dealer questioned the Vauxhall boss’s bold statement in a recent editorial and has since been banned from driving any of their cars as a result. We’re now wondering whether Aldred’s replacement – who hadn’t been appointed at the time this issue went to press – would stick to their predecessor’s quest to oust Ford from the top spot. We look forward to asking whoever gets the job that very question... that’s if the Vauxhall press team are ever brave enough to let us speak to them.

Vauxhall said it would announce news of Aldred’s successor ‘later’. Aldred held various positions in Vauxhall sales and marketing earlier in his career and was appointed retail sales director in 2004. In July 2006 he moved to Budapest as director, sales, marketing and aftersales for GM’s South East Europe region, transferring to Germany to take the role of sales

operations director for GM Europe in 2009. Returning to the UK in January 2010, he became managing director of Vauxhall Motors, adding the chairman’s responsibilities in December 2011. In addition to these roles, Aldred took the assignment of acting vice president, sales, marketing and aftersales for Opel/Vauxhall in January.

USED CARS

Two threats to market stability GROWING numbers of nearly-new cars and an ongoing shortage of clean three- and four-year old cars pose the main threats to used car market stability. That’s the view of CAP Automotive which believes that large numbers of preregistered cars in the market, along with the pursuit of daily rental business by some manufacturers in the closing days of 2013, could lead to reducing trade values for the youngest used cars. According to the latest Black Book Live market report, ‘only around 20 per cent of cars available in the current trade market could be described as anywhere near clean’.

PERRYS

Charity auction raises £10,000 A CHARITY auction organised by dealer group Perrys has raised more than £10,000 for a children’s hospice. The most prestigious item in the sale, a 1977 Vauxhall Viva owned by the business, was auctioned on eBay, fetching over £7,000 earlier this month. The keys were handed over to the winning bidder, Norman Bowie, at Perrys’ Vauxhall showroom in Preston, Lancashire. The handover was performed by sales executive David Totty – the very same salesman who sold the Viva brand new back in 1977.

CARSHOP

Four new MG outlets named CARSHOP, one of the UK’s largest car supermarkets, will now sell brand new MGs at four of its stores across the UK. Previously known as a used car retailer, CarShop has broadened its offering and has announced that its outlets in Northampton, Doncaster, Swindon and Norwich will become official MG outlets. CarDealerMag.co.uk | 09

DASHBOARD. FEATURE.

Ask Lawgistics

Cam belt woes

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

I recently put a car into a garage for a presale service. While it was there, bailiffs came and seized it, saying it was subject to a ‘Log Book Loan’. I am amazed they can do this. If you make an internet search for Log Book Loans you will see that it is a very popular way of raising finance – particularly if other conventional avenues are not available. We have, however, come across a problem area for retailers and garages when the latter is working on a vehicle which is connected with a Log Book Loan (LBL). An LBL works by the owner of a vehicle selling it under a Bill of Sale to the particular LBL company. The owner hands over the vehicle registration document, a credit agreement and the Bill of Sale. He or she is then allowed to use the vehicle, but they do not own it while the credit is being paid off. The Money Advice Service says a typical loan would have an APR of 400 per cent or higher, accumulating weekly. If someone borrowed £1,500 and paid £55 a week for 78 weeks (a typical period), they would repay £4,290, ie £2,790 interest for a £1,500 loan! LBL lenders can seize the vehicle if the customer can’t make repayments. Here’s where the problem arises. You may ‘buy’ a vehicle and take it in for work unaware that it is owned by an LBL lender. Alternatively, once the vehicle is with you or the garage it may then be sold to an LBL lender. Once the customer defaults on payment, the LBL lender can engage bailiffs to come along and seize the vehicle. If the person who brought the vehicle to you for repair owned it at the time of bringing it in or had authority in the Bill of Sale to have repair work (over and above routine maintenance) carried out then there is an argument that the LBL company should pay you a reasonable amount for the betterment of the vehicle. The downside is that you are faced with bailiffs wanting to take the vehicle away there and then. To give yourself some time you can seek a

Walking Possession Agreement from the bailiff, which effectively means the vehicle has been ‘seized’ but you are obliged to keep it safe until the agreement runs out. In this way you have some time to contact the LBL company and check out the legality of the situation. From another angle, ‘prevention’ is better than ‘cure’. You will have several customers who regularly buy from you and for the most part these people will not cause you problems. However, if you are taking in a vehicle from someone you don’t know, be much more cautious. Make sure you have a proper name, address and telephone number. Check these and ask for proof of name/ address. Ask to see the registration document for the vehicle. If it has been sold to an LBL company then they will not have one but perhaps would have a photocopy, which would be suspicious. If the LBL company is a member of the Consumer Credit Trade Association (CCTA) it is obliged to register the LBL with a business such as HPI, Experian, etc, so you may even think it’s worth subscribing to these. Finally, you may consider getting the customer to pay over some or all of the anticipated bill for the work up front. This is guaranteed to weed out the rogues or those without the money to pay.

Q A

Someone bought a car from us and a month later the cam belt snapped. Are we liable? We recently assisted one of our clients in court over a similar situation. The belt hadn’t snapped but, as a precaution, the customer had gone elsewhere for it to be replaced and was suing our client for the cost of the new part and labour. Surprisingly, the judge ruled in favour of the customer, despite no evidence the belt had travelled the miles recommended by the manufacturer before a replacement was advised. This serves as a reminder that the selling garage cannot escape liability even if a customer has repair work done elsewhere, having firstly refused to let the selling garage do it. But matters like this are often decided case by case and it is not a higher court decision.

.com

Who legally owns worn-out vehicle parts?

When a consumer takes a car to a garage for a repair, who legally owns the old parts (that are removed and replaced) and is it implied that the repairing garage removes and disposes of them – or would it need to be an express term and therefore negotiated with the consumer in advance?

The answer is, strictly speaking, that the consumer has title to the replaced parts and, as such, if they wanted the burnt-out clutch back then the trader has to give it. Of course, the customer may also get all the oil and other rubbish that was displaced in removing the clutch as well! However, we

ADVICE

would also say the consumer has to specifically state they want the parts back at or before the time they commission the work to be done, as what a person is contracting for in reality is for the worn-out parts to be replaced AND for those worn-out parts to be disposed of, thus waiving legal title in them and vesting such title with the garage.

JOIN CAR DEALER CLUB AND GET all these BENEFITS worth

App Creatives ��| CarDealerMag.co.uk

Autotrade-mail

Blackball Media

HPI

Lawgistics

Loop Fobs

WHY I JOINED car dealer club Caroline Lawton used her £39.99 membership to keep herself on the right side of the law

WANT TO UPGRADE YOUR MEMBERSHIP?

SOMETIMES, it’s not just about protecting your business when things go sour with a customer, it’s also about having your customers’ best interests at heart. Whether you’re a small independent trader or you work for a multi-franchised dealer group, it’s essential to know your own legal rights as well as what you can do to keep your customers happy. For Caroline Lawton, owner of used car dealership Barnfield Cars in Kent, keeping up with the latest legal requirements is vital. ‘I saw Car Dealer advertised on the internet when I was searching for help on Google. I clicked on your website and that’s when I learnt about Car Dealer Club,’ she said. ‘I joined as a full member about 18 months ago.’ Lawton signed up to Car Dealer Club when she was experiencing a few problems with a customer, and after resolving her issues with the help of Lawgistics she uses the service regularly. ‘I wanted

LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that Club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £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.

to seek legal advice. Car Dealer Club helped me to find out about Lawgistics, which now I simply couldn’t do without,’ said Lawton. ‘Before I got in touch with Lawgistics, I didn’t have much legal background. I was keen to seek advice and legal help so that I could learn to monitor and manage any issues before they got out of hand.’ As well as helping the business to tackle tricky situations with buyers, Lawton spent time consulting with Lawgistics to help improve the service she offers. When it comes to selling cars with vastly different price tags it’s important that customers are aware of what they can expect, from a cheaper low-end car to a pricier model. Sometimes, this can lead to confusion for customers and a predicament for the seller. She said: ‘I wanted to find out what obligations we have as an independent car trader and, when it comes to selling a car, what customers tend to expect – there is a vast difference between what customers will get from a £2,000 car and a £10,000 car. ‘I want to help our customers as much as possible and offer them what we can within the boundaries of the law.’ Having been a member for nearly two years, Lawton says it’s a relief to know that Lawgistics is always there if she needs them. To ensure she receives the best service available, she has also been assigned a personal adviser. ‘Lawgistics is absolutely brilliant,’ said Lawton. I’ve even been given a direct telephone number and can talk with my adviser via email. ‘I was so impressed with the service from Car Dealer Club that I decided to upgrade from the basic membership to the full Lawgistics service. ‘I feel much more confident about where I stand as a business now and how to handle each situation that I’m confronted with, whether it be about warranties, vehicle pricing, service history or customer satisfaction.’

£1,000s AND ALL for just £39.99

Unicom

AMS - GAP Insurance

Moneybarn

EASY STEPS TO JOIN car dealer club

GO TO CARDEALER MAGAZINE. co.uk/ CARDEALER CLUB

Scan the QR code

HIT SUBSCRIBE

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

Dragon2000 CarDealerMag.co.uk | 11

INTERVIEW.

Pre-reg: but that C

ar Dealer Magazine has been trying to interview SMMT chief executive Mike Hawes since he took up his new post in September. He’s clearly been a busy man as it’s taken us several months to pin him down to a date. Following posts at Bentley, where he was in charge of corporate affairs, and similar roles at VW and Toyota in the UK and Brussels, Hawes took the top job at SMMT, succeeding Paul Everitt, at a time when the car industry was experiencing a sustained period of growth. And he’s been busy getting his head around the job ever since. During this time there have been many in the industry who have questioned the true story behind the growth in new car ‘sales’. While it’s clear the market is certainly stronger, the full number of retail buyers out there is unclear. Many dealers – and manufacturers – openly admit pre-registrations are rife in our industry. Dealers are registering cars that are sitting on their forecourts waiting for ‘used’ buyers or ‘nearly-new’ customers. With factories churning out cars at the same rate of knots as when Europe was in full-buying mode, those cars have had to go somewhere – and many of them have been forced into the UK. Industry experts say it’s much cheaper for car manufacturers to force volume into markets, such as the UK, than it is to shut down factories that are tied into expensive supply chain orders. But that has meant car dealers in the UK are feeling the pain. Since our investigation in last month’s magazine, many dealers have been in touch to explain the difficulties pre-registrations present them with. While for some it’s an opportunity, others are struggling to find homes for cars they’re being forced to register to hit targets the month before and say they fear they’re becoming trapped. We caught up with Hawes, left, late one evening after he’d been meeting with the Department for Transport. In a frank discussion, we asked him about his opinion on the market and pre-registrations. Here’s what he had to say. ��| CarDealerMag.co.uk

Investigation: Is pre-reg rife? bit.ly/preregrife

‘Fairly common’ maybe doesn’t mean it’s rife SMMT chief executive Mike Hawes gives JAMES BAGGOTT his views on the pre-registration debate and his hopes for the car market in 2014 What are your thoughts on the new car market this year in terms of volume? I think it is going to be stable, maybe up slightly. I think our official forecast is around one per cent and I think that is sensible. You need to look at some of the underlying trends in the market. Last year was up more than 10 per cent and that was significant, but increasingly customers are now getting into a more stable buying pattern. Many are using finance, which means they are on contract plans for three years, and that gives more stability to the market. Is the recovery in the economy helping? Yes. The economy is definitely growing and all the economic indices would support that. Look across to Europe and we’re probably seeing the beginning of a recovery there. Registrations are up in the last three months across mainland Europe, so that is having a bearing on the supply of some vehicles. The economy is increasing and that gives greater encouragement, particularly to businesses. We saw that confidence in consumers and we think that will now translate into the fleet side of the car business.

while we don’t think it will be quite as great as last year, the fact at least 75 per cent of new car purchases now have some form of finance against them will lead to a much more robust and stable model that was perhaps not there 10 to 15 years ago. Back then, many people were using equity from their house or borrowing from a bank, so it was much less secure. Why don’t we, as an industry, report the bulk pack deals of cars that manufacturers sell to car dealers? What do you mean? Well, car dealers are sold pack cars from manufacturers to hit monthly targets. Why aren’t they highlighted in your monthly figures in any way? We just report registrations. In terms of the New Car Order if a manufacturer should choose to register them themselves they would have to report them, by law, in the correct channels. We just report registrations, we don’t dig down into any individual registration, as I don’t think that should be our role.

In this issue we’ve got together some of the leading bosses of car manufacturers in the UK and they seem to be very positive – some predicting the market to be up as much as 10 per cent. Why doesn’t the SMMT echo their views? Well, we do. The forecast we put together was created after all the industry submitted their forecasts individually, and we have taken a basket of those predictions to arrive at our prediction for the year. Looking at your video (produced at the event), I agree there were one or two who were predicting growth of up to 10 per cent, but we see growth to be a lot more moderate to last year. The response we’ve had, from the collective of all the manufacturers, has led us to the numbers we’re predicting. We try to be sensible and offer fact-based forecasts.

We all know pre-registrations are happening and the information coming out of the SMMT could be seen to some as misleading, especially when even the Prime Minister is mistaking ‘registrations’ for ‘sales’. Isn’t that a problem? No. We just declare registrations. We do list any pre-registrations under the terms of the Supply of New Cars Order, and I think last year there were around 2,500, which is 0.1 per cent of the market. I did take the opportunity to read your article and we did interview a number of manufacturers to get their view and the general consensus is that, from manufacturer level, pre-registrations are reported through the official channels. What happens among dealers is clearly a matter for dealers. How they choose to operate their businesses is clearly a matter for them.

Where will the areas of growth be? If we see increasing business confidence then that could see a further stimulus in the fleet market. It’s been a different number of years for many companies and many will have, perhaps, held off fleet replacement, so that might have an impact. Consumer demand is clearly there, and

I think we’re getting hooked up on the legal terminology for ‘pre-registrations’ and a dealer registering a lot of cars to hit targets. How can you explain 27 per cent of last September’s new cars being registered on the last day of the month? Invariably, you don’t know when large fleet

deals are done, and for manufacturers importing vehicles the supply of those cars might not be consistent across the month. These people operate to targets and they will choose to operate their business as they will. You can’t draw too many conclusions from a spike at the end of a month. In September alone two of the biggestselling car manufacturers registered more than 25 per cent of their month’s sales on the last day of the month – they’re not all retail buyers walking into showrooms, are they? Any pre-registrations would have shown up in the official records. Right . . . So, are you not concerned we’re misrepresenting what’s really going on to the wider public? No, I’m not. We’re declaring registrations and it’s always been done like that. That doesn’t make it right, though. A registration could be a car that’s just sat on a forecourt or in a field, but the SMMT is shouting that this is ‘great news’ and alluding to the fact sales are up. Isn’t that misleading? We’re talking about registrations, not sales. So do you think it’s time for the SMMT to hand over reporting of sales to a government body like the DVLA? They could show exactly where these cars have gone, as they’ll know if it’s a private buyer who has registered it or A N Other Dealer Ltd. It would still be a registration. It’s the DVLA that supplies the core data and we report that and analyse it. So did all those cars registered last year actually find homes? Well, they had to – that’s a definition of it being registered. I can’t speak for all dealers, but a dealer isn’t just going to buy a car just for the sake of it, he’s going to pass a car on to a consumer. OK, let me put it a different way. What happens if the media suddenly told the public not to CarDealerMag.co.uk | 13

INTERVIEW.

‘Undoubtedly more footfall is coming into showrooms’ buy new cars because pre-reg models are available and are better value? Surely that would damage the demand for new cars? That’s not a situation that would happen. We’re just reporting the registrations. Registrations are cars that are formally registered. There are a handful of cars that may be registered by a manufacturer but what a dealer decides to do is clearly their business. They are very adept at managing that business, and if they see a market opportunity in any shape or form I’m sure they would exploit that. At the end of the day, the model that we have is delivering increased registrations month by month, 22 months at that, and there is undoubtedly more footfall coming into showrooms. Your point about the new car market being one of the indicators the government looks to is correct, but it’s one of a basket of indicators and it’s certainly not just driven by ourselves. The continuous growth we’ve had definitely shows there has been an increase in confidence. I’m certainly not talking the market down and understand that dealers have to run their businesses, and the manufacturers too, but our concern is when the SMMT says PPI payouts are the massive driver of new car sales . . . We didn’t say that! It’s certainly one of the things the SMMT has said is a reason car sales are increasing, is it not? No, what we have been careful to say is that, given the level of PPI payouts, we would suggest the level of this means a large number of individuals are getting a substantial cheque and that has given consumers a decision as to what to do with that money. One of the options they have had is to spend it on a new car. You said you read our investigation into pre-reg in last month’s magazine, and in that piece Ford said ‘manufacturers will push sales, potentially leading to an increase in pre-registrations’. That’s the biggest seller in the UK saying pre-reg is happening, so why can’t the SMMT come clean? We’re not hiding anything. But we’d argue you are. You’re presenting the registration figures but you’re not saying who they’re being registered to. They are not all ��| CarDealerMag.co.uk

consumers buying those cars are they? They are registrations. They are not sales, they are registrations.

Well, if that’s the case then I suggest you speak to the RMI. That’s not information we would concur with.

But a registration means just that. It doesn’t mean it’s been sold to a consumer and is sat on their drive. However, the mainstream media doesn’t understand the difference and assumes they’re sales. Isn’t it your job to present the full picture? Why would a dealer basically register a car just to put on his forecourt?

So you don’t think there’s an issue with pre-registrations in the market and that everything is all rosy? I think the market is strong and I think the attractiveness of purchasing a new car is clearly driving people into showrooms. I think that is having a knock-on positive effect for the industry and for production, especially in the UK. At the end of the day, the consumer is probably better informed than they ever have been before and clearly they are deciding that the deals that are on offer are attractive and are driving people to purchase vehicles.

Well, we all know why they do that – to hit their targets. Since our article, we’ve had a huge number of dealers contact us to say it’s manufacturers bullying them into registering cars because the targets they’ve been given are unrealistic. Is the SMMT siding with the manufacturers? It’s not a case of sides. If you look at your article there was a broad consistency in opinion. No one actually said they thought pre-registrations were rife. If there was, point me in the direction of them. Suzuki’s Dale Wyatt said: ‘We believe preregistrations are fairly common industry practice’ . . . Doesn’t mean they are rife. But the dealers we speak to say they are and that they’re a problem because they’re being forced into them.

Have you got a message you’d like to give car dealers, especially those concerned about pre-registrations? I would just say that I think the market is strong. The fact customers are being drawn into showrooms means there’s a good opportunity there and that is a result of their effort in doing what customers want. [CD] What do you think? What’s really happening out there? Do you agree with Hawes or disagree? Let us know via email to james@ blackballmedia.co.uk, on Twitter @CarDealerEd or online CarDealerMagazine.co.uk/forum

AFTERSALES MANAGEMENT

We own this...

As a business, weâ&#x20AC;&#x2122;re surprisingly easy to put in a box. After 10 years in business and with a

2014 will see the release of a suite of three

proven track record of delivering innovative

new products that are set to revolutionise

automotive solutions, Progress Automotive

the aftersales management landscape,

and Responsive Digital have come together

across the independent garage, franchised

to form a new company: Razoom.

dealer and ďŹ&#x201A;eet marketplaces.

WWW.RAZOOM.COM CarDealerMag.co.uk | 15

DASHBOARD.

PPI payouts behind car sales surge? Tosh! Vertu Motors’ chief executive Robert Forrester writes exclusively for Car Dealer and explains the real reasons for the increase in the level of business

n the past three weeks, the BBC has used its highest-profile radio programmes to ventilate a theory about the growth of motor sales. It goes like this: With banks paying large compensation claims for PPI mis-selling, thousands of people have rushed out and spent their windfall on a new car, hence the motor sector is in clover. I have never heard such tosh. There are many more straightforward and logical reasons behind the stunning success of the motor retail recovery. They start with the recovery in the general economy (which some BBC reports prefer to sideline in case the chancellor gets too much credit!) and end up with the herculean efforts by motor manufacturers and retailers to change their offering to a public that wanted better value. Let’s examine the key facts. Before scrappage was introduced in 2009, new car sales had slumped to catastrophically low levels. Scrappage helped, but lasting growth has only been achieved in the past 22 months. According to figures from the Society of Motor Manufacturers and Traders (SMMT) published in January, 2.26 million new vehicles were registered in 2013, which is 10.8 per cent higher than 2012. In December alone, new car sales rose by almost a quarter, to 152,918, while 2013 was the best year for new car sales since 2007. By comparison, new car sales across Europe fell by 2.8 per cent in the 11 months to November 2013, putting it on track for a sixth straight annual decline. Now consider PPI compensation payments. According to the Financial Ombudsman Service (FOS), the average PPI payout is about £2,750. So far, the banks have paid out about £12bn, with banks expecting the total bill to be in the

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

region of £20bn. However, these payments have been spread out over around four years, working out at around a million payments per year. Given that the new car market has been rising for less than two years and has now reached two million per year, it is not right to make a direct connection. There are more rational explanations, the first being that confidence has returned to the economy. Whether the deposit for a car is paid for by PPI or somebody’s savings, they need the confidence to commit to a repayment schedule. The confidence has come about because the economy is growing, interest rates are low, and people are not afraid of losing their jobs. In fact, the numbers in work have increased by 1.2 million since the middle of 2010 and unemployment is lower than it was then – something the government’s critics resolutely refused to accept until recently. It is interesting to note that public policy has been quietly putting more money in people’s

pockets – the average taxpayer is paying nearly £600 less income tax as a result of changes to the threshold, the state pension has increased by £650 per year in cash terms, and fuel duty changes have led to a real-terms cut in the cost of filling up an average car amounting to £360 per year. But the most significant factor has been the record low interest rates. Even if rates were to rise next year by a small amount, we would still be living in a period of cheap money. Compared to historic mortgage rate trends, families are better off by thousands of pounds a year with these low rates. The amount saved on the average mortgage is around £1,000 per year for every one per cent rise in rates. Low interest rates have also helped to drive highly competitive and affordable finance deals on motors. Meanwhile, the industry can take pride in accurately predicting and serving customer demand. Manufacturers have introduced exciting, efficient new models with a range of options appropriate for modern living. They have done so whilst driving down prices in real terms. At the same time, the motor retail industry has got its act together. Nowhere in Europe is motor retail as sophisticated and customer-focused as in the UK. Dealerships are modern, bright, and efficient. The old-fashioned methods of highpressure sales have been replaced by friendly, customer-centred service of impeccable standards. BBC commentators needn’t flail around looking for reasons to excuse our success. It is not the banks’ PPI payments; it is down to a well-managed economy and a wonderfully co-ordinated motor sector. The Statistics, p82

Luxury car dealer sells mini Aston Martins for £16,000 bit.ly/16kAstons

MAZDA

‘First-rate 3 is very popular’

Maserati: We need to distance our network from Ferrari brand ITALIAN sports car firm Maserati is all set to embark on a programme of solus dealerships to give its customers a better level of service. At present, a large number of the dealers already in the Maserati network operate as a dual franchise with Ferrari. But the relationship with the Italian supercar maker is causing problems for Maserati customers, believes the firm’s regional manager for North Europe, Peter Denton. ‘We have a couple of issues relating to our relationship with Ferrari,’ he exclusively told Car Dealer. ‘Very often the image we give to the customer is almost intimidating – particularly if the rest of the showroom is made up of cars that cost at least £130,000. ‘There’s a concern that, particularly as we lower our price point with the new Ghibli, that a customer could be treated as a second-class citizen

AA CARS

Warning over flood damage USED car dealers have been warned to watch out for flood-damaged vehicles arriving at their businesses. AA Cars says waterdamaged cars may end up in the hands of unwitting dealers and buyers. The AA’s flood rescue team has now rescued more than 3,000 cars from flood water since December 20, with many of them 4x4s. And there are fears that many owners may be tempted to pass their vehicles on rather than make an insurance claim.

by JAMES batchelor @JRRBatchelor by a salesman who’s more used to a customer paying far more for their car than “just” £50,000.’ Denton explained Maserati UK is embarking on a large project to appoint new dealerships in order to make the brand appeal to new customers. Maserati recently appointed new dealers in Glasgow, Cardiff, Peterborough, Oxford, Maidstone and Blackburn. But, by 2015, Denton wants the company to have 30 dealerships and for each site to be within a 50-minute drive of its core customer base. Ideally, Denton wants Maserati to have the right network for its customers – in both size and feel. ‘The Ferrari network is suitable for supporting the Ferrari network and positioned perfectly for their

customer base,’ he explained. ‘We need more outlets and we need to be positioned far closer to the communities that can afford a Maserati. It’s a natural path for us to increase our representation separately from Ferrari.’ Denton was adamant that he has no bad feelings towards Ferrari – he’s just concerned about the how relationship is viewed by Maserati customers. He said: ‘We’re not trying to distance our relationship with Ferrari. ‘But there’s no getting away from the fact that there are negative connotations for someone new to the brand who’s standing outside this dark-tinted showroom. Those who are brave enough to take the step inside – and I mean that in the nicest possible way – are pleasantly surprised.’ First drive: Maserati Ghibli, p36.

SsangYong promises to ‘bounce back’ in 2014 AFTER recording a drop in registration figures in 2013, SsangYong UK says it will ‘bounce back’ this year. Speaking exclusively to Car Dealer, SsangYong Motor UK CEO Paul Williams said towards the end of 2013, the brand hit a low point. Stock of its best-selling 4×4

Korando began to run out and production of the Rodius came to an end, causing registration figures to drop. However, this year Williams has reassured dealers that for the first time, SsangYong will benefit from a full model range as well as significant growth in its network. He said: ‘We’re in a much better place this year. Already this month we have sold approximately 65 models of the next generation Korando in comparison to just 38 last year. At the end of 2013, we were going through a transition period. Now, we’re heading into 2014 with a full model range and the aim to expand our dealer network.’ First drive: Rexton W, p42

SALES of the new Mazda 3 are exceeding all expectations. January sales were 33 per cent ahead of forecast and total orders since launch on January 3 are approaching 1,500, again ahead of forecast. ‘The new model is first rate and is proving extremely popular,’ said Paul Brayley, dealer principal at Hertfordshire-based Brayleys Mazda, who has represented the brand since June 2012. Brayley said Mazda’s Skyactiv models are proving to be easy to understand by customers. ‘It is a simple concept, if a car is lighter, fuel consumption will improve,’ he said.

JCT600

Fleet division powers ahead DEALER group JCT600’s fleet division has recorded a 28 per cent year-on-year growth in the last 12 months. During 2013, the Bradford-based business – run by John Tordoff, pictured – sold 11,200 vehicles, worth around £200m, and its volume and prestige fleet operations secured a number of new contracts. ‘The growth is part of an ambitious five-year strategy which includes establishing ourselves as the fleet dealer of choice locally, regionally and, long term, nationally,’ said Neill Richards, fleet sales director of JCT600.

MITSUBISHI

New additions to the network TWO new Mitsubishi dealerships are opening during February, as the franchise continues to increase its reach across the UK. GMD Mitsubishi is opening in Finchale Road, Durham, while Autoecosse Mitsubishi is in business in a newly refurbished old showroom and aftersales facility in Kingsway East, Dundee. CarDealerMag.co.uk | 17

WE BELIEVE

BETTER VALUES WORTH ARE STILL

FIGHTING FOR

In a study of the last 9 months*, each month we have been more accurate than the competition at valuing the top 100 selling cars. See for yourself at: www.GLASSBUSINESS.co.uk/wevaluebetter or call 01932 823 824.

*Where we have data available

We Value Better ��| CarDealerMag.co.uk

DASHBOARD.

From page 3 to part-ex New Sun Motors site ‘will be giving dealers access to 12 million readers every week’

ews UK has launched a new advertising portal called Sun Motors. The site is currently in beta testing and follows on from the launch of Driving.co.uk powered by The Sunday Times. The fact News UK is launching a second advertising portal – to rival the likes of AutoTrader.co.uk and Motors.co.uk – is an interesting move and one which will shock many in the industry. The site currently displays more than 31,000 cars, considerably less than more established rivals, but it’s an impressive starting point nonetheless. What’s more, with daily newspaper publicity from The Sun – a title which reaches more than 6.7 million people a day and is read by 13.2 per cent of the adult population – it’s likely the site could gain traction quickly. Sun Motors says: ‘Welcome to the new Sun Motors website, the UK’s number one site for used car sales and the best motoring journalism. ‘We’re listing thousands of used cars from trusted dealers throughout the UK. And we’ve developed a new way of searching for your perfect car at a perfect price.’ The site goes on to say that in the next few weeks the inventory of cars will ‘increase considerably’ and explains that is currently in a ‘beta phase’ for testing. With big names like Jeremy Clarkson and Ken Gibson writing for the site, content is likely to be key to attracting users. Sun Motors says dealers will be offered a range of advertising options to suit different budgets. The site looks well laid out and has a number of different search options too. David Dinsmore, editor of The Sun, said: ‘Echoing The Sun’s brand and world-class motoring content, Sun Motors is completely in tune with our readers. Consumers want to know

by JAMES BAGGOTT @CarDealerEd they can trust the information supplied about a used car and Sun Motors is a one-stop shop where they can read informative reviews and seek expert advice before parting with their hardearned cash. Unlike other classified ad sites, the fully-responsive new website means you can use it on your mobile, tablet or desktop.’

Like sister site Driving.co.uk, The Sun says it will offer a pay-on-performance model, where dealers will only pay for qualifying leads delivered via phone, email and Live Chat. There will also be a free introductory period until May 31. Jim Murray-Jones, general manager of News UK Automotive, added: ‘We will be offering an impressive range of vehicles and giving dealers access to the 12 million people who read The Sun every week.’

‘We want to bring something unique to the market’ THE man behind the Sun Motors website hopes it will bring the personality of the paper to life on the classified advertising website. In an exclusive interview with Car Dealer, Jim Murray Jones said he believes Sun Motors, which launched recently in beta form, will bring something ‘truly unique’ to the car classified advertising market. Murray Jones – who worked at Auto Trader for seven years – said The Sun’s ‘household name’ will be a powerful tool as they bring the new site to life. ‘We were aiming to launch with 20,000 cars and today we have 30,000 listed so we’re pretty pleased with that,’ said Murray Jones, general manager of News UK Automotive. ‘By the middle of February we expect to have 100,000 cars on the site from our dealer partners.’

Have your say on this story. Get commenting by logging onto CarDealerMagazine.co.uk/forum Murray Jones said the site’s two different ways for searching for a new car would also mark the site out as different in what is rapidly becoming a crowded marketplace for dealers and consumers. He said: ‘Search on classified sites has remained the same for a long time. Until recently it was all about make, model and price – which is fine if you know what you want, but now the market is a lot more crowded. ‘We offer the traditional search option but also a lifestyle search where those people who know little about what they want can search using different parameters.’

The Sun Motors website will aim to become a ‘household name’. The site lets consumers find a car by colour, economy, tax band or optional extras. Of course Sun Motors isn’t the first here as Motors.co.uk has recently rebranded and relaunched its site with its ‘Carfuffle’ TV campaign and new search options. Murray Jones added: ‘We will be ramping up the functionality of the site over the next few months. We will be adding expert reviews from our pool of journalists and owner reviews. ‘The Sun is known as the consumer champion and we plan to highlight the big motoring issues in much the same way,’ said Murray Jones. ‘We believe Sun Motors will be the right match for consumers and dealers and we’re very excited to be launching it.’ CarDealerMag.co.uk | 19

DASHBOARD.

We can help YOU get your message across Why not get involved with our great new dealer public relations service? It’s simple, straightforward, and could win you some valuable publicity. Blackball Media’s head of PR, MAL HAY, explains more...

or me, there’s never a more depressing sight than a static display of new cars outside a supermarket. We’ve all seen it... a handful of garishly-stickered vehicles shoehorned into the tightest gap by the trolley bay and simply abandoned for a few days. Sometimes they may be adorned with a few haphazardly-placed balloons for a bit of added razzle-dazzle (yes, I am being ironic) but that’s about it. There’s never a salesman on hand to chat to passers-by and take their details and, despite the effort involved in co-ordinating a promotion like this, there’s seldom any means of data capture and hardly ever anything as helpful as a QR code. Sure, the footfall must be fantastic; literally thousands of potential customers must walk past every day. But, come on, how many really stop to look, let alone bother to jot down the dealer’s details and pay a visit to the showroom? It’s lazy, ineffective marketing at its worst and it’s all the more frustrating because there are so many other ways a dealer can get their message out there and reach a whole new audience. PR, for example, should be just one part of any good dealership’s overall ‘marketing mix’ and is a very cost-effective tool that can work wonders

for a business, generating positive publicity and coverage of far greater value than traditional advertising. And there’s no excuse for not using PR. Every dealership, no matter how small, has some story to tell or can create one with a little creative thinking and absolutely no outlay. What’s more, while most manufacturers these days offer franchised dealers some sort of dealer

PR programme, even independents can get in on the action. PR can be surprisingly affordable and it’s dead easy too. One simple phone call or well-written press release could be all it takes to secure moneycan’t-buy publicity in the press and, if the story’s good enough, coverage on radio, TV and even the national media too. And let’s not forget social media. If that sounds good – why not give Blackball Media a call to chat through the options? Whether you need a one-off press release or an ongoing PR campaign to build your reputation and visibility, our experienced PR team is here to help make the process as simple and hassle-free as possible. They can identify any potential stories you may have, or work with you to develop ideas that will work for your business and deliver the results you’re looking for. After that, they can research and write any press releases or editorials, co-ordinate any supporting photography or video, distribute your story to relevant media outlets and liaise with journalists on your behalf. It really couldn’t be simpler. So, to find out more or discuss any specific PR requirements you may have, call Blackball Media now.

BLACKBALL MEDIA DEALER PR: YOUR QUESTIONS ANSWERED What is it? A press release service for those dealers that need to talk to their local media, but don’t have an agency to help. Blackball Media – publishers of Car Dealer Magazine – has joined forces with Newspress, the leading motoring press release distribution agency, to offer dealers a costeffective solution to their press release needs. What is a press release? It’s a document that tells your local newspaper, radio stations and other media outlets about your good news. Have you just managed record sales? Have you sold a car to someone famous? Have you had a customer just buy their 20th car from you? Has your team done something for charity? Do you sponsor the local football team? All are simple examples of great PR stories. This service will help get that message out to your local press. ��| CarDealerMag.co.uk

Why would you want to do that? Because PR is worth far more than an advert. They say editorial in your local paper is worth 10 times that of an advert – people read the editorial and take it in far more than an advertisement. So, by spending a bit on having a press release written and distributed on your behalf could return far more in terms of media value or coverage than taking out that usual quarter-page advert would. How does it work? If you think you’ve got a story then you simply get in touch with the team. They’ll then take over, talking to those in your company who know the details, they’ll write the release headed up with your logo and contact details, send you a proof and when you’re happy, distribute it via Newspress’s proven distribution system.

What is Newspress? Newspress has been distributing press materials for the motor industry for 40 years. 100 per cent of UK motoring press, from regional motoring writers and broadcasters to the national motoring magazines and newspapers (including the editorial team at Car Dealer Magazine) use Newspress on a daily basis. And 100 per cent of manufacturers in the UK, from Alfa Romeo to Volvo use Newspress, which has a subscribing media audience in excess of 30,000 users and maintains a bespoke database of around 50,000 journalist contacts. How long does it take? Press releases can be produced in as little as a couple of hours. Once approved, each release will be published on newspress.co.uk and distributed at the appropriate time or date by Newspress to a

‘It worked for me and it can work for you too!’ UMESH SAMANI, owner of Specialist Cars, Stoke-on-Trent, said he was delighted with the service. We prepared a release about his fifth placing in our recently-published list of the motor trade’s top 100 Twitter users. Umesh said: ‘I found the whole process straightforward – and the results were very impressive. A Blackball Media writer contacted me for some information and I was sent the finished article for approval before it was distributed to my local papers and other media outlets. I had already featured on the Car Dealer website, as it was a Car Dealer survey, but after the PR team became involved I appeared on the Midlands Business News and Dealer Update websites. ‘I also featured in my local paper, the Sentinel, which sells more than 40,000 copies a night. My story became a real talking point and the extra publicity really helped to raise my profile. ‘I’d certainly advise anyone wanting to hit the headlines to get Blackball Media on board. ‘I’m sure they achieved wider coverage than I could have done, and by letting them take care of everything, I was able to continue to focus on my business.’

targeted audience of journalists and broadcasters relevant to your story. Once published, your releases also stay on Newspress for ever (unless you ask for them to be removed) creating a living archive of materials for your business. How much does it cost? A standard release, one side of A4, with comment from your team will cost from as little as £200, less than a quarter-page advert in the local paper. What about pictures? The Blackball Media team can provide a costeffective solution for your photographic needs too. Local papers love good-quality pictures so it may be worth considering having photography to accompany your release. A special discounted rate of £125 per shoot, plus travel expenses, is available to those utilising the press release service.

Dedicated PR support all year round A 12-month subscription offer is also available which brings with it savings and extra benefits. Our Dealer PR team will produce one bespoke press release for you per month and distribute it to the local and national media. You will get access to one dedicated photography session per year and a half-price rate for photography to accompany any of your press releases throughout the year. Your 12-month contract will kick off with a visit from one of our PR professionals to introduce you to the service and help find those gems of stories. The 12-month contract cost is just £150 per month. Video support Those dealers on 12-month contracts will also benefit from discounted video support from the Blackball Media team. They will get access to a

25 per discount on a video introduction to your dealership which usually costs £1,000, but is available to contracted dealers for just £750. Social media support Blackball Media’s PR team can also help dealers set up and run their Twitter and Facebook pages. For a one-off fee of £125 a member of the PR team will visit your dealership and set up your accounts and train you and your team on how to make the most of it. This offer is only available to dealers signed up to a 12-month Dealer PR contract.

To find out more, call us now on (023) 9252 2434 CarDealerMag.co.uk | 21

��| CarDealerMag.co.uk

SURVEY.

You’re telling us and we’re listening Car Dealer Power 2014 has got off to a great start with hundreds of dealers filling our survey form in. The search is on for the best suppliers and manufacturers to represent

t’s only been four weeks since we launched Car Dealer Power 2014 but already we have received some 100 survey entries. If you haven’t filled out the survey yet, read on to find out why you should be getting involved.

What is Car Dealer Power? NOW in its fifth year, Car Dealer Power firmly puts you, the dealers, in the driving seat and gives you the chance to tell manufacturers and suppliers exactly what it’s like working with them. It’s your opportunity to recognise the very best companies that help you do business. Car Dealer Power is the survey which aims to find the best car manufacturer in the UK to represent by quizzing its dealers about how it performs on a variety of levels. Last year, Toyota just pipped Kia and Hyundai to the top gong. Suppliers feature just as prominently as the manufacturers, and for 2014 you’ll see there’s ample opportunity to name the suppliers you like to do business with. We’ve split a number of the categories up to give the smaller firms more chance of recognition in these important awards, and this year we’ve added Tyre Provider of the Year, Motor Factor of the Year and Trade Insurance Provider of the Year to the list of categories. We want you to rate the firms you use in all areas of your business so we can celebrate the very best – and invite them to our special Car Dealer Power Awards night to be held in August.

WHY SHOULD I FILL IT IN? WE know for a fact that manufacturers and suppliers take your views very seriously and have made changes on the back of your comments. Don’t be worried about any repercussions as Car Dealer Power is 100 per cent confidential – we don’t even ask for your name, only your mobile phone number so we can let you know if you’ve won a prize. We want to know the good and bad things about what it’s like to represent your car manufacturer, so please feel free to give the most honest opinions possible. Filling in the Car Dealer Power survey shouldn’t take longer than a few minutes. You can do it by logging onto CarDealerPower.com – it’s very straightforward and shouldn’t take a few minutes. And if you want to be in with a chance of winning one of the prizes, don’t forget to add you mobile number. The deadline for submitting your survey is June 30. But remember – surveys need to be at least 50 per cent complete to count. One small tip, though – we advise all suppliers and car manufacturers to ask their clients and dealers to fill in the survey.

Awards Night AS in other years, we will be holding an awards night for the winners of Car Dealer Power. Once voting is closed we’ll notify the lucky companies who need to book a place at our event. But until then, get voting!

Toyota took home the ‘best manufacturer’ trophy last year

The bribes: Fill in the survey and you could win... Suzuki Goody bag

This latest rucksack from Suzuki is packed with goodies, all of which will keep you warm in these winter months.

WRC Rally Jacket

Why not turn up to work in style, with a Citroen rally jacket. It’s the perfect way to show your support. It’s worth £100!

MINI GOODIES

As well as a cap, pen, notebook and a t-shirt, this goodie bag comes with a limited edition Mini Plant Oxford book.

TV’s Mike Brewer book

The perfect gift for a fan of the Wheeler Dealers TV show. Mike talks you through buying and selling modern classics.

Mercedes NAIL KIT

Ladies, why not spruce up you nails with this fantastically glamourous nail polish set from Mercedes-Benz.

Wonder Wheels KIT

Whether it’s for your stock or your own set of wheels, this luxury kit will get your car’s wheels looking like a million dollars.

Car Plan Valet Pack

Are your cars looking a bit sorry in this winter weather? Bring back the shine with Car Plan’s Auto Finish.

Fill in the survey NOW online at CarDealerPower.com CarDealerMag.co.uk | 23

DASHBOARD.

Plan for the future at FREE Car Dealer Conference 2014 C

ar Dealer is planning a better-than-everbefore programme of events for dealers this year – and arguably taking the top spot is the Car Dealer Conference. Further on in this magazine, you will have the chance to read exactly what the country’s top manufacturer bosses and automotive suppliers think the next 12 months have in store – but how can dealers act upon this and get ahead of the competition in the next few years? Step forward the Car Dealer Conference 2014. Branded 2020 Vision, this year’s FREE-to-attend Conference will be held at the Heritage Motor Centre, Gaydon, on Friday, June 20. The conference will be taking a look at how the motor trade will evolve over the next six years – and how dealers can prepare for it. The general feeling within the motor trade of the next six years future is positive, but the Conference will explore the reasoning behind the optimistic mood and why it is important for dealers to act accordingly.

��| CarDealerMag.co.uk

Planning ahead and looking forward is a crucial part of what we all do – and this year’s Car Dealer Conference will help YOU get ahead and stay ahead. And it’s FREE!! With inspirational and motivational speakers from the trade, our delegates will leave the day having benefited from learning something new and useful that they can take back to their businesses and implement the next day. This year we will have a number of not-to-be-missed speakers from the automotive industry and beyond. Confirmed as this issue went to print are Google, YouTube and the president and CEO of Kia Motors UK, Paul Philpott – and more are being signed up. We have chosen these speakers as they have a unique insight and view on the future of automotive retailing. Along with the day’s speeches, attendees will also have the chance to explore the Car Dealer Expo. The Heritage Motor Centre’s exhibition hall

will be taken over by a large number of exhibitors who will be on hand to chat about the products and services dealers need now and in the future so they are not left behind. During the day, there will be plenty of time for attendees to visit each of the suppliers’ stands and talk business. Refreshments will be served at arrival and during the day, and a buffet at lunchtime. This is a must-attend event for any business who wants to talk to forward-thinking dealers. The day will be focused on the future of the industry – if you want to make sure you are part of it then make sure you are there. Register for this FREE-to-attend event now by logging onto bit.ly/conference 14 To take part in Car Dealer Expo, call 023 9252 2434.

Reasons

Why you should be attending the 2020 Vision Conference

CarDealer

Leading speakers

Speeches from a wide variety of sectors, from Google to Kia.

It’s free

Held at the Heritage Motor Centre, Gaydon, on June 20 2014, the whole day is free to attend.

Top ideas

You’ll be able to take away some great ideas for your business and colleagues on how to plan for the future.

Free lunch

Enjoy a delicious buffet lunch and refreshments during the day.

Expo

You’ll have the chance to wander around the largest exhibition of trade stands we’ve ever organised.

CONFERENCE 2014 Speakers confirmed so far: Google, You Tube, Kia Motors UK

BOOK YOUR FREE TICKET NOW: GO TO BIT.LY/CONFERENCE14

CarDealerMag.co.uk | 25

DASHBOARD. Showroom attacked by man with an axe A MAN attacked a car showroom in Henlow, Bedfordshire, with an axe after deciding that the Porsche he bought from the dealership a decade ago was no longer any good. According to BBC News, James Hyett, 33, of Bromfield, Saffron Walden, had previously been in trouble with the law after leaving a severed deerâ&#x20AC;&#x2122;s head at a Tesco store. However, while serving a suspended sentence for that offence, he headed over to Henlow Car Sales armed with an axe and a knife, and attached a BMW. Hyett had claimed that Henlow Car Sales had not compensated him for problems with a car he had bought. Luton Crown Court imposed a two-year community order, with a requirement that he undergoes mental health treatment.

Dealership plagued by bird poo problem Manager: â&#x20AC;&#x2DC;You laugh about it but itâ&#x20AC;&#x2122;s not goodâ&#x20AC;&#x2122;

taff at a BMW dealership in Guildford are having to clean dozens of cars a day in order to tackle a bird droppings problem caused by a waste site next door. In order to combat the issue, new nets will be installed at the waste facility to help prevent businesses like Vines of Guildford from being plagued by bird poo. The Mini dealership and body shop have been victims of the bird droppings for many years, but staff are questioning whether or not the nets will be enough to stop the flock of seagulls that circle the area at Slyfield Industrial Estate. According to the dealership, itâ&#x20AC;&#x2122;s not just bird droppings causing the problem. Members of the sales team have also reported food waste falling from the sky. John Rush, workshop manager at

Vines of Guildford, told Get Surrey: â&#x20AC;&#x2DC;We probably clean a dozen cars a day, and each time a customer comes in we have got to go out and wipe the poo off before we give them back. â&#x20AC;&#x2DC;Itâ&#x20AC;&#x2122;s just not an ideal situation. â&#x20AC;&#x2DC;Itâ&#x20AC;&#x2122;s a health issue for us because we sometimes go out quickly, get a cloth and wipe it off, and we have to go in and wash our hands again. The young sales girl was out there with a customer and a chicken bone came down. You can laugh about it but itâ&#x20AC;&#x2122;s not good.â&#x20AC;&#x2122; Food waste is delivered from Surrey households throughout the week, and the dealershipâ&#x20AC;&#x2122;s valets have to constantly clean the cars as they become covered in rubbish from the hundreds of seagulls. Rush added: â&#x20AC;&#x2DC;Until they get the netting on we wonâ&#x20AC;&#x2122;t know, but I donâ&#x20AC;&#x2122;t think itâ&#x20AC;&#x2122;s going to change things.â&#x20AC;&#x2122;

TRADER MEDIA

Non-car sites join main Auto Trader brand in reshuffle TRADER Media, owner of Bike Trader, Van Trader and Motorhome & Caravan Trader, has announced that it is bringing all three offerings under the Auto Trader banner. As revealed in last monthâ&#x20AC;&#x2122;s Car Dealer, the move comes as the company aims to simplify its offering to dealers. Each of the non-car sites will now link directly from the Auto Trader homepage and will use the new Auto Trader brand logo, launched in December last year. The new structure marks the first time in the groupâ&#x20AC;&#x2122;s 37-year history that the four brands have operated from under one brand name.

XXX EFTQFSBUFTFMMFS DP VL ] XXX GBDFCPPL DPN EFTQFSBUFTFMMFS DP VL ] UXJUUFS DPN EFTQTFMMFS

ďż˝ďż˝| CarDealerMag.co.uk

Human remains found at disused dealership bit.ly/bodyatdealer

Around the world Dealer news from somewhere other than here

GERMANY

General Motors will build a brand new Opel model at its Ruesselsheim plant later this year. The new car will be built in Germany as part of an effort to restore earnings in Europe. CEO Mary Barra said production of the new vehicle will support its additional spending in Germany and that she’s very pleased with Opel’s progress so far.

ASIA

More than a third of the global total of cars produced in 2014 will be manufactured in AsiaPacific region, which includes China, India, Thailand and Indonesia. Asia’s production figures of 30.21 million cars in 2014 will nearly double that of carmaker North America, which will build 17.3 million vehicles this year.

MEXICO

Car production and exports in Mexico rose last year to reach record highs, due to strong demand from the United States and Canada. Production increased by 1.7 per cent to 2,933,465 units while exports rounded up to 2,423,084 units – an increase of three per cent over 2012. Data has revealed that the increase marks the fourth consecutive year of record results.

FRANCE

Car sales in France dropped slightly in January after recording an increase of 9.4 per cent in December last year. According to Renault’s head of sale in France, the French market is expected to remain stable throughout 2014, but speaking at a Renault dealers’ event, Bernard Cambier said that sales were down by three per cent in January.

ITALY

Fiat’s CEO, Sergio Marchionne, who has now taken full control of the Chrysler Group, wants to move Fiat’s 115-year-old headquarters out of Italy. While Marchionne said a New York share listing isn’t out of the question, according to Automotive News, the new company is likely to be based in Europe under a tax-efficient UK domicile.

CarDealerMag.co.uk | 27

FINANCE. partnership

Online finance fraud could be gone forever CARFINANCE247.CO.UK is tackling the issue of finance fraud head-on by partnering with consumer credit expert Equifax. The firm has integrated Equifax’s Identity Verifier solution into its application processes, giving it vital additional protection against online fraud and protecting the interests of its network of car finance lenders. As the online market has developed over the past few years, the motor finance sector has found itself particularly vulnerable to fraud, says Carfinance247.co.uk. Any criminal who had something as simple as a stolen driving licence could potentially apply, and get approved for, car finance. ‘While we have always carried out stringent checks on the identity of anyone who applies for car finance through our website, sadly identity fraud was still a problem for our business,’ says Louis Rix, director at Carfinance247.co.uk. ‘The benefits to our business have been significant. We are making a large cost saving on checking the identity of each applicant and we are able to work more efficiently, meaning our customers and lenders receive an even better service.’

��| CarDealerMag.co.uk

Point-of-sale credit is still a popular option – and there is optimism for the future FLA: Number of used cars bought using dealer finance in 2013 highest since 1999

ustomers are still opting for the finance route, new figures from the Finance & Leasing Association (FLA) show. Some 74.2 per cent of private new car sales were financed by FLA members in 2013, up from 71.2 per cent the previous year. Consumer new car finance and consumer used car finance volumes grew by 20 per cent and 16 per cent respectively in 2013. The number of used cars bought by consumers using dealer finance, at more than 915,000, was the highest since 1999. In December, consumer used car finance volumes were up 32 per cent (to 62,640) compared with the same month in 2012 – the strongest monthly rate of growth in 2013. Consumer new car finance volumes grew by 23 per cent to 50,461 over the same period. Paul Harrison, head of motor finance at the FLA, said: ‘Our latest figures show just how important

consumer credit is to the wider economy, with strong growth in demand for point-of-sale car finance in 2013. Customers are continuing to take advantage of competitivelypriced, responsibly-provided credit which is secured against the car. ‘With regulation of consumer credit moving to the Financial Conduct Authority in less than two months, it is absolutely vital that lenders and

dealers make sure they have the interim permissions they need to continue doing business after April 1.’ Meanwhile, consumer finance new business grew by six per cent compared with 2012 to £62.3bn. The FLA says the growth was partly driven by a strong performance in the second charge mortgage and point-of-sale markets, with increases of 37 per cent and 19 per cent respectively.

Close Motor Finance smashes £25k target for charity BEN CLOSE Motor Finance has raised £25,000 for automotive industry charity BEN as part of the company’s 25th anniversary. At the beginning of February, the charity’s chief operating officer, Nigel Rothband, was given a cheque for the full amount. For the whole of 2013, Close Motor Finance worked with its employees and dealer partners to hit its target of £25,000. Lots of different activities

took place over the past year, including 25km walks, bake sales, chest waxes, dress-down days and bike rides, with every activity helping it edge closer to the target. James Broadhead, Close Motor Finance managing director, said: ‘I’m thankful to all our employees that have got behind the cause wholeheartedly. In particular, I would like to thank all of our dealer partners

who have got involved in various ways throughout the year.’ Rothband added: ‘It’s been fabulous to form such a great partnership with Close Motor Finance over the past year and long may it continue. ‘We have a lot of exciting things planned with the money they have raised from the fundraising work they’ve done in 2013 with their staff and dealers.’

..in association with

DEALFINDER.

Latest finance deals on small load-luggers

Meldrum

FORD B-MAX

Straightforward answer

FORD’S B-Max Zetec is now available for just £159 per month. For the 1.4-litre Zetec, buyers can benefit from a £750 deposit allowance when financed with Ford Credit and will have a 23-month payment period

with a 4.2 per cent APR representative rate. The B-Max comes with free metallic paint and free Ford SYNC with emergency assistance. It’s also well equipped as standard, with halogen projector headlights with LED daytime running lights, a Quickclear heated windscreen, an adjustable boot load floor and Ford Accident Management. The B-Max is best known for its missing B-pillar, making clambering in and out of the car that bit easier. It has already proved to be a hit for Ford dealers, with many family buyers plumping for the B-Max.

NISSAN NOTE NISSAN’S new Note Visia is available from as little as £129 per month. Nissan offers a £500 deposit contribution as well as three years’ low-cost servicing at £199, three years’ pan-European roadside assistance and one year’s free insurance. The deal is based on a three-year, 6.9 per cent APR representative across a 37-month payment period. The little Note comes with a 1.2-litre engine, which is mated to a five-speed manual gearbox. It has a combined average fuel

consumption figure of 60mpg and releases just 109g/km of CO2. The Note comes well-equipped with features such as Bluetooth connectivity, cruise control and 15-inch alloys.

KIA VENGA KIA’S Venga is now available on a zero per cent APR representative finance deal. For the supermini with the space of a larger car, customers will need to pay just

£145 per month across a 36-month payment period. Customers will also save up to £1,600 on the £9,995 Kenga and can benefit from a seven-year warranty to ensure peace of mind on the road. It comes with 15-inch alloy wheels, front electric windows, USB and auxiliary ports, and Electronic Stability Control for added safety. The 1.4-litre EcoDynamics Air has a combined fuel consumption of 50.4mpg and emits 130g/km of CO2.

time is money

hy is non-prime finance still important when the economy is improving? This is a straightforward question with a straightforward answer: because the number of people who can easily access high-street lending facilities is still decreasing. During a recession, the number of people who are deemed acceptable for car finance by the high street lenders and their subsidiaries goes down considerably and can remain down for many years after the experts eventually agree that the recession has finally ended. So this means that being able to offer non-prime finance is likely to be important to your business for a very long time to come. I know that there are a few car dealers who still cannot see or refuse to even look at the benefits of providing non-prime finance to their potential customers for fear of having their brand tarnished. All too often, many car dealers simply send their unaccepted finance applications to credit brokers because they see it as being easier and less hassle than working directly with the actual lenders themselves. And these may be costly mistakes. When you work in partnership with First Response you’ll become aware of our sense of urgency matched with an exceptionally high level of customer care that’s the envy of many well-known banks. You’ll enjoy having a dedicated account manager who will provide all the help that you could ever need. You’ll very quickly see that we are far more than just another finance company, and that we actually want to support you and your customers to complete the purchase of a new car. And finally, you’ll be guaranteed to sell many more cars and you’ll undoubtedly take market share away from your competitors. Remember, you can contact us any time for impartial advice, but don’t leave it too late.

‘We are far more than just another finance company’

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 | 29

01273 767651

more happy customers than ever before... As we are in an ever increasing computer based industry Motor City decided that we needed to get to the top of the game, we were recommended Spidersnet by a colleague and have never looked back. The initial set-up was painless and LMÄ JPLU[ [OL KLZPNU VM [OL ^LIZP[L ^HZ MHU[HZ[PJ HUK TVKLYU HUK [OL Z\WWVY[ ^L are receiving on a daily basis from Margot, Jo and the team is second to none. I look forward to working with them into the future. Matt Green, Motor City Plymouth

Here at Spidersnet, we thought that we would give this page back to our customers. Unfortunately we couldn’t fit you all on here, so we are sorry if we’ve missed you out! Since moving over we have seen a big difference in the responses we are getting from our customers and the feedback we receive about the site is fantastic. In fact we get comments most weeks now about our site. If you’re looking to change your website I would say Spidersnet are the company to contact. Mark Duncan, Continental Leisure Vehicles Ltd Having returned to Spidersnet after a two year gap it was refreshing to deal with H JVTWHU` [OH[ W\[Z P[Z JSPLU[Z YLX\PYLTLU[Z Ä YZ[ >L OH]L ZLLU HU PUJYLHZL PU enquiries with our new site and the number of visitors per day is higher than we could have expected. The feedback from both our staff and customers has been L_[YLTLS` WVZP[P]L HUK V\Y UL^ ZP[L PZ KLÄ UP[LS` OLSWPUN [V PUJYLHZL ZHSLZ Ian Mounch, PDH Cars Just want to say a massive thank you for doing such a great job on my website. 0 HT WHY[PJ\SHYS` PTWYLZZLK ^P[O [OL LMÄ JPLU[ ^H` `V\ KLHS ^P[O MHPYS` MYLX\LU[ changes that I request. Alan Wileman, Brookland Cars In December 2011 Spidersnet created us a brand new website and instantly had a great impact, with better usability, enhanced features and a much higher Google search ranking. Since then it has gone from strength to strength, with many customers of ours commenting on how good are website is. Their workshops are brilliant as well, we have learnt a great deal which has developed our \UKLYZ[HUKPUN HUK THKL \Z TVYL LMÄ JPLU[ ^OLU ^L ^VYR VU V\Y ^LIZP[L Daniel Over, Pevensey Bay Car Centre

don’t take their word for it - see for yourself. Call 01273 767651 ��| CarDealerMag.co.uk

big mike.

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

Bikinis, bonuses and a transporter load of unsaleable cr*p

uch has been said in recent weeks about the practice of pre-registration, heightened, no doubt, by the news that the 2013 new car sales figures are allegedly an indicator of heady economic growth. Like many of you, I do hope that the economy really is on a stronger footing. It’s certainly been harder to do business over the past few years. I’ve sold just as many cars, but I’ve seen my margins eroded and my customers squeezed to the point where they, much like their own employers no doubt, are expecting a hell of a lot more for a lot less cash. Recovery, then, can’t come soon enough. But preregistration is far from a new phenomenon. Indeed, it’s been going on for as long as I’ve worked in this industry. Pre-reg cars have always been bargains for new car customers, at least in the way that a new car can be considered a bargain (remember, my typical stock-in-trade these days is a nine-year-old Volvo estate). Several thousand pounds off can be enough to get even the most frugal of customers through the showroom door, and if a dealer has bought the vehicles in a pack, chances are there’s quite a bit of wiggle room in his margin, and he’ll give the thing away at cost if it has counted towards his volume bonus. I’ve been there myself. As regular readers of this column may be aware, back at the time of the last big recession in the early Nineties, I was a sales manager at an established Fiat Group dealership in the Midlands. At the time, as now, small cars were big news. And small cars are, and always have been, something that Fiat is very good at. Recession or not, I could sell Pandas, Unos and even those funky little 126s with the engine in the boot with my eyes shut. But Fiat’s ability to make great small cars was matched only by its inability to make a half-decent bigger one. The Croma, the Regatta and the Tempra(mental) required divine intervention to realise even a smidgeon of profit, and to compound matters, we were also obliged by the terms of our dealer contract to flog Alfa Romeos and Lancias. Against a struggling economic backdrop, that was harder than trying to sell leather jackets to vegans, though on the plus side it meant I had a nice Integrale as my company car . . . Like all good pre-reg deals, the smooth also came with the rough. For every 10 Unos we ordered, we had to take a Tempra, a Croma and one each from the Lancia and Alfa Romeo stable, though these latter two often found their way into the hands of dealership

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

management. The level of depreciation was so steep that, even buying them at 50 per cent of list, you were lucky to turn anything over other than your outlay, so we used to look upon them as fixed costs and run them ourselves. The problems started, though, when the incentives started to get more attractive. Our dealer principal, who was a man devoid of principles altogether, got wind of the fact that if he reached target for at least 11 out of the 12 months of the year, he would be able to tear his wife away from her sunbed and away to a tropical island, where she could enjoy some real rays while he toddled off to play golf. We were pre-registering everything that came through the door to hit our monthly volume target, which would have been all very well were it not for the fact that I, as the sales manager, was paid a bonus based not on volume but on the dealership’s profits. The problem was further compounded by the

‘Like all good pre-reg deals, the smooth also came with the rough ’ depreciating assets sitting in our compound. We had white Fiat Tempras, gold Lancia Themas, four-cylinder Alfa Romeo 75s and Alfa 33s with wind-up windows, and even giving our customers their very own bargepoles as they walked through the door wouldn’t have made anyone touch them. I think I’ve recounted the tale here before of my deadly departure deed, when I ordered a fleet of nine beige Fiat Cromas as a leaving present to my boss, but I’ve never confessed what drove me to leave in the first place. Let’s just say I didn’t jump . . . The DP was just one month, and one transporter load of unsaleable crap, away from his tropical bonus. Indeed, on the day in question he’d taken his wife out shopping to look for a new bikini, something he could use the privilege of his role to do on a busy Saturday morning. Knowing he’d be too lazy to look at the systems at least until Monday, I looked at what was due for delivery during the last week of the month and cancelled the lot. Sadly, my deception was spotted and disaster – at least for the DP’s wife – was averted, but I’d made my point. But rather than put the profitability of his dealership first, the following week our esteemed leader gave me my cards, and I gave him a fleet of beige Fiat Cromas in return . . .

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 | 31

Sell cars the Smart New way Launched in January, our new TV advert will be viewed more than 300 million times in the ﬁrst 6 weeks alone and played on over 100 TV channels nationwide – helping our dealers to sell more cars without the Carfuffle. To watch our advert and to ﬁnd out about our multi-million pound Carfuffle campaign, visit www.motors.co.uk/tv, email us at sales@motors.co.uk or call 0845 265 6000.

��| CarDealerMag.co.uk

bAGGOTT.

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

Boredom has turned to browsing . . . and ways to do more business W

hen my brother ran a used car dealership I spent many Saturdays with him in the showroom, drinking tea out of plastic cups and waiting for someone to arrive. He worked seven days a week running the site on a busy road into town. It was a prime spot, loads of passing traffic and, as it was a former petrol station, it was easy to pull on to and park. Perfect for netting passing car buyers. I loved the banter, the stories from the traders who’d nabbed a bargain at the local main dealer and the ‘folk of the road’ who’d try to sell my brother anything they could lay their hands on. Silver knives and forks, Sony TVs, mobile phones – all at knock-down, fell-off-the-back-of-alorry prices. It was like a real-life episode of Minder. My brother did pretty well out of car sales too. He had a string of nice cars to knock about in, a smart house in the posh part of town, and whenever we went to the pub he whipped out a wad of cash that, to steal a line from Lock, Stock And Two Smoking Barrels, would choke a dozen donkeys. But all I seem to remember from my visits to see him is the waiting. The endless drumming of fingers on the desk, the pacing up and down, the peering out of the window in the hope someone would pull up with an insurance cheque burning a hole in their sky rocket. Oh, and the boredom. My God, was he bored. These were the days when the internet was just ‘coming into fashion’ – dial-up and its 20-minutes-to-load-a-page speeds were available on CDs at the local supermarket check-out. And The Sun lasted the first hour of the morning. Often would be the case when I arrived at the site – usually in a press car, as I’d just got my first job at Auto Express – that he’d introduce me to a new way he’d come up with to pass the time. There was the golf (he was quite proficient at putting into a broken cup from 10 foot on threadbare carpet). And then there was the air rifle (often used to put holes in cans from 100 yards by the tyre pile out the back). There was also the McDonald’s Double Cheeseburger challenge (I saw him eat six in one sitting and he’s a small guy – even an American would have been impressed). And I’m sure there were many more diversions I’ve long since forgotten. These days, you guys that run these small, independent sites have things a little easier. I don’t mean it’s any easier to shift the metal – that’s always been tough – but the loneliness of sitting in your office praying a customer will make your day can be broken up by interacting with a new community. A virtual one.

James Baggott *EDITOR’S NOTE: MAKES A CHANGE FROM THE USUAL SITES HE VISITS*

As internet speeds have picked up, the opportunities for entertainment at your desktop have ballooned. Movies, music, breaking news, Breaking Bad, it’s all out there at the click of a mouse or prod of your finger on a piece of webconnected glass. But while the interweb has managed to fill many hours with time-wasting pastimes, it’s also come up with a few that can actually help better your business. Social media has connected millions – Facebook and Twitter put you directly in contact with other traders around the world – and more recently there’s our forum. When our operations director Andy suggested we launch a forum on the Car Dealer website I must admit I wasn’t convinced. I’d never used them, never seen a need to use them and thought they were simply full of keyboard-terrorising trolls. While that may be true for some others, it certainly isn’t for ours. With a few hundred actively engaged members, our forum continues to impress with the interaction, suggestions and helpfulness of the dealers on there.

‘Opportunities for entertainment at your desktop have ballooned’ I’m often surprised by the candour of the members too. A recent post by GreenGiant about a moral dilemma he’d walked into really sparked some debate. A couple had been in to see a car in his showroom, they wanted it but didn’t put a deposit down, but they promised to return two days later to do so. Meanwhile, unbeknown to GreenGiant, his Sunday salesman sold the car to another couple. GreenGiant asked the forum community what he should do about couple one – who were incandescent with rage – and there were some interesting responses. Another favourite topic of mine was ‘Too Damn Fussy’, started by member Used Car Seller. It’s a brilliant rant about customers’ demands for their money these days, and the members’ replies are sharp and very witty. Or there’s the post entitled ‘Things I Learn With Every Deal’ which set forum members off on why deposits are so important – and their experiences of when it all goes wrong. The motor trade is full of big personalities. Now, with our forum, there’s a new location for these guys to interact, to dish out the banter and the humour – and pass the time waiting for another victim customer to walk on to the lot. I know my brother would have loved it. Join in at CarDealerMagazine.co.uk/forum.

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 | 33

FIND YOUR PERFECT MATCH

FIND THE CARS YOU WANT TO STOCK, AND DISPOSE OF ANY YOU DON’T QUICKLY AND EASILY WITH AUTOTRADE-MAIL.

CALL 08433 089 497 FOR A FREE TRIAL TODAY ��| CarDealerMag.co.uk

We’ve got thousands of vehicles and thousands of dealers all looking for their perfect match. We’re built especially for dealers, and 90% of our members would recommend us, so you know it’s a service you can trust.

REAL DEALS.

..in association with

Fabulous Ferrari’s a fantastic find One of the final Ferrari 412s to be built comes up for sale with family-run dealer Andew Hamilton. Sophie Williamson-Stothert reports

Well-cared-for Ferrari 412 could fetch £30,000

his month’s four-wheel find slots perfectly into the premium supercar market – a rather swanky silver Ferrari 412 that will fetch nearly £30,000. This G-reg 1989 example is one of the very last 412s to roll off the production line in Maranello and has seen just three owners from new. It was supplied to the UK by Maranello Sales where it began life in Egham in August 1989. What’s more, it’s only covered 21,148 miles in nearly a quarter of a century– that’s less than 1,000 miles per annum. For Andrew Hamilton Gray, owner and MD of Hamilton Grays Ltd in Leicestershire, these prime examples of classic supercars aren’t out of the ordinary. Since its launch in 2009, the small familyrun business in Loughborough has specialised in the sales of Porsche, Maserati and Ferrari as well as other high-end marques such as Bentley, Lamborghini, Aston Martin and Range Rover. But for Hamilton Gray, each and every vehicle he has the pleasure to sell has its very own unique history. ‘Obviously we specialise in classic sports and supercars from top-end brands across the world,’ says Hamilton Gray. ‘But you always find that most of them have their own unique selling point and they all generate a lot of attention. ‘This particular Ferrari

412 is actually an extremely rare piece of Ferrari’s history. Aside from the fact that it’s one of the very last 412s to come off the production line, it benefits from having both electric seats and air conditioning and comes with its original leather service book pack and an extensive file of invoices.’ First revealed in 1985, the 412 was the last one in the 400 series and only remained in production for four years. Under the bonnet is a 4942cc V12 engine, which produces a total of 340bhp. It’s mated to a sixspeed automatic gearbox and can send the car from 0-6mph in 6.7 seconds and will go on to reach a top speed of 155mph. Finished in metallic silver, this 412’s interior looks as if it’s barely been touched. It features full-

electric black leather seats, which match its black dashboard and door panels. Only its iconic prancing horse logo glows vibrant yellow from the centre of the steering wheel. According to Hamilton Gray, this particular model has just been given a full service and its engine feels and sounds like it was built just yesterday. ‘I’ve driven it a couple of times since it’s been in the showroom and its 5.0-litre V12 still purrs just as it should,’ says Hamilton Gray. ‘This car is in absolutely immaculate condition, it had a MOT in December with no advisories and we’ve just given it a full service; it doesn’t need any new tyres and no work needs to be done to the bodywork – it’s like a brand new car.’ Hamilton Gray would rather keep hold of the 412 to make a profit but, due to the dealership’s stock requirements, it has to go. ‘The car owes by about £23,000 and it’s slightly too old for our stock list,’ said Hamilton Gray. ‘I do wish we could store it for a few more years and sell it for a larger profit further down the line.’ He added: ‘This is a fantastic investment opportunity because the value of this car will slowly continue to increase. It will be the ideal car for someone to cherish and to enjoy, and it’sevem ready to drive away today.’ [CD] Visit autotrade-mail.com to start your free 14-day trial CarDealerMag.co.uk | 35

forecourt.

Maserati Ghibli Maserati has always been for the discerning, but you want to appeal to more customers. Why is that? I think the brand has a broader appeal and our current product range now allows us access to a wider customer base. The price point is now lower thanks to the Ghibli and that audience that can now afford a Maserati becomes broader. We are not trying to lose exclusivity but we are trying to develop the brand that builds upon this exclusivity, gives us growth and allows us to give greater returns to our investors. But all of this will

Peter Denton, Maserati’s regional manager for North Europe, chats to Car Dealer about the brand’s bold plans happen in a price-point that’s between 50,000 and 150,000 euros and deliver around 3,000 units a year in the UK by 2015 and 2016. But that’s going to be a real challenge, isn’t it? It will be and there is the risk, especially with Ghibli, that in a very short space of time interest

could extend past our expectations for this year. We can allow that to happen to a certain extent without there being any negative impact on the brand’s exclusivity and residual values. We don’t have a desire to extend beyond a certain point – we know how to grow our unit sales from 300 to 3,000 a year by 2016 thanks to new dealers and products. But the issue will be that if we’re

cabin

Inside is certainly not a boring place to be. That said, there are a few bits nicked from the Fiat Group parts bin, which is a shame

ENGINES

A lovely turbocharged petrol available in two power outputs. But it’s the 3.0-litre twinturbocharged diesel that will be the seller

on test Maserati wants to become more mainstream – and this rival to the BMW 5 Series is What is it?

What’s under the bonnet?

What’s the spec like?

Until now a customer had to be a Maserati petrolhead to buy one of the company’s cars but that’s all set to change. Thanks to this, the new Ghibli sports saloon, and a luxury SUV dubbed the Levante arriving soon, Maserati wants to hit the big time and appeal to more customers. The Ghibli is the Italian sports car brand’s BMW 5 Series rival – an E-segment car that’s designed to take Maserati into environments it’s never really been before, namely the corporate world full of men wearing non-iron shirts and machinewashable suits.

A jolly nice 3.0-litre twin-turbocharged petrol in either the 325bhp or 404bhp outputs, but it’s the 271bhp 3.0-litre twin-turbocharged diesel we’re focusing on as it will take up 70 per cent of UK sales. Maserati’s first-ever derv is a mixed bag, though. It’s all very clever – what with the two sound actuators fitted in the exhausts to make it sound like a V8 petrol – but catch it below 2000rpm in the wrong gear and it’s a bit like a dithering old relative. But get it right and it flies, with 60mph coming up in 6.1 seconds. Combined MPG of 47.9 and 156g/km of CO2 is quoted.

While the Ghibli has corporate world drudgery in its sights, the car’s interior is pleasingly interesting. Unlike the larger Quatrroporte, the Ghibli uses what Maserati calls a ‘two-cockpit’ design – the driver and passenger sides are split into different ‘zones’. All Ghibli Diesels come with beautifully supple leather upholstery, a six-way electrically-adjustable driver’s seat, dualzone climate control, Bi-xenon headlamps, wood trim, 18-inch alloys, an 8.4-inch touchscreen and the all-important almond-shaped Maserati clock perched on the dashboard. It’s priced from £49k.

��| CarDealerMag.co.uk

in association with

saturated with customers who want something different in the E-segment we will have to manage it – if there are too many we will have to disappoint some people. How strong would you say Maserati’s brand awareness is? We did a study in 2012 which looked at the time between 2005 and 2012 and we were able to establish at least brand understanding in that period and awareness improved by 30 per

cent. That is really saying if you talk to somebody about Maserati versus 2005, they have a better connection with the brand – that doesn’t mean they truly understand the brand or what we build. There is the perception that the initial outlay or maintenance costs of a Maserati are much more expensive than they really are. While we enjoy the fact the Maserati brand has an air of mystique about it, we need to break down the perception that owning a Maserati is not reachable for many.

Your forthcoming luxury SUV, Levante, is an exciting proposition. Has it been a long time coming? We’ve been talking about entering this segment since 2003! We did say it would arrive in 2014 but various developments and external impacts have taken their effect on the project, and there are now still small issues which are preventing us from delivering the project – things as small as where we will build it! But it will come to market and developed the way we want it to be soon.

LOOKS

It may resemble a smaller Maserati Quatrroporte, but every panel is different. It’s certainly one of the E-segment’s beauties

the knowledge Model: Maserati Ghibli Diesel Price: £48,830 (as tested) Engine: 3.0-litre V6, twin-turbocharged diesel Power: 271bhp, 600Nm Max speed: 156mph 0-60mph: 6.1s MPG (comb’d): 47.9 Emissions: 156g/km Residual values (three years): 36 per cent

target buyers:

Discerning types and executive saloon car buyers bored with Germanic offerings

the rivals:

the car to do that. James Batchelor reports What’s it like to drive? Sadly, the Diesel is a tad disappointing. A fidgety ride is only made more unbearable in Sport mode and the steering system is endowed with hardly any feel whatsoever. Having said that, the brakes are sharp, the chassis well balanced and there’s a sense the Ghibli Diesel is one of the most agile sports saloons around. It’s by no means bad – it’s just that cars like the BMW 535d are virtually faultless.

What do the press think? What Car? said: ‘If you can put up with the

BMW 5 Series, Audi A6, Mercedes-Benz E-Class

Key Selling Points: unrefined drivetrain, the poor ride and the tight rear-seat space, you’ll certainly cut a dash in the office car park.’

What do WE think? Maserati wants to crack 50,000 units a year by 2016, and the Ghibli is the first car in its masterplan to achieve that goal. The Ghibli Diesel isn’t the German giant-slayer Maserati wants buyers to believe it is. But while it may not excel in any one area, being able to say ‘Let’s take the Maser’ even when you’re on your way to a strategy meeting in Basingstoke is enough to capture anyone’s heart.

1. Beautiful styling cues 2. Competitive CO2 emissions 3. Fine-handling chassis

Deal Clincher: Its exclusivity. Maserati may have big plans to shift lots of Ghiblis, but for now it’s rare Searches supplied by

Monthly AutoTrader.co.uk searches: N/A (new model) CarDealerMag.co.uk | 37

forecourt.

Seat Leon ST This is the first estate car to have appeared in the Leon range and it’s a crucial one, says Seat UK boss Neil Williamson To what do you attribute Seat’s sales success over the past year? Was it only the Leon? Leon was one major pillar of our growth last year. The second was we focused on retail sales across the range, so the 30 per cent increase year-onyear is brilliant. We’d rather sell cars to private individuals who keep their cars for two or three years – there’s a good chance they’re likely to buy another one after that time. And they’re loving the whole range of our cars. What are your sales targets for this year? I’m not allowed to tell you, I’m afraid. Of course we’re looking to grow the business from here on in with the completion of the Leon range with the ST and the Cupra and then 4WD platform

the knowledge Model: Seat Leon ST 1.6 TDI SE Price: £19,495 (as tested) Engine: 1.6-litre, four-cylinder, turbocharged diesel Power: 104bhp, 250Nm Max speed: 119mph 0-60mph: 10.9s MPG (comb’d): 74.3 Emissions: 99g/km Residual values (three years): 46 per cent

later on in the year. Last year was an incomplete year for Leon. We will also be focusing on retail again to grow our retail share, and that’s started very strongly in January. To complement that this year we want to really focus on fleet – companies that buy cars and keep them for two or three years on that sort of trade cycle, not the short cycle, daily rental style of business. So more longterm user-chooser type businesses. That’s what we’re looking to do more of this year, and we’ve made some changes in our fleet team and some investments in that area to make that happen. Do you have any plans to grow the number of dealers in the UK this year? We’ve got 124-ish at the moment, we could do with two or three more. We’ve got a few opening

points which we are talking to dealers now to close them. The acid test of the franchise brand or dealer brand is whether people are ringing up wanting the franchise, and this year I’ve been really pleased with that. So yes, we have some opening points but almost all of those have solutions in the coming year, so that really matters. We want to make sure the cars are attractive to the customers of course, but also that the brand proposition is attractive to franchiseholders. And I know it is, because people want to be involved and are getting involved by moving into our business or expanding. What do you think the Leon ST

ENGINES

A wide range of petrol and diesel options available. For now, the fastest is the 2.0 TDI FR – it tops out at 142mph

LOOKS

The ST carries on from where the Leon hatchback left off – so that means numerous sweeping curves giving a sporty appearance

target buyers:

Young families after more space and trading up from conventional hatchbacks

the rivals: Ford Focus Estate, Vauxhall Astra Sports Tourer

on test For its new Leon estate, Seat hasn’t just grafted on a square

Key Selling Points: 1. High levels of build quality 2. Good range of technology 3. Wide range of efficient engines

Deal Clincher: Wave goodbye to dumpy estate cars – it’s easily the best-looking in its class Searches supplied by

Monthly AutoTrader.co.uk searches: N/A (new model) ��| CarDealerMag.co.uk

What is it?

What’s under the bonnet?

Sharing its underpinnings with the five-door Leon, the ST estate gets an additional 27cm of bodywork hanging out over the rear wheels. It might not sound like much, but it transforms the 380-litre boot of the hatchback to a commodious 587 litres, which rises to a decent 1,470 litres with the rear seats folded flat. Elsewhere, it is standard Leon – handsome with a high-quality interior.

Petrol models kick off with the fuel-sipping 1.2-litre TSI, which proves not to be the gammy leg that its tiny displacement suggests it would be. One up is the 1.4litre TSI, which offers a useful 34bhp more at 138bhp. Topping the range is a 178bhp 1.8-litre unit, currently the fastest version available. The diesel units broadly mirror the petrols in terms of power offered, with a 104bhp 1.6-litre, and a 2.0-litre available in 148bhp and 181bhp states of tune.

in association with

offers over and above its rivals, including those which share the MQB platform? I don’t want to compare it to MQB because I’m not allowed to. I think what’s unique about our car is it’s building on a great success story

– the Leon is loved by both the press and our customers. We’ve only just launched and the feedback has been really positive. Versus our aspirations, we’re 300 per cent ahead on what we thought we’d do.

CABIN

Apart from the extra space in the back, it’s no change here – so there’s some good build quality and an attractively-styled dashboard

rear end – it’s more stylish than that. Daljinder Nagra has driven it What’s the spec like?

What’s it like to drive?

Every Leon ST comes with air conditioning, Bluetooth phone connectivity with audio streaming and a five-inch colour touchscreen that drives the majority of the car’s functions. If that isn’t enough, SE models add an electronic limitedslip differential for greater stability in corners, as well as cruise control and a smattering of leather on the steering wheel and gearknob. Rangetopping FR models are further bestowed with dual-zone climate control plus LED tail lights, and get subtly different front and rear bumpers for a sportier look. Prices range from £16,675 (S 1.2 TSI) to £24,630 (FR 2.0 TDI DSG).

The ST is almost identical to drive to the regular Leon, which is no bad thing given it is stable and secure, with just enough driver interaction to make a journey on the right road interesting. Even the entry-level engines provide useful power, though it’s the top-end diesel that feels most muscular. Plus points include light, accurate steering and well-weighted pedal controls.

What do the press think of it? What Car? said: ‘The Leon ST has plenty going for it. Despite that sleek styling, it’s a seriously

practical estate that’s also good to drive, well equipped and attractively priced.’

What do we think of it? The Leon has grown up to be one of the leading cars in its class, and the extra boot space of the ST model only increases its appeal. While it won’t be a replacement for a big Volvo, Seat is confident the load space available will suit most buyers’ needs to a tee. While some rivals may offer a longer warranty, more powerful engines or a cheaper list price, for us none has quite the same all-round appeal as the Leon. Quite simply, it’s a cracking car. CarDealerMag.co.uk | 39

forecourt.

Honda Civic Tourer Why has Honda fallen behind over the past few years? You’re absolutely right – over the past few years, Honda has dropped behind slightly. This is mostly due to the state of the economic climate and our small product range, which is currently smaller than other brands such as Nissan and Ford. The Tourer is our first step towards getting ahead, and will be followed by a further four vehicle launches at the end of this year. I’m not concerned about where we are now; I’m focusing on where we’re going in the coming months.

Honda’s new UK MD, Phil Crossman, chats to us about why the brand is poised to make a comeback Are you concerned that the C-segment estate market is quite small? The C-segment estate market is relatively small, but over the past year it’s steadily increased. Sales have already climbed from 30,000 units to 38,000 and over the next two to three years we predict that demand will be even greater.

Honda alone will add another 4,000 units to that figure with the Civic Tourer. The new Tourer is the first Honda to be designed and developed in Europe. We wanted to make sure that it appeals to the entire European market with class-leading boot space, practicality and efficiency.

ENGINES

Same as its five-door hatchback sibling – so there’s the choice of Honda’s new 1.6-litre diesel or a 1.8-litre petrol unit

the knowledge Model: Honda Civic Tourer EX-Plus Price: £27,960 (as tested) Engine: 1.6-litre, turbo diesel Power: 120bhp, 300Nm Max speed: 121mph 0-60mph: 10.5s MPG (comb’d): 72.4 Emissions: 99g/km Residual values (three years): tbc

target buyers:

Luxury estate and SUV drivers looking to downsize to a practical car with large space.

the rivals: Volkswagen, Seat Leon ST, Skoda Octavia Estate

on test Honda has added an estate model to its British-built Civic. But

Key Selling Points: 1. High levels of comfort 2. Active rear damper system 3. Efficient 1.6-litre diesel

Deal Clincher: It’s the most commodious estate car in its class thanks to 600+ litres of boot space Searches supplied by

Monthly AutoTrader.co.uk searches: N/A (new model) ��| CarDealerMag.co.uk

What is it? Quite simply, the estate version of the British-built Civic. It doesn’t pay much attention to exterior design features, but instead focuses on interior space. With more than 600 litres of boot room and ‘magic’ fold-flat seats, the main quality the Civic Tourer has to offer is masses of storage. But when it comes to desirability, it doesn’t quite live up to its rivals, of which we’ll chat more later.

What’s under the bonnet? It comes with the same engines as the hatchback – a 1.8-litre i-VTEC petrol and 1.6-litre i-DTEC diesel. Only the petrol will come with the option of an automatic gearbox, while diesels will be mated to a six-speed

manual. Out of the two, the diesel is the better option as it’s noticeably more refined and punchy.

What’s the spec like? The Civic Tourer comes in four different trim levels – S, SE Plus, SR and EX Plus. S models start at £20,265 and come with 16-inch alloy wheels, Bluetooth connectivity, fold-flat seats, hill start assist and electric windows. SE Plus kicks in at £22,450 and there are front fog lights, automatic headlights and wipers, a rear-view camera and 17-inch alloy wheels. SR models come with sat nav and a DVD player, while top-end EX Plus models feature keyless entry, push start and interior ambient lighting.

in association with

Who will buy the Civic Tourer? The Tourer will appeal to Accord and Civic customers who want something a little larger than the five-door hatchback. There is potential that a large percentage of buyers will be conquest – these will be drivers downsizing from D- and E-segment cars or from the SUV sector. Obviously, the Tourer will perform well in the fleet market and our corporate business continues to exceed our expectations. We will also dabble in Motability, but 70 per cent of sales will be retail.

Does your involvement with the British Touring Car Championship help to drive demand? Alongside our success in the British Superbike Championship, BTCC is an extremely important link for our brand. Team Dynamics are a brilliant team and we have worked with them to produce a number of championship-winning cars. The Honda BTCC team is yet another close connection we have with our customers and they can see the technology we filter down through our race cars into their road cars.

LOOKS

You say you want to get ahead again with Honda. How do you plan on doing that in the next few years? Three years from now, Honda will be completely transformed. We have five cars launching this year, including the new Jazz, the Civic Type R, the NSX, a new derivative of the CR-V and a brand-new SUV. The new SUV will be based on the same platform as the Jazz, which continues to exceed our expectations, but it will be a cross between the CR-V and a Civic, putting us head-tohead with Nissan’s Qashqai.

CABIN

Honda has tried hard to give the Tourer a sporting appearance. The jury’s out on whether or not they’ve managed it or not

Civics get a wacky-styled interior that’s nicely built for the most part. There are a few cheap plastics in places, though

is it any good? Sophie Williamson-Stothert reports What’s it like to drive? Honda has revised the steering and tuned the suspension to give drivers more confidence behind the wheel, and for the first time on any Honda, drivers have the option of adaptive rear dampers. The set-up on the rear suspension is designed to help the Civic handle better when carrying heavy loads and prevent body roll during cornering. The driver has the option of three driving modes – Normal, Dynamic and Comfort.

What do the press think? Autocar said: ‘The Civic Tourer’s huge and versatile load space, comfortable ride and strong

yet frugal diesel engine are impressive, but likefor-like it is somewhat overpriced against its competitors.’

What do WE think? As a standard estate car, the Civic Tourer does what it says on the tin. It offers class-leading, practical boot space as well as plenty of head and legroom. However, in comparison to the Seat Leon ST and Volkswagen’s Golf estate, the Honda has a much heftier price tag. Both rival cars come with similar economy figures (the Seat matches them) and impressive levels of spec, making it slightly difficult to justify the extra cost. But if

space is customers’ absolute priority, the Tourer might be worth the extra outlay. CarDealerMag.co.uk | 41

forecourt.

in association with

cabin

The interior may be a shock for some buyers, but the Rexton’s target market is after sturdy rather than style

engines

There’s only one engine on offer – a new 2.0-litre turbocharged diesel. It only puts out 153bhp but it is a more than capable unit

LOOKS

It’s basically the old car with a facelift, so there’s a new front-end, new rear lights and extras splashes of chrome trim

SsangYong Rexton W SsangYong has brought back its Rexton and made it even better value for money. Sophie Williamson-Stothert reports What is it?

What’s the spec like?

First introduced in 2001, the Rexton was seen as an old-fashioned budget off-roader that looked increasingly dated and felt cheap in comparison to other vehicles in its segment. For 2014, the all-new Rexton – now curiously badged Rexton W – has been given an intensive makeover, but it still retains the unique elements that appealed to customers in the first place – space, practicality and good value for money. It’s essentially one of the most basic SUVs on the market and one of the cheapest seven-seat 4x4s on offer right now.

Every model comes with seven seats as standard, but there is also a five-seat version. In keeping with the brand’s mantra of providing value for money, the entry-level SX at £21,995 comes equipped with standard gadgets such as cruise control, air conditioning, electrically operated and heated door mirrors and 18-inch alloy wheels. The top-spec EX model at £25,995 gets leather seats and parking sensors. All cars now get softtouch plastics, too.

What’s under the bonnet? The Rexton W comes with a brandnew engine – but this is customers’ only option. It’s a SsangYong 2.0-litre turbocharged e-XDi diesel unit, which was first seen in the Korando. Depending on customers’ style of driving, you can pair the unit with a six-speed manual or five-speed Mercedes-Benz T-Tronic auto ’box. ��| CarDealerMag.co.uk

What do the press think of it? Car said: ‘The Rexton is like an old Mitsubishi Shogun, Nissan Patrol or Toyota Land Cruiser – unashamedly no-nonsense. However, it’s also nocomfort and little-refinement, and we can’t recommend this dated machine as anything more than a very niche choice for die-hard bargain-hunters.’

What DO WE THINK OF IT?

The Rexton’s biggest selling point is its price tag. Starting from just What’s it like £21,995, buyers can’t really go to drive? wrong. Unlike many of its rivals, its Producing just 153bhp, it’s not four-wheel-drive system means it the pokiest 4x4 on the road, but can actually perform off-road and that aside, it’s surprisingly quiet is capable of digging itself out of a and refined. But the average fuel muddy hole. But while it offers heaps consumption is poor at 36.2mpg, the of boot and passenger space, it’s not auto ’box feels very sluggish, and particularly comfortable or efficient there’s little feedback through the to drive. But if customers simply steering wheel. Off-road and the story want a 4x4 that they can run into the changes. The responsive hill descent ground, the Rexton will get the job control makes steep declines much done – and for that reason the Rexton easier to tackle. will be much liked.

the knowledge Model: SsangYong Rexton W EX Auto Price: £25,995 (as tested) Engine: 2.0-litre turbo charged diesel Power: 153bhp, 359Nm Max speed: 109mph 0-60mph: 11.4s MPG (comb’d): 36.2 Emissions: 206g/km Residual values (three years): tbc

target buyers:

Caravan enthusiasts who enjoy hooking up the mobile home for frequent long weekends

the rivals: Nissan X-Trail, Mitsubishi Outlander, Kia Sorento

Key Selling Points: 1. Three-tonne towing weight 2. 1,339-litre luggage space 3. Punchy new SsangYong 2.0-litre turbo diesel

Deal Clincher: It has a small price tag, starting from just £21,995. Discovery space for Freelander money Searches supplied by

Monthly AutoTrader.co.uk searches: 22,476

THE AVERAGE UK MOTORIST SPENDS

THREE DAYS A YEAR STUCK IN TRAFFIC

7KDWÂ·V HQRXJK WLPH ZDVWHG *HW DKHDG LQ /HDUQ PRUH DERXW WKH PDUNHW LQVLJKW DQG VROXWLRQV ZH FDQ RIIHU WR KHOS PDNH EX\LQJ VHOOLQJ PDUNHWLQJ DQG PDQDJLQJ \RXU VWRFN HIIRUWOHVV Visit dealerportal.co.uk or give us a call on DQG ZHÂ·OO EH KDSS\ WR KHOS

*INRIX report, April 2013 CarDealerMag.co.uk | 43

FEATURE.

the

influencers The industry’s biggest names predict another bumper year for the motor trade in 2014 MEET the influencers. Or, in other words, the people who shape the car market. For 2014, we’ve brought together the largest group of industry bigwigs since we started Automotive Influencers in 2012. From the manufacturers we have presidents, CEOs, managing directors and sales directors from Ford, Jaguar Land Rover, BMW, Nissan, Peugeot, Hyundai, Renault, Kia, Toyota and Mitsubishi. We also ��| CarDealerMag.co.uk

have the CEO of the UK’s largest dealer group, Pendragon, as well as representatives from the supplier world – Manheim, Supagard, Autotorq, HPI, Contact Advantage, The Auto Network, GForces and Auto Protect – plus search engine giant Google. We asked them seven questions designed to reveal their thoughts for the year ahead. Here’s what they had to say.

PICTURES: MAX EAREY & PETER SPINNEY

Scan the QR code to find out what the influencers think about the next 12 months

With thanks to The RAC Club, Pall Mall royalautomobileclub.co.uk

CarDealerMag.co.uk | 45

FEATURE.

Jon

Wellsman FORD: Motor industry as a whole faces a number of challenges

What opportunities do you think 2014 will present? Ford will continue to build on last year’s successful transformation of our customer service and aftersales experience. We’re doing everything we can to make buying and owning a Ford vehicle as enjoyable, affordable and trouble-free as possible, and this is driven through our excellent dealer network – the largest in the UK. What do you regard as the biggest threat to the motor industry in 2014? The economic climate in Europe continues to be very difficult, with over-capacity in the automotive industry creating severe profitability issues. Ford has reorganised its manufacturing operations in the UK to concentrate on the design, development and manufacture of world-class engines, in addition to designing and developing award-winning commercial vehicles. Ford has also pressed ahead with significant investment in its sales and aftersales operation. Are there any reasons to be cheerful in 2014? Absolutely. The new car market is at its strongest since 2007, with overall registrations in 2013 up 10.8 per cent on 2012. The UK was also the only European market to grow consistently through 2013, and as market leader we have plenty to be cheerful about going into 2014. The focus now is to match our best-ever model range with tremendous customer service support from the UK’s strongest dealer network. What are you most excited about in 2014? Last year we announced that Ford is launching 15 new models in five years; that figure has increased to 25 new models within the same period. The EcoSport will expand Ford’s presence in a growing market sector and this will grow further when the Ford Edge is introduced. We will double the size of the Ford Transit range with the introduction of the Transit Courier and Transit models, supported by our Transit24 aftersales service. Can you see the current period of strong new car sales continuing? If so, for how long? A buoyant UK market has attracted the excess production capacity that couldn’t be absorbed by depressed European markets. It was a credit to Ford’s outstanding product line-up and its dealer ��| CarDealerMag.co.uk

My area of focus is continuing to deliver the best customer support possible.

Mini CV Job title: Director, Ford Customer Service Division (FCSD). Age: 51. Lives: Essex. Drives: Ford Mondeo. Family: Married. Education: Graduated from Bradford University in 1984 with a BSc in engineering and management. Career: Joined Ford in 1986 as a sales zone manager in Daventry district office. Previous postings include managing director Ford of Hungary, marketing and sales director Ford of South Africa and product marketing director Ford of Europe. Wellsman returned to Ford of Britain as sales director in 2009. Number of dealers: 510.

partners that Ford’s market lead has strengthened. Our expectations are that the UK market will continue at similar levels. Do you think the motor industry needs to change and where should it come from? The motor industry as a whole faces a number of challenges. My area of focus is continuing to deliver the best customer support possible. What should dealers be focusing on to ensure growth and a sustained future in 2014? Looking after customers. Last year we launched Ford Motorcraft 4+, a comprehensive aftersales package to owners of Ford vehicles aged four years and over. This completed the transformation of Ford’s aftersales experience, which includes Ford BlueService for new vehicles, Ford BlueService for Fleet, and Transit24. We are also in the process of refitting Ford dealerships across the UK with our new-look showrooms.

Matt

Harrison toyotA: Every business needs to change or it will diminish – and die What opportunities do you think 2014 will present? For the market overall, consolidation, perhaps gentle growth. Assuming the European economy has stabilised as predicted, we should see a return to a more normal supply-and-demand situation in the UK. For Toyota and Lexus specifically, I predict growth on the back of new models, both those introduced part of the way through 2013 such as Auris Touring Sports and IS 300h, or new in 2014 such as new Aygo and the small Lexus SUV. What do you regard as the biggest threat to the motor industry in 2014? Complacency. As a sector we have a regrettable habit of waiting too long to take corrective action. I see it repeatedly when dealers get into trouble. The signs are usually there long before corrective action is taken.

My aim is to try to do business the way our customers want it.

Are there any reasons to be cheerful in 2014? Lots, and I’m sure I can’t think of them all. The economy is recovering, the products are better than ever, finance packages are making cars more accessible and affordable to a wider market, and the customer is more and more empowered. What are you most excited about in 2014? New launches are always a focal point for the business so perhaps not surprisingly I’m excited by new Aygo. The first-generation model was a great success for us, remarkable given it was a new segment for the brand. Aygo is a car with a slightly different spirit and attraction than the rest of the range, more cheeky. It lets everyone have a bit of fun working with it. Can you see the current period of strong new car sales continuing? If so, for how long? We believe the market will be slightly up on last year. What should change is the competitiveness, especially as mainland Europe recovers and relieves the UK from being the only battleground. Do you think the motor industry needs to change and where should it come from? Every business in every industry needs to change or else it will diminish and ultimately it will die. The impetus for change should come from within the business, both dealer and manufacturer, but ultimately we all should be serving the needs of

Mini CV Job title: President and managing director, Toyota (GB) plc. Age: 45. Lives: Kent. Drives: Lexus RX 450h. Family: Married, two children. Education: BSc (Hons) degree in financial accounting from the University of Kingston upon Hull. Career: Joined Toyota GB as general manager vehicle marketing in 2000, becoming marketing director in 2003. Subsequently moved to Toyota Motor Europe in 2005. In 2008, appointed director of Lexus Europe, returning to Toyota GB in 2011 to take up the role of commercial director. Progressed to current role in September 2013. Number of dealers: 198 Toyota, 52 Lexus.

the customer. My aim is to try to do business the way our customers want it. What should dealers be focusing on to ensure growth and a sustained future in 2014? Keeping costs under control as volumes recover and focusing on delivering the best customer service they possibly can. I don’t mean in comparison to their own past or the car trade in general. Consumers might only buy a car every two or three years but they have retail experiences every week of the year and their expectations change accordingly.

COMING UP Our automotive influencers caught on camera – Picture Special, p58-59 CarDealerMag.co.uk | 47

FEATURE.

James

Wright NISSAN: Launch of new Qashqai will get us off to a flying start What opportunities do you think 2014 will present? 2014 will be one of the most important years in the history of Nissan in the UK and we are very excited by the opportunities it presents. The launch of the all-new Qashqai will get us off to a flying start but a raft of incredible new products, including X-Trail and a new C-segment hatchback, will refresh and rejuvenate our model line-up as the year progresses. Our aim is to capitalise on the undoubted impact of this new product by increasing our new car share in the coming years to six per cent for the first time. But sales volume is not the be-alland-end-all. We must also seize the opportunity to consolidate and ensure our customer service is consistent across the network and of a standard that matches the quality of our new product.

Manufacturers need to take a long view and resist the temptation to chase short-term market share.

What do you regard as the biggest threat to the motor industry in 2014? There is a risk that the current instability in the Eurozone persists in 2014 and there is a danger this will have a spill-over effect on the UK marketplace. If this happens, you could see manufacturers taking actions that distort the market and ultimately have a negative impact on both manufacturer and retailer balance sheets. Are there any reasons to be cheerful in 2014? Yes – the growing popularity of electric vehicles. The Leaf is a very important model for us, and already in 2014 we have celebrated the 3,000th Leaf sale in the UK and the 100,000th sale globally. Without a doubt, consumer acceptance of this new technology is on the up and we envisage a continued growth in sales as a result. What are you most excited about in 2014? The launch of the all-new Qashqai. The original Qashqai was a massive success for us, with worldwide sales in excess of two million since its launch in 2007, and we have equally high hopes for its successor. The new model features significant improvements across the board and represents a real step up in quality and value, as recognised by What Car? when it named it Car of the Year 2014. There has already been phenomenal interest in the all-new Qashqai. Can you see the current period of strong new car ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Nissan Motor (GB). Lives: West London. Drives: New Qashqai. Family: Married. Education: The University of Strathclyde (economics). Career: Various UK and European roles in Nissan, including head of Infiniti Europe. Number of dealers: 204. sales continuing? If so, for how long? We anticipate more of the same in 2014 – a year very much in line with 2013. However, while much of the growth in 2013 was driven by retail performance, we expect the reverse this year as the corporate sector continues to recover.

Do you think the motor industry needs to change and where should it come from? Manufacturers need to take a long view and resist the temptation to chase short-term market share. Inevitably, the result of this activity comes at the expense of their own and retailer profits. What should dealers be focusing on to ensure growth and a sustained future in 2014? Of most importance today is the shift in consumer buying behaviour. Our retailers need to understand that customers will visit them far less than in the past, with a significant part of their purchase journey happening on the web before they enter the showroom. This means that we, and our dealers, need to focus even more on delivering an engaging web presence and ensure that we maximise the opportunity when customers visit a dealer. To this end we will be rolling out a new retail dealer concept later this year.

Jeremy

Hicks JLR: An early rise in interest rates is the biggest potential threat looming in 2014

What opportunities do you think 2014 will present? The improving economic outlook and reduction in unemployment look set to create a more positive sales environment for the whole of the industry. For Jaguar Land Rover and our direct competitors, the uptake in premium car sales across the sector presents many opportunities. What do you regard as the biggest threat to the motor industry in 2014? An early rise in interest rates, which could have the potential to destabilise the recovery. Are there any reasons to be cheerful in 2014? Lots! But there are no reasons to be complacent. Jaguar Land Rover UK had a really great year in 2013 with double-digit growth for both brands but we won’t get carried away – we know that the sectors in which we operate are some of the most fiercely competitive and becoming increasingly so. What are you most excited about in 2014? Our products. We will continue to introduce new products and build on the appeal of our current offering. For Jaguar, XF is leading its segment in terms of retail sales and we have also grown XJ’s share of the market. In terms of future product, the media’s reception to the F-Type Coupe has been outstanding and I’m excited to see the reaction of the first customers when they get behind the wheel in March. Land Rover, too, has some surprises ahead and I’m very excited about those, although I can’t go into detail on those just yet! Two product refinements we have announced, though, are Jaguar Land Rover’s first hybrid powertrain (for Range Rover and Range Rover Sport) and a new long wheelbase and superluxurious Autobiography Black version of the Range Rover. Can you see the current period of strong new car sales continuing? If so, for how long? The industry has seen good positive recovery but we may not see sales continue to increase at the same rate. Do you think the motor industry needs to change and where should it come from? The number one thing that we all need to keep pace with is the continued and exponential

The uptake in premium car sales across the sector presents many opportunities.

Mini CV Job title: Managing Director, Jaguar Land Rover UK. Age: 51. Lives: North Buckinghamshire. Drives: Range Rover Sport Supercharged. Family: Married, three children. Education: St Peter’s School, York and then the University of Central Lancashire. Career: Joined Vauxhall in the UK, performing a range of roles. Then spent a short period in automotive consultancy before joining VW Group UK, holding a number of senior roles. In 2005, became managing director of Audi UK and stayed in that position for six years. UK managing director at Jaguar Land Rover since November 2011. Number of dealers: 210 (both Jaguar and Land Rover).

development of digital and the world in which our customers operate. People want a very different type of buying and owning experience, combining the convenience of the web with the benefits of the physical presence that dealerships offer. We are one of a very few categories where customers still like to touch, feel and experience the products before they buy them. That said, there is still plenty more for us to develop in the digital space. What should dealers be focusing on to ensure growth and a sustained future in 2014? Nothing new from me here; just get the business basics right and focus on putting the customer at the centre of everything you do. I always talk about dealerships as rather like a stool sitting on three legs – new cars, used cars and aftersales. Each is of equal importance – the danger of having any leg a different size than the other is the potential for the stool to become imbalanced and in danger of toppling over. CarDealerMag.co.uk | 49

FEATURE.

Tim

Zimmerman peugeoT: Optimism that sales will remain strong in retail and fleet

What opportunities do you think 2014 will present? The UK remains one of the bright spots in Europe, and with interest rates set to remain low in 2014 I am optimistic that sales will remain strong in retail and fleet. At Peugeot, we have the first full year for the new Peugeot 2008. Meanwhile, the new 308, launched in January, is winning high praise and in June we launch the 308SW, so huge opportunities lie ahead. What do you regard as the biggest threat to the motor industry in 2014? The only threat I see is to those who do not evolve with it. For example, some dealer groups remain obsessed with used vehicles, and while clearly used car sales are a key part of their businesses, the real growth opportunity is in new vehicles. Equally, customer expectations continue to rise and so-so service just won’t cut it any more. Are there any reasons to be cheerful in 2014? There is every reason! The market continues to grow along with consumer confidence, and recent strong increases in LCV sales also show that confidence is returning to the business world. Interest rates should remain low, and at Peugeot we have the best range of cars and vans we have ever had. Our dealer network is profitable and our customer satisfaction levels continue to improve. Why wouldn’t I be cheerful? What are you most excited about in 2014? Having one of the youngest model line-ups on the UK market provides us with a fantastic opportunity to grow our business. Can you see the current period of strong new car sales continuing? If so, for how long? The UK market has an established three-year replacement cycle, and low interest rates plus an improving economy should see the market continue its sustainable growth pattern. The market will remain highly competitive in 2014 in both fleet and retail, but with our great new product, clear and consistent marketing, and a healthy and motivated dealer network, I certainly expect Peugeot UK volume to grow. Do you think the motor industry needs to change and where should it come from? ��| CarDealerMag.co.uk

At Peugeot we have the best range of cars and vans we have ever had.

Mini CV Job title: Managing director, Peugeot UK. Age: 49. Lives: Stratford-upon-Avon, Warwickshire. Drives: Peugeot RCZ R. Family: Married, two children. Education: BA (Hons) business studies, DipM, DipMS. Career: Joined Peugeot Talbot Motor Co as a graduate trainee in 1986 – rose to regional director for Scotland & Northern Ireland in 1995. Between 1998 and 2007, Zimmerman was based in France in various roles. In 2007, he was appointed managing director of Peugeot Netherlands. In 2009, appointed general manager of Dong Feng Peugeot based in Beijing. In October 2011, appointed MD for Peugeot UK. Number of dealers: 229.

Change must be driven by customer demand. In terms of the point of delivery and maintenance of the vehicle, the customer still wants a ‘one-stop shop’ with dedicated and trained brand personnel as long as he or she is getting top-quality products and service at competitive prices. The biggest change is in information gathering and vehicle shortlisting, where the internet and social media are bringing huge changes. We must work hard to give customers easy access to what they need on their tablets and smartphones. What should dealers be focusing on to ensure growth and a sustained future in 2014? Peugeot dealers have a lot to look forward to in 2014. There is a great opportunity to capitalise on the strong retail demand and to grow local business sales. We have dramatically improved new vehicle profitability for our dealers, and increasing new vehicle volume is the main route to profitable growth.

Tony

Whitehorn hyundaI: Two major model launches are worth getting excited about

What opportunities do you think 2014 will present? New market segments are growing, which gives manufacturers the opportunity to market new and fresh products. The rise of PCP and contract hire is making it easier and more affordable to own a car. (New-gen i10 is a prime example.) There will be new ways of buying cars as consumers continue to utilise smartphones, tablets and other mobile devices more. Growth will be static this year, but for Hyundai specifically we foresee a 4.2 per cent increase in sales to 80,500 for the year over 2013â&#x20AC;&#x2122;s figure of 77,500. What do you regard as the biggest threat to the motor industry in 2014? Complacency and resistance to the changing consumer environment has the potential to threaten the industry. Many of Hyundaiâ&#x20AC;&#x2122;s dealerships currently utilise digital media to communicate with their customers.

There are good signs that the economy is recovering, which will help build consumer confidence further.

Are there any reasons to be cheerful in 2014? There are good signs that the economy is recovering, which will help build consumer confidence further. Coupled with low interest rates, owning a car will be more attractive and attainable, especially with PCPs and contract hire making all-inclusive monthly payments more manageable. What are you most excited about in 2014? Brand-new products like the New Generation i10 followed by the New Generation i20 towards the latter part of the year. Hyundaiâ&#x20AC;&#x2122;s eagerly-anticipated return to the World Rally Championship promises to be hugely exciting for the brand and fans alike. In addition, being a main sponsor of the FIFA World Cup in Brazil will be a brilliant opportunity for Hyundai to expand its global presence, as will our recently-announced 11-year partnership with Tate Modern. Can you see the current period of strong new car sales continuing? If so, for how long? There is still an ongoing demand for new and more efficient vehicles and it is forecast that there will be organic growth in the new car market in 2014. Provided there are no stark changes to interest rates and/or car tax legislation, current levels of growth will continue through to 2015.

Mini CV Job title: President & CEO, Hyundai Motor UK Ltd. Age: 54. Lives: Reading. Drives: Hyundai i40 Saloon. Family: Married, three children. Education: Cardiff University graduate with BSc (Hons) degree in economics. Career: Sponsored graduate with Rover Group. Moved to Renault as field sales manager. Joined Toyota in 1989 as training manager then moved to roles in fleet, marketing, sales and finally UK operations director. Appointed managing director, Hyundai Motor UK in 2005 and promoted to current role as president and CEO in 2011. Number of dealers: 154.

Do you think the motor industry needs to change and where should it come from? There is always room for improvement in our industry and the focus must be more on customer retention and forming sustainable customer relationships. Furthermore, the motor industry needs to be more receptive to digital opportunities and embrace new platforms to communicate with current and potential buyers. What should dealers be focusing on to ensure growth and a sustained future in 2014? Building consumer trust should be at the forefront of any dealership operation. Outstanding customer service will be the distinguishing factor because purchasing a car must not be a one-off transaction. Embracing digital platforms will raise awareness of a particular local dealership, while also ensuring the process of purchasing a car is an experience and will in turn deliver sustained growth for the franchise. CarDealerMag.co.uk | 51

FEATURE.

Le Etta

Pearce manheim: The industry has to adapt to keep up the pace with online demand

What opportunities do you think 2014 will present? Dealers will remain hungry for used car stock and need solutions which help them identify and buy the right stock for their market. After several years of focus on cost savings, we expect dealers to invest wisely in solutions that are designed specifically to add tangible value through all customer touchpoints within a dealership. With consumer confidence returning, now is also the time to proactively reconnect with previous customers (before someone else does). What do you regard as the biggest threat to the motor industry in 2014? The shortage of good-quality older used vehicles is set to be a problem for a few more years and this will put pressure on dealer margins. Cash and forecourt space needs to be used wisely. The quality and choice of new vehicles available to consumers now means that competition will be fierce, so there is no room for complacency. Dealers need OEMs to maintain their high levels of support on vehicles to maintain momentum from 2013, especially with the emergence of Chinese and Asian manufacturers with their aggressive pricing and warranty solutions. Are there any reasons to be cheerful in 2014? With consecutive quarterly growth rates of 0.8 per cent, it does appear that the UK is on the up and that the motor industry experience in 2013 is not just an anomaly. What are you most excited about in 2014? At Manheim we have had an incredible 2013 with record sales of cars through our physical auctions and online channels, and 2014 is carrying on in the same manner. Also in the wholesale environment we will start to see the ‘Dealmaker’ addition to our award-winning Seller Advance product help dealer groups retain the right partexchanges within their franchises, as well as the recent launch of our ‘Manheim Online’ suite of buying channels for dealers. Can you see the current period of strong new car sales continuing? If so, for how long? As industry confidence grows then fleet registrations should continue their recovery, but we have to recognise that the traditional company car ��| CarDealerMag.co.uk

Having the right team of people with the right tools is absolutely critical to success.

Mini CV Job title: Sales and operations director, Manheim Retail Services. Age: 41. Lives: Manchester. Drives: BMW. Family: Married, one child. Education: Advertising, marketing and media BA (Hons) degree. Career: BT; Austin Reed; Ford Motor Company; Real Time Communications; Manheim. market has changed and many of the customers for the PCP deals are former company car drivers. Do you think the motor industry needs to change and where should it come from? As consumer demands move forward more

progressively online, the industry must adapt to keep up the pace. We still have much to learn from service models of other industries, and whether this is about making sure the dealership is more accessible day or night we have to recognise that customers need to feel more valued, so having the right team of people with the right tools is absolutely critical to success. What should dealers be focusing on to ensure growth and a sustained future in 2014? As more and more consumers are researching online, understanding their online behaviours and offering more transparency is required in the form of vehicle and dealer reviews, along with comprehensive social media presence. Dealer websites will need to create a ‘one-stop shop’ environment. By really owning every facet of the consumer lifecycle with the right processes and people, dealers can put themselves firmly in the driving seat.

customers inside searching... Invite your whilst

Engage with your customers with Google Business Photos by Manheim, creating a 360-degree, interactive tour and showcase your dealership like never before. Customers will truly experience your dealership ‘just like being there!’

Ő Ő Ő

Detailed 360 tour of your dealership and vehicles Integrates with Google’s innovative StreetView technology Increase your online presence through: Ő Google+ and Google+ Local Ő Google Maps Ő Social Media Ő Websites

BUSINESS PHOTOS

TRUSTED AGENCY

Stay ahead of the competition and book your Google Business Photo shoot today from Manheim!

See it in action here

Call us on 0844 502 2301 or email sales@manheim.co.uk

www.manheimretailservices.co.uk

CarDealerMag.co.uk | 53

FEATURE.

Ken

Ramirez Renault: The key for 2014 is a continuation of momentum

What opportunities do you think 2014 will present? Plenty for our network as we continue our growth momentum for the Renault and Dacia franchises. For Renault, in addition to the recently-introduced revisions to the Megane family, we will launch the replacement for Twingo and the all-new Trafic. Plus, we’ll enjoy a full year’s supply of Clio and Captur crossover. Last year, we were very proud of the most successful launch ever with the Dacia marque. It was the fastest-growing new car brand, reaching a retail market share of 1.4 per cent, and in 2014 we look forward to a full year of the four Dacia models being on sale. As the fastest-growing franchise of 2013, Renault Group (Renault and Dacia) is now back in the top 10 retail franchises in the UK, so we’re looking forward to greater interest from investors and the opportunities this can bring to help us sustain our growth.

A rise in interest rates and tighter lending controls could stifle growth.

What do you regard as the biggest threat to the motor industry in 2014? Low interest rates and affordable lending have been key factors in maintaining new car demand. A rise in interest rates and tighter lending controls could stifle growth. Are there any reasons to be cheerful in 2014? The UK market bucked the wider European trend of decline in 2013, being the only market, with the exception of Spain, to have grown over the previous year. With three consecutive quarters of GDP growth now achieved, we can be optimistic that the economy is on a steady path to recovery. We anticipate growth to continue for at least the next five years, as pent-up demand from the crisis period is fulfilled as economic conditions improve. What are you most excited about in 2014? The launch of the all-new Trafic is a momentous occasion for us – it replaces an 11-year-old model. The replacement for Twingo, meanwhile, is our foray into the growing A segment and its penchant for personalisation. But I’m also excited about showing investors just what the Renault Group can achieve with a full year’s sales of new products and, of course, the unique Dacia brand. With new Clio, Captur and 100 per cent electric Zoe, Renault has the freshest B-segment range in the market, and sold almost double our 2012 B-segment volume in the final quad of 2013. ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Renault and Dacia, UK, Ireland, Malta and Cyprus. Age: 45. Lives: London. Drives: Renault Megane and Twizy. Family: Married, one child. Education: Bachelor’s degree in electrical engineering, Georgia Institute of Technology. Career: Joined Renault in February 2013 from Alliance partner Nissan where he was managing director of Nissan Latin America and the Caribbean, responsible for all of the Nissan and Infiniti brands’ operations in the region, covering 37 countries. Joined Nissan in 2002 following more than 10 years at Motorola’s automotive electronics and telematics communications groups. Number of dealers: 134.

Can you see the current period of strong new car sales continuing? If so, for how long? The UK is a highly competitive market place that benefits the consumer. I don’t see that changing this year. Do you think the motor industry needs to change and where should it come from? Yes, what’s required is a focus on quality customer service and providing a 21st-century showroom experience. This has to be a combined effort between manufacturers and their dealer partners. What should dealers be focusing on to ensure growth and a sustained future in 2014? Excellence in customer service. The number of interactions a prospect has with a dealership prior to a sale is minimal. Our first contact has to be perfect every time. We expect a continual focus on business improvement to create sustainable improvements in profitability.

Richard

Hudson BMW: Key investor in the UK is on a solid foundation for growth

What opportunities do you think 2014 will present? We are launching more than 12 new models in the next 12 months. These are new cars that will suit our growing number of retail customers and also our loyal corporate customers – from our largest range of BMW M cars through to our innovative, electric BMW i brand. These new cars will attract new customers to our BMW and Mini brands and new customers into our showrooms. What do you regard as the biggest threat to the motor industry in 2014? Three things: customer satisfaction, customer satisfaction, customer satisfaction! It’s not so much a threat as an opportunity, but the threat comes if you only compare yourself to others in the motor industry, which is why we benchmark ourselves against the best serviceorientated companies outside of the car industry. Are there any reasons to be cheerful in 2014? Of course! We have the widest range of models we have ever had, offering more choice plus the latest technology, designs and efficiencies. We have a strong group of dealer partners. We remain a key investor in the UK through our Mini, Rolls-Royce and engine plants, and this positions the group as a large employer in the UK and contributor to the UK economy. And with a steadily improving economy, this puts BMW and Mini on a solid foundation for profitable growth. What are you most excited about in 2014? Launching the BMW i3 at the end of last year was a momentous occasion. It is not every day BMW launches a new brand. We’ve just started to deliver the first cars to customers now and it’s great to see more and more customers coming to BMW. In fact, we have the highest proportion of conquest customers approaching us as a result of the new BMW i. The i3 will be joined by the i8 supercar later this year and that is something neither we, nor our competitors, have ever offered before. Can you see the current period of strong new car sales continuing? If so, for how long? If you listen to the motor industry analysts, they advise that the peak new car volume for the UK population is around 2.2-2.3 million. However, with many manufacturers pushing volume in

We benchmark ourselves against the best serviceorientated companies outside of the car industry.

Mini CV Job title: Sales director. Age: 46. Lives: Northamptonshire. Drives: BMW 5 Series Gran Turismo. Family: Wife and three children. Education: Leeds University. Career: Previously BMW UK marketing director, ad agency and marketing consultancy. Number of dealers: 147. the UK with strong offers and support, this could increase further. This is further impacted by conditions in mainland Europe, where demand is weaker and the recovery slower so the UK remains an attractive market. What’s important, though, is profitable and sustainable growth in the UK, so our

focus is on benefiting from the new models we are bringing to the UK and working with our dealers to make sure we have a balanced sales plan. Do you think the motor industry needs to change and where should it come from? An intensive focus on customer orientation through products, services and retail experiences is where changes and innovations need to come from. What should dealers be focusing on to ensure growth and a sustained future in 2014? It boils down to doing the right things by customers and you will keep them and attract more through an improved reputation. Secondly, grow your profits by giving the best advice and selling the benefits of the latest models with the leading technology. Finally, build and lead the best teams, because it’s dealer staff who look after customers and sell cars. CarDealerMag.co.uk | 55

FEATURE.

Alastair

MacLeod HPI: Exciting new products are starting to gain traction

What opportunities do you think 2014 will present? Given the success of the new and used car market in 2013, we anticipate economic conditions to remain fairly stable. Consumers will have access to funds through low interest rates, which will see at worst a flat year or at best a small growth. Dealers will continue to consolidate, with larger dealers becoming stronger. Fuel prices and telematics are two key drivers for the market and we anticipate that ‘driving styles’ will continue to moderate as these two elements impact on the market. What do you regard as the biggest threat to the motor industry in 2014? Firstly, economic factors driving up interest rates. Secondly, UK insurance premiums increasing because of recent flooding.

We now have access to an even greater wealth of information about customers and their behaviours.

Are there any reasons to be cheerful in 2014? Many! 1) Continued market stability/slight growth. 2) Increased demand for better-quality products, creating greater choice for consumers. 3) Continued investment in UK car plants by manufacturers creating jobs and helping to drive our economy. 4) A growing car parc, which requires support and drives revenues in the aftermarket sector. What are you most excited about in 2014? Our UK businesses are performing well. The core proposition of both HPI and Audatex continue to set the standard within the market. In addition, within both businesses we have exciting new products, which are starting to gain traction. For HPI, the Spec Check product is becoming a must-have for dealers when buying and valuing stock, whilst in Audatex, we have launched new products to help bodyshops streamline the estimating process. Can you see the current period of strong new car sales continuing? If so, for how long? The performance of last year was exceptional, buoyed by low interest rates and a level of preregistrations. We anticipate that there will be stability in terms of new car registrations, with slight growth at best. Looking to the longer term, there is less certainty. Our estimate is cautious for 2015 and 2016. ��| CarDealerMag.co.uk

Mini CV Job title: Regional MD, Solera UKSA (parent company of HPI and Audatex). Age: 47 Lives: Crowthorne. Drives: BMW 5 Series. Family: Two children. Education: Electronics Engineering at University of York (1988), MBA at London Business School (1998). Career: Joined BT as graduate intake manager in 1988, built career in sales and sales management, left in 2000 to start a mobile internet business. Joined Orange in 2001. COO then CEO of EurotaxGlass’s between 2007-2011, joined Solera in March 2012 as regional MD responsible for UK and South Africa.

Do you think the motor industry needs to change and where should it come from? There are a number of things that the industry should embrace and some of these have been around for some years. The use of information across the sector is poor. We now have access to an even greater wealth of information about customers and their behaviours, held directly by us or available to us through third parties. By using this information smartly we can be more effective in targeting customers at the right time. What should dealers be focusing on to ensure growth and a sustained future in 2014? We can’t emphasise enough the power of management information and the use of this data to improve business processes and sales opportunities. Take, for example, lead conversion. Customers still get away and they shouldn’t. In addition, dealers need to remain focused on improving customer satisfaction.

The essential package for finding the right stock hpi spec check Factory fitted options data for accurate valuations

Maximise your margins and stockturn with HPI Spec Check, providing factory fitted options data for a competitive advantage. Unique in the UK, it is a data service that details the exact options that were factory fitted to the individual vehicle you are viewing.

Ensure you are pricing your stock right and not underselling a high spec car. Factory fitted options data Total cost of options fitted List price of the car when new Spec Check star rating

hpi market values Complete vehicle valuations

For a complete valuation on a vehicle, choose HPI Market Values. powered by

HPI Market Values provides trade and retail pricing, updated daily, for current and future values. Using data from the UK’s largest classified site, Market Values also provides you with:

A benchmark cost against similar vehicles for sale Star rating for retail desirability based on Auto Trader searches For today’s valuation, future valuation and market intelligence

Get the full package with HPI Find out more today by calling...

0845 301 1843

HPI is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities. Ref 502487. Calls will be charged at local rate and may be recorded and/or monitored. HPI and the HPI logo are registered trademarks of HPI Limited. © 2013 HPI Limited. All rights reserved. HPI is a Solera company. E&OE: HPI pursues a policy of continuous product development. Products specification and pricing may be subject to change without prior notice.

CarDealerMag.co.uk | 57

FEATURE.

��| CarDealerMag.co.uk

PICTURES: MAX EAREY

comment by JAMES BAGGOTT Our Automotive Influencers feature is unique and one of the only times that the leaders of some of the biggest car manufacturers in the UK get together. Yes, we know they meet occasionally at the SMMT, but our informal gathering for photographs gives these key leaders the chance to talk shop with no other pressures. As the MDs, CEOs and presidents of the car companies and key automotive suppliers started arriving at The RAC Club in London

I had to stop and take stock for a moment of the feat we’d pulled off. Co-ordinating the diaries of these influencers was a nightmare. In fact, we had to can the first date because it simply didn’t work for too many people. But, as they started to file into the grand surroundings of the club on Pall Mall, I was honoured that they’d taken the time out of their busy schedules to come together for Car Dealer Magazine.

CarDealerMag.co.uk | 59

FEATURE.

Paul

Philpott KIA: We operate in one of the world’s most exciting and competitive markets

What opportunities do you think 2014 will present? I am confident that a continuing improvement in consumer confidence and stable economic metrics will lead to at least another 2.2 million UK car market in 2014. Compared to recent history, that’s a pretty substantial opportunity! Those brands with desirable products and great quality and dealers that can really deliver consistently excellent customer service will face many opportunities. What do you regard as the biggest threat to the motor industry in 2014? I think you have to look globally to see any really big threats to our industry next year. If China or the US suddenly slowed or the Eurozone caught another cold, then clearly the UK and its car market would suffer. Other than this, I think we will be okay.

At Kia we have real momentum, having grown sales by 150 per cent in just the past six years.

Are there any reasons to be cheerful in 2014? Of course there are! I am proud and privileged to work in one of the most exciting and competitive markets in the world. At Kia we have real momentum, having grown sales by 150 per cent in just the past six years. And with a rapidly-growing car parc, our dealers should also feel very cheerful. What are you most excited about in 2014? Our National Dealer Conference in January to celebrate Kia’s 150 per cent sales growth since 2007 and to present our plans for 2014; the launch of our all-new Soul in April; planning the launch of a fantastic new Sorento; Andy Murray winning the Australian Open sponsored by Kia; Surrey winning this year’s T20 tournament at the Kia Oval; and England winning the Kia-sponsored FIFA World Cup in Brazil (laughs). Should be an exciting year! Can you see the current period of strong new car sales continuing? If so, for how long? Yes. Whilst I do not believe we can expect growth on the same scale we witnessed in 2013, I don’t see too many reasons for the market to decline next year. What we need right now is stability and consolidation, and a gradual recovery back to a 2.3m to 2.4m car market within a few years. Do you think the motor industry needs to change and where should it come from? ��| CarDealerMag.co.uk

Mini CV Job title: President & CEO, Kia Motors (UK) Ltd. Age: 47. Lives: Dorking, Surrey. Drives: Kia Sorento. Family: Married, two children. Education: Graduated in 1988 with a BSc (Hons) in finance from Loughborough University. Career: Joined Ford’s graduate development programme in 1988, moved to Toyota in 1997, and then became Kia’s UK MD in 2007. Since then, Paul has been Kia’s European COO based in Frankfurt for three years, and returned to be Kia’s first non-Korean president and CEO in 2012. Number of dealers: 177.

If customers now really do only visit an average of 1.3 dealers during their car purchase process, as most researchers tell me, then together with our dealers we need to change. The alignment between manufacturers’ online presence, dealers’ online presence and dealers’ physical presence needs to be seamless. Customers should see and feel one brand presence, one level of consistent service, and one fully-integrated process between manufacturer and franchised dealer. What should dealers be focusing on to ensure growth and a sustained future in 2014? Customer service, retention programmes and building word-of-mouth recommendation. We, the manufacturer, will continue to invest in outstanding new products and increasing brand awareness that will attract new customers to our dealers. Once there, the service that dealers offer to customers will determine future loyalty and therefore sustained growth.

Trevor

Finn

pendragoN: Dealers should focus on retail sales to customers

What opportunities do you think 2014 will present? The main opportunity in 2014 for us will be to maximise the new car opportunity. The new market will continue to be strong, driven by offers, and this will drive retail demand. When this demand is satisfied, cars will be pushed into the short cycle and this will then reduce retail demand. What do you regard as the biggest threat to the motor industry in 2014? A pick-up in demand in Europe could make this market less attractive to manufacturers. Are there any reasons to be cheerful in 2014? Lots. However, I would take the certainty of a repeat of 2013 rather than the prospect of a better 2014.

The new market will continue to be strong, driven by offers.

What are you most excited about in 2014? Our plans for growth. Pendragon is in a great position to grow and we are looking hard at these opportunities. Can you see the current period of strong new car sales continuing? If so, for how long? New cars in 2014 should grow and this may continue into 2015 if the market continues to move to payments financed by the car manufacturers. Do you think the motor industry needs to change and where should it come from? The industry is constantly changing, mainly in response to external forces. There does not seem to be a force from within that will change the base business model for car deals or manufacturers. What should dealers be focusing on to ensure growth and a sustained future in 2014? Dealers should focus on retail sales to customers. Whilst doing this they should try to reduce costs. This seems potentially impossible as greater value to customers usually lifts costs to dealers. To be sustainable in business we have to achieve both.

Mini CV Job title: Chief executive officer, Pendragon. Lives: Derbyshire Drives: Jaguar E-Type Family: Married, three children Education: Left school at 15. Gained diploma in business management at night school. Career: Joined East Riding Co-op as an apprentice technician after leaving school. Went to Alisons BMW in Hull in 1977, eventually becoming general manager. Appointed MD of Williams Holdings plc Vehicle Division in 1982. Division listed on Stock Exchange in 1989 to become Pendragon. Made CEO. Number of dealerships 250

Customer care is more important than ever AFTER reading the thoughts of our Automotive Influencers, the feeling among the majority would seem to be one of cautious optimism â&#x20AC;&#x201C; while taking absolutely nothing for granted. It doesnâ&#x20AC;&#x2122;t need pointing out that the last five or six years have been pretty tough for everyone, so to read that so many influencers think there are reasons to be cheerful at the start of 2014 is very welcome. Another key point that emerges is that it has never been more important to put the customer first. With such a bewildering array of choice in the market, the biggest rewards await the manufacturers and suppliers who stand out from the crowd. DAVE BROWN CarDealerMag.co.uk | 61

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 made it our most successful ever. +HUH¶V WR DQRWKHU \HDU RI SUR¿ WDEOH SDUWQHUVKLSV LQ

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

FEATURE.

Nick

Horton supagard: New products and services coming to the market in 2014

What opportunities do you think 2014 will present? 2014 provides the opportunity for organisations to win by being bold. The future will belong to those that have the confidence and credibility to operate in a bold manner. The business world is now so congested that only those who have a significant and dramatically different story will gain market share at an increased pace. What do you regard as the biggest threat to the motor industry in 2014? Complacency. The possibility of complacency is increased when an improved performance is delivered. Many organisations will have focused on operating in a specific way to deliver a strong performance in 2013. The key is to not only maintain the consistent delivery of such processes but to also be open to the possibility of enhancing processes with a view to further developing key performance indicators.

My personal view is that there is a vast array of reasons to be cheerful in 2014.

Are there any reasons to be cheerful in 2014? We all have a choice regarding reasons to be cheerful. We possess the ability to make a conscious decision regarding our level of optimism in 2014. My personal view is that there is a vast array of reasons to be cheerful in 2014. What are you most excited about in 2014? We are most excited about the new products and services we will be bringing to market in 2014. Important investment has been made in product research and sales technology in order to offer current and prospective clients an innovative approach to vehicle-protection systems. Can you see the current period of strong new car sales continuing? If so, for how long? December 2013 represented the 22nd consecutive month of growth in new car registrations in the UK. Whilst I see the strong new car sales performance continuing for the foreseeable future, I expect the actual level of growth to stabilise during 2014, most likely to a level of between one per cent and three per cent over the year. Do you think the motor industry needs to change and where should it come from? We really donâ&#x20AC;&#x2122;t have a choice in the matter. Change is a constant and is happening within our industry

Mini CV Job title: Sales director. Age: 45. Lives: Nottinghamshire. Drives: Volvo XC60. Family: Married, two children. Education: Studied O-levels at a Nottinghamshire school before undertaking A-levels during the sixth form. Thereafter, completed a National Business Diploma at Clarendon Academy. Career: Spent the first five years of career with the civil service before joining the motor industry in 1992 as a sales executive. Promotions to business manager and sales manager followed before moving into the training and development sector. Has represented Supagard as sales director for the past five years.

right now, possibly at a quicker pace than ever before. The source of change should be a combined effort from vehicle manufacturers, franchised retailers and industry suppliers. Those that innovate and embrace change will be the pioneers of our industry. What should dealers be focusing on to ensure growth and a sustained future in 2014? Making themselves easy to do business with. In the cauldron of online and offline sales activity, being incredibly easy to do business with provides a critical advantage and reduces the level of prospect attrition at the initial inquiry point. For example, what percentage of telephone sales inquiries are able to connect with the correct business representative at the first attempt? Introducing such metrics and improving associated performance will facilitate growth in 2014 and greater prosperity thereafter. CarDealerMag.co.uk | 63

FEATURE.

Lance

Bradley MITSUBISHI: The factors that resulted in strong growth in 2013 are still present What opportunities do you think 2014 will present? For Mitsubishi, 2014 will be another year of dramatic growth. New products and improving exchange rates mean we expect to be the UK’s fastest-growing mainstream brand in 2014, as we were in 2013. Our most significant new product will be Outlander PHEV – our first plug-in hybrid. This is going to be the first hybrid from any manufacturer that is not only an excellent vehicle in terms of ability, performance, efficiency, etc, but will make financial sense for customers too. What do you regard as the biggest threat to the motor industry in 2014? It’s possible that the run-up to the general election could cause some uncertainty over future policy on issues like tax and grant support for ultra-lowemission vehicles. That would be unwelcome. But overall, I’m expecting 2014 to be another very good year.

model is still marginal in areas where property and

labour costs are high. This is particularly important

‘Our Outlander PHEV is going to change the way people think about hybrid vehicles.’

Are there any reasons to be cheerful in 2014? Plenty. The UK economy is on the up, consumer confidence is coming back, interest rates remain low and people are starting to spend money again. What are you most excited about in 2014? For Mitsubishi the most exciting thing about 2014 is the launch of our Outlander PHEV. This is a vehicle which will challenge the current perception of what a hybrid vehicle should do and how much it should cost. It will change the way people think about ‘alternatively’ fuelled vehicles. Can you see the current period of strong new car sales continuing? If so, for how long? I can. January has started well, and the factors which resulted in growth in 2013 are still there. The one thing that might change is other European economies recovering and some manufacturers taking some focus off the UK and on to places like Germany. But I still think the UK market will grow strongly again this year. Do you think the motor industry needs to change and where should it come from? One key issue which needs addressing is the cost of representing a franchise, especially in big cities. At Mitsubishi, we’ve tried to reduce what we consider to be unnecessary costs, but even in a profitable franchise like ours, the traditional dealer ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Mitsubishi Motors in the UK. Age: 48. Lives: West Berkshire. Drives: Mitsubishi Evo FQ-400 & Jaguar E-type. Family: Wife and step-daughter. Education: BSc in mechanical engineering from Salford University. Career: Ford Motor Company from 19882000, Mitsubishi Motors 2000-present (MD since 2009). Number of dealers: 108.

for selling a vehicle like the Outlander PHEV, where the customers most likely to benefit are those who live in exactly those areas. We will have a solution to this before the end of the year. What should dealers be focusing on to ensure growth and a sustained future in 2014? Mitsubishi marketing spend will increase 300 per cent in 2014, so our dealers will need to focus on coping with that extra showroom traffic. As part of that, the Outlander PHEV will bring in customers who have never thought of Mitsubishi before, many of them from German brands. We’ve been working on customer satisfaction for many years. It’s now over 85 per cent, so we’re confident of giving those customers a great experience. The focus needs to be on coping with the extra volume without compromising quality of service.

Scott

Sinclair googlE: Not knowing your return on investment is not an option

What opportunities do you think 2014 will present? The greatest opportunity for dealers lies in mobile to ensure that their presence is fully optimised across new, used and aftersales businesses. Consumers are increasingly exposed to sophisticated mobile experiences in other retail sectors, with those who moved quickest starting to see the benefits. Why should their experience with dealers be any different? What do you regard as the biggest threat to the motor industry in 2014? The pace of change continues to accelerate and dealers are already some way behind other industries when it comes to digital. There are many who continue to invest in traditional marketing channels that are unable to deliver attributable profit back into the business because that’s what they have always done! In today’s world, flying blind and not knowing your return on investment is just not an option. Are there any reasons to be cheerful in 2014? Absolutely. The economy is recovering, there is a continual stream of exciting technology innovation, and car buying is back to pre-recession levels. I also think it is very exciting that dealers are finally starting to embrace digital as a vital component in their business plan and continue to invest. However, it is critical that digital is not executed in ‘silo’ and is fully integrated into every aspect of the business. What are you most excited about in 2014? The continued importance and investment in digital is critical and I’m excited about helping dealers align their marketing and business objectives with today’s digitally-connected consumer. Despite the continued evidence of changing consumer behaviour (growth in mobile, importance of social, importance of video), can we really say that the experience of car buying has changed all that much? Can you see the current period of strong new car sales continuing? If so, for how long? As an onlooker to the industry, my sense is that we will see sustained growth in the industry until 2017, but I’m reluctant to get too excited so soon after such a difficult couple of years. For me, it’s

Dealers are already some way behind other industries when it comes to digital.

Mini CV Job title: Industry manager, automotive dealers and parts. Age: 29. Lives: London. Drives: ZipCar. Family: Engaged. Education: BSc Hons (computer science) and post-graduate in entrepreneurship. important not to become reliant on the flow of cheap credit, and instead ensure that dealerships adapt fast in this digital world and win the moments that matter with customers. Do you think the motor industry needs to change and where should it come from? The challenge of ‘who’ is the right person to own the relationship with the customer (manufacturers

or dealer groups) is becoming a digital battleground. Manufacturers want to build brand loyalty, and multi-franchise dealerships want to be the ‘go to’ destination for every automotive decision throughout a customer’s life. Dealers and manufacturers need to get together and work out a way to be more collaborative and deliver one seamless great experience for customers. What should dealers be focusing on to ensure growth and a sustained future in 2014? 2014 is set to see the tipping point where use of mobiles and tablets overtakes desktop in vehicle research. For dealers who are not visible across all devices at every stage of the customer research journey (2.7 months for new car buyers and 1.7 months for used car buyers), they will simply fall out of consideration as buyers narrow their choice of make, model and dealership. This means dealers need to be ‘always on, across all devices, and always engaging’. CarDealerMag.co.uk | 65

FEATURE.

Jamie

Dixon gforceS: Understanding new finance legislation will cause frustration for some

What opportunities do you think 2014 will present? 2014 is set to be a fantastic year for the industry. For starters, the economy is less fragile – the IMF recently raised predicted growth to 2.4 per cent for 2014. The employment situation is also improving slowly, and where automotive is concerned there is a fantastic choice throughout the industry productset, aligned to optimistic dealer activity. New car sales will continue to be strong, if not quite 2013 levels, helping to keep the industry buoyant. What do you regard as the biggest threat to the motor industry in 2014? Complacency – refusal to adapt – is a threat. The industry has an abundance of entrepreneurial spirit, but the tools needed to scale this mind-set through organisations are often missing. Customer expectations are at an all-time high, and marginal improvements in speed of response can result in large gains in conversion and profitability. UK car production may have hit 1.5 million, but with four out of five being exported there is a global reliance, meaning issues abroad could hit home too. Are there any reasons to be cheerful in 2014? Always be positive. Looking at problems, challenges or even questioning the unknown with an enthusiastic mind-set is a key attribute of success. We are living in the information era, so those pioneering and developing the bridge between information, transaction and customer experience will have a fantastic year. On a sporting level, the World Cup will bring the nation its ‘caffeine buzz’ during June – and let’s simply hope the weather behaves itself.

Where automotive is concerned there is a fantastic choice throughout the industry.

Mini CV Job title: Sales director. Age: 37. Lives: Kent. Drives: Porsche. Family: Partner. Education: Public. Career: Director with background in automotive retail.

What are you most excited about in 2014? I’m excited by the arrival of many new fantastic models from numerous manufacturers. The BIG challenges thrown down by vehicle regulation have made manufacturers develop some incredible products.

for some and ultimately impact on sales figures for those retailers that don’t keep up with it.

Can you see the current period of strong new car sales continuing? If so, for how long? As long as interest rates and the ability to borrow remain affordable then yes, it should be a relatively good year. However, understanding the new finance legislation will no doubt cause frustration

Do you think the motor industry needs to change and where should it come from? The industry is resilient, but through the unique view of the industry we have as businesses one customer message is clear: they want more control. The retail experience doesn’t match the high value

��| CarDealerMag.co.uk

of the product people are buying, online to offline blending is poor, and customer-retailer interaction is inconsistent. Retailers need to make more of the leads they have rather than focusing on increasing volume. What should dealers be focusing on to ensure growth and a sustained future in 2014? Collaboration between retailers and OEMs with regards to the provision of tools and practices that support retailer businesses will drive success. Truly embracing digital is key to this, but doing so requires an attitude change, driven by training and product implementation, from viewing the web as a marketing tool to using it as a platform through which one-fifth of consumers (and rising) prefer to transact. In summary, those that recognise the days of the ‘counter-based, control sale’ are gone and become the ‘friend and adviser’ of the customer will be set for a strong future.

Ambition. Focus. Drive.

0845 658 9290 info@gforces.co.uk | www.gforces.co.uk

CarDealerMag.co.uk | 67

INFLUENCING THE INFLUENCERS DIGITAL SOLUTIONS THAT HELP YOU SELL MORE CARS As the leader in automotive digital solutions and services, autotorq delivers marketing efficiencies and competitive advantage to manufacturers and dealer groups. We do this by revolutionising the way they interact with their customers on the web. If you want to know more contact us on enquiries@autotorq.com / 0844 243 5310.

PROVIDING GLOBAL SOLUTIONS IN 30 LANGUAGES ACROSS 60 COUNTRIES ��| CarDealerMag.co.uk

FEATURE.

Paul

Gordon autotorQ: It’s important to enhance the exciting car-buying process

What opportunities do you think 2014 will present? Technology: Dealers will have the tools and commitment to use digital channels more effectively – especially CRM. Product: The last few years have seen major investment by OEMs and we will see a host of spectacular new cars with awe-inspiring features especially in the electric space. Economic: A more certain economic climate will create the biggest sales opportunity since the start of the recession. What do you regard as the biggest threat to the motor industry in 2014? The changing consumer. Consumers are more knowledgeable and more empowered than ever. Retailers are either thriving or dying and the car-buying process is not divorced from luxury, high-consideration retailing. There is a real danger in terms of complacency with regard to understanding consumers’ changing needs. If dealers do not offer added value, they will cease to have a reason to exist. This threat is now real, not five years away. Are there any reasons to be cheerful in 2014? Survival of the fittest. Those car brands and dealers that have survived the challenges of the last five years are in a good place to thrive. If you are still in business after the famine it is because you have addressed the key business challenges and are well-placed to grow and thrive in the feast. What are you most excited about in 2014? Connected Car. Connected Car is a key driver for the Internet of Things. The consumer need to be connected at all times in all places. The internet is a not computer-based browser any more but the means by which we manage our business, our personal life and everything else. The car, as the place we spend on average two hours a day in, is key to this. I’m also excited about electric cars – now an option for people who love cars Can you see the current period of strong new car sales continuing? If so, for how long? The market will be good for the next three years or at least until the next general election. Confidence is back to 2007 levels, interest rates are going to be low for the medium-term and dealers are

If dealers do not offer added value, they will cease to have a reason to exist.

Mini CV Job title: Managing director, Autotorq. Age: 46. Lives: Hertfordshire. Drives: Audi. Family: Wife, three children. Education: Degree from London Business School. Career: Advertising, followed by digital marketing.

interested in doing deals. The pent-up consumer demand for a new or used car will last for a while at least. However, the government will be anxious about consumer debt so this may impact on spending at some point. Do you think the motor industry needs to change?

Yes, it needs to be consumer-led not sales-led and take its lead from successful businesses operating in other sectors. In retail we live in the Amazon age, which is the gold standard for retailing. Dealers need to study and take what works for their business just as John Lewis has. Equally, there is no reason why Apple or Samsung can’t go into the OEM space. If they did, the cars would be beautiful to look at, have great functionality and be loved by consumers. What should dealers be focusing on to ensure growth and a sustained future in 2014? Dealers must focus on the customer experience in the showroom and online. Buying a car is an exciting process – enhance it – don’t suffocate it. This impacts on the people who sell, who service and the methodology that sits behind the people. If your people are doing exactly now what they were doing 10 years ago they are doing something wrong. CarDealerMag.co.uk | 69

FEATURE.

Bob

Feltham contacT advantage: The temptation to buy new is irresistible

What opportunities do you think 2014 will present? For new car sales the opportunities are strong. Technology is driving better running costs through MPG and lower tax discs combined with low-cost finance. This makes changing the car into an understandable monthly overhead with a lower risk more attractive than running an older car with poor MPG and perhaps an unknown reliability factor. This can be the perfect reason to opt for new. Manufacturers are delivering the best-ever product to showrooms and the temptation is irresistible for consumers.

Failure to adapt and adopt is the threat for the traditional industry.

What do you regard as the biggest threat to the motor industry in 2014? Failure to adapt and adopt is the threat for the traditional industry. The industry recognises the failure of many showroom teams to adapt to mobile customer information and shopping habits. The threat is failing to respond to customers who are developing their car-shopping process faster than the outlets and management. Are there any reasons to be cheerful in 2014? Many reasons to be cheerful exist, and not just because of the technological advancements that companies like Contact Advantage provide. Footfall into showrooms has started well in 2014 and our manufacturer hubs monitor this daily. The economy is stable and growing, used car residuals are strong, so customers still exist in good numbers. What are you most excited about in 2014? Other than England doing well in Brazil? The most exciting prospect for 2014 is the continued move from conventional trade to the mobile ‘wi-fi’ experience. The fact that sales teams can rotate to ‘open’ the store until 9pm using online tools gives customers who graze and flag interest on dealer group or manufacturer websites quality responses. All good online businesses have these processes wrapped up. Automotive retail is much the same as any other online offering such as Amazon, John Lewis or Marks & Spencer. Can you see the current period of strong new car sales continuing? If so, for how long? The forecast is steady single-digit growth after January for new and used. When will it all end? ��| CarDealerMag.co.uk

Mini CV Job title: Business development director. Age: 59. Lives: Milton Keynes. Drives: BMW 730. Family: Married. Education: Educated in Malaya until aged 12. Left school at 16 with 10 O-levels. Later went to Reading University. Career: Retail with Sears then moved to Daewoo in 1994 as the retail expert and stayed there until the company’s sale to GM. Network performance manager for eight years, selling 34,000 new and 34,000 used cars, grabbing a 1.5 per cent market share. Renault Nissan Consulting, ops director at WLMG and senior consultant at Contact Advantage.

When interest rates rise, the growth will stop as uncertainty creeps into household budgets. Do you think the motor industry needs to change and where should it come from? The motor industry needs to develop more than change. Sales and service are still requirements for all customers so change is probably too strong a word. Making sure customers understand the value of quality, long-term relationships and a highly visible existence is key. What should dealers be focusing on to ensure growth and a sustained future in 2014? Giving teams the tools to perform, coupled with focus on cost control using the latest thinking. Using smart marketing from and back into mobile devices is part of the first step to keeping up with customers. It also reduces costs and improves speed of action – something customers expect in today’s world.

contact-advantage.com

W NE

Ditch the Desk

The new fully integrated mobile showroom app. It’s going to change the way you sell cars forever!

Conﬁgures model, spec and colour

Works seamlessly with CA Global Hub

Works seamlessly with existing CA showroom system

Prepares accurate quotes for pricing

Prepares ﬁnance, trade-in and order details in the showroom, or on the forecourt

Presents high quality, consistent imagery and video that works seamlessly with the brand identity and marketing message.

“A huge beneﬁt and a great sales tool” “I’ve never come across a system that makes data capture any easier than this”

CA Data Hub

1. The CA Data Hub gives manufacturers and large dealer groups a complete view of their network and provides two way communication in real time. 2. Can be integrated with all the major showroom systems and DMS providers or with a bespoke dealer portal. 3. Allows fast feedback from marketing activity, lost sales analysis, new model launch and much more, allowing for a quick and informed response. 4. Can be rolled out on a national level with minimal effort and cost.

Call or email now for more information or to arrange a demonstration. Web. www.contact-advantage.com Email. sales@contact-advantage.com Telephone. 08452 262650 CarDealerMag.co.uk | 71

Measurable support and service so you can build on your proﬁts Isn’t it better when you can measure your success? At AutoProtect we work hard to understand your goals and the way you work, so the added-value products we know you’d like to offer your customers can be integrated with your approach and customised to ﬁt. Add our sales support and training, plus AutoProtect’s sophisticated IT systems – giving you up to the minute management information and sales reporting – and you have a powerful set of tools in your hands.

For more on how we can help you grow your revenue and measure your proﬁts, call Mike Macaulay on 0871 384 1167 Alternatively email us at sales@autoprotect.co.uk www.autoprotect.co.uk ��| CarDealerMag.co.uk

FEATURE.

David

Shapiro autoprotect: The industry must change due to new regulations

What opportunities do you think 2014 will present? The UK car market has been growing ahead of the general economy, and should that continue during 2014 consumer confidence will follow a similar pattern. However, the customer will remain ‘valueconscious’, which does not mean price exclusively. The dealer offer needs to be a wider one built around service, stepping beyond the car sale alone. What do you regard as the biggest threat to the motor industry in 2014? With the European economy still going through difficult times and the UK car market being second only to Germany, manufacturers will tend to think the UK is doing much better than it actually is. This could lead to an increase in already highly active pre-registration volumes. As yet, we cannot predict what the forthcoming FCA regulatory review will bring. However, as always, we recommend dealers support Treating Customers Fairly principles to avoid falling foul of regulations however they may change.

If England do well in the World Cup, it should have a positive effect on car sales.

Are there any reasons to be cheerful in 2014? Yes, plenty! To be candid, there always are; it is a matter of seeking the opportunities. In 2014, those opportunities will, as always, mean embracing change. What are you most excited about in 2014? Besides the World Cup? What are the chances of a good performance from England? If they do well it should have a positive effect on car sales. Workwise, I think the most dynamic area will be in F&I. As mentioned previously, I do believe the FCA regulatory review will cause a significant change in the way products are sold, and at AutoProtect we feel well prepared for this. Can you see the current period of strong new car sales continuing? If so, for how long? I think we will see continued growth but a likely reduction in manufacturer support. If the wider EU picks up its sales activity, we will see growth slow. I suspect the bonus structure will also shift in some brands away from volume. If, as suggested, a proportion of increased UK sales last year was due to PPI claim payouts and cheap financing, as these factors cease to have an impact, the rate of growth could slow down.

Mini CV Job title: Chief executive officer. Age: 66. Lives: Epping, Essex. Drives: Mercedes-Benz S500. Education and career: After leaving school, David went to work for an insurance firm and was placed on a fast-track training programme. He then moved to Lloyd’s of London. In 1982, he set up his own company, which he sold in 1994 to Oriel Group plc, and was appointed as a director of the holding board plus the operating companies. He’s one of the founder shareholders of AutoProtect, formed in 2004.

Do you think the motor industry needs to change and where should it come from? Yes, it must change. New FCA regulations and an increase in digital usage by consumers make this a certainty. The battle to win consumers’ hearts and minds online will be vital, and this should lead to a different sort of marketing that is focused upon value creation rather than price and include a whole-ownership experience with options such as service plans. What should dealers be focusing on to ensure growth and a sustained future in 2014? Re-engineering their businesses around the consumer in a far deeper fashion than ever before. The focus should be upon making it easier for the customers to buy, rather than selling to them. For many in the industry this will be a sea change. Supporting this, dealers must work to offer more than just car sales. Customer-relationship management is a central requirement. CarDealerMag.co.uk | 73

FEATURE.

Anton

Hanley auto networK: More consumers will turn to the internet in 2014

What opportunities do you think 2014 will present? 2014 will bring increased opportunities to run a profitable business. New car sales are being tipped to be anywhere from one per cent up to 10 per cent up on 2013, which means new car registrations are basically getting back to the dizzy heights of the pre-recession boom days. I expect the forecast increase in registration numbers to come from the fleet market, which has not yet truly rebounded since the dip. What do you regard as the biggest threat to the motor industry in 2014? My top three threats are: 1) The FSA placing a 2014 deadline on PPI payouts, which would have an impact on retail sales. 2) Europe rebounding quicker and stronger than expected, which would have a supply impact on the UK new car marketplace. 3) Dealers not embracing new technology across the spectrum from sales to back office.

Baby boomers are showing an ever-increasing propensity to use and shop on the web.

Are there any reasons to be cheerful in 2014? My top three reasons to be cheerful: 1) Strong sales environment. 2) Great new vehicles coming to the market to satisfy consumer demand from a technology and fuel-efficiency perspective. 3) Rebound in the fleet market. What are you most excited about in 2014? The fact that more consumers than ever before will use the internet to research and buy their next new car. Baby boomers are showing an ever-increasing propensity to use and shop on the web, while a recent report showed that a third of those under 35 years old said that they would happily buy online, with at least 80 per cent of those stating that they researched online prior to ever setting foot in the dealership. So, increased connectivity and speed of connectivity, paired with an increase in consumer appetite to shop and buy online, equates to a greater opportunity for OEMs and dealers to help inform and sell to car buyers online. Can you see the current period of strong new car sales continuing? If so, for how long? Yes, certainly throughout 2014. Do you think the motor industry needs to change ďż˝ďż˝| CarDealerMag.co.uk

Mini CV Job title: Managing director. Age: 31. Lives: Liverpool and London. Drives: Press cars. Family: Partner. Education: University of Life. Career: Spent 12 years building The Auto Network. The company works with more than 4,000 dealers.

and where should that change come from? Certain aspects of the motor industry are starting to change at a considerable rate, such as car retailing. Consumers today want to consume new car information via myriad sources via myriad devices, so itâ&#x20AC;&#x2122;s vital for car dealers to change in conjunction with consumer research and buying habits so that they do not lose their market position. Change needs to come on the back of market changes, although it needs to come from a position of understanding and belief rather than just a box-ticking exercise. What should dealers be focusing on to ensure growth and a sustained future in 2014? The focus should stay the same: revenue, customer service, retain and recruit the best staff, etc. However, the way of achieving these things is changing and the key is to recognise that and adapt and evolve the business to meet those needs. [CD]

CarDealerMag.co.uk | 75

FEATURE.

In the pink . . . and into the future with Caroline’s Cars The owner of a successful female-friendly garage in Norwich has big plans to expand her business. Sophie Williamson-Stothert reports

o matter how much we try to ignore it, the world of vehicle repairs is still a male-dominated one. Even today, some female drivers suffer at the hands of patronising mechanics with chauvinistic attitudes. But it only takes one to make a difference. Caroline Lake, 43, is the brains behind Caroline’s Cars – a small but bright vehicle repairs garage on a Norwich industrial estate. Even with two children to look after, Caroline was determined to set up her own business. ‘I always knew I wanted to fix cars and build a career in the motoring industry, but I only ever used to tinker around with cars when I was helping my dad,’ she says. ‘It wasn’t really common in the ’70s and ’80s for girls to be involved with cars and mechanics.’ Caroline actually kicked off the early stages of her career as a car importer, which saw her buying and selling Japanese cars directly to customers who wanted a vehicle they couldn’t buy in the UK. But just knowing about the vehicle specifications and their 0-60mph times wasn’t enough for Caroline. Caroline She wanted to be able Lake to get her hands dirty under the bonnet and learn exactly how to fix and repair the cars she bought. ‘I was really keen to learn more about the cars I was dealing with because, at this point, I couldn’t even change a pair of brake pads,’ she explains. ‘I knew the facts and figures but couldn’t actually carry out any work, and that’s when I decided to become a mechanic. ‘I went to Ashwellthorpe Garage in Norwich, which is where I took the cars I imported to be serviced, and asked if I could become an unpaid apprentice working one day a week. My boss at the time said, “That will be a laugh and will upset the locals; you’re hired!”’ Caroline didn’t always have an easy journey training to be a mechanic, especially back in the late-1980s and early-1990s, when the motor industry was even more of a man’s world. Nevertheless, she knuckled down and eventually became a fully-qualified mechanic in 1996. ‘It was still a very stereotypical world back then,’ says Caroline. ‘It was known as a boy’s world. People would often curse, “Women don’t fix cars!” and were completely baffled at the sight ��| CarDealerMag.co.uk

of a girl in the workshop. But I overcame the motoring industry by helping to encourage them comments and got on with my job. After putting to become mechanics and engineers – young in all that hard work and the extra hours, I soon women aren’t informed enough at school or became a qualified mechanic.’ encouraged in any way to become mechanics,’ Caroline didn’t stop there. In 2003, she she explains. successfully passed her test to become a So what’s next for Caroline’s Cars? After professional Nominated Tester, meaning she hearing what she has in mind, it won’t be too could now carry out MOT tests. long before neon pink overalls are de rigueur ‘Becoming an MOT tester attracted more in towns right across the UK – and not just in customers to the business, both male and female,’ workshops but used car sales outlets too. she says. ‘The women felt happy and at ease to be ‘My aim is to franchise Caroline’s Cars and I’m dropping their car off with another woman who already 70 per cent of the way there,’ she explains. they knew would tell them exactly what would ‘In the next few years, I happen to their car, while men felt reassured that hope to have an outlet I wouldn’t try to rip them off.’ in every town across But that didn’t stop the occasional chauvinist the country. The from making the odd dig. brand image ‘As you can imagine, some men would come will remain the in and be completely puzzled by me,’ says same, and in Caroline. ‘They would assume I was the an ideal world secretary until they realised I would all my future actually be working on their car. workshops They would say to me, “But you’re a will be run by woman,” and it’s still the same today.’ females dressed in hot pink Caroline knows that motorists are overalls – that’s still mistreated or led astray by the few unfriendly mechanics left in the industry. the next step It’s a problem faced by all drivers – male for Caroline’s and female – so in order to improve the Cars.’ [CD] situation, she decided to set up her own workshop in 2004. ‘Sadly, there are still so many men and women who get treated badly in the motoring industry, and I was determined to put a stop to it,’ says Caroline. ‘Women in particular seem to be an easy target, sometimes being charged higher prices or even ripped off completely – I get lots of customers telling me how glad they are to have found us.’ It doesn’t stop there, either. Caroline is determined to help young women break into the world of fixing cars and does her bit by running monthly vehicle-maintenance workshops. She also attends schools to talk to teenagers about Sophie did her vehicle mechanics and how they best not to put can get a career under way in the a spanner in the automotive industry. works . . . ‘I actively support women in the

Sophie’s day at Caroline’s Cars Sophie spent a day with Caroline and her team at Caroline’s Cars, who, we should mention, aren’t all female. There was a catch, though: Sophie had to don a pair of pink overalls and help out with a few basic repair and maintenance jobs – all under the watchful eye of the professionals, of course. Pictures by Mal Hay.

9.00: It’s time to slip into my (not-so-

flattering) neon pink overalls and rugged work boots. First things first of course – let’s get those garage doors open. But before I do that, I must quickly switch the pink kettle on.

9.32: There are two customers’ cars in the

garage, which the boys are already working on, and there are plenty more waiting to be fixed outside. With not enough hours in the day, time is of the essence! A Renault Laguna is awaiting a full gearbox replacement. Bending down to piece it back together wouldn’t be such an issue if these pink overalls weren’t so short in the leg.

Sophie showed she wasn’t afraid . . .

. . . to get her hands dirty in the workshop

10.05: The other gals aren’t in today, so it’s just me and the two lads in the workshop – we’ve got about five cars to keep us busy. I’ve got the Laguna raised up on the ramps and am preparing to give the car a quick inspection. I can’t help but wonder why the boys aren’t in pink overalls like me. If I’m standing out like a sore thumb, surely they should be too?

11.42: As it was nearly time for lunch, and

10.28: So far, I’ve managed to get myself completely filthy while piecing together the sadlooking Laguna’s new gearbox. My hands are covered in gearbox oil, and to be honest, it looks like I’ve washed my hair in it too. It’s safe to say my pink overalls aren’t as pink as they were before I started work – one classy look.

12.18: It’s time to catch up on some administration. Believe it or not, my folder is pink, my pen is pink; in fact, the entire office is pink – almost to the extent where I think I should be wearing sunglasses. I’m also intrigued by the pink Caroline’s Cars merchandise. What a brilliant garage! You can get your car serviced and walk away with a pink drawstring bag or personalised key ring.

3.24: By this point I’ve established that I urgently need a shower. Now it’s time to clean my hands and get the tools cleared up. By this point, the phone is ringing off the hook with new and regular customers wanting to book in their cars.

12.59: I’ve made a few calls, I’ve booked in

4.02: No-one likes doing this particular job

11.15: Having spent a good two hours working my way around the gearbox, fiddling around with numerous bearings, cogs, mainshafts, layshafts and syncro sleeves, and learning how it will seal back to the clutch, I was gasping for another cup of tea. But I was feeling quite satisfied about the promise I was showing as a mechanic.

we’d already made good progress on the Laguna as well as a Ford Focus that came in for a service, I put on my thinking cap. I decided to explore the workshop and had a look through the toolboxes. I’m pleased to say I didn’t have to use the grinder I came across: that would have sent sparks flying – literally.

a few cars and I even think I may have made myself some new friends – it’s incredible how from the moment you tell someone (a man) that ‘Yes, I’m a female and yes, I’m a mechanic,’ they seem to have a funny turn. It all gets a little awkward, however, when one gentleman asks if I can perform an MOT – I’m not qualified in this area.

tea in one hand and a spanner in the other is starting to feel quite normal.

2.56: Now it’s time to get back to the dirty

business. I’m going to help change the oil on a Focus and then change the brake pads on the Laguna I was working on earlier today. Not much can go wrong when changing brake pads, but when there’s oil splashing around, sometimes most of it ends up on you rather than in the car itself.

but it has to be done – that’s right, I’ve been put on broom duty.

5.00: Job done! It’s time to close the doors of the garage and lock up for the evening.

1.08: I was quite impressed when I stumbled across a little Classic Cooper, which Caroline is currently doing up. Sadly, I’m not able to work on this one today. 1.41: Funnily Give Trigger his broom back, Soph!

enough, walking around with a cup of

Sophie was in the pink at Caroline’s Cars CarDealerMag.co.uk | 77

FEATURE.

TRADING UP

Can we turn our £2k After the success of our Trading Up feature two years ago, we’re doing it all over again! So, it’s 2014 and Car Dealer Magazine’s popular Trading Up feature is back again. Well, we say popular. We have no proof of that, but we’ve used it as an excuse to have some more fun trying to turn the sum of £2,000 into something vaguely supercar-shaped. You might remember that last time we did this, Car Dealer’s MD James Baggott and TV’s very own Mike Brewer were engaged in a mighty battle to see who could turn the biggest profit with a succession of shrewd and clever deals. WHY I MUST BEAT MR BAGGOTT As you’ve already read, we’re starting the second incarnation of our Trading Up feature with the relatively paltry sum of £2,000 – and we’re determined to turn it into a supercar! To pull this off would clearly be no mean feat and I’m putting my head well and truly above the parapet. If I can’t beat Mr Baggott at this game given my past life, then I’m never going to live it down! Firstly, I’ve set myself up with all the normal tools that dealers need. Online trade accounts – check! Provenance and valuations tool courtesy of HPI – check! And the all-important trade insurance, courtesy of Unicom insurance – check! As soon as they found out it was for charity, the guys at Unicom set us up with an all-singing, all-dancing policy, covering me and Mr Baggott, though why exactly he needs to be on

‘‘

Well, Mike emerged triumphant and kindly donated his spoils to this fresh challenge, which is taking place in aid of Great Ormond Street Hospital. This time, the format’s slightly different. Car Dealer’s very own Brewer wannabe, ops director Andy Entwistle, is taking the reins and flying solo (apologies for the mixed metaphor) and he’s convinced that he can do well. He has certainly got a challenge on his hands! And from now on, he takes up the story . . .

there is beyond me. I don’t want him sabotaging my plan! We secured our first stock before Christmas, in the shape of a 2003 Suzuki Grand Vitara. This came with low mileage and was in far better condition than you might expect. We paid a little over the odds for the car, simply down to the lack of older, cheaper stock out there. We were also keen to try to take advantage of the terrible weather we’ve been having, as you’ll all know. Decent older stock is hard to come by, but this Vitara was a great little runner and certainly got me out of a hole or two over the festive season when the floods hit the New Forest. Sadly, luck wasn’t on my side at the end of December. During a particularly ferocious storm on Christmas Eve, a large branch was broken off a tree outside Entwistle Towers. It clouted the Suzuki square in the face, cracking the windscreen – and it even went on to dent the side of the wife’s car.

This super little Vitara got me out of a hole or two over Christmas

After a call was made to a friend for a deal, £200 later we had a new screen. Needless to say, all this was bound to have an impact on our hoped-for profit margin. Added to which, although it has certainly been wet and windy for weeks on end now, snowy and icy conditions were noticeable only by their absence, meaning our plan to cash in on the Grand Vitara’s 4x4 credentials took a bit of a knock too. Still, it’s early days in this whole challenge, so we mustn’t get too downhearted. And as we speak, the guys at Auto Trader have kindly given us some space on their site in the form of a free advert to move the car on, so hopefully by the time you read the next episode the little Suzuki will be gone with a little profit and we’ll be on to the next step. I have 12 months to get us something fancy – anything better than an early 996 will do. So now the begging bowl comes out. If you fancy helping us reach our target and have any little PXs that you don’t know what to do with, drop me an email! Anything that’s a bit of a bargain would be great. [CD] Andy Entwistle @CarDealerAndy

Unicom Insurance Services Ltd Motor Trade Insurance Specialists Est. since 1992 ��| CarDealerMag.co.uk

• Motor Trade Road Risks • Motor Trade Liability • Combined Insurance • Uninsured Driver Cover

into a supercar? STOP PRESS WELL, I know some people may knock them, but you simply can’t fault the results that Auto Trader gives. Our ad went live on a Friday evening, we had two calls the following morning, and I had a wad of cash in my hands and a Vitara-shaped hole in the car park on Sunday! Our buyer, Mike, came down from sunny Winchester to an even sunnier Gosport (for a change). He brought his wife and a mechanic friend, and after a show around and check over they took the car for a drive. The Vitara was just a good, clean, honest little car that couldn’t be faulted, and as soon as they came back, a deal was struck at £1,950. Sadly, our real-life profit wasn’t £450. The incident with the storm and the trees took care of £200 out of that, and we had to pay a few quid to get the car collected because of a hectic schedule at work. Never mind, we made a few quid, but if I’m going to beat Mr Baggott, the next one really does need to bag me a bit more.

‘Decent older stock is hard to come by, but this Vitara was a great little runner . . .’

Proud Sponsors of “Trading Up” 020 8805 7799 or 0844 620 1000 www.unicominsurance.com

CarDealerMag.co.uk | 79

focus on.

AutosOnShow.TV

CAPTURE the moment AUTOSONSHOW.TV

W: autosonshow.tv T: 0800 644 6894

ideo. It’s a tool that’s been around possible. Next, the software automatically for a while but it’s only now that creates an HD video and beautifully crisp dealers and car manufacturers are images. A review panel then appears, realising it’s invaluable when it allowing you to take a look at the images to comes to selling cars. make sure they’re perfect before the upload Why? Well, more and more customers process begins. The software also recognises simply won’t hand over their cash unless the car’s registration number, so there’s no they’ve virtually sniffed and touched a car chance the wrong images will appear next to through the medium of video. Potential the wrong car on your website. And then, at buyers now rigorously examine photos and the touch of a button, the images and video videos of dealers’ stock lists before they pick are uploaded and can appear on your website up the phone or fire over an inquiry email. in under five minutes – even if your iPad is And one company that knows a thing ‘asleep’. or two about this increasingly important It’s a real step change in the market, consumer behaviour pattern is Cardiff-based believes Price. ‘Fundamentally, our new firm AutosOnShow.TV. software is a standard walk-around product, You’ll have read about its products and but it adds so many time-saving features – services before in Car Dealer, but for 2014 that’s not forgetting the fact that dealers can the company has had a major update to be confident of getting consistent, perfect its software and core products, meaning imagery that appears directly on their website there’s never been a better time for dealers to all in one place.’ embrace video with AutosOnShow.TV. The arrival of video as the ‘next big thing’ ‘We’re calling it “Version 2.0” – it’s that has presented dealers with another problem. big,’ says the firm’s managing director, Adam Any new tool to enter a dealership means Price. ‘We have a new slogan too – “Power in only one thing – training. Adam Price, managing director of AutosOnShow. your pocket”.’ ‘Training is all well and good but there’s no TV, demonstrates the benefits of AutoCAPTURE And the power really is in dealers’ pockets at this year’s Brussels Motor Show getting away from the fact that it takes time,’ with AutosOnShow.TV. Thanks to a raft of explains Price. ‘And if you’re a small dealer, new products and updates to some of its training can sometimes be forgotten about Picture the scene: A part-exchange has come in most well-known services, AutosOnShow.TV has because there just aren’t the resources to devote to and it’s in excellent condition. You naturally want become one of those suppliers dealers need to talk it. And if there’s no training, the results can never to advertise it on your website immediately, but the to if they want to enjoy welcome profit boosts. be good. only digital camera is locked in the sales manager’s The company’s latest product aims to make the ‘There’s also the problem of fully-trained people desk – and he or she is on holiday. When you addition of high-quality photography and videos to leaving a business, meaning the important job finally do manage to get your hands on the camera, a dealer’s website as easy as possible – in fact, it sets of concentrating on stock management and the pictures are grainy and it takes three hours to out to revolutionalise the practice. advertising is left to someone who’s untrained.’ upload to your website – wasting precious time and Called AutoCAPTURE Freedom Function, a dealer But with AutoCAPTURE, dealers needn’t worry. money. can be in complete control of their vehicle imagery Anyone can use it, thanks to its easy system and But AutoCAPTURE is the modern-day solution. like never before. In under five minutes, dealers step-by-step procedures, meaning the process Using your iOS device such as an iPod, iPhone or can have high-quality images and video on their of taking photos and videos of stock is a timeiPad, you record a short video of the interior and website. efficient affair and doesn’t need a dedicated trained exterior of the vehicle using the system’s clever ‘Like the best products around, AutoCAPTURE employee. tutorial mode. It tells you where to stand and point Freedom Function is a simple and no-hassle tool to The new software is already creating quite a the iPad at the car to get the best selection of images use – but that’s its secret to success,’ explains Price. name for itself. A number of dealers are praising – from a head-on front image of the car to the rear ‘We’ve totally streamlined the process of taking and the system’s ease of use and AutosOnShow.TV three-quarters – and lets you take additional images uploading media to a dealer’s website. We’re so has already signed up a number of manufacturers if the car has a particular feature you want to draw confident dealers will be impressed, we guarantee interested in adding the software to their processes. customers’ attention to. It even features the familiar perfect results every time.’ ‘We visited the Brussels Motor Show in January, vocal tones of Siri to help you get the best images ��| CarDealerMag.co.uk

‘‘

A dealer can be in complete control of their vehicle imagery like never before

Patents granted GB 2488913B, Patents pending 1321111.5

and the manufacturers we pitched it to were really excited about it,’ says Price. ‘Five signed up immediately because they understood how AutoCAPTURE can make their dealers’ lives easier and can also guarantee consistently high-quality results across all of their dealers’ websites.’ It’s hardly surprising AutosOnShow.TV is making headway in the race to lead the video market in the motor trade. The company burst on to the scene in 2010 with its turntable video solution that guaranteed consistently high-quality 360-degree videos. Since then, it has added a raft

of clever products such as LiveCONTENT – which turns videos into eye-catching adverts with overlaid graphics and text – and AutoDIRECT – which enables sales people to easily create personal videos for potential customers on request – among many others. All of AutosOnShow.TV’s products are

backed up by a dedicated help and support team, and to make AutoCAPTURE even more appealing, there’s a 30-day free trial currently on offer to dealers. [CD] By James Batchelor (@JRRBatchelor) CarDealerMag.co.uk | 81

DATA FILE.

Thestatistics n

SMMT Sales Data

Taking Stock

2014 begins well with healthy rise in registrations ‘It’s encouraging to see the January market start the year strongly’

ew car registrations in January 2014 grew by 7.6 per cent to reach 154,562 units, according to the latest SMMT figures. The positive statistics follow the release in early January of figures for the whole of 2013, showing growth of 10.8 per cent over 2012 to 2,264,737 units. Registrations of alternativelyfuelled vehicles outperformed the overall market in the first month of 2014, growing 25 per cent and taking 1.8 per cent share of the volume. The January picture continues the welcome upward trend, and with the March 1 plate change just around the corner the prospects for 2014 are increasingly bright. Mike Hawes, SMMT chief executive, said: ‘The new car market ended 2013 on a high, so it is encouraging to see the January market start the

year strongly. As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014.’ Richard Lowe, head of retail and wholesale at Barclays, said: ‘The momentum seen in 2013 is continuing this year, with many consumers marking the first month of 2014 with the purchase of a new car. ‘The fantastic finance deals, launch of new car models and the plate change in March are all likely to keep demand high for the next few months, before the market stabilises to a more sustainable level.’ Sue Robinson, director of the National Franchised Dealers’

Association, said: ‘It is extremely encouraging to see that the car market continued to perform well in January 2014 following the success of 2013. ‘Increased retail demand continued to drive UK sales in the first month of January. Consumer confidence continues to grow as the economy becomes more robust. Retail customers feel secure enough to commit to buying cars, often helped by the competitive offers made available by the manufacturer. ‘Despite the boost in buying confidence, consumers continue to monitor their spending and are looking at ways to reduce their household expenditure. ‘This has resulted in a demand for smaller, fuel-efficient and easy-tomaintain vehicles. ‘The NFDA expects the market to continue to perform well.’

Ford builds on momentum to retain top two spots THEY might be the first batch of statistics of the new year – but it’s the same old story when it comes to January’s new car registration figures. Ford’s ever-popular Fiesta and Focus took the top two spots in the sales charts, recording figures of 9,072 and 5,333 respectively. In third place is the Vauxhall Corsa with 4,470 units shifted during the first month of the year – and the Luton-based outfit has another model, Astra, in the top 10 in sixth position, at 3,399 cars registered. ��| CarDealerMag.co.uk

Fourth is the Volkswagen Golf (4,390 units registered); the Polo is fifth (3,875) and Audi’s A3 is seventh with 3,130 cars. The top 10 is completed with the

following trio: Nissan Qashqai (3,028); Juke (2,704) and the Fiat 500 (2,595). Ford bosses are naturally delighted by the Blue Oval’s strong start to 2014. Mark Ovenden, Ford Britain chairman and managing director, said: ‘Our fast sales start to 2014 builds on the momentum sustained through 2013 and is a direct result of the continued investment in exciting products and industry-leading technologies. More people, and more private buyers, choose Ford over any other vehicle brand.’

SMMT sales data Jan/year to date

Top

Most-improved manufacturers in January Dacia

+367%

+345%

Infiniti

+313%

Lotus

+300%

SsangYong +236%

Bottom

Worst-performing manufacturers in January Perodua

-65%

Aston Martin -50% Proton

-50%

Chrysler

-20%

Vauxhall

-18%

MITSUBISHI +46.03%

VOLVO -5.42% Figures supplied by SMMT

January 2014 January 2013 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

2014

83 297 50 10,747 155 7,923 697 115 5,471 1,373 4,223 21,792 3,206 5,064 66 1,093 201 4,695 4,384 670 16 63 2,802 7,792 138 5 2,019 698 8,799 8 7,611 519 1 2,830 0 3,664 5,059 288 94 128 1,849 6,173 14,892 14,436 2,251 68 54

154,562

% market share

0.05 0.19 0.03 6.95 0.10 5.13 0.45 0.07 3.54 0.89 2.73 14.10 2.07 3.28 0.04 0.71 0.13 3.04 2.84 0.43 0.01 0.04 1.81 5.04 0.09 0.00 1.31 0.45 5.69 0.01 4.92 0.34 0.00 1.83 0.00 2.37 3.27 0.19 0.06 0.08

1.20 3.99 9.63 9.34 1.46 0.04

0.03

2013

Year to date (YTD)

% market share

2014 % change

83 332 100 9,848 80 6,279 698 143 4,759 294 3,351 19,640 3,725 4,863 16 1,207 122 4,473 4,665 537 4 25 2,144 6,750 31 0 1,660 478 9,477 23 7,714 444 2 2,370 1 2,697 4,036 303 28 105 1,695 6,112 18,253 11,560 2,380 73 63

143,643

0.06 0.23 0.07 6.86 0.06 4.37 0.49 0.10 3.31 0.20 2.33 13.67 2.59 3.39 0.01 0.84 0.08 3.11 3.25 0.37 0.00 0.02 1.49 4.70 0.02 0.00 1.16 0.33 6.60 0.02 5.37 0.31 0.00 1.65 0.00 1.88 2.81 0.21 0.02 0.07

1.18 4.25 12.71 8.05 1.66 0.05

0.04

0.00 -10.54 -50.00 9.13 93.75 26.18 -0.14 -19.58 14.96 367.01 26.02 10.96 -13.93 4.13 312.50 -9.44 64.75 4.96 -6.02 24.77 300.00 152.00 30.69 15.44 345.16 0.00 21.63 46.03 -7.15 -65.22 -1.34 16.89 -50.00 19.41 -100.00 35.85 25.35 -4.95 235.71 21.90 9.09 1.00 -18.41 24.88 -5.42 -6.85 -14.29

7.60

154,562

%market share

1.20 3.99 9.63 9.34 1.46 0.04

0.03

2013

%market share % change

143,643

1.18 4.25 12.71 8.05 1.66 0.05

0.04

CarDealerMag.co.uk | 83

TAKING STOCK. Remarketing specialist BCA gives its thoughts on matters that are important to dealers for the year ahead. Here’s what it has to say . . .

2013 was great – but sourcing vehicles will continue to be a challenge in the months to come says Simon Henstock, BCA’s UK network operations director

ood news! The used car market finished 2013 off on a major high. Used car values continue to rise in the used car market according to our latest Pulse report, as December 2013 achieved the highest monthly average since Pulse began reporting in 2005. Our data shows that average values rose to a new high in December as used cars averaged £7,573 across the board, a month-on-month rise of £84 (1.1 per cent) compared with November. Year-on-year, December 2013 was ahead by £212, or 2.8 per cent. Average mileage and age both rose slightly over the month as BCA sold a higher percentage of dealer part-exchange vehicles. Average performance against CAP Clean was marginally higher at 96.8 per cent, both month-on-month and year-on-year. December is a short month for trading and the remarketing sector continued to experience a reduced supply of retail-ready stock. Model mix tends to change, as fleet and lease cars can be held for the new year, while dealers will often retain part-exchange vehicles to meet the January

��| CarDealerMag.co.uk

‘There are no signs that the demand for retail quality used cars is going to ebb’ demand from retail customers. This aside, December continued the long-term trend of rising average values in the wholesale markets and a new record was established. Looking ahead to the rest of 2014, there are no signs that the demand for retail-quality used cars is going to ebb, so we expect values to remain strong. Sourcing vehicles will continue to be a major concern for used car dealers, and if the economy continues to improve, increasing retail demand could mean there is even more competition for stock in the remarketing sector. The markets remained very active in December, despite the shortage of stock. BCA also offered hundreds of vehicles between Christmas and new year from a range of major blue-chip vendors via the Buy Now digital

channel, with a simple ‘click-to-buy’ process. Turning to the fleet and lease sector, these cars averaged £9,162 in December – the third-highest value on record despite falling by £139, or 1.5 per cent, over the month. Values were up by £653 (7.6 per cent) year-on-year. CAP performance fell back from last month to 95.84 per cent but was ahead year-on-year. Retained value against original MRP (manufacturers’ retail price) was down a point compared with November but up year-on-year. Meanwhile, average dealer part-exchange values fell by just £15 (0.4 per cent) in December, following three consecutive months of record prices. Year-on-year, values were ahead by £278 (7.8 per cent) compared with December 2012, with average age rising and mileage falling marginally over the year. CAP performance improved to 95.15 per cent in December, up slightly compared with November but down year-on-year. Nearly-new values reached record levels in December at £22,788, but volumes remain very low and model mix remains the most significant price factor. [CD]

Buyers’ guide

Fiesta

(MkVI) ’08-current

We help you choose the best stock for your forecourt. This month, the Ford Fiesta is the model in the spotlight What is it? It’s currently Britain’s best-selling new car – and that’s a good judge at how desirable the Fiesta is. But not everybody can afford a brand-new Fiesta, and as the current sixth-generation car has been around for six years, there are plenty of used examples around. The sixth-generation car burst on to the scene in the summer of 2008 and quickly earned itself the reputation of the most stylish supermini money could buy. In typical Ford style, there were plenty of trims and versions available. At launch, the Fiesta could be ordered with a 1.25- (59bhp or 81bhp), 1.4- or 1.6-litre petrol engines and 1.4- or 1.6-litre diesel units. Three- and five-door variants were available and they could be specified in Studio, Style, Style+, Zetec, sporty Zetec S and plush Titanium levels. Customers could opt for Edge spec in October 2009, which sat quite happily between Style+ and Zetec. In tune with buyers’ tastes, the Fiesta has

UNDER THE BONNET

A wide range – from 1.25-, 1.4- or 1.6-litre petrol engines and 1.4- or 1.6-litre diesel units. 1.0-litre and 1.6-turbo petrols from 2012

always been available in green and sporty versions – the range was book-ended by a 98g/ km ECOnetic version (which later became 87g/ km) and mildly hot S1600 with 118bhp. The car received a facelift in 2012 and a hot ST finally arrived last year.

to rattle, creak and squeak. And like with many cars, there doesn’t seem to be a solution. Dieselpowered Fiestas do also suffer from clogged-up particulate filters, so check this before handing over the dosh.

What CAN GO WRONG?

Unsurprisingly, Fiestas are popular with all types of customers, so it’s important to bear in mind your customer base. Younger buyers will naturally be interested in smaller-engined versions, probably petrols, in Zetec trim and in bright colours such as blue and red or fashionable black or white. Meanwhile, older buyers are more likely to opt for five-door versions in either petrol or diesel, and warm S1600 and hot ST versions will be bought by mostly males in their late-20s onwards. Stock a five-door Zetec 1.4 in blue, black or white and it’s fair to say you’ll appeal to most buyers. [CD]

The sixth-generation Fiesta is a generally reliable car, but naturally there are a few things that can go wrong. The Fiesta has only been recalled once and that was in December 2011. It was because of a blanking plug in the exhaust failing and allowing fumes to enter the cabin – so make sure it has been fixed. Things to look out for include bodywork damage – because of poor rear visibility on three-door versions, minor accident damage is frequent – the interior trim, though a step-up in terms of build quality over previous Fiestas, is liable

PERFECT SHADE

Bright, metallic blue like this is a popular colour as are black and white – these shades seem to always stay in fashion

What’s the perfect FIESTA?

KNOWN PROBLEMS

Not many really – but do look out for body damage on three-door versions, creaking dashboards and clogged particulate filters

THE RIGHT BUY

It depends on your customer base, but stock a five-door Zetec 1.4 in blue, black or white and you’ll appeal to most buyers

CarDealerMag.co.uk | 85

auctions.

Henstock

auction stations

No end to this shortage

espite new car sales recovering strongly last year, the real shortage of good-quality, readyto-retail used cars continues. And with an economy that is at last showing real signs of recovery, the expectation is that demand for the best used cars is going to be just as strong – if not stronger – than last year. This means that sourcing vehicles will continue to be a major concern for used car dealers, and if the economy continues to improve, increasing retail demand could mean there is even more competition for stock. Longer-term, economic confidence is the key factor going forward. The economy is improving and employment levels remain high, and this may tempt even more retail buyers to consider changing their current vehicle for a ‘newer’ used car. There will always be activity in the used car market as a result of changes in lifestyle – the growing family; a young driver passing their driving test; a windfall purchase; the need for reliable transport to get to work and back – but we must not lose sight of the fact that many families continue to struggle with rising costs while wages are static or even falling in real terms. The good news, of course, is that the new plate on March 1 is only weeks away, bringing additional volumes of fresh stock to the wholesale sector. Sourcing and securing those best-quality retail cars will be critical for professional buyers in the weeks ahead. Buying the right stock at a good price and in a timely fashion is crucial. From the remarketer’s perspective, making it easy for professional buyers to source and acquire stock is critical so they can turn retail opportunities into firm sales. The digital arena and efficient logistics both have big roles to play here – getting the right cars in front of the right buyers at the right time. Of course, at the end of the chain it is the consumers who will decide where the peaks and troughs of demand will occur this year. Meeting their expectations is the real challenge in 2014!

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.

��| CarDealerMag.co.uk

SsangYong plans to add five new dealers to UK network bit.ly/newSYdealers

CV video appraisals are on the way from BCA Results from thorough and comprehensive pilot were very positive

CA will roll out its new commercial vehicle video appraisals this year. The new service will allow buyers to view every aspect of the exterior and interior of each vehicle in advance. Combined with BCA’s Assured 30-point mechanical check, the online video appraisals will help provide buyers with extra confidence when it comes to buying stock. It’s also designed to help sellers by providing maximum pre-sale exposure as well as improved buyer confidence, more competitive bidding and improved residuals. BCA uses tablet technology to produce a 360-degree video of a vehicle’s interior, exterior, roof and loadbay condition. The video runs in HD format on PC, tablet and mobile devices and takes a maximum of two minutes to view. The video appraisals can be accessed through the online BCA stock locator, which also provides a range of still images with a zoom feature.

BCA polled its buyers about the new service during a pilot period. Results showed that more than 70 per cent of buyers who responded said the appraisals gave them the confidence to bid higher, while 73 per cent said they would be more confident to bid via Live Online. Meanwhile, LCV dealers said it gave them the opportunity to pre-sell stock to potential retail customers. BCA’s general manager for commercial vehicles, Duncan Ward, said: ‘We conducted a thorough and comprehensive pilot during 2013 with selected vendors and the results were exceptionally positive. ‘Average residual value performance increased notably when our vehicle video appraisal service was used as part of the pre-sale marketing, and first-time sale percentages improved. ‘Buyer response was overwhelmingly positive and the service proved very popular with BCA Live Online bidders.’

Average values of part-ex vehicles on the up AVERAGE values of dealer partexchange vehicles rose towards the end of 2013, reports Manheim. The company’s latest Market Analysis report shows that prices increased from £2,881 to £3,129 – despite a month-on-month rise in average age from 98 to 100 as well as an increase in average mileage from 77,000 to 77,044. Average values fell month-on-month

for eight of the 10 segments, most notably for large family models, which saw prices fall from £2,703 to £2,390 between November and December. However, coupe models appreciated in value from £4,744 to £5,141 over the same period. When looking at the year-on-year figures, values rose for all 10 of the market segments, especially for coupes.

The First Undercover Vehicle Canopy in Northern Ireland!

Download our FREE iOS/Android app now Full listings can also be viewed on our website www.cityauctiongroup.com

Belfast: 10 Comber Road, Carryduff, Belfast BT8 8AN 028 9081 3775 Dublin: Keatings Park, Rathcoole, Co Dublin 01 458 9430

www.cityauctiongroup.com

CarDealerMag.co.uk | 87

A proven management tool to help keep track, allocate and improve efficiency

Driving your business • Information at a glance • For New and Used Vehicle Sales • Supplied fully assembled • Ideal for Fleet and Contract Hire • Standard or tailor made

Complete system

£118.00

including T Cards & Client Files Plus P&C and VAT (see reverse for details)

Stock Control System • • • •

8 Column Ref:70 30 Slots Deep (717mm w x 626mm h) 200 New or Used Car T Cards Free Trial Pack of Client Files

Special Offer! Quote Client File when ordering and get your free trial pack of 10 Client Files.

Have you tried the new Web based version of T Cards?

If you have your own Client files made, contact us and we’ll provide a no obligation quotation.

T Cards Online, with all the benefits of a manual system PLUS the added bonus of being a multi access and multi user interface!

www.tcardsonline.com

tel 01732 871 417 web www.tcardsdirect.com

��| CarDealerMag.co.uk

TRADER TALK.

..in association with AutoTrader

It’s all about the right car at the right time The potential for improved profits will be in sharp focus over the next 12 months

ignals of improving economic health have come thick and fast in 2014. Consumer confidence is growing, unemployment falling and interest rates remain low. Growth of above three per cent for 2014 has even been forecast by some of the country’s most optimistic economists. Within this backdrop of positive sentiment for the UK economy, new car sales have continued to improve and the key March market could deliver more than 400,000 units for the first time since 2008. This year, the potential for improved profits will be in even sharper focus for a used car sector struggling to fill a gap of around half a million used vehicles a year, a consequence of the crash in new car sales during the recession. The upturn in March will provide a muchneeded boost in part exchanges and, for the well prepared, that could mean positive news for profits. In February’s Car Dealer, I wrote that stocking the right car at the right time was vital for any used car operation. But the drive to acquire the right used vehicles for inventories can easily be lost in a frantic March market and there’s no doubt that rushed purchases can adversely affect

‘The upturn in March will provide a much-needed boost in part exchanges.’ profits. So today I’m adding a note of caution. Fortunately, dealers are now able to arm themselves with the right tools to limit the potential for purchasing stock that might not be attractive to buyers in their area. A wealth of intelligence is available, based on data generated by millions of online car searches made in real time, as well as through other sources like auctions and online trading platforms. Decision support tools like i-Control by Deltapoint for example, help identify stock that’s desirable in a particular area, thereby helping dealers select models that are more likely to sell quickly and reject those that won’t. It also helps them to set an appropriate price to buy and price to sell based on unique intelligence derived from Auto Trader, as well as recommending price adjustments to align with constantly changing market conditions and a dealer’s own business strategy. This is imperative since research shows that an irrationally priced

vehicle in a rational market takes longer to sell, and that’s as true for underpriced as overpriced vehicles. The winners in March will be those who make smart, intelligence-based decisions on the stock they buy, the price they pay and the tools they use to promote their stock and services successfully online, the 21st century shop window for every car retailer. They will also be those who embrace changes in buyer behaviour. According to latest figures, 30 per cent are willing to transact online and 85 per cent would be willing to pay a 10 per cent deposit online. This new generation of consumers expect the buying journey to be effortless and increasingly see online as the pathway to a deal. In the digital market place, the savvy dealer must make that pathway as smooth and accessible as possible.

Who is Tim Peake?

Tim is trader solutions director of Auto Trader, the UK’s number one digital marketplace for new and used cars. Visit autotrader.co.uk

CarDealerMag.co.uk | 89

Now available on ipad free app download free subscription interactive content Search for ‘Car Dealer Magazine’ in the iTunes store Powered by

��| CarDealerMag.co.uk

MARKET INSIGHT.

..in association with ASE-global.com

Dealer group Caffyns PLC comes under ASE’s spotlight this month

Caffyns powers ahead as its restructure nears completion Enviable franchise mix is just one reason for strong growth recently

affyns PLC has a long history of operations, having been admitted to the London Stock Exchange in 1961. Performance has been muted in recent history, with the group encountering difficulties that have necessitated a progressive downsizing. The perceived underperformance of the group has been widely reported in recent years, with a substantial shareholder leading a shareholder action group calling for changes to the board structure. Events came to a head in May 2012 when a leading barrister was appointed by the shareholder action group to head up its fight for a shake-up. Since that last report in May 2012, there has been no further news and more recent announcements have been much more positive. The group’s restructure is now largely completed and it currently represents eight franchises from 12 locations in the Kent and Sussex area. The group has an enviable franchise mix with a strong VW Group focus (three Audi, four VW, two Skoda and one Seat points of representation) as well as Jaguar, Land Rover, Volvo and Vauxhall. The group’s strategy is to focus on the premium and volume premium segments of the market and maintain the group’s operations with a strong freehold property bias. Indeed, much of the group’s reporting is focused on the property as well as motor retail sides of the business and one gets the impression the group is as much a property as retail play. The restructuring appears now to be largely complete and recent strengthening of the results indicates that selective acquisitions may well now be on the cards going forwards. The underlying results of the group show much improvement in the past 18 months. For the year to March 31, 2013 the group reported an increase in new like-for-like sales of 18.5 per cent compared with a 7.2 per cent increase in national registrations. Aftersales performed less well, impacted by the continued fall in the (up-to-fiveyear-old) number of vehicles on the road following the recession. Overall, the group reported underlying profits of £1.2m on sales of £151m, a return of 0.8 per

‘It could be easily envisaged that the group may well become a natural takeover (or reverse takeover) target.’ cent and broadly in line with ASE’s own national average data. Given the strong franchise mix and bias towards freehold investment, we would see the opportunity for these returns to be much improved going forwards and exceed national averages. Indeed, the latest interim results appear to support this view, with underlying profits improving from £437k to £1,027k on sales of £93m – an improvement to 1.1 per cent of sales. Again, this is driven by strong like-for-like sales increases, with new up 20.8 per cent, used 17.6 per cent and aftersales 1.8 per cent. Looking at the balance sheet, it is interesting to note just how small the group is, and the costs of operating such a small business on the full London Stock Exchange must be onerous. Shareholders’ funds total £15m after the deduction of the current £13.6m defined benefit pension liability, and net debts (excluding stock finance) are £10m, indicating a relatively low gearing position, particularly given the extent of the property portfolio (£29m book value). The annual report notes that most recent property valuations show a surplus over this book value of £4.8m. Recorded goodwill of just £0.3m means, therefore, that the true equity value of the business is closer to £20m.

In line with the other quoted groups, the share price shows significant gains in recent months, driven by the positive company news and generally much-improved outlook for the sector. The shares are very thinly traded with a significant bid/offer spread and are currently valued at £5.50 against £3.75 12 months ago - a 47 per cent improvement. The price of £5.50 capitalises the group at around £16m, which means that effectively the group is trading at a £4m discount to its tangible net asset value of around £20m noted above. Given the improving results, it would appear that there is scope for further growth in the share price provided the sector continues to perform well and the pension liability can be managed. Indeed, it could be easily envisaged that the group may well become a natural takeover (or reverse takeover) target for a consolidator group. Any such move would likely require the support of the Caffyns family, given that they retain a controlling ownership of the group. Broker forecasts Because of the small size of the group and its thin trading status, the group does not seem to attract the attention of the brokers and no forecasts could be obtained.

Who is Paul Daly? He‘s a partner at ASE Global. You can read ASE Global‘s column here every month. CarDealerMag.co.uk | 91

data file.

Opinion

SOPHIE WILLIAMSON-STOTHERT

What makes an icon? We all think differently

ver the past few weeks, four people have asked me the same question: What makes an iconic car? It’s certainly an interesting topic for discussion, but is it really relevant? With more than six million cars produced worldwide every year, it’s clear that each and every one of us regards an icon as something completely different to the next person. What if I posed a different angle to that question? Here’s a narrowed-down alternative: Why do more than half of us only link iconic status to older, classic cars, rather than their modern successors? If you watched the first of the new series of Top Gear, you’ll have seen the famous trio (Clarkson, Hammond and May) hunt down three of the 1980s’ top hot hatches: the Nova SRi, Golf GTi and Fiesta XR2i – all of which have captured the hearts of many motorists, purely because they are the quirkiest cars to drive. Let’s face it, when you think of an iconic car you instantly picture machines such as an AC Cobra, Mini Cooper S, Ferrari 250 GTO, Aston Martin DB5, Jaguar E-Type, a Mk1 Ford Escort Cosworth or the Porsche 911. But do you spot a pattern here? Aside from the fact that the majority of them are British, they’ve all appeared in motorsport. So, here’s another question for you: Have these iconic cars earned our praise through simply taking to the race circuit? They have, after all, been the platforms to help develop the technology and safety features that have slowly filtered down into our road cars. Here’s my final question: What about the future? No, many of the cars you see on the road today don’t have more than 200bhp and they aren’t built with good old-fashioned blood, sweat and elbow grease. However, they are yet another testament to how the motoring industry has evolved. Look where we are now. We’re in the middle of an influx of electric cars from the Nissan Leaf to the Renault Zoe. We’ve even taken the small 1.0-litre engines of the past that we once saw in the likes of a little Austin Mini and evolved them into economical, cost-effective diesel units for the cars of the future. So, what makes an iconic car? In my opinion, it’s its ability to make a difference. We can all follow a trend and we can all fit in with the rest. But how many of us can stand out in a crowd?

‘Have these cars earned praise by taking to the race circuit?’

Sophie Williamson-Stothert

Award-winning Sophie is a rising star in the world of motoring journalism. She always has something thought-provoking to say about the industry she loves. ��| CarDealerMag.co.uk

Suppliers’

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

App development

Auctions

Finance

AppCreatives

Newark Motor Auctions

First Response

W: appcreatives.co.uk T: 020 7544 8636 E: enquiries@appcreatives.co.uk Info: A leading mobile app development company that specialises in automotive mobile apps for all platforms.

W: newarkmotorauctions.co.uk T: 01636 671167 Info: East Midlands/Lincs’ largest independent auctions. Main agent, finance and private entries. Sub-£3,000 our speciality. Friendly welcome for all.

W: frfl.co.uk T: 0115 946 6370 E: Visit bit.ly/firstresponse Info: We always encourage our returning customers to visit the same dealer for their next car, leading to Many Happy Returns!

Apprenticeship training

Automotive CRM

These Listings Work

Babcock

Contact Advantage Limited

More Sales For You

W: babcockinternational. com/automotivetraining T: 0870 013 0325 E: automotive@ babockinternational.com Info: UK’s leading work-based provider of automotive training. Register your vacancy now.

W: contact-advantage.com T: 08452 26 26 50 E: info@contact-advantage.com

W: Your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: The Suppliers’ Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.

Auctions

Automotive data

Insurance

Aston Barclay

HPI Spec Check

Think Insurance

Info: UK’s leading provider of showroom management/CRM systems, manufacturer/dealer data hubs and now a revolutionary new iPad sales app.

W: hpi.co.uk W: astonbarclay.net T: 0845 301 1843 T: 01245 450700 E: thehpiteam@hpi.co.uk E: info@astonbarclay.net HPI Spec Check Info: Get the exact options that Info: Aston Barclay delivers national W: www.hpi.co.uk were factory-fitted to an individual coverage through its four auction T: 0845 301 1843 vehicle to help you identify and centres, together with proven E: thehpiteam@hpi.co.uk retail the best stock. online remarketing channels.

W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments. 10% new client discount. Liabilities. Up to 75% bonus discount.

Auctions

Insurance

BCA

Info: Get the exact options that were factory fitted to an Finance individual vehicle to help you identify and retail the best stock. Carfinance247

Unicom

W: unicominsurance.com T: 0844 620 1000 E: sales@unicomins.co.uk Info: Specialising in insurance since 1992, Unicom is owned by Tradewise Insurance – the largest motor trade road risks insurer in the UK.

W: bca.co.uk T: 0844 875 3480 E: customerservices@bca-group.com Info: BCA offers more vehicles and more ways to buy them with physical sales, Live Online and Bid Now/Buy Now.

W: carfinance247.co.uk T: 0800 019 7180 E: info@carfinance247.co.uk Info: The UK’s fastest-growing online car finance broker specialising in fast decisions, same day payouts and market leading commissions.

Auctions

FEATURED LISTING: Car dealer club

Central Car Auctions

FREE LEGAL ADVICE with every car dealer subscription

W: centralcarauctions.com T: 0141 773 6000 E: info@centralcarauctions.co.uk Info: Scotland’s largest indoor auction. More range, more choice with 1,400 vehicles weekly, Mon, Wed & Fri or online via LiveBid.

Auctions Manheim Remarketing

W: manheimremarketing.co.uk T: 0844 856 4545 Info: For further information please call sales support on 0844 856 4545 or visit the website.

CAR DEALER CLUB gives dealers of all sizes access to free legal advice worth £195 from our motor trade lawyers – 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

offer. Signing up is simple. Type CarDealerClub.com into a web browser to find out more information and pay online. Alternatively, you can send us a cheque for .com £39.99, payable to Blackball Media Ltd, to Car Dealer Club, Blackball Media, Haslar Marine Technology Park, Haslar Road, Gosport, PO12 2AG and we’ll do the rest.

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

guide

Confessions

your real stories

the details of selected companies here Key tracking

Recruitment

These Listings Work

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: No more lost keys. Best prices. Complete systems from just 10p per key! Seals, pegs and hangers from stock.

Motor Industry Recruitment W: mirec.co.uk T: 0845 257 9224 E: info@mirec.co.uk Info: An award-winning, specialist motor recruitment consultancy who will not headhunt from you or resolicit candidates they place with you.

Online marketing

Remarketing

Warranties

iVendi

Carcom

Car Care Plan

Keytracker Ltd

More Sales For You

W: ivendi.com T: 0845 226 0503 E: info@ivendi.com Info: Award-winning motor finance calculators and highly-qualified lead generation. See why over 600 dealers now work with us.

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: 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!

Online trading

Remarketing

Warranties

Autotrade-mail.com

GlobalOASys

AutoProtect (MBI) Limited

W: Autotrade-mail.com T: 01243 523000 E: sales@autotrade-mail.com Info: UK’s leading online realtime used-car trading network. The original and the best. Call for your free two-week trial.

W: globaloasys.com T: 020 3322 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: 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.

Paint protection

Valeting services

Warranties

Supagard

National Car Cleaning Company

WMS

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: 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: 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.

Paint protection

Vehicle checking

Web design

GEN-3 Glasscoat

HPI Check

GForces

W: www.g-3glasscoat.com T: 01753 215 311 E: enquiries@g-3glasscoat.com Info: Existing paint protection products cannot compete with GEN-3 Glasscoat. It gives your car a ceramic-hardened glass finish.

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: 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.

Printed Keyrings

Video

Wholesales

Swift Publicity

AutosOnShow.TV

Carfleet Wholesale Ltd

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: 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.

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.

Mind the GAP! Trent took us by surprise

nother Monday morning and another eager kid with trousers like a rapper and hair like a scarecrow is waiting for us in the sales meeting. ‘Right everyone, this is Trent,’ the manager said. ‘He’s our new salesman, be nice and show him the ropes, OK?’ ‘No problems, boss,’ we all said. Now, these were the days when the FSA and its, let’s say, ‘rules’ weren’t really followed. I was told to teach the kid all about why finance and insurance products were so important and how to sell them. Like I said, rules were a bit hit and miss, so I began to tell him all about a few of the things we did back then. After a couple of hours of making up ludicrous ‘facts’ about finance and GAP, I told him to go and speak to some customers about GAP insurance. I said that me and a colleague would be in earshot if he needed any help. I called my mate over. ‘Check this out,’ I said. ‘He’s going to tell these guys all about GAP.’ We listened in and heard the kid explain: ‘You see, GAP is really good. You know when you park on a road or in a car park you always leave enough room around your car so you can get in and out and stuff? Well, this makes sure you can claim if there isn’t enough room to park your car. If you have to nudge another car out the way, or clip it with your door or bumper, it pays out. GAP safeguards you, know what I mean? Because there wasn’t a big enough gap, you see? GAP insurance!’ My mate stood with his mouth wide open in disbelief. Trent continued: ‘And, when you park on a road, you can nudge other cars back and forward to get yours to fit in the space better. It’s such a good thing to have. We all have trouble parking, don’t we? So, would you like it?’ By now, we were trying really hard not to laugh. But when the customers looked at each other, then back to Trent, our humour turned to shock. ‘Yeah, I think we’ll go for that. Thanks!’

‘My mate stood with his mouth wide open in disbelief’

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.

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.co.uk/forum into a web browser and get confessing! CarDealerMag.co.uk | 93

workshops.

!"#$#%&'' '''()*"'+*,#%-,,' '''''''!"#$%#&'

Garage owner sentenced over fatal accident T

he owner of a Berkshire car maintenance company has been fined £7,500 and ordered to undertake 250 hours of community work after reversing into and killing a customer. The customer, Frederick Gleeson aged 79, from Staines, suffered fatal head injuries after he was hit by a van driven by sole trader Mark Walker at Complete Car Care in Welley Road, Wraysbury, on March 12, 2012. Reading Crown Court was told that Mr Gleeson was in the driveway of the premises when Walker started to reverse his van along the drive to leave

the garage. The court was told his van had no direct rear visibility and that a rear-monitoring camera that had been fitted to the vehicle wasn’t used. After being found guilty of two separate breaches of the Health and Safety at Work Act 1984, Walker was fined £7,500 and ordered to undertake 250 hours of community service. He is also liable for £75,000 in prosecution costs. The judge ruled that Walker’s breach of duty was a direct cause of Mr Gleeson’s death. After sentencing, HSE inspector Nigel Fitzhugh said the pensioner’s death had been entirely preventable.

!"#$!%&'&'&( )*+,*-.)/0-*1*2.3-4356

75.414.89*%+*-+58.1*2.%0:*2-;%4,%.<*%;*0+

Automotive Recruitment Consultants We have vacancies across the UK for:

• Vehicle Technicians • MOT Testers • Sales Executives • Administrators • Service Advisors • Showroom Hosts • Parts Advisors • Business Managers • Sales Controllers • Sales Managers

• Workshop Controllers • Service Managers • Aftersales Managers • Parts Managers • Bodyshop Managers • Estimators • Paint Sprayers • Smart Repairers • Panel Beaters • General Managers

Upload your CV at: www.carrecruitment.com Tel: 0333 700 3030 • Free CV Advice • Candidate Marketing • Job Alerts by Text • New Jobs Daily

��| CarDealerMag.co.uk

!"##"$%&'%"(

Sole trader fined £7,500 after knocking down customer and killing him

UK NETWORK

the fleet.

Third report:

RenaultZoe

o, with the charging problem now sorted (traced to a faulty earth on the charger and nothing to do with the car), we’ve now been able to put a few miles under Zoe’s belt. So, has my view on the car changed? Well, not really. As a car, the Zoe is not a bad little hatch. Certainly, it’s one of the more attractive offerings Renault has given us in a while. I’ve been stopped countless times in car parks by people asking what it is. Interestingly, very few realised it was electric and were just interested in its looks. This reflects the fact that Renault considers this a niche model and it’s had far less press than Nissan’s Leaf, which is a shame because it’s an equally capable car, arguably a little better given its range. It drives like a regular car, albeit with a little extra weight, and has everything any other hatch has. It’s enjoyable to drive and easy too. However, the recent dark, cold and wet weeks have put additional pressure on the Zoe. I’ve taken to driving in a warm jacket, with just the barest of heating on, to keep the screens demisted, which reminds me of a 198 Beetle I used to own. The fact that I’ve been driving pretty much everywhere with the lights and wipers on too hasn’t helped battery life. This, combined with the cold weather, has limited the range on full charge

the knowledge Model: Renault Zoe Dynamique Intens Price: £19,393 (as tested) Engine: Electric motor Power: 88bhp, 219Nm Max speed: 84mph 0-60mph: 13.3s Emissions: 0g/km Mileage this month: 207 This month’s highlight A couple of dry days! With the heating and wipers off, my range anxiety was eased. to 80 miles (Renault claims up to 120). I’m hoping as the days improve so will the range, allowing my stress levels to drop on the way home too! A couple of other niggles . . . The heater timer doesn’t seem to work. The car offers the facility to turn on the heating while still plugged in, which saves warming the car on the battery, but I just can’t seem to get this to work. I also noticed a very strange issue. I’ve been resetting the trip meter every morning to help me work out how many miles I’ve covered and how many I have left. When I arrive home this is normally around 79.6 miles, but following an overnight charge this reads 179.6 – very weird!

The real problems still come down to the support structure. Range anxiety is a daily issue, and while I’m clearly not a member of Renault’s target audience because of the fact that I do an 80mile commute, an electric car does need far more forward planning than we’ve become used to, and this is where the problem lies. The infrastructure and ease of use when it comes to normal internal combustion-engined cars means we rarely need to worry about planning our day-to-day trips in detail. Even in the middle of the New Forest, the local petrol station is less than five miles away and there’s a 24-hour petrol station within 10 miles. So, unexpected trips are not a problem. Low on fuel? Pop to the garage. With the Zoe, this just isn’t possible. If I know I’m going out in the evening then I’m afraid the Zoe is relegated to the car park in favour of anything else. Renault and the other manufacturers recognise this and are working on improving the charging network. With more rapid chargers, it will make it easier to travel long distances, but at present I find I use the Zoe as a second car and I think this is the point. As a second car, the Zoe is perfect. For local trips and small commutes it’s a great idea, but over the past few weeks I simply couldn’t have done without a normal car as well. Andy Entwistle (@CarDealerAndy)

CarDealerMag.co.uk | 95

the fleet.

LATEST FROM THE FLEET . . . First report:

MitsubishiASX Panoramic glass roof is a great addition

MITSUBISHI has revamped the ASX for 2014, and seeing as we liked the last model we borrowed, we were quite keen to try this one out. The latest ASX comes with the promise of improved specification and a better performance, and this model is the top-of-the-range 2.2-litre turbo diesel 4WD automatic. As an early introduction to the Car Dealer family, I took it from Gosport to Aberdeen and back – a trip that is so long and boring you deserve some sort of certificate at the end. In a frame. Thankfully, the ASX made easy work of the 1,200 miles, with the automatic a welcome addition to the range. You can see the improvement in quality as soon as you get behind the wheel of the 2014 ASX. The hard plastic trim has been replaced by soft-feel surfaces and a higher quality of leather upholstery. Even the sat nav has been improved and now shows you the current time – something the last one didn’t, for some strange reason. Having driven it on motorways and pothole-ridden country roads, the ride feels more comfortable than before, thanks to a revised suspension system. The ASX 4 has an impressive spec level and the new panoramic glass roof is a great feature. Overall, the revised ASX really impressed me. Gareth Bethell (@garethbethell)

the knowledge

Second report:

VWCalifornia Surfing cancelled, but good fun was had by all

AN INTENSE storm was brewing somewhere in the middle of the Atlantic Ocean and its course was set to travel to the north of the country, leaving in its wake a train of watery swell that was due to hit the south coast. All things going well, some blustery waves were due to appear very near to where I live so, naturally, the California was primed with surfing equipment, friends were called and excitement brewed. What actually happened was the wind picked up so much that the sea became one giant, slopping bowl of salty soup that was only really good for grinding bits of rock and turning it into sand and definitely not for surfing. But what I discovered while solemnly sat on Boscombe seafront was the California made for the perfect ‘Plan B’, quickly transforming into a cosy kitchen to create steaming cups of coffee, with seats easily spun around to allow friends to gather around the table for impromptu games of rummy (or was it snap?). While wind and rain battered the windscreen we remained exceptionally warm, dry, comfortable and completely entertained. It was nowhere near as fun as actually partaking in the activity that we drove almost 50 miles to do but it was a giggle nonetheless. Leon Poultney (@blokesincars)

the knowledge

Third report:

VolvoXC70 Spacious, substantial, safe and secure

SPACIOUS, capable and comfortable, the XC70 has quickly become a favourite of the fleet. And when I was lucky enough to get my hands on the key (prising it out of Batch’s grubby little paws), it didn’t take me long to find out why. Unsurprisingly, the cabin is comfortable and spacious and the build quality is impressive. You feel safe and secure inside, and despite spending a whole year behind the wheels of Mitsubishis large and small, it didn’t take me long to get the hang of the heating, satnav and audio controls. Clear, well designed and intuitive, navigating my way around the country while switching between my favourite radio stations has been a doddle. I must confess, however, that I feel a bit guilty in actual fact because I haven’t really put the car through its paces in any meaningful way. The nearest it has come to going off-road is the Sainsbury’s car park on the outskirts of town, and there’s not much need for four-wheel-drive on the A3 between the south coast and London. The XC70 is a car that looks after its occupants. The on-board safety features tell you to have a break and a coffee if they detect erratic driving and I must confess I might have clattered across a few cats’ eyes late one night on a journey home. I took the car’s advice and stopped for a welcome coffee.

Dave Brown (@CarDealerDave)

the knowledge

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: 1,458

Model: Volkswagen California SE Price: £56,440 (as tested) Engine: 2.0-litre, turbocharged diesel Power: 138bhp, 340Nm Max speed: 104mph 0-60mph: 16.6s Emissions: 206g/km Mileage this month: 1,053

Model: Volvo XC70 D5 AWD SE Lux Geartronic Price: £43,545 (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: 678

This month’s highlight Revised and updated, the ASX made light work of a long and boring journey.

This month’s highlight The swivelling seats. Great for a game of cards when it’s too rough to ride the waves.

This month’s highlight Taking a well-earned (and well-advised) break on a late-night trip home.

��| CarDealerMag.co.uk

longtermers

Fourth report:

FordMondeo Marvellous Mondeo is the busiest car by far

WITH our long-term Mondeo fast approaching a landmark 12,000 miles, it’s safe to say that of our fleet it’s been by far the busiest. On a daily commute to and from the office it averages about 80 miles, but for the past couple of months it’s been touring the country as a valuable member of the Blackball video team. As an all-rounder there’s no getting away from the fact that the Mondeo is right at the top of its game. There might be more spacious estates on the market, more affordable ones and better examples with stronger residual values but, overall, the Mondeo is an attractive proposition – especially when you consider competitive discounts are available because of large volumes, plus dealerships will be keen to clear forecourts ahead of an all-new model. It’s only when you get behind the wheel of some of its rivals that you really appreciate how good the Mondeo really is. At cruising speed, it remains refined and composed, but find a deserted country lane and its responsive steering and sharp handling are evident. Having spent so much time behind the wheel, I’ve grown to appreciate just how well the Mondeo is stitched together. We did have a slight hitch this month with a puncture, but we can hardly blame that on the car.

Fourth report:

NissanQashqai KiaCarens Having a splashing time as the heavens open

Damaged Carens is restored to former glory

THIS time last year and Car Dealer’s much-loved Nissan X-Trail kept Britain’s best-read trade magazine moving while the rest of the country shivered and ground to a halt in the heavy snow. Fast-forward 12 months and much of the nation is once again suffering after Mother Nature unleashed Biblical rains and turned vast swathes of our green and pleasant land into a scene from Kevin Costner’s Waterworld. This time, though, we weren’t able to call upon the ever-dependable 4x4 abilities of the soon-tobe-updated X-Trail. Instead, we had to make do with its two-wheel-drive baby brother – our Nissan Qashqai 360 long-termer. To be honest, hopes weren’t high. Many routes around Car Dealer Towers on the usually sunsoaked south coast were under several feet of water, and so it was with great trepidation that I grabbed the keys to the family crossover and hit the road. And I’ve got to say I was surprised. Don’t get me wrong. I wasn’t traversing rivers or tackling serious off-road conditions. But, for a family car the humble Qashqai performed with aplomb. You feel the Qashqai can tackle everything that comes its way – even if the reality is somewhat different – and that’s a great feeling.

LAST month you will remember reading about our Carens suffering some unexplained damage to its wing mirror while parked overnight. While it was back at Kia’s HQ having the necessary ear surgery, we were treated to a brand-new replacement. Now, I know I’m not a particularly ardent follower of fashion, but I’ve got a bee in my bonnet about white cars. To my eyes they just look unfinished, rendering all a designer’s hard work as appealing as a washing machine. And this is one of my few gripes with our otherwise-outstanding Carens, so it was a pleasant surprise to find its replacement looking resplendent in a gunmetal grey hue. Resplendent and spotless, which was a nice change. Being pressed into work as a camera car/ dog basket/kayak mover means our own Carens ends up looking rather the worse for wear, although to its credit the interior trim hasn’t suffered from all the hard use and it comes up as new with a good clean. The week came and went and very soon our own Carens was back from the hospital, sporting a brand-new wing mirror. Kia very kindly took care of the repair, but the cost – well over £500 – is worth pointing out, particularly as more cars are equipped with such complicated pieces of kit.[CD]

Mal Hay (@MalcolmHay)

Daljinder Nagra (@DJonmotors)

Nigel Swan (@motoringnut)

the knowledge

Fifth report:

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: 1,331

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: 2,145

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: 668

This month’s highlight Spending some quality time with a car that’s right at the top of its game.

This month’s highlight Left high and dry – but that’s a good thing as the rains continued to pour down.

This month’s highlight Repaired and restored, our Carens comes back from the hospital. CarDealerMag.co.uk | 97

data fiLe.

Why the little things can have a big effect on your customers

riving home recently, following a quick pitstop at a local bakery for a sausage roll and sandwich for my lunch, a small orange light appeared on my dashboard, with a clever mileage countdown showing me how many miles I had left before the next service was due. In normal circumstances when this happens, I hold my head in my hands at the thought of what lies ahead: the basic service cost, the leaving of the car and my telephone number at the dealership for them to contact me during the day, and then the final act of actually picking the car up and being landed with the final bill. However, as I have recently joined a car scheme at work, all I had to do on this occasion was reach for the maintenance card (placed at the back of the tax disc for easy access), and call a hotline in order to book my car in for its routine service. The car was duly booked in, and I received a confirmation e-mail detailing the instructions for the day, with full details on how to change the booking if required. Perfect! All of this interaction took place without any personal contact with the dealership, the chosen one being the closest one to my home for ease of use and the convenience of being able to get to work easily, having dropped the vehicle off in the morning. It’s when I arrived with my car for its service that things (unfortunately) started to deteriorate somewhat, and unfortunately for this dealer, service is something which is of paramount importance to me. First, they couldn’t find my service booking record so

Jonathan

Such TIME IS MONEY

had to make a new one, which irritated me somewhat. Secondly, the amount of time spent booking my car in seemed to drag on, which wasn’t useful as I had a tight schedule, and lastly, having finally sorted out my courtesy car, upon going outside I found it to be something that I would struggle to actually sit upright in. In this day and age I do not think I am alone in wanting decent service where the ‘small’ things matter (as added together they make your customer experience so much more enjoyable) but I also expect it, especially if I am planning to be a repeat customer with a particular company. The marketplace in our industry is very competitive,

‘The marketplace in our industry is very competitive’ which places a requirement on you all; if you want to attract and, more importantly, retain your customers, your service offering needs to be exceptional. And it needs to ensure that the needs of your customers are met. When I gave feedback upon collecting my vehicle regarding the courtesy car, I was given an indication that I was responsible for advising them what car I required for the day! It’s the little things that add up for a customer, and because of that I will be going somewhere else the next time the service light comes on.

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

FEATURE

Geneva Motor Show We report from Switzerland’s sweaty halls

Are you looking for a Non-Prime Lender? READERS VOTED US NUMBER 1 SO WHO ARE YOU USING...?

Get In Touch Today On: 0115 946 6317 | marketing@frfl.co.uk

CarDealerMag.co.uk | 99

��| CarDealerMag.co.uk