Car Dealer Magazine: Issue 78 by Blackball Media

CarDealerMag.co.uk | ÂŁ3.50

Issue 78 | September 2014

Power Awards 2014 -

| the best suppLiers | the best manufacturerS | voted for by you

EFFECTIVE HEADACHE

RELIEF Consistent. Reliable. Efficient.

02 | CarDealerMag.co.uk

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IGNITION.

EDITORIAL EDITOR James Batchelor

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

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

head of design Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

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, Nick King, Mike Jones, Jonathan Such, Mal Hay, Daljinder Nagra, Gareth Bethell, Diana Hargreaves, John Bowman, Becca Chaplin and Danielle Bagnall

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years is a long time. Welcome. Five That’s how long Car Dealer Power has been running. It’s our unique survey in which we quiz the nation’s dealers to ascertain their views on the suppliers and manufacturers they work with. We knew we were on to something good back in 2009, and every year dealers haven’t been backwards in coming forwards. They know that the survey is 100 per cent confidential and the only way to get their views across. This year was like no other. We had an unprecedented number of survey responses giving the clearest picture of what car dealers are thinking right across the UK. And to mark the achievements of the companies and manufacturers that topped each category, we went just a short distance from our home in Gosport to Portsmouth. It’s far more glam than you might think! We hold the Car Dealer Power awards ceremony at the top of the city’s stunning Spinnaker Tower. And with a spectacular sunset and around 90 happy faces, this year’s event was the best yet. Scan the QR code above right to see our special video from the night. As a special treat, we went to America to see how the Car Dealer Power Best Manufacturer of the Year does business on the other side of the Pond. It makes for a fascinating read! Turn to p43 to read about this year’s winners and highly commended winners.

SPECIAL COVER HOPEFULLY the cover was good enough to encourage you to pick up this issue, and let me say we regard it as a bit of a Car Dealer special – that’s no ordinary marketing shot, I can tell you. We commandeered one of the dark and empty garages dotted around the Car Dealer site, papered up the windows, parked a Kia Pro-Cee’d GT in it and left our clever snapper Dean Smith to his own devices.

He’s a dab hand at ‘light painting’ – it’s a technique in which a light is shone on the car and moved over the bodywork with the photographer using a slow shutter speed. Dean’s created a stunning pic, I hope you agree. DVLA GRILLED OUR Car Dealer Forum – cardealermagazine.co.uk/forum – has been full of comments and threads from confused and angry dealers. They’ve all been chatting about the changes to the road tax system and how this will affect their businesses. We thought it was time to speak to the DVLA about it and after months of haranguing, it finally agreed to answer your questions. Turn to page 20 to see what it said. Enjoy the issue.

James Batchelor, editor

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

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

INSIDE. ISSUE 78 I SEPTEMBER 2014

Dashboard

Feedback

Car Dealer Club

Fiesta Special Interview: Oliver Morley

Kia in the USA

Big Mike

Selling cars the American way... and where the Korean manufacturer subjects its vehicles to some of the most extreme conditions on Earth

Baggott Real Deals

Forecourt Skoda Octavia Scout Fiat Panda Cross

20 38

On the spot: The DVLA’s chief executive answers your questions

‘‘

Toyota Yaris After Aygo, Yaris is next in line for a Toyota facelift

Car Dealer Power American Hustle

There’s a lot to be said for simplicity. I’m a bit worried about self-driving cars.

Skoda Octavia Scout tested

Features

James Baggott

Trading Up Focus on: HPI Focus on: Mapfre Abraxas

Data File The Statistics Taking Stock Buyers’ Guide Auctions Trader Talk Market Insight Workshops

CarDealer

POWER Oh what a night! Car Dealer Power was our biggest and best yet IN ASSOCIATION WITH

GEN-3 GLASSCOAT

OUR AWARDS...

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 on to bit.ly/UsedNoms14

WINNER

USED Is Money CARAWARDS IN ASSOCIATION WITH

38 40 41

43 66 75 76 78

80 83 84 86 88 90 92 94 95 98

SPONSORED BY

2013 WINNER ea arD le

As voted for by dealers, the Car Dealer Power Awards are unique in the industry. Find out the winners in this year’s survey by turning to page 43

2013 WINNER

Long-termers

WHEELER DEALERS

CarDealer Time

Suppliers’ Guide with Litton

07 10 17 20 33 35 36

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

You couldnâ&#x20AC;&#x2122;t ask for a better selection of warranties. As the UKâ&#x20AC;&#x2122;s no 1 provider, our award winning range of GAP insurance, service plans and cosmetic warranty products is also designed to please customers and boost business performance. 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. 06 | CarDealerMag.co.uk

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

Our website at CarDealerMag.co.uk

On Twitter Follow @CarDealerMag

Forum CarDealerMagazine.co.uk/forum

What you’re saying on Car Dealer Forum

Chris Evans rips into Toyota’s new Aygo in The Mail on Sunday...

It’s a question of trust

When the boss is away...

Are celebrity reviews fair on manufacturers or not? Despite the car getting favourable reviews across the board – including Car Dealer – Evans believes new Aygo is a one-star car. My question is: Do ‘celebrity’ or ‘celebrity-endorsed’ car reviews help sell cars? And if a car has a bad review from a celebrity, does it affect selling that car in your showroom? James Batchelor Do these celebrities even write the copy in the first place? James Baggott I would imagine a serious review would have more bearing on how a car sells rather than an ‘entertainment’ review written by someone like Jeremy Clarkson or Chris Evans. I remember it used to be the same with music magazines. Ask someone who’s trying to be cool and cuttingedge to review the latest Coldplay album and it will get slated no matter how good or bad. Ask them to review the latest ‘folk electro’ from a North Korean brass band and it will get five stars. Gavin@Rousdon When you drive million-pound supercars and

your everyday smoker is a Range Rover, do you really have any right to comment on entry-level cars like this? Andy Entwistle Do agree with some of the reviews but usually try to listen to several, and read Car Dealer Mag for the proper advice. Paul Stewart

Will it be ‘bonjour’ to the Del Boys? Will the roadside Del-Boy traders finally be finished off with the new car tax laws? I hope so! Most survive by taxing the car using the new keeper slip and sticking it out on the street whilst advertised. As this is no longer the case I’m guessing they won’t be forking out on premises. Wheelerdealer1 There will, in all likelihood, be more rather than fewer. Nobody is going to know if a car is taxed or not. Unless they do an online check. Do we really think the police/local authority/DVLA have spare members of staff swilling around to roam the streets checking parked cars? GreenGiant

Our happy customers are what matters to us most. We’ve just won the “Extra Mile” award.. Putting YOU first! @BlueskyTeam @JRRBatchelor @CarDealerDunc @CarDealerEd thanks for a lovely evening –

We always like a compliment! A relevant read every month I have to say that Car Dealer is, without doubt, the most useful and interesting magazine around – well written and very relevant to today. Martin MacIver Head of commercial Gemini Systems

Picture of the month

Twitter thread of the month Sorry to be missing @CarDealerMag #CDPower Awards for the 1st time tonight. But see you in December for Used Car Awards. @mikebrewer

I don’t have staff, but I’m fully aware of what happens when the boss is not looking or away (I’m ready to be shot down!). So many different people tell me ‘tales’ of things that go on in various businesses. What would you see differently if you had cameras? Would all your staff be working in the same way? Would anything go missing if you weren’t watching them? It’s all about trust after all – isn’t it? Saying that, how many cases have we all read about theft on a grand scale involving staff? Only a few weeks ago I was talking to an old colleague who told me how he caught his ‘trusted’ salesman pocketing some of the cash deposits – and selling the ‘older’ part-exchanges. The only reason he found out was he took a call from a customer about the part-ex – that wasn’t in part-ex if you know what I mean! The salesman had taken it in – sold it for cash to another customer. If you have time, check out the television programme ‘Undercover Restaurants’. It’s worth watching. I know it’s American but it’s great entertainment and a real eye-opener. In my area it’s on Freeview channel 41 (may be different in a different area) and usually screened at 10pm. Umesh Samani Specialist Cars, Stoke-on-Trent

thoroughly enjoyed it and see you next year! @dmdkelleher Let the celebrations begin – thanks to all the dealers who voted us Dealer Management System of the Year #CDPower @Dragon2000 First of many selfies from the #CDPower awards. Well done @spidersnetUK on your win!! God we look good don’t we!? @CarDealerDunc

Those who attend the Car Dealer Power awards are always impressed by the view from the top of the Spinnaker Tower, Portsmouth, and here’s why! The ship in the foreground is HMS Warrior. CarDealerMag.co.uk | 07

DASHBOARD. BLAZE DRAMA

Fire ruins Land Rover collection A FIRE at a classic Land Rover dealership has left its owners with only the remnants of a unique collection worth £100,000. Four of six vehicles at the specialist site were completely destroyed. They dated back to the years between 1968 and 1979 and had an estimated value of £20,000 each. Firefighters were called to the Land Rover Centre in Huddersfield at 5am on July 21. The fibreglass roof had melted on to the vehicles.

PEUGEOT

New dealership is firm’s twelfth DEALER group City Motor Holdings, trading as Autoplaza, has purchased a Peugeot dealership in Newbury, Berkshire. City Peugeot becomes the company’s 12th dealership and will offer new and used car and van sales, servicing and MOTs as well as parts and accessories. Managing director Steve Hemlock says there are further growth plans in the pipeline. ‘We’ve got a lot of expansion on the cards all planned for completion by the end of 2014.’

Bristol Street Motors celebrates refurbishment in Hartlepool bit.ly/BSM-refurb

Why Skoda’s new VisionC is ‘unlikely’ to enter production Success in the Far East is at the forefront of Czech brand’s plans

koda is ‘unlikely’ to put its striking VisionC four-door coupe into production, a company director has told Car Dealer. The stunning concept, which was unveiled at the Geneva Motor Show in March and received its UK debut at the Goodwood Festival of Speed just a few weeks ago, isn’t likely to get past the design study stage. Despite many column inches of good press last March and keen interest from UK customers at the West Sussex event, the four-door coupe is expected to be dropped, and all because of the Chinese. Skoda UK brand director Alasdair Stewart told Car Dealer that a car as important as the VisionC has to, first and foremost, ‘work for China’. He said that while the car received good reactions from Europeans, the Chinese market was at the forefront of Skoda’s future plans. ‘I think it’s unlikely it will make production,’ he said. ‘VisionC has to work for China – it’s a massively important country for Skoda and there just isn’t a sports car market out there big enough for this car.’ Stewart added that spending ‘around £500m’ on

by JAMES batchelor @JRRBatchelor

brand-new tooling for a car without a Chinese business case made the project’s future doubtful. Skoda’s performance in the burgeoning Chinese new-car market is one of the company’s major goals in the coming years. The Czech brand delivered 227,000 vehicles to customers in China last year – that’s almost a quarter of Skoda’s total sales for 2013. The country is Skoda’s strongest individual market and June this year saw Skoda achieve sales of 23,600, an increase of 11.3 per cent over June 2013 (21,200). Overall, in the first half of 2014, the Czech brand’s sales in China increased by 8.7 per cent to 130,700 units – that’s compared with 40,900 cars sold in the UK so far this year. And that’s not to mention Skoda having plans to sell 500,000 cars in China by 2018. Therefore, producing a car that wouldn’t sell well in China is not on Skoda’s agenda. If the VisionC project gets canned, it’ll come as a blow to Skoda in Europe, as the four-door coupe presented a more daring and sporting side to the Czech brand – yet another car to bury Skoda’s out-of-date image of producing unfashionable cars. Skoda Octavia Scout tested, pages 38-39

AUDI

Ridgeway opens new-build outlet DEALER group Ridgeway has opened a new Audi dealership in Cowley, Oxford. The new showroom reflects the success Ridgeway is currently enjoying, as it is the firm’s first new-build garage. Oxford Audi, located at Oxford Business Park North, Garsington Road, Cowley, has a number of features including an interactive car configurator wall. 08 | CarDealerMag.co.uk

The fourdoor coupe is expected to be dropped

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DASHBOARD. FEATURE.

Ask Lawgistics

I lost the claim.. now I seem to have lost the car

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

What is this early conciliation that is now in place for employment tribunal claims and how does it affect employers?

Any claim lodged with the employment tribunal is now subject to early conciliation, a service run through Acas. Whereas before, Acas involvement was only at the request of the parties, pre-conciliation now makes its involvement mandatory at this early stage. Once a person issues a claim to the employment tribunal, their case will be sent directly to Acas and a conciliator will be allocated to their case. This will then ‘stay’ the issue date of the claim for one month, during which time the conciliator will try to settle the case. The conciliator will discuss the case with both parties individually, and will be able to guide parties to the potential strengths and weaknesses of their case. This will help narrow down the issues in dispute and, potentially, if the whole claim cannot be settled, some elements may be resolved. The further positive is that the claimant may see that their case is weak and thus may decide to drop it. As the claimant will not have had to pay their issue fee at this stage, they will not lose anything from walking away from the conciliation. If the claimant gets the feeling that their case is weak, knowing the next stage will involve the payment of a fee may also deter them from pursuing the matter further.

I lost a small claim in the county court against a customer. The customer got awarded a judgment for the amount she paid for the car – I paid it – but she is now refusing to hand the car back. She says that this was not a part of the judgment. What can I do? If it is simply a case of a customer successfully rejecting the vehicle under the Sale of Goods Act (and not just reimbursing for unsuccessful repairs) then it seems to be an oversight by the judge. There are several options. One is to appeal on a point of law – the point being that rejection clearly allows the seller to have access to the vehicle, which the court did not consider when giving judgment. There are strict deadlines though. If the customer still has the vehicle there may be the need to apply for an injunction preventing it from being sold pending a hearing for an order that the customer ‘delivers up’ that vehicle. Alternatively, issuing a claim against the customer for the value in the car may be worth consideration. This issue has to be mentioned to the judge at the time.

On the other side of the coin, a less articulate claimant might benefit from having a third party available to put their case across when ordinarily they wouldn’t have been able to benefit from that. This may therefore assist the claimant more than the respondent employer. We are happy to discuss cases with Acas on our clients’ behalf, providing we have their prior instruction to do so. If the conciliator believes that there is a reasonable chance of the claim being settled, and the parties are legally represented, the conciliator is able to extend the one-month timescale by 14 days. There are a few types of case that will be exceptions to the early-conciliation procedure, notably if the claimant is part of a multiple claim and another person within this claim has already undertaken the preconciliation process. If the conciliation is successful, the parties will both have input into the wording of the ‘COT3’ settlement agreement. When the parties are happy with the wording, the COT3 will be signed and become binding on both parties in full and final settlement of the dispute. It is key when drafting terms for the COT3 to make sure that it is a global, allencompassing agreement, so that the claimant can’t then begin another claim against you regarding the same issues. Also, in these days of social media, it is beneficial to have a confidentiality clause. Again, we can advise clients as to the exact wording to use in a COT3 to assist them in achieving the most effective settlement.

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What can I do about this threat from a customer?

A customer has told our dealership that he will be taking us to court for offences he says we have committed under the Consumer Protection from Unfair Trading Regulations 2008. Help!

These regulations replaced certain laws such as the Trade

Descriptions Act 1968. Typically, the allegations relate to misleading actions or omissions – where the trader fails to pass on information likely to ‘scupper the deal’. However, our response to those customers is blunt. For one, provision of the regulations states that enforcement powers

are given (in England and Wales) to weights and measures authorities – essentially, trading standards. As such, that customer does not have the authority to make any allegation or to bring any action under those regulations. And so we simply tell them that. Politely though, of course!

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WHY I JOINED car dealer club

Customer backs down after this member gets some sound advice from our legal team UGBOROUGH Garages in Ivybridge, Devon, was able to capitalise on its Car Dealer Club membership when a customer recently threatened legal action. Sales manager James Lugger suspected they didn’t have a leg to stand on and Car Dealer Club legal partner Lawgistics was able to confirm this, saving Ugborough Garages a lot of cash. Lugger explained: ‘I had a customer complaint and I thought I’d give Lawgistics a go and see what they said about the situation. ‘The customer had bought a 2006 Honda CR-V with nearly 100,000 miles on the clock and threatened legal action over a chip on the windscreen. ‘As part of our package, the vehicle came with a PDI inspection and also a 12-month MOT, so this wasn’t a dangerous chip – it was just a cosmetic thing.’ However, the customer wasn’t satisfied and threatened legal action – and this was when Lugger picked up the phone to the experienced team at Lawgistics to see what they had to say. ‘They basically reiterated what I thought initially,’ he said, ‘but it was good to have this confirmed by a professional.’ When Lugger spoke to the customer

again the matter was swiftly ended, saving him and the dealership money. He said: ‘We didn’t need to take any further action in the end because I explained what Lawgistics said and that deterred him. This is really good because I’m quite a nice person and otherwise I probably would have ended up replacing a windscreen!’ Lugger admitted that his main motivation to join Car Dealer Club was the magazine but said that becoming a member was paying off in other ways too. ‘There’s quite a long list of benefits to Car Dealer Club but I’m also a bit of a geek so I like reading about cars and particularly the stats in the back,’ said Lugger. ‘However, the other benefits such as the advice on offer from Lawgistics were also quite appealing. The other discounts available to members are really useful too because they’re for companies that I actually use.’ Car Dealer Club membership costs just £39.99 for a year. Along with a subscription to the magazine, members get legal advice from Lawgistics worth £195 and a whole host of other benefits (see below). ‘I would definitely recommend the service to other people because customers are under the impression that all motor traders are crooks, whereas as a motor trader, you see a lot of customers that are crooks! We at least need a system where we can protect ourselves. There are plenty of ways that customers can protect themselves but not so much for us. Car Dealer Club offers some great protection.’

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LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some 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.

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Lugger flagged up a legal issue and Lawgistics were able to help

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Dragon2000 CarDealerMag.co.uk | 11

DASHBOARD. NISSAN

Happy to work at Blackshaws! A FAMILY-RUN Nissan retailer in Northumbria could be the UK automotive industry’s happiest workplace. Official statistics show the average UK business loses almost 12 per cent of its staff each year, with figures for the automotive retail sector thought to be even higher. But Blackshaws Nissan in Alnwick is defying accepted convention with an average annual staff turnover rate of just 2.5 per cent.

MITSUBISHI

‘An amazing opportunity’ A NEW Mitsubishi dealership has opened in Portsmouth. Seward Mitsubishi went live in July, attracting plenty of interest and taking lots of orders too. Sales manager John Buckham said: ‘We are really lucky to be able to join the Mitsubishi franchise, especially when you consider where Mitsubishi are right now. What an amazing opportunity for us to get on board with a franchise that is in the midst of such strong growth!’

Sytner VW team raises over £2,000 for charity bit.ly/sytner-funds

MPs don’t understand the motor trade, survey shows ‘Terrible confusion’ is only perpetuating unhelpful stereotypes

ost MPs are completely out of touch with the automotive world, according to a survey carried out for the Institute of the Motor Industry. A total of 99 MPs from across the political spectrum were quizzed, and while many recognised the number of jobs the industry provides, they typically showed a lack of understanding with more than half suggesting the motor trade was low-skilled, low-paid and dirty. On a more personal note, MPs see Ed Balls fitting in quite nicely in a car garage, according to the poll. Other MPs identified as having the necessary practicality and work ethic for the job were Eric Pickles and veteran firebrand Dennis Skinner. MPs said Shadow Chancellor Mr Balls was ‘not afraid to get his

by DAVE BROWN @CarDealerDave

hands dirty’ and ‘likes to know how things work’. Other MPs fell back on clichés to take a dig at rivals such as Prime Minister David Cameron and Deputy Prime Minister Nick Clegg. One Labour MP said of Mr Clegg: ‘He reminds me of a car salesman. He says one thing when you take the car, then he takes you for a ride.’ The Chief Executive of the Institute of the Motor Industry, Steve Nash, said: ‘There is a terrible confusion in Parliament about the people in our

industry. They understand that large numbers of hard-working people make their living in it, and that 35 million vehicle owners depend on them to keep them on the road. ‘Beyond this they are quite happy to perpetuate unhelpful stereotypes of a grimy backstreet trade. This attitude is not helping the public to understand the level of skill necessary to work in our sector.’ The IMI will be calling for MPs to support licensing the motor automotive sector when they return from their summer recess later this year, Nick Clegg: Mr Nash ‘He takes you for a ride’ added.

VOLKSWAGEN

New showroom next to the M4 CONSTRUCTION of a new Volkswagen showroom in West London, next to an elevated section of the M4, is well under way. Once the new outlet opens in November, customers will be able to access the premises from a car park on the ground floor, from where they will go up to the first-level showroom. There is space inside for 30 new cars and more than 60 used cars. ��| CarDealerMag.co.uk

... but here’s one who HAS visited a dealership recently CHANCELLOR George Osborne, who is also MP for Tatton, Cheshire, presented the keys of a new Motability car to his constituent Rory Moss recently. The presentation took place at TrustFord, Wilmslow, Cheshire. Rory, 54, has multiple sclerosis and has leased cars with Motability since 1996. He can only walk a few paces and has little use of his left-hand-side, so he uses an

electric wheelchair. His Ford Kuga has been fitted with an electric hoist to store his wheelchair. Rory said: ‘Motability has been

a great support to me over the years, so I am very grateful to the scheme. My car provides me with a lifeline and without it I would be completely stuck indoors. ‘Although I am unable drive any more, my carers can drive me wherever I need to be.’ Mr Osborne said: ‘It is a great pleasure to be here and present my constituent Rory with the keys to his new Motability car.’

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DASHBOARD.

Marvellous Mavis reaches 45 years of service at Vertu VW Her experience and common sense are invaluable, says sales manager

ertu Volkswagen Boston has helped a member of staff celebrate 45 years of loyal service at the dealership. Mavis Watson, 63, began working at the Marsh Lane site at the age of 18. During her time she has seen six changes of ownership, culminating in Vertu Motors plc, the sixth-largest motor retailer in the UK. Mavis has also worked with several different franchises and seen the transition from manual working to fully computerised systems. She has been involved in a variety of roles over the last 45 years, from accounts assistant to reception, and currently manages the administration for the dealershipâ&#x20AC;&#x2122;s sales function. Mavis received a letter of

congratulations from CEO Robert Forrester and was presented with champagne, flowers, a wall plate depicting Mavisâ&#x20AC;&#x2122;s love of cats and a crystal vase by sales manager Mike Devlin and Ian Batley from Volkswagen. Mavis said: â&#x20AC;&#x2DC;I was totally surprised that anyone knew that I was

celebrating 45 years working at the dealership, and even more surprised to receive such lovely gifts. â&#x20AC;&#x2DC;I have seen huge changes in my time here, both in working practices and in personnel and ownership but I have to say that I have always enjoyed my job. I donâ&#x20AC;&#x2122;t think I could have stayed for so long if I didnâ&#x20AC;&#x2122;t!â&#x20AC;&#x2122; Mr Devlin said: â&#x20AC;&#x2DC;Mavis is a fantastic example to all of us and is an integral part of the dealership team. â&#x20AC;&#x2DC;She has been here longer than any of us and her experience and common sense are invaluable in helping the sales process to run smoothly and in facilitating the excellent customer service we pride ourselves on delivering.â&#x20AC;&#x2122;

london stores

Tesla opens second base TESLA has opened a second store in London. The new outlet, in Horton Road, West Drayton, features a design studio for customers, a seven-bay service area and a two-bay delivery centre. Itâ&#x20AC;&#x2122;s 15 miles from the manufacturerâ&#x20AC;&#x2122;s other UK store in Westfield White City. George Ell, UK country director, said the new facility would be a â&#x20AC;&#x2DC;delightâ&#x20AC;&#x2122; for customers and prove a perfect base for the company. Tesla is planning an exclusive Model S customer airport shuttle to Heathrow from the new service centre. The pre-bookable offering will allow customers to have their car serviced whilst away on holiday or business. Tesla will drop off drivers, passengers and luggage at the airport and meet them in arrivals on their return.

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DASHBOARD.

Fab Fiesta is UK’s favourite

After 37 years on sale, Ford’s stylish supermini rises to the top and beats Escort to No.1

ith 4,115,000 sales clocked up since 1976, the Ford Fiesta has become the UK’s best-selling car of all time. First launched in 1976, the Fiesta has led the small car segment in the UK for 27 of the 37 years that it has been on sale, and it has been Britain’s best-selling car since 2009, when it overtook the Ford Focus. July of this year saw it surpass the historic record of the Ford Escort, which sold 4,105,961 in the 32 years it was on sale in the UK from 1968 through to 2000. Mark Ovenden, Ford Britain chairman and managing director, said: ‘The Ford Fiesta has gone from strength to strength and today’s car combines style, value, driving dynamics and remarkable technologies such as the multiaward-winning 1.0-litre EcoBoost engine. ‘It continues to outsell its nearest retail competitor by more than two to one –

by JAMES batchelor @JRRBatchelor and that really tells the story of this extraordinary car.’ Ford says more than 40 per cent of Fiesta buyers in the UK choose the turbocharged 1.0litre EcoBoost engine, and almost 90 per cent opt for higher-level specification – Zetec, Zetec S, Titanium, Titanium X and ST models with the Ford SYNC voice-controlled connectivity system. The most popular Ford Fiesta model in Britain is the Zetec, priced at £12,945. Fiesta landmarks 1972: Fiesta conceived as secret Project Bobcat to create a new Ford small car 1973: Ford Board of Directors give go-ahead to produce Bobcat 1975: Fiesta name chosen by Henry Ford II

1976: Mk I introduced in 1.0- and 1.1-litre Ghia form. UK launch falls into 1977 1979: Millionth Fiesta built for worldwide sales 1981: Ford introduces the new Fiesta XR2 1983: Mk II launched 1987: Best sales year – just under 154,000 Fiestas were sold in Britain. 1989: Mk III arrives with ABS and five-door option 1990: 133bhp Fiesta RS Turbo storms in 1996: Mk IV launched with Zetec engines 2000: Mk IV facelifted 2002: Mk V arrives 2005: Racy 148bhp Fiesta ST created 2006: Ford gives Mk V a refresh 2008: Mk VI debuts 2009: Fiesta arrives in North America 2012: New Fiesta launched, new powertrains including the award-winning 1.0-litre EcoBoost and technologies with Ford SYNC and MyKey 2013: New Fiesta ST arrives

Fiesta history

Fiesta Mk I

Fiesta Mk II

Fiesta Mk III

New Fiesta

Fiesta Mk VI

Fiesta Mk V

1976-1983

2012-present

1983-1989

2008-2012

1989-1996

2002-2008

Fiesta Mk IV 1996-2002

Fiesta Mk IV facelift 2000-2002

CarDealerMag.co.uk | 17

DASHBOARD. FIAT

Panda Cross fills gap in the market FIAT thinks it can take on the big boys in the 4x4 sector with its new Panda Cross, according to marketing chief Vincenzo Angelillo. At the launch of the new city-car-cum-off-roader, Fiat’s global marketing boss told us that he believes the new model fills a gap in the market by combining genuine off-road credentials with a striking design. Angelillo told Car Dealer: ‘We have produced our most capable car yet.’ The Panda Cross comes to the UK first with a release date of September 20. Road test, page 40

INFINITI

Work starts on centre no. 10 THE first steps towards the opening of Infiniti Centre Newcastle were taken when the refurbishment of a former Honda dealership got under way. The north-east dealership will be the 10th Infiniti Centre in the UK. Located at Silverlink Retail Park, the new centre will create up to 15 new jobs and serve the areas of Tyne and Wear, County Durham and Teesside. It is expected to open some time this month.

TOYOTA

100th Hilux for construction firm A TOYOTA dealership in Truro, Cornwall, has provided a local construction and agricultural services firm with its 100th Hilux. Family firm WH Bond & Sons has been using Toyota Hiluxes for 21 years. And there will be no stopping it now it has reached three figures – the company plans to continue ordering three more every month. ��| CarDealerMag.co.uk

Thriving Lifestyle Group opens new Ford and Mazda showroom bit.ly/ford-mazda

‘Our strong partnership with dealer network will go on’ I’m clearly delighted by my appointment, says BMW’s new UK MD by JAMES batchelor @JRRBatchelor

MW Group has appointed a new managing director for the UK and Ireland – Graeme Grieve. Grieve, 53, is currently based in Munich and responsible for the BMW Group Importer business, covering more than 80 countries around the world. He takes up his new role on October 1 and succeeds Tim Abbott, who has been appointed managing director, BMW Group South Africa. Grieve joined BMW UK in 1990 and held several positions before being appointed sales director in 2001. He subsequently joined Rolls-Royce in 2006 as global sales and marketing director, before moving to Munich in 2009 to take responsibility for the BMW Group Importer business. During this time, he was also responsible for establishing an independent worldwide sales organisation for Mini within the BMW Group. Ian Robertson, member of the board of management of BMW AG responsible for BMW sales and marketing, said: ‘Graeme’s breadth of experience across the company has proved to be a great asset in his current position and provides an excellent foundation for his leadership of BMW Group UK.’ Grieve added: ‘I am clearly delighted with my new appointment. While the current business environment remains dynamic, our strong brands and outstanding range of cars and motorcycles provides many opportunities. ‘My role will be to give clear leadership and direction to the company and to continue our strong partnership with our dealer network.’

Graeme Grieve takes up his new role on October 1

No spaces left! Bangers4BEN 2014 is officially full BANGERS4BEN 2014 is officially full ! Those who have signed up to our epic charity challenge can look forward to making the trip from the UK to Italy this October safe in the knowledge that their place has been secured. For 2014, our charity run takes on a classic caper theme – The

Italian Job. Bangers4BEN will take in instantly recognisable locations from the muchloved 1969 big-screen hit. A four-day event, it starts in Dover on Saturday, October 11, with the final destination being the Fiat factory in Turin before heading home on Tuesday, October 14. En route, we’ll be travelling along

one of the world’s best driving roads, the Stelvio Pass, and dropping by the picturesque Lake Como. Kelly Neal, events and exhibitions manager at BEN, said: ‘We are very grateful to all the teams that have entered, and really appreciate their support, which will help BEN raise much-needed funding. We look forward to seeing what themes the teams create this year!’

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INTERVIEW.

On the spot: We put YOUR questions to DVLA chief executive Oliver Morley It’s taken months to arrange, but Car Dealer has finally spoken to the DVLA and put your questions to the top man. JAMES BATCHELOR listened carefully to the answers

There’s a great demand for a digital offering, says Oliver Morley ��| CarDealerMag.co.uk

Q A

What challenges is the DVLA facing at the present moment? We’ve got a clear strategy which we have published and we have a real focus on providing good services across the board. I see the DVLA being a multi-channel business with really good digital services. The future is definitely digital and we believe the DVLA and Swansea can be a centre of excellence for digital transactions. We want to provide really, really good services – people may have to pay a tax or register a vehicle or get a licence but we want them to at least feel as though it has been a good experience.

Q A

Is this mission to provide a good customer experience the reason behind new initiatives such as licence fees being reduced? Yes and we are making efficiency savings too. I think everyone is amused when the government plans to cut fees – but we can genuinely make these savings and pass them on to the customer. When the consultation comes to an end I would be surprised if there is a strong lobbying against the fees reduction.

Q A

Why are you going digital so much? People want it. One really important thing is that customers really matter – and customers really want digital. We will carry on providing the Post Office as a channel for lots of digital transactions, but we also know that what people would like is a really streamlined and effective digital service. You can see that with the tax disc and the growth in licences – people want to use it, it fits with their lives and we believe we can do this really well.

Despite this, the V5 is still a document that isn’t digital. Dealers are saying they are waiting for too long for V5s in the post – why aren’t these digital? This is certainly something we are planning to do. Effectively, we are going to allow people to ask us to hold back on printing a paper version of the V5 over the next year – this is a clear part of our digital deliverables. Actually, to be honest, there are a huge number of people who would like to have the paper copy, but this digital V5 will be very much for the trade.

Question from Gavin@Rousdon on the Car Dealer Forum: Would you consider changing the way the plates system works? How about changing the system so dealers can text the car’s number plate instead of carrying around trade plates? There are no plans to change this and this is more of a government policy point – it requires legislation to change the way the trade plates system works, but there is no view to change this.

…but do you think this is a system that has worked well for a long time and isn’t something that is likely to get changed? We know that the motor industry finds them incredibly useful, so we would need to think quite carefully about how to change the way trade plates are managed. We don’t want to suppress the flow of vehicles. It is something that if it did come up, it would need to be thought about really carefully.

Question from the Car Dealer Forum: Would you consider allowing people to tax a car without it being registered to them? (At present, you can tax a car with a V5C but you have to be the registered keeper if you want to tax online.) We do recognise there are occasions when the registered keeper will be unable to do so. I was at Swansea’s call centre only yesterday and I heard many examples of people being on holiday and they couldn’t tax their cars. We do understand that people may well ask a relative or a friend to tax a vehicle on their behalf, and the best way to do this is by using the online system.

Q A

Will the new tax system spell an end to the roadside trader selling dodgy cars? I certainly think our ability to enforce and promote honest trading and dealing is going to be much enhanced to the benefit of all of us, including the Treasury. When I say much enhanced, this is in terms of a much more digital landscape. It will be much harder to be dodgy – as it were – in that kind of environment. From our point of view, we really are thinking about this much more, but that does mean there will be greater scrutiny and greater support of good practice. In the past, the DVLA hasn’t focused enough on the needs of the trade and industry.

I personally think there could be an explosion in roadside traders and people selling dodgy cars. If there isn’t a visual way of seeing whether a

CarDealerMag.co.uk | 21

INTERVIEW.

‘So how can it be lawful to sell drivers’ details to parking firms?’ Continued from previous page car has got tax, it’s going to be easier to pass on a suspect car surely? Well, except we need to make sure the public understand that the tax disc is going. Certainly, our communication on that is building up well and we believe that by October, people’s understanding is going to be pretty much universal. It’s not as if the tax disc itself was an incredible protector of the probity of the motor trade, so I don’t think it will make a significant difference. Of course, we will keep an eye on this matter, but the most important thing is the awareness that the tax disc is going and when you buy a car you will need to buy tax.

Q A

Is this more a case of people’s buying habits having to change? In the future, you can go to gov.uk which is a place you can trust and look at the vehicle you’re looking at right in front of you and you can check tax, MOTs and insurance. In some ways, this is far more trustworthy than the tax disc, which can be forged or amended.

Used Car Seller asked on our forum: ‘I lost a sale today thanks to the DVLA. My customer comes back tomorrow to get his deposit back because I can’t tax his car. I could have taxed his car if the local DVLA office was still open. The Post Office can’t do it. I phoned the DVLA but the previous owner hasn’t put it into trade and it’s still registered in his/her name. I was told ‘Sorry sir, there’s a four-to-six-week wait.’ In other words, ‘We don’t care.’ Our response is that we are generally giving pretty good service. We are being very clear that we dropped the ball on the local office closure this time last year, and we didn’t provide a good enough service. We are now, generally, well within our performance targets and we are building a terrific new system for being able to do this digitally and we are working with the trade on how this can work more effectively. Our evidence certainly suggests we are well under our 10-day target. I have to admit a four-to-sixweek time to do a vanilla tax disc is excessive. It’s interesting – we need to work with the trade to get this stuff to work smoothly. People need to get the details of a vehicle into DVLA nice and ��| CarDealerMag.co.uk

There are some arguments the DVLA will never win, says Morley

promptly when the transaction takes place. So, for us, it is how we work with the trade to make this work well, but for the most part, dealers are happy with our service now – that’s not to say they were a year ago.

Question from Countryman on the forum: When a customer wants to pay for their tax by monthly direct debit, how is the dealer able

to arrange this for them prior to them collecting the vehicle? In terms of the direct debit, they will need to set this up themselves and this goes for the tax. It’s a very easy thing to do and, to be honest, what I would recommend would be that the dealer takes the customer through it during the sales process. A good car sale would include the element of saying, ‘Okay, before handing over the keys, let’s take care of the tax now so you can drive out of the showroom now.’ That would work with the direct debit as well. This way everyone feels comfortable.

Q A

So, would you say the whole sales process needs to change to incorporate this? I think a well-designed sales process would include it – and there’s also the question of disposing on to trade and how you would do this. We see quite a lot of problems with disposal on to trade because you haven’t got that robustness with, say, the address details and so on. Knowing

HOW CAN THIS BE ACCEPTABLE? MUCH-RESPECTED dealer and loyal Car Dealer Magazine reader Jim Reid sent us this picture of an envelope he received from the DVLA in May. He wrote: ‘This is actually a REAL envelope that arrived at our address containing cherished transfer tax discs and documents from the DVLA. Can you imagine what would happen if we filled in the forms in this state?’ We sent the picture to DVLA chief executive Oliver Morley, who replied: ‘We issue around 122 million pieces of mail a year and while our overall quality of service is high, some correspondence may slip through the net. Instances like this are extremely rare and I am sorry that on this occasion we failed to deliver the standard of service our customers expect.’

Morley believes the new tax system should be worked into the sales process

look on the information commissioner’s website and you can see their view on whether we should be releasing this data – and there is the view that reasonable cause does apply to this data. We are saying that if you park on someone’s land without permission, the landowner has the right to find out who it was. It’s very clear they comply with the parking code of conduct and there’s a right to appeal by Popla. We’ve significantly increased the number of times we audit this and we’ve suspended 22 companies in the past year and I am looking to increase the level of audit. This is a question of balancing the rights of two groups – landowners and vehicle owners, and I don’t think we are ever going to be in a position where we are satisfying both. My view is that we should charge appropriately for the data to cover our costs and we should ensure that charge is supporting a full structure of audit and that we have the support of the parking associations to ensure we have compliance with those terms. The DVLA is never going to be in a position where it is not criticised for this, but fundamentally we do have reasonable cause to supply this data. My philosophy here is that the DVLA is never in a position where it is making money – we are in a position where our fees are slightly too low simply because it is expensive and we are increasing the audit. We should be very clear on us trying to cover our costs as well.

Q A

that the car is taxed is great if it can be tightly integrated into the sales process and completes it for the customers.

and build the computer systems to support this, but I think there will be a point at which we really need to make this simpler.

So, when national newspapers are quoting you’ve made £6.7m on selling data, isn’t that true? We haven’t made £6.7m – we’ve charged £6.7m to cover costs of audit and administration.

Q A

A lot of dealers are telling us the cherished number plate system doesn’t work when it comes to part-exchange cars. They say it’s far too complicated and needs simplification. It’s very dependent on legislation and we have to meet the requirements of the legislation surrounding cherished transfers. I think it is something that could bear some simplification and I would like to review this. At the moment we are trying to review our own internal processes to make it as simple as possible

Why is the DVLA selling drivers’ details to parking firms? How is this lawful and how can you say it’s right to do this? Well, the first point to make is that if you have private land and someone parks on it, you have the right to enforce parking restrictions on it – although I acknowledge that not everyone agrees with this. I think that for a landowner to be able to enforce parking on their own land is fair. That question of how we release the data is effectively based on reasonable cause and you can

So, if you’re charging/making £6.7m, you’re always going to fall down on the side of the landowner? No, because the evidence is that we’re losing money. The irony is that I have news stories critiquing me for making £6.7m out of parking data and other stories that are critiquing me for losing £1.2m for providing parking data – how am I going to win this? We will never win this argument. We have to supply this data because the parking industry is a significant industry. [CD] CarDealerMag.co.uk | 23

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DASHBOARD. COURT

Unroadworthy Mercedes sold A CAR dealer has been told to pay more than £7,000 after selling an unsafe Mercedes from his garage in Christchurch, Dorset, the Daily Echo has reported. Simon Bentley, 24, of Littledown Avenue, Bournemouth, who previously traded as Barrack Road Car Sales, admitted charges of selling an unroadworthy car and misleading advertising. Bournemouth Magistrates’ Court was told that in August 2013 he sold a Mercedes-Benz C180 that had been written off and not adequately repaired.

Car dealer ordered to pay £1 after he conned customers Brothers were sent to jail for fleecing people out of £1million-plus

ar dealer Richard Loach will pay only £1 of a £400,000 confiscation order after he and his brother conned customers out of more than £1million. In May 2013, Loach, 47, of Roslyn Avenue, Gedling, and his brother David Loach, 50, of Main Road, Cotgrave, pleaded guilty to knowingly carrying on a fraudulent business with intent to defraud creditors, and were both jailed for two years and three months. Judge Michael Pert QC ruled that Richard Loach’s benefit from his crime was £400,000, but since he went bankrupt in 2008 and had no money available he would not have to pay it. However, the judge ordered him to pay a token £1 in the 28 days following the proceeds-of-crime hearing. At the Nottingham Crown Court hearing, prosecutors failed to claim money that Loach had been paying towards the mortgage on his marital home, because his wife, Dawn, had bought out his interest in the property. The court was told that she had wanted to protect the family home after creditors continued to knock on their door. The brothers ran the Left Hand Drive Car Company until Trading Standards began an investigation into the firm. The Trading Standards officers found that customers were paying for vehicles and not receiving them or a full refund. Others left vehicles with the pair on a ‘sale or return’ basis but did not get full payment or, in some cases, any money at all. David Loach’s benefit from the crime was also found to be £400,000, and £23,220 was ordered to be confiscated from him on August 23, 2013.

jAGUAR

Stars signed up for XE unveiling JAGUAR is again playing on its British heritage with a celebrity-fuelled campaign to promote its first move into the mid-size sports saloon segment with the XE. The campaign, dubbed FeelXE, aims to get across the ‘exhilaration and excitement’ of driving a Jaguar. The car marque has enlisted British celebrities including Emeli Sandé, pictured, and Idris Elba in the run-up to the unveiling of the new car.

SERVICING

Need for more transparency GREATER transparency of the car-servicing and repair industry is being called for to prevent drivers falling foul of unscrupulous garages. Eighty-four per cent of 1,000 motorists surveyed recently were unaware no qualifications were needed to be a car mechanic, according to joint research by the National Franchised Dealers Association and Trusted Dealers.

Strong performance and record profits at Inchcape bit.ly/inchcape-figs

Strong results and a new chairman at Vertu Motors DEALER group Vertu Motors has appointed a new chairman and announced a strong set of trading results so far this financial year. The company believes that thanks to strong revenue growth during the four-month period to June 30, 2014, it will be ahead of current market expectations. In a trading update, the group’s total revenues in the period grew by 34.8 per cent, with like-for-like revenues up by 16.4 per cent. Total gross profit also increased by 28.4 per cent – and Vertu says that this

reflects the impact of higher volumes of vehicles sold and acquisitions, with like-for-like gross profit increasing by 9.9 per cent. Its fleet operation’s likefor-like volumes and sales of commercial vehicles also increased – 12 per cent and 26.9 per cent respectively. However, Vertu Motors’ like-for-like new vehicle margins and gross profit per unit declined ‘as a consequence of

driving volume to hit manufacturer targets’, said the trading update. Vertu has also appointed a new chairman for the group. Peter Jones, pictured, will join the board as non-executive chairman on January 1, 2015 and will succeed Paul Williams. Jones is well known in the industry – he jointly owns the independent motor group Bramall and Jones Ltd. CarDealerMag.co.uk | 25

DASHBOARD. games

Bronze medal for technician A TECHNICIAN from an Audi dealership in Oxfordshire has won a medal at the Commonwealth Games in Scotland. Dan Rivers, 23, took England’s 18th medal at the Games after claiming a bronze in his 10-metre air rifle shooting event. He took part in a shoot-out with India’s Ravi Kumar to claim bronze and lost out on a silver medal in a further shoot-out with Abdullah Baki of Bangladesh. Abhinav Bindra, the 2008 Olympic champion, took gold, with Baki picking up silver. Rivers, who lives in Didcot, said: ‘The heart rate goes up as soon as you see you are tied on the screen. You just have to pick your timing, go between the beats, and do your best.’

New Yaris: It’s more than just a facelift, and dealers had a say Improved chassis gives better ride and handling, says brand manager

ll concerns that Toyota dealers have raised about the outgoing version of the Yaris supermini have been addressed with the arrival of the new car. That’s according to Nick Higgs, UK brand manager for the Japanese manufacturer, who said that dealers had had an opportunity to air their views during the new Yaris’s developmental process. And although the work that’s been carried out officially constitutes a mid-life facelift, the revisions recently unveiled go way beyond what one might expect. Speaking exclusively to Car Dealer, Higgs said: ‘A lot of attention has been paid to the interior design, and there

have been quite significant chassis improvements to improve the ride and handling. You can also see by looking at the exterior that we have taken the car in a slightly more daring direction. For example, the X on the front gives it a little bit more attitude. ‘Although it’s a mid-life facelift, the work that we have done is much more than we would normally do at this

point in a car’s lifespan and we will hope it will make it even more popular. ‘This is almost a new generation of the car, although it still uses fundamentally the same platform. You can see from the side profile that it’s pretty much the biggest facelift that we have ever made.’ New Yaris officially went on sale on August 1 with a starting price of £9,995 (including launch discount) for an entry-level Active model. In the new line-up, the other three grades are the alreadyestablished Icon plus Sport and Excel. Yaris Hybrid can be specified in Icon and Excel trims and three conventionally-powered engines are available: a 1.0-litre and 1.33-litre petrols and a 1.4-litre diesel unit. Yaris review, page 41

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DASHBOARD. APPOINTMENT

Neil Hodson is new HPI MD HPI has appointed Neil Hodson as managing director. Hodson brings with him nearly 20 years of experience in the used car market, combining several top level positions – prior to joining HPI, Hodson was director and general manager at Experian Automotive and latterly group sales director for Manheim. He said: ‘This is an exciting opportunity for me to use my expertise to further develop one of the most respected and successful brands in the UK automotive market. HPI provides unrivalled protection for consumers and dealers through its core services, and I aim to ensure we continue to meet those needs. Focus on HPI, page 76

��| CarDealerMag.co.uk

Upfront research may save thousands in depreciation Buyers can check used prices down the line before selecting a new car

oney lost by UK motorists in car depreciation ranged from £4,000 to £200,000 over the past three years, according to new figures. Independent car cost experts CAP Automotive took every type of car sold new in July 2011 and calculated their secondhand value in today’s market, with 60,000 miles on the clock to reveal that drivers of Kia Picanto special-edition Spice model have lost the least money, with typical depreciation of £4,135. Anyone who chose a Maybach 62 saloon three years ago stands to lose an average of £189,785 if they sell or trade it in. CAP looked at 12,160 different models. Philip Nothard, CAP’s retail and consumer car expert,

said: ‘In the small family car segment, the least depreciating car over the last three years was the Kia Pro Cee’d Strike special edition, which lost an average £6,405. The 20 heaviest depreciating cars in the same sector lost between £18,000 and £20,300.’ ‘It’s the same story in every vehicle sector – the lesson being that careful research up front can save a lot of

money a few years later.’ In the Fiesta/Corsa size ‘B’ segment, the winner is the Perodua Myvi hatchback, with depreciation over the past three years averaging £4,580. Among the 19 cars classed by CAP as ‘Luxury Executive’, depreciation over the past three years ranged from the 6.0-litre Maybach’s colossal £189,785 to the bestdepreciation-in-class Bentley Continental GT Coupe 6.0 W12 which ‘only’ lost £74,800. Nothard said: ‘Depreciation used to be a mystery to ordinary people but the advent of trusted advice services like the valuation and motoring cost calculators on cap.co.uk means anyone can find out which cars will lose them the most or least money before they commit to buying.’

Around the world

USA

A DEALER in Jacksonville, Florida, forced to pay compensation to a customer by the Department of Motor Vehicles offered the $700 in one dollar bills and coins. Student Irena Mujakovic, who filed a complaint about labour charges for repairs under warranty, left the two bags at the dealership. Ed Di Miranda, who runs the dealership, said: â&#x20AC;&#x2DC;I am doing what the DMV asked me to.â&#x20AC;&#x2122;

Dealer news from somewhere other than here

MEXICO

BRAZIL is about to be overtaken as the top Latin American automobile producer by Mexico, as surging exports to the US spur record output. Mexico nosed ahead of Brazil in the first six months of 2014 and its first full-year lead since 2002 is projected. This would vault Mexico to number seven in the world.

AFRICA

FORD is planning to expand its manufacturing plants in Africa. It will introduce models such as the Mustang and is forecasting that sales will grow by 40 per cent by 2020. â&#x20AC;&#x2DC;Everything is pointing toward a surge in the African economy,â&#x20AC;&#x2122; said Jim Benintende, Fordâ&#x20AC;&#x2122;s head of operations in the Middle East and Africa.

AUSTRALIA

A CAR dealer in Western Australia got into trouble after publishing an advert containing a â&#x20AC;&#x2DC;jokeâ&#x20AC;&#x2122; about disgraced TV star Rolf Harris. Goldfields Toyota, in Kalgoorlie, advertised a Hilux for sale with the caption: â&#x20AC;&#x2DC;Thereâ&#x20AC;&#x2122;s more hope of Rolf Harris getting a babysitting gig than us finding a better example.â&#x20AC;&#x2122; General sales manager Darryl Evans said: â&#x20AC;&#x2DC;We blurred the lines of good taste and bad.â&#x20AC;&#x2122;

INDIA

AN INDIAN Jaguar owner says he was forced to get a group of donkeys to pull him around town in his new car because it was the only way to make it move. Businessman Rahul Thackreym, 38, who lives in the western city of Ahmedabad, came up with the idea after the ÂŁ53,000 car repeatedly broke down. He claims efforts to get his dealership to fix the XJ model havenâ&#x20AC;&#x2122;t succeeded so far.

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CarDealerMag.co.uk | 29

FINANCE. PARTNERSHIP

Why dealers ‘wouldn’t suffer’ if interest rates were to go up Lookers boss says favourable exchange rates would offset an increase

Black beats silver into third place AS KYLIE took to the stage and the curtain went down on the Commonwealth Games in Glasgow, Paragon Car Finance said that gold is a more frequent sight in the UK’s sports arenas than it is on the roads. Based on a review of finance deals completed since the launch of the business in February, Paragon found that just one per cent of contracts has been completed on cars with gold paint finishes, 15 per cent on cars with a silver finish and that there had been no completions on bronze-coloured vehicles. The most popular colour choice among cars financed by the business has been black (35 per cent of the total), followed by white cars (17 per cent). At 15 per cent, grey was the only other colour forming more than 10 per cent, with red, blue and purple cars making up the balance. Julian Rance, head of Paragon Car Finance, said: ‘This quick review suggests there’s scope for the more adventurous personality to inject more colour on to the road!’

��| CarDealerMag.co.uk

hike in interest rates will not affect UK car sales, according to Lookers boss Andy Bruce. The dealer group’s chief executive has said that car manufacturers passing on their gains from the current favourable foreign exchange rates could very easily offset any future rise in rates. Speaking to Reuters, Bruce said: ‘Every quarter-point movement, if it’s passed on to the customer, is £3 a month. It’s not going to stop somebody buying a car. So even three or four interest rate rises on that basis is not going to fundamentally change the affordability of the car.’ Bruce went on to say that the rise would equate to just over £100 being added to the cost of an average vehicle on a three-year finance personal contract plan, or PCP. The chief executive’s comments come as many economists have declared any rise in the UK’s recordlow 0.5 per cent base rate would have a damaging effect on the car industry because of up to four-fifths of sales being on cheap credit. Bruce’s view is that thanks to the pound’s current strength against the euro, many car makers could absorb the rise which helps importers of euro-denominated parts. Manufacturers such as Ford are

feeling the benefits of the strong pound. The Blue Oval does a large percentage of its business in euros such as parts-purchasing and imports –and, according to Bruce, the further that sterling moves away from parity with the euro, Ford gains about £30 million in turnover. He said: ‘The movement in the exchange rate in the last year of eight points is about £1,000 a car to the UK on the basis that the average selling price is about £12,000. ‘That’s the difference between what they will be realising in revenue on the basis of today’s exchange rate

versus 12 months ago.’ Bruce admitted that his company was concentrating more on premium brands such as Audi, Bentley and Jaguar Land Rover as margins tended to be higher, and that it was looking to expand and maybe open an overseas dealership. ‘I wouldn’t say it’s on the horizon but it’s something that I wouldn’t rule out in the long run,’ he said, adding that the possible timeframe would be in five or more years. We haven’t got a strategy for it but my personal preference would be the US. I think the market is more open there.’

New car finance volumes rise by 9pc, FLA figures show CONSUMER new car finance volumes grew by nine per cent in June, and by 15 per cent in the first six months of 2014, according to figures released by the Finance & Leasing Association. The percentage of private new car sales financed by FLA members in the 12 months to June 2014 was 75.2 per cent, up from 75.0 per cent in May. In

June, the consumer used car finance sector reported its best performance of the second quarter with new volumes up by 22 per cent compared with the same month last year. Volumes in the first half of 2014 grew by 18 per cent. Commenting on the figures, Geraldine Kilkelly, head of statistics and chief economist at the FLA, said:

‘The first half of 2014 has seen strong performances in both the consumer new and used car finance sectors. ‘The last six months have also seen the FLA’s penetration rate maintained at around three-quarters of all private new car sales in the UK which shows how popular point-of-sale credit is with new car buyers.’

..in association with

DEALFINDER.

Latest finance deals on SMALL ESTATES

Garside

SKODA FABIA ESTATE

Can you answer ‘yes’ ?

THERE is space for five people and still enough room in the back for buyers’ football kit and school projects, making the Skoda Fabia an ideal small family car. The Fabia Estate is surprisingly large inside and its driving capabilities aren’t far off the hatchback, making it a great option

for those with young families. Marketed with three big reasons to buy, the Fabia is currently offered by Skoda for only £99 a month, zero per cent APR and up to three years’ free servicing. This offer is based on the S-model specification, with a 1.2-litre petrol engine. To enjoy the low payment of £99 a month, customers will have to pay a deposit of £3,370.72 but Skoda also has payment plans to suit the customer’s needs and will be flexible on the size of the deposit. The final payment is £4,779.28 and the total amount payable is £11,615.

VOLKSWAGEN GOLF ESTATE THE Volkswagen Golf Estate offers loads of space and versatility, making it a practical option whether buyers are transporting children, adults or anything else. The estate has a premium feel with a panoramic sunroof and luxurious interior. Volkswagen has made the Golf Estate family friendly with fold-flat rear seats, taking the boot space from 605-litres to 1,620-litres. Its latest offer puts the Golf Estate at just £225 a month over 35 months at 7.6 per cent. A customer deposit of £5,315.38 is required. The final payment is £7,327.09, making the total amount payable

£20,577.47. This offer is available on the Golf Estate S 1.2 TSI 5-door until September 30. The S model is equipped with Bluetooth connectivity for telephone and music, DAB radio and a multi-device interface to connect with media systems.

HYUNDAI i30 TOURER HYUNDAI claims the i30 Tourer is designed to impress and we’ve got to admit the sleek lines and sophisticated appearance have caught our eye. The Tourer is a great option for

those who need some extra space for comfortable family living and it has a more appealing price tag than the Golf Estate. Hyundai is offering the stylish i30 Tourer at a fantastic price thanks to a deposit contribution from the manufacturer of £1,500. Based on the Tourer Classic 1.6 manual, monthly payments on the i30 are only £199 over 35 months at 5.9 per cent APR. The customer will also need to pay a deposit of £4,938.99 and the optional final payment is £4,653.75, putting the total amount payable at £18,256.74.

time is money

s you might know, Car Dealer Magazine is once again holding the Used Car Awards on December 1 at The Brewery in London. However, you may not be aware that First Response Finance will be sponsoring the ‘Customer Care Award’ for the third year running, or the reasons why we believe all motor dealers should be going that extra mile to win this award. As an industry, the motor trade has seen a great deal of bad press over the years; but now is the era of the consumer’s voice. We have recently seen the growth of review sites like reviewcentre.com, tripadvisor.com and feefo.com to name but a few. These sites are dominated by consumers leaving both positive and negative reviews. Providing great customer care and aftercare is now more important than ever. The rise of smartphone use has meant your customers are able to review your products and services on the go. Whether this is to give your dealership praise or to vent their frustrations; it’s all at the touch of a button. Consumers are also visiting these websites to research companies before making their final purchases. They’re looking for a great company to buy from, not one that has failed to deal with an issue appropriately. If a customer has expressed their anger through one of these sites, they are informing thousands of potential customers about your mistakes and bad customer care. In the long term your growth will slow and this will hit your bottom line. In the used car trade we need to go that extra mile, always seeking to exceed expectations and create a great customer outcome! We should always be thinking ‘would I be happy if I was in their shoes?’ If you answer YES you are on the right path.

‘Providing top-quality customer care is more important than ever.’

Who is Ben Garside?

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

CarDealerMag.co.uk | 31

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big mike.

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

I’m going reliably retro after rust rears its head on modern models T

his month, I’ve been suffering quite a bit with the brown stuff. Don’t worry, I’m not rushing off to the chemist every five minutes to buy myself some Imodium, only to then come back and tell you all about it, as that would be a little vile. But what I am perturbed by is something I thought had disappeared altogether. And that’s rust. A while ago, you may recall I rued the loss of my Nissan Maxima – a car that only someone like me could properly love. My much beloved (though not especially beloved that day) impaled it on the tow bar of a high cube Ford Transit, and that, as they say, was the end of that. As a result, my current vehicle is a little different to my normal choice of luxobarge. That said, it’s still a bit luxurious and has more than four cylinders, albeit only just. The vehicle in question is a Land Rover Discovery Td5 in poodle-posh ES trim, which I bought at auction to sell on but have been enjoying loafing around in for the past few weeks, not least because it’s that time of year when we occasionally take the speedboat out and the thing has a ruddy great tow bar (which I sincerely hope her indoors isn’t about to drive something into). It was only when hooking up the speedboat the other day, though, that I realised the chassis wasn’t looking so clever at the back. It hadn’t rotted through or anything, but there was enough flaky iron oxide on the surface of the chassis rails to make me send Jason, my ex-young offender forecourt helper, underneath it with a wire brush and a can of Waxoyl. Dirty work done, it should be fine for a few more years – but it sure got me thinking… Around about the turn of the century (this one, not the last for those who think I might be old enough), it’s my view that the car industry was going through something of a purple patch. Cars were reliable. They were exceptionally well built. They were nice to drive and, for the past few years, with only the odd notable exception, have provided the likes of you and me with a regular supply of good-quality, likeable used fodder with which to decorate our forecourts and please our customers. If you bought a Volkswagen, chances are you’d never need to buy another car ever again – certainly not if my neighbour’s 470,000-mile 2000 Passat is anything to go by. Somewhere along the line, though, I reckon the accountants got a little concerned. Aftersales departments were struggling for work to do, parts weren’t wearing out

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

quickly enough and the industry as a whole realised that the cars they were making were actually a little bit too good. Certainly, that’s the view of my inner cynic and, to bring this back to topic, it was rust that was the thing that really got me thinking. For the best part of a decade, I hardly saw it – and when I did, it was only on either ancient trade-ins or one of the handful of models that seemed to have bypassed the car industry’s newly-elevated build-quality standards. Instead, it was dual mass flywheels and new-fangled diesel particulate filters that were seeing off otherwiserespectable motor cars (and, indeed, continue to be the bane of many a trader’s life as they’re tricky to spot in the auction house). Rust, it seemed, was a thing of the past. Wind the clock forward a decade and it’s surprising to see just how many cars that come through my hands are suffering from some sort of corrosion.

‘Somewhere, I reckon the accountants got a little concerned’ Sure, it’s not as rife as the olden days, when you could establish exactly how old a car’s sill repairs were by the date on the newspaper pages that had been stuffed into the holes to keep the filler in place, but I’m alarmed to see how many cars are prone to going rusty. Just last week, I had to send three off to the body shop – a 2007 Ford Focus estate, a 2005 Mazda 6 and a 2006 Range Rover – the latter having cost its original owner a smidgen short of 80 grand not that long ago. Yet currently parked up at the cheaper end of my forecourt are a 1997 Peugeot 306, a 2001 Fiat Brava, a 1999 Rover 75 and a 1989 Volvo 740, all available to buy for less than a grand and not one of them displaying a pockmark or rust streak anywhere. Sure, to the uninitiated, all of them are undesirable for their own very different reasons, but in terms of being well screwed together, they knock the more expensive end of my forecourt into a cocked hat – and if I can find a buyer for my newly-rust-proofed Discovery, I think you’ll find it’ll be one of the two bigger cars among that lot that becomes Big Mike’s new commuting tool. For if this is progress, I’ll keep it retro, thank you very much.

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 terrific tales along the way. CarDealerMag.co.uk | 33

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bAGGOTT.

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Not-so-useful gadgets ...and why I’m worried about driverless cars

he recent announcement about driverless cars heading to the UK got me thinking. Not about how nice it would be to have a snooze in the back of a long-termer as it cruised up the A34, dodging overtaking lorries as we go (although I admit that was my first thought), but more about the incredible advances in technology the car industry has made over the years… and, more importantly, the not so incredible. Few would doubt there have been some amazing leaps forward. Hybrid power plants, cars that you charge by plugging into your house, night vision, automatic braking to avoid low-speed crashes, airbags, Bluetooth, the list of helpful gadgets goes on and on. However, having spent a few weeks in my trusty 1987 Fiesta XR2, I’m starting to wish that list could be made a little shorter by un-inventing a few things. My rusty Ford is pretty basic – the radio offers a choice of Five Live, or no Five Live, the heater settings consist of hot, warm or a little less warm and the lowering of the windows exercises your entire arm, not just one finger. Jumping from that into a modern test car makes you realise there are a lot of new gimmicks that should be consigned to Room 101. First, the electronic handbrake. Name one good reason why the electronically engaged anchor, which seems to take minutes to engage, should replace the good old-fashioned tug of a manual parking brake. It’s impossible to know whether you need to push the button to engage it, or pull it, whether you need your foot on the brake or not, and that’s after you’ve found where the manufacturer has hidden the bleeding switch in the first place. Electronic assistance is often the root cause of the problem. Manufacturers seem intent on adding a charge to a function that really didn’t need it in the first place. Tailgates for example. Why do I need help shutting the boot – 10 seconds more slowly than I could do it by hand – when I’ve managed perfectly adequately for years? Then there are the cars that don’t open all the doors when you press the keyfob. Remote central locking was a Godsend when it arrived, all doors popping open at the touch of a button. Why then, did a manufacturer decide that this wasn’t actually a good idea and that one press should open the driver’s door only? That is not progress. Don’t worry, there are more. One-touch windows, for one that go all the way down when you hit the button. They’re brilliant. But why does it sometimes only work on the driver’s side? How much more would it cost to offer that on all windows? Pennies?

And don’t get me started on fuel gauges. The number of times I’ve brimmed a modern car only to travel 50 miles and for it to still show full beggars belief. That is a gauge that is quite clearly failing at its primary objective. As soon as I leave a petrol station with the engine running I am, by the laws of science, using fuel – that usage, no matter how small, should register on the gauge. It’s either full or it’s not, right? And that’s not to mention the manufacturers that have done away with a gauge altogether and decided a few digital blobs are a fair representation of the fuel contained in the car’s bladder. Voice control that never works, or takes five times as long to execute a simple task that your finger could have done moments ago needs removing. I’d understand if the buttons that do the thing you’re trying to command with your voice were located in the boot, but they’re not, they’re less than an arm bend away. So, here’s an idea: Use your arm. Automatic lights that illuminate at inappropriate times?

James Baggott ‘One thing for dealers *EDITOR’S NOTE: IS THIS REALLY YOU JAMES? SOUNDS MORE LIKE VICTOR MELDREW!

is the fillip it will offer servicing departments’

They can go. Rain-sensitive wipers that come on too late or not strong enough – get rid of them. My point is (and yes, there is one) we’ve made some incredible progress over the years but in an attempt to get one over the competition, car firm tech departments have been let loose to engineer things that don’t need engineering. There’s a lot to be said for simplicity. That’s why I’m just a little bit worried about self-driving cars. You only have to picture a supermarket car park of the future – yummy mummies engaging self-park and edging ever so slowly into a bay by the power of divine car brain intervention – to see the problems that may lie ahead. Yes, those cars may be finally parallel in the space, but judging by the time it takes to apply an electronic handbrake, how long do you think it’ll take to execute a reverse park? Whatever happens with driverless tech, I can see one good thing for dealers – and that’s the fillip it’ll offer servicing departments. I don’t think the government, or insurers for that matter, will take too kindly to owners who miss annual services when the car is driving itself around. That’ll be great news for dealers who currently rarely see owners once the warranty period has expired. Maybe that’s why all this new tech is invented in the first place… to keep technicians busy. Once a cynic, always a cynic, eh?

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 | 35

REAL DEALS.

Classic convertible that is wearing VERY well! You’d never guess this awesome Alfa was 30 years old, says Becca Chaplin

t’s rare to find a 30-year-old car with an ownership history as long as my nose. And my nose isn’t very long at all. Promise. Throw low mileage into the equation and a car that is in a respectable, if a little shabby, original condition and that’s a winner in our books. Yes, this little 1984 Alfa Romeo Spider needs some love and attention, but who could resist this opportunity to own what is undeniably a gorgeous, classic Italian sports car? The lucky Alfa spent the first half of its life sunning itself in California, which means this twoseater convertible is almost without rust. It also has the added bonus of only 40,000 miles on the clock! Current owner Paul Mewies said: ‘I bought the car off someone local, who’s basically had it all its life, or at least since ’99 when it came into the country. ‘The car is pretty original apart from having some maintenance work done. I haven’t done any work to it since I’ve had it. ‘The Alfa just needs a bit of general work to get it back in shape. The seats are a bit split, the rear window has a crack in it and it pops out of reverse gear sometimes. There are a couple of little rust spots but it’s quite a nice solid car really. ‘From what I’ve seen, completely restored ones

��| CarDealerMag.co.uk

seem to be going up for around the £10,000 mark. I’m hoping to get around £5,000 for it, so there’s a good margin there for someone.’ The Spider ended up on British soil in an era when the classic Alfa was in vogue. Mewies explained: ‘The previous owner bought it from a classic Porsche dealer in central London and it only had one owner in California before that. It’s got quite a nice history behind it. I assume this Alfa made it over here because they were popular at the time. I think a few were brought into the UK then. ‘I’d imagine this specialist classic Porsche dealer was dealing in 911s and other classic Porsches but started bringing in the classic Alfas as well.’ Mewies, owner of Mewies Ltd in Surrey, is less selective in his purchases and has a large annual turnover for a business he runs pretty much solo. He couldn’t even slow down for very long to talk to Car Dealer and was on his way to buy more stock! ‘I buy anything,’ said Mewies. ‘Mainly we sell to trade and we don’t do a lot of resale. We trade about 500 to 600 cars a year, so we just buy anything and everything really. I’m actually just driving over Tower Bridge to buy some more cars!’ Visit paulmewiescarsales.co.uk [CD]

Thank you for voting us as your number 1 We were delighted to be told you voted us your number one Trade Insurance Provider of the Year at the Car Dealer Power Awards 2014. You praised us for our flexible products and customer service, saying we were a pleasure to do business with. Accolades like this make us proud to be recognised as your motor trade insurer of choice. If you want to hear about products and services available from Aviva, simply speak to your local insurance broker.

Aviva Insurance Limited Registered in Scotland, No. 2116. Registered Offce: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. CarDealerMag.co.uk | 37

forecourt.

Skoda Octavia Scout Alasdair Stewart, the firm’s UK brand director, chats to James Batchelor about the network, how the internet could sell cars and his plans for the new Octavia variant How’s the network at the moment? It’s in good shape and it’s making good money – our average retailer is making two per cent return on sales, with the top guys at around the 3.5 per cent mark. There is no doubt it is tough out there at the moment and the dealers have to work at all the angles to make sure they are maximising return. We are asking our dealers to change the look of their dealerships to take on the corporate image (CI) and new processes. When will the roll-out of the CI be finished? We plan to have it finished by the end of 2015 to mid-2016. Our retailers have got tasks to do that and there are mechanisms there to reward them to do that. The CI is making a big difference. Your dealers have traditionally been in small towns – are you changing your strategy and wanting dealers in large cities now? Bearing in mind where Skoda is in the marketplace, it needs to be in big cities. Unlike brands like Audi, Skoda isn’t a destination brand. We need to be where people are thinking car businesses are going to be like Ford, Vauxhall and Renault. Car alleys are an infrastructure where, although people are generally focused on where they are going, if you are there you might be on their shopping list. Could you ever see cars being sold totally

on the internet or will there always be a need for a dealership? We talk about it all of the time and sooner rather than later it will come. The thing to manage is not to fight against it but how to facilitate it. This could be retail centres that are about evaluating a car and handling the partexchange and the internet is left to the selling – dealerships become delivery centres rather than sales centres. And it could easily get to that and why shouldn’t it? Will it happen in five years? I’m not sure. Ten years? Maybe. Is the Scout customer completely different from a Yeti buyer? Good question. I think it is because the Scout appeals to the estate customer. I’ll give you an example: My father lives in Scotland, needs four-wheeldrive but finds getting into a small SUV difficult. He’s been looking for an estate car – and he is an estate car customer and not an SUV customer. Buying a Scout is a different mindset for people who like estate cars but don’t necessarily like SUVs. Yeti isn’t a traditional SUV, as it sits in the lower end of the market, but you still step into it. The Scout is proof that Skoda is serious about the growing SUV/off-roader sector. We have been very open about going into the larger sevenseat market and we will have a new Yeti after the launch of the seven-seater SUV. It’s not just private customers we see buying the Scout but also emergency services as well. We’re planning for around 2,000 sales.

on test

ENGINE

Customers will love the Scout if they are partial to driving diesels, as the car only comes in 2.0-litre TDI guise

Is the new Octavia Scout all style and no substance? What is it? Think of it as an Octavia Estate that’s been given a khaki shirt, a coloured scarf, a woggle and a campaign hat. The regular Octavia Estate has been jacked up by 31mm, a newer type of

four-wheel-drive has been fitted, as has a butch bodykit to give a rough-and-tumble look. Scouts can also pull up to two tonnes – perfect for country types with horse boxes to move about.

What’s under the bonnet? Just two engines: A 148bhp 2.0-litre diesel with a six-speed manual ’box or a more powerful version with 182bhp. While the former does around 55mpg and emits 129g/km of CO2, it’s the latter that’s the more important news. Thanks to its 182bhp, it’s the most powerful Scout ever. Combined fuel consumption is the same as the lower output diesel, while CO2 emissions are 134g/km. Both engines come

��| CarDealerMag.co.uk

with sophisticated ‘Haldex-5’ four-wheel-drive, an electronic differential lock, stop/start and brake energy recovery systems.

What’s the spec like? There’s just one trim level and, justifying its position towards the top of the Octavia range, it’s pretty well equipped. For £25,315 (£27,990 for the 182bhp version), there’s black or brown leather and Alcantara upholstery, a multi-function steering wheel, black or brown/black dashboard and a smattering of Scout badges. Plastic panels fitted underneath protect the car over rough ground, meaning the Scout really can do a bit of light-to-middling off-road work.

the knowledge

LOOKS

It’s an Octavia with pumped-up bodywork and a jacked-up ride height. Total ground clearance is now 171mm

INSIDE

Scouts come in a choice of upholstery shades – black or brown – and come with climate control and sat-nav

Model: S koda Octavia Scout 2.0 TDI CR 184PS 4x4 DSG DPF Price: £27,990 Engine: 2.0-litre, turbocharged diesel Power: 182bhp, 380Nm Max speed: 136mph 0-60mph: 7.6s MPG (comb’d): 55.4 Emissions: 134g/km Residual values (three years): tbc

target buyers:

Emergency services, business users and families

What’s it like to drive?

WHAT DO THE PRESS THINK?

It would be easy to dismiss this Scout as just an Octavia in drag, but it isn’t. That extra 31mm of ride-height really does make a difference to the way the Scout drives compared with any other Octavia estate. It never wallows or leans excessively in corners, but you are constantly aware of the higher centre of gravity. But that extra height really comes into its own off-road. The car tackles the rough stuff with aplomb thanks to decent approach and departure angles and the electronic differential lock – a clever system that detects if one wheel is slipping and then sends the power to the opposite wheel, giving traction. Apart from this, the driving experience is typical Octavia – nothing too much to say, and that’s not a bad thing.

What Car? said: ‘In our opinion, the Scout is more than just a “lifestyle” statement – it gives you genuine offroad ability without the need for a proper off-roader.’

WHAT DO WE THINK? This particular car follows the path trodden by a number of other Skoda Scouts, but it’s this car that is the most accomplished. If customers need to go offroad and have around £25k-£28k to spend, they would be hard-pressed to find something as good. If they don’t need full off-road capability but want the reassurance of four-wheel-drive, Skoda’s Octavia Estate 4x4, priced from £21,965, is more than up to the job – and we’d suggest pushing towards that model instead.

the rivals:

VW Passat Alltrack, Vauxhall Insignia Country Tourer, Volvo XC70

Key Selling Points: 1. Can tow up to two tonnes 2. Efficient diesel engines 3. Pumped-up bodywork isn’t just for style

Deal Clincher: Unlike some key rivals, packed full of clever technology so it can actually go off-road CarDealerMag.co.uk | 39

forecourt. INSIDE

Cross gets Bluetooth, alloys, climate control, electric door mirrors and LED daytime running lights all as standard

LOOK

Cross beefs the Panda 4x4 up a bit with some extra body cladding, loud paint shades and scuff plates

ENGINES

Fiat Panda Cross

Just two units on offer here – Fiat’s famous two-cylinder petrol and perennial 1.3-litre diesel. The latter is the best all-rounder

Italian firm thinks it has spotted a niche in the A-segment for a rough-and-tough 4x4. Danielle Bagnall has tried it for size What is it? It’s the car that city lovers and those looking for practicality with design flair have been waiting for. Fiat believes it has seen a real niche in the market with the development of the Panda Cross, combining aesthetics, durability and capability in equal parts. But with a price tag starting from £15,945 it’s £1,500 more than a Nissan Juke!

What’s under the bonnet? There are two engine options available in the Panda Cross: the 1.3-litre Multijet diesel unit and the 0.9-litre TwinAir petrol version. The diesel engine produces 80bhp and averages 60.1mpg with 125g/km of CO2 emissions, while the petrol option offers 89bhp with 57.7mpg and emits 114g/km.

What’s the spec like? Apart from the interior feeling slightly cheap compared with its rivals, the Panda Cross has a very ��| CarDealerMag.co.uk

unique feel – you get the looks of a pretty city car but also the capability of a fantastic off-roader. Redesigned bumpers to the front and rear mean it’s protected on even the roughest terrain. Bluetooth, MP3, 15-inch alloy wheels, climate control, electric door mirrors and LED daytime running lights all come as standard.

What’s it like to drive? We headed over to Fiat’s Balocco proving ground in Italy where we took it over some of the roughest terrains, as well as steep inclines and descents – and the way it took on the rough circuit was commendable. The three driving functions are: ‘Auto’ for normal driving conditions, where 98 per cent of the power is sent to the front wheels (unless slip is detected); ‘Off-Road’, featuring a torque-on-demand system sending power to the wheels that need it; and ‘Hill Descent’, which helps drivers travel down steep inclines with auto braking being activated.

WHAT DO THE PRESS THINK? Auto Express said: ‘With a pretty wild front-end design, improved approach and departure angles and a snazzy interior, the Fiat Panda Cross is Fiat’s versatile take on its A-segment hatch.’ What Car? said: ‘If you genuinely need a city car that you can take to the hills in at the weekend we’d recommend the 4x4.’

WHAT DO WE THINK? In short, we loved it… off-road, that is. The Panda Cross offers a high degree of off-road capability and is comfortable when taking on the roughest of roads. But we do feel it lacks a little on-road – granted, buyers’ heads will turn heads with its aesthetics but it just doesn’t fare as well as some of its rivals in day-to-day driving. However, having taken it off-road we believe the fun customers will have in it off-road more than makes up for it falling short on-road. We would opt for the diesel variant at £16,945.

the knowledge Model: Fiat Panda Cross 1.3 Multijet 80 Stop/Start Price: £16,945 Engine: 1.3-litre turbocharged diesel Power: 80bhp, 190Nm Max speed: 99mph 0-60mph: 14.1s MPG (comb’d): 60.1 Emissions: 125g/km Residual values (three years): tbc

target buyers:

City car lovers who desire style and off-road ability

the rivals:

Nissan Juke, Dacia Duster, Suzuki Jimny

Key Selling Points:

1. Go-anywhere, Action Man looks and styling 2. Two-cylinder petrol has low emissions 3. It can actually go off-road

Deal Clincher: It’s the only A-segment city car that has such a strong focus on true off-road ability

forecourt. RIDE AND HANDLING

INSIDE

A more rigid upper and lower body structure offers a more direct steering response and a more comfortable ride

The cabin’s a quieter place to be than before, thanks to reductions in road, engine and wind noise

LOOKS

Like Aygo revealed a few weeks ago, new Yaris has a sleeker, more eye-catching look and the ‘X-factor’, which enhances the grille

Toyota Yaris

Last month Aygo, this month Yaris. Toyota has freshened up its supermini with a fairly major makeover. Dave Brown reports What is it?

What’s the spec like?

Although this is basically a mid-life refresh of Toyota’s supermini offering, the company says it goes much further than that. As well as the pair of new trim levels, the car’s four powertrain options – two petrol, one diesel and a hybrid – have all been reworked and refined, and there’s more tech, improvements to the cabin and snazzy new exterior styling, including anü Aygo-style front grille.

Pretty good throughout the range. A leather-trimmed steering wheel, air conditioning and the latest Toyota Touch 2 multimedia system are fitted as standard from Icon grade. Climate control is standard on Excel and Hybrid models. Customers can upgrade their new Yaris with a range of options and options packs such as a panoramic roof, LED daytime running lights and rear privacy glass.

What’s under the bonnet?

What’s it like to drive?

Looking at the hybrid first, it’s interesting to note that its CO2 emission levels have been brought down to the 75g/km mark, making it exempt from the London congestion charge. It’s über-quiet, easy to handle and increasing in popularity all the time. The 1.33-litre Dual VVT-i petrol and 1.4-litre D-4D diesel engines (both six-speed manuals) have been refined to cut noise and vibration, and the three-cylinder 1.0-litre unit has undergone similar treatment.

WHAT DO THE PRESS THINK? Top Gear said: ‘The little 1.0 is appealing, if possessing the sort of acceleration that puts it in danger of being overtaken by kids on scooters.’ Auto Express said: ‘We wanted to know if Toyota had done enough to take the Yaris back to the sharp end of the supermini sector. The answer is a resounding no.’

WHAT DO WE THINK?

Toyota has genuinely delivered something more far-reaching than We took the 1.33-litre version for a your average mid-life facelift here. The spin and were impressed by the level company’s European arm has had a of power and willing acceleration. It’s lot of input into the look and feel of the best-seller in the range and Toyota this car because of the B-segment’s expects this to continue. I’m normally importance in this part of the world, bewildered by the complexity of and we think it has managed to take modern infotainment systems and the game on a stage pretty effectively. spend an age prodding buttons in an One area we seem to have forgotten attempt to quickly familiarise myself to mention so far is the chassis with them, but Toyota’s system is improvements that will make the very intuitive and useful from the off ride more comfortable and enjoyable – almost Apple-like in a ‘no-need-for- in the UK. The new Yaris deserves to a-manual’ kind of way. do well.

the knowledge Model: Toyota Yaris Icon, 5dr Price: £14,095 Engine: 1.33-litre Dual VVT-i petrol Power: 98bhp, 125Nm Max speed: 109mph 0-60mph: 11.7s MPG (comb’d): 57.6 Emissions: 114g/km Residual values (three years): tbc

target buyers:

Those looking for something a little different; downsizers; green-minded hybrid types

the rivals:

Ford Fiesta, Suzuki Swift, Mazda 2

Key Selling Points:

1. Better-quality interior adds more of a luxury feel 2. Clever tech for entertainment and navigation 3. Still reasonably priced

Deal Clincher: A big step forward in quality; still good value CarDealerMag.co.uk | 41

STEAM ENGINE

THE WHEEL 3500 BC

1712

ELECTRICITY

ENVIRONMENTALISM

1752

1960’S

JET ENGINE

MOON LANDING

1930

1969

WE’VE BEEN MAKING HISTORY. JOIN OUR DEALER NETWORK AND SHARE THE SUCCESS. For forty years Mitsubishi have been making history in the UK and in 2013 we were the fastest growing car brand in the UK. Which is why we’re looking for new dealers to share in our success and help us continue to make history. It’s not exactly a tough decision. Sales of our new plug-in hybrid electric car are as impressive as the car itself. Backed by a high profile cross media campaign the new Mitsubishi Outlander PHEV has already exceeded sales targets.

THE WORLD’S FIRST 4WD PLUG-IN HYBRID SUV

With more models in our range joining the plug-in hybrid revolution next year and an exciting portfolio of new concept models ahead, the future is looking bright.

To become part of one of the UK’s fastest growing car brands call our Network Development team on 01285 647714 ��| CarDealerMag.co.uk

MitsubishiUK

MitsubishiTV

SURVEY.

Suppliers ar Dealer Power has been running for the past five years and aims to find the best manufacturers to represent and the best suppliers with which to do business. In that time it has become a genuine litmus test of what car dealers are thinking right across the UK – and no other survey in the industry does that. This year, an unprecedented number of dealers completed our survey from all over the country – and from large-scale dealer groups to independents. Hundreds of them filled out

paper and online surveys and it was clear to see they were as vocal and as opinionated as ever. This is great news for the manufacturers and suppliers who are looking after these dealers, but not so good for those falling short and under-delivering. On the following pages, we will be recognising the best suppliers in the business – the ones who offer fantastic products and unparalleled service to dealers. And then, from page 55, we will continue with the manufacturer awards. Unlike a few other magazines’ awards events, Car Dealer Power is genuinely special. The

winners are part of an elite club that is doing the job properly as recognised by dealers. The Car Dealer team has no influence or say in who wins these awards – dealers do that. We’ve got the easy job, and that’s handing over the trophies. Winners and highly commended winners were invited to Portsmouth’s stunning Spinnaker Tower last month to celebrate their achievements. And over the following pages, you will find out which companies are doing the best job for their dealer customers. James Batchelor Editor

how we found the winners Car Dealer Power awards are voted for by dealers – and no one else. Hundreds of respondents filled out the survey rating the manufacturer(s) and suppliers they do business with. Dealers used a matrix system in each category to rate companies – scoring from faultless to poor. Winners were decided upon by the number of excellent scores they received. In the event of a tie, the company that received the most number of positive comments was declared the winner. CarDealerMag.co.uk | 43

SURVEY. Warranty Provider of the Year

GAP Supplier of the Year

Winner: AutoProtect

Winner: Car Care Plan

Highly commended: WMS

Highly commended: AutoProtect

Highly commended: Car Care Plan - Skoda Approved

Highly commended: Mapfre Abraxas Lyndon Phillips and Johanna Rose with advertising manager Duncan Chappell

Christian Ingrey collects AutoProtect’s award from Car Dealer editor James Batchelor

THERE’S no denying warranties are a crucial element of the car-buying experience for customers. If the buyer is sold a good warranty plan, it will bring very welcome peace of mind to the vehicle ownership process, while for the car dealer it’s a sure-fire upselling opportunity. Car Dealer Magazine readers voted AutoProtect as the winner. The company earned positive comments from survey respondents such as ‘they have helpful dealer-facing staff’, ‘they are easy to do business with’ and its ‘products are well liked by customers’. WMS and Car Care Plan also received great comments too – and went home with highly commended awards.

GAP insurance is a central plank of the finance and insurance offering from many of the UK’s car dealers. As well as providing a crucial stream of revenue for many businesses, it is a genuinely useful product highly valued by consumers. Our winner, Car Care Plan, is of course a leading provider in this field, offering specially-tailored GAP products at a range of different cover levels. In our survey, its policies won praise from a large number of survey respondents for being straightforward to explain to car buyers and offering the right level of cover. Two big guns, Auto Protect and Mapfre Abraxas, fought off some strong competition to finish in our two highly commended places.

Web Design for Franchised Dealers

Web Design for Independent Dealers

Winner: Bluesky Interactive

Winner: Spidersnet

Highly commended: Spidersnet

Highly commended: Bluesky Interactive

Highly commended: GForces

Highly commended: Starkwood Media Lauren Cook, James Batchelor and Zoe Andrews

WE say it time and time again, but customers expect the very best user experience when they visit a franchised dealer website. Every single year, consumers’ expectations get higher and higher. They demand simple website navigation, straightforward tools to use to calculate finance deals, high-quality imagery and the ability to communicate with dealership staff in a variety of ways. Bluesky Interactive, our winner, has made great strides in attracting new customers in the last 12 months, and it has done that with its competitive offering and fantastic support teams. Spidersnet and GForces were awarded highly commended gongs. ��| CarDealerMag.co.uk

Laura Coleby collects the gong from Duncan Chappell

THE internet is an area that presents a particular challenge to independent dealers. They really have to punch above their weight to match the big boys of the franchised world, delivering fully-responsive websites that can be viewed on a range of devices. This category’s winner – Spidersnet – provides websites that are not only easy to manage, they also allow dealers to expand their reach, attracting more new customers than ever before. It’s also a company that provides the complete solution – from easy uploading to instant updates – whilst also broadcasting stock to classified motoring sites including Auto Trader, Motors and AA Cars. Highly commended went to Bluesky Interactive and Starkwood Media.

Dealer Marketing Agency of the Year

Finance Provider of the Year

Winner: Golley Slater

Winner: Close Motor Finance

Highly commended: Decisive Marketing

Highly commended: MotoNovo

Highly commended: MB Advertising

Highly commended: Black Horse Golley Slater’s Louise Eling collects the award from James Batchelor

John Cassidy and Kim Morgan collect their award from Duncan Chappell

MARKETING is a part of a car dealer’s business that will tick over by itself surely? Wrong – it’s an area of a car dealer’s business that will drive custom to their showroom and ultimately help to sell cars. But marketing is a complete strategy which combines all forms of media – online and off-line. However, dealers are busy people and cannot be expected to handle all of this themselves. And for that very reason the importance of the dealer marketing agency cannot be underestimated. Respondents said Golley Slater is ‘switched-on’ and ‘bursting with effective money-making ideas’. Highly commended went to Decisive Marketing and MB Advertising.

NOT surprisingly, the finance category is always one of the most keenlycontested categories in the Car Dealer Power Awards. Choosing the right finance partner is a massive decision for any dealership and the sheer weight of nominations here demonstrated that. Our deserving winner, Close Motor Finance, works with more than 8,000 dealerships and those we spoke to said this lender is ‘an ideal business partner’, ‘provides quotes in a timely fashion’ and deals with any issues that arise ‘quickly and fairly’. MotoNovo and Black Horse both received very positive comments from Power respondents and took home highly commended awards, beating off some stiff competition.

Tyre Supplier of the Year

Motor Factor of the Year

Winner: Stapletons Tyre Services

Winner: Euro Car Parts

Highly commended: Micheldever Tyre Services

Highly commended: Dingbro

Highly commended: Viking Wholesale Tyres

Highly commended: TPS Stapletons couldn’t be at our awards. We’ve passed their award on to them

Euro Car Parts sadly couldn’t attend – but we’ve passed on their award

THIS is a brand new category this year and it focuses on an area of a car dealer’s business that our readers have said deserves recognition. And this year this category attracted a large number of nominations, with dealers keen to see tonight’s winner getting the spoils. It’s probably an area that many of you in this room wouldn’t think too long and hard about, but for a dealer those black rubber circles get their customers back on the road safely – and that’s not to mention the fact that tyres are, of course, a welcome profit generator. Dealers said Stapletons delivers stock quickly, has large quantities of even the most obscure tyres on its books and is not used to keeping a low profile. Highly commended went to Micheldever and Viking.

MOTOR Factor of the Year was another new category for 2014 and it was definitely worth including in Car Dealer Power as it attracted dozens of nominations for a wide variety of companies. The winner here was Euro Car Parts, a company, which offers ‘any part for any car’, stocks more than 130,000 items and has more than 160 stores nationwide in locations such as Truro, Telford, Belfast and Burnley. Euro Car Parts does not compromise on quality – all leading original brands such as Bosch, Pagid, Sachs and LUK are available under one roof. Dealers praised its rapid service, quality offering and said the availability of the items they needed was excellent. Dingbro and TPS were highly commended. CarDealerMag.co.uk | 45

SURVEY. Trade Insurance Provider of the Year

Online Advertising of Used Cars

Winner: Aviva

Winner: Motors.co.uk

Highly commended: AXA

Highly commended: eBay

Highly commended: LV

Highly commended: Auto Trader Peter Donaldson and Sarah Turner pick up their award from James Batchelor

Motors. co.uk’s Dermot Kelleher with Duncan Chappell

IT’S a subject customers have little idea about when they’re haggling hard on their chosen motor. Dealers obviously need to make profit on every car they sell on top of their business overheads – and one of those overheads is trade insurance. Every dealer needs it in order to operate their business, but there are many companies out there whose policies do little to look after the trusty motor trader. Not so for this category’s winner. Respondents praised Aviva’s flexible products, their great customer service and said it was a pleasure working with a big name that rises head and shoulders above smaller outfits in the marketplace. Highly commended went to AXA and LV.

ANY of the three companies nominated in this category would be a worthy winner here but one name in particular was singled out for praise after a busy spell of high-profile activity. In fact, our winner – Motors.co.uk – is reaping the well-deserved rewards of a multi-million-pound investment programme giving dealers an interesting new take on marketing their stock. Its adverts are being screened during high-profile TV spots earning dealers some profitable sales and its new mobile website which features a clever new search facility was ‘loved’ by survey respondents. Well-deserved highly commended awards went to eBay and Auto Trader. Both were praised enthusiastically by Power respondents.

Online Advertising of New Cars

Used Car Valuation Provider of the Year

Winner: Auto Trader

Winner: CAP

Highly commended: Bluesky Interactive

Highly commended: HPI

Highly commended: GForces

Highly commended: Auto Trader Valuations (previously Deltapoint) James Batchelor hands over the award to Auto Trader’s Kevin Harding

THIS category was interesting because a lot of dealer votes went to the companies which power their own websites, if that makes sense, as well the household names we’re all familiar with. It made for some interesting results, and shows that, to the dealer’s mind at least, online advertising in the new cars sector is not just a simple case of working with the famous names – other companies can deliver similar levels of great service. Dealers said Auto Trader continues to lead the way in this sector with its well-stocked portal and easy-to-use search facility all backed up by well-written road tests, insightful videos and new branding. Bluesky Interactive and GForces were highly commended. ��| CarDealerMag.co.uk

Philip Nothard and Jon Bulloch with Duncan Chappell

IT’S becoming ever more important to keep tabs on prices in the used car arena – and in some respects ever more difficult, with manufacturers seemingly on a mission to add as many variants to their ranges as possible and the trend for personalisation showing no sign of abating. Having accurate data at their fingertips is of the utmost importance to car dealers. CAP has a firm grasp on the ever-changing nature of the retail market. Survey respondents said this company was the leader in its field, always one step ahead and an incredibly valuable business partner. HPI and Auto Trader Valuations (previously known as Deltapoint) went home having been highly commended.

Provenance Check Provider of the Year

Lubricant Supplier of the Year

Winner: HPI

Winner: Fuchs Lubricants (UK)

Highly commended: Experian

Highly commended: Castrol Highly commended: Total Darren Greenyer collects his gong from James Batchelor

Duncan Chappell with Rob East and Kevin McNelly from Fuchs

CUSTOMERS are demanding higher quality used cars than ever. But high quality doesn’t just mean the visuals like flawless bodywork or a service book packed full of stamps and receipts – it’s a lot more than that. And accuracy and quality are absolutely key. There were only two nominations in this category showing how well HPI and Experian have wrapped up the market in the eyes of our dealer readers. Survey respondents said HPI is ‘a pleasure to do business with’, has ‘helpful points of contact’ and its ‘paperwork processes are simple’. Experian took home a well-deserved highly commended certificate in this category.

AS IN previous years, we’re not just looking for a company that offers great products. We’re focusing on the whole package – from dealer support to point-of-sale marketing material. Indeed, all the nominated companies are big names in motorsport and their brands are as famous as the cars they lubricate. It all means dealers not only have excellent products, but they can also capitalise on exciting marketing opportunities. Survey respondents this year heaped praise on our winner Fuchs, saying the company has a range of first-class products and is a pleasure to do business with. Castrol and Total both went home having been highly commended.

Paint Protection Provider of the Year

Auction House of the Year

Winner: Supagard

Winner: Manheim Remarketing

Highly commended: Autoglym

Highly commended: British Car Auctions

Highly commended: Jewelultra

Highly commended: West Oxfordshire Motor Auction Supagard’s Mark Montgomery with James Batchelor

PAINT Protection Provider of the year is notorious for rivalry. Protection kits have long been a favourite product among dealers because the benefits are simple. Happy customers and happy dealers. What’s not to like? For the car owner, their pride and joy is protected from the effects of modern living while the dealer enjoys profit-making opportunities and can look forward to satisfied customers returning in the future. All of the finalists received high praise, but Supagard had the most glowing tributes such as ‘this firm has excellent training and support teams’ and the products ‘consistently deliver impressive results’. Highly commended went to Autoglym and Jewelultra.

Brian Stringer, James Batchelor and Brett Henderson

THERE seems to be no end in sight to the ever-growing influence of the internet in the auctions arena. Of course, many dealers have embraced new technology to source stock from online sales. Others, however, take the approach that you simply can’t beat meeting people face-to-face, and exchanging a friendly handshake to seal a successful business deal. With such big names in the auction game all providing a sterling service, this category was always going to be a close battle. Car Dealer readers voted Manheim Remarketing as the best in the business this year for delivering ‘excellent service’, while British Car Auctions and West Oxfordshire Motor Auction took highly commended. CarDealerMag.co.uk | 47

SURVEY. Trade-to-Trade Remarketer of the Year

Dealer Management System of the Year

Winner: Dealer Auction

Winner: Dragon2000

Highly commended: Autotrade-mail powered by Auto Trader

Highly commended: DMS Navigator

Highly commended: Full Auction

Highly commended: Pinewood - Pinnacle Dealer Auction’s Gavin Smith and Clive Colyer with Duncan Chappell

Mark Kelland and Jack Cooper of Dragon2000 pick up their award

IT’S fair to say that for the most part, there will always be a customer for a car… eventually. What happens when a dealer wants to get rid of a car quickly though, and can’t find that specific buyer or has a car that just isn’t right for their forecourt? Step forward the trade-to-trade remarketing portals which connect dealers with other dealers and provide high-quality and reliable leads. This was a closely-fought category with the winner for the last two years narrowly missing out on the spoils. Tonight’s winner earned plenty of praise, being described as ‘hugely professional’ and ‘able to deliver reliable and trustworthy leads’. Highly commended went to Autotrademail powered by Auto Trader and FullAuction.

KEEPING a proper overview of everything that’s going on in a car dealership can be tricky at the best of times. Dealers need to have proper systems and processes in place to make sure that all the plates are kept spinning. Our three finalists all provide first-class advice and support to dealers of all shapes and sizes. And our winner’s software, designed to be powerful yet easy to use, really helps dealers take control of their business. Readers gave high praise to Dragon2000’s programmes and software, with one saying ‘their products link-up easily with our own systems’. DMS Navigator and Pinewood’s Pinnacle system were highly commended.

Recruitment Agency of the Year

Product Innovation of the Year

Winner: Perfect Placement

Winner: GForces (Sky AdSmart)

Highly commended: MIREC (Motor Industry Recruitment) Highly commended: InAutomotive Sharon Spall, James Batchelor and Louisa Coggs

GForces’ Ian Hajyzamanali and Lloyd Neel collect their award

THE job market may well be picking up now but finding the right staff for the right job is as tricky as ever. It’s no longer an option to advertise a job position in the local paper or on a job board on the internet as dealers can experience a deluge of random CVs and inappropriate candidates. However, a good recruitment agency will do the hard work for you. Although we have three finalists here as usual, our survey respondents voted overwhelmingly for Perfect Placement. Dealers said this firm ‘is very professional’ in the way it does business and consistently finds the right candidates for the job. Motor Industry Recruitment and InAutomotive were highly commended.

THIS category is slightly different to others in the Car Dealer Power Awards. There are no nominations as such – instead, we ask our readers to name the one company, product or service that has not only impressed them but has truly blown the competition away in recent months. Our winning innovation dates back to November 2013. That was the month when GForces became the official automotive retail specialist partner of Sky Media. This means that car dealers can now benefit from the innovative new Sky AdSmart product, enabling them to undertake hyper-targeted television advertising – a first in the automotive sector. Dealers said it has changed the way they think about advertising their stock.

��| CarDealerMag.co.uk

Manufacturer Initiative of the Year

Manufacturer Marketing Initiative of the Year

Winner: Renault – Dacia

Winner: Skoda - Octavia vRS

NOT often does a new car brand appear in the UK – and especially one that has such a different offering to the established players. Dacia burst onto the UK car market at the beginning of 2013 and has proved to be a roaring success. Using the same strategy employed across Europe of own-branded dealerships and simple pricing, Dacia’s parent company Renault approached the UK car market with visions of shaking up Brits’ tired and traditional buying habits. And it has worked. Since its launch, the company has sold more 30,000 cars in the UK and thanks to a no-nonsense advertising campaign and a clear pricing structure, other car makers are seriously considering offering their own budget range of cars. Congratulations Renault and Dacia.

Derek Harris, representing Skoda UK, collects the gong from James Batchelor

Extra Mile Award Winner: Bluesky Interactive

Lauren Cooke and Zoe Andrews from Bluesky Interactive

SINCE we introduced this category to Car Dealer Power two years ago, the Extra Mile Award has always attracted a large number of nominations. And every year it goes to a company that really deserves the recognition. The names of a handful of deserving businesses kept cropping up, with our winner clinching the deal thanks to some very positive comments. Our readers heaped praise on Bluesky Interactive for its ‘positive’ attitude, helpful staff and commitment to creating long-lasting and great relationships. The company’s support team received strong commendations as well – in fact, it’s hard to criticise this company at all.

PRODUCING a good car is one thing but telling the world about it is quite another. In these days of mass media across various channels, winning the customer over is a tricky business. Just, for a moment, think about the routes to market a car company faces – there’s traditional print in newspapers, magazines and billboards, TV ads and radio spots – and let’s not forget social media. Skoda is a manufacturer which is riding high on a wave of welldeserved respect and affection from British dealers and car buyers. Its advert last summer won the hearts of many of our readers. Featuring souped-up imagery and a fully-working supersized ice cream van, the advert beautifully captured the featured product’s raison d’etre. Dealers said they were able to capitalise on some great marketing material which all helped to sell more cars. CarDealerMag.co.uk | 49

SURVEY.

Car of the Year

Winner: Hyundai i10

��| CarDealerMag.co.uk

WE always like to emphasise what makes our Car of the Year award so special. It’s voted for by the people who sell it! . . . and aims to find the car that has brought the biggest change to the UK market over the past 12 months. And we ask readers to put their franchise and personal prejudices to one side in naming the victor. This car’s predecessor propelled its manufacturer into the big time as it quickly became a UK favourite. In fact, when it came to launching the new model and this year’s winner, the company found itself in the enviable position of having to replace a segment leader. It’s stylish, well-built, a cinch to park and is all backed up with a five-year warranty and a dealer network that really looks after its customers. Our Car of the Year is the Hyundai i10. Hyundai Motor UK president and CEO Tony Whitehorn collects his award from editor James Batchelor

Read on to find out who topped the manufacturer survey

CarDealerMag.co.uk | 51

SURVEY.

A night to remember... Car Dealer Power 2014 was undoubtedly the biggest and best yet! The company was fantastic, the food delicious and the Solent views amazing. Pictures by STEVE HALL

��| CarDealerMag.co.uk

CarDealerMag.co.uk | 53

Award Winning Web Design and Customer Service

The Coveted Extra Mile Award

Web Design for Franchised Dealers

Always putting our clients’ needs ﬁrst

Responsive websites, completely bespoke

Don’t settle for anything less - get in touch today:

0845 415 4853

www.blueskyinteractive.co.uk

��| CarDealerMag.co.uk

SURVEY.

manufacturers e call it Car Dealer Power for a reason! And that reason is simple. It’s the only survey in the UK that directly asks dealers what they think of the suppliers they do businesss with, and, as you will read from page 56 onwards, the manufacturers they represent. In other words, the power is in their hands. The rules couldn’t be simpler and the results are checked, double-checked and audited to make sure the rankings are 100 per cent accurate. A manufacturer can only be included in the survey findings if 10 or more of its dealers

provide responses to the survey. The findings are scrutinised and examined, enabling us to harvest the information to compile the bar charts you will see on the following pages. Dealers can vote their manufacturer in rankings ranging from ‘poor’ (0-24 per cent) to ‘faultless’ (100 per cent) across a range of 13 categories. These include warranty, aftersales, marketing and manufacturer return on investment. As I hope this makes clear, we take the utmost care to prepare what is a huge amount of information for publication. We know from

previous years how seriously manufacturers take Car Dealer Power! There’s something else that’s abundantly clear too – it all makes for fascinating reading. Checking out which manufacturers have slipped down the ‘league table’ and which ones are on the up provides an enthralling insight into the UK automotive scene.

James Batchelor Editor

how we found the winners As James explains above, Car Dealer Power awards are voted for by dealers – and no-one else. Hundreds of respondents filled out the survey rating the manufacturer(s) and suppliers they do business with. Dealers used a matrix system in each category to rate companies – scoring from faultless to poor. In the event of a tie, the company that received the largest number of positive comments was declared the winner.

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27 Proton

26 Alfa Romeo

10.5%

Overall score qDOWN 1

Overall score NEW ENTRY

20.4%

DESPITE a revival in the fortunes of many a carmaker over the past few months, poor old Proton seems to be getting left behind. Dropping one place between 2013 and 2014, at least dealers seem to be reasonably consistent in their opinion of what it’s like to work with the Malaysian manufacturer. Not that great, really! The company has struggled to maintain any sort of profile recently as bigger and more proactive rivals have taken the initiative. The staples of the range, Savvy, Satria Neo and Gen2, just don’t seem to be cutting the mustard, failing to attract many buyers. And with zero ratings in a number of categories in the graph below, there’s lots of room for improvement, and that’s putting it mildly.

OUR first new entry in this year’s Car Dealer Power line-up – but it’s hardly a debut to shout about. Still, if a manufacturer is getting any kind of feedback from its dealers at least it’s a sign that they’re engaging with the brand – even if it’s to express their dissatisfaction. A big part of the problem for the charismatic Italian manufacturer is that new product is well overdue. The company has responded in a small way with its 4C twoseater sports car, a major departure for the brand – and Mito and Giulietta are the stalwarts still on offer to customers – but dealers are desperate for something that will give them a bit of volume. The figures below aren’t great, but they will give the team at head office some food for thought.

proton’s SCORES

alfa romeo’s SCORES

100

80 70

37.5 4

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

Fi na nc e

W ar ra nt y Af te rs al es M ar ke tin g aw B ar ra en nd e Ac ss ce ss ib ilit y

25 12

25 Citroen

37.5

25 0

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

W ar ra nt y Af te rs al es M ar ke tin g aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

In te rn et Ne su w c pp ar ly

50 40

43.8

PERCENTAGE

24 Isuzu

Overall score qdown 5

20.7%

Overall score qdown 1

25.2%

PERHAPS a tad surprising is the fact that Citroen has dropped five places since our last survey was compiled. However, the exciting things happening on the product front should give the company reasons to be cheerful. A raft of new models has been launched in the past few months which will probably put dealers in a more positive frame of mind and propel them up the table in 2015. New offerings include the cavernous C4 Picasso and Grand Picasso, funky C4 Cactus and cheeky little C1. Citroen’s revolutionary Airbump technology is also causing quite a stir. A couple of zero ratings in the graph below – in the categories of manufacturer ROI and the bonus structure – are the low points for 2014, meanwhile.

THERE’S no getting away from the fact that Isuzu seem to be trapped in a worrying downward spiral. Although they’re ‘only’ down one place from last year, in 2013 they dropped 12 places. When will dealers start to feel a little happier? The firm’s results this year are a very visual sign that things change quickly in Power every year. The company received good ratings across the board last year, but that’s not the case in 2014. Dealers told us they were particularly disappointed with Isuzu’s stock management and the bonus structure, but they were more satisfied in areas such as the company’s internet presence and the requirements made of them. Maybe things will pick-up a bit for Isuzu next year. (Sorry.)

citroen’s SCORES

isuzu’s SCORES

100

49 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

37.5

48 25

W ar ra nt y Af te rs al es M ar ke tin g aw B ar ra en nd e Ac ss ce ss ib ilit y

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

42 21

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In te rn et Ne su w c pp ar ly

Fi na nc e

W ar ra nt y Af te rs al es M ar ke tin g aw B ar ra en nd e Ac ss ce ss ib ilit y

50 40

37.5

50 40

PERCENTAGE

70 60

Fi na nc e

PERCENTAGE

scores

0-24% 25-49% 50-74% 75-99% poor

average

good

100%

excellent

23 Subaru

faultless

22 Mazda

Overall score NEW ENTRY

35.4%

36.2%

Overall score qdown 9

WHEN we started to analyse the results of this year’s Car Dealer Power survey, Mazda’s placing so low down the pecking order came as a bit of a surprise to say the least. The Japanese giant has enjoyed a higher-thanusual profile in the UK lately, and has been winning hearts and minds with new models such as the brand new Mazda 3 and the award-winning Mazda 6. Dealers clearly think more work on the product front is needed, however, telling us that classic stablemates such as the iconic MX5 and Mazda 2 are getting a bit long in the tooth. The company scored well in a number of categories, however, with four good and excellent ratings towards the left of the graph below.

subaru’s SCORES

mazda’s SCORES

100

65 50

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

20 aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

aw B ar ra en nd e Ac ss ce ss ib ilit y

21 Jaguar

W ar ra nt y Af te rs al es M ar ke tin g

0 In te rn et Ne su w c pp ar ly

In te rn et Ne w su c pp ar ly

Fi na nc e

50 40 30

39 28

50 40

PERCENTAGE

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

IT’S another new entry, as Tony Blackburn is fond of saying. Not an amazingly dazzling debut by the Japanese manufacturer, but at least we’re beyond the stage where carmakers are receiving zeroes in various categories. Apart from the BRZ sports car, Subaru’s model range is hardly inspiring but that doesn’t seem to matter too much to Subaru’s dealer network. Looking at new car supply, they seem to be getting good quantities of stock for their loyal customer base. The level of brand awareness was something they seemed relatively happy about too, no doubt helped by recent talk about a new STI – a car that Subaru badly needs to speak to more customers and re-invigorate brand perception.

20 Volvo

Overall score NEW ENTRY

36.6%

39.2%

Overall score NEW ENTRY

OUR first home-grown manufacturer, and another new entry. We might have expected Jaguar to fare a little better than this but it’s good to see the charismatic company represented in Car Dealer Power. You’d think dealers might be a bit happier actually. New products in the form of the F-Type Convertible and Coupe are seeing them return to selling days they haven’t experienced for a long time, while cars like the XF and XJ continue to perform strongly thanks to their good looks and suitable powertrains. Perhaps Jaguar can look forward to a better result next year? By the time the 2015 survey takes place, their new baby saloon XE will have arrived in showrooms.

WHILE we’re delighted to see the stylish Swedish manufacturer join the Car Dealer Power ranks this year, we thought they might have done a bit better. Having said that, a top-20 placing is not to be sniffed at. Dealers have had plenty to get their teeth into recently. New additions to the range have included the exciting new V40, which launched Volvo into the premium hatchback market with gusto, and the V60 plug-in hybrid, which has been generally well received. Dealers did seem pretty pleased with Volvo’s warranty offering and accessibility but the company has work to do in areas such as stock management, the internet and the bonus structure it operates.

jaguar’s SCORES

volvo’s SCORES

100

50 32

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

In te rn et Ne su w c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

0 W ar ra nt y Af te rs al es M ar ke tin g

50 40

16.6

32 18

50 40

PERCENTAGE

Fi na nc e

PERCENTAGE

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19 Lexus

18 Chrysler

Overall score pup 6

44.5%

51.0%

Overall score pup 11

FOR dealers and customers, Lexus is synonymous with luxury, and as the tight grip of the recession finally loosens in the UK, the Japanese brand is well-placed to capitalise. We’re sure the team at head office will be pleased with this rise of six places year-on-year. It’s clear to see dealers are happy when it comes to product and they had particular praise for the IS, the company’s excellent new small saloon. Improvements to the GS to help keep it competitive are welcome too while there is the prospect of good times ahead with the new NX crossover. The high points in the graph below are the aftersales side of things and accessibility. Brand awareness and ROI? Not so much.

A NOTABLE improvement from Chrysler here. Despite dealers losing the so-so Delta hatchback, they seem to be relatively happy even though there are just three cars in the Chrysler range – the Ypsilon, Grand Voyager and 300C. The Fiat Group’s approach to its network – putting all of its brands under one roof – may well be working for Chrysler which has suffered from poor public awareness over the past few years and can now piggy-back on the better-known offerings. There is quite a consistent picture across all 13 categories in the graph below, with seven scoring more than half marks. You dealers can be a difficult bunch to please so Chrysler should feel reasonably satisfied with that showing.

lexus’ SCORES

chrysler’s SCORES

100

43.8

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

Fi na nc e

In te rn et Ne su w c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

W ar ra nt y Af te rs al es M ar ke tin g

0 Fi na nc e

17 Land Rover

37.5

50 40

W ar ra nt y Af te rs al es M ar ke tin g

50 39

50 40

PERCENTAGE

16 BMW

51.4%

Overall score qdown 11

Overall score pup 2

52.6%

land rover’s SCORES

bmw’s SCORES

100

64 49

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

28 In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

In te rn et Ne su w c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

W ar ra nt y Af te rs al es M ar ke tin g

0 Fi na nc e

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W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

37.5

57 39

50 40

PERCENTAGE

59.4

A SMALL improvement for BMW here – they are moving in the right direction which can only be good news for bosses at the company. Dealers’ approval ratings for the German manufacturer range from 28 per cent (accessibility) to 72 per cent (warranty). New car supply is only ‘good’ (with a rating of 49 per cent) – but perhaps that’s not surprising when there have been so many new models introduced recently. To name just a few there has been an explosion in the 3 and 4 Series lines – from GTs, Gran Coupes and M-badge models – to the 2 Series, X5 and of course the eco i3 and i8 cars. Still, steady progress up the Car Dealer Power rankings is something to smile about, surely.

AS WITH sister brand Jaguar, this was a surprising result for Land Rover, and not in a particularly good way. We have to say there was a degree of puzzlement at Car Dealer Towers because there has been a deluge of new product for dealers lately. Freelander and Range Rover Evoque have all had revisions, the Discovery has had a major update while the new Range Rover Sport is attracting leagues of happy customers. That’s not forgetting a new long-wheelbase Range Rover and hybrid technology for the famous British luxury off-roader. In contrast to some other manufacturers, the percentage ‘approval ratings’ varied widely in Land Rover’s bar chart. We would go on but you can see for yourselves below...

scores

0-24% 25-49% 50-74% 75-99% poor

average

good

100%

excellent

15 Honda

faultless

14 Peugeot

Overall score qdown 6

53.5%

55.7%

Overall score pup 7

honda’s SCORES

peugeot’s SCORES

100

67 50

60 45

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

In te rn et Ne su w c pp ar ly

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

0 Fi na nc e

50 40

13 Seat

33.3

PERCENTAGE

40 30

PERCENTAGE

A MASSIVE jump here for Peugeot and in a big contrast to its sister brand Citroen. A wealth of new product has arrived in dealers’ showrooms, most notably the 208 supermini that regularly appears in the best-selling new car registration figures. There has also been a raft of updated models that are keeping dealers happy such as the 3008 crossover, 5008 MPV and RCZ sports car. Peugeot will be hoping to keep this good mood up over the next 12 months – especially with the arrival of the new 108 city car. The lion is indeed going from strength to strength with its dealers, and they are particularly happy with their manufacturer partner when it comes to the issues of warranty and stock management.

BOSSES at Honda UK will no doubt be disappointed about this result – the Japanese giant has slipped back six places, although it manages to retain its spot in the top 20. One new model in the shape of the Civic Tourer obviously hasn’t done enough to make dealers happy. The prospect of some spicy machinery in the form of a Civic Type R and NSX and a volume-building small SUV is exciting, however, so maybe the manufacturer can look forward to some more triumphant times ahead. Dealers are happy with Honda’s warranty offering but think the company’s marketing activity could do with improvement. ‘Requirements’ and ‘return on investment’ were other categories dealers moaned about.

12 Renault

Overall score qdown 2

56.5%

61.6%

Overall score uNON MOVER

100

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

In te rn et Ne su w c pp ar ly

Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

55.8

W ar ra nt y Af te rs al es M ar ke tin g

31.2

PERCENTAGE

Fi na nc e

PERCENTAGE

renAult’s SCORES

100

seat’s SCORES

AGAIN, a placing that caused a few raised eyebrows at Car Dealer Towers – especially as the French firm is reporting record sales at the moment thanks to the success of models such as Clio and in particular the Captur crossover. Zoe is helping to increase Renault’s profile in the world of electric cars, but dealers don’t seem to be happy or unhappy – just satisfied. The company’s new Go5+ programme has just begun and we expect an improved performance in the league table next year. Impressive for 2014 was the fact that in no category did Renault score lower than half marks, venturing over the 70 per cent mark in three areas: finance, warranty and aftersales. A good effort from a consistent performer.

A SLIGHT drop here for the Spanish car maker – and that’s a bit of a surprise really. The Leon range has really gained traction in the past 12 months thanks to special offers, effective advertising and of course new variants such as the ST estate and hot Cupra models. Dealers gave their manufacturer partner 60 per cent or above in six categories, including finance, warranty, aftersales and marketing. But they were less happy when it came to ‘manufacturer requirements’ and return on investment. Seat has had something of a rollercoaster ride in Car Dealer Power over the years. The company took the number-one spot in 2011 before tumbling down the table and climbing up again in subsequent years.

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10 Audi

11 Ford Overall score qdown 7

66.0%

67.2%

Overall score pup 7

62.5

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

50 40

9 Nissan

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

64.4

66 55

PERCENTAGE

100

audi’s SCORES

ford’s SCORES

AN IMPRESSIVE rise for a brand that’s riding high at the moment, and whose rise to the upper echelons of the motoring scene in the UK has been widely and extensively documented. From the results and comments that arrived at our offices, it was clear to see that dealers are jumping onto the opportunities presented with new models and the effects are clear to see – Audi is leading the way in the premium car market and beating its nearest rivals. Interesting to note that used car supply is the category that was the weakest for Audi – could it be that the company is almost becoming a victim of its own success and keeping people waiting for their shiny new models for rather too long?

A BIG drop here from the Blue Oval, a manufacturer you’d think would be perpetually riding high at the top of the Car Dealer Power charts given its dominance in the UK. Seven places is a bit of a plunge and possibly another difficult-to-understand result in this year’s Car Dealer Power. After all, Ford has embarked on a massive investment programme to update dealer facilities and there has been plenty of new product in the form of a whole new Transit van range, B-Max and new Fiesta derivatives such as the fantastic ST. One thing the dealers were very pleased about was Ford’s brand awareness – and that’s hardly surprising. Can there be a single motorist in the UK who isn’t aware of the Fiesta, Focus, et al?

8 Mitsubishi

Overall score qdown 1

67.9%

Overall score pup 6

68.0%

48.3

77 66

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

W ar ra nt y Af te rs al es M ar ke tin g

50 40

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

58.3

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50 40

Fi na nc e

PERCENTAGE

100

mitsubishI’s SCORES

100

nissan’s SCORES

MITSUBISHI is riding high at the moment. After the arrivals of new Outlander and Mirage last year, there has been another exciting development for 2014 – the launch of Outlander PHEV, which the company has heralded as a game-changer for the brand. The dealership network has been expanding in line with its recent impressive sales figures and things are looking pretty rosy. No surprise then that Mitsubishi, with its UK headquarters in Cirencester, has secured another top-10 finish. As the bar chart shows, most of the marks awarded were in the 60s and 70s percentage-wise. There is clearly some work to do in the areas of brand awareness and manufacturer ROI, however.

ANOTHER strong showing from a manufacturer which although Japanese, has a strong footprint in the UK with its factory in Sunderland and design teams based here. There’s been plenty of new product recently in the shape of the crossover trio of X-Trail, Qashqai and Juke, with new Note and Micra making an appearance last year too. On top of all that, Pulsar’s on the way in the autumn and the company’s leading the charge on the EV front as Leaf momentum keeps growing. Busy, busy then for Nissan’s network of dealers who still managed to find time to fill out the Car Dealer Power survey in significant numbers and give their largely positive impressions of life with the brand.

scores

0-24% 25-49% 50-74% 75-99% poor

average

good

100%

excellent

faultless

6 Suzuki

7 Vauxhall

70.1%

Overall score pup 15

71.1%

Overall score pup 4

66.7

79 69

86 69

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

In te rn et Ne su w c pp ar ly

W ar ra nt y Af te rs al es M ar ke tin g

In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

50 40

5 Hyundai

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

52.8

60 49

PERCENTAGE

100

suzuki’s SCORES

vauxhall’s SCORES

SUZUKI is one of the manufacturers in Car Dealer Power which seems to be on a mission to strap itself in for a rollercoaster ride. The last three surveys have seen it go from second, to tenth, to sixth. This year’s rise in the Car Dealer Power league will be well received by all at the firm. The Japanese company is working hard to improve the reputation of its already-highly-thought-of dealers with transparent ratings on dealer websites and a tie-up with Motor Codes. The new SX4 crossover is also doing well – its arrival was music to the ears of dealers. As with Vauxhall to the left, it seems to be dealers’ perceptions of the public’s brand awareness which is spoiling the party here.

FIFTEEN places higher! A very impressive rise here for the Luton-based car maker and one that will come as welcome relief after a 10-point drop between 2013 and 2014. Despite a slow start, the Adam is finally attracting some interest from customers now, while the Astra and Insignia continue to represent Vauxhall in the best-sellers chart every month. In only one category did car dealers award the manufacturer marks of below 50 per cent – brand awareness. Warranties were the area were dealers were most satisfied, just edging above the 80 per cent mark, but as you can see from our bar chart, there are plenty of marks awarded of 70 per cent and above.

4 Toyota

Overall score qdown 2

78.5%

79.9%

Overall score qdown 3

IT’S only three places but seeing as though Toyota won Car Dealer Power last year, bosses at the company will be a bit disappointed. It will be interesting to see whether new product in the shape of Aygo and refreshed Yaris will help bump Toyota up the rankings next year. That said, we have to acknowledge that the two new cars haven’t been universally well-received so maybe there was a bit of kick-back from dealers because of that. Still, below we publish another sea of red typical of the survey results at the top end of our leaderboard, with finance and new car supply being particularly highly regarded by Toyota’s dealer partners. Can our 2013 winner rise to the top again next year? Only time will tell...

hyundai’s SCORES

toyota’s SCORES

100

In te rn et Ne w su c pp ar ly

69.7

86 71

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 In te rn et Ne w su c pp ar ly

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

aw B ar ra en nd e Ac ss ce ss ib ilit y

50 40

W ar ra nt y Af te rs al es M ar ke tin g

aw B ar ra en nd e Ac ss ce ss ib ilit y

50 40

70 PERCENTAGE

72.7

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

PERCENTAGE

A SMALL drop – but a place in the top five is hardly something to be sniffed at so the Hyundai team will probably not lose too much sleep over this. A return to motorsport is helping public awareness of the brand as are big-money deals in the world of football with the recent World Cup. New i10 is impressing all and sundry and you’ll read elsewhere in Car Dealer that dealers voted it the Car of the Year for 2014. The only area in which the company dipped below 70 per cent was stock management (68). Its five-year warranty, clearly a winner with dealers and customers, scored a whopping 95 per cent! New dealership branding is on the way so it’ll be interesting to see how Hyundai fares next year.

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SURVEY.

scores

0-24% 25-49% 50-74% 75-99% poor

average

good

3 Volkswagen

2 Skoda

Overall score pup 2

Overall score pup 5

80.7%

100%

excellent

faultless

81.8%

76.5

89 78

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 In te rn et Ne w su c pp ar ly

W ar ra nt y Af te rs al es M ar ke tin g

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In te rn et Ne w su c pp ar ly

70 PERCENTAGE

86 72

Fi na nc e

PERCENTAGE

100

Skoda’s SCORES

100

Volkswagen’s SCORES

A BRILLIANT result here for the Czech brand – they’ve risen a spectacular five places, and that’s five places in the highly competitive part of the Car Dealer Power survey table. Dealers told us that refreshed Yeti is still delivering the goods and that the Citigo city car has allowed them to speak to new customers. The brand new Octavia vRS is a strong proposition too and seeing high levels of interest from buyers. Car Dealer has been told in the past that Skoda doesn’t have ‘customers’, it has ‘fans’ – and many of its dealers would seem to fall into that category too. Dealers were particularly happy with the company’s marketing activity but ‘aftersales’ was lagging behind the pack somewhat.

UP TWO is Volkswagen – a good result for the Teutonic titans. Strong sales of its most well-known models such as Polo, Golf and Passat have been joined of late by the new Up city car. It’ll be interesting to see VW’s position in Power 2015 as by then, dealers will have got to grips with the electric models in Volkswagen’s range – e-Up and e-Golf. In the meantime, the manufacturer can rest easy in the knowledge that its dealers in the UK think it is doing a good job. The sea of red in the graph below provides the necessary proof, with a couple of marks over 90 per cent and many other categories looking pretty healthy too. It’s tough to break into the top three in Car Dealer Power. Very Well done!

Why YOU need to be at this year’s Used Car Awards The Car Dealer Used Car Awards celebrate every part of the used car industry. Hosted by Mike Brewer, they’ll be held on December 1 What’s the venue? The Brewery, Chiswell Street, London. How do I enter? Entry is FREE and easy. Simply type bit.ly/UsedNoms14 into your web browser and enter as many categories as you wish. How can I sponsor an award? There are a number of sponsorship packages. Contact us for details. How can I book a table? Full tables cost £1,995. Contact us to book.

For more information, contact the Car Dealer team on (023) 9252 2434 We are taking bookings now

CarDealerMag.co.uk | 63

SURVEY.

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50-74%

75-99%

good

excellent

100%

faultless

1 Kia

83.1%

Overall score pup 1

TAKING top honours in this year’s Car Dealer Power survey was Kia, rising to the number-one position from a very creditable showing as secondplaced finisher last year. Kia is a manufacturer that has totally transformed its operation in the UK over last seven or eight years. It has embarked on a thorough overhaul of its model range, introduced the pioneering seven-year warranty and embraced the virtual world by encouraging Kia owners to have their say online about the cars it manufactures. Leading the charge at the head of the youngest product range in the UK are cars such as the Cee’d, Sportage, Rio and Soul. And let’s not forget that Kia has had the guts to take on the big boys of the performance world. Its GT line, as debuted on the stylish three-door Pro-Cee’d, has won leagues of fans across the media and further afield. Paul Philpott, President and CEO, is pictured receiving the award from Car Dealer editor James Batchelor at the Car Dealer Power awards ceremony. After the event he told us: ‘This is a great achievement for us. It’s the result of seven or eight years of hard work to get to Manufacturer of the Year at the Car Dealer Power awards. The three key words for us are product, people and partnership and to be rewarded by car dealers for the partnership that we have with them is a great accolade for us. We’re delighted.’ Looking at the bar graph below, it’s a sea of red – always good news in the world of Car Dealer Power. Kia’s highest score came in the warranty category and if there is any area where there is room for improvement, it’s new car supply, the only category in which the company dipped below 70 per cent. kia’s SCORES

75.7

79 69

100

50 40 30 20 10

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

average

25-49%

W ar ra nt y Af te rs al es M ar ke tin g

poor

PERCENTAGE

0-24%

Fi na nc e

scores

CarDealerMag.co.uk | 65

FEATURE. KIA IN THE USA

American

hustle

Following the firm’s success in the Car Dealer Power awards, James Baggott travelled to the US of A to see how the world’s largest Kia dealer does things across the Pond OUTSIDE there’s a man in a Stetson and with a rather impressive moustache. He’s checking over a white Kia Optima like he’s lost his phone under a seat. He’s kicking the tyres (nothing changes), poking around under the bonnet (lots of plastic engine covers, check), and getting in and out of every door (presumably to make sure they all open, they do). The car he’s poring over like a CSI audition is brand new and near-identical, barring the paint colour, to another 50 Optimas parked up as far as the eye can see. If his cross-examination is successful he’ll sign some forms and drive his new car away within the hour – in fact, if he doesn’t, the salesman who’s working him hard in a crisp white shirt and company-issue tie will have to explain to his superiors why. ��| CarDealerMag.co.uk

This is the LA way. I’ve travelled to the huge sprawling metropolis, baking in the Californian heat, to visit the manufacturer’s largest dealership in the world. It can be found in a bustling suburb of a city that’s so vast it’s impossible to tell where it starts and where it ends. Los Angeles is a place where the über-wealthy mix with the criminally poor; a city where many of the population has more plastic injected into their person than body fat, where money talks, where most people have two phones and everybody wants everything, and they want it yesterday. ‘This is LA, people don’t wait,’ explains Tom Awada, the 43-year-old general manager of Kia of Downtown. ‘Customers drive in, are met by one of our 40 salesmen, and they’ll leave with a new car – on average — an hour later. Most of the customer visits are made after an appointment

has been booked in our call centre. We do a lot of advertising on the internet, in papers, on TV and radio, and they book an appointment to come in and buy.’ What’s clear, even after the first 10 minutes at the busy dealership, is that it’s not only huge, but that things are done very differently to the UK. Very differently indeed. I meet Awada in the reception area of Kia of Downtown. It’s clean and pleasant enough, but it’s no new-build. This site has been here a while, despite Kia only taking custody two years ago. The concrete covering the lot looks old and wellworn – and when you hear the numbers of cars that come and go from the dealership forecourt every month you will understand why. Selling the American way is a lot like their burgers – big, excessive and lots of coming and going. Kia of

special

Selling cars in the heart of the LA sprawl

Joseph Sage makes his point to Baggott

The showroom is not exactly Park Lane Downtown sells an incredible 450 cars a month. No, that isn’t a typo, it really is 450 cars a month. And when you consider that’s more than double what some sites will sell in the UK in a year, you get an idea of the scale of this place. ‘We turn over a lot of cars,’ explains Awada. ‘We have space for 500 cars here and we sell 75 per cent of them with ease every 30 days. In fact, we’re actively looking for another site where we can store 500 more. The more I have, the more I can sell – it’s as simple as that.’ Awada talks quickly as he’s showing me around the sprawling car sales lot. Answers are short, snappy and to the point – it’s clear this is a man whose every minute speaking to me is a minute he’s not earning money. He’s not impatient, purely professional, just like he wants his staff to be.

‘My salesmen have to be clean-cut, smart and courteous,’ he explains, while dismissing yet another call on his constantly-ringing iPhone. ‘You can see we’re based in a busy car sales area with a lot of choice, so it’s important once a customer is on our lot we don’t let them leave. They came here to buy, and they will.’ By busy car sales area, Awada isn’t joking. Dealerships in America tend to congregate together, feeding off each other’s success, leaching every customer they can from the competition. I can see 10 sites within a stone’s throw of his front door – including a huge Porsche dealership directly across the street. ‘If a customer walks off the lot, he’s not coming back – I can guarantee it,’ says Awada. ‘The sales process here is fairly rigid. The customer is met as soon as they park their car, the right salesman

introduced if they made an appointment beforehand, then they’re shown the cars. ‘We buy our stock in bulk from the manufacturer and get to know what specification customers want. People are not prepared to wait for a car in the States, they want it now, they’re happy for us to spec them and they can simply choose the colour. ‘After a test drive – which 99.9 per cent of all customers take because we make it mandatory – we take them inside where a ‘closer’ (more experienced salesman) will present the numbers. Then they’ll sign and drive away… hopefully!’ Awada pauses for breath in between sorting out answers to my questions. I think he’s surprised I’ve got as many as I have. He tells me most customers buy their cars on lease deals, signing the paperwork and driving CarDealerMag.co.uk | 67

FEATURE. KIA IN THE USA

Packing them in – they sell as many as they can get away the same day. When I tell him my mum waited 12 weeks for a Skoda Citigo – a car around the same size as the 150 Souls he has tucked away in one corner of the lot – he laughs out loud. Rather heartily. ‘She waited three months?’ he chuckles. ‘For a Skoda!?’ He can’t quite believe what I’ve just told him. When I said that’s nothing compared with the wait for some luxury cars he rolls his eyes towards the Porsche showroom across the road. ‘They’ve got 20 911s on the roof,’ he says. ‘Rich customers want to wait even less than Kia customers.’ NEW BRAND The Korean manufacturer is a relatively young brand in the States, but it’s worked hard to build a ��| CarDealerMag.co.uk

reputation and awareness with buyers. Advert slots during the Super Bowl – seconds that can cost tens of millions of dollars to fill and are seen by 111m people – are now the norm, as are high-profile sports sponsorship deals. While we were in LA, the car maker’s World Cup adverts were highlighting to Americans that there was a ‘different type of football’ out there with a scantily-clad model ‘persuading’ couch-seated fans to switch channels and try it out. The maker is also the official car supplier to the NBA (that’s basketball for those not in the know), as well as a number of teams in the national league, too. The vast sums of money Kia has spent on these deals – $1.4bn Tom Awada is in the past decade alone – a fast talker

certainly seem to be working. The brand has sold five million vehicles in the US since it arrived in 1994 and now clocks up half a million sales a year in a market that sees 16.5m new cars find homes every 12 months. The manufacturer is now taking on the likes of BMW and Mercedes, too, with its K900, an E Class-rivalling luxury car, which is actually surprisingly good. We tried the V8 model while we were in the country and were impressed with its overall quality and technology. Whether the brand manages to convince savvy consumers to part with premium German car money for a Kia remains to be seen, though. ‘The K900 has just arrived and we’ve had some interest,’ said Awada. ‘People can buy

special

Efficiency and courtesy are the watchwords here

Choose your colour not your spec

Selling cars American-style

A good buy in the used car lot

Kia and the $3.5m tortoises

one for $30 more a month on a lease than a Optima, but we’re struggling to convince the buyers.’ In fact, the aforementioned Stetsonwearing punter is currently turning down a K900 in favour of the Optima because he doesn’t want to look ‘too flashy’… ‘It’ll be an uphill battle,’ says Awada. ‘But look how far Kia has come in the last decade – I wouldn’t put it past the brand to succeed with this car.’ We get back to the topic of car deals as we stroll into the part-exchange area. There are makes and models from a whole range of manufacturers here and I spot a nice VW Golf GTI sitting alongside a BMW 5 Series. However, the prices of the cars are noticeable by their absence. ‘Around 60 per cent of customers trade

Korean car manufacturer Kia spent $3.5million (£2m) rehoming 27 desert tortoises before it could build its secret testing facility in the Mojave Desert. Part of the deal to set up the 4,300-acre California Proving Ground with the American authorities was a strict agreement to track down, rehome and nurture the hard-backed protected species. Little did Kia know that that agreement would see it shell out (sorry) close to a staggering £76,000 for each one of the slow-moving critters over a period of five years. ‘We had to buy them each homes on Long Beach,’ said facility manager Matt Seare. ‘I’m joking of course, but it probably would have been cheaper! We had to purchase a separate piece of land adjacent to the property purely to rehome the

tortoises. We had to sweep the site twice, combing the whole area, prior to building the track, to find them all. We found 26 immediately and then on the second sweep we found one more hiding. ‘Two years later we had to sweep again just in case there were any too small to spot originally that had since grown bigger. It was quite a project.’ Kia paid for a team of 10 biologists to monitor the newly-homed tortoises for five years after their big moving day. The speedaverse land-dwelling reptiles even had radio transmitters attached to their shells so the team could track their excursions – albeit rather limited in distance. Seare said: ‘We take our responsibility to the environment very seriously. Nothing proves that like the money we spent on 27 tortoises.’ CarDealerMag.co.uk | 69

FEATURE. KIA IN THE USA

Why you never want to work at Kia’s test site… During our visit to the States we got the chance to visit the manufacturer’s secret test site in the Mojave Desert – and quickly realised that we absolutely, most definitely, never, ever, want to work there. Although the site’s 60 engineers do some sterling durability work testing cars to destruction so your customers don’t have to, we quickly came to the conclusion that it wasn’t for us. Here’s why…

The killer snakes The California Proving Ground is home to two types of deadly snake: The Mojave Green and Sidewinder. The former is said to be the most debilitating and potentially deadly of all North American snakes, while the second probably won’t kill you but if it bites you, urgent medical attention is advised. Kia has a helicopter on standby in case of ‘snake-human interfaces’. We’re up for testing cars, but snakebites? Not so much.

It’s hotter than the sun Okay, that’s a little bit of a lie, but it certainly felt like it. Temperatures topped 100F (38C) while we were there, but in the summer months the mercury regularly blasts past 110F (43.5C). That’s more than enough to give you an all-over Dale Winton tan. Kia has to provide its workers with two GALLONS of water a day each by law to keep them hydrated. With an average 300 days of sunshine a year, the chances of a break from the heat is unlikely, while a T-shirt tan is pretty much guaranteed.

There are spies everywhere Part of the reason the 4,300-acre Kia test site was built in the middle of the desert was to prevent prying eyes from rival manufacturers spotting what the Korean firm was up to. The desert location, next door to the Edwards Air Force Base, means a no-fly zone above the site is in force, stopping pesky competitor company jets detouring on their way to LA. The perimeter of the huge test site is patrolled regularly too. Site boss Matt Seare said: ‘Rivals didn’t used to care what we’re up to, but they do now.’

Testing for colour fade

in their old car,’ explains Awada. ‘But we don’t really bother with them much. We don’t put prices on them, as it’s a case of asking the customers what they’re prepared to pay. We focus on new cars – used are taken in purely to sell a new one. If I have to sell them on without a profit I will.’ It’s clear the money is in the new metal – which is why sales staff are targeted heavily to keep them moving out of the door. Salesmen are paid an hourly rate of nine dollars (Starbucks workers down the road get four), but it’s the commission where the sellers really make their cash. Top salesmen bank $10,000 a month, but the average is around $5,000 – even that is a takehome of nearly £3,000. What’s more, with so ��| CarDealerMag.co.uk

many customers coming through the doors every day, it’s not hard for even the under-performers to chalk up four sales a month. ‘It’s a hugely competitive market here both in terms of competing against each other in the dealership and with the other dealers in the area – there are nearly 30 Kia dealers in LA, and the nearest one is just 10 miles down the road. ‘We have to compete on price to get customers in,’ says Awada. The American market gives dealers a lot more wriggle room in the pricing than back in the UK – there’s at least 10 per cent profit in each car to play with. To pull customers in, rather than visit one of the other dealers close by, Kia of Downtown will slash prices in adverts to hook a sale. ‘It’s all down to price – customers will search the

Desert test site’s road menu internet for the best price and then go to that dealer to buy, so we focus heavily on making sure our advertised prices are very competitive,’ explains Awada, as his phone rings for the 15th time. But this time he takes a quick glance at the screen and immediately stops talking. This call is from the site’s owner who has just arrived. It’s clear our chat is over.

special

They drive on the worst roads in the world If you thought your local back road was bad enough with the odd pothole, we can guarantee it’s got nothing on Kia’s test site. Its engineers have scoured the world to build 75 miles of the WORST surfaces to drive a car on – all so they know it won’t break when you batter your showroom-fresh model over them every day. From cobbled streets to speed bumps as far as the eye can see, these roads are designed to kill cars. And we all hate speed bumps.

You might have to do some gardening… Okay, so engineers might spend most of their time breaking Kia’s models in the name of testing, but the firm also takes its environmental responsibilities seriously, too. So if that means relocating one (read that as hundreds) of the famous Mojave Desert Joshua trees then so be it. Grab a spade! Kia even spent $3.5m on rehoming 27 tortoises found on the site – which worked out at a whopping near-$130,000 per reptile. So engineers are less Stig, more Sir David Attenborough.

They cook car parts for a living Kia takes its durability testing very seriously indeed. Not only does the California Proving Ground subject cars to horrendous road surfaces and hideous conditions, but clever weathering droids focus the sun’s rays on car parts continuously to see how they fare under UV radiation. Engineers are not allowed to use them to ‘get rid of the T-shirt tans’. Blimey, it’s hot here!

Bright spot – checking where those rays are coming from

THE BOSS We hotfoot it across the lot to meet Joseph Sage, one of three brothers who own and run Sage Automotive Group, which is the parent company of Kia of Downtown. In a tailored black suit, freshly-pressed shirt and red tie, he looks every bit the car dealership owner. Sage’s Rolex watch, chunky solid silver cufflinks and tan that looks like he’s spent more time cooking poolside than chilling in the showroom’s air con give him an air of the authority he obviously holds. Twice during our chat in Awada’s office, which Sage ceremoniously seconded from his general manager, he picks up the phone and barks orders at staff. Just Joseph Sage

like Awada, no unnecessary words are used. ‘Tea, two bags,’ he states into the phone. ‘Coffee for my visitor.’ No please, no thank you, just quick, direct orders. After a brusque beginning, Sage soon opens up. He explains how his family currently runs seven sites – Kia, Toyota, Nissan, Infiniti and Mercedes are in his portfolio – and the firm will soon be adding a Chevrolet outlet and two Lotus sites. ‘Only the Evora can be sold here, which is a shame,’ he said. ‘But I recently visited England, where they told me we can expect more models for the States soon. By comparison to this site, the Lotus ones will be pretty small.’ Sage explains it was

Kia’s ‘brilliant products’ that attracted him to open a franchise and he’s clearly doing well off the back of them. But then with car sales blood running strongly through his veins, he was always bound to. ‘I started selling cars at 15 when I got my sales licence,’ he tells me, while sipping his extremely strong English breakfast tea. ‘I had my sales licence before my driving licence and worked at my father’s Ford dealership.’ A lawyer by profession, Sage attended law school and still keeps his hand in with the odd bit of company legal business, but it’s clear the buzz of shifting large amounts of metal get him excited. He tells me how he gets daily updates on sales for all his sites – and is happy if the number of sales is in three figures for the day across the group. CarDealerMag.co.uk | 71

FEATURE. KIA IN THE USA

Kia joins the autonomous cars race Korean car manufacturer Kia has admitted it is already deep into the development of autonomous cars. The firm’s American vicepresident of product planning, Orth Hedrick, told us the firm’s tech team is already years into the development of the new technology. However, he admitted the systems had not been without problems, not least the issues surrounding the legalities of cars that drive themselves. ‘We are actively working on autonomous cars,’ said Hedrick. ‘We are working with the Department for Transport here in the States about where the liability lies if there’s an accident. Just look at the problems GM is currently having over a switch – this is a litigious society and we need to be careful. ‘You Orth Hedrick can already imagine the conversations: “My car did it!” or “The car told me to do it” – there are huge issues potentially.’ Hedrick said he believes that states such as California, where he is based, will introduce autonomous-only lanes on motorways, as they currently have lanes in place for electric vehicles and multioccupancy vehicles. ‘Autonomous cars will happen,’ he said. ‘But the biggest challenge is liability. Also, what happens when the customer falls out of sync servicing? ‘Could you trust autonomy after six years when the car hadn’t been serviced at a main dealer? Who would be liable then?’

‘It’s a level playing field, James,’ explains Joseph Sage

Even the popcorn moves fast in the showroom ‘Business is tough, but it’s got substantially better since the recession,’ he tells me. ‘It got bad in September 2008. I remember exactly when, because I got a call from American Express saying they were cutting my credit limit because they “didn’t like the car sales business”. That was a shock. That’s when I realised things were going to get tough.’ Sage laid off 30 per cent of his staff in line with a 30 per cent downturn in business, but as the market recovered he’s slowly getting back to where he was. ‘We’re still pretty lean,’ he said. ‘But that was a lesson everyone learned from the recession.’ Now he has more pressing problems on ��| CarDealerMag.co.uk

his mind – like Tesla. In the States, the electric car manufacturer has bypassed the traditional dealer sales channels and is selling direct to consumers. It’s something that’s clearly got the motor trade worked up. ‘If I came up with their sales lines I’d be taken out of here in cuffs,’ he exclaims, clearly wound up by the EV firm. ‘They’re advertising cars showing the money customers would save on fuel, or time not spent at petrol stations, as cash discounted off the lease – their argument is, if you’re not paying it or are saving hours you could work not filling up your car, then that’s a monetary figure you can take off your lease,’ he says. ‘That’s not right to me. Nor is the direct selling

Downtown is where it happens in LA to customers from the factory method. I’m not worried about Tesla doing it, but I’m more worried other manufacturers will see what they are doing and decide to do it too. Then we’d really be in trouble.’ Fortunately, there’s little trouble at the moment. Last year, the Sage Automotive Group banked $20m profit. Yes, profit. Sage and his team are clearly content making hay when the Californian sun shines… As we’re sipping coffee, drinks that a junior has diligently run to the nearest Starbucks to collect, I can hear the hustle and bustle of more sales being chalked up outside the glass-walled office where we are chatting. The plastic people of LA are in and buying. And the 450 cars in stock are rapidly depleting. I shake Sage’s hand and thank him for his

A look behind design studio’s doors

special

The Stinger GT – a car to be proud of

Lined up and ready to go – cars don’t hang around

Car designers get away with pretty much anything they like. They work the hours they want, wear whatever takes their fancy and, from our visit to Kia’s Californian Design Centre, are allowed to cultivate facial fuzz to near sporting levels. But unlike the more regimented areas of car companies (accounts), these creative types can bend the rules because it’s their creative genius that forms the bedrock of a firm’s success. Great-looking cars sell, and Kia’s recent design-led resurgence is largely thanks to the team sitting behind the beautiful glass-walled offices in sunny Irvine, CA, that Car Dealer is visiting. It’s thanks to these T-shirtwearing artists that the latest Sportage looks the way it does and we all know what a stellar seller that has turned out to be. The team of 33 is led by Tom Kearns Tom Kearns – the man behind the Stinger GT roadster concept, which debuted in Detroit in January – and overseen by Kia Hyundai design demigod Peter Schreyer. Every year, the team gets to work on a new concept car to showcase at either the Detroit show or February’s Chicago Motor Show. The designers are pitched against each other to shape a car of the future and the best ideas

Quick sale – Baggott nearly buys a car time, with the other he’s already picking up the phone to bark his next orders. Time in LA is precious. Awada is waiting outside his own office like a bouncer. ‘What’s next?’ he asks. ‘More questions?’ I fear taking up any more of his precious sales time would result in one-word answers, so thank him for the chat and head for the door. Outside, the man in the Stetson is getting comfortable in his new Optima. He shakes the salesman’s hand as snapper Julian dives in to ask if he’d mind a quick picture of him with his new car. ‘No f***ing way,’ he drawls through a tiny gap in the rapidly-closing door. Charming. In California the numbers may be greater, the rewards super-sized and the sun usually shining, but you still have to deal with customers... Don’t you just love ’em? [CD]

are clumped together with offerings from sister studios in Germany and Korea for the management to pick from. Highlights from the California contingent include the three-door rally-inspired Track’ster from Chicago 2011, the Soul’ster from Detroit 2009 and of course this year’s Stinger GT. ‘The Stinger GT is the car I’m most proud of,’ explained our host, design manager Eric Klimisch. ‘We wanted to do a car like that for a long time and are very proud of that one. We’ll certainly be having a party if and when that goes into production.’ Klimisch shows us around the cool offices and points out the basketball hoops in the courtyard, where designers let off steam and showcase their latest designs in natural light. He tells us there was recently a craze when the studio’s designers liked to race remote-control cars around the courtyard – but they’re now into their bikes. Kearns rides to work most days on a Ducati. ‘It’s a great place to work,’ added Klimisch. ‘I’m excited to see what our next look will be. The “Tiger Nose” Peter introduced worked well but I’m most excited to see how that look will evolve. I don’t think we’ll move away from it – it’s our BMW kidney grille – but it will change in the future.’ Much of the studio was blocked off from view as the team is already well into clay-modelling for next year’s concept car ideas. Despite our best attempts at getting a look on tiptoes we failed, but judging by the studio’s past output it’s sure to be a beauty.

Sitting pretty in a Soul’ster

This Trak’ster is ready to go

CarDealerMag.co.uk | 73

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FEATURE.

TRADING UP

Hoping for quick sales eBay frustrations see Andy Entwistle return to the trusty Auto Trader fold

hings are slow out there and this month reminded me why I get so frustrated with eBay. Don’t get me wrong – if you need parts or are looking for something specific it’s a great place to find things, but selling cars is a whole other kettle of fish. If you need to sell something, a no-reserve auction pretty much guarantees you can shift any sort of vehicle, and sometimes you might luck in if two or three people are really after what you have. However, at the lower end of the market, where Trading Up currently resides as we look to raise as much money as possible for Great Ormond Street Hospital, there are a lot of time-wasters. Twice we sold one of our cars and twice the buyer claimed it was a mistake. Eventually, the Jag sold. However, as I sit here, I’m still waiting for the buyer to collect. Twice they’ve cancelled, despite giving me a whopping £100 deposit – third time lucky I hope! On a more positive note, the MX-5 was picked up and we now move on to our next cars. I have a brace of Audi A6 Allroads that I’m expecting to fill a hole.

First up, bought via Sytner Web, we have a 2003 model with full leather and extensive service for the same amount that we sold the Jag for. It’s not going to set the world alight profitwise but should make us a few quid on a quick turnover. These big Audis are known to suffer problems with their air suspension, but all seems together on this one and the build quality is just as you’d expect. Living out in the middle of nowhere, I know these big old beasts are well respected

for their soft-road ability on bad country roads, blended with good build quality and, of course, the badge that is all the rage at present. After the frustrations of eBay, I’m going back to our tried-and-tested route of Auto Trader for the next couple of vehicles. I’ve spent a couple of days at the auctions, looking round BCA Blackbushe and finally getting to visit our friends at Central Car Auctions north of the border in Glasgow. I’m hoping that a couple more quick turnarounds will help bolster the charity kitty a little bit, even if the market is painfully slow at present. [CD]

STORY SO FAR... Suzuki Vitara Paid: £1,500 Spent: £300 Sold: £1,950

Mazda MX5 Paid: £1,500 Spent: £200 Sold: £1,900

Toyota Rav4 Paid: £2,000 Spent: £200 Sold: £3,000

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Added brand power HPI

W: hpi.co.uk/trade/ T: 0845 300 8914

t’s a well-known fact that a car is the second-biggest purchase anyone will make in their life. And it’s no surprise that with a massive expansion in manufacturers’ model ranges, and more and more finance products arriving in the market all the time, it can be a confusing world for your customers. And those aren’t the only factors car buyers have to consider. How do they know a particular secondhand car is a good buy? That it hasn’t in a past life been written off, involved in an accident, or been subject to a finance agreement which is still outstanding? Thankfully, all these fears can be laid to rest for a buyer as soon as they see the three-letter brand name of renowned vehicle-provenance specialists HPI. In a nutshell, the HPI logo means that a car is a good buy – and that it’s had its credentials checked and double-checked by experts. Car Dealer recently caught up with Phil Peace, HPI’s commercial operations director, who told us a bit more about the company’s work and stressed that an association with HPI could be particularly valuable for non-franchise dealers who might in themselves not have much ‘brand power’ in their local areas. ‘We tend to find that non-franchise dealers are certainly looking to utilise third parties such as ourselves who have recognised brands that give them credibility and help them reinforce the value of their proposition,’ Peace told us. ‘We give our dealer partners certificates and plaques that state they work with HPI. They’re able to put those up within their showrooms and that emphasises that a dealer works with a quality provider. ‘Clearly there are a number of trusted brands within the automotive market place. And from a provenance perspective, we absolutely fall into that category. We have been operating for 78 years and we’re known to consumers and the trade. ‘We were the pioneer of providing provenance checks for vehicles and we are still seen as the market leader. And we have got a very, very strong brand presence in the motor trade market place.’ Peace makes no secret of the reason why HPI is such a respected and reassuring presence in an increasingly busy automotive landscape. ��| CarDealerMag.co.uk

ACCURACY IS KING It’s probably fair to say that there is a phenomenal amount of data available about the used vehicle parc in the UK. And with so much information in circulation it’s essential that dealers and consumers aren’t led astray by a faulty figure or silly statistic. Accuracy is, of course, the cornerstone of the operation at HPI. ‘Our data is supplied from third parties,’ explained Phil Peace. ‘And we have a cleansing function to ensure that all our information is 100 per cent accurate. ‘When we take delivery of data – and we’re talking about huge tranches of information – we don’t take it at face value and upload it. We audit it carefully before we load it and we only proceed once we’re comfortable in terms of its accuracy. ‘We warrant the data too. Because

we’re so confident our data is accurate, we’re prepared to put a warranty on it – in effect providing a guarantee. ‘That gives the dealer and the customer confidence in the quality of the data and the service provision that we’re giving.’ As well as dealers using HPI, consumers are keen to take advantage of the company’s services too. ‘Yes, we supply thousands of checks directly to customers,’ says Peace. ‘A dealer has an obligation to check a car, and to find out if there are any non-conformities in its history. But in many cases, customers will gain comfort from doing their own check. ‘It’s a service we’re well known for and demonstrates that we’re a trusted brand among dealerships and the consumers who use them.’

‘We are synonymous with quality,’ he told us. ‘Quality of data and quality of information are our hallmarks. Our work helping buyers make informed purchase decisions is more important than ever.’ Peace again emphasised that although HPI works with many names at the top of the automotive spectrum, the company is keen to form partnerships with dealerships of all shapes and sizes. ‘Where we find our offering has particular strength is in the non-franchise sector,’ he told us. ‘In a small showroom, by having a plaque on the wall that says HPI-approved dealer, or HPI supplier, that gives the dealer a lot of credibility. ‘The buying decision for a customer is all about buying from a trusted provider and what we’re doing is helping the dealer build that trust.’ For anyone – and there can’t be too many people reading this! – needing a reminder of the services

HPI provides, Peace was happy to provide us with a run-through. ‘Our key proposition is around providing provenance on vehicles. We look at stolen, writtenoff and finance data, so in essence, if a consumer or dealer does a check with us, we look at those three key registers. ‘Obviously the best result is that we find that a particular vehicle has not been stolen, has not been written off, and is not subject to any outstanding finance. ‘We also run cars through the National Mileage Register – a mileage checking service we provide and which will tell us if a vehicle has been clocked. ‘Then once a car can be associated with our logo,

the consumer knows that it is clean. ‘We are giving dealers in particular They know they are on solid ground access to new products and services and can buy with safety and security. so that they can access valuation ‘All this is vital from a dealer’s information through our site. perspective too of course because ‘And dealers have the ability to print it helps the sales process to certificates which can be displayed HPI’s commercial run smoothly.’ within the vehicles and say that a operations director, Although HPI has been around for particular car is HPI-clear. more than three-quarters of a century, Phil Peace They can also download our logos, it is a company that is very much moving with download our statements and put our material on the times. their website. ‘Yes, our proposition is all available online,’ ‘It’s a subtle method of reinforcement – and, confirmed Phil Peace. ‘Customers and traders can go as well as everyone else, we know the customer online to check vehicles and we are enhancing this journey is changing and is significantly more proposition all the time. online-based now.’

Apps for consumers and dealers are on the way too, said Peace. And day-to-day help and support is never far away, whether a particular dealer has been working with HPI for years, or whether it is a recent addition to the HPI family. Peace said: ‘We have a dedicated call centre within our building which is open on weekdays from 8am until 8pm. We think it’s the only call centre that operates in that way in our marketplace and covers weekends as well. ‘If we don’t go back very quickly and answer queries, it could actually stop a dealer from selling a vehicle. We work very, very closely with our dealerships because we realise how critical a quick response could be.’ [CD] CarDealerMag.co.uk | 77

focus on.

MAPFRE ABRAXAS

Covering the insurance bases mapFre abraxas

W: mapfreabraxas.co.uk T: 0845 6838795

t’s always good to have someone in your corner, speaking up on your behalf and helping you advance your cause. And nowhere is that more true than in the finance and insurance arena, where it can sometimes be tricky to keep up to speed with ever-changing regulatory regimes and product developments. The MAPFRE Group is firmly on the side of car dealers in the UK. As well as supplying a wealth of quality GAP and insurance products backed by reassuring financial strength and an impressive level of expertise, the company has spoken directly to those in charge of the rules and regulations in this area. And that’s been key in recent months as the FCA has been reviewing a wide range of insurance ‘add-ons’ including GAP, which can help boost a dealer’s bottom line as well as prove tremendously valuable to consumers. MAPFRE in the UK is probably best known for its involvement in the worlds of GAP and warranty but there’s far more to the company than that. Car Dealer Magazine recently caught up with deputy managing director David Parrondo, who gave us an insight into the bigger picture – and explained why dealers should have the company very David Parrondo much on their radar when thinking about GAP and warranty provision. MAPFRE operates in 47 countries across five continents. In all, it has a staggering 23 million clients, employs 36,000 people and has a network of more than 68,000 intermediaries across the world. In other words, you could say it’s fairly well established! The MAPFRE Group was founded in Spain in 1933, with international expansion starting to gather pace from 1984 onwards. The acronym MAPFRE has Spanish origins, standing for Mutualidad de Seguros de la Agrupación de Fincas Rústicas de España. Translated literally, this means Mutual Association of Owners of Rural Properties in Spain. Parrondo has been working for the group for 15 years and has worked all over the world in countries such as Argentina, Spain and Italy. He’s been with the UK arm since 2009. ��| CarDealerMag.co.uk

Explaining a little bit about the company’s background in the UK, he said: ‘We established a representative office in the UK 11 years ago and started underwriting GAP for a company called ABRAXAS. We decided to buy the ABRAXAS group to secure the underwriting book and increase our presence in the UK, with the aim of exporting the know-how we gain to other countries. ‘Now, after 10 years, we are underwriting GAP business in more than 20 countries and it’s interesting to note how far we have come in the UK. In 2008, we had 60 employees here; now we have more than 450 members of staff in the UK in MAPFRE ABRAXAS and other business divisions. ‘Dealers in the UK might know us as MAPFRE ABRAXAS, and we acknowledge that, but actually there’s a lot more to the group in terms of our global

presence and local expertise. That’s very much how the business operates.’ Drilling down to the everyday work that the MAPFRE Group does with dealers in the UK, Parrondo told us: ‘MAPFRE ABRAXAS has always been known as a company that specialises in GAP but that’s not all we do. ‘We have international and local know-how to promote, handle and define dealers’ strategy when it comes to additional products such as mechanical and electrical warranties, and ancillary products like tyre and wheel cover, MoT insurance, roadside assistance and so on. ‘Insurance is an important revenue stream for dealers so we try to help and support them so they have a healthy and well-controlled business. ‘We understand that although a dealership will

face to face with the fca on value of gap and other products As A market leader, MAPFRE has been playing a proactive role in relation to the Financial Conduct Authority’s review of insurance ‘add-on’ products including GAP. A team from MAPFRE met the FCA at the organisation’s headquarters in Canary Wharf to discuss the issue. As many readers will know, the recent FCA market study suggested that dealers were effectively taking advantage of customers who were in the throes of buying a car to sign them up to a GAP policy, with the customer in question not really getting much of a chance to shop around. Questions were also raised about the amount of profit that dealerships were making and it

have people who specialise in insurance, their main business is cars. We, of course, specialise in insurance and that’s why our partners trust us to help develop their strategy. ‘This is why we provide a range of different services that range from account management to training and different IT solutions so dealers can control the process and treat customers fairly. ‘We have a very strong proposition for those dealers that have a clear strategy about their general insurance business.’ Of course, any consumer or business faced with making a decision about a product or service they require will focus on price. And this was interesting territory during our chat with Parrondo as it’s clear that MAPFRE has a straightforward position here. He told us: ‘We would never claim to be the cheapest

supplier because we consider that this is not the right strategy for the automotive sector. If insurance is a core part of your business plan, your priority should be to define a strategy to make sure that you will not face risks in the future. That risk could be operational or it could be regulatory. And this is where our expertise lies: to support and work in conjunction with dealers and dealer groups to define this longterm business strategy. ‘The name MAPFRE is synonymous with quality. Our message is that we do not aim to be the cheapest. We could do that but we choose not to. Price is a consideration for dealers when they are selecting a supplier. We appreciate we need to be competitive but the cheapest isn’t always the best.’ One important element of the quality-first approach from MAPFRE is the efficient ‘back-office’

was noted that the online market for GAP was virtually non-existent. Happily, however, David Parrondo and his team were on hand to provide an alternative viewpoint. Parrondo told us: ‘We made it extremely clear that GAP is a very good product providing very good coverage for consumers. And we emphasised that the automotive sector is an ideal channel in which to identify customer needs and create awareness of insurance products – not just GAP but other products too. ‘Dealers invest a lot in the training of their business managers and F&I managers so they can provide advice to customers which you don’t get online. Our support is firmly behind dealers as distributors in this context. They add huge value.’ MAPFRE thinks the market review will be a useful process for car sales businesses of all shapes and sizes – and is, of course, well placed to offer advice and guidance. ‘There is an opportunity for dealers to rethink their strategy and to consider working with the right partner to define a clear plan behind general insurance products, not just GAP,’ said Parrondo.

functionality of the company, with everything under one roof in a one-stop-shop approach. It’s a set-up of which Parrondo is justifiably proud and he explained: ‘We have control of everything. We have underwriters, a claims-management department, administration staff, quality and complaints, legal and compliance – all in one place. ‘When you deal with MAPFRE, you deal with MAPFRE. There aren’t any underwriters that we outsource to, or any third-party administrators.’ Flexibility is also key for the team at MAPFRE. The company can accommodate any particular need that a dealer or consumer has. ‘That’s important and enables us to play a part in all aspects of the market. ‘We’re not only about large franchised dealers and manufacturers. We’ve got something for everyone and our portfolio of clients demonstrates that.’ [CD] CarDealerMag.co.uk | 79

DATA FILE.

Thestatistics n

SMMT Sales Data

Taking Stock

Forecast revised up after the 29th month of growth Seasonal slowdown reported, but the market is still reassuringly buoyant

ew car registration figures rose by 6.6 per cent in July, the latest SMMT figures, reveal. A total of 172,907 cars were registered in the month, bringing the total number of cars registered so far this year to 1,460,172. Faster-than-expected first half-year growth has prompted an upward revision of the 2014 market forecast to 2.45 million registrations, up 8.1 per cent on 2013. Mike Hawes, SMMT chief executive, said: ‘July saw the new car market extend its record period of growth to a 29th month, as confident consumers took advantage of an array of new products and attractive finance deals on the latest fuel-efficient new cars. ‘The continued positivity has led to an uplift in the SMMT full-year forecast to 2.45 million passenger car registrations, a rise of 8.1 per cent. However, the more moderate growth of the last three months shows that overall demand is starting to stabilise.’

Richard Lowe, head of retail and wholesale at Barclays, said: ‘The market is still very buoyant, but as predicted, we’re seeing a seasonal slowdown in the growth of new car sales. ‘This isn’t a bad sign, as the UK market has been performing at record levels, which could have led to supply outstripping demand. ‘Looking ahead, I expect the rate of growth to remain steady for the next few months, as manufacturers maintain pressure on dealers to keep products moving.’ Sue Robinson, director of the National Franchised Dealers Association (NFDA), said: ‘It is extremely encouraging that new car sales continued to improve in July with year-to-date growth now at 10.1 per cent. Dealers are reporting increased footfall in showrooms as consumers are drawn in by new products and services offered by dealers and manufacturers. ‘With such strong manufacturer and finance offers currently available,

dealers are reporting that it is proving much easier to close a sale. ‘However, competitive pricing and strong incentives remain important if the sales trend is to continue throughout 2014.’ John Leeman, operations director for TrustFord, the new name for Ford’s dealer group, said: ’Twenty-nine months of continuous growth for the car sales industry is a remarkable achievement. ‘It is a reflection of the ongoing consumer confidence in the economy, falling inflation rates, wage growth and a national employment increase. What’s more, we have seen a huge effort from across the industry to provide consumers with quality products, great customer service and competitive financial packages. ‘This performance has been mirrored at TrustFord. Across our network of dealerships we have seen a total retail increase of 6.9 per cent year-to-date and a monthly increase of 9.7 per cent.’

Ford’s stylish supermini rises to the top yet again THE Ford Fiesta has once again topped the best-sellers list – this time for the month of July. More than 8,800 units of the stylish supermini were registered in the month – some 2,200 more than the next best-selling car, the Ford Focus (6,013 examples registered). Vauxhall’s Corsa was ranked third ��| CarDealerMag.co.uk

after the company registered nearly 5,500 units, followed by the Golf with 5,135. Nissan saw 4,728 units of its British-built Nissan Qashqai registered – a result that saw the car finish in fifth place in the bestsellers table. The rest of the list was as follows: Vauxhall Astra (4,267), Audi A3 (3,522),

Fiat 500 (3,021), BMW 3 Series (2,625) and Mini (2,384). Meanwhile, the Fiesta also leads the way in the year-to-date chart with 79,007 units registered, the Ford Focus is in second with 50,767 and the top three is rounded off by the Corsa with 47,752.

SMMT sales data July/year to date

Top

Most-improved manufacturers in July Maserati

+705%

+652%

Infiniti

+368%

Mitsubishi +197% S’Yong

+158%

Bottom

Worst-performing manufacturers in July Chevrolet

-99%

Perodua

-77%

Chrysler

-27%

Toyota

-13%

Honda

-10%

Jeep +109.02%

Toyota -12.85% Figures supplied by SMMT

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

July 2014

2014

116 342 50 12,032 120 9,955 2 126 5,179 1,404 4,863 23,647 3,030 5,302 131 1,352 278 6,011 3,722 731 34 161 2,426 8,404 203 0 3,571 1,181 10,455 3 6,845 661 0 4,088 0 4,149 7,588 415 80 165 2,254 5,791 18,756 14,017 3,010 77 180 172,907

% market share 0.07 0.20 0.03 6.96 0.07 5.76 0.00 0.07 3.00 0.81 2.81 13.68 1.75 3.07 0.08 0.78 0.16 3.48 2.15 0.42 0.02 0.09 1.40 4.86 0.12 0.00 2.07 0.68 6.05 0.00 3.96 0.38 0.00 2.36 0.00 2.40 4.39 0.24 0.05 0.10 1.30 3.35 10.85 8.11 1.74 0.04 0.10

July 2013

2013

96 376 45 10,761 131 8,390 701 172 5,732 1,303 4,610 25,597 3,372 4,997 28 1,155 133 6,027 3,459 692 25 20 2,196 7,673 27 0 3,147 397 9,195 13 7,375 731 0 2,319 0 2,929 4,922 342 31 87 1,739 6,645 18,165 14,029 2,274 81 89 162,228

% market share 0.06 0.23 0.03 6.63 0.08 5.17 0.43 0.11 3.53 0.80 2.84 15.78 2.08 3.08 0.02 0.71 0.08 3.72 2.13 0.43 0.02 0.01 1.35 4.73 0.02 0.00 1.94 0.24 5.67 0.01 4.55 0.45 0.00 1.43 0.00 1.81 3.03 0.21 0.02 0.05 1.07 4.10 11.20 8.65 1.40 0.05 0.05

% change 20.83 -9.04 11.11 11.81 -8.40 18.65 -99.71 -26.74 -9.65 7.75 5.49 -7.62 -10.14 6.10 367.86 17.06 109.02 -0.27 7.60 5.64 36.00 705.00 10.47 9.53 651.85 0.00 13.47 197.48 13.70 -76.92 -7.19 -9.58 0.00 76.28 0.00 41.65 54.16 21.35 158.06 89.66 29.61 -12.85 3.25 -0.09 32.37 -4.94 102.25 6.58

2014 905 3,299 532 95,793 930 85,077 2,761 1,210 49,269 14,380 39,733 197,201 32,949 48,034 357 11,178 1,906 46,860 33,741 6,362 129 725 22,313 72,270 1,407 5 24,979 7,181 81,384 25 64,273 5,301 1 36,152 1 31,491 46,764 2,942 818 1,474 21,980 56,855 160,365 124,683 22,860 509 808 1,460,172

Year to date (YTD) % market share 0.06 0.23 0.04 6.56 0.06 5.83 0.19 0.08 3.37 0.98 2.72 13.51 2.26 3.29 0.02 0.77 0.13 3.21 2.31 0.44 0.01 0.05 1.53 4.95 0.10 0.00 1.71 0.49 5.57 0.00 4.40 0.36 0.00 2.48 0.00 2.16 3.20 0.20 0.06 0.10 1.51 3.89 10.98 8.54 1.57 0.03 0.06

2013

807 3,163 575 84,528 727 73,604 7,465 1,551 48,516 8,297 34,033 188,993 33,598 44,132 266 9,813 1,091 43,205 33,579 4,806 122 194 17,838 62,310 156 0 28,467 5,431 70,856 165 63,628 4,632 15 22,354 3 25,681 37,306 3,263 322 1,187 18,859 54,003 150,805 115,346 19,054 503 602 1,325,851

% market share 0.06 0.24 0.04 6.38 0.05 5.55 0.56 0.12 3.66 0.63 2.57 14.25 2.53 3.33 0.02 0.74 0.08 3.26 2.53 0.36 0.01 0.01 1.35 4.70 0.01 0.00 2.15 0.41 5.34 0.01 4.80 0.35 0.00 1.69 0.00 1.94 2.81 0.25 0.02 0.09 1.42 4.07 11.37 8.70 1.44 0.04 0.05

% change 12.14 4.30 -7.48 13.33 27.92 15.59 -63.01 -21.99 1.55 73.32 16.75 4.34 -1.93 8.84 34.21 13.91 74.70 8.46 0.48 32.38 5.74 273.71 25.09 15.98 801.92 0.00 -12.25 32.22 14.86 -84.85 1.01 14.44 -93.33 61.72 -66.67 22.62 25.35 -9.84 154.04 24.18 16.55 5.28 6.34 8.09 19.97 1.19 34.22 10.13

CarDealerMag.co.uk | 81

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

Average prices are ahead by £476 on last year as market remains short of good stock says Simon Henstock, BCA’s UK network operations director

ollowing three consecutive monthly rises, average used car values stalled in June, according to our latest Pulse report. The headline average value of a used car fell from May’s record level of £7,597 to £7,476 in June. Average performance against CAP Clean improved marginally from 96.45 per cent to 96.57 per cent, while average age and mileage were virtually static compared with May. Year-on-year, June 2014 was ahead by £476 or 6.8 per cent, with average age increasing by a month and average mileage falling by around 1,000 miles over the 12-month period. CAP Clean performance was up by more than a point, year-on-year. The summer months typically see some pressure exerted on average values, and 2014 is following the pattern we have seen in previous years. In many ways, the marketplace has not shifted significantly from last month as we remain short of good retailquality stock. Looking at the longer-term trends, average used car values have been rising, largely as a result of an imbalance in supply and demand. As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail-quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession. This has resulted in some significant rises in average value across the used car market, which is highlighted when you look at the longer-term trends. Dealer part-exchange cars sold by BCA in June averaged around 38 per cent more in 2014 than they were in the same month in 2012, while fleet and lease cars are up by 17 per cent over the same timescale. Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace.

June yearon-year ahead

£476

‘Cars presented in the best ready-to-retail condition will typically make values well in excess of guide-price expectations.’ With increasing numbers of buyers choosing to purchase via BCA Live Online, cars presented in the best ready-to-retail condition will typically make values well in excess of guide-price expectations. However, vendors should beware of expecting a similar return for vehicles in poor or below-average condition. There is little to be gained by placing over-aspirational reserve prices on poor-condition cars if the market is not prepared to meet those expectations. These vehicles need to be sold eventually, and simply delaying the inevitable can cost more in the long term. Fleet and lease cars averaged £9,448 in June, a fall of £89 or 0.9 per cent compared with May and the second month running that

Headline average value down to

£7,476

average values have fallen, although performance against CAP rose slightly. Values were up by £588 (6.6 per cent) yearon-year, with CAP Clean performance slightly improved. The retained value against original MRP (manufacturer’s retail price) fell slightly compared with May to 42.32 per cent but was up year-on-year. Following three record months, average dealer part-exchange values fell back by £75 to £3,973 in June, a fall of 1.8 per cent. Year-on-year, values were ahead by £281 (7.6 per cent), with average age continuing to rise and mileage falling % over the year. CAP Clean performance improved compared with May, rising by half a point to 95.66 per cent, and was up by more than a point year-on-year. Nearly-new values fell back by £604 (2.8 per cent) following three consecutive monthly rises. Volumes remain very low and model mix remains the most significant price factor. CAP Clean performance fell back by half a point to 100.27 per cent. [CD]

Average against CAP Clean

96.57

CarDealerMag.co.uk | 83

TAKING STOCK

Buyers’ guide

Kia Sportage

’10-present

We help you choose the best stock for your forecourt. This month, the Kia Sportage is the model in the spotlight What is it? It’s arguably the car that has done the most to change Kia’s image among the public in the UK. While the Cee’d hatchback was the car that began the long road to public acceptance, thanks to it being the first Kia to be graced with the firm’s much-vaunted seven-year warranty, the Sportage was proof that the Koreans understood the desires of European car buyers. And that was as a result of Peter Schreyer. The Sportage was one of the German designer’s first projects, and his appointment marked Kia’s understanding that to get Europeans to buy their cars, Kia needed to get a European to design them. The Sportage was one of the first Kias to be designed from the outset to carry the now-familiar corporate front-end treatment (called Tiger). Sportage arrived in 2010 initially as a ‘First Edition’ – and dealers were deluged with interest. A 16-strong model-line debuted in 2011 with three trim levels: 1, 2 and 3 with four-wheel-drive models badged KX2 and KX3.

What CAN GO WRONG? Since it arrived on the market four years ago, the Sportage has been reliable, with few complaints from owners. It has fared well in customer

PROBLEMS

Generally problem-free, although make sure the recall has been implemented and there are no bodywork dings and dents

��| CarDealerMag.co.uk

satisfaction surveys and has a strong reputation. However, the Sportage was part of a massive recall that hit the company earlier this year. More than 5,787 Sportages were recalled because of a faulty piston within the seat-belt pre-tensioner mechanism, and it affected models built between October 2011 and November 2012. Luckily, no injuries were recorded because of the fault, and it was a simple fix that took between one and two hours. Other than the recall, the Sportage has a good reputation. Dealers should look out for peeling lacquer on the eye-catching (and very desirable) black and polished 18-inch alloys. Meanwhile, some owners have complained about the cruise control not working on some cars fitted with the 1.7-litre diesel engine. Overall, dealers should be trying not to buy a car that has bodywork damage – telltale signs that a Sportage has led a hard life with a family. It goes to say that buying such a car will undoubtedly affect its desirability for the next customer, especially on such a stylish car as the Kia Sportage.

PERFECT SPORTAGE

Mid- to high-spec models with the 1.7-litre diesel and 2WD are the most popular among buyers

What’s the perfect SPORTAGE? Mid- to high-spec models fitted with the 1.7-litre diesel and two-wheel-drive are the most desirable among buyers, as they are packed full of kit and look good thanks to bling features such as 18inch polished alloys. Sat-nav, leather upholstery, electric sunroof and dual climate control are much-sought-after gadgets too. Colour-wise, Sportages look great in bright copper, blue, black and, of course, white. [CD]

UNDER THE BONNET

Three engines: 133bhp 1.6-litre petrol, 114bhp 1.7-litre diesel and a 134bhp 2.0litre diesel

Visit your forecourt? That’s the last thing Kate will do.

Car buying is changing fast. Your customers are making more buying decisions online, resulting in a 41% decline in forecourt visits.* 93% of consumers think of Auto Trader when buying, selling or researching a car ,** so we will make sure it’s your forecourt that Kate visits, not your competitor’s. For buying, selling, marketing or managing. We help you stay one step ahead. *2010 Auto Trader Survey v. 2014 GFK DSS research **HPI Consumer Buying Research, April 2014

CarDealerMag.co.uk | 85

auctions.

Suzuki makes its dealerships more open and transparent. bit.ly/Suzuki-news

Imbalance in supply and demand sees prices rise

Henstock

Average values are up 10 per cent year-on-year as age and mileage fall

Honing our search tool

sed car values climbed by £174 last quarter, according to research from BCA. When comparing the first and second quarters, the results bucked the trend established over the past two years, when Q2 values declined against Q1. Average values were also up by £696, a 10 per cent rise year-on-year. However, while values are rising, both average age and mileage are falling. Simon Henstock, BCA’s UK operations director, said: ‘Average used car values have been rising largely as a result of an imbalance in supply and demand. ‘As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail-quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession. ‘This has resulted in some significant rises in average value across the used car market, which is highlighted when you

look at the longer-term trends.’ Fleet and lease sources have also seen average values rise by £784 over the past 12 months. Quarterly dealer part-exchange values averaged more than £4,000 for the first time on record in Q2 of this year and were up by £334 compared with a year ago. However, compared with 2012, values have risen by £1,158, equivalent to a 40.7 per cent rise in just 24 months. And Henstock added: ‘Dealer partexchange cars sold by BCA are averaging 40 per cent more in 2014 than they were in the same period in 2012, while fleet and lease cars are up by 21 per cent over the same timescale. ‘Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace.’

Stocking plan is offered as a new way to pay ASTON Barclay has teamed up with NextGear Capital to offer customers in its auction halls and on Aston Barclay Live a new way to pay for vehicles. The NextGear Capital Stocking Plan is cost-effective, flexible and easy to manage, and can help buyers to increase, upgrade and diversify their stock, as well as improve cash flow. The system, developed for Car dealer cowboy ads 28/8/13 used vehicle dealers, is available for

auction stations

auction purchases, trade deals and part-exchange. Barry Watts, group operations director, said: ‘We’re pleased to be partnering with NextGear Capital to offer our customers access to a stocking plan that could help them to stock more and sell more.’ Dealers can apply online at www. nextgearcapital.co.uk and can choose to pay using a stocking plan at all branches 15:49 Page 1 of Aston Barclay.

No cowboys. Just Just trade trade professionals. professionals.

ith an improving economy and greater demand from motorists to change their existing vehicle, stock location is a key issue for retail used car dealers. Supplies of good, retail-quality cars in the wholesale sector are still relatively limited – a legacy of the lower new car sales following the onset of the recession – and finding and securing the right vehicles to meet demand is critical. With BCA selling more than a million vehicles annually choice isn’t an issue, but it was apparent the sheer amount of stock available was in itself becoming a barrier to effective stock location for our customers. Customer research revealed that some professional buyers were spending increasing amounts of time preparing for the next day’s business with BCA. In January 2014, we launched a rolling project to make the BCA search function the best in class and sector, utilising free text search capabilities as used by Google and drawing on best practice and design. Using an advanced search tech called Solr, BCA Search is developed in-house, allowing rapid progress with updated iterations going live frequently. The latest release features a consumer-styled user interface with mileage sliders, date calendars and a dynamic make/model selector, with instant updating of results as customers search. Each iteration includes a feedback button for user comments, meaning BCA Search is designed with customers, rather than just with customers in mind. This feedback and our own analysis tell us that the new BCA Search is delivering results. The ongoing build process will see BCA Search introduce a wider range of criteria, including colour, specification and trim.

‘It was apparent the sheer amount of stock was becoming a barrier.’

Who is Simon Henstock?

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

Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com

��| CarDealerMag.co.uk

Tonightâ&#x20AC;&#x2122;s good for Olivia. What about you?

With 67% of Auto Trader users preferring to search through your stock between 6 - 9pm* you need to make sure youâ&#x20AC;&#x2122;re geared up to respond to buyers as effectively as you would during working hours. Our unique insight can help you understand how to deliver a great user experience no matter what device your buyers are using, no matter when they are searching. For buying, selling, marketing or managing. We help you stay one step ahead. *Auto Trader car buying interactions survey, January 2014

CarDealerMag.co.uk | 87

TRADER TALK.

..in association with AutoTrader

Gearing up to capture millennial generation Present your wares to as many buyers as you can, and make it as simple and straightforward as possible for them to get involved – even in the dead of night

ave you heard the latest buzzword being used to define the most technologically sophisticated generation in human history? ‘Millennial’ – strictly speaking an adjective relating to a period of 1,000 years – is regularly used as a tag in the media to define a generation of consumers ‘growing up bathed in bits’, as author Don Tapscott put it in his book Growing Up Digital. Those of you with children will understand. You will have seen how readily youngsters who have barely learnt to walk embrace an iPad, gaming device or (their parents’) smartphones. For them, this is the norm. And the rest of us had better get used to it.

Of course, most of us have done precisely that. We too have been seduced by the speed and ease with which an iPhone or iPad can deliver a localised weather forecast, a new Gucci handbag or a BBC news report, all at our fingertips and in the dead of night if required. The seduction is no different for car buyers. And those who question this statement need only look at their own patterns of buying behaviour, as well as the joy with which most car transactions are completed, to argue themselves out of the 20th century. A significant shift towards mobile use shouldn’t surprise us, but the pace of change in the past few years has probably been more significant than most people had forecast,

thanks to the proliferation of smartphone ownership and cheaper tablet devices. The latest figures show that of more than 160 million Auto Trader searches made in June, 63 per cent of traffic came to the site via a mobile or tablet, up from 53 per cent a year earlier. That’s quite an increase. Of the total non-desktop searches, 20 per cent were made on tablet and 43 per cent via a mobile phone. The lion’s share of tablet traffic (85 per cent) came from Apple iPad users, while the overall rise in tablet use took the figure up from 16 per cent market share last year. What does this tell us? Well, two things: one that relates to automotive as an industry and one that should act as a clarion call for today’s digital dealers. In the context of internet use generally, automotive is blazing a trail. In March, Google predicted that mobile

‘A mobile-optimised site isn’t just a nice-to-do; it’s an absolute imperative.’ searches would outstrip desktop in December. But for Auto Trader this so-called mobile tipping point took place in May 2013, 20 months earlier. Secondly, and forgive the dreadful pun, these latest figures should really mobilise you into action. For they show that a mobile-optimised site isn’t just a nice-to-do; it’s an absolute imperative to capture Generation M – another of those annoyingly snappy media tags. If consumers are using their mobiles to search, then it stands to reason that a mobile-optimised site is what you need to present the goods in your shop window to as many buyers as possible, in a format that works for them. Of course, successful selling is just one of the pillars of any profitable automotive business, complementing buying, managing and marketing. But standing out from the crowd in an increasingly crowded market place should be a fundamental goal. And a fully-optimised website should be the starting point.

Who is Nick King?

Nick is market research director of Auto Trader, the UK’s number one digital market place for new and used cars. Visit autotrader.co.uk ��| CarDealerMag.co.uk

Jason’s looking for a car – no smoke, no mirrors.

Today’s car buyers are savvy, with high expectations and the luxury of choice. 71% of buyers will use your website* in their decision making process and they want to see a true and accurate picture of your business and your stock. Our unique research into buyer behaviour means we understand what works for your customers, and what you need to succeed in an ever-changing market. For buying, selling, marketing or managing. We help you stay one step ahead. *GFK Dealership Sourcing Studies July 2014

CarDealerMag.co.uk | 89

MARKET INSIGHT.

..in association with ASE-global.com

Positive earnings results are having a knock-on effect – but the City is still feeling nervous Pendragon and Vertu values increase, but can the level of dealer profitability be sustained?

he last few months have seen the new car registration figures continue to climb but the City remains nervous over the sustainability of both the market and dealer profits. This left share prices languishing, particularly for Pendragon and Vertu. There has been a raft of earnings announcements produced during the past month and these do appear to be making an impact on sentiment. In addition, the recent increase in the SMMT annual new car registration forecast to 2.45 million, the largest in 10 years, will help cement this momentum. During the month we have seen significant gains in Pendragon and Vertu, the two shares which had slipped significantly below their opening position for the year. After significant gains last month Cambria has settled down as have the other shares which were significantly ahead of their start values in 2014. Financial performance As expected there were a number of dealer group announcements during the month. Pendragon released their results for the first half of the year, with a practical doubling in their pre-tax profits compared to the first six months of 2013. This growth was attributed to strong performance across the board, with the group also commenting on increased internet activity driving performance. Inchcape also released their half-year results up by more than 10 per cent compared to the prior year, an outperformance which

Share price movement from January 1 to July 4 2014

Share price movement from January 1 to August 6 2014

Pendragon

87.6%

94.7%

Vertu

89.5%

98.3%

Lookers

114.3%

108.6%

Inchcape

106.8%

105.8%

Cambria

107.0%

106.0%

Caffyns

110.2%

107.4%

was more than halved as a result of currency fluctuations. Whilst results were strong, the company also announced a new £100 million share buy-back programme over the next 12 months. Vertu issued a trading update for the first four months of their trading year, detailing that they expect the results for the year to February 2015 will be ahead of current market expectations. The company also announced that Peter Jones will join to replace Paul Williams as chairman from January 2015. Caffyns released a brief interim management update at their AGM with volumes up on the prior year. Lookers are scheduled to announce their half-year results during August, and we would expect these to follow the recent trend and significantly outperform the prior year.

Transactional activity On the whole, a quiet period, with little activity which is not surprising during the holiday season. The most noticeable transaction in the last month for these groups has been the quick disposal of the Hadley Green businesses in Barnet from Lookers to Cambria. Hadley Green represents Jaguar and Land Rover, and formed part of the Colborne deal that Lookers negotiated earlier in the year. The transaction was on a trade and assets basis with consideration of just over £10 million. This is Cambria’s first Land Rover dealership and strengthens their Jaguar representation points to six. The news surrounding the opportunity has obviously not done their share price any harm, as the market associates the value of the JLR businesses with their current and future product line-up. In its half-year earnings statement, Pendragon announced that they are once more on the acquisition trail and are looking to progress their ‘geographical footprint expansion, to optimise our national coverage’ so we can expect to see Evans Halshaw and Stratstone dealerships cropping up in further-flung parts of the UK. Acquisition activity is still prevalent in the sector; however the more recent events have been instigated by the larger, but unlisted dealer groups. Recent examples include Marshall and Helston Garages, who are able to fund the acquisitions out of funds raised without shareholder intervention. We expect the listed companies to become more active over the second six months of 2014. Broker forecasts / Directors’ holdings There were no categorical changes to broker forecasts during the month, with the majority of the stocks still rated as a buy. The sentiment around Caffyns and Inchcape has however softened, with some analysis predicting little short-term grown potential. Additional share issues and options were granted to a number of directors at Lookers, reinforcing their own sentiment on the ‘value’ attached to the shares given recent listed price performance. There was also a round of share purchasing amongst directors at Vertu, with Peter Jones buying 500,000 shares to open his account with his future company.

Who is Mike Jones? He’s the chairman of dealer profitability specialist ASE plc. You can read ASE’s column here every month ��| CarDealerMag.co.uk

By the time you meet Ben and Emma, theyâ&#x20AC;&#x2122;ve virtually decided.

65% of car buyers will choose to buy from a dealer based on price.* Yet latest Auto Trader data reveals 31% of used cars on sale for more than 60 days havenâ&#x20AC;&#x2122;t had a price change since the first day they were listed.* * So, regularly reviewing and accurately re-pricing your stock will help drive success in an increasingly competitive market place. For buying, selling, marketing or managing. We help you stay one step ahead. *GFK Dealership Sourcing Studies July 2014 **Auto Trader advertised stock data June 2014

CarDealerMag.co.uk | 91

data file.

James Litton

Trader tales

DVLA must be able to process transfers faster

responded to a tweet from Batch, in which he asked for questions to pose to the chief executive of the DVLA, whom he was about to interview for a feature for this edition of Car Dealer magazine (it appears on pages 20-23). ‘When will cherished transfers become automated?’ was my immediate question. This tweet was soon piggy-backed by the good people at Stan Palmer Honda, who share my frustration over the issue. No external supplier to our business causes me more aggravation than the DVLA. Some would argue that the DVLA is a public service and therefore exempt from the criticisms that you would have of a bodyshop, or IT supplier, but I disagree. A quick trip to the DVLA auction website tells me there are eight auctions this year, in addition to the thousands of cherished numbers marketed online as we speak. These plates are not cheap and, in my opinion, as soon as a public entity becomes commercial in this way, it is accountable for the service it provides. We are not the customer in this regard, but like many dealerships, we offer to assist customers with the administration of their number plates, partly because of our own selfish need to retain V5s, but also as it is more or less expected of us. When, therefore, it takes weeks to process transfer paperwork at Swansea, we assume proxy responsibility and the customer then starts complaining to us about the service we are providing. This is not acceptable, but you cannot tell a customer this, as it looks like we are passing the buck. You cannot tell me that in a time when the DVLA knows if a car is insured, taxed and has an MoT it is not possible for a customer or dealer to enter some individual numbers into a secure website to complete an instant transfer of a registration number. A fee of £105 for a retention, or £80 for a transfer, offers no value to anyone other than the DVLA, but I for one would be happy to pay it if we had no further customer issues. On the spot: DVLA chief, p20

‘I would be happy to pay a fee if we had no further customer issues.’

What do you think? Share your views on our brand-new forum – it’s easy to sign up. Type cardealermagazine.co.uk/forum into a web browser to get commenting.

Who is James Litton?

James is sales manager at Mercedes-Benz of Taunton. He always has something to say about the industry he loves. ��| CarDealerMag.co.uk

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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

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Supagard

National Car Cleaning Company

Carfleet Wholesale Ltd

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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.

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Something fishy that caused a right stink...

’ve been reading these confessions for about two years now, and they have given me lots of inspiration for my own pranks at work. One that I liked was a chap who put a salmon (or some sort of fish) in the suspended ceiling of his old showroom before leaving for his new job. So, it came to my last day at an independent dealer, and I found myself in a similar position: I was about to move on to the franchised world and was very much looking forward to the challenge ahead. Although I’d had some good times at the independent place, I’d never really seen eye-to-eye with the guys there so I thought I’d do the same as a leaving present. What would make it worse was the fact that I knew that the boss, who I found to be a particularly disagreeable character, hated fish with a passion. Anyway, on my final day I got in early, put four fish in the suspended ceiling and one on the top of the wardrobe in the sales office. They were big old rainbow trout and smelled pretty bad already. The day went by with only a few people asking what the smell was. But other than that, it was quite normal. Anyway, I left and went on to my new job. A couple of weeks later, I met up for a pint with the one guy I got on with from my old place. He proceeded to tell me all about how they had been infested with rats, mice and even cats at the dealership. ‘Oh really?’ I said. ‘Yeah, the place stank!’ he exclaimed. ‘In the ceiling there were four dead cats, about 10 rats and a handful of mice. Not to mention a swarm of flies hanging around the place. In the end, we had to replace 23 ceiling tiles, three sections of carpet, a wardrobe and redecorate the sales office. It cost us £3,000!’ ‘Oh dear, what caused that then?’ I asked as innocently as I could. ‘They have no idea, probably the hot weather or something,’ he said. Now, my confession is not only to my old colleagues for the disruption, but to the owners of the cats that went missing. I am truly sorry for your loss. Even though I actually hate cats, I never meant for that to happen!

‘They were big old rainbow trout and smelled pretty bad already.’

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.

Want to be included in this section? Call (023) 9252 2434

Lookers helps customers see under the bonnet Volkswagen dealerships launch video health check to allow motorists to make better informed decisions before agreeing to work

north-east motor group is the first in the region to use a cutting-edge communicationstechnology system to deliver good, old-fashioned customer service. Lookers Volkswagen – which has dealerships in Middlesbrough, Darlington and Northallerton – has launched an innovative video health check for all vehicles brought into its service workshops. The aim of the service is to enable customers to see exactly what the technician in the workshop sees and be able to authorise any work that needs to be done — all via email. Simon Horabin, franchise director for Lookers Volkswagen North East,

said: ‘This visual inspection of critical components such as tyres and brakes ensures all our customers stay safe and their vehicles are fully maintained. ‘Now we have launched a video analysis service, unique to this region, which allows the customer to actually watch the technician at work and let us know with the click of a button on their smartphone or computer if we can go ahead with any work that needs doing. ‘We piloted the system and got fantastic feedback from customers. It lets them make an informed decision about whether any work needs to be done, immediately or at a later date.

‘The technicians enjoy demonstrating their knowledge and expertise to the customer. And we are able to interact directly with our customers again, just like in the old days.’ The new service sends a message to the customer to let them know when their video analysis is ready to view. In the film, a Lookers Volkswagen technician introduces himself and talks the customer through the checklist, pointing out anything critical or congratulating the customer on how well they have maintained the vehicle. If any work is required, the system software shows the cost and enables the customer to authorise the work remotely.

servicing

Hyundai adds online booking HYUNDAI has launched an online service-booking facility across its network of 178 UK dealers and authorised repair centres. Now customers can book a routine service or repair at any Hyundai dealer using registration number recognition technology, minimising customer data input. Users choose a date and time and are offered a collection and delivery service. Tony Whitehorn, president and CEO, Hyundai Motor UK, pictured, said: ‘We saw more than 150 bookings in the first three weeks after the system went live. The majority were placed outside normal dealership opening hours.’

Reach new heights... ...with a career at Vertu Motors ONLY THE BEST NEED APPLY... We are an independent family run motor group based in Oxfordshire with over 100 years of proud trading and are seeking the following;

SALES MANAGER to drive, develop and improve our already successful business and sales team, responsible for 2 franchises. In addition, we are also recruiting

SALES PEOPLE

who know how to sell and have the right training in a competitive market place. These are fantastic opportunities for the right candidates and be part of this sleeping giants developments. The package on offer for these positions reflect this. In the first instance please email your current CV to jeremy@humphrisoxford.co.uk

Oxford

“Serving you since 1910”

www.humphrisoxford.co.uk ��| CarDealerMag.co.uk

Welcome to Vertu Motors PLC, the largest growing motor retailer in the UK Whether you’re starting your career or changing jobs, it is important that you apply to join a company that is right for you, one that shares your values, will appreciate your work ethic and reward your achievements. It is not that different from buying a car. Get it right and you’ll feel good every time you make a journey. Get it wrong, however, and you’ll never feel satisfied. Choosing an employer is similar but, considering how much time we spend at work, it is far more important to get that choice right. After all, this is a decision that will literally change the course of your life. You need to know, however, that we are equally choosey when deciding who will make this journey with us. You would expect no less.

To apply or to explore all our exciting career opportunities, visit...

www.vertucareers.com

the fleet.

LATEST FROM THE FLEET... New arrival:

AudiA3 Sportback After a seven-month wait, the editor describes the packed-to-the-gunwales new baby

ou may (quite rightly) think we journos have a lovely time of it. I mean, we can pick up the phone to any manufacturer, ask for a car and it’s delivered clean, with a full tank of fuel and normally by a man called Gary with BO problems. We then pile 500 miles on to the odometer, eat 14 McDonald’s in it and hand it back in a similar state to a car that has completed the Wales Rally GB. In return, we say some words about it and then move on to the next victim. Well, this won’t be happening with this particular test car. Why? Well, I’ve been waiting since the beginning of January for the Germans to get round to building it and I’m going to look after it with all the care and attention that I’d devote to my own newborn. Once I got the go-ahead from Audi that we could run a 2.0-litre TDI Sportback as a longtermer, so began the hours and hours on the Audi Configurator – all during my time in the office I must add. The bodystyle and engine had already been chosen, but it was up to me to select the rest – and it really wasn’t as easy as you think. Did I

want stylish SE or sporty S line? Easy – it was the latter. Did I want the standard alloys? Yes – they’re quite nice. But then it came to the options... I wanted bright, eye-splitting red, but the only shade that matched my requirements was ‘Misano pearl effect’. No matter, but it’s £525. If you’re having red, the contrast ‘black styling package’ completes the look nicely and consists of a black framed grille and no chrome window surrounds. That’s £395. That doesn’t include the smart black roof rails either – a further £250 to the order. Obviously I wanted upgraded media so

the knowledge Model: Audi A3 Sportback S line 2.0 TDI 6-speed manual Price: £31,130 (as tested) Engine: 2.0-litre turbocharged diesel Power: 182bhp, 380Nm Max speed: 145mph 0-60mph: 7.2s Emissions: 110g/km Mileage this month: 765 This month’s highlight It finally turning up after a seven-month wait!

that when I cruised along the motorway in the outside lane, pressurising other drivers off the road, I wanted a proper media system that allowed me to change everything from the smart pop-up screen. And obviously I wanted the knob that adjusted all the features to be touch-sensitive – like any man would. That was £1,495. And naturally I wanted there to be banging stereo, so the Bang & Olufsen sound system had to be fitted, even if it did cost £750. And there are cool strip lights on the speakers that light up at night too, which means my coolness quotient just increased to gargantuan levels. Rear parking sensors and cruise control were added as well – another combined £570. Standard price for a Sportback S line 2.0-TDI is £26,500 – ours is £31,130. What with waiting for seven months for the car as well, I know just what it’s like to be a rich A3 owner. The only good thing about this whole situation was that a nice man who was called Jeff and had impeccable personal hygiene delivered the car. James Batchelor (@JRRBatchelor)

CarDealerMag.co.uk | 95

the fleet.

LATEST FROM THE FLEET... Third report:

Fourth report:

Fifth report:

MitsubishiL200

SeatLeon Cupra 280 Peugeot3008

The fleet’s pick-up is treated to a family break in Cornwall

Batch does some serious back- ...and in other news, Dave finds to-back road testing for once... the windscreen washer bottle

CORNWALL is one of my favourite places in the UK, but it’s fair to say that when they made all those narrow, winding roads they didn’t have the L200 in mind. As we headed to the coast for the weekend, The Beast, as the Mitsubishi has affectionately become known at Car Dealer Towers, was beginning to seem like a bad choice. True, there’s easily enough room in the back for plenty of luggage (and my wife likes to travel with a lot of luggage) but the prospect of having to reverse 100 metres to let an oncoming tractor come past wasn’t appealing. Fortunately, every bit of traffic I met was lower in the food chain than the L200 and they all got out of the way. And that’s one of the things I like about driving this machine: other people get out of your way. The L200 might not be ideally suited to my lifestyle but I really enjoy getting behind the wheel. There’s plenty of space inside the double cab, while the steering and electronic traction control make it a decent drive. And the integrated sat nav and DAB audio system together with reversing camera and Bluetooth mean it’s got all the goodies you’d want. The pick-up market has seen major growth in the past 10 years and it’s easy to see why the L200, which is such an important vehicle to Mitsubishi, has been at the forefront of this.

IF you haven’t noticed that our long-term Cupra 280 five-door hatch is a firm favourite of all those at Car Dealer, then you really haven’t been paying attention. It’s fair to say that, apart from the Volvo XC70, no other car has earned such affection. But the car we have is the highest spec, loudest and lairiest version. Seat told me this month there is so much more to the Cupra range than this hairy-chested brute. Step forward this car’s more polite and socially acceptable brother – the Cupra 265. Yes, by those very numbers, it’s clear to see the 265 has 15 less brake horse power. And the car that arrived on a hot Monday morning was a three-door with a sixspeed manual gearbox. And it couldn’t have been any more different from our white charger. While our Cupra sometimes feels far too fast and accomplished, the 265 is a more pleasant and rewarding car to drive. You can press on through corners a little more and it’s far more grippy. Couple this with a manual shifter and the Cupra 265 delivers driving thrills the 280 can only dream of. While our white Cupra is fun in an impressive way, the simpler 265 is more traditional in the way it serves up the spoils. It’s just a shame it lacks the visual clout of the 280 – it’s bereft of massive brakes, snazzy wheels and subtle meanness the 280 pulls off so well.

Gareth Bethell (@garethbethell)

James Batchelor (@JRRBatchelor)

the knowledge Model: Mitsubishi L200 Barbarian Double Cab Price: £28,798 (as tested) Engine: 2.5-litre diesel Power: 175bhp, 350Nm Max speed: 109mph 0-60mph: 13s Emissions: 233g/km Mileage this month: 1,191 This month’s highlight In black, the L200 is a mean steed. So mean in fact that other drivers simply get out of the way ��| CarDealerMag.co.uk

the knowledge Model: Seat Leon Cupra 280 Price: £30,735 (as tested) Engine: 2.0-litre turbocharged petrol Power: 276bhp, 350Nm Max speed: 155mph 0-60mph: 5.7s Emissions: 149g/km Mileage this month: 2,148 This month’s highlight Knowing that the 280 is still top dog, and that while it’s not as fun as a 265, it’s the better car

IT’S the little things that make the motoring experience a pleasure or a pain. Performing a small but vital task on the Peugeot 3008 recently, it struck me that a lot of thought really has gone into the smallest things when it comes to making life as hassle-free as possible for drivers. The windscreen washer needed a top-up and I was pleased to find that this was incredibly easy, simply because there was plenty of space in which to ‘operate’. It was simple and straightforward to position a huge bottle of washer fluid and pour away, because the tube isn’t wedged in between several other components or positioned too close to the edge of the engine compartment. In other Peugeot-based news this month, unfortunately, the windscreen, although obviously nice and clean now, was chipped by a flying stone the other day. The chip then became a crack, annoyingly. And I have attracted a couple of fines for overstaying my welcome in service station car parks, after stopping for naps during spells of night-time driving. One I successfully appealed against, the other I had to pay, meaning the Brown family finances took a £60 hit because of my doziness. Just as well windscreen washer fluid isn’t that expensive then...

Dave Brown (@CarDealerDave)

the knowledge Model: Peugeot 3008 Allure HDi 115 Price: £23,095 (as tested) Engine: 1.6-litre, turbocharged diesel Power: 115bhp, 270Nm Max speed: 112mph 0-60mph: 13.4s Emissions: 127g/km Mileage this month: 541 This month’s highlight Filling up the washer fluid was a painless experience. It’s the little things in life . . .

longtermers

Eighth report:

Eleventh report:

Final report:

VolvoXC70

KiaCarens

NissanQashqai

Dave also finds time to enjoy the unique delights of the XC

Big MPV has become the motorway cruiser of choice

Our Mal bids a fond farewell to a Car Dealer favourite

SADLY, no-one on the team can hold on to the keys to a long-termer for week after week – we all have to experience the delights and dramas of living with the cars on our fleet. And so it was with much regret that I had to hand over the keys to the 3008 for a weekend this month to a colleague. But as a consolation the trusty XC70 was left in my care for a whole two days. I’ve had experience with the big Volvo before, but it was lovely to be back behind the wheel. The estate was thrown straight into Brown household duties with a trip to the tip to get rid of some garden rubbish (hedges do grow quickly at this time of year, don’t they? And don’t me started on trimming the grass out the front of our house – or front garden as the missus calls it), before being pointed northwards to London. On the journey to the capital, the Volvo rises head and shoulders above my... sorry... Car Dealer’s 3008. It cruises with great alacrity, and the powerful diesel lump is just a distant thrum from inside the luxurious cabin. But once in the city, the good news stops. The XC70 is just a bit too unwieldy to be enjoyable. But clogged city streets aren’t really the XC’s natural territory, are they? It’s far more suited to the roads around where Batch lives. Still, at least the XC70 has an automatic gearbox – and a good one at that. Another thumbs-up from me.

The big white Carens has taken up the position of being the motorway-muncher this month. It’s a very special title to hold and is a compliment to the Caren’s abilities – or so I’m told. I was the individual who has spent the most amount of time in our trusty MPV this month. I’ve used it for a number of trips to launches and events up and down the country – and it hasn’t missed a beat. The secret to my favourable review this month has to be the seats. While they’re trimmed in (very) soft black leather and heated like most other cars, they offer so much comfort it’s unbelievable. Admittedly, the driver’s seat comes with a little electric button that, when pressed, extends a bit of the seat to support the driver’s lower legs and backs of the knees. To be perfectly honest, it makes very little difference and is quite pointless. In most other cars, this features works well, but in the Kia they just don’t, Having said that, it’s easy to get a good driving position behind the wheel, and thanks to a vast glass area that extends beyond the wing mirrors it’s easy to park and position on the road. It also makes for a nice light and airy cabin. One massive gripe I have though is the multimedia screen. The graphics and colours are too old-school – this really needs to be updated.

AFTER many months and thousands of miles we’ve finally said a fond farewell to our Nissan Qashqai 360. Over the course of its time with us, the big-selling British-built model became a firm favourite with every member of the team. This popularity was largely thanks to the Qashqai being the consummate all-rounder. It was comfortable and well-equipped enough to make long journeys a pleasure, spacious enough to carry any gear we may have been transporting and so fuel-efficient one would always stay on the right side of Car Dealer’s very own expenses police. And despite being the old-shape Qashqai, it was a very good-looking car too. Importantly, the Qashqai was also incredibly reliable, completing its tour of service without so much as a hiccup, in spite of the pounding it took as the workhorse of the Car Dealer fleet. The build quality of the model also shone throughout its time with us. No squeaks, rattles or gaps developed, and all the trim still looked fresh as a daisy when we handed back the keys. I for one am going to miss this car and, as a result, the next time I’m in the market for a family motor, the Qashqai will be very high on my shopping list. There are very few cars on used car lots that do everything the Qashqai can do as well as the Qashqai can do them for anywhere near the price. [CD]

Danielle Bagnall (@DanniBagnall)

Mal Hay (@MalcolmHay)

Dave Brown (@CarDealerDave)

the knowledge 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: 2,004 This month’s highlight It fits so well with the Brown way of life. But it’s no Peugeot 3008

the knowledge Model: Kia Carens ‘3’ 1.7 CRDi 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: 2,145 This month’s highlight Piloting the Carens up north – it really isn’t as unpleasant as you think

the knowledge 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: 2,101 This month’s highlight There’s no highlight – Nissan, please give us a brand-new Qashqai CarDealerMag.co.uk | 97

data fiLe.

It’s vital to make the most of contact you have with a customer

ometimes I find it all too easy to become disillusioned with some of the poor sales practices and techniques that exist in the world today. Extreme examples are so overtly obvious to the customer that it’s easy to tell when a salesperson’s only interest is in hearing the word ‘yes’ to enact a purchase with little regard for the customer’s personal circumstances. No doubt in many cases there is an in-house sales procedure, combined with numerous ‘tricks’ picked up over the years to enable sales personnel to close as many deals as possible – but undoubtedly, this gives the sales arena many negative connotations to potential customers, particularly those who have had bad experiences. Experiencing good sales practice appears not to happen that often. However, it DOES happen ( I truly believe there are some excellent sales people out there! ) and certainly makes the buying experience far more enjoyable, which in turn means that as a customer you inform people about it and are more inclined to return for future purchases. The majority of your customers will now source you through the internet, the first port of call being via either an e-mail or telephone call from a prospective buyer asking you about a particular vehicle you have advertised that they are interested in. This is where the good behaviour on your part needs to commence! Unfortunately for you, the opportunity to make a good impact on the customer is limited, which, combined with the fierce competition for each customer, means you have got to ensure that your sales process and the techniques that you execute are the most effective and bespoke (where

Jonathan

Such TIME IS MONEY

possible) to the individual people you deal with. As mentioned in a previous article, I have been scanning the market for a vehicle for my wife, and having located one from the many portals advertising cars I contacted the dealership via phone for further information. Upon speaking to the salesperson, she took my contact details (crucial) and then arranged to get a value on my part-exchange while agreeing a time to call me back to discuss the next steps. Within 20 minutes of putting the phone down, I had an e-mail from the dealership plus a video attachment, an introduction of ‘Hello Jonathan, I am just going to

‘Unfortunately, the opportunity to make a good impact is limited’ show you around the car you have made inquiries about’, followed by a three-minute personal tour of the vehicle, showing me the key features. I was very impressed. This is just one example of tailoring what you can do once you have contact with a customer that is not only a little different, but may also make a difference between the application proceeding to the next stage or the customer returning to the portal and selecting another car they were interested in from one of your competitors. Sanity-checking what you do, making the most of the contact opportunities you get and trying different ways to engage with the customer may just be what is required to optimise your leads and turn them into sales.

Who is Jonathan Such? Such is head of sales 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

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