Car Dealer Magazine: Issue 83

INSIDE: land rover’s new discovery sport – is it any good?

Business Publication of the Year

Issue 83 | February 2015 | CarDealerMag.co.uk | £3.50

scooby two the impreza story – and how the new subaru compares to the iconic versions

PLUS: the success of captain caralot’s team inside:

the auto

influencers what the industry leaders believe the future holds...

awards: our search for the very best of the best

SMALL CHANGES. BIG IMPACT.

Driving You New Business From Your Declines We are pleased to announce the launch of our updated product offering which will help increase the range and volume of cars we are now able to finance. We have kept the changes simple to ensure maximum impact and ease for our dealers.

Increased loan amount up to £10,000 Maximum term length of 48 months.

Decision in 30 minutes Repeat Business for You Step by Step Guidance Simple Application System Industry Leading Ethical and Responsible Lending

To find out more call us on 02392 448 500 or visit www.thecarfinancecompany.co.uk 2nd in The Sunday Times Fast Track Top 100 2014 02 | CarDealerMag.co.uk

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IGNITION.

EDITORIAL EDITOR Colin Channon

colin@blackballmedia.co.uk Twitter: @colinchannon

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, Daljinder Nagra, Chris Lloyd, Becca Chaplin, Nigel Swan, Stephen Hall, Sophie WilliamsonStothert, Jonathan Fleetwood

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eight weeks in and Welcome. Well, I’m still here. So things can’t

have gone too badly as I’m finding my feet (what is it about being able to fool all of the people all of the time? Or have I got that sightly wrong...?). It’s been a second month of meeting some very interesting people, too.

Before Christmas the great and the good (and me, that’s my rapidly-balding head in the picture above) met at the RAC Club for our Automotive Influencers feature. Not many people get the chance to chat over a cup of tea to several of the people shaping the industry, so I had a ball.

You can read their views in the feature which starts on Page 66, so I won’t give anything away here. Suffice to say that on the back of 2014’s marvellous sales results, most people are cautiously optimistic about the year ahead.

And there are loads of new-car launches coming up which should stimulate plenty of interest. And what a place that RAC Club is. Talk about posh. Glad I left my grey cardigan at the office and wore my best whistle and flute, because the surroundings were so grand I thought I’d turned up at a Downton Abbey shoot. Our thanks to the RAC Club for letting us have their fabulous premises for the morning.

I also spent some time talking to Jamie Caple, one half of the partnership behind the Caralot success story. If you met them at our Used Car Awards, you’d reckon they’re as nutty as a fruit cake. But don’t be fooled – they’re very focused and they know what they’re doing. Read about them from page 38 – theirs is quite a story.

I also popped into Rolls-Royce (as you do) on the day they announced record-breaking sales. As you’d expect from the super-luxury brand, the biscuits they provided were first class (if the wife is reading this, the new-year diet is intact and I never took one. If she’s not reading this, they were lovely...)

After the interview (see page 24 for that) I was asked if I’d ever driven a Wraith. Err, I’m just a local hack, and

you won’t get much change out of £300,000 for the newest Roller on the Goodwood production line, so what do you think the answer to that was? There just happened to be one outside the main door. Hop in, they said, and take it for a spin. Come back when you’re ready...

I didn’t need asking twice. What a car. And before you ask, I never once went over the speed limit. The boys in blue would love to pull over a brand-spanking new Roller, I’m sure. And one driven by a journalist? A new-year double whammy...

COME ON, TELL US WHAT YOU THINK It’s that time of year again for the launch of our Car Dealer Power Awards. They’re the awards linked to the most comprehensive survey in the motor retail survey. We ask loads of questions about manufacturers and suppliers, and you provide the answers. We usually get bucketloads of replies, meaning the awards are pretty significant and are really worth winning. See Page 32 for details. The awards night will be something special, I’m sure.

GOT A STORY WORTH TELLING? Thanks to those people who have been in touch with me.

As I said last month, I need to know what you’d like to see in this magazine. What issues should we be investigating?

Who should we be interviewing? Have you got a good story you’d like to share? I want to get even more dealers into these pages – it’s called Car Dealer magazine for a reason!

– so please let me know if you have a story worth telling.

Email me at colin@blackballmedia.co.uk or, if you can fit stuff like that into 140 characters, tweet me @colinchannon Hope you enjoy the issue.

Colin Channon, editor

WINNER

CAR DEALER MAGAZINE Best Business Publication CarDealerMag.co.uk | 03

04 | CarDealerMag.co.uk

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

INSIDE. ISSUE 83 I FEBRUARY 2015

Dashboard Feedback Car Dealer Club

14

Subaru investigation

Highs and lows of rally star It was a car that defined a brand. But the Subaru Impreza has had its ups and downs over the years. James Baggott investigates.

Car Dealer Power launch Behind the scenes at Caralot Kia: From the USA to England Big Mike Baggott Trading Up Real Deals

108

Auto Trader sets out its stall for the next 12 months.

66

Automotive Influencers: What does 2015 hold?

62

‘‘

Forecourt We put the Land Rover Discovery Sport to the test.

I want to see the Ford Capri return.

I don’t want a Probe.

Or a Cougar.

5 7

James Baggott

Land Rover Discovery Sport Citroen DS4

Features Automotive Influencers

Data File The Statistics Taking Stock Buyers’ Guide Auctions Trader Talk Market Insight Suppliers’ Guide with Litton Long-termers

CarDealer Colin Channon meets the Caralot team – and finds out how they built POWER a thriving, award-winning business in the midst of a severe recession.

IN ASSOCIATION WITH

GEN-3 GLASSCOAT

OUR AWARDS...

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

2013 Check out our coverage of the 2014 awards at bit.ly/UCA2014

WINNER

USED CARAWARDS IN ASSOCIATION WITH

CarDealer

62 64

66

116 118 119 121 122 123 124 126 127 130

SPONSORED BY

2013 WINNER ea arD le

r.

As voted for by dealers, the Car Dealer Power Awards are unique in the industry. To get involved in this year’s event, turn to page 32

2013 WINNER

Time Is Money

WHEELER DEALERS

C

38

Workshops

06 10 14 32 38 46 55 57 59 61

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feedback.

Your comments via email to colin@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

So what do car buyers IF YOU were to produce a handy information leaflet to give to customers telling them what really happens in a dealership, what would it say?

What advice would it give them? What would you tell them not to ask?

For example: 1. Don’t ask for £3,000 off the list price and expect to get it.

2. Don’t think we’re going to get really excited when you offer us cash – that means we have to go to a bank. Love to hear your ideas...

James Baggott (el Presidente) Just because we are open ’til 6pm doesn’t mean you can turn up at 5.50pm and want to test-drive every car we have.

Don’t be upset when I don’t laugh when you say, ‘it’s just like my driving test’ on the test drive. It’s the tenth time I’ve heard that joke this week.

‘How much for cash?’ Well, it’ll cost you the extra £10 it’ll cost me to bank it. We’re not stupid. We know you won’t ‘be back at the weekend’, we know you don’t need to ‘talk to the wife’ or get ‘insurance quotes’... we just humour you.

Don’t be upset when we charge a refundable extra on handover day because you’ve ‘accidentally’ forgotten to bring that ‘fully stamped’ service book with you.

Your meaning of ‘mint condition’ is very different from mine. I’m not giving you a price over the phone. Don’t expect a £1,000 discount over the phone before you’ve even seen the vehicle. I don’t care if you’re 300 miles away.

Despite what you think, we really don’t have thousands of pounds of profit in every vehicle.

Don’t use the ‘I’ve seen one cheaper elsewhere’ line when you haven’t even been to see that vehicle.

CJ Underhill We know what your px is worth, honestly we do!

We know how our car is priced against others in the market, we honestly do!

When you tell us you are looking at another car we will find that car online! We will then know that it’s a year older, 2,000 miles less but £800 more.

When you tell us you think your car has done about 60k miles, we know it has done more!

We also have families, so when you phone us on a Sunday afternoon, don’t be surprised when we can’t give you a px price within seconds.

When you meet us at a Christmas party and ask us what we do, we know you will say the word ‘dodgy’ within 30 seconds!

We also don’t want to talk about your 02-plate Jag X-Type all night. If you try, don’t be surprised to see us drink to excess.

We haven’t got a drink problem, it’s just that you are boring us!

We can tell when you’re lying, we honestly can!

Gavin@Rousdon

We also know a lot more than the friend you’ve brought along who’s a ‘mechanic’ – eg, a typical Pistonheads forum know-it-all who’s spent five minutes on Google and Parkers and is now an expert on used cars. Make sure he’s prepared for the awkward questions and red herrings I’m going to throw at him for my and my colleagues’ own amusement after you’ve gone.

Also, do your homework first... Don’t sit for an hour trying to knock me down £400 because the timing belt wants/will soon want changing on a car that is chain-driven.

Don’t complain and make snide comments if I haven’t had time to whip the Hoover and sponge over the vehicle you’ve stopped to see when it’s clear you’ve just been off-roading and living in your ‘immaculate’ part-exchange for the past two years.

At least empty the ashtray before telling me it’s never been smoked in!

And it doesn’t matter how many floor mats you put in your car – I’m still going to look under them to find that massive hole in the carpet you’ve been trying to hide. (I often think I made the wrong career choice. I’m really not a people person.)

CJ Underhill

It’s because most of the people are idiots. I’ve just rigged up a punch bag in the workshop and I must admit it’s helping.

Jack Regan Only been trading just over a year but we have had quite a few idiots too. I might follow your lead.

Ken Should retitle this thread ‘free therapy’.

James Baggott Had one in yesterday. Traction control light stays on on the px. I’m told: ‘It’s just a fuse’, followed by: ‘I’ve had the turbo replaced too. It’s now got a Garrett turbo on it, better than what was on it before.’

That’s handy, because I would have a problem giving a price on your car if it was a non-turbo version because Seat didn’t produce a bloody nonturbo version! And as for the fuse, at which point did he think I would believe him? If every warning light was solved by replacing a fuse I wouldn’t be standing here now! I would be flying first-class to New York!

Gavin@Rousdon

Picture of the month Well, we apologise to any readers from the wonderful city of Liverpool, but Nigel Swan, our super-talented video supremo, who hails from that neck of the woods, doesn’t exactly help matters when it comes to fighting the stereotype!

Here he is playing up to the camera at Autosport International, where members of the video team were working on a project for one of their many manufacturer clients. We don’t THINK he managed to get the wheels off !

More and more of our readers are joining the debate – and it couldn’t be easier 06 | CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

need to know?

Top tweets Just wanted to let @CarDealerMag know that they’ve employed not only a great photographer but a top chap too #legend @CaptainCaralot

One in Five #Ford Cars Sold in Europe is equipped with the 1.0-litre #EcoBoost. @RMBAuto Moving day is almost over, hopefully just one more trip and I’ll be officially out of Gosport. @BelieveBecca

We are excited that the prestigious @Swansway dealer group has chosen us as its vehicle check partner! @HPI_Trade Lookers opens £4m FordStore in Essex: LOOKERS has opened a new state-of-the-art £4m Ford superstore bit.ly/1APC2dM #Cars #Autos @CarDealerClub

Supercars vs Used Cars: The Trade Off – What did you think?

Two salesmen at opposite ends of the usedcar market traded places on a recent BBC TV programme.

Enjoyed this, very entertaining! Two totally different environments!

Wood235 That was very entertaining and enjoyable TV! Worlds apart! Well put together programme!

Umesh, Specialist Cars Very good programme. Refreshing to show the trade in a positive light instead of recent programmes that have been aired.

Jonathan Hermans Great show.

Wheelerdealer1 Good programme. I enjoyed it, especially the funny quotes like ‘where do you put the coins in the drive as you pay’ bit. s and b Agreed, it was an interesting programme and for a change it didn’t paint the industry in a bad light!

Andy Entwistle

In London tonight for the #WhatCarAwards.

Always a good do, and a chance to catch up with old friends. @LanceBradley NASA and Nissan announce a five-year partnership to develop the robo-cars of tomorrow. @WIRED

Massive thanks to @MilcarsMazda for helping with the teething problems on our Mazda 6 long termer. Hugely appreciated. @CarDealerEd

QUIET TIMES

We’re in a post-Christmas lull... so when will business pick up?

I’m a small dealer, I’ve had a few motors up for sale since the week before Christmas but it’s been so slow. I’ve had one call, are others finding this as well? If so, when is it believed it will pick up again? Got a mate in a main dealer who says it’s dead atm too, new and used. Not overpriced my stock to my knowledge. j4ck100 Slow here too! We’ve just completed our first year of trading. January was a good month for us last year. Others I’ve spoken to locally say it’s ‘dead’. So don’t worry too much!

Ken If we had the answer you could choose to open around the busy times instead of sitting there seven days a week hoping for some footfall. Historically, in my experience, the week between Xmas and the new year can be quite busy but I think the weather holds the key at the moment. Usually around the second week in January things start picking up, causing trade prices to escalate also. All you can do is make sure everything is ready for the elusive customer when they arrive, with all documentation available and the car presented as well as you can.

Webuycars We did one yesterday but it won’t pick up

until we’re rolling into January. February was a brilliant month last year for us, so we have stocked up ready!

TML Cars Limited There do seem to be some mixed messages out there at the minute; however, this is due to extreme ‘micro-climates’ of some of the dealers. I’m also aware that some major supermarkets are not entering the January sale game this year, as they felt it didn’t increase the sales volumes but did lower the PPU. Philip Nothard, CAP Once the first week of January is over and we are all back to normal working hours then boom – it will all take off, so be ready or you will miss the train! jimreidvehicle

to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum CarDealerMag.co.uk | 07

DASHBOARD.

Seat dealership provides cheer for kids’ hospice. bit.ly/hospice-help

SUPER CENTRE

New auction HQ at Rockingham CITY Auction Group, Ireland’s number one auction firm in Ireland and the country’s fastestgrowing auction group, is opening a specialist automotive remarketing centre at the prestigious Rockingham Speedway, Northamptonshire.

City Auction Group’s new super-centre will hold corporate auction events on behalf of major FN50 listed contract hire and leasing companies, financial institutions, daily rental companies and motor manufacturers.

City Auction Group has seen dynamic growth over the past five years, opening three centres at Dublin, Belfast and Omagh.

Michael Tomalin, managing director of City Auction Group, said: ‘We are very excited about the launch of our new super centre at Rockingham. It represents our first foothold on the mainland.’

Ready to rock, p113 More auction news, p121

SUZUKI

Awards given to dealer network SUZUKI has presented a number of awards to its UK dealer network in recognition of various achievements over the past 12 months.

The manufacturer had a unique master of ceremonies this time around with the hugely-popular comedian and ‘pub landlord’ Al Murray taking a brief break from his sell-out tour to assist with proceedings.

The awards were handed out as part of Suzuki’s annual national dealer conference in Amsterdam.

Dale Wyatt, sales and marketing director, said: ‘We are very pleased with the achievements all of our winning dealers and would like to congratulate them on their efforts.’

To check out the full list of award-winners, go to bit.ly/suzuki-winners 08 | CarDealerMag.co.uk

Blackshaws’ Bangers4BEN ‘dog’ sells for £4,000 THE best-dressed car in last year’s Bangers4BEN rally – Blackshaws’ Suzuki Ignis Dog – was sold recently at the BEN Ball for £4,000.

The auction at the annual event helped take the fundraising total for last year’s Bangers4BEN trip to more

than £40,000 – the most ever.

William Blackshaw, boss of Blackshaws, was delighted with the amount the car – which was covered in fur – raised for the charity.

‘I’m amazed at what the car went for,’ Blackshaw told us. ‘Big thanks to Car Dealer

Magazine, Codeweavers, the AA and Suzuki for helping and to BEN for putting on an amazing ball.’

If you’re interested in taking part in this year’s Bangers4BEN rally, register your interest by emailing kelly.neal@ben.org.uk

We’re thinking about hybrids and SUVs, says Aston Martin Company cannot afford to ignore the booming segments, says new boss

A

ston Martin’s new chief executive has confirmed the British manufacturer is considering moving into the lucrative SUV and hybrid markets.

In what will seem like sacrilege to fans of the James Bond brand, new boss Andy Palmer has told the Sunday Times that the maker ‘cannot afford to ignore’ the booming segments.

Bentley and Maserati are already planning excursions into the SUV market while Porsche’s success with the Cayenne, and more recently the Macan, are well documented.

The German brand in particular turned around its fortunes thanks to

by JAMES BAGGOTT @CarDealerEd booming sales of its 4x4 models. So much so it sells more of these than sports cars these days.

Palmer – who has joined the British maker after 30 years at Nissan – told the Sunday paper: ‘To have a car in our range that is desirable and purchased by and driven by women requires a different approach because most of these women are driving SUVs.’ Palmer told the paper he will ensure any SUV the brand does will ‘approach sports cars from a next-generational perspective’, but promised it won’t be a flop like the

Cygnet city car. That car was axed last year and Palmer was adamant the brand won’t be heading down that route again. ‘I would not do another Cygnet,’ he said.

Palmer is also candid when asked about Mercedes’ interest in the manufacturer. Daimler has bought a five per cent share in Aston Martin and will share its engines and some technology for future models.

‘Dieter (Zetsche, Daimler’s chairman) has been very clear – he does not want to buy us,’ Palmer told the paper’s Business section.

‘He thinks Aston is much better in Aston Martin hands than it is in the hands of Daimler.’

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CarDealerMag.co.uk | 09

DASHBOARD. FEATURE.

Ask Lawgistics

Finance firm insisting car is their property

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

Q

A customer recently complained to me seven months after buying a car because the timing belt had snapped. As is usually the case, when the timing belt went it caused a lot of damage, and it probably needs a replacement engine. I was surprised the timing belt had gone because I had taken in the car as a part-exchange and when I checked with the seller, he specifically said it had just had a timing-belt change on its recent service, and showed me an invoice confirming this. I drew my customer’s attention to this and passed on the invoice when he bought it. I rang the seller to confirm the belt had been changed and he was evasive and now won’t take my calls. The garage who supposedly did the service deny doing the work and told me an employee stole some invoices and a garage stamp, probably around the time I bought the car. As it is seven months since sale and I put a six-month warranty on the car, am I able to tell the customer my liability is finished and he must get it sorted himself?

A

Unfortunately not, because there are three strands of law that apply to most retail car sales. Firstly – and perhaps the easiest one to deal with – is the warranty you either sold, or gave, when your customer bought the car. A warranty will usually be either insurance-backed or, often now, a guarantee by the seller to repair the car for a certain period/mileage after sale in the event of a breakdown. Both types generally take the form of a booklet which explains what components are covered, what exemptions apply and how to make a claim. In your particular case, if the timing belt was covered, the customer may well have been able to claim the cost of repair, often capped at a certain limit, had the breakdown occurred within the six-month limit. It didn’t, so we can discount any claim being made under the warranty.

Secondly, we need to think about Sale of Goods law.

Was the car of satisfactory quality and fit for purpose when it was sold? Remember the six-month rule is only relevant as far as who must prove what the quality of the car was when it was sold. Within six months of sale, the dealer must have evidence to show the car was of satisfactory quality and fit for purpose when it was sold.

Q

After six months, the customer must get evidence to show it was not of satisfactory quality or fit for purpose when it was sold. In this particular case, the evidence speaks for itself. The customer bought the car on the understanding the timing belt had been changed and he has got documentary evidence to confirm this. To all intents and purposes, that customer was expecting the timing belt to be of equivalent quality to one fitted to a brand-new car. If, on a new car, the timing belt broke after seven months, there would be no question as to the seller being liable. Unfortunately, you are faced with the same evidence here. Whether the timing belt was changed or not, that car was not of satisfactory quality when you sold it because it had a defective timing belt – or at least, one past its ‘best before’ date.

You can see where the answer is already going, but it is also worth mentioning the third area of law which applies in this case. It seems likely the person who sold the car to you lied about the service/ timing-belt replacement. He was a fraudster seeking to oil the wheels of the transaction by his deception. You, albeit innocently, also told your customer an untruth. In law, we call this a misrepresentation. If your customer gets evidence to back his claim the timing belt had not been changed by the garage named on the invoice, he can make a claim. If he rejects the car as soon as he gets evidence of the misrepresentation, he can get his money back. As an alternative, he could claim negligent misrepresentation based on your lack of diligence in checking out the information before you sold the car, and claim the cost of repair. All in all, the best outcome you can get from this case is to sort out a suitable replacement engine for the customer. You need to consider only a used 70,000-mile engine or better and if the customer wants, say, a reconditioned engine, he will need to partly fund that.

We have talked only about the civil law aspects here.

However, there are criminal implications for making representations that are wrong. If there is something significant in the service history that means something special to you and/or your customer, then double-check it. In addition, don’t let the situation fester with the customer, since they are more likely to refer it to Trading Standards. Remember, a Trading Standards prosecution can affect your ability to hold a Consumer Credit Licence and an MOT licence.

.com

I have a customer who bought a car from us last year which was HPI clear.

She has since discovered there is outstanding HP on it from a previous owner. She is not happy. What can I tell her, as the finance company is telling her the car belongs to them?

A

As dealers will know, cars subject to an HP agreement do not belong to the customer until the finance is paid off. In this particular instance, the finance company added the details of the outstanding finance to the HPI database after the car was sold to your customer, who is the new owner. This can happen for a variety of reasons. In this case, it was because the finance was cleared (and so the entry removed) but the cheque to clear was returned unpaid, so the details were re-added.

However, the finance company is wrong to say your customer doesn’t own the car. This is because she, as a private individual, bought the car from you in good faith and without actual notice of the HP agreement, she has good title under s27(2) Hire Purchase Act 1964 and paragraph 22 of schedule 4 of the Consumer Credit Act 1974.

The car is hers, your sale was valid and hopefully, when you give her that information to pass on to the finance company, she will go away much happier and take her argument to them and away from you.

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WHY I JOINED car dealer club This month’s featured Car Dealer Club member can’t speak highly enough of the service from Lawgistics

WANT TO UPGRADE YOUR MEMBERSHIP?

OUR Car Dealer Club member for February, Josh Scott from Vogue 4x4, Cambridgeshire, had issues when what should have been a simple problem could have resulted in a hefty bill and a potentially difficult situation with a customer.

Scott explained: ‘We had a client who bought a ten-year-old Bentley from us in July, and at the back end of last year he phoned with an issue with a sensor, which can be considered a wear-and-tear item.

But, obviously, with it being a Bentley and where the sensor was, to change it would have meant taking the engine out. We’d have been looking at 40 hours of work. Most garages would charge £60 to £100 an hour, so you’re talking an awful lot of money just to change a £50 sensor.

‘The customer called us and said ‘‘this is your responsibility’’ and we had to remind him this was a ten-year-old vehicle and that sensors do fail.

‘We phoned Lawgistics to see where we stood on the matter.’

Scott was able to take advantage of this service as he has paid just £39.99 to become a member of Car Dealer Club.

He went on to say: ‘The advice we got was that this was indeed a wear-and-tear item and that we shouldn’t have to replace it.

‘The customer even said himself, ‘‘if it had been on a run-of-the-mill Audi or BMW and it had just been at the top of the engine, I’d never have called you!’’ But that’s what you get into when you buy a tenyear-old supercar for £30,000 that was once £130,000. It’s not a new car any more.

‘Fortunately enough, he was quite amicable really and sort of understood. You obviously want to help your customers but this was almost six months after we sold the vehicle. I’m not a mean guy but it’s got to be fair for everyone and the car was fine

LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that Club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There’s a package for everyone with Lawgistics.

when it left us, otherwise the engine light would have come on in the first six months, but it didn’t.’

Scott was extremely pleased with the outcome, and believes the customer has managed to get his Bentley sorted in the meantime.

‘The service from Lawgistics was fantastic,’ said Scott. ‘They’re really good guys and it turns out they’re only five miles down the road from me as well!

‘It’s a great service that they provide just to the car market, because a lot of people go to a generic solicitor down the road and often they don’t know. From my own experience, they almost try to bounce questions off you and I obviously don’t know the answer because I’m not legally minded. But Lawgistics know the whole trade inside out, which I really like.

‘I’m sure we’ll have to use Lawgistics again in the future – not that I want to!

But it’s a fantastic service and something I would definitely recommend.’

So Lawgistics can claim another happy customer. When we asked Scott why he had decided to join Car Dealer Club, he was quick to reply.

‘The benefits are great – why wouldn’t you join Car Dealer Club?’ he said. ‘You get the benefits of the Lawgistics service and obviously Car Dealer Magazine, which I enjoy reading!’

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DASHBOARD.

Virtual reality helps dealers take Discovery Sport orders Some 2,500 examples of the new car have already been snapped up

L

and Rover dealers were able to showcase the new Discovery Sport in dealerships ahead of its arrival – by using virtual reality to display the Freelander replacement in 3D to potential buyers.

Using an iPhone with a special app – built by an agency especially for Land Rover – customers were able to hold the phone up to their face and experience the size and look of the car. ‘The brief was to be able to demonstrate how big the car is to customers without there being a physical car in the showroom,’ UK product manager Richard Gavan told Car Dealer at the launch of the new model in Iceland. ‘I think we’ve managed to achieve that extremely well. The app uses the

CAD technology that was used to design the car and the configuration system to give customers a real sense of what they can expect to see with the new model. It’s working, too – we’ve taken orders off the back of it.’ The virtual reality system – news of which was exclusively broken by Car Dealer magazine on its website – will showcase future models as well. Gavan exclusively revealed to Car Dealer that some 2,500 Discovery Sports had already been ordered in the UK, with an equal split going to former Freelander owners and the rest to conquest customers.

The order books have been open

since the car was revealed in September and Gavan is impressed with the rate at which deposits are being taken. ‘The orders are matching those we received for the Evoque ahead of its launch,’ he revealed.

Discovery Sport on test and interview with Richard Gavan, p62

VT HOLDINGS

Griffin Mill Garages deal VT HOLDINGS, a Japanbased company, has bought another car dealership in the UK. It acquired the CCR Motor Company, the former Mitsubishi Retail Group, in 2012, and recently announced it had bought Griffin Mill Garages Ltd. Griffin Mill represents Fiat, Kia, Nissan and Peugeot, as well as being the authorised repairer for Renault across two sites in Pontypridd.

The acquisition takes VR Holdings’ combined UK turnover to £120m.

Tim Bagnall, the managing director at CCR and Griffin Mill, said: ‘This acquisition is a perfect fit with the current operations in terms of position and complementary franchises. ‘Griffin Mill has a strong local brand identity and a fantastic reputation with their customers and their franchise partners.’

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

��| CarDealerMag.co.uk

Close down our Swindon factory?

No chance of that, says Honda . . .

Manufacturer remains committed to Wiltshire plant, senior vice-president tells Car Dealer

H

onda has reiterated its commitment to the UK by telling Car Dealer it has no plans to shut its plant in Swindon. There were fresh concerns surrounding the future of the plant after it was revealed that Honda scraped a profit of only £1 million on sales of £2bn last year.

The factory sold 133,600 vehicles in the year ending March 2014, down 20 per cent on the previous 12 months According to the Sunday Times, an industry insider claims the manufacturer is struggling to sell Civics and is in need of new models to make the plant viable. Sales of the petrol-engined Civic fell from 57,000 units to just 21,000 last year.

In March, the plant announced the shutdown of one of the two

production lines, resulting in 500 jobs lost. Despite the UK car manufacturing industry going from strength to strength in 2014, Honda has seen a drop in demand across Europe. This resulted in a reduction of its workforce to 3,000 employees, who now produce 150,000 cars instead of 250,000.

But before Christmas, senior vicepresident of Honda Motor Europe Ian Howells told Car Dealer that the manufacturer remains committed to Swindon, and that there are no plans to shut the plant, as it did for four months in 2009.

He said: ‘Honda remains absolutely committed to producing cars at Swindon for the long term.

Since 2011, Honda has invested more than £250 million in the plant and in the past year, further

significant investments, as we have introduced production of the all-new Civic Tourer. We are also preparing to start producing new variants of the Civic and CR-V in January 2015. Furthermore, in mid2015, we will start production of the long-awaited Civic Type R. ‘Following the industry-wide

long-term reduction in European sales, in March 2014, Honda announced it would be moving all production on to one line (with Line 2 standing idle while sales volumes remain at their current level). This ensures our production volumes are in line with anticipated sales.’

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CarDealerMag.co.uk | 13 29/08/2014 09:25

FEATURE. investigation: subaru

Highs and lows It propelled Subaru into the big time and was loved by dealers and customers alike, but the Impreza’s story has not been without its ups and downs.

Here JAMES BAGGOTT investigates where it all began and where it all went wrong

I

t was a car that defined a brand.

Instantly recognisable by the masses, it propelled a little-known Japanese car maker to super stardom and drove sales success in showrooms that dealers had never experienced before and would unlikely ever see again.

Thanks to a hugely-successful rallying programme, Subaru saw its talented drivers become national heroes and its winged roadgoing Impreza counterparts fly out of showrooms.

As trophy cabinets filled up, thanks to the exploits of the legends Colin McRae and Richard Burns, sales exploded.

At the height of the model’s success Subaru was selling 12,000 cars a year – 6,000 of which were Imprezas. This year, Subaru will be lucky to show a slight rise in sales to just 3,000 units.

“

Eighty per cent of all Subaru sales were blue and yellow with gold wheels. And that’s only because it was the colour scheme of the 555 brand in the WRC. ��| CarDealerMag.co.uk

Times, and tastes, have changed dramatically.

It’s fair to say, though, the success of the Impreza – in particular its turbo-charged variants – took even the manufacturer by surprise.

So when our office car-buying addict Andy Entwistle bought an original Impreza WRX for our Trading Up feature, we thought it was the perfect excuse to try out the new one and find out just how this niche model became such an icon in the first place.

We’ve chatted to Subaru UK’s managing director, the dealers that saw the sales success come, and then watched it go, and have met the specialists making a killing on the popularity of classic models.

But before we meet those at the coal face, we first need to understand how the humble Impreza

PICTURES: JONATHAN FLEETWOOD

of a rally star rose from a quiet corner of a small importer’s range to become one of the motoring industry’s most-loved models. And much of that can be attributed to the hard work of Banburybased builder Prodrive.

Technical director David Lapworth remembers well the initial conversations with Subaru in Japan and watched the programme catapult the little-known manufacturer into the big time.

‘Subaru had just started the STI arm of the business and they’d been to a few world rally rounds and had decided that was a good way of promoting their performance cars,’ he told Car Dealer.

‘At that point Subaru were selling small cars in Japan and over here it was pick-ups and 4x4s for farmers. They wanted to move into performance

cars and entering the world rally championship was the perfect way to promote that.’

Looking back at the sales success which came as a distinct result of the wins on the muddy stages of the WRC, few would argue that Subaru’s foray into rallying was one of the most successful by any manufacturer.

‘Peugeot did it too with their 205 GTI,’ admitted Lapworth, who is still technical director at Prodrive. ‘But Subaru were very successful at generating sales off the back of the WRC campaign.

‘For evidence of that you need to look no further than the number of blue and yellow Subarus with gold wheels sold. At one point, 80 per cent of all Subaru sales – and we’re not just talking Imprezas – were that colour. And that’s

only because it was the colour scheme of the 555 brand in the WRC.’ British American Tobacco was the lead sponsor of the rally programme plastering the 555 brand, the world’s second biggest selling cigarette make, all over the cars. Like many iconic liveries then, it was down to the marketing genius of the tobacco companies that it became so iconic.

‘The tobacco money was the main reason we were so successful,’ admitted Lapworth. ‘They helped us enter the WRC and become competitive very quickly – within three years we were winning. That was down to a perfect storm of the right brands, the right desire here and at Subaru and a great car in the Impreza.’

The success of the rally programme isn’t lost on Subaru’s UK managing director Paul

CarDealerMag.co.uk | 15

FEATURE. investigation: subaru David Hendry: Rally was the key

“

Subaru’s sponsorship of a rally team is an example of best practice as to how a manufacturer can get involved in motor sport.

Colin McRae

Tunnicliffe either. ‘Colin McRae and Richard Burns catapulted us into the big time,’ he told us. Tunnicliffe has been leading the brand for only six years but has held senior positions with importer IM Group for the years that preceded that, so he’s well aware of the importance the rally stages played in the Impreza’s success.

‘Rally was absolutely key to sales,’ he added.

‘What’s more, I think Subaru’s sponsorship of a rally team is an example of absolutely best practice as to how a manufacturer can get involved in motor sport.

‘You see lots of manufacturers involved these days, but I genuinely wonder what their cost justification looks like.

‘The key thing that worked for us was the car you could go and buy on a Monday morning looked so close to the car that Colin McRae had just won a rally in the day before – it was the same colour and the bodywork was largely the ��| CarDealerMag.co.uk

David Lapworth of Prodrive played a major role in the Subaru success story

Impreza 22B

When? 1997 What? Only 399 of these were made to mark Subaru’s 40th anniversary and their third consecutive WRC title. Engine size was increased to 2.2-litres pushing out 280bhp.

Why? Many regard the 22B as the holy grail of Imprezas. Just 16 of the 399 came to the UK and they rarely come up for sale.

Price? One was listed in October with 79k on the clock for £42,995. Yes, really. same – so customers could buy a piece of rallying for a very modest price.

‘That was key – they were so similar that it was a seamless transition from rally stage to showroom. And customers loved them.’

SHOWROOM STORM Dealers couldn’t believe their luck. Used to dealing with the country set, farmers were being replaced by fans – and these bobble-hat owning punters wanted nothing more than a car that

looked exactly like the one they’d been cheering on around muddy stages the weekend before.

‘It was the rally connection that really helped Subaru get to where it is,’ said David Hendry, 65, who runs Subaru specialist David Hendry Cars in Malmesbury, Wilts.

‘The Impreza was special because it was like nothing else. It was quicker than an M3 and more reliable. Plus it was all over the television thanks to Colin McRae. Rally made Subaru famous.

‘I find it staggering that the likes of Citroen or Ford haven’t done as well off the back of their recent escapades in rally – Subaru built a brand on their cars competing and we sold a lot off the back of it.’

Hendry – who has been in business for 34 years – used to hold a Subaru franchise, but ended the relationship with the UK distributor in the 1990s when he decided to import the cars from Japan himself.

Impreza RB5

He said: ‘We bought the first two STIs direct from Japan in 1996 and I advertised them for sale at £35k in the back of Autocar and the phone did not stop ringing – it rang off the hook.

‘I could have sold them 10 times over and it was at that point we realised just how special this car was.’

Hendry continued to import cars until the financial crisis of 2008 when the exchange rate plummeted and killed off the margins. By this point he’d carved himself a solid reputation – and a number one place on Google for the search term ‘Subaru specialist’ – which has served him well ever since.

Hendry, who runs his business with his son and joint business partner Andrew, says it was the sheer performance of the Impreza when it arrived that attracted so many buyers.

‘The Impreza was the quickest thing you could buy for the money for some time,’ he said. ‘I’ve

When? 1999 What? To celebrate the return of Richard Burns to the rally team, a limited run of 444 models in grey were produced.

Why? Another Prodrive special that had 240bhp thanks to a new ECU and exhaust. It was a hoot to drive and a fan’s favourite.

Price? A private seller is currently offering one for £6,989 with 78k and plenty of history, but it’s a bit ropey. got a soft spot for the old Imprezas. They were honest, basic, reliable and quick. We still tune them now – some up to 400bhp.

‘Typical buyers are around 45 to 55 years old, but we’ve got one 80-year-old who has the latest Impreza STI. He loves it. Rather his back than mine, though!

‘I think Subaru has lost the plot a bit now.

The latest models are not as good as they used to be. It’s all about the American market for the manufacturer these days and we’re not even as good as a second thought to them – that’s sad.’

Richard Burns, left Not fair, says Tunnicliffe. Subaru has, and always will be, about selling cars to country people in the UK, it’s just the Impreza happened to be the car that catapulted the brand to the forefront of people’s minds.

The country set haven’t changed, it’s just the rally fans have moved on.

He explained: ‘We are now single-mindedly an SUV brand aimed at people who live in the countryside. I don’t think it’s fair to say we’ve lost the way – you’d only say that if you think of us a rally brand, and that was never going to last.’

But Tunnicliffe accepts the part the Impreza played in the manufacturer’s fortunes was a huge one. ‘It had such visibility,’ he explained.

‘Although it was a niche car it was still doing 6,000 sales a year and that made up 50 per cent of our sales at that time. It has played a huge part in our success in the UK. ‘The Impreza came along left of centre CarDealerMag.co.uk | 17

FEATURE. investigation: subaru It was the right car at the right time, says Elliott Cartwright of Unity Coventry

Impreza STi WR1

and introduced us to a whole new set of buyers.

It was a more urban buyer and then the rally sponsorship exploded and the brand went from being known by a tiny minority of people in the countryside to a much bigger audience.’

Sadly, Impreza sales have evaporated as the years have gone on and that can be attributed to a variety of reasons. Tax implications linked to emissions didn’t help, neither did design tweaks that saw a bug-eyed model bomb with buyers, and a hatchback fail miserably to excite even diehard fans. Sales have dropped drastically year on year ever since from the 6,000 highs to a desperate low of just 300 to 400 Impreza models predicted for 2014.

One dealer who has seen the Impreza rise and fall from grace is Elliott Cartwright of Unity Coventry. He’s now dealer principal of a group that sells Subaru, Isuzu, Chrysler, Jeep and ��| CarDealerMag.co.uk

When? 2004 What? A limited edition of 1,000 were produced to celebrate the 2003 WRC driver’s championship. 500 were sold in Europe.

Why? They had 320bhp and were extremely rapid – capable of hitting 60mph in a fraction over four seconds.

Price? Elite Motors is currently selling a 100k model on Auto Trader for £5,500. The price demonstrates how much more popular older cars are.

SsangYong, but back in the early ’90s he was sales executive (and tea boy, his words) at Andrew Burt Subaru in Wootton Wawen.

‘I joined just as the Impreza was taking off and it was an absolute rollercoaster,’ he explained.

‘At the time there was nothing else quite like it around. The Lancia Delta Integrale was no longer available and the Ford Escort Cosworth was on run-out and more expensive. The time was right for something different and the Impreza was the right car at the right time.

‘We had people coming in desperate to part with a £500 deposit to get on the waiting list.

When we told them there was a 12-month wait, the look of disappointment on their faces was terrible. However, we would hoover up the used models around and sell them one on a guaranteed buy-back so they could drive it until the new one they ordered had arrived – we knew we’d be able to sell the used one again almost instantly. It was a good time to be selling Subarus, that’s for sure.’

So where did it all go wrong? What was the cause of the Impreza’s fall from super stardom in the eyes of a man who has sold them all?

‘A lot of people blamed the new-shaped models on the demise of the Impreza success but I just think people started to want something different,’ said Cartwright. ‘By early 2000 we were doing deals on Imprezas and people could buy

We bought one Car Dealer operations director Andy Entwistle bought the V-reg model you see in these pictures as part of our Trading Up feature (page 59). So he’s responsible for inspiring this special feature. Here he explains why he shelled out…

I grew up in the era when firstly Deltas, then Scoobies, ruled the rally world. Despite that I never had the chance to actually own one, so when a friend offered me this one (he needed something more sensible) I jumped at the chance.

To be honest, I bought it on the provenance alone. It’s got a full service history and has recently had the belts replaced. It’s in great condition with absolutely no rot.

I hadn’t driven it until I had to get it back to Car Dealer HQ and what a surprise I was in for!

For a 15-year-old car it still has all the sparkle I’d heard about. There is something I love about 1990s Japanese cars – the styling is an acquired taste, but build quality is great.

Everything works as it should, too. The

Ian Coates: ‘selling well’

gearbox puts many modern cars to shame as it’s positive, light and easy to use, while the handling is spot on. And that engine... well, let’s just say I can see why these things are so revered in the industry.

If you ignore the aftermarket dump valve, and the whopping aftermarket exhaust, the Impreza is actually quite addictive. I can’t remember when a car I brought to the office got so much attention, especially one that set me back just under £1,500.

I bought this as I wanted something different for Trading Up and I figured it would turn us a quick profit.

However, it’s so much more than I expected – in fact, I haven’t ruled out buying her myself yet. Just don’t tell the missus…

“

Times have changed.

Lots of buyers have had six and their tastes change.

These cars are now quite a challenge financially. one from stock. The Mitsubishi Evo was stealing sales and then things like the Golf R32 and fast Alfas came along as well.

‘Only now with the new model are we starting to see things pick up again, but not to the levels we had back in the old days.’

The latest model he refers to has certainly tried to return to the old core attributes – it has the big wing, big BHP and right colour scheme (minus those important gold wheels, unfortunately) – but with an absence from the world’s rally stages, it’s still a tough sell to anyone but loyal Subaru followers.

However, Ian Coates, MD of Constitution Motors in Norwich, says he is doing pretty well with it. He’s sold his allocation of four this year with ease and says his biggest problem has been getting more.

He said: ‘We were allocated just four and

sold them all blind. It helps that the price was right – at £29,000 it’s a bargain. We’ve sold two to Mitsubishi Evo owners who haven’t got an option now and they were paying £35k plus for an Evo, so this looks very good value.

‘The Impreza has a real following. It’s an iconic car. In fact, it was a real shame they decided they weren’t going to do the performance models any more and concentrate on their rural models.

‘But now it’s back, it’s great to have a halo car.

The fact it is back at all is largely thanks to the loud noises us dealers made – and the passionate fans, too. There was a lot of peer pressure on the Subaru top brass to bring it back.’

Tunnicliffe admits it was his dealer network’s enthusiasm for the Impreza that saw it make the

triumphant return it has in this current guise.

‘Dealers had a big part to play in bringing this car back,’ he said. ‘A lot of dealers who were around in the glory days – especially around 1999 – see STI as being a major force in our line-up.

‘But times have changed. It’s not through lack of enthusiasm on our side, but lots of buyers have had six and their tastes change, as does legislation. These sorts of cars are now quite a challenge financially.

‘The dealers always hark back to the days when they were selling hundreds of these things and they’d be an orderly queue outside the dealership after a rally on a Sunday.

‘But it’s not going to be like that ever again. We’re out of rallying and it’s a CarDealerMag.co.uk | 19

FEATURE. investigation: subaru

“

The new car is much better quality and the technology is far superior. The digital dash and interior is much better. ��| CarDealerMag.co.uk

Subaru heaven at Cheshire Performance in Cheshire

Impreza P1

niche within a niche now. This year we’ll sell 300-400 STIs. Of course, we’d love it to be 3,0004,000 but we know that isn’t going to be the case.

Consumers have moved on now. They want different things.’

Dealers won’t go down without a fight, though.

Constitution’s Coates adds: ‘The new car is so much different to the older models. It is much better quality and the technology is far superior.

The digital dash and interior is much better.

‘We could have sold far more than our allocation. Subaru need a good news story at the moment and a car like this gives them that.’

However, Tunnicliffe thinks the Impreza has always, rightly or wrongly, somewhat stolen the limelight for the brand.

‘This feature proves the Impreza gets a disproportionate amount of attention for the level of sales it generates,’ he told us. ‘Dealers love

When? 2000 What? A two-door model developed by Prodrive to counter the threat of grey imports. It had 280bhp and weighed just 1,295kg.

Why? Because it was ridiculously quick, looked stunning and just 1,000 were made. It would hit 60mph in 4.7 seconds and crack 155mph.

Price? We found one offered by a private seller, 55k miles with FSH for £6,995, but have seen them for as much as £15k. them, customers love them, journalists love them, it’s just the sales don’t stack up as they used to.

We love it, but commercially we understand it will never be what it was before.

‘If we could still sell 6,000 a year there’d be no-one more happy than me, but if I look back you could see the writing was on the wall. None of this was our making, we didn’t just decide we didn’t want to sell STI. It was two things that

killed it: Taxation on emissions, and customers simply wanted something different.’

Perhaps the manufacturer could be accused of failing to keep up with changing times, then.

But when Subaru is selling 500,000 cars a year in America and just 40,000 in the whole of Europe, the demands of Brits are likely to fall on deaf ears.

iconic Whatever the future holds for the Impreza, there are still many very thankful for the iconic status it managed to attain. Cheshire Performance’s sales director Mike Kirwin is one.

The dealership, based in Dukinfield, Cheshire, sells eight Imprezas a week to fans all over the country – and of 80 cars in stock, a quarter are performance Subarus.

‘We set up our independent dealership about four years ago to specialise in CarDealerMag.co.uk | 21

FEATURE. investigation: subaru POWER HUNGRY

Under the bonnet is a 2.5-litre, turbo charged 296bhp engine producing 407Nm of torque. Sounds a lot, doesn’t really feel it.

ON TEST

“

Our problem is quality stock. There are hundreds of cars out there, but very few good ones.

Subarus because everyone involved in the business loves them,’ 28-year-old Kirwin told us. ‘We’ve all had them and we know all about them so it made sense. We now sell around eight Imprezas a week and display them in a special indoor showroom. It’s a niche market but we’re the biggest Subaru specialists and we’ve become known for that.

‘Our biggest problem is finding quality stock.

There are hundreds of cars out there, but very few good ones. The trade knows we specialise in these so we get offered a lot that way, and customers come to us directly from forums and the like because they know we want quality cars.

‘We even take good-quality Imprezas on sale or return – we take a minimum of £1,000 – but we do that because it is so hard to get hold of decent examples these days.’

Cheshire Performance sells to a wide range of customers looking for Imprezas, and they believe it’s the raw performance that gets buyers excited.

‘Imprezas are special because they are easy to tune,’ he explained. ‘You can get supercar performance for a few grand. I have a wide-track 55-plate Impereza that is running close to 400bhp ��| CarDealerMag.co.uk

and will hit 60mph in 3.5 seconds. That would humble a £100k supercar yet it stands me £8k.

That’s not bad at all, is it? The buyers of these cars are extremely diverse. We get the young boy racers in who had pictures of Imprezas on their bedroom walls and have always wanted one, all the way to our best repeat customer, a 60-year-old retired lady called Brenda. She has bought four from us. She changes every 18 months or so and has just bought a limited-edition WR1 for her retirement – she loves Imprezas.’

And perhaps that’s why the Impreza really has become such an icon. Everyone we spoke to for this feature – from main dealers to independents, to the manufacturer chief to Prodrive’s technical whizz – all agreed that it was the classless appeal of the model which offered something to everyone that made the Impreza such a success.

‘It was the right car at the right time,’ added Prodrive’s Lapworth. ‘It was a perfect storm of right car, right people and right promotion that put it in front of so many buyers. I’m not sure we’ll ever see anything like it again.’

And do you know what? I think we’re inclined to agree with him. [CD]

Subaru

LOOKS

The wings, air intakes and bright-blue paintwork are back – and we think it looks pretty good. In a 1999 sort of way…

NAME GAME

The Impreza name is gone. That’s a boring diesel hatch now. This is simply the WRX STI. That clear?

WRX STI

the knowledge

James Baggott really wanted to like this car. He filled it up four times in a week. But the love affair never passed first base What is it?

A car that has been sorely missed by the manufacturer’s dealers and its loyal fans, that’s what. Gone though is the famous Impreza badge, ditched a few years ago to be replaced simply by the letters WRX and STI. The idea was to distance the performance cars from the rather dull Impreza hatchbacks the maker was trying to sell at the time, but to all intents and purposes this is a performance Impreza. Just don’t say that out loud.

What’s under the bonnet?

A feisty 2.5-litre flat four that makes the trademark sound all Subaru enthusiasts love. Okay, so it might not be as raucous as the older generation Imprezas, but the DNA is still very much apparent. A sharp six-speed gearbox with short throw, four-wheel drive and 296bhp all work hard to get the heart pumping and it will hit 60mph in 5.4 seconds. Top speed is 159mph, but don’t expect much change from a visit to the

super unleaded pump thanks to 27.2mpg. Emissions are still pretty high at 242g/km.

the close-ratio six-speed gearbox is a gem and it still grips fantastically thanks to that four-wheel drive.

What’s the spec like?

What do the press think of it?

It’s inside where this Subaru starts to feel a little more grown up. The materials feel better quality, and the layout is far more sensible. Leather seats, dual zone climate control, keyless entry and start and ISOFIX points in the rear are highlights of the single trim level. Don’t be fooled by the shark fin on the roof, though – that’s not for sat nav, but the stereo.

What’s it like to drive?

Auto Express gave it three stars, saying: ‘It’s quick but nowhere near as efficient or flexible as a modern turbo.’ What Car? handed the car just two stars, saying: ‘For the rest of the UK’s enthusiast audience, the Subaru doesn’t come close to offering the level of entertainment and usability that its rivals deliver.’

What do we think?

We wanted to like this. We really, We did a lot of miles in this car really did. During this test we put during the 10 days it was in our four tanks of fuel through it (in a custody and, to be honest, it left us week) over more than 1,000 miles a little cold. The engine note is too in an effort to gel. But it still has not manufactured, too digital in its tone got the magical touch of the cars of and its pace not nearly quick enough. old. The steering isn’t great, it doesn’t It lacks edge and the excitement sound as good as it should and it of its predecessors. The steering is lacks soul. We love the looks and the lacking in feel and it simply doesn’t interior is vastly improved, but sadly set your pulse racing. That being said, there are better options out there.

Model: Subaru WRX STI Price: £28,995 Engine: 2.5-litre, turbo Power: 296bhp, 407Nm Max speed: 159mph 0-60mph: 5.2s MPG (comb’d): 27.2mpg Emissions: 242g/km Residual values (three years): 51%

target buyers:

Exisiting owners of Subaru’s hot models are core, as are conquest customers from Evos to hot Golfs

the rivals:

Audi RS3, Seat Cupra 280, Golf R

Key Selling Points: 1. Rally-car looks despite no rally action 2. Four-wheel drive makes it very grippy 3. It’s better value than STIs of old

Deal Clincher: It’s a blue Subaru with a big wing. For most, that’s all they care about.

CarDealerMag.co.uk | 23

DASHBOARD.

Even in a global recession, there’s always cash available to buy a nice new Roller...

Rolls-Royce delivers 4,000 cars in a calendar year for the first time

T

he Rolls-Royce success story shows no sign of slowing down any time soon.

While the big manufacturers would scoff at an annual sales figure of 4,000 units, it’s got to be said, most dealerships don’t sell cars with a price tag of £250,000-plus…

We popped to the home of RollsRoyce – Goodwood, in the heart of West Sussex – to get the low down on the company’s sales figures.

Five years of successive growth, booming sales in the USA, the Middle East and China, and for the first time in the history of Rolls-Royce, more than 4,000 cars delivered in a calendar year – 4,063 to be exact.

Not a bad year, then?

‘We have been in sustainable profitable growth for five years, and that is a product of a generation of planning,’ says Fintan Knight, Rolls-Royce’s director of sales and marketing.

It’s not as if those record sales will mean there’s a Rolls-Royce on every street, like Ford or Vauxhall, is it?

‘We are not volume oriented. We very much enjoy the 4,063 clients in 2014, many of whom we welcome

by COLIN CHANNON @colinchannon

back into the fold, and, in many cases, new clients. The very contemporary Rolls-Royce Wraith has had a big impact on brand perception. The Phantom is still our absolute pinnacle, but the Ghost and Wraith are still very important players.

‘They all play a different role – the Ghost and the Wraith speak to the entrepreneurial class, the job creators and the wealth creators, while the Phantom speaks very much more to the heads of state, royalty and corporate titans.’

Rolls-Royce has stood out from every other manufacturer for the past 111 years because of the quality of the cars it builds. Is it becoming more and more difficult to find craftsmen capable of creating works of art?

‘Yes, definitely,’ said Knight. ‘I think in the car business generally that kind of artisanship has died out completely. Of the 70 million cars sold worldwide, many of them are very mediocre.

‘Rolls-Royce designs cars and then

builds them by hand to very specific requirements and that takes a level of skill you can’t find anywhere else in the car business.

‘It’s a continual challenge but I should say the south of England is a place where we do find a decent skills reservoir, and the sailing industry in particular has produced many artisans who are good at working with wood, leather and cloth.’

It’s also one of the reasons Rolls-Royce began an apprentice programme shortly after building its headquarters at Goodwood, to teach young people the skills required.

So how, when there has been a global recession, has Rolls-Royce managed to keep selling cars? Knight says: ‘I think it’s the product of a very balanced business portfolio.’

So are new models in the pipeline?

‘Rolls-Royce is always working on new things,’ said Knight. ‘We never give up innovating.

‘We will be bringing a new opentop Rolls-Royce to the market in 2016 and we have lots of new great new ideas but none we want to speak about at the moment, so sorry, no exclusive for you….’

Selling well: the Wraith, above, and the Ghost

Kazakhstan and Vietnam should help 2015 break even more records EMERGING markets for Rolls-Royce include Azerbaijan, Kazakhstan and Vietnam – sales there, says Knight, have shown ‘promising growth’.

He added: ‘Many of our clients are well travelled and are serious investors internationally, so are not constrained ��| CarDealerMag.co.uk

geographically. Vietnam is a very exciting place, 75 million people, south of China, with a very young and well-educated population. Kazakhstan is energy-rich with large investments from surrounding countries.’

It takes six months from ordering a

car to delivery, and the signs are that 2015 will break 2014’s record. Not that Rolls-Royce is saying that.

‘We don’t talk specific numbers and projections,’ said Knight. ‘Let’s just say we are cautiously optimistic of having a successful year.’

bespoke cars

Fintan Knight This was a record year for owners working with RollsRoyce to make their car special – never before have so many consumers wanted bespoke designs, inside and out.

So what have been some of the wackiest requests?

‘Sorry, we don’t normally talk specifics,’ said Knight.

Oh come on, we said.

We know one owner, a keen golfer, had a ball washer installed in the boot; another enjoyed a drink in a specific-shaped bottle, so had a fridge made inside the car that would perfectly cool six bottles at a time.

There must be others…

‘Well, we do try to accommodate our customers’ wishes. We have one dear customer, a landscape gardener to the stars in California who has enjoyed enormous success.

‘He commissioned a Wraith, his fifth Rolls-Royce – his fourth was a lovely Drophead in red – and around that time he had got into watching Inspector Morse on Netflix.

‘He said he wanted his car to be a bit like Morse’s Jaguar, so we had to do a different configuration of the two-tone Wraith, which was the equivalent of spraying 18 Wraiths in the time spent on it.

‘That’s just an indication of the lengths we will go to for customers.’

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DASHBOARD.

Mike Brewer Motors provides help for the homeless bit.ly/brewer-help

Colinswood Citroen to develop WORLD OF WARRANTIES

Used-car sector needs its own lobby group

T

he majority of used-car dealer owners are just normal individuals endeavouring to make a living like every other business, but when it comes to perceptions within government departments, they are seen as second-class citizens.

The used-vehicle industry puts hundreds of millions of pounds into the Treasury, employs thousands of talented people and adds to the local community through all the products and services purchased.

However, there are consultations currently happening in respect of consumer law which could have far-reaching effects for the trade, and yet the people who are sat round the table I don’t believe have ever worked in a dealership.

With regards to the FCA crackdown, dealers have bills to pay and need to make a profit on the overall sale to meet these. In most cases money will be made on the metal, finance and addon products. If screen prices are reduced because they are able to subsidise by profiting in other areas, then the motorist gains.

If add-on products are withdrawn, the dealer will have to increase the screen price as there is nothing coming in to balance the books.

While the WMS Group and majority of dealers do not support unrealistic GAP mark-ups, we do believe a fair premium for a good product is acceptable – especially if the buyer has negotiated a discount on the screen price.

The general perception from the trade seems to be GAP is an excellent financial product and one that motorists should be encouraged to take up.

GAP is very much something that is relevant during the car-buying process but not so much afterwards, so some motorists who would be buying this product will not now do so, leaving them in a precarious position in the event of a covered occurrence happening. In light of the above, I firmly believe the used-car sector needs its own lobby group as the finance and leasing sectors have.

I would be interested to hear your views – please tweet us (@TheWMSGroup) or get involved by joining our LinkedIn group.

‘A fair premium for a good product is acceptable.’

Who is John Colinswood?

He is MD of WMS Group, the extended vehicle warranty company supplying motoring products to over 3,500 dealerships nationwide.

new network purely to sell its DS models

No precise date set yet for opening of first DS store in UK, however

A

new network of Citroen dealerships selling only DS models will be rolled out in the UK. Speaking exclusively to Car Dealer, Citroen’s Eric Apode, who is vice-president of products and business development, said the first showroom should open in the UK before next summer.

The plan is to open DS showrooms in major cities, and especially targeting wealthy areas. DS-only showrooms have already opened in other countries. Some Citroen dealers will continue to sell DS models, though.

Citroen’s strategy is to separate the DS brand – in the same way Lexus was successfully marketed as the luxury arm of Toyota – and, as the brand grows, to open exclusive DS stores.

In the short term, some current Citroen showrooms may be expanded to have a

separate DS section. In the next few years, the DS range will be increase from three models to six, including a new SUV. Apode said: ‘We are right at the beginning of the story of the DS. ‘When the market is big enough, we will open some DS stores – we opened one recently in France. We will gradually open more and more, but at the same time we want to leverage the existing Citroen dealers and will continue to sell the DS there, too. We will have separate DS stores when the market is big enough.

‘The strategy at the moment is to open DS stores in 200 of the most important cities in the world, in all the major regions, including the UK. ‘I can’t give you a precise date when the first DS store will open in the UK, but we are looking at the first half of the new year.’

Apode added Citroen has been delighted with the sale of the DS3 in the UK, but the sales of the DS4 in these shores have been disappointing.

One thought is that the DS4 is simply too similar to the C4.

A second Suzuki showroom opens in Bristol SUZUKI GB has opened Blade Suzuki, its second showroom in Bristol.

Located to the south of the city in Flax Burton, the launch of the new site sees the vehicle manufacturer’s retail network expand to 151 outlets across the UK during 2014, a year that has also witnessed

Suzuki enjoying record-breaking levels of sales. The new showroom on Weston Road, which has been a retail location for the Blade Group since 2011, houses the brand’s full model line-up including the award-winning Swift supermini and SX4 S-Cross crossover.

CarDealerMag.co.uk | 27

DASHBOARD.

Jennings Motor Group teams up with Salvation Army bit.ly/jennings-help

TECHNOLOGY

Driver won’t be able to dictate!

HARMAN is pioneering an in-car entertainment system that allows each occupant to listen to what they want.

No longer will the driver be able to dictate that if he wants S Club Seven on the CD player, everyone else in the car has to suffer, too.

The new system is called ISZ – Individual Sound Zones – and utilises a vehicle’s existing audio system speakers with the addition of headrest speakers equipped with micro-speaker technology.

APPOINTMENT

Steve Hood is TrustFord boss TRUSTFORD has a new boss.

Ford of Britain has announced the new chairman and chief executive officer of its dealer group is Steve Hood.

The previous chairman and CEO, Stuart Kerr, has left the business to ‘pursue opportunities outside the group’. Hood, pictured, was appointed chief operating officer in November, and now he has moved up, this post will be discontinued.

CHARITY

CCR pledges to keep up support CHELTENHAM-based charity WellChild, which helps seriously-ill children and their families across the UK, has saved enough money to pay for more than 1,000 hours of nursing support thanks to the backing of CCR Mitsubishi since January last year.

Now the company has vowed to keep lending the charity two vehicles throughout 2015 and has just handed over a brand new Outlander and ASX. ��| CarDealerMag.co.uk

Infiniti stores in key locations INFINITI stores have opened in two key shopping and entertainment destinations in the capital: Westfield London and Westfield Stratford City.

The car company is joining some of the world’s most respected retailers and exclusive fashion brands in the state-of-theart centres which attract more than 70 million visitors each year.

The two new stores are designed to be semipermanent structures and have cars on display and standing by for immediate test drives.

Boardroom changes at Perrys as new MD gets set to take over Darren Ardron’s remit will include ongoing development of the business

P

errys Motor Sales, a double award winner at the Car Dealer Used Car Awards, has made a significant change in the boardroom.

Darren Ardron has been named the new managing director, replacing Ray Sommerville, who will be retiring on June 30.

The Northampton-based business, which has 46 franchised dealerships nationwide, will continue to be overseen by Sommerville in his new capacity as CEO, working alongside chairman Ken Savage.

Sommerville said: ‘I’ve been with

by REBECCA CHAPLIN @BelieveBecca the business for 14 years and have helped grow turnover from £250m to £550m. I leave the company in a strong position and in safe hands.’

Ardron started his Perrys career in Rotherham in the sales department in 1988, and he has since worked his way up the company, holding numerous senior positions within the group including general manager at a number of key dealerships.

In 2013 he was promoted to regional director in the north.

Savage said: ‘Darren has been a great asset to the company over many years and I am confident he will build on the work Ray has put in over the past 14 years.

‘Darren’s grassroots understanding of the business means he is ideally placed to identify the business’s strength, taking it into a new chapter of growth.’

Ardron’s remit will include the continued development of the business through organic growth and acquisitions. Perrys represents 14 different franchises and has locations across the country.

Major reshuffle announced at Citroen and Peugeot A MAJOR management reshuffle has been announced at the UK arm of Citroen and Peugeot.

Stéphane Le Guével was named director general of PSA Peugeot Citroën UK, with overall responsibility for all three of the manufacturer’s brands, Peugeot, Citroën and DS. Additionally, Arnaud Leclerc

became deputy director general of PSA Peugeot Citroën UK and brand development director DS, Neil Moscrop is the new brand director for Peugeot, and Bek Hassan is the new brand director of Citroën/DS. Brand directors will now be responsible for the sales and marketing operations of each brand,

the company says. Also reporting to Le Guével and responsible for all three group brands – Peugeot, Citroën and DS – will be Andrew Didlick, the new director of communications, events and partnerships; Stuart Hodge, director of parts and service; and Martin Gurney, director of fleet and used vehicles.

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The search is on.

Make sure they find you.

The pulse quickens when we find what we’re looking for, from a long yearned for LP to a new sports car. But 69%* of buyers are less likely to click on an advert with unappealing images, so make sure your forecourt heroes aren’t hidden from view. Stand out from the crowd with stunning images and clear descriptions. Millions of in-market buyers are searching on Auto Trader now. That’s why we’re creating new ways to help them find their perfect car.

For buying, selling, marketing and managing. We help you stay one step ahead. trade.autotrader.co.uk/selling *Auto Trader car buying interactions survey, February 2014

��| CarDealerMag.co.uk

What drives us is you

CarDealerMag.co.uk | 31

SURVEY.

It’s the survey that puts you in the driving seat We need your help to discover the manufacturers and suppliers who do their best for you – and unmask those who don’t. Yes, it’s time once again for the Car Dealer Power Awards

T

here’s one thing you can say about dealers (okay, there are lots of things you can really say about dealers, but let’s keep it clean..) and that is they’re never short of a word or two.

Get two of them in the same room – or be alone with one in a showroom, with a car to sell – and there’s no shutting them up.

And today, we’re asking all dealers reading this: Talk to us!

It’s time for the sixth Car Dealer Power Awards.

‘What are they’ can I hear you ask? If so, just where have you been for the past five years?

They’re the biggest, most comprehensive, and most talked about (see, told you dealers talk a lot) survey of its kind in the industry.

On the next three pages, you’ll see loads of questions, about manufacturers and suppliers. All we want are your views. We want to know what manufacturers are best and how good they are at helping you out, what website designers you use, what finance houses are best, what suppliers go beyond the call.

We’ll feed all those answers into the superpowerful Car Dealer computer. It will scratch its head and contemplate the answers, and then spit out the data we need to make sense of it all.

By the end of the process, we’ll have a very good idea about the manufacturers and

suppliers who are very, very good. About those who are merely okay. And those who are pants.

We’ll be sharing the data, and in the past manufacturers and suppliers have made changes to the way they work on the back of the feedback we give them.

Can I say what I really think?

Yes! The beauty of all of this is that it’s totally, absolutely anonymous. Car Dealer magazine is on the side of the car dealer (there’s a clue in the name). So when we discuss the findings over a cup of tea (something stronger, probably, with those who haven’t fared so well) we’ll tell them what we found, but not who told us.

And the reason for that is simple. We don’t ask you for your name.

In the past, we’ve asked for a mobile number.

We have only ever wanted it because we’ve had a few prizes (okay, a few bribes) to give away to people who filled in the survey.

This year, we’re not even asking for a mobile number (and, you may think, it’s because we’re too tight to go out and buy prezzies for you. And you’d be right...)

Some dealers thought we might pass on their individual comments, and were worried about being too critical. Of course, we would never do that. Remember, we’re on your side. So to allay any fears, your replies are absolutely anonymous. And the Car Dealer super-computer will assess the answers, not the envelope, the

HOPE YOU DIDN’T MISS THE SUBTLE NUDGE – ENTERING ONLINE AT ��| CarDealerMag.co.uk

CARDEALERPOWER.COM

forms, or IP addresses of those who enter online.

At the end of the process, we’ll know who are the best of the best. And we’ll hold a glitzy awards night to celebrate their achievement, which will be on Thursday, April 23 at the Spinnaker Tower, Portsmouth. Of course, it’s really just an opportunity to get dressed up in our best penguin suits and sparkly dresses (and some may want to wear both) and have a drink or two!

So how do I enter?

Simples, as silly-looking meerkats would say. Fill in the form on the following pages, and post it to us to the address shown. Or, if you don’t want to tear out pages and wreck your copy of the best business publication of 2014 (and to be honest, seeing we spend ages... well, weeks... well, days... well, a few hours between eating meat pies and drinking tea... putting this magazine together, we’ll be pretty peeved if you then rip it to shreds) make a photocopy and send that to us.

The CDSC (that’s a posh name for the Car Dealer Super Computer) would prefer online entries, as it can chew on those without a poor, under-paid secretary (or, more likely, a poor, under-paid Car Dealer editor) first having to slump over a keyboard and input all the data by hand. Log on to CarDealerPower.com to do that – you’ll notice we will be plugging that address a lot over the next few pages, as the editor has a say in the design and he doesn’t want to spend a whole week inputting data...

So, please take a few minutes to complete the form (have we mentioned doing it online is best?) and we can then award those manufacturers and suppliers who go out of their way to make life easier for all of us.

Thanks for your help with this. Suppliers and manufacturers may want to give their clients and dealers a nudge and ask them to take part. And if so, just remember – entering online at CarDealerPower.com is best...

WOULD MAKE LIFE EASIER FOR US...

The easiest way to fill in the survey is online at CarDealerPower.com We’ve changed the format a bit this year. Please provide a mark out of 10 where shown And remember... this is completely confidential. So don’t be shy about telling us your views!

CAR MANUFACTURER 1. Which car manufacturer do you represent? If it’s more than one, please fill in the survey again. You can do this online at CarDealerPower.com  Abarth  Alfa Romeo  Aston Martin  Audi  Bentley  BMW  Chevrolet  Chrysler  Citroen  Corvette  Ferrari  Fiat  Ford  Honda  Hyundai  Infiniti  Isuzu  Jaguar  Jeep  Kia  Land Rover  Lexus  Lotus  Mazda  Mercedes-Benz  MG  Mini  Mitsubishi  Nissan  Perodua  Peugeot  Porsche  Proton  Renault  Saab  Seat  Skoda  Smart  Ssangyong  Subaru  Suzuki  Toyota  Vauxhall  Volkswagen  Volvo  Other (please name) 2. How do you rate your manufacturer with regards to its finance offers?

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

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

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

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

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

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

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

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

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

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

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

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

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

7. How accessible is your manufacturer?

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

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

10. How well does it manage used cars?

Consider how it manages stock and its used car scheme.

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

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

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

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

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

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

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

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

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

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

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

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

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

If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower. com, photocopy these pages or email colin@blackballmedia.co.uk for a copy.

All requests will be treated confidentially.

Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.

CarDealerMag.co.uk | 33

SURVEY. The SUPPLIERS This section is about finding the best suppliers. The winners will not be decided solely by being the most popular, but by how good they are at providing you with a service. We’ll be naming a winner for each category and two highly commended places, which will be announced at the Car Dealer Power Awards ceremony on April 23. For each category, first tell us who you use, then give them a mark out of 10, and finally add any comments you have.

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

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

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

Please provide a mark out of 10.

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

5. Dealer Marketing Agency (advert design, concepts) Who do you use?................................................................................

Please provide a mark out of 10.

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

2. GAP Supplier Who do you use?................................................................................

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

10

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

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

Please provide a mark out of 10.

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

��| CarDealerMag.co.uk

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

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

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

10

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

ENTERING ONLINE AT

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

Please provide a mark out of 10.

CARDEALERPOWER.COM

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

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

Please provide a mark out of 10.

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

WOULD MAKE us (well, our over-worked editor) very, very happy...

13. Lubricants Who do you use?................................................................................

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

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

17. Best Trade-to-Trade Remarketing (leads for disposal of your trade cars) Who do you use?................................................................................

Please provide a mark out of 10.

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

18. Best Consumer Lead Generation (leads for people to sell cars to) Who do you use?................................................................................

Please provide a mark out of 10.

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

19. Dealer Management Product (DMS systems) Who do you use?................................................................................

Please provide a mark out of 10.

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

Please send completed surveys to: Car Dealer Magazine Haslar Marine Technology Park Haslar Road Gosport PO12 2AG

10

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

Please provide a mark out of 10.

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

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

Please provide a mark out of 10.

10

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

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

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

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

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

Portsmouth’s Spinnaker Tower – venue for our awards ceremony on April 23

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

don’t rip up this award-winning magazine – you can also find all the questions oNLINE AT

CARDEALERPOWER.COM CarDealerMag.co.uk | 35

DASHBOARD.

Hendy Group Oscars celebrate success bit.ly/hendy-oscars

CRASH TESTS

Five-star awards for Jeep, Audi THE Jeep Renegade and Audi A3 Sportback e-tron both gained maximum five-star ratings in the latest batch of Euro NCAP safety tests.

The organisation said both models offered excellent all-round crash protection and an autonomous emergency braking system available as an option. Also tested recently were the Kia Soul and its all-electric stablemate the Soul EV – but both fell short of the top rating, with four stars apiece.

RECALL

Precautionary Porsche move PORSCHE has announced it is recalling some of of its 918 Spyder hypercars. It says it is recalling 205 models of the 918 it produced over concerns about ‘defective chassis components’.

Porsche says it is purely a precautionary measure after ‘in-house quality inspections identified a bad batch of parts, whose functionality cannot be guaranteed’. No complaints have been made by customers, says Porsche.

PLANS

Volvo shunning trio of shows VOLVO has announced it will not be showcasing its new models at some of the world’s top motor shows.

The Chinese-owned manufacturer says it is still a ‘relatively small player’ in the global market, and would not succeed by ‘doing the same as the others’.

Volvo will not be appearing at Frankfurt, Tokyo or Paris, and will instead save its money to focus its attention on growing its online presence. ��| CarDealerMag.co.uk

Registration rate may well slow down in 2015, but there’s no reason for gloom, says Deloitte ‘There will naturally come a time when monthly increases will end’

F

inance experts Deloitte are expecting the number of new-car registrations to slow down this year – but says that is reason for celebration, not despondency.

Figures from the Society of Motor Manufacturers and Traders (SMMT) (p116-117) showed a ten-year high in the number of new-car sales.

David Raistrick, UK automotive leader at Deloitte, said: ‘At the beginning of 2014, it was clear we were going to see healthy levels of growth in new-vehicle registrations, although the final numbers of almost 2.5m have surpassed expectations.

‘There is naturally going to come a time when the UK new-car market’s

by COLIN CHANNON @colinchannon record run of comparative monthly growth will come to an end. However, when this point comes – and our analysis suggests it will be 2015, with a plateau having now been reached – it is important the market reaction is measured. A levelling-off in new registrations should be balanced against the reality that, as recently as only three years ago, new-car sales were fewer than 1.95 million, and the European market has been in freefall over this period.

‘Equally, there is a finite limit to the numbers of new cars required every year, no matter how buoyant

the markets may be. Current levels are hugely positive, and flat sales this coming year, or even a slight reduction, should still be seen as a positive position, and not a tale of woe. A number of positive signs remain for the new-car market.

‘There is no immediate indication finance costs will increase, higher levels of employment should give more private buyers the confidence to make a purchase, and the continuing troubles in the Eurozone will encourage manufacturers to support the UK’s buoyant market.

‘Our forecast for the next 12 months is for new registration figures to broadly match, or possibly even be slightly less, than 2014.’

...meanwhile, here’s what to expect on used car front THIS year is set to be the most significant one in the used-car market since the recession, valuation specialists Glass’s is predicting.

After a reasonably strong start, a variety of factors both within and outside the industry are likely to have a marked effect on both supply and pricing in the second half of the year.

Rupert Pontin, head of valuations, said: ‘The key moment is likely to be

the general election. This will have dampening effect on used car sales.

‘Immediately afterwards, there is likely to be a new round of austerity measures and also tax increases, damaging both spending power and consumer confidence.

‘Shortly afterwards, by the end of summer, most economists feel we will see an interest rate rise. Even if this is just 0.25 per cent, it will again

inevitably hit consumer plans for replacing their car.’

Pontin said these events were likely to be accompanied by an increase in supply.

‘Over the past few months, we have seen supply increase by between 1.0-1.5 per cent every month, which is a big change. This is set to continue during the rest of the year, having an overall downward effect on prices.’

THERE’S NEVER BEEN A BETTER TIME TO ADVERTISE ON MOTORS.CO.UK Record levels of response for current dealers in 2014

Huge additional reach through Motors.co.uk Network including Parkers, Sun Motors and Driving.co.uk

On TV and Radio every month of 2015 and beyond

For any more information on how you can reach 2.2 million* car buyers each month please: • Call 0845 265 6001 • Email sales@motors.co.uk • Visit media.motors.co.uk *comScore, October 2014

FIND CARS WITHOUT THE CARFUFFLE

CarDealerMag.co.uk | 37

DASHBOARD. interview: caralot

Smile a lot, work a Caralot is that motor supermarket that’s a bit of a laugh and a joke, right? Err.... wrong.

Very wrong. Behind social media super hero Captain Caralot lies a thriving and growing business, driven by two men who know exactly what they are doing – and are very serious about becoming big players in the industry.

As Colin Channon found out for himself...

“

I didn’t like the attitude of some salespeople

��| CarDealerMag.co.uk

The philosophy behind Caralot is pretty simple. ‘I wanted to create somewhere my parents would be happy to walk into and talk about buying a car, without feeling pressured, and then leave with a smile on their face, whether they’d bought something or not.’

Four years on, and Jamie Caple believes he’s well on the way to achieving that.

He and business partner Nick Donald give the impression they’re all about fun, having a laugh and a joke and a pint at the end of the day, with a devil-may-care attitude.

It’s a carefully-cultivated impression. But it’s also wide of the mark.

Behind the fun – and behind the mask of social media super hero Captain Caralot – are two 34year-olds with a wealth of experience in the motor trade, and who have shrewd business brains.

They started Caralot on a strip of tarmac in Derby in 2010. They had seven cars of their own to sell, plus a few more on a sale-or-return basis.

Today, they have around 160 cars in stock, and an annual turnover of about £12 million. And plans to get bigger, bolder and better.

Caple loves telling the story of how it all began.

‘I was working at a car supermarket, selling lots of cars and making strong money.

‘Nick went to work for a main dealer, and six months after that we both got a call to run a Mercedes dealership in Birmingham.

‘There we were, two 28-year-olds, with the keys to a £10 million gin palace.

‘We did well there. We got the finances sorted.

But we were being worked to the bone, and I wasn’t earning big money, although Nick was doing okay.

PICTURES: JONATHAN FLEETWOOD

lot...

‘I didn’t like the attitude of some salespeople – the way customers were prejudged. It happens in lots of places – a customer comes through the doors and staff chat among themselves, ‘there’s no way they can afford a £30,000 car’, that kind of thing.

‘A lot of customers said we shouldn’t be working for someone else, we should have our own business.

It was a big, big step, but that’s what we looked at doing.’

Their first effort, in January 2010, stalled. They had found the land and had negotiated a lease, but at the last moment it collapsed as their backing with withdrawn, along with a warning that as the country was in recession, a car supermarket would not survive.

That was akin to waving a red rag in front of a bull.

‘In July, the sister of someone we did business with, who ran a dealer business, was about to give

Social media superhero Captain Caralot

CarDealerMag.co.uk | 39

DASHBOARD. interview: caralot

Dress sense I remember one day two business people came to see us when we worked at Mercedes.

One turned up in a car worth about £50,000, then the other arrived in one worth £85,000.

Neither of them was wearing a tie.

‘Look,’ I said to them, ‘you’re business people, why aren’t you wearing ties?’

They answered that they were the bosses, and when you become your own boss you don’t have to wear a tie any more.

That stuck with us. So on our first day at Caralot, Nick and I didn’t wear a tie. But at the end of the day, I looked at Nick, and said, ‘Are you wearing a tie tomorrow?’

And he said ‘yes’.

We’d had that moment when we were bosses and didn’t need a tie. And then we thought we are car salesmen, of course we have to wear a tie….

birth. We were offered the opportunity to take over the lease.

‘We had seven cars of our own to sell. The previous owners had another 45, which they said we could have on a sale-or-return basis, so we didn’t have to find the cash straight away.

‘We borrowed £50,000 from our parents, and we were up and running.’

Four years later, there are upwards of 150 cars in stock. They deliver about 110 cars each month, and have a separate trade arm which deals with part-exchange that helps generate cash flow. Last year, about 1,300 cars were sold retail.

‘We knew when we started that we wanted to ��| CarDealerMag.co.uk

“

My salespeople are not on commission. I don’t want pushy salesmen be different,’ says Caple.

‘In some ways, when we started Caralot, we felt we had left the motor trade. We felt we could do things differently, and do it better.

‘We went from that gin palace in a fabulous setting with big, expensive cars to a Portakabin on a strip of tarmac on an industrial estate. We didn’t want sales staff who were immediately prejudged by the look of their customers, or didn’t treat them very well, and the service and experience they had wasn’t good. I didn’t want an arrogant sales force who were not very nice people, the kind of people who would say to themselves ‘look at this tramp coming in here, he can’t afford one of our cars’, and who would sell a £30,000 car and not give the

customer a second set of keys.

‘My salespeople are not on commission. I don’t want pushy salesmen who are desperate to sell a car, any car, to a customer to put food on their table at the end of the month. They are salaried because I don’t want customers to feel pushed, pressured or bullied by a salesman who wants to go on holiday next month and knows if he doesn’t hit his target, he won’t earn enough money to go. I don’t want my salesmen telling customers this is a price for today only, and that you won’t get that deal tomorrow… that’s just bullshit. But it’s typical motor trade, though.

‘My salesman are more relaxed. But we have to employ the right people, people who still work hard despite knowing that if they sat on a chair reading the paper all day, they’re on the same money than if they are outside all day talking to

The internet

Jamie and Nick – and Captain Caralot

every customer. That’s all about bringing the right people in, and I believe we have the right people.

They give us everything.

‘We are people people. We will talk to people, we will show an interest in people, and we’ll have a laugh with people. We want to relax people.

‘If I’m going to buy something, if I’m happy and I’m enjoying myself, I find spending money is ten times easier.

‘That’s what we do. We relax people, make sure they’re warm, let’s tell them our story about two local lads making a business work in a recession, and how we want to work in the motor trade and do things differently.

‘And we are genuine about that. It’s not that we are saying it and it’s not true. We mean what we say.

‘Nick and I were very experienced salesmen,

Caralot is much more than a showroom with lots of cars on display. It’s a social media hub – and more and more vehicles are sold thanks to a screen on a PC, laptop, tablet and phone.

Caple says: ‘A lot of our selling is now done by phone.

‘On our website you’ll see a section called ‘reserve a car’. We have come up with a formula whereby customers see a car they like the look of on the screen, and leave a deposit with us on a car they have not seen, touched or driven. They then make an appointment to come and see the car, and we withdraw it from sale.

‘Even though the deposit is fully refundable if they don’t buy, taking the payment solidifies the appointment so we know they will come.

The customer also starts talking to friends about how they have put down a deposit, and they start to buy it in their own minds.

‘Okay, it may be sneaky in a way, but it works very well for us, and has been very successful.

‘We have hammered social media from day one. I’m not being big-headed or arrogant, but when we started not a single other dealer was using social media when we began doing it.

‘In 2006 and 2007, Facebook destroyed productivity in lots of dealerships, as salesmen at their desks were looking at this new thing, dicking around on Facebook and not talking to customers. From then on until 2010, many dealers had internet blockers on Facebook. But our staff could rejoice, because they could get on to Facebook. We embraced it and used it. We wanted to tell our family, friends and peers that we had set up a car dealership, and to come and check us out.

then very experienced finance managers, then very experienced sales managers, and then very experienced general sales managers, so for us to get back on the dance floor and go back to selling, which is why we started in the business in the first place – we loved meeting people and building relationships with them – was great.

Nick and I were selling 95 per cent of the cars.

‘We’ve pretty much made it all up as we’ve gone along. We beg, stole and borrowed anything we could to get going, and we have got where we are by hard work. We haven’t got rich parents or come from rich families. Our parents were working people and we have the same work ethic.

‘We now have a staff of 15, and we have a great team. Most of them are friends and family, which is great, but also can bring problems. We had to sack someone the other day which was tough.

Perhaps there was a bit of ego about it, so very quickly we thought Facebook was a platform that didn’t cost any money, but was a way to market and advertise our business in a unique fashion, that no-one else was doing.

‘We also thought that people of our age and younger were on Facebook, so the logic was that even if 15, 16 or 17 year olds who were not yet driving knew about us because they had seen us there and had been exposed to our business, then in two, three or four years’ time, when they’re at a point when they are ready to start driving, they may come to us for a car.

‘And, of course, it’s free. At a time when we’re spending tens of thousands of pounds a month on marketing, that has to be good for us. We did a few daft things, like competitions, but we never tried to sell anything on Facebook, because we want the page to be a destination for people to have a smile and a bit of a laugh and to see our business developing, without having “buy our car” rammed down their throats.

‘We’re very proud of our social media, and we think it has been very effective. To be truthful, I’m hoping that at the end of the year we are stood on the stage at the Car Dealer Used Car Awards with the best use of social media prize, because that’s what we had thought we would win last time.

‘I know a lot of dealers put a lot of time into their Twitter accounts, but we have found that there’s a lot of dealer interaction on Twitter – a lot of industry-specific dealerto-dealer stuff, which is great – but to me, Facebook is the correct platform for us, where customers interact with us. Even if it’s a like or a comment, it’s people physically clicking on our stories and interacting with us.’

‘Our dads work for us – we call them Pa-alot – and we do a lot of work when we get each car, but we don’t have a workshop. Yet. ‘Our aim is when a customer arrives to test drive a car, they can drive it away with them if they want to. So when a car comes in, if it’s due a service, we’ll get it done. We put a fresh MoT on every car, even if it has 11½ months on it.

‘But we don’t have our own facility to do the mechanical preparation work. That’s something we are in the throes of looking at - we have a limited amount of space on site - but I think that’s our next step. We can do paintwork on site, and dents and wheels and bumper corners and trims, but we’re lucky that we have some good local workshops we can deal with on the mechanical side.’

So things are looking bright. So what’s CarDealerMag.co.uk | 41

DASHBOARD. interview: caralot the next step? A second Caralot somewhere? ‘No, I don’t see that,’ says Caple.

‘I think what makes us different to any other dealer is us. That’s all. As dealers, we all buy the same cars, we all sell them. But what makes us unique is the people. Not just Nick and me, but the whole team.

‘If we were to open site number two, I feel it would lose the magic of who we are.

‘I think what will happen in the short to mid-term is we’d increase the numbers we stock and sell. We’re committed to our present site for the next three to five years, but if we reached the limit of the number of cars we could stock, we’d increase the profile stock. At the minute I have three £30,000 cars, in 18 to 24 months you’ll probably find us with 160 cars in stock, ranging from £5,000 to up to £40,000 – we’d look to

increase the quality of what we sell. That should increase the profit margin, as we’d be selling higher-value cars.

That would mean more customers taking finance, and would generate a better quality of part-exchange, so we would be able to sell that on our forecourt.

‘Maybe in five years if things are going very well we will potentially move to a bigger site and turn ourselves into a big car supermarket and maybe have 400 or 500 cars in stock. But we’ll see.

We’ve made it up as we’ve gone along, and we’ve done all right so far.

‘We want to treat people in a way that if our parents turned up to buy a car, they’d feel comfortable and happy with the service they received. We’re mummys’ boys, basically…

‘Without getting too waffly, people want to

What we drive Nick wears big thick glasses and can’t see properly and can’t drive properly. He likes something with heated seats, that he can aim and accelerate, or makes him look like a gangster rapper. He really needs a tank. That’s why he drives a six-litre Hummer sat on 24-inch wheels. If he’s not in that, he’s driving an E class or an F class, something diesel.

I’m different. I fancy myself as a driver. Okay, I’m rubbish at it, but I love it. I love fast cars. I like to be in 911 or a £25,000 AMG, something like that. At the moment I’m in a C63 AMG, and it’s the nicest one I’ve ever had – I expect it’s because I spent time working for a Mercedes dealer, it’s a car I’ve always aspired to.

by Jamie Caple

“

We’ve made it up as we’ve gone along, and we’ve done all right so far ��| CarDealerMag.co.uk

make their parents proud. And we’re trying to do that. Winning the Best Dealer at the Car Dealer Used Car Awards meant everything to us. It was the biggest night of our professional lives. I’m sure people there on the night saw that.’

And when will he finally put his feet up? ‘If, one day, we float the company and we all go and have a massive booze-up in London. That could be 20, 30, 40 years in the future, or may never happen. But that would be the vision, the end game, when we could sit back and say we made it, and lived the dream.

‘If I won the lottery tomorrow, I’d spend the lot on cars and then sell them and still spend as many hours at work as I do now.

‘I love it. Sometimes it’s difficult and sometimes it’s soul-destroying, but I wouldn’t change it for the world.’

Childhood friends to business partners Jamie and Nick lived on the same street in Derby. They were friends until they were about four years old – they even appeared in the same production of Puff the Magic Dragon.

Despite living so close to one another, they lost touch until they met again on a college bus when they were 16. The friendship was rekindled, and they have never looked back.

Nick, says Jamie, is the one who applies himself to a task, is process driven; the perfect foil for someone who is more flamboyant, more floaty and fanciful and who works on vision.

‘I read a book about Apple the other day, so let’s say I’m a Steve Jobs, the one with the vision and the ideas, and Nick is the Steve Wozniak, the one who makes the vision happen. It does work very well. We do make up for each other’s shortcomings.’

Customer experience It’s good to have a large social media following. When a customer writes positive things about you, lots of people see it.

But the opposite is true – if someone has a complaint and airs it in public, it becomes common knowledge.

Caralot are happy to take the rough with the smooth. Caple says: ‘We are happy to tell our customers on Facebook that if they feel we have let them down, or given you a bad experience, tell everyone who follows us.

Despite what some people think and have accused us of doing, we never, ever, ever delete negative feedback. We will respond to it, but not delete it.

‘For example, one customer went online before Christmas to say he bought a car from us the previous January, we were a total nightmare of a place to deal with, and that he lost two grand on his car and had to sell it.

‘What actually happened was that he bought a car, was offered an extended warranty and didn’t take it, and six or seven months after he had bought it, and had done 7,000 or 8,000 miles in it, he had some issues with it. He had to spend some money on his car.

‘There has to be a line drawn somewhere, when a customer has to take ownership of his car. But if he had talked to us, we’d have helped. We’d have said, look, you’ve been quoted £400 for work on your car, bring it to us, we’ll take it to one of the garages we deal with, and maybe get it done for £200 at trade price. If customers have an issue and don’t talk to us, and just want to bitch and moan, there’s not a lot we can do.

‘We sell cars. At some point, they will go wrong. They’re mechanical, so they will go wrong. In 14 years in this industry, I have never sold a car that hasn’t gone wrong at some point. It may be after an hour, a day, a week, a month, a year, sometimes five years, but it will go wrong. But we didn’t build it, and all we ask of customers is to let us know, and we’ll do what we can to sort it out.

‘Our tagline on our website is “the most enjoyable car-buying experience you will ever have” and we absolutely, categorically mean that. We want people to walk away from here with a smile on their face, whether or not they’ve bought a car.

‘We want them walking away feeling we have made them feel differently about our trade. Spending money should be fun – it should be a great experience.

‘One of our most prolific customer complaints was from a man who bought a Porsche Boxster from us. It had engine trouble so we had it back for three months and finally got a replacement engine.

‘He was ringing every day. He finally got it back and drove it away, and seven miles down the road the engine caught fire, with his wife in the car. There was a fault with the way the engine was fitted – we don’t deal with that garage any more.

‘But that man is now one of our best and most loyal customers. This year alone, he has bought three cars from us for friends and family. It proves that when you have a bad experience and something goes wrong, it pays to deal with it and approach it in the right way.

You can turn a negative into a positive.’ [CD] CarDealerMag.co.uk | 43

The new trade HPI Check App. With you, wherever you go.

Our new FREE to download app is packed with all the features you’ve come to know and rely on: HPI and ID Checks CAP Live, Glass’s and Market Values valuations HPI Spec Check and NMR check Additional SMMT Data and e-certs Recent HPI Check history

Download the app from the Apple App Store today ��| CarDealerMag.co.uk

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dashboard.

Around the world Dealer news from somewhere other than here

EUROPE

France saw car sales drop by seven per cent year-on-year in December, while sales jumped by 21 per cent in Spain. Car registrations in France declined to 163,382 vehicles last month.

Meanwhile, 73,440 cars were sold in Spain in December, with 855,308 sold overall in 2014 – a rise of 18 per cent on 2013 and the best annual performance since 2010.

USA

BMW saw car sales increase by 11 per cent in December, enabling them to hold off Mercedes-Benz and win back the US luxury car sales title for 2014. Annual sales for BMW rose by 9.8 per cent to 339,738. MercedesBenz ended the year with 330,391 sales, achieving a total 5.7 per cent increase.

New entry-level vehicles and SUVs, coupled with a resurgent stock market, are said to have contributed to the demand for luxury cars.

Abu Dhabi

Construction on a new $27.2 million Audi workshop and service centre is on course. Dealers at Ali & Sons Audi say work on the facility in Mussafah will begin early in 2016.

In addition to the workshop, the new facility will also house the largest Audi-approved used car showroom in the Middle East, with 60 pre-owned vehicles on display.

SINGAPORE

CHINA

BMW has agreed to pay $820m – around 700m euros – in dealer rebates for 2014, as the German automaker tries to avoid a potential dealer revolt in the world’s largest car market. Dealers argue the German automaker’s car sales targets for 2015 have been set too high, creating further tension between dealers and manufacturers. In a statement, BMW said the firm ‘and its dealer partners are fully aware the overall automotive market in China is normalising with growth at a lower but stable pace’. China’s Automobile Dealers’ Association said it was the biggest such subsidy in the country.

Police are looking into claims that customers have been let down by Volks Auto, after the dealership was reported to have been closed. Some customers said they had paid on average deposits of $20,000 to $30,000, but hadn’t yet received their vehicles. The total sum paid by 57 customers amounts to more than $1.5m. Police are investigating.

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CarDealerMag.co.uk | 45

DASHBOARD. interview: Dan Kennedy

Brits shy and reserved, Americans brash? No way...

��| CarDealerMag.co.uk

PICTURES: JONATHAN FLEETWOOD

Dan Kennedy at the Hendy Kia showroom in Hampshire

Dan Kennedy hails from Norfolk. No, not that one – the one in the States. He sold cars across the pond, then love brought him to England – and he enjoys our weather so much (after all, everyone can have too much sun and sand) that he’s still here. So what’s the difference between shifting metal over there to dealing with the polite, reserved Brits as Kia new car sales manager at Hendy’s big showroom in Eastleigh in Hampshire? He shares his thoughts with Colin Channon...

Have you always been into cars?

I grew up in Norfolk in Virginia Beach. My grandfather owned a dealership there, so I was into cars from a very young age. They sold that a long time ago, so I had to get a job away from the family business and I stayed with Chevrolet at a local dealer, working as a salesman, in about 1984. I worked there for four and a half years and then got my first management job with Ford, a local rival group. Back then, in the 80s in America, there was a lot of movement in the industry, with big groups buying out smaller mum and pa stores, and lots of legislation coming in to protect consumers. What we’ve been going through in the past ten years here, the States have been going through for the past 30 years. It was fair enough, as some of these old car guys, they really did some awful things. But it’s not like that now. We can hold our heads up now.

How much has the industry changed?

When I started out in the States, it was very different than today. Most Americans would buy only one of the top three brands – Ford, GM or the Dodge Chrysler. Cars like Honda and Toyota, they’d only just arrived – only a small minority of people were buying them. Ford people would always buy Fords, and nothing else. You could rifle through customers then – you didn’t have to worry about how you treated someone, because behind him there was another person waiting to buy a car. The internet wasn’t around, so customers were nowhere near as well educated as buyers today. Before they come to a showroom now, they know more about the car than the salesmen do.

Nowadays, there is so much competition as noone makes a bad car any more. There’s a different atmosphere. Before, there were the established brands, and many others had some issues

attached to them. That’s not the case any more, there is so much choice.

For me, it comes down to what can Kia and my dealership and my team offer the customer that they can’t get anywhere else? And that’s people.

What’s the difference between buying a car in the States and buying one here?

The biggest difference I see is how many cars are sitting on the ground for immediate delivery.

You can walk into most of the main dealerships in America and leave two hours later in your car, registered and insured… in the States, you can do all that with a phone call. It’s a different ball game here. You could probably do that here if there was a car in the showroom the customer wanted, and the service department could do the PDI real quick, but it’s just not done. You’d need to have somewhere to keep 200 cars in stock and have all the different models the CarDealerMag.co.uk | 47

DASHBOARD. interview: Dan Kennedy

“

manufacturer puts out… with most dealerships, that’s just not going to happen.

What does a sales manager actually do?

A sales manager’s job has changed a lot. There’s a lot of paperwork and admin to sort out, manufacturer stuff and government agency stuff and all the FCA regulations. Before, the sales department would be a close-knit team and there would be a lot of training and coaching to do. In the States still, they will have admin people to do the admin work. They want their sales managers to do what their title says – manage sales. They don’t want them sat behind a desk ticking boxes.

They should be working with their teams, role playing, coaching, and working on shortcomings.

We’re doing that here.

On this site in Eastleigh near Southampton, Hendy has three franchises, Kia, Ford and Mazda, and on Saturday mornings I’ll get them together and we role play, right from the beginning with the meet and greet. The group has taken it on board and other centres do it, but I don’t see that a lot at other dealerships. It’s worth doing.

You may have one salesperson who talks to a lot of people, but gets only two to test-drive. We want eight out of ten to get into a car. There’s a reason why he’s going from the meet and greet but not getting to the test drive. So we have to concentrate on that area. Another may test drive 80 per cent, but close only two deals. That tells you there’s something missing from the selection process, and that he’s putting people in the wrong cars.

Some sales people may be having trouble with GAP, or with something else, and say they need some help.

I spent time in the States running my own company, going around dealerships and coaching staff. I taught salespeople how to talk to customers, and I taught managers how to talk to staff. I enjoyed it. I never made much money doing it, but I had a great time!

How did you end up in England?

In 1992 I met an English girl in the States who was working for a year as a nanny. We moved to England. We subsequently divorced, and I met my second wife in England, too – she was actually the HR officer who carried out my induction at Hendy. That’s how we first met.

Maybe one day I’ll go back to the States, perhaps when I’m retiring, but my children have grown up here and are English, so I’m not sure.

And to be honest, we’re having a hell of a good time living in this country. I know a lot of people moan about it, but I think it’s what you make it.

I’m 50 in July, and my wife thinks it’s time I finally grew up...

Is it good being here?

Americans don’t get Europe and how close everything is. If I told an American I was going to Italy, they’d say ‘What, Italy? No way….’ But it’s ��| CarDealerMag.co.uk

People will travel 100 miles to another dealer if they think they can save £50.

Sometimes they don’t think of the bigger picture

Life in the USA Home: I grew up on a beach at Virginia Beach.

We lived in a big old four-bedroomed house a block away from the sea. You could wake up in the morning, smell the salt in the air, and go for a swim or go surfing. You could finish a swim, rub yourself down, put on a T-shirt and flip-flops and walk into a five-star restaurant.

Car: Ford F1 50 Quad Cab Lariot, four-wheel drive. A five-litre V8 engine, and power everything, satellite radio, leather, DVD screens in the back for the kids, the works, everything you could ever want in a truck.

Sport: Big baseball fan, and I followed the Boston Red Sox. I watched it, and played it. I like NBA basketball and American Football, but baseball was what I really followed.

a 45-minute flight, man, that’s all. Americans are just used to being in America. If they want sun or snow, there’s somewhere in America they can go.

They have every climate in the world in that one country.

I can’t wait to get out. We haven’t done it yet, but we plan to visit Germany and Russia. I want to see history. The only history America has is the native Americans, and they don’t get Europe and the incredible history there. I can’t wait to get to Rome, a place Americans will only think about and never go. Most Britons have passports. You can ask a lot of Americans, and a lot of them will never have had one. Personally, I think they’re missing out.

Dan Kennedy wants managers to manage – and not push paper...

Are all Yanks bold and brash, and the Brits shy and reserved?

Dealing with people in the States and dealing with people in the UK, there is no difference.

Apart from the accent.

There’s a belief Brits are more reserved, and Americans are brash and in your face. I don’t find that to be the case when I meet people.

I think it’s an accent thing. People open up to me because of the way I talk. We had a salesman called Taffy – he was from Wales, and had the accent – and it was the same for him. Customers believed him and trusted him because of his accent. When we talk, people listen, just because of our accents. The accent is a real ice-breaker with customers. Some think I’m Irish, Canadian, Australian – because I’ve been here so long I have picked up the way you speak, and I can’t stop

LIFE IN THE UK

calling people ‘mate’. And the way I say it makes me sound Australian. But when I’m on the phone to my folks, it’s all ‘how are y’all dooon’ because I’m from the south and it all comes back.

What’s a typical customer?

In the past few years, I have found there’s a lot less loyalty with customers. It feels people will travel 100 miles to another dealer if they think they can save £50. It’s all about the best deal, but sometimes they don’t think of the bigger picture – how they’re treated, the after-sales service, how you’re followed up, does the dealer care about you… Sometimes customers don’t do the right research, it’s all price, price, price. Sure, price is important, but there’s more to it than that. Here, they have a dealer who has been around for 100 years, there’s Kia’s seven-year warranty, we’re local

– there’s a good reason to buy from us.

How has the car-buying experience changed?

When I started, we were told we had two or three days to sell a car. From the initial time someone came into the showroom, in the next 72 hours they’d be buying a car from somebody. Now, that 72 hours is done up front. That’s the research time. So when they come into the showroom, they’re ready to buy a car, so it comes down to who does the best job with that customer.

Of course, we still sell cars to people we met yesterday, or a few days ago. But there’s a lot less of that. We have to be ready to wait on the customer when they arrive here. No longer can we say ‘when you’ve made up your mind what car you’d like, we’ll talk about giving you the

Home: I live in a three-bed townhouse in Basingstoke, a 45-minute drive from the sea.

But we have found a great little café on the seafront at Bournemouth, where we often go in the summer.

Car: Kia Sorento. Automatic, of course. I’m American.

Sport: I started following Liverpool when John Henry, the American who owns the Red Sox, bought them. Living in the south, my kids follow Pompey, which makes it interesting as I work in Southampton and my father-in-law is a Saints season-ticket holder. And I’ve tried to understand cricket, but I just don’t get it.

How can you play the same match for four or five days?

best price’. No, that’s no good, they’re not going to buy from you. You need to give them all the information they desire right now, and hope you’ve done a good enough job that they want to buy it from you.

It’s about meeting and greeting people, building a rapport and making a friend, making sure you treat the customers with the utmost respect. It’s all about people now. There are no bad cars. It used to be about the product. Not any more. It’s about people. How your salespeople interact with customers in the showroom. How the people who take the service calls interact with customers on the phone. That’s where we have to make the difference. [CD] CarDealerMag.co.uk | 49

FINANCE. IVENDI

New platform manages the digital journey A NEW platform being provided to the 2,000 dealers who use MotoNovo for motor finance will enable them to deliver a ‘connected digital journey’ to customers.

Nexus 2 uses technology from iVendi to allow management of all showroom and online finance traffic and is also designed to aid FCA compliance.

It integrates completely with iVendi’s Quoteware and Car Finance Checker online tools, already in use by MotoNovo dealers, and is scalable for use by everyone from single sites through to the very largest groups and franchise networks.

The platform is based around a responsive design and can be accessed in real-time through everything from a smartphone to a desktop personal computer.

Karl Werner, head of sales at MotoNovo, said: ‘Most motor finance providers offer their dealers some form of point-of-sale system but this is very much more.

‘Nexus 2 gives dealers the means not just to manage and process showroom transactions but also to really power online motor finance through tools such as finance calculators and prequalification.’ iVendi director James Tew added: ‘MotoNovo are one of the most forward-looking motor finance providers and it has been exciting to work with them on this project.’

��| CarDealerMag.co.uk

Finance firm staff get pedalling to boost charity coffers ONE of the UK’s leading motor finance providers has raised more than £7,000 for Cancer Research UK with a sponsored 250-mile static cycle challenge.

Together, 16 employees of Close Brothers Motor Finance covered the equivalent distance between the company’s Livingston base and its

Doncaster headquarters, with each member of the team pedalling more than 30 miles.

The static cycle, alongside a host of other fundraising activities, has helped the Close Brothers Motor Finance team in Livingston raise thousands for the charity, and make a significant contribution to the

company’s national fundraising total.

Scott Anderson, the charity champion for the Livingston branch, said: ‘We’re proud to have raised such a fantastic amount for this great cause.

‘The cycle was a challenge but it was a lot of fun and we would like to thank everyone who sponsored us and helped us to reach our total.’

Dealers relaxed about FCA regime, survey results show Almost half of respondents say new regulations will have ‘no impact’

D

ealers are not worried about the impact of the new FCA regulations, according to a new survey.

Auto Trader polled the views of 150 dealers about the Financial Conduct Authority rules – and 43 per cent of them felt the regulations would have ‘no impact’ on finance sold in their showrooms.

A further 19 per cent expect the impact of the changes to be positive.

One of the most significant requirements of the regulations is for dealers to ensure customers can make repayments for any loan agreement.

But more than half the dealers

interviewed for the survey (52 per cent) said they felt comfortable asking their customers sensitive financial questions, compared with 35 per cent who said they were not.

Paul Harrison, Auto Trader’s head of finance, said: ‘We know the FCA changes have been challenging for some, but the reality is most dealers have embraced the changes without too much disruption to their business.

‘On the whole, experience with the FCA itself has been positive. However, perhaps a little more needs to be done in terms of communication to help dealers confidently navigate the new finance landscape.’

A total of 56 per cent of dealers said they were either ‘very satisfied’ or ‘fairly satisfied’ with the FCA itself. But 52 per cent said they would welcome more guidance relating to car finance sales, and 13 per cent would welcome more training to feel comfortable asking customers sensitive financial information. Sixtyfive per cent urged more support from finance company partners.

The Auto Trader survey was run in the first week of December. Seventysix per cent of respondents work within the independent sector, three per cent for car supermarkets and 21 per cent for franchised retailers.

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In addition, customers will receive a £1,500 deposit contribution.

This seven-seater is extremely flexible, and like many MPVs has a middle row that can be configured in several different formations. The Mazda5 includes 17-inch Bright alloy wheels, leather seat trim with heated front seats, a Mazda navigation system on a 6.1-inch screen and integrated Bluetooth connectivity.

The plan is spread over 43 months and payments are £338.50 over 42 of those.

With the optional final payment of £6,698 included, customers will pay £20,915. Buyers can opt to pay a deposit contribution of just £800 to bring their monthly payments down to £320, while a £5,000 deposit will cut them to £220.

FIAT 500L MPW THE Fiat 500’s bigger big brother is the seven-seat 500L MPW MPV. In this example, along with the two extra seats, the 500L MPW features a 1.3-litre engine and 85hp for just £326 a month. The plan is over 36 months with zero per cent APR. Customers will have to pay a deposit of £5,794, although Fiat will also contribute £500. On this plan there’s no optional final payment, making the total amount payable by the customer £17,530.

However, those looking for a more affordable option can choose the Fiat i-Deal option. Fiat will supply a deposit contribution of £1,000 while customers

will only need to hand over £290. This plan is spread over 48 months and the APR goes up to six per cent, but it reduces the monthly payments to just £290.

Including the final optional payment of £5,767, the total amount is £19,687.

CITROEN C3 PICASSo THE Citroen C3 Picasso is cheaper than the two cars featured above. This quirkylooking MPV offers comfort and generous headroom. Citroen are currently offering a deposit contribution of £2,750 along with

the customer paying £2,279 towards it.

The plan is based on the C3 Picasso VTi 95 manual VTR+. This specification comes with great options as standard on top of the kit from the entry level VT. These include air conditioning, cruise control, LED daytime running lights, Bluetooth capability and an MP3 and CD player.

The plan is spread over 37 months and based on 4.9 per cent APR. Those opting for this deal will have 36 monthly payments of only £169. The optional final payment of £5,308 brings the total amount payable to £16,420.

time is money

H

ave you just come out of another quiet festive period – did you do enough to capture the leads you had in front of you?

I have written about traditional, digital and social marketing strategies over the past few months, so I hope these articles were of assistance through that period.

However, one thing I have yet to write about is the way we can assist in the acquisition of customers who visit your dealership. Maybe this can assist you all year round, and not just in November and December. In a report written in 2005, Datamonitor stated 9.1 million residents in the UK were classified ‘non-prime’. The financial crisis that hit the UK economy in 2008 caused significant job losses and also led the housing bubble to pop.

Coupled with the evergrowing population, I believe this customer segment has grown further. This means a great deal if your customers will be refused finance products by your mainstream credit providers. When this happens, First Response Finance is ideally suited to deal with this vast customer segment. As a company, we have been focused on this market since our incorporation in 1998 and are known for our great customer care by motor traders and consumers.

We have been voted The Best Sub-Prime Motor Finance Lender in the UK by Car Dealer readers for two years running.

This accolade is one of many; we are currently sat at number 37 in the Sunday Times Best Small Companies and have a consumer rating of 4.7 out of five on independent website reviewcentre.com.

If you have a customer who doesn’t get accepted by your mainstream lender, remember there is another option – and we are one that gives great customer service.

‘I believe the ‘‘non-prime’’ customer segment has grown since 2005.’

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 | 51

��| CarDealerMag.co.uk

DASHBOARD.

Google puts its driverless car to the test. bit.ly/driverless-test

MYSTERY SHOPPING

Volvo generous with discounts VOLVO is the most generous manufacturer when it comes to offering festive price cuts, according to a new survey.

Mystery shoppers from What Car? went on a haggling spree to try to secure the best deals they could. And the biggest new-car discount in Britain over Christmas was on a Volvo S80.

The saving of £7,312 was haggled, which represents a saving of nearly a quarter off the car’s list price. Volvo also boasted the most heavilydiscounted estate car – the Volvo V70 D3 SE.

APPOINTMENT

Motorpoint opens in Widnes after £1m investment MOTORPOINT has opened its latest branch in Widnes. The car supermarket company spent more than £1 million transforming the six-acre former Motor Nation car dealership, situated next to the A557, into its eighth site.

And Motorpoint Widnes got off to a flying start, selling more than 40 cars, worth close to £500,000, to customers

from across the North West on its opening weekend.

Motorpoint Widnes, which recruited the vast majority of its 50-strong workforce from the local area, stocks 450 new and nearly-new low-mileage cars from more than 30 different manufacturers, with instant access to a further 5,000 vehicles in group stock. The site features

extensive free parking, free wi-fi and a café open seven days a week.

Explained Kevin Cartwright, general manager of Motorpoint Widnes: ‘We have been absolutely delighted with the response from customers since opening our doors for the first time on December 27.’

Motorpoint now has a total of eight sites across the UK.

Twenty jobs axed as the UK’s last Cadillac dealership closes ‘You’re either very big or very small – there’s not much space in the middle’

T

he final dealership in the UK trading in Cadillacs has closed down.

Bauer Millett in Manchester, which also held franchises for Chrysler Jeep, Alfa Romeo and Abarth, provided prestige cars to the rich and famous, including several Manchester United players.

It closed down two days before Christmas, with the loss of 20 jobs.

Managing director Mitch Millett painted a bleak picture for similar dealerships, and said it was becoming tougher to survive in the market.

He told the Manchester Evening News that sales of Fiat’s Alfa Romeo and Abarth marques went ‘backwards’

by COLIN CHANNON @colinchannon over time, while sales of the group’s Chrysler and Jeep brands brought in to boost performance ‘never reached the levels’ expected.

‘The competition within the network was extreme and being a citycentre site the reality is our overheads were unusually high,’ he said.

‘Even if you could sell the cars the margins simply weren’t there – it was a very expensive business because of its location.

‘The reality is the motor trade is going through a revolution. More

businesses are closing down than opening, the industry is consolidating into big plcs, and the competition is much more fierce.

‘We have always been known for being a specialist car retailer and that’s become an increasingly more difficult market. Used cars are harder to buy and more challenging to sell. There’s more and more people looking, the internet has made it easier for people to buy at auctions, and it’s a lot easier for people to shop around from the comfort of their own home.

‘It’s an industry that’s polarising – you’re either very big or very small and I don’t think there’s an awful lot of space in the middle.’

Development role at Hyundai HYUNDAI Motor Group has appointed Albert Biermann as head of vehicle test and highperformance development.

Biermann’s last role was vice president, engineering, at BMW M Automobiles, where he was responsible for the dynamics of the company’s acclaimed road and race cars.

At Hyundai, he will be taking on responsibility for new high-performance vehicles and technologies.

SWANSWAY

Toy bonanza for kids at Christmas TWENTY charities recently benefited from the Swansway Group Santa Patrol, the seasonal fund-raising initiative run by the North West-based dealer group.

Swansway purchased £10,000-worth of toys and shared them out across their dealerships with instructions that they should be given away to disadvantaged children.

CarDealerMag.co.uk | 53

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big mike.

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

New road-tax rules are a boon if you want to get rid of those SUVs...

O

nce again, it’s that time of year where Britain goes into crisis mode, as we all start to dither, wither and panic about the onset of what’s affectionately known as ‘weather’ – or in the case of the Daily Express, ‘today’s headline’. For car dealers, it’s often a good thing. Not only can those of us with available space stock up on some nice bargain convertibles to sell on in five or six months’ time, but we can also sell anything with raised ride height and four-wheel-drive, no matter how shoddy the condition.

This year, however, the DVLA has given us an unexpected bonus. While I’m not a huge fan of the new road-tax rules, which prevent traders like myself from driving ‘whatever’s in stock with a tax disc’, the upside of all this is there’s now an option to pay your road tax by direct debit, and to do so monthly.

What that means is that if you buy an SUV that costs £500 a year to tax (and for that, you no longer even get rewarded with a decorative paper circle), you can actually pay for it at the rate of £42-ish per month.

And, in anyone’s book, £42 sounds a hell of a lot cheaper than £500.

As a result, with long nights, short days, wet roads and icy winds all around us, more and more people are opting for the SUV option to ensure they’ll still be able to make it as far as Sainsbury’s on one of the three days per year that it usually snows south of Hadrian’s Wall, and that has to be worth £42 a month of anyone’s money, doesn’t it?

Yes – with arse firmly about face, the government’s road tax system, which was designed to encourage people to buy and run less-expensive cars, is actually making it easier for some of them to drive filthy gas guzzlers.

Look at it this way. If you’re buying a car on finance (and more than 60 per cent of people who buy their own cars do just that), then you can simply roll the cost of road tax into whatever your perceived monthly payment might be.

So for £350 a month, rather than £310 a month, you can be trundling round your local housing estate in your very own BMW X5, complete with road-roller sized tyres, gangster glass and chrome-tipped exhaust pipes. Pure style.

The sad thing is, for many people, this is entirely reasonable behaviour, and once ensconced in the perceived safety

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

and invincibility of their very own 4x4, the cost of the road tax will soon be forgotten.

Okay, so you can tax a Ford Fiesta for a whole year for less than one month’s road fund on a big SUV, but then you can’t intimidate lesser mortals at the wheel of a 1.0-litre Fiesta, especially not one of those girly metallic purple ones.

Cynical, then, I may be. But complaining I am not, because for the past few years, getting your stock right for such vehicles has always been a guessing game. If you didn’t shift them in the winter, chances are you’d be lumbered with them taking up stock on your forecourt for the remainder of the year, when they looked like inefficient, impractical, unstylish and overpriced lumps of metal – which, of course, they are.

This year, though, I’ve had no trouble. I even got good

...it’s easier for some people to now drive filthy gas guzzlers. money for an extremely shabby old Freelander that was belching out plumes of black smoke on the over-run – it didn’t matter, apparently, as for only £20 a month (based on tax rates for older cars), the 4x4 security it offered the owner was enough to convince her that she needed it for the winter months.

I did try to explain at the time that this particular Freelander, a £795 px to clear, wasn’t even four-wheel-drive any more, as the propshaft to the rear wheels had been removed by a previous owner to make it more fuel efficient, and also get round the problem of fixing the notoriouslyflaky viscous coupling that plagues Freelander Mk 1s, but she didn’t listen.

All of which made it a little embarrassing the other week when I saw the very same Freelander stranded in a ditch by the side of the road.

The one saving grace – it was being pulled out of the gloop by a Y-reg Discovery I’d sold to a different customer just a few weeks previously.

The road tax on that one was £27 a month, and he appeared to be earning it back by judicious use of a towrope and a flashing orange roof beacon…

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 | 55

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bAGGOTT.

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

Ten things I want to see in 2015 (and yes, that includes the new Nova) I

’m hoping 2015 will be a year of comebacks.

And I’m not talking S Club Seven, the Tories or Manchester United. No, this year I’ve got a few motoring desires that I’d like to see brought back to life far before the Tories are reinstated or Rachel shakes her stuff again on Top of the Pops. Although, what lad of the nineties wouldn’t like to see the latter?

I’ve come to the conclusion that some car manufacturers need to return to their roots or at least take a cursory glance over their shoulders at days gone by to please the masses – and by masses, I obviously mean me.

What am I talking about? Well, who hasn’t looked back at badges, models, or whole manufacturers and thought the world would be a far better place if they were still around today? I do it almost daily, usually when I’m rolling through one of the near-endless 50mph zones that seem to have infected our motorway network like an email-leaking virus from North Korea. So, in no particular order here is my Top 10 Bring Back Motoring Musts For 2015.

I’ll start with Ford and the XR badge. Regular readers will know this to be a subject close to my heart as I’ve been trying to push up the values of XR2s in these pages for years in the hope my pension pot will have more than baked bean money in it come quit-it-all time. But, seriously, I can’t get on with Ecosport – it sounds ridiculous and although I’ll admit they’re bewilderingly brilliant I just don’t get the ‘Eco’ bit. I say ditch the badge and call them XR instead. Far more retro cool.

I’ll stick with Ford for a minute. In 2015 I want to see the Capri return. I don’t want a Probe. Or a Cougar. Or a Mustang. I want a Capri. One that men who eat baked beans on toast, drink pints of larger and listen to eighties songs on cassette would like. It needs a big bonnet, a V8 and absolutely must not have an Ecosport badge.

Saab needs to return. Sweden can keep a lot of things – the meatballs you get at Ikea that taste like dog food, Abba, oh and Ikea – but they can’t keep Saab. We want that back. I spotted one of the last 9-5s the other day and although I know it’s simply an Insignia that’s been done up for a night out at the working men’s club, it still looked ace.

The world needs more Saabs.

Controversial one for me – and for the sales manager at the Vauxhall dealer that wrote in last month and asked me to stop kicking his beloved brand every month, I have good news: There is at least one Vauxhall I’d like to see make a triumphant return, and that’s the Nova. Why? Well they made it incredibly easy to spot the type of people who

1

2 3

4

lived off McDonald’s and dressed in Burberry caps from a safe distance because I’ve never met an owner who hadn’t spent at least five months in a young offenders’ institute.

They were like traffic cones – absolutely everywhere and to be avoided at all costs. The problem now is that ‘those’ types buy anything and everything – at least when you spotted a Nova you knew.

Lotus needs to get on with making a new Esprit. And an Elan. Yes, we all love the Exige, and yes we all love the Elise. And, yes, some people pretend to love the Evora. But what we all really want is that Esprit, that was showcased by the former CEO who had more razzamatazz up his sleeve than Paul Daniels, to actually roll out of Hethell.

Oh, I’ve got another Ford one. Cosworth needs to come roaring back. Yes, their owners often lurked dangerously close to those from point 4, but their cars had whale tails

5

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James ‘... hairy nipple rugged, Baggott testosterone-fuelled EDITOR’S NOTE: now you know why we’re not worried a car company will try to recruit him...

bloke of the car industry’ and massive turbos, which made everything all right. The world needs more massive spoilers.

Although few could describe Lamborghini as being anything other than the open-shirt, huge hairy nipple rugged, testosterone-fuelled bloke of the car industry, I still think there’s room for them to make a car with more hamslicing vents and pedestrian ankle ruining spoilers than the Huracan. What they really need is a new Countach. And it must only be available in white.

While we’re on the subject of supercars – Bugatti needs to get on with the job of making a replacement Veyron.

If I see another ‘special edition’ that’s come as a result of a tie-up with a luxury brand that no one this side of Roman The Chelsea would be impressed with I’m going to pop over to Germany and knock one up myself. Project brief: 300mph, 2,000bhp, wings. Simple.

Citroen needs to make a hot hatch that’s Saxo VTS good and hasn’t got a DS badge on it and, while we’re talking French, Peugeot needs to resurrect the Rallye badge.

But not on a 508.

And lastly, Volkswagen needs to make an Up R. Sod a GTI version, just go straight for the jugular and stick 250bhp in one. I’d buy it. So would everyone else.

And that, ladies and gentlemen, is a 900-word example of why I try to write for a living and don’t run a car company. Just imagine how scary that would be…

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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 | 57

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THE UK’S

#2

MOST BOUGHT VEHICLE*

THE UK’S

#3

MOST BOUGHT VEHICLE*

1,000s of the UK’s most bought vehicles available at Manheim† Start searching today at manheim.co.uk *

Source; SMMT ‘Best Sellers’ 2014 year to date list (http://www.smmt.co.uk/2014/12/november-new-car-market-grows-smmt-welcomes-government-low-emission-commitment/) Figures based on 2014 sales January to February plus 2015 stock forecast.

†

0844 856 4600 www.manheim.co.uk ��| CarDealerMag.co.uk SP667_206 22.12.14

trading up.

Sad case of ho, ho, woe Fundraiser ANDY ENTWISTLE experiences a few more headaches getting our cars ready for sale...

T

’was the season to be merry. Peace and goodwill to all men, and all that...

Well, Christmas for Trading Up was anything but. We have a stock of three, with exactly none in a position to be sold.

My idea of utilising the busiest online search day of the year (December 24, actually) a dim distant memory...

Firstly to our royal Rover. It has been in the bodyshop for two months.

Not that it needs much, you understand, but more that it was being fitted in around other work as a favour, and also I’ve been a bit too busy to chase it.

I’m told it’s now ready and waiting for us in Sandhurst. However, it transpires the trailer we bought to help transport our stuff around is too narrow to fit in on…

That doesn’t bode well, given the Rover is hardly the widest car in the world, so as it stands we have a royal Rover AND a trailer that we need to get collected. Hopefully then we can get it valeted and up for sale.

That’s the good news. Those who read this column regularly will know we also have a Mk1 Subaru Impreza WRX. As you will see earlier in the mag (page 14 onwards,

in case you missed it), as soon as I arrived in the office with the car it got ‘repurposed’ by Baggott...

Editorial decided a group test would be in order so on a sunny – but bitterly cold – day in December, Baggott and I headed out with a brace of Subarus for the photo shoot. Everything went well.

In fact, I think the Mk1 performed admirably, until Baggott grabbed the keys, electing to drive it home. Twenty minutes later I received a call: ‘I think I’ve broken the Scooby….’

He had. A cursory check and a quick test drive suggests it’s nothing more than a split turbo hose, but there isn’t much room in the engine bay and I need to get her on to a ramp somewhere to get it sorted. We’ve had a fair amount of interest in the car, so if I can find someone local to have a look, then hopefully it’s a quick fix, a valet and then a bit of charity profit.

And that brings me on to the last one, our Discovery. Last month I explained we discovered she had a cracked cylinder

head. A new one was ordered from Turners and fitted by an independent.

Unfortunately, despite his best efforts, he simply couldn’t get her running right. After a couple of weeks of back and forth, I placed a call to a good friend at Harwoods.

Brett has come to our rescue before, helping overhaul our XJS this time last year, and as Harwoods hold official Land Rover franchises, I figured it was time to go to the specialists. Chris Power at Basingstoke took her in and they checked everything and believe it’s a problem with cylinder four, so the head has to come off again. We’ve already spent a fortune on the Landie, so this is all damage limitation now.

I think a new plan of action may need to be deployed. We’ve been bitten by unexpected bills a few times recently by buying online and often unseen (excluding the Subaru, which was great until Baggott broke it!).

So I think it’s back to the lanes and eyeballing the stock before I take the plunge. For newer stock I can see the benefits of online bidding, but for older stock it’s clear there is nothing better than kicking the tyres!

STORY SO FAR...

Suzuki Vitara Paid: £1,500 Spent: £300 Sold: £1,950

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

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

Jaguar XJS Paid: £2,200 Spent: £0 Sold: £2,600

Audi A6 Allroad Paid: £2,250 Spent: £500 Sold: £2,650

Ford Fiesta XR2 Paid: £1,900 Spent: £250 Sold: £2,650

Total £1,900

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• Uninsured Driver Cover CarDealerMag.co.uk | 59

IMPORTANT UPDATE

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The Super Centre will commence Corporate Auction Events on behalf of major FN50 listed Contract Hire and Leasing companies, Financial Institutions, Daily Rental companies and motor manufacturers supported by innovative defleet solutions including vehicle storage, handover pods, refurbishment and inspection facilities.

For further information, centre inspection or remarketing advice at this world class corporate venue please contact Michael Tomalin 07808 791210 or email mt@cityauctiongroup.com

Download our FREE iOS/Android Live Bid and Auction Apps Now Full listings can also be viewed on our website www.cityauctiongroup.com

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��| CarDealerMag.co.uk

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REAL DEALS.

Big-breasted Italian will leave all red-blooded men gasping for more It was difficult to tear ANDY ENTWISTLE away after casting loving looks in the direction of this beauty

I

f you don’t lust after a classic Italian then you aren’t a red-blooded male – and

no, I’m not talking about Sophia Loren (although I wouldn’t turn her away). I’m talking about Alfas and Lancias, which are still just about within the reach of us normal people.

Most of them, that is. This Fulvia shows some are already beyond us.

There is more than just the Italian beauty to link this car to Sophia Lauren. This Fulvia is the Fanalone, which translated from Italian means ‘Big Breasted’. This refers to the two rather unsubtle spotlights at the front, although how this compares to Ms Loren, I’ll leave to you.

Say the word ‘Fanalone’ and Lancia fans’ eyes will light up. Based on the final versions of the Fulvia 1600 HF, it was prepared for amateur drivers. This model also featured a more powerful engine, a fivespeed gearbox and a limited slip diff. It came ready for rallying, and nowadays commands good money as it is eligible for many of the famous historical rallies. The Fulvia was launched at the 1963 Geneva Motor Show and remained in production right through to 1976. Our car sits just in the middle of the production run in 1970. Lancia produced a four-door and two two-door

versions, the coupe and the sport fastback, with engines ranging from one litre through to the 1584cc that we find in this HF Fanalone. All the engines were V4 format, making them extremely compact, and given the small size and light weight of the car, they all turned a decent speed. However, it’s the 1.6HF in the Coupe that is the most sought after and this Fanalone is top of the tree, producing a healthy 115bhp at 6000rpm.

Every generation has its hero cars, with reputations often built on the rally stages of the world. Lancia has always had a part to play and before the Integrale they had the Fulvia. When it was introduced in 1963, everyone realised it was only a matter of time before Lancia pursued racing with it. The HF model offered a modest power boost and a significant weight saving over the already light standard car. Bumpers were removed along with the radio, sound-deadening glass was replaced with Perspex, and the steel bonnet, doors and boot were by aluminium. These are rare cars, with only 1,200 produced and as so many were written off at the side of a rally stage or in a ditch, very few are left. This car, which is currently sitting with Brookspeed Specialist Cars in Eastleigh,

has benefited from a complete nut-and-bolt restoration, prepared by Jim Stokes Workshops, and is quite simply stunning. She comes with a folder containing receipts for restoration work totalling thousands. In effect, she is a new car. When you take her out for a spin, it’s clear this car is better than the day it emerged from the factory.

Restorations of this quality are rare and when they are on a car as rare and drop-dead gorgeous as the Fanalone, it makes you wonder why you would spend the same amount of money on a modern Italian stallion. It may not be as fast, but it’s better looking and way cooler than anything that has come out of Italy in the past 20 years.

As the asking price for cars like this is normally well north of £50,000, it’s likely to put it out of range of most of us – but someone is going to end up with an exceptional bit of Italian history. If you fancy having an affair with an Italian beauty, give Martin a call at Brookspeed on 02380 641672.

A beauty – the Lancia Fanalone CarDealerMag.co.uk | 61

forecourt.

Land Rover Discovery Richard Gavan, UK product manager for Discovery Sport, tells Car Dealer what he expects from the newest member of the Land Rover family What are your aspirations for the Discovery Sport in the UK? Historically, we’ve had the number one-two slot in the class with Evoque and Freelander and we expect that to continue. Capability is at the car’s heart but it also has modern looks and is extremely versatile, and that’s resulted in a big chunk of the orders we’ve already had coming from Freelander owners. The fact it offers seven seats is a big draw, too.

The seven-seat configuration is new for the Discovery Sport. Why the change?

Well, you’re right that the Freelander did not have seven seats, but we were adamant a Discovery had to come with seven seats.

It’s the same platform as the Range Rover Evoque, which has been extended to allow the flexibility of not only a sliding middle row of seats which gives you more legroom or luggage room, but there’s that third row of seats, too.

What will be the Discovery Sport’s biggest selling point?

The seven seats will be one of them. People can see the advantage of having that option for occasional use and it will help resale values, too. It also offers versatility with space for families and it is very capable off road, which you’d expect from a Land Rover.

What will be the more popular model – this, or the Evoque?

Too early to say, really. We hold the one and two positions in the sector currently with Evoque and then

Freelander. The Discovery Sport will definitely sell more cars than Freelander in the United Kingdom over its lifetime but where it finds its feet is hard to gauge right now. We expect it to deliver a sales uplift of at least ten per cent on Freelander.

How is the order bank looking?

It’s very strong. We are approaching 2,500 sales without the car being on sale yet. Customers can go into a dealer and spec a car and they’ve been able to do that since September. It arrives in showrooms on January 22. Those order numbers compare well to Evoque. That car had a very strong order bank before it arrived, too.

How should dealers tackle selling this car?

The way we’ve billed Discovery Sport is it’s the most capable and versatile in the segment. The dealer training has focused on the versatility attributes and how customers can use it. Buyers will be family car buyers – the seven seats help – but features like the option of having seven USB points around the car will help, too. Young families will be big buyers.

Will it be a majority of existing owners or mostly conquest buyers?

A mix of both. It’s early days, but the customer split in the order bank has been very mixed, with some conquest customers from other premium brands. When it comes to rivals for this car we’ve been careful to position Evoque as a luxury model and the Discovery Sport as a versatile model. Key competitors will be from BMW X3, Audi Q5 and probably Volvo XC60.

on test

It’s the first model in a new family of cars from Land Rover, but can the Discovery What is it?

The long-awaited replacement for the Freelander and the first in a new family of Discovery models.

Land Rover has split its range into three distinct ‘pillars’. There’s Range Rover, with the Sport, the Evoque and the full-fat Rangie. There’s the Defender range, which is set to be retired in current classic form and replaced. And then there’s Discovery. The Disco Sport is the first, and where it sits in the range will become clear as the new models are unveiled. They’ll undoubtedly be a larger model and we’d expect to see a baby in the range, too. That clear? Good.

What’s under the bonnet?

A diesel engine. Yes, just the one. For now at ��| CarDealerMag.co.uk

least. Jaguar Land Rover has an all-new set of power plants waiting in the wings, dubbed Ingenium, but they’re not ready yet so for launch the Discovery Sport features the tried-and-trusted 2.2-litre SD4 unit that featured in the Freelander.

It comes in six-speed manual or nine-speed automatic guise and has 190bhp and 420Nm of torque. Emissions are 161g/km and it’ll return 47.1mpg. It’s no revelation, but there’s little wrong with it either.

What’s the spec like?

Not too bad at all. Most importantly, there’s a new infotainment system which Land Rover – and sister firm Jaguar – have been crying out for. There’s a new suite of apps that run on a smartphone and can be displayed on the car’s screen. They look pretty basic, but the sat-nav worked well. Four trims are available – SE, SE Tech, HSE and HSE Luxury – all with varying levels of the usual extras. Options include an

Sport

Stadium seating

As it’s a member of the Discovery family, Land Rover was adamant it had to have seven seats. These rise in ‘stadium’ fashion as they go back

Name game

You might be wondering why it gets the ‘Sport’ title. This, says Land Rover, will become clear as the rest of the Discovery family arrives

the knowledge

play it safe

The new Discovery Sport has a pedestrian airbag that pops out of the bonnet and has been awarded five stars by Euro NCAP

Sport deiiver? James Baggott heads to Iceland to find out armrest cooler and warmer box, seven USB points and headrest-mounted iPad holders. It’s pretty competent in the towing stakes, too, with capacity for 2,500kg.

What’s it like to drive?

That’s the tough question, because it was actually hard to tell. We spent three days at the launch of the Discovery Sport in Iceland, tackling terrain that wouldn’t look out of place on the Moon. However, the landscape was so extreme it gave us very little idea what it would be like to drive on a normal road. We can report it’s incredibly competent off road, though, We found the ride a little hard, but then that could have been the dreadful surfaces, and it was a little loud inside, too, but again that was probably the studded tyres.

What do the press think?

Autocar said the Discovery Sport’s ‘fine combination beauty, versatility and good driving characteristics’ bring a new sophistication to the class. Auto Express gave it four stars and agreed it was a stylish and versatile seven-seater. It’s like they both read the same press pack… Even PistonHeads was impressed, adding: ‘It’s not quite as Fisher Price as the Freelander.’

What do we think?

There’s no doubt the Discovery Sport is a marked improvement on the Freelander – stick them side by side and it makes the old model look positively old.

The interior is a vast improvement. However, with no time on ‘normal’ roads on the launch, it’s impossible to report on what it would be like as a daily driver.

Model: Land Rover Discovery Sport Price: From £32,395 Engine: 2.2-litre SD4 Power: 187bhp, 420Nm Max speed: 117mph 0-60mph: 9.8s MPG (comb’d): 44.8 Emissions: 161g/km Residual values (three years):

tbc

target buyers: Young families that need the option of seven seats and space for child paraphernalia

the rivals:

Audi Q5, BMW X3, Volvo XC60

Key Selling Points: 1. Seven seats make it very versatile 2. It’s a real 4x4 and properly good off road 3. Its fresh design looks great

Deal Clincher: The Discovery Sport will sell on its looks alone, but remember it’s brilliant off road, too CarDealerMag.co.uk | 63

forecourt.

Citroen DS4 looks

INSIDE

Very classy, very comfortable – and look out for the leather dashboard. It was stitched by a team of pixies...

You’ve got to admit, it’d look good outside your home. Just don’t try to open those rear windows...

the knowledge

Model: Citroen DS4 DSign Price: TBC Engine: Puretech 130S&S Power: 129bhp Max speed: 123mph 0-60mph: 9.9s MPG (comb’d): 56.5 Emissions: 116g/km Residual values (three years):

tbc

target buyers: Couples wanting a few creature comforts in their car

the rivals:

Citroen’s own C4 is cheaper

Key Selling Points: 1. It’s nice and comfy 2. That leather dash is cool 3. It’s good about town

Deal Clincher:

The interior – it’s classy and will impress the neighbours ��| CarDealerMag.co.uk

UNDER THE BONNET

on test

The new Puretech engines will be here soon and they’re good – much punchier (and greener) than the present ones

Colin Channon takes a trip in the new DS4, negotiating the What is it?

The DS4 has had a bit of a tweak, with better engines, which will be available by the spring, offering a little more oomph, better economy and which are a bit kinder on the environment. It’s still basically the same car, which has gone down a storm in other parts of the world, but has seen disappointing sales in the UK – possibly because there’s not a big enough difference to the C4, so consumers aren’t happy paying the extra just to get a DS badge.

a six-speed manual gearbox was designed and built in France, delivering plenty of torque from low revs and across a broad brand. With its new-generation turbocharger, direct injection, variable intake and exhaust timing system, it’s quite an improvement on its predecessor. The new diesel engines, designed to anticipate the Euro 6 standard, have improved efficiency, offering maximum power of 88 kW (120bhp) at 3,500 rpm and maximum torque of 300Nm at 1,750 rpm.

WHAT’S UNDER THE BONNET?

WHAT’S THE SPEC LIKE?

There’s a new 1.2-litre turbocharged Puretech engine, producing 129bhp. Torque is increased by 44 per cent, and it boasts 56.5mpg. CO2 emissions are cut by 19 per cent. The PureTech 130 S&S engine with

Pretty impressive, which is why it’s a bit of a mystery why it doesn’t sell better in the UK. It has all the toys – and more – you’d expect, and the dash looks great.

The boffins said it takes 15 hours to wrap and stitch it

We talk to Citroen’s Eric Apode, Vice-President, Products and Business Development.

The DS3 was something very different for Citroen, being glitzy and funky and colourful. Was its launch something of a gamble for you?

I wouldn’t call it a gamble, but it was something totally new to us, and totally new to the market – something funky, with a lot of personalisation, a lot of funny colours. It was a way to differentiate the Citroen brand and a way of attracting some new customers.

It has been a major success in the UK in particular. Did that come as a surprise?

We are very satisfied with the UK – it’s number one or number two market in the world for the past couple of years, it’s remarkable. Every year we are selling 25,000 cars in the UK. I would not say I have been surprised by that, but it does give us immense satisfaction.

Lots of manufacturers are freshening up their models to gain maximum benefit of PCP deals – they want to be able to offer customers something different when their contracts near completion. The DS3 has been very successful, so how difficult would it be to change a winning formula?

In the near future we will be looking at different engines and improving technology and making it better and more beautiful, but we will be sticking to the same concept and the same spirit. It has been a big success and a big achievement and showed it was possible

for Citroen to do something different and something funny, and at the same time very successful, so we do not to change it, we want to improve it step by step, and every week and every month we are working to improve this car.

Is the DS3 aimed at women drivers?

No, no... It has a 50-50 split of men and women owners. The DS4 does have a bigger percentage of male owners, and to be honest, before I learnt of the split I personally would have guessed the DS3 would have had more women owners. But actually the sale is very well balanced. The DS5 is very much more for men, and the DS4 also has more men owners, but not such a big percentage.

The DS4 hasn’t been very successful in the UK, although it has sold very well in other countries. Why hasn’t it taken off here?

Frankly, I’m not able to answer that.

The DS3 has been more successful than we expected in the UK. We will continue to improve the DS4 because it has a lot of qualities and has its own personality and it deserves success, so we will continue to push this model. We need to work on a different way of marketing it. We do believe in this car and it has been very successful in Spain and Russia – and France, of course.

The DS brand is selling well worldwide.

Where is it most popular?

China is an improving market for DS and we have created a specific factory and created a good network of 70 or 80 dealers, and we are expecting to sell between 25,000 and 30,000 cars there each year. China is booming and we expect that to continue and we will continue to

invest in the market there. There is no doubt it is a big market of the future.

The DS brand will be separating from the Citroen brand and will stand alone – like Lexus and Infiniti. Does that mean there will be separate dealerships?

We are right at the beginning of the story of the DS. We are very pragmatic, so when the market is big enough we will open some DS stores. We will have them in Shanghai and Beijing and big countries, and in cities in China, and we opened one recently in France. We will gradually open more and more. We will have separate DS stores when the market is big enough.

The strategy at the moment is to open DS stores in 200 of the most important cities in the world, in all the major regions.

And that includes the UK? Of course.

So, to get it right, you’ll have some Citroen dealers selling Citroens and DS, and DS dealers selling just DS models?

Yes. In wealthy municipal areas, we would see the DS stores.

When will that happen?

I can’t give you a specific date, but we will be looking at the first half of 2015.

What is next on the drawing board for Citroen? There has been talk of an SUV. Yes, we are looking to double the range of cars in the DS brand from three to six by 2016, 2017 and 2018, and in the mid-term we are looking at a premium model SUV.

rush-hour traffic in Paris. It’s just as well he wasn’t sitting in the back seats, mind... all, and it looks very classy. There’s a very effective blind-spot monitoring system and rotary Xenon headlights, plus massage seats. Sitting behind the very nice steering wheel, it oozes class.

WHAT’S IT LIKE TO DRIVE? Very pleasant. Okay, the speed won’t set the pulse racing (0-60 in a tad under ten seconds) but it’s more of a family-about-town car, so that’s not really an issue. It’s nice and light and dealt comfortably with the rush-hour Paris traffic (and if it can cope there with all the madness on their roads, it can cope anywhere). The petrol engine is almost silent. Two drawbacks for me, both concerning the rear doors. One is that the windows can’t be opened – if it’s a family car, to

me that means the people in the back should at least be offered fresh air. And the ‘wing’ at the top of the door is design over practicality – every time I opened and closed the door it whacked me on the shoulder.

WHAT DO THE PRESS THINK? In its write-up, the magazine Evo said: ‘It’s more pleasant to waft around in than it is to tackle corners. Citroen might argue that the DS4 therefore meets its brief – this is a luxury car, rather than a hot hatchback – but readers would probably want a little more involvement.’

WHAT DO WE THINK? It’s a very nice car. Inside, it feels classy and the driver is cosseted and driving is a real pleasure. It’s not fast and thrilling, but then it’s a family car, and not meant to be. Why doesn’t it sell better in the UK? Not sure – but I wouldn’t buy one, purely because of those rear doors….

CarDealerMag.co.uk | 65

FEATURE.

the

influencers After a great 2014, the industry’s biggest names look forward with ‘cautious optimism’

��| CarDealerMag.co.uk

PICTURES: STEVE HALL With thanks to The RAC Club, Pall Mall royalautomobileclub.co.uk

MEET the influencers. Or, in other words, the people who shape the car market. For 2015, we’ve brought together the largest group of industry bigwigs since we started Automotive Influencers in 2012. From the manufacturers we have presidents, CEOs, managing directors and sales directors. We also have dealer groups and representatives from the supplier world, a well as search

engine giant Google. We asked them all a few questions designed to reveal their thoughts for the year ahead. In almost every case, they looked back on a fantastic 2014 and forward to 2015 with cautious optimism. After all, it’s the year of a general election and global economic uncertainties. Here’s what they had to say...

CarDealerMag.co.uk | 67

FEATURE.

��| CarDealerMag.co.uk

PICTURES: MAX EAREY

comment

by COLIN CHANNON IT was a memorable occasion.

The industry’s great and the good gathered in the sumptuous surroundings of the RAC Club in Pall Mall – what a place that is, and our thanks go to them for their hospitality – delivering their thoughts on the year ahead.

There were two major themes that were constantly aired: how does the industry come to terms with the ever-changing demands

of digital, and the requirement of manufacturers, dealers and suppliers to get their customer service absolutely spot on. It has never been more important to look after our customers.

The following pages go into more detail. But when people like this speak out, the industry as a whole would do well to listen...

CarDealerMag.co.uk | 69

FEATURE.

Mark

Ovenden FORD: Stream of new models – including the Mustang – should make for a big year

Last year was the best year for Fiesta sales since 1996

What opportunities do you think 2015 will present?

It will be an exciting year for Ford. In the past 12 months we’ve introduced our fully-refreshed range of Transit commercial vehicles and consolidated our market-leading position in the UK. We’re now entering a year which we expect to be our busiest for two decades, with the launch of six new vehicles, including the Ford Focus, Mondeo and S-MAX, as well as the much-anticipated Ford Mustang. 2015 will see the launch of our Vignale premium-brand experience.

What do you regard as the biggest threat to the motor industry in 2015?

Economic recovery across Europe continues to be patchy and slow, which exacerbates the chronic over-capacity in the market, a condition that too few manufacturers are prepared to address. If sterling stays relatively strong, Britain will continue to be the ‘regional honey pot’ for all manufacturers. It will also mean the market will remain super-competitive, with supply at least equal to demand.

Are there any reasons to be cheerful in 2015?

Yes, the UK economy is growing, consumer confidence is strong and our new ranges of cars and commercial vehicles are proving a smash hit everywhere. We also announced 318 new jobs at our state-of-the-art Ford Dagenham engine plant, tied to a £475 million investment in the production of high-tech, low carbon 2.0 litre diesel engines. The UK’s manufacturing operations continue to produce more than 1.5 million engines annually for Ford vehicles across the world.

What are you most excited about right now?

The amazing stream of new Ford models on their way to dealerships. I cannot wait to see the legendary Ford Mustang on UK roads, in righthand-drive configuration for the first time – it will be something very special.

Can you see the current period of strong new car sales continuing? If so, for how long?

2014 was a stronger year for sales than we anticipated, so it is likely the growth rate across the industry may slow in 2015. We have consolidated our market-leading position in the UK, exceeding 100,000 sales in the months of September and ��| CarDealerMag.co.uk

Job title: Chairman and managing director, Ford of Britain Lives: Essex Drives: Ford S-MAX Titanium X – waiting for the Mustang and Focus RS! Family: Married, two daughters aged 19 and 17 Education: Graduated from Nottingham University in 1985 with a BA in Geography.

Honorary Doctorate, University of Nottingham, 2014 Career: Joined Ford in 1985 as a sales analyst in Daventry district office. Previous postings

Mini CV

October 2014 alone. Last year was also the best year for Fiesta sales since 1996, and Fiesta, B-MAX, Focus, C-MAX, Kuga and Galaxy were all placed in the top three of their respective market segments.

Do you think the motor industry needs to change, and where should that change come from?

There is always room for improvement. This is something we are taking very seriously in 2015, working closer than ever with our dealer partners to transform Ford’s customer experience.

include pricing director and small car brand manager in Ford of Europe, as well as Ford of Britain marketing director from 2006.

Returned to Ford of Britain as managing director in 2011 after three years as managing director and president of Ford Russia.

Appointed chairman, Ford of Britain, in 2013 Number of dealerships: 500, including up to 65 FordStores and 100 Transit centres Winter hols: skiing or sun? Sun, in, on or under water Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Get a life!

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Customer choice – and expectation – is always growing, which is why Ford continually strives to meet and exceed these expectations.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes. Showrooms provide an unrivalled opportunity to experience the latest products first hand – something you cannot do online.

Matt

Harrison TOYOTA: We need to shake off the image that our industry is difficult to deal with

Our new products are finding favour with our customers

What opportunities do you think 2015 will present?

While there is uncertainty ahead in 2015, I’m confident of another year of solid growth for both Toyota and Lexus brands. Our biggest opportunity, however, is in adapting the way we do business to suit our customer. I believe this will bring the biggest gains for us in 2015.

What do you regard as the biggest threat to the motor industry in 2015?

From a sales point of view, the Russian economy and currency will have a significant impact on volumes in 2015.

Are there any reasons to be cheerful in 2015?

In comparison to some others in Europe, the UK car market is buoyant and growing. This is certainly a reason to be cheerful.

What are you most excited about right now?

Toyota and Lexus have had a strong 2014. The third consecutive year of growth for the Toyota brand, and fourth for Lexus, show our new products are finding favour with new and existing customers. For 2015, both brands will bring another wave of new product to the market. I’m particularly excited to be launching the Mirai fuel cell sedan, proof that Toyota is leading the way on future technology.

Can you see the current period of strong new car sales continuing? If so, for how long?

Following 2013’s significant growth in sales, we’ve seen the rate of growth slow a little in 2014. I still expect to see further growth in 2015 as other European markets continue to be sluggish and the Russian market contracts. I believe new-car growth can continue as long as interest rates remain low, customer confidence remains high and used-car demand remains strong.

Do you think the motor industry needs to change and where should that change come from?

There is still a certain stigma attached to the industry in the eyes of the consumer. I believe the industry must continue to look at other sectors to improve customer experience and shake off this image of ‘difficult to deal with’. We must adapt to the needs of the customer, not the other way around.

Mini CV

Job title: President and managing director, Toyota GB Lives: Sevenoaks, Kent Drives: Landcruiser Family: Married with two children Education: Graduated with a BSc (Hons), Financial Accounting, Hull University Career: 2000, joined Toyota GB as general manager, vehicle marketing; 2003, director, marketing (Toyota); 2005, general manager, corporate planning, Toyota Motor Europe; What should dealers be focusing on to ensure growth and a sustained future in 2015?

We are focusing together with our dealers on improving communication across the business and ensure we remove the obstacles between us and the customer. The easier we are to do business with, the more likely we are to grow sustainably.

Customer recommendation is a priority area of focus in 2015.

With the advance of the internet, will the

2008, director, Lexus Europe; 2011, commercial director, Toyota GB; 2013, president and managing director, Toyota GB. Also ten years with Ford, working in sales and marketing in its UK, European and global operations Number of dealerships: 183 Toyota centres, 45 Lexus Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Apple all the way traditional plate-glass showroom still be with us in 10 years’ time?

It is clear a significant element of the decisionmaking process is now conducted online with the average customer visiting fewer than two showrooms prior to purchase. I believe the complexity of the transaction will always necessitate a degree of face-to-face consultation and the showroom visit will remain an essential part of establishing the relationship and trust customers are looking for.

CarDealerMag.co.uk | 71

FEATURE.

Nick

Connor VOLVO: Launch of all-new XC90 will be exciting and show what we’re capable of

Consumers will want to interact outside normal business hours

What opportunities do you think 2015 will present?

While the market will likely show only modest growth next year, we expect continued strong growth in the premium segments with a move away from diesel derivatives towards highefficiency petrol and petrol-hybrid powertrains.

We believe our brand and products are very well positioned to take advantage of these developments.

What do you regard as the biggest threat to the motor industry in 2015?

In the UK, potential interest rate increases pose the greatest threat to consumer confidence and spending power. A probable slowdown in China would have the most significant adverse effect on those manufacturers who have been heavily reliant on growth there.

Are there any reasons to be cheerful in 2015?

2015 will see the arrival of the all-new XC90 in the UK and we have huge expectations for it. I’m confident that first drives for media and customers will garner a great reception. Our dealers have done a brilliant job with advance orders, but this is just the start.

What are you most excited about right now?

XC90. It’s long awaited and the first car on our new SPA platform, powered by our Drive-E engines and showcasing our new design language and touchscreen HMI system. It’s more than a new model; it shows what Volvo is capable of and also what to expect from all future Volvos.

Can you see the current period of strong new car sales continuing? If so, for how long?

The market is likely to grow only very slightly next year but that will still represent an historically strong market for the UK. Do you think the motor industry needs to change – and where should that change come from?

The motor industry needs to adapt to meet changing and diverse consumer requirements and expectations. Consumers want to have a bespoke experience that suits their specific needs and will often want to interact with dealerships and ��| CarDealerMag.co.uk

Mini CV

Job title: Managing director Lives: Abingdon Drives: Volvo XC90 Family: Wife, two daughters Education: Cardiff University, The College of Law, Guildford Career: Solicitor in private practice then worked at Hartwell plc as in-house solicitor.

Joined Volvo in 1995 as group solicitor and

manufacturers outside of normal business hours.

One size will not fit all.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

It’s all about customer experience. We have a strong brand with a great heritage and an even brighter future and, as the only Swedish car company, hold a unique place in the market. We want customers to see what sets Volvo apart through every aspect of their sales and aftersales experience.

company secretary. Since 2004 worked in various director roles: network; customer service; sales and, since 2011, managing director Number of dealerships: 109 Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese?

Neither, Thai Mobile tech: Apple or Android? Apple With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Volvo had huge success in 2014 selling our First Edition all-new XC90 online only, but our dealers are playing a vital role in delivering the perfect brand experience to these customers.

The role of showrooms will undoubtedly change but they will still be an important part of our sales process.

Lance

Bradley mitsubishi: Alternative-fuel market is still in its infancy and needs nurturing

We must make sure customers’ expectations are met and exceeded.

What opportunities do you think 2015 will present?

2015 should see continued economic growth in the UK, with the benefits that has for the motor industry in terms of customer confidence and spending. For Mitsubishi, the growing awareness of the benefits of plug-in hybrid vehicles like our Outlander PHEV will present significant opportunities.

What do you regard as the biggest threat to the motor industry in 2015?

A general election always presents a level of uncertainty for the wider economic outlook, and the motor industry can’t be immune to that.

From Mitsubishi’s point of view, the biggest threat is potential changes to the government’s plug-in car grant. It’s important this doesn’t suddenly reduce dramatically. The so-called ‘alternative fuel’ market is still in its infancy and still needs nurturing.

Are there any reasons to be cheerful in 2015?

There are always reasons to be cheerful! The UK’s economy is in perhaps the best shape of any in Europe, we work in a fascinating industry and Mitsubishi are going from strength to strength.

And next year we launch our new L200 pick-up truck – our best-selling vehicle over the past decade.

What are you most excited about right now?

The continued success of our Outlander PHEV has shown there is strong demand for new, cutting-edge technology in an affordable vehicle.

Being at the forefront of what could be the biggest change in the car market for 100 years – customer acceptance of a fully-competitive electric vehicle – is tremendously exciting.

Can you see the current period of strong new car sales continuing? If so for how long?

Yes. Customer behaviour generally changes over a period of time, not suddenly. I can see the 2015 new-car market increasing another five per cent or so over this year’s figures.

Do you think the motor industry needs to change – and where should that change come from?

The motor industry changes all the time as customer demands and expectations change, and then there are legislation changes on top. It’s up

Mini CV

Job title: Managing director, Mitsubishi Motors in the UK Lives: West Berkshire Drives: Mitsubishi Evo FQ-440 when I have to get where I’m going. Jaguar E-type Series 1 coupe when it doesn’t matter if I don’t Family: Lovely wife, step-daughter and dog Education: Mechanical engineering degree

to us as manufacturers to lead that change, and, in partnership with our dealers, make sure the customers’ needs and expectations are met and exceeded.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

We’ve been discussing sales capacity with Mitsubishi dealers for two years now, as our sales have more than doubled in that period. This will still be a key focus in 2015, but now it’s not just

from Salford University.

Career: Twelve years at Ford. Now 14 at Mitsubishi, the last five as MD Number of dealerships: 122 now, growing to 130 in 2015 Winter hols: Skiing or Sun? Sun. Takeaway time: Indian or Chinese? Neither, as I prefer to cook. But Indian if forced to choose Mobile tech: Apple or Android? Apple on sales but aftersales too, which is always the bedrock of our business.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

I think there will always be a need for dealerships – you can’t get your engine oil changed over the internet, for example. I think the way we’re set up at Mitsubishi, with smaller, and therefore lower cost, showrooms puts us in a good position to cope with future demands.

CarDealerMag.co.uk | 73

FEATURE.

Chris

Newitt Jaguar Land Rover: Launch of XE and Discovery Sport will make 2015 memorable

Strong brands with strong products can be confident of a good year

What opportunities do you think 2015 will present?

The launch of the XE undoubtedly gives us an opportunity to transform the Jaguar brand. Combine that with the launch of the Discovery Sport, and we have a truly memorable year ahead.

What do you regard as the biggest threat to the motor industry in 2015?

The economy, combined with the election. It will drive uncertainty headlines, regardless of the underlying situation.

Are there any reasons to be cheerful in 2015?

At Jaguar Land Rover, definitely, for all the obvious reasons, but within the industry as well. The TIV has been very strong in 2014 and I don’t see that momentum simply disappearing in 2015, so I think strong brands with strong products can be confident of another good year.

What are you most excited about right now?

The sheer scale of opportunities that exist for Jaguar Land Rover and the pace of change required for us to fulfil them. As fast as we pedal, we have yet another chance to pedal even faster – to be working for two great British brands at this time is amazing.

Can you see the current period of strong new car sales continuing? If so, for how long?

Prior to 2008, the eight-year average of the TIV was about 2.45 million, and while the global economy still provides a level of uncertainty, I think we will see fluctuations around that number rather than any fundamental shifts for the foreseeable future.

Do you think the motor industry needs to change – and where should that change come from?

Yes, I do think it needs to change. If we look at how much other retailing sectors have changed and embraced the new digital era, the successful businesses have transformed their business model and made customers’ lives easier as a consequence. Yet the motor industry, largely, still operates in the same way it did 20 years ago. That lack of change cannot continue if we are to be a modern, dynamic retailing business. ��| CarDealerMag.co.uk

Mini CV

Job title: Sales director, Jaguar Land Rover Lives: South Buckinghamshire Drives: Currently an XJ but hopefully an F-Type coming next Family: Two beautiful daughters aged seven and 11

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Customer service, proper service! Not chasing a score on the survey which achieves nothing – and, in fact, can do more harm.

With the advance of the internet, will the

Education: Royal Holloway and Bedford New College, geography degree Career: Pharmaceuticals, then Ford, Volkswagen for 15 years and now Jaguar Land Rover Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple traditional plate-glass showroom still be with us in 10 years’ time?

All the research we have done suggests customers like seeing the cars in the flesh, so yes.

I think the main changes will be in the ownership proposition, rather than the selling proposition.

Tony

Whitehorn hyundai: Introducing so many new models will make it an exciting future

We can buck market trends with a bow wave of new product

What opportunities do you think 2015 will present?

The automotive industry is expecting 2015 to be quite a challenging year as the market is likely to be relatively flat. Moving from a market in 2014 which has grown by nine per cent into a flat 2015 will mean manufacturers and dealers will have to work harder and smarter to sustain growth.

What do you regard as the biggest threat to the motor industry in 2015?

Uncertainty is undoubtedly the biggest threat to the motor industry in 2015, with two key determining factors with the potential to undermine consumer confidence. The first cause for uncertainly is the UK general election in May 2015. The second major potential cause is driven by intense speculation or changes to interest rates in the next 12 months.

Are there any reasons to be cheerful in 2015?

Hyundai has multiple reasons to be cheerful in 2015 and it’s driven by our bold plans for enhanced and all-new vehicles. Part of our Product Momentum strategy, we will see 22 new models introduced by 2017. Next year, those include New Generation i20 and i20 Coupe, New i30 and i30 Turbo, New i40 and more.

What are you most excited about right now?

The automotive marketplace and our customers are changing more than ever before, and at an exponential rate. This is both a challenge and an opportunity. When such change happens, there are three possible responses. At the end of the change you can wonder what happened, during the change you can wait to see what happens, or at the beginning of the change you can make things happen. Part of the Hyundai DNA means we fall into the latter category. We are a proactive organisation in the UK, and that is what will continue to make life very exciting in the coming months.

Can you see the current period of strong new car sales continuing? If so, for how long?

We anticipate market growth to slow dramatically in 2015, particularly in light of uncertainty surrounding the UK general election in May, economic growth and the potential for a change in interest rates. However, Hyundai is prepared for

Mini CV

Job title: President and CEO Lives: Berkshire Drives: Hyundai i40 Family: Wife, and three adult children Education: Cardiff University, BSc (hons) Economics Career: 1982 Rover sales analyst; 1989 Toyota,

this and believe we can buck market trends with a bow wave of new product.

Do you think the motor industry needs to change – and where should that change come from?

The motor industry is still very traditional in many aspects. It needs to embrace the different ways in which customers want to buy cars, and do so in a more transparent manner. Hyundai is monitoring this shift in consumer behaviour at our digital store in Bluewater with a view to cascading our learning throughout the wider dealer network.

national training manager, 1999 Toyota sales director; 2002 Toyota operations director, 2005 Hyundai Motor UK managing director, 2011 Hyundai Motor UK president and CEO. Number of dealerships: 160 Winter hols: skiing or sun? Skiing Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Android What should dealers be focusing on to ensure growth and a sustained future in 2015?

Dealers should be focusing on retention in their sales and aftersales departments.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

I believe showrooms will continue to be with us for a while yet. However, we as an industry need to adapt from some of our existing practices to embrace changing consumer habits and integrate these into our existing structures.

CarDealerMag.co.uk | 75

FEATURE.

Ken

Ramirez renault: 2014’s fast-growing franchise is aiming to continue writing its success story

Our industry needs to up the ante when it comes to customer service

What opportunities do you think 2015 will present?

Following record-breaking sustained growth in the UK, which has seen the Renault group outpace the market growth for 20 consecutive months, claiming the title of 2014’s fastest- growing franchise, we’re looking forward to further growth. Stunning new products, including New Clio, the all-new Captur crossover and the 100 per cent electric ZOE, have been bringing new customers to the Renault brand. In 2015, we’re excited about all-new, rear-engined, rear-wheel drive Renault Twingo, which brings real innovation to the city car segment. It’s also a momentous year for our LCV range, as all-new Trafic enjoys its first full year of sales. Then, later in the year, an all-new C-Segment crossover takes Renault into new territory.

What do you regard as the biggest threat to the motor industry in 2015?

Being able to keep up with the digital revolution.

Customers now expect instant online interaction with brands, right through the ownership cycle.

And online now encompasses much more than a website; it includes social media and the ability to access content across multiple devices, from PCs to mobile phones and tablets.

Are there any reasons to be cheerful in 2015?

Absolutely. The car market has enjoyed doubledigit growth for two consecutive years and Renault has been able to capitalise on this buoyancy to double our sales volume in just two years, growing from 55,500 units in 2012 to just under 110,000 in 2014. Our dealer network is enjoying the benefits of more sales per outlet and better profits.

What are you most excited about right now?

Expanding our dealer network. Our sustained growth over the past two years has seen renewed interest in the Renault and Dacia franchises from prospective investors. With several geographical open points in the UK, I’m excited about welcoming new partners into our franchise.

Can you see the current period of strong new car sales continuing? If so for how long?

Following two unprecedented years of 11 per cent and ten per cent growth, we’re expecting a more modest increase of around six per cent in 2015. ��| CarDealerMag.co.uk

Mini CV

Job title: Managing director, responsible for Renault and Dacia operations in UK, Ireland, Malta and Cyprus Lives: London Drives: Renault Mégane and Twizy Family: Married with one child Education: Bachelor’s degree in Electrical Engineering, Georgia Institute of Technology Career: Joined Renault in February 2013 from Nissan, where I was managing director

Do you think the motor industry needs to change and where should that change come from?

Our industry needs to up the ante when it comes to customer service quality. Consumer behaviour has changed, yet our industry is still playing catch-up.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Focus on customer service quality above all else.

Dealers’ ability to make purchase and ownership

of Nissan Latin America and the Caribbean, responsible for all of the Nissan and Infiniti brands’ operations in the region, covering 37 countries. Joined Nissan in 2002 following more than ten years at Motorola’s Automotive Electronics and Telematics Communications Number of dealers: 134 Winter hols: skiing or sun? Sun – I was born in Puerto Rico, after all Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple

experience as professional and hassle-free as possible is important in today’s highly-competitive market, and the key to breeding customer loyalty.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Car showrooms will always be relevant. When you’re spending several thousand pounds, there’s no substitute for being able to see, feel and drive your new car before you buy it.

Jeremy

Thomson MAZDA: The next 12 months look promising with the launch of so many exciting new cars

The power of digital and social has not been fully exploited.

What opportunities do you think 2015 will present?

For Mazda, 2015 is a year of unprecedented launch activity – the lifeblood of any brand. We will launch three major new car lines and two significant model upgrades in the space of just six months. We also have a huge opportunity with PCP customers as the highest-ever number of contracts mature with significant equity following the focus this received in recent years.

What do you regard as the biggest threat to the motor industry in 2015?

While consumer confidence has recovered to precrisis levels, it remains fragile. The relationship between this and car demand is clear. Although base rate increases have been parked, it remains a concern for buyers, along with anxiety about tax rises post-election and real disposable income.

Are there any reasons to be cheerful in 2015?

Absolutely! The UK car market has recovered strongly and demand remains pretty firm.

Through 2014, Mazda has grown at twice the industry level of year-on-year improvement (+21 per cent against +10 per cent), and with the opportunities that new-car launches bring, I am confident this trend will continue. Being recognised as Which? Car Manufacturer of the Year 2014 is a great foundation for progress.

What are you most excited about right now?

The Mazda brand is about to enter a transformational year – in 2015 virtually 100 per cent of our cars will feature our breakthrough Skyactiv technology and new Kodo styling. Our dealerships will soon feature a new visual identity with real kerb appeal and the network is motivated and looking forward to a very rewarding year.

Can you see the current period of strong new car sales continuing? If so, for how long?

I think, on balance, the industry will level out with growth at a lower level than seen in 2014. The second half of 2015 is certainly harder to predict.

For Mazda I am planning growth of at least 10 per cent as we launch new cars.

Do you think the motor industry needs to change – and where should that change come from?

Yes. Consumer behaviour has changed

Mini CV

Job title: Managing director, Mazda UK and Ireland Lives: Tunbridge Wells Drives: Mazda CX-5 Sport and MX-5 25th anniversary edition Family: Wife Lianne Education: BSc. Psychology

Career: 1989-2001 Ford Motor Co; 2001 to present, Mazda UK Number of dealerships. 137 in the UK, and 20 in Ireland Winter hols: skiing or sun? Both Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Apple

dramatically in the past 15 years and automotive has not been at the forefront of this, although we are seeing more innovation in recent years.

The power of digital and social has not been fully exploited.

John Lewis in retail and Apple in consumer electronics should be a goal for our industry.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Outstanding customer satisfaction, but also making the buying and ownership journey easier and more emotionally rewarding for the consumer.

What Harley Davidson achieves in motorbikes,

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

The ‘traditional dealership’ will be at the heart of auto-retailing for a very long time but I believe it will increasingly be more layered in the same way grocery shopping ranges from a brand’s hyper- and super-market, to the local convenience store and home delivery.

CarDealerMag.co.uk | 77

FEATURE.

Neil

Williamson seat: New modern dealerships being rolled out will be better for staff and customers

Nothing works better in the long run than positive word of mouth

What opportunities do you think 2015 will present?

Another strong market with lots of opportunities for Seat to continue its growth story!

What do you regard as the biggest threat to the motor industry in 2015?

Confidence in the British economy, possibly as a result of the general election and uncertainty in European economies.

Are there any reasons to be cheerful in 2015?

Yes. Firstly, the economy is continuing to grow, with our own industry up in both fleet and retail. Secondly, closer to home, the Seat range is continuing to expand, starting in January with the arrival of our all-new all-road lifestyle estate, the Leon X-PERIENCE, in showrooms. Our dealers, too, are making great progress, making substantially more profit in recent times than they have for a while.

What are you most excited about right now?

The rollout of the new, modern Seat corporate identity across our entire 130-site UK network.

Crucially, it will allow our partners to deliver a customer experience which mirrors the attractiveness and quality of our products, with a friendly and vibrant feel. They won’t just be pleasant places for customers to browse and spend time in, they will also have the added bonus of being much nicer places in which to work.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes, for the foreseeable future.

Do you think the motor industry needs to change and where should that change come from?

Yes, absolutely. Research consistently shows customers are increasingly better informed before visiting showrooms, with actual visits down to around 1.5 per transaction. With less footfall, it’s essential we support our dealers to deliver a great initial sales experience, as well as a subsequent high-quality after-sales one.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

To deliver a great customer experience, time and again. Nothing works better in the long run than ��| CarDealerMag.co.uk

Mini CV

Job title: Director, Seat UK Lives: Bedfordshire Drives: Leon Cupra 280 Family: Married with two children Education: Engineering degree at Leeds University Career: Joined Nissan as a network director in 1999, then moved to the international division in Paris in 2001 as general manager sales, before moving to Mercedes in 2003. Became network director in 2003 and managing director, retail group, in 2005 until 2012.

positive word of mouth, especially on a local level.

Outside of that, they also need to embrace the opportunities which digital marketing, on a more local and regional level, can provide.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Absolutely, they will live side by side with the

Joined Volkswagen Group in February 2013 as director, Seat Number of dealerships: 125 Winter hols: skiing or sun? I’ve got twin young boys, so the sun would be slightly more appealing. To be honest, I suspect it wouldn’t be overly relaxing anyway!

Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? The former.

You won’t often find one of their devices more than just a few inches away from me, wherever I am! internet. As with plenty of other industries, it’s becoming increasingly key to be where the customers are. Whether that means offering something different to the norm, like pop-up or bespoke retail sites in shopping centres, or attending local charity or sports events, manufacturers and dealers need to keep pace with the times.

Daksh

Gupta marshall motor group: It’s vital our industry starts to attract fresh new talent

There are not many countries I can think of where I would rather operate

What opportunities do you think 2015 will present?

For Marshall, 2015 will continue to deliver growth opportunities, both organically and through acquisition, as we continue to see market consolidation.

What do you regard as the biggest threat to the motor industry in 2015?

There are a number of headwinds that could make 2015 challenging: consumer confidence dropping, election uncertainty, regulation, OEM pressure on targets as a result of volume reduction in markets elsewhere and the supply-to-demand ratio of used cars going out of kilter.

Are there any reasons to be cheerful in 2015?

The industry has had two fantastic years in 2013 and 2014. While 2015 could be a little more challenging than the past two years, we have to look at the positives. The UK economic outlook is positive, interest rates remain low, the pound is in our favour, which helps while mainland Europe is in the doldrums. We have also sold a vast number of PCPs and service plans to customers, which will generate a significant number of repeat sales for us next year. There are not many countries I can think of where I would rather operate.

What are you most excited about right now?

In the past six years we have grown from an underlying £250m to £1.1bn. Half of that growth has come organically and half through acquisition.

Many of the acquired businesses have been for sale as they have under-performed. We have recently further strengthened our management team and I am really excited about working with them to unlock the latent potential in some of these underperforming businesses.

Can you see the current period of strong new car sales continuing? If so for how long?

The stars have been aligned for the past few years, which has driven new-car sales: low interest rates, exchange rates, PCP strategy, European markets struggling and a strong professional dealer network. Those stars remain aligned, so I see new-car sales continuing. However, we must be aware that the SMMT records registrations, not sales. A forced UK market could damage RVs in the long run, which is not healthy for anyone.

Mini CV

Job title: CEO Lives: Harpenden, Hertfordshire Drives: Range Rover Vogue Family: Married to Kenzie with two boys, Ajay (15) and Myles (2) Education: Studied computer science at Oxford Brookes Career: 1992-1996 sales exec/sales manager in Nissan dealer network, 1997-1999 GM at

Do you think the motor industry needs to change – and where should that change come from?

We need to address the talent shortage in the industry. We have all been fighting over talent in recent years and all that’s done is put salary rates up, but in doing so gear the business to a much higher cost base. We can’t keep burying our heads in the sand and hope people will suddenly join us. We need to attract new people to our industry.

This is a topic everyone keeps talking about but doing nothing game-changing about.

Camden Retail, 2000-2007 franchise director at Inchcape, 2007 chief operating officer at Accident Exchange Group Plc, 2008 group MD at Ridgeway, 2008 to date CEO at Marshall Number of dealerships: 72 sales outlets Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple What should dealers be focusing on to ensure growth and a sustained future in 2015?

People, people, people!

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Absolutely it will be. While some customers will be happy to purchase online, the internet does not give the driving experience of what is an emotional purchase at the end of the day.

CarDealerMag.co.uk | 79

FEATURE.

John

O’Hanlon ridgeway: More emphasis than ever on dealers proving a great customer service

The industry is a very different place to even the one I started in

What opportunities do you think 2015 will present?

The continued increase in digital presence.

Customers have never had so many different ways of sourcing information and engaging with the dealership. We need to make sure we can respond appropriately and on a timely basis. The continued increasing retention opportunity on retail PCP sales. And, finally, ensuring we sell the benefits of the latest drive technologies, whether electric or hybrid.

What do you regard as the biggest threat to the motor industry in 2015?

For dealers, I think it will be the uncertainty around the general election. Customers and businesses enjoy certainty. A potential change of control in government, or even no clear winner, will see some customers potentially delaying a purchase until a clear outcome is known.Otherwise, just common sense around regulation and especially on F&I. We have some great products that will protect customers that shouldn’t be sidelined. The industry understands and respects TCF. Are there any reasons to be cheerful in 2015?

Yes. As the economy continues to recover and consumer confidence grows, then demand across our business should remain strong. Our brand portfolio has some incredible new product arriving that will generate more opportunities to sell more cars than ever.

What are you most excited about right now?

We are redeveloping a number of our sites to ensure we have the capacity and facilities. Our aim is to achieve fantastic facilities that will help us achieve true world-class levels of customer service.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes. Looking at the UK key indicators (economic growth and interest rates) and continued product improvement (especially engines) we are in great shape. The only thing I can see stopping us would be a large economic shock somewhere in the world such as another Eurozone crisis, and a slowdown in a key economy. So short to midterm, it will continue… after that, you can get your crystal ball out! ��| CarDealerMag.co.uk

Mini CV

Job title: CEO Lives: Wallingford Drives: Range Rover Family: Wife Karen, three children Education: Cardinal Newman High School and Glasgow University

Do you think the motor industry needs to change – and where should that change come from?

I think the industry is a very different place to even the one I started in. The culture, drive and professionalism of the industry is evident. There seems to be a real genuine focus on delivering great customer service from dealers. More help and incentives for training for the teams who deliver that experience would make sense.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

We know when a customer makes contact,

Career: Seven years with Grant Thornton, and 16 years with Ridgeway Number of dealerships: 34 sites Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple

generally they have done their research. We need to value that contact and respond in a professional timely manner and make the customer feel special.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Certainly showrooms will exist although they may look very different. Customers still want to come and touch and feel the product, understand the latest technology. I envisage much more interactive technology, allowing each customer to do better, easier research at a dealership.

John

Tordoff JCT600: Manufacturers need to have realistic ambitions for sales in 2015

People are the key; always have been, always will be!

What opportunities do you think 2015 will present?

Providing the political posturing of Cameron, Milliband, Clegg and Farage doesn’t derail everyone’s confidence in the run-up to the general election in May, there will be plenty of opportunities for those with a clear vision of outstanding customer service and a strong desire to make the year a successful one. The vehicle parc is growing, the economy is in good shape and consumers are spending money. Happy days!

What do you regard as the biggest threat to the motor industry in 2015?

Manufacturers’ relentless pursuit of market share.

While all manufacturers we represent share the opinion that the market will remain flat in 2015 at about 2.45m registrations, almost all are targeting growth of between five per cent and 15 per cent; that equates to another 250,000 registrations, according to my calculations, which the market just isn’t ready for without distressed selling, which will drive margins down and weaken residual values.

Are there any reasons to be cheerful in 2015?

Plenty! Interest rates are low and will stay low, unemployment is falling and should continue to do so, and GDP is set to remain at a steady rate of growth. Consumers are out in force and are looking to spend their hard-earned cash with those who provide great customer service.

What are you most excited about right now?

The marketplace is changing rapidly as online and in-store blend into one and it’s an exciting time for those who are are moving with the times.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes, but not at the current rate. The market needs to catch its breath and move forward at a slower, more sustainable pace, but it’s difficult to see that happening when manufacturers are relentlessly pushing to maintain or improve their market share.

Do you think the motor industry needs to change and where should that change come from?

Yes, it needs to keep pace with rapidly-changing consumer behaviour but the change needs to come

Mini CV

Job title: Chief executive Lives: Harrogate, North Yorkshire Drives: Porsche Cayenne Family: Wife Joanne plus three sons and one daughter Education: Yes, I went to school but didn’t bother with university Career: Articled clerk at local chartered

from within. Providing we stay open-minded and accept consumers want to do thing’s ‘differently’, there’s absolutely nothing to fear. People are the key to this; always have been, always will be!

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Blended online and in-store strategies together with keeping a very close eye on the cost base, which is rapidly increasing as manufacturers insist we build bigger, more expensive facilities to represent their brands. Come the next downturn,

accountants before joining JCT600 as an accountant in 1988. Then became a general manager followed by promotion to role of chief executive in 2004 Number of dealerships: 48 retail outlets Winter hols: skiing or sun? Sun every time Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Apple many businesses might not be sustainable.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

I think so. While the internet provides consumers with the world’s biggest source of information, nothing can beat the experience of visiting a showcase for the brand. Why do millions of people queue for hours to go on a ride at Disney every year when they could have the same ‘virtual’ experience at home? Because it isn’t and never will be the same!

CarDealerMag.co.uk | 81

FEATURE.

Ken

Savage

Focus on having the right people in the right numbers in the right places

perrys: Getting it right first time with our customers is the best way to grow business

What opportunities do you think 2015 will present?

Hopefully we will see a stable economy in 2015, allowing us to grow our business. Growing consumer confidence will present us with excellent opportunities to work with customers to deliver what they require, profitably – provided Eurozone economic uncertainties and an election don’t interrupt the UK’s economic progress.

What do you regard as the biggest threat to the motor industry in 2015?

Two things spring to mind: since the recent recession was caused primarily by excesses in the finance sector, it is understandable that more regulation will be seen to be a requirement in preventing another one. However, overregulation risks getting in the way of providing what customers need and the regulators need to understand more fully how the industry works before leaping in and changing things. The other area relates to the relationship between us retailers and the manufacturers. Economic recovery often brings unreasonable demands in the way of investment and targets. What is needed is balance and closer attention to what customers actually want.

Are there any reasons to be cheerful in 2015?

Yes, many. Most of our manufacturer partners are producing interesting new product. Economic growth looks less fragile, despite Eurozone concerns. Real wages look like overtaking cost-ofliving increases for the first time since the recovery started. The recovery seems to be reasonably broad based, which will be good for car retailing.

What are you most excited about right now?

Since the recession hit in the middle of 2008, we have been focused on survival while taking what opportunities we could to grow the business. That meant working with as low a cost base as we could manage. Now we can focus on building a better business through the right people in the right numbers in the right places.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes, new-car sales are closely linked to the strength of the economy. Pre-recession, the new-car market was consistently around 2.5 million per ��| CarDealerMag.co.uk

Mini CV

Job title: Chairman Lives: Milton Keynes Drives: Range Rover Family: Two boys, 17 and 19 Education: Manchester

Polytechnic

annum. There is no reason why this should not be achieved again. The current strength of the market owes a lot to people deciding they can now take those postponed replacement decisions.

Do you think the motor industry needs to change – and where should that change come from?

More evolve rather than change. I think digital is still going to grow massively and will continue to impact on how we trade. There are more cars made than there are ready buyers, which leads to a strange business model. However, this is unlikely to change any time soon.

Career: KPMG, Skipper Group, Quicks Group, Perrys Number of dealerships: 15 franchises over 25 locations Winter hols: skiing or sun? Sun Takeaway choice: Indian or Chinese? Indian What should dealers be focusing on to ensure growth and a sustained future in 2015?

We won’t be able to achieve the manufacturer’s targets unless we have enough sales people in the showroom. If we provide what customers want, and pay attention to getting it right first time, we will grow through customer recommendation, which is the only really sustainable way to grow.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Cars are more than a commodity for most. We need to deliver a positive experience.

Scott

Sinclair google: Digital more important than ever – and forget mobile phones at your peril

Dealers who are not visible on all devices will fall out of consideration

What opportunities do you think 2015 will present?

The biggest opportunity for dealers is to be the first one to get mobile right. The continued acceleration of mobile creates a massive opportunity to go mobile first and benefit in a big way. The industry must recognise consumers expect a great digital experience and will not accept that you just have a website – they expect it to work on all devices and screen sizes and be personalised to them.

What do you regard as the biggest threat to the motor industry in 2015?

Keeping up with the pace of change that continues to accelerate! The automotive industry is far behind other industries when it comes to digital.

Another big threat is the low cost of entry for digital-savvy businesses that come from nowhere and take everyone by surprise – those who are currently in the industry have a head start, but that advantage won’t last long.

Are there any reasons to be cheerful in 2015?

Absolutely. The economy continues to be strong, technology continues to evolve, and car buying is back to pre-recession levels.

What are you most excited about right now?

I’m excited about working with dealers to align their marketing and business objectives with today’s digitally-connected consumer. However, despite the evidence of changing consumer behaviour (growth in mobile, importance of social, importance of video), can we really say the experience of car buying has changed all that much to cater for the needs of this new consumer?

Can you see the current period of strong new car sales continuing? If so for how long?

My sense is we will see sustained growth through 2015, but not quite as heated as in 2014. For me, its important dealers adapt fast in this digital world to win the moments that matter with customers.

Do you think the motor industry needs to change – and where should that change come from?

The challenge of ‘who’ is the right person to own the relationship with the customer (manufacturers or dealer groups) is becoming a digital battleground. Throughout 2014 we have seen manufacturers wanting to build brand loyalty

Mini CV

Job title: Industry manager, Google Lives: London Drives: A Zipcar Family: Engaged Education: Computer Science degree Career: Graduated from university in 2006.

Set up my own business selling business cards, flyers and custom design clothing. In

and invest in their own ‘dealer network websites’, and multi-franchise dealerships continuing to strive to be the ‘go-to’ destination. Dealers and manufacturers need to get together and work out a way to be more collaborative and deliver one seamless, great experience for customers.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

2014 saw the tipping point where more consumers searched on their mobile devices for automotive-

2008, joined Capgemini and spent 4½ years working in retail, FMCG and public sectors on digital transformation projects. In 2012 joined Barclaycard before joining Google in September 2013, working with the largest automotive advertisers Winter hols: skiing or sun? Skiing Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Android related terms than on desktop (55 per cent of all automotive searches come from mobile devices).

For dealers who are not visible across all devices at every stage of the customer research journey, they will simply fall out of consideration.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

There is absolutely still a place for the showroom – a ‘go to’ destination that consumers will enjoy visiting.

CarDealerMag.co.uk | 83

FEATURE.

Edmund

King

the aa: These days, customers know exactly what they want before they buy

... there are some exciting developments in autonomous driving systems

What opportunities do you think 2015 will present?

There is a real chance to help consumers get better deals when purchasing new and used cars.

Both the OFT and the Used Car Commission reports stressed the dealer tended to have all the information and sometimes the customer was left in the dark.

What do you regard as the biggest threat to the motor industry in 2015?

A general election always brings uncertainty.

Increasing congestion, more emissions legislation and prohibitive insurance costs for young drivers may deter some drivers. In used-car buying there is the worry about online scams or ‘ghost dealers’ who rip people off.

Are there any reasons to be cheerful in 2015?

In 2013 there were 35.2 million vehicles in Britain – a 1.6 per cent rise on 2012, the largest increase since 2007. The number of multi-car families will continue to grow, buyers will start to embrace electric/hybrid more readily; vehicle technology and safety are improving with some exciting developments in autonomous driving systems.

What are you most excited about right now?

The AA expanding as a plc and putting the customer at the heart of what we do. I am also really excited to see the initial success of AA Cars with our dealers up by a third, vehicle stock up 50 per cent, site visitors up 40 per cent and sales enquiries increased by 139 per cent. I am tying to get excited about Norwich City winning promotion, but not quite sure about that….

Mini CV

Job title: AA president Lives: St Albans Drives: Porsche 911 Carrera Cabriolet Sport and Vauxhall Zafira Family: Wife, 14 and 12-year-old boys and a 10-year-old daughter Education: A BA in Politics from Newcastle University and currently a visiting professor of

Can you see the current period of strong new car sales continuing? If so, for how long?

It will continue to recover but ease off over coming months before the election, but remain strong.

There are lots of exciting developments within the industry which are encouraging public interest.

More new-car sales will put more quality used cars on to the market and there are some absolute bargains out there for new and used cars.

aspects of the car as the consumer is becoming much more knowledgeable after doing online research. The industry needs to continually push the improved safety of new cars. There still appears to be some latent sexism out there when it comes to selling cars, but this is getting better.

Do you think the motor industry needs to change – and where should that change come from?

Customer service levels need to improve in some outlets. Salespeople need to talk through all

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Dealers need to develop their online propositions and work closely with online platforms. They

��| CarDealerMag.co.uk

transport at Newcastle University Career: Wine taster, antique jewellery, car rental and sales in California, civil servant and motoring campaigner Winter hols: skiing or sun? Both together Takeaway time: Indian or Chinese? Indian (but must avoid the £48 naan bread with truffles Paul from AA Cars ordered last time. Yes, really.)

Mobile tech: Apple or Android? Both need to exude trust and sort problems with minimum fuss.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

The internet will be dominant in used-car sales but people still will want to see the metal before making a buying decision. However, they will know what they want, and will ask the right questions. The deals will be concluded with a handshake in the showroom.

Neil

Hodson HPI: Utilising data-driven software can help dealers sell more cars profitably

The industry needs to keep pace with ever-changing data

What opportunities do you think 2015 will present?

With continued sales growth anticipated at least in the first half of 2015, those who have concentrated on nurturing customer loyalty and retention during economic instability will be able to put into play plans to grow and diversify to attract a wider customer base. Diversification is key in 2015 to tap into new revenue opportunities.

What do you regard as the biggest threat to the motor industry in 2015?

The May general election could bring tax increases, new austerity measures and changes to newcar-buying incentives, making 2015 the most important year for the UK used-car market since the recession. Added to this are Europe’s economic uncertainties, which may further cast a shadow over the industry’s growth.

Are there any reasons to be cheerful in 2015?

Interest rates are remaining low, which helps car buyers access record low finance, and this in turn will help boost sales for dealers, so 2015 isn’t all doom and gloom. Plus the tools to help dealers gain greater consumer and business insight, and in turn attract sales, are constantly evolving.

What are you most excited about right now?

HPI is set to launch a range of smarter data-driven software solutions for its dealer community in 2015. We started this process in 2014 with the launch of our risk evaluation service for the motor finance market, REACT, and our trade app to support dealers on the move. Our extended range of solutions will ultimately help dealers sell more cars profitably.

Can you see the current period of strong new car sales continuing? If so, for how long?

Predicting these things is always hard, but we’re expecting new-car sales to remain strong in the first quarter and into the first half of 2015, which is good news for everyone.

Do you think the motor industry needs to change – and where should that change come from?

Customer expectations are higher than ever, with the consumer having more information and data at their fingertips than ever before.

The motor industry needs to keep pace with the

Mini CV

Job title: Managing director Lives: Grantham Drives: BMW Family: Married Education: Ottershaw Boys’ School, Management MBA Career: Started in the finance industry, then

ever-changing data and technology landscape.

Using hand-held technology to manage customer interaction, at every stage of the car buying and owning journey, is a must.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

It’s our belief that dealers need to focus on bringing together data and technology it in way that truly raises the bar. HPI has started the journey towards becoming a software solutions provider to ensure its data, and the integrity of its

progressed into Experian where I set up Car Data Check, to Manheim and then moved to HPI Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Neither, I prefer a good old bar meal Mobile tech: Apple or Android? Apple

data, is not undermined by external second-rate systems.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

Car buying is still a very emotive process and the need to touch and feel the product will always be there. However, online searching will dominate buying patterns and ‘click and collect’ will become increasingly commonplace. The showroom will always have its place, but its future purpose is yet to be determined.

CarDealerMag.co.uk | 85

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FEATURE.

Alan

Crane bluesky: It’s an exciting time for digital – but dealers beware the FCA regulations...

We expect to see forwardthinking dealers on the top of the pile.

What opportunities do you think 2015 will present?

We expect to see some dramatic jumps in dealer website technology. We are already working on the second generation of Responsive Website using fluid width design, implementing advanced tracking programmes that allow dealers to respond to leads more effectively, and introducing tyres and service plan products developed with key industry partners.

What do you regard as the biggest threat to the motor industry in 2015?

FCA compliance is going to be a big worry for a lot of dealers – if your website isn’t displaying finance details correctly, there is a high chance you could be fined. These finance concerns are particularly concerning for the 50 per cent of website visitors on a mobile or tablet, as previously they’ve been overlooked.

Are there any reasons to be cheerful in 2015?

The digital market and internet usage in the car-buying process is still experiencing continual growth, particularly with regards to mobile and tablet devices. This opens a lot of new strategies and opportunities for car dealers to really make the most of their digital spend, seeing more leads and a better performance than ever before if they concentrate their activity in the correct areas.

What are you most excited about right now?

We are looking forward to being able to introduce personalisation on our websites, rearranging the content you present to visitors based on their characteristics – for example, prioritising used-car information for customers we know aren’t looking for new. We think this could transform dealer websites, and that gets us very excited. It should get the whole motor industry excited. Really!

Can you see the current period of strong new car sales continuing? If so, for how long?

We think the next year at least will continue to see these strong growth levels – but this won’t be the case for all dealers. We anticipate the gap between growth and decline widening, and expect to see the digitally-enabled and forward-thinking dealers on the top of the pile. We are working on new-car configurators with partners such as CAP to ensure our dealers are differentiated from the crowd.

Mini CV

Job title: Managing director Lives: Kenilworth, Warwickshire Drives: Audi A7 Family: Wife Jacqui and two grown-up children, Lauren and Emily Education: B.Sc (hons) PGCE – Loughborough University Career: First half of my career was spent in the

Do you think the motor industry needs to change and where should that change come from?

Dealership visit figures are dropping off and you have to stay connected with your customers. This can be achieved by collecting and using customer data from multiple sources to talk to customers, as well as catering for them on multiple devices.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Dealership systems and online products should

hotel and leisure industry, followed by a period working with a large GM dealer in the Middle East. I then got involved with AutoByTel... and the rest, as they say, is dot.com history!

Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Working in digital means you have to have, and be au fait with, both! integrate seamlessly. Dealers shouldn’t have to double-key to upload stock or view leads in different places.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

We think they will. Things might be different in 20 years, but right now the emphasis shouldn’t be on replacing the physical showroom – instead your website should supplement, support and integrate with it.

CarDealerMag.co.uk | 87

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car finance

FEATURE.

Julian

Rance paragon: Dealers just need to beware the number of PCP cars flowing on to the market

It’s very important that finance is understandable for car buyers

What opportunities do you think 2015 will present?

There will be opportunities for manufacturers who have the foresight and commitment to establish successful reselling processes for returned PCP vehicles and, as a consequence, used-car sales and volumes should increase. Additionally, recent developments in consumer credit regulation give rise to new opportunities for lenders and dealers that are willing to take a fresh approach.

What do you regard as the biggest threat to the motor industry in 2015?

Overall, we’re very positive about 2015. One possible area of concern for dealers could be the rate at which PCP vehicles flow back into the market and the potential for oversupply to disrupt used-car pricing.

Are there any reasons to be cheerful in 2015?

Yes, absolutely. The UK economy remains one of the strongest in Europe, underpinning improved business and consumer confidence and providing support for further growth in commercial vehicles, as well as new and used-car transactions.

What are you most excited about right now?

Building out the Paragon Car Finance brand and growing our share in the dealer finance market.

After launching in 2014, we’ve established our credentials as a competitive, dynamic and serviceoriented finance partner. As we move into 2015, we look forward to broadening our distribution, deepening our dealer relationships and expanding our product range.

Can you see the current period of strong new car sales continuing? If so, for how long?

New-car sales will continue to grow in the UK in 2015, albeit at a slower rate than previously with growth plateauing toward the year end. Looking beyond 2015, I expect to see a shift towards Europe as the economy on the continent begins to strengthen and a possibility that registrations will gradually decline from current record levels.

Do you think the motor industry needs to change – and where should that change come from?

The transfer of consumer credit regulation to

Mini CV

Job title: Head of Paragon Car Finance Lives: Solihull Drives: BMW 520 Diesel Family: Two grown-up children Education: Watford Grammar School for Boys

the FCA will continue to drive change in motor finance. It’s more important than ever that finance is understandable for car buyers, and dealers will need to evaluate how they transact business and improve the transparency of their finance support.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Dealers will need to focus on making sure the sales, finance and servicing aspects of the customer journey are fully integrated and backed with a powerful CRM system. Dynamic

and Hull University Career: Forward Trust and Paragon Car Finance Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple

online stock and quote capability will also be critical.

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes. The two are complementary. Customers want to research online but they also want to touch and feel the product and experience the brand in the showroom. For all the major manufacturers, the showroom is and will remain critical to establishing and reinforcing the brand credentials with customers.

CarDealerMag.co.uk | 89

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FEATURE.

James

Tew

ivendi: The future will see digital become more important than traditional showrooms

Management must realise the old ways of doing things are in the past

What opportunities do you think 2015 will present?

Our view is that the new regulation the industry faces provides a rare opportunity for dealers to take an in-depth look at their businesses from the ground up and ask themselves: ‘How can we best make money by meeting customer needs really well?’ The best dealers are making the most of this moment and making some exciting changes.

What do you regard as the biggest threat to the motor industry in 2015?

The new regulation affecting the motor industry demands a cultural change. Dealers need to become customer-centric instead of dealer-centric.

Not making this change and not taking the new regulation seriously is the biggest threat.

Are there any reasons to be cheerful in 2015?

Plenty. The motor industry has a wide range of products and services that it can profitably sell into a market that remains relatively buoyant. There remain excellent opportunities for dealers who can identify and maximise the business opportunities available to them.

What are you most excited about right now?

The rollout of our iVendi platform, which is designed to allow management of showroom and online finance traffic as well as aiding FCA compliance. It has been adopted by a major motor finance provider for their more than 2,000 dealerships in the first phase and the second will soon see its adoption by a number of the very largest car portals.

Can you see the current period of strong new car sales continuing? If so, for how long?

I think the market will stay relatively strong until around the general election. Following that, we will have to see what austerity measures the new government makes and also whether a rise in the basic rate of interest follows. However, manufacturers will do whatever they can in terms of attractive finance deals to keep the production lines rolling at something close to capacity.

Do you think the motor industry needs to change and where should that change come from?

Regulation is demanding that the industry starts to place the customer at the centre of its

Mini CV

Job title: CEO Lives: Alderley Edge Drives: BMW M5 Family: Wife and four children Education: Denstone College Career: Banking and finance companies including Co-op Bank, Mercantile Credit, GE

focus. That change can only come from dealers themselves, with management realising the old ways of doing things are now in the past. This means using new technology to the full and adopting more customer-focused processes.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

They need to change their sales model and add to it through avenues such as considering more products, especially service plans. They should also be looking at additional ways of enabling the key parts of their sales processes online. Ultimately, the

Capital Woodchester, and CEO of iVendi since 2010 Winter hols: skiing or sun? Sun – with wifi Takeaway time: Indian or Chinese? Indian Ideally after a home win at the Britannia Stadium Mobile tech: Apple or Android? Apple.

It just works. future for dealers is one where online is at least as important as the showroom – probably more so.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

It is difficult to say. Dealers don’t love traditional showrooms because they are so very expensive and the argument for building and maintaining them is weakening as footfall continues to decline and more business is done online. However, manufacturers love what they bring to brand image at a local level. Certainly, logic dictates there will be fewer of them.

CarDealerMag.co.uk | 91

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FEATURE.

Bob

Feltham automotive consultants: Planning to revolutionise the insurance market

A showroom should not feel like a doctors’ surgery

What opportunities do you think 2015 will present?

For manufacturers, the continuing move by retail buyers to a new era of low running costs through PCP initiatives, the next and possibly largest opportunity is the drive-by-use insurance.

I am heavily involved with a UK-designed and built telematics device that transforms how manufacturers and large groups can use insurance to save customers money. Saving drivers up to £1,500 a year makes sense to all.

What do you regard as the biggest threat to the motor industry in 2015?

An interest rate rise – the slightest move will create waves that will lead to a recession. A good clear outcome in the general election, to keep confidence levels high, is desirable.

Are there any reasons to be cheerful in 2015?

There are 737,000 people employed today in the industry. The 2015 forecast is that the new car market is set for a further 1.5 per cent growth. I think commercial vehicles will develop more in 2015 and inbuilt sat-nav, Bluetooth and stop-start will make it a no-brainer to buy new fleet stock.

What are you most excited about right now?

Telematics through VUTU and low-cost insurance through our partners at Coverbox and Drivestyle.

The secret to PCP and service retention is through continual connection to the consumer, which is in effect a mobile loyalty mechanism.

Can you see the current period of strong new car sales continuing? If so, for how long?

I can see the number of new cars staying at the current level, or close. Careful budgeting within families, many of whom rely on their car 100 per cent to make their lives work, guarantees customers will be around for some time to come.

Stability and a desire for connected eco-cars has become the norm, and specification has dramatically changed over the past few years.

Eco engines have become more affordable and customers have demonstrated an appetite to explore a new generation of product.

Do you think the motor industry needs to change – and where should that change come from?

Introducing the benefits of incorporating

Mini CV

Job title: Automotive consultant Lives: Milton Keynes Drives: BMW Family: Married Education: Learning every day Career: Sears, Daewoo, RN Consulting, WLMG,

telematics at point of sale to help drive down consumer costs. Telematics help drivers, insurers and manufacturers. The savings efficiencies drive benefits customers and helps sell more cars. Removing exaggerated claim costs can halve insurance for young drivers to the tune of £1,500 per year, and thus can open up the market.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Introducing better benefit presentation to customers; trying internet part-ex disposals; ensuring all used cars are listed online; for the groups and supermarkets, trying more own-

Consultancy Winter hols: skiing or sun? Skiing Takeaway time: Indian or Chinese? Indian – my wife is Chinese and her cooking is awesome Mobile tech: Apple or Android? Android branded goods and products such as insurance.

These moves can make real sense and are not difficult to put in place.

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes. Look at the high street – the shops have changed or become more niche, focusing on detail. Nail bars – who’d have thought that was a business? Vaping bars, Starbucks or Costa, people should enjoy a car showroom where there is engagement and entertainment, and not feel like a doctors’ surgery.

CarDealerMag.co.uk | 93

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FEATURE.

David

Shapiro AUTO PROTECT: Embrace FCA regulations and dealers’ F&I income can be enhanced

There will be pressure this year on used-car retail prices

What opportunities do you think 2015 will present?

Consumer confidence is slowly improving and so are levels of income relative to inflation. Respecting that for some people disposable income remains a challenge, the overall picture is an improving one.

However, it is important to note that a fall in F&I income is not inevitable. If dealers embrace FCA regulation, F&I income can be sustained and even enhanced.

What do you regard as the biggest threat to the motor industry in 2015?

I know it is a cliché, but I never see things as threats, only as challenges and opportunities.

We are well aware of dealer concerns about FCA regulation. We continue to engage with the regulator to outline the distinctive nature of motor retailing, but there can be no doubt the F&I model in car retailing must evolve. It has been widely suggested that, in the year ahead, we can expect to see over-supply of used cars. Thirty-three months of consecutive new-car growth, significantly driven

by PCPs, will see an increase in stock as buyers enter a new cycle, while fleet remarketing has largely returned to the pre-recession ‘steady state’.

Both will see pressure on used-car values. Plenty of stock will inevitably place pressure on retail prices.

Are there any reasons to be cheerful in 2015?

Absolutely – car sales are set to continue growing, the rugby World Cup is coming to England and West Ham are riding high in the Premiership!

Seriously, as a business we are always looking ahead as part of our strategic planning process and we always see reasons to be optimistic and we find our optimism is infectious.

What are you most excited about right now?

The fact that as an industry, add-on insurance is on the cusp of change.

Can you see the current period of strong new car sales continuing? If so for how long?

Yes, albeit at a slower rate. Manufacturers want to keep the wheels turning. In switching many buyers to PCP purchasing, they are helping to develop a sustained three-year change cycle and with 33 months of growth in new car sales now behind us, that cycle is about to begin its second rotation.

Mini CV

Job title: Chief executive officer Age: 67 Lives: Epping, Essex Drives: Mercedes-Benz S Class Education and career: After leaving school, went to work for an insurance firm and was placed on a fast-track training programme. Moved to Lloyd’s of London.

Do you think the motor industry needs to change – and where should that change come from?

I think it continues to change, albeit the pace of change may be increasing. Among the changes we need to address: n Digitisation – customers are searching online for vehicles and support add-on services, such as F&I products. We need to get all these products online in a virtual dealer showroom. n Reputation Management – dealers need to invest more in their reputation. The growth of review sites will, in our view, make an increasing impact upon the customer-buying process. With a poor ranking, customers may never contact, let alone enter, a showroom.

In 1982, set up my own company, which I sold in 1994 to Oriel Group plc, and was appointed director of the holding board plus the operating companies. One of the founder shareholders of AutoProtect, formed in 2004 Winter holidays: skiing or sun? Sun Takeaway time: Indian or Chinese: Indian Mobile technology: Apple or Android? Apple What should dealers be focusing on to ensure growth and a sustained future in 2015? n Increasing their product portfolio. n Investing in their reputation for the digital world. n Embracing regulation.

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes. However, I think the role of the showroom and the whole showroom experience will evolve. A car represents a major investment and customers do want to see and feel both their selected car and, perhaps more importantly, the experience from the individual dealership.

CarDealerMag.co.uk | 95

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FEATURE.

Nick

Horton SUPAGARD: After sustained growth, the industry must guard against complacency

...with the increases in new-car sales, we are the envy of Europe

What opportunities do you think 2015 will present?

2015 provides the opportunity for organisations to continue to embrace the digital age. As consumers continue to demonstrate an appetite for web-based activity, the motor industry has a responsibility to develop e-commerce platforms to provide the simple route to purchase offered by other sectors.

What do you regard as the biggest threat to the motor industry in 2015?

As we continue to marvel at the SMMT figures for new-car registrations, complacency continues to be a significant threat to the motor industry.

On the basis that forecasts suggest a reduced level of growth than 2014, the risks associated with complacency are even greater. Perhaps now is the time to ringfence and protect the processes and attitude that inspired the results of last year?

Are there any reasons to be cheerful in 2015?

With consecutive monthly increases in new-car sales that span almost three years, we are the envy of Europe. Vehicle manufacturers will support further growth in 2015 with the launch of a sizeable collection of new vehicles. Supported by the franchised dealer network, such vehicles will stimulate another strong year of new-car registrations.

What are you most excited about right now?

At Supagard we are most excited about the new products and services we will be bringing to market in 2015. Over the next few months our product portfolio will be enhanced to provide unrivalled choice. During this period, we will also be launching digital platforms which will provide dealerships with innovative ways to drive an optimum sales performance.

Can you see the current period of strong new car sales continuing? If so for how long?

Although we are unlikely to see a repeat of the levels of growth experienced over the past three years, the level of new -car registrations is likely to stay strong at approximately 2.4 million per annum over the next two years.

Do you think the motor industry needs to change – and where should that change come from? We need to embrace change in much the same

Mini CV

Job title: Sales director Lives: Nottinghamshire Drives: Volvo XC60 Family: Married, two sons Education: After A-levels, completed a National Business Diploma at Clarendon Academy.

Career: Spent five years with the civil service

way other retail sectors continue to. The pioneers of our industry will already have a clear vision on how intentional and positive change will impact the manufacturing, environmental, operational and retail aspects of our industry.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Customer experience. Whether viewed from a sales or aftersales perspective, customer experience is the vital ingredient that will drive the end result.

In the final analysis, few other corporate metrics

before joining the motor industry in 1992 as a sales executive. Promotions to business manager and sales manager followed before moving into the training and development sector. Represented Supagard for six years.

Winter hols: skiing or sun? Sun Takeaway time: Indian or Chinese? Chinese Mobile tech: Apple or Android? Apple can impact growth and sustainability in the same way that customer experience is able to.

Will the traditional plate-glass showroom still be with us in 10 years’ time?

It will still be a prominent element, but the volume and design of such showrooms is likely to have changed. More business will be written on-line, so the showrooms of 2025 will have changed to reflect the increased appetite from the retail consumer to be increasingly independent as they make their buying decisions.

CarDealerMag.co.uk | 97

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FEATURE.

Mike

Jones ASE: Dealers need to start making buying cars a lot more enjoyable for the customers

The FCA may look to make a high-profile prosecution

What opportunities do you think 2015 will present?

There are going to be a lot of registrations in 2015. This should lead to great opportunities for dealers to improve their local vehicle parcs, driving medium-term aftersales performance and increase upsell. I also expect an active Dealermatch year with most dealers having acquisition or disposal opportunities.

What do you regard as the biggest threat to the motor industry in 2015?

The general election will likely slow the retail sector. However, the biggest threat is probably the Euro exchange rate. At current rates cars can be imported and sold profitably, with plenty of room for attractive customer offers. Were the Euro rate to fall below 1.2, this would cease to be the case. The FCA may also look to make its presence known with a high-profile prosecution.

Are there any reasons to be cheerful in 2015?

There are plenty of reasons to be cheerful.

Strong registration levels in 2013 and 2014 have increased vehicle parcs, giving dealers more aftersales and repeat customer opportunities.

We are unlikely to be able to move in car manufacturing plants for politicians looking to capitalise on a strong motor sector.

What are you most excited about right now?

The opportunity to change the current silo model in motor retailing to make it more customer centric. Despite the strong profitability of the sector in 2014, the customer still does not seem to enjoy buying cars and dealing with our industry.

When someone overcomes that issue, the profits will roll in.

Can you see the current period of strong new cars sales continuing? If so, for how long?

There are few other markets where the cars could be retailed, particularly in Europe, China and Russia. Until we see a recovery, we will see strong registration levels in the UK. The dealer challenge is ensuring those registrations are also sales.

Do you think the motor industry needs to change – and where should that change come from?

I think we need to change the way we handle customers to make the experience less

Mini CV

Job title: Chairman Lives: Cheshire Drives: Range Rover Sport Family: Two children Education: University of Bath then accountancy qualifications with Coopers & Lybrand Manchester

confrontational and more enjoyable. The change will have to be led through the brands as the bonus schemes drive the current behaviour.

Moving from the current CSI to something akin to net promoter would be a start.

What should dealers be focusing on to ensure growth and a sustained future in 2015?

The management and operation of their business development centre. So much of the sales process is now undertaken outside normal working hours using mobile devices that dealers need to constantly refine and check their enquiry handling

Career: Coopers & Lybrand Manchester, PwC Vancouver and then ASE for the past 12 years Number of dealerships – None, but we receive monthly submissions from 8,500 of them Winter hols: skiing or sun? Both Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Apple processes to enable them to respond within ten minutes rather than 24 hours.

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes, I believe so, although we will likely see an increase in activities away from the showroom such as test drives from home or work. We may also see some brands moving towards hub and spoke representation with large statement sites in city centres alongside further growth in shopping-centre and high-street boutiques.

CarDealerMag.co.uk | 99

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FEATURE.

Ed

Hummel glass’s: It’s going to be a 24/7 job selling, buying and servicing cars in the future

,...perhaps the government will offer some tax cuts to woo voters...

What opportunities do you think 2015 will present?

I believe the UK economy will continue to grow strongly in 2015. Low inflation from lower oil prices should mean UK interest rates remain at historic lows for most of 2015, giving consumers and businesses confidence to buy new vehicles. As a result of better new-car offers and increased usedcar stock, I believe used-car prices may come under pressure in the latter part of the year.

What do you regard as the biggest threat to the motor industry in 2015?

If interest rates rise sooner than expected, no matter how small the rise, this could impact the positive sentiment and confidence in the car market.

Are there any reasons to be cheerful in 2015?

With an election due in May, perhaps the government will offer some tax cuts to woo voters.

That may, of course, be wishful thinking!

What are you most excited about right now?

2015 promises to be a really successful year for Glass’s. We have invested heavily in 2014 in new people and processes to ensure our customers get the most accurate data in some great new products. Glass’s RADAR app gives you real-time pricing and ‘days to sell’ in the palm of your hand, or integrated into a dealers’ DMS system through the RADAR widget.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes, low interest rates and a favourable exchange rate will continue to encourage manufacturers to supply high volumes of cars to the UK. Population growth, and reducing unemployment, can only help in the future.

Do you think the motor industry needs to change – and where should that change come from?

Increasing property prices will eventually force manufacturers and retailers to utilise the internet to buy, sell and service vehicles. A 24/7 level of service will increasingly be demanded. The motor industry will also need to adapt in the longer term to the younger generation being less interested in cars as a status symbol with their focus more on the environment and paying back tuition fees!

Mini CV

Job title: Managing director Lives: Alderley Edge, Cheshire Drives: Mercedes E Coupe Family: Married with our first baby due in May! Education: Warwick Business School, Management Science

What should dealers be focusing on to ensure growth and a sustained future in 2015?

Used vehicle stock turn and the internet. Some of our tools make managing used-vehicle stock turn very simple. For example, Glass’s RADAR on an app, desktop or in your DMS showroom system allows you to review in a live environment how quickly your vehicles are turning, compared to similar vehicles in the market. With Glass’s now supplying AutoTrader with data, dealers should consider talking to Glass’s about how our granular data can help improve their website performance.

Career: Ford UK, Volkswagen UK, Honda as head of corporate operations, Glass’s as sales director, then managing director Winter hols: skiing or sun? Sun in the south of France!

Takeaway time: Indian or Chinese? Indian Mobile tech: Apple or Android? Apple

With the advance of the internet, will the traditional plate-glass showroom still be with us in 10 years’ time?

Yes, but in far smaller numbers. The big plate-glass showrooms will be placed in accessible parts of the country and will become a destination in their own right, with restaurants and extensive driving-related activities for kids and adults alike. I predict aftersales will be delivered on an increasingly collection-and-delivery basis with aftersales hubs operating in cheaper local facilities [CD] CarDealerMag.co.uk | 101

focus on.

Suppliers of the year

Need assistance?

We’re here to help The right suppliers can help make your good business an exceptional business...

A

s every car dealer appreciates, it’s the support services that can make the difference between being a good business, and being an exceptional business. n How the sales team look in the showroom or on the forecourt – there’s someone who can help with that; n How the team are trained to put consumers at ease – there’s someone who can help with that; n When the switchboard can’t cope with the volume of calls coming in, meaning potential customers and leads are lost – there’s someone who can help with that; n Getting the right cars in stock – there’s someone who can help with that; and n Making sure the right warranties are in place – there’s someone who can help with that.

On these pages, you’ll find businesses which are tried and tested in all those areas, so you can rest assured you’re dealing with people who know the problems facing you, and who have the answers at their fingertips. After all, if we’re all providing customers with exactly what they require, we’re well on the way to having a successful 2015...

Workwear

Dickies – The preferred choice for workers worldwide. As the working day takes its toll, Dickies workwear will continue to provide excellent comfort and protection. With over 90 years’ experience in workwear manufacturing, generations of workers have found Dickies to be a brand they can trust.

Utilising the best of both modern and traditional construction techniques the Dickies range is made to last. Whilst numerous design features ensure the garments are practical and afford exceptional comfort.

Dickies continue to evolve, with more technical fabrics, building in durability and functionality to the garments to make a workers life and job that bit easier. Dickies will be introducing a number of exciting new products and ranges for 2015, with style, functionality and quality being paramount in driving the Dickies business forward.

contact details W: dickiesworkwear.com E: eurosales@dickies.com T: 01761 410 041

Training

Lead generation

Drive Development Solutions – We help the motor industry find, keep and develop talented people by offering training solutions that are innovative, practical and relevant

Moneypenny – Unanswered telephone calls continue to be the second largest gripe among car buyers. We are working with dealers to ensure they never miss a call and see 2015 presenting a fantastic opportunity to change; lifting the customer service experience while reducing costs.

James Hudson FIMI, MCIPD, tells us: I hope we continue to see growth and innovation within our industry, not just within the new-car market but also in the used-car market.

I also hope we see strong leadership in preparing and upskilling young people, not just for success this year but investing in skills to ensure we build long-term sustainable success for the future in this ever-changing complex consumer driven environment.

But more than anything I hope we all take the time to enjoy the moments. Life is short. Make 2015 epic!

We deliver solutions to businesses of all sizes to ensure you never miss a call again. Every enquiry is captured to drive business through your door, lifting the customer experience and saving you money as you improve service levels.

Our receptionists take your calls as though based at your front desk delivering overflow support for busy periods, a fully-outsourced switchboard, business continuity 24/7, extended virtual opening hours, and enhanced customer relationship management. Put our service to the test – talk to us about a free two-week trial.

contact details

contact details

W: drivedevelopment.co.uk E: info@drivedevelopment.co.uk T: 0800 133 7070

W: moneypenny.co.uk E: hello@moneypenny.co.uk T: 0333 202 1005

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Wholesale

Carfleet Wholesale Ltd – We are now approaching ten years of supplying quality vehicles to the motor trade.

We pride ourselves on making the whole process from ordering the vehicle to its delivery as smooth as possible, with a dedicated member of our team to look after each part of the process.

We are very much looking forward to supplying existing and many new customers good-quality vehicles throughout 2015, and promise to keep our high standards of looking after our customers’ needs.

We invite you to contact our sales team on 0151 356 1200 for more information.

We wish you all a prosperous new year.

Insurance

Mapfre Abraxas – We are a leading provider of automotive insurance programmes. Our approach is simple – we’re insurance specialists who like to keep everything in-house which means we can be flexible, innovative and make quick decisions where necessary. Our dedicated team in Bristol manage our underwriting, claims, customer service, compliance and quality assurance activity.

We have a national field-based team responsible for working with partners to set objectives, manage performance and ensure you and your customers get the right outcomes from your insurance programme. By drawing on expertise from the wider Mapfre group, we are also able to offer our partners multi-channel based solutions to enhance their overall insurance distribution strategy.

We remain very positive about the future of GAP and are excited about the initiatives we will be delivering in 2015.

contact details

contact details

W: carfleetwholesale.co.uk E: tony@carfleetwholesale.co.uk T: 0151 356 1200

W: mapfreabraxas.co.uk E: contactus@mapfre.co.uk T: 0845 6838795

Lead generation

Warranties

FindsYouCars – We simplify the process of finding a car for buyers who are pressed for time or uncomfortable with the search process.

Dealers load their stock to the FYC system and matching buyers are notified to dealers who can get in touch. We verify the wanted advert and the contact details.

Cost per lead charging makes this a no-brainer.

We allow our car buyers and others to list their existing cars and offers are made by dealers.

It reduces reliance on the many buying companies and allows dealers to buy stock at a fair price, avoiding the various middle men who eat into their margins.

The WMS Group – Against the backdrop of new FCA legislation, we look forward to keeping the motorist at the core of our operation by delivering unprecedented warranty products and customer service, which will only increase retention levels and profitability for our dealer partners.

We offer a wide range of award-winning warranty products for FCA and non-FCA registered dealerships, with many that can be tailored to a customer’s exact needs. We also now operate 24/7 – and all claims are settled within 24 hours on receipt of the repair invoice.

Dealers receive free, unlimited sales and product training delivered by our dedicated account managers, in addition to free showroom and POS materials. Subject to volume, we can create bespoke whitelabel materials for a seamless integration. We deliver exceptional service and support at every stage to our dealers and policy holders.

contact details

contact details

W: findsyoucars.com E: cardealer@findsyou.com T: 0121 224 7333

W: wmsgroupuk.com E: dealers@wmsgroupuk.com T: 01844 293817 CarDealerMag.co.uk | 103

focus on.

RAC BuySure

Recruitment drive under way RAC

E: motor.sales@thewarrantygroup.com T: 0330 100 3803

T

he RAC intends to lead the way when it comes to offering innovative approved schemes for used cars – and the timing could not be better.

The Government has just announced its Used Car Commission has been tasked with developing a set of minimum standards for approved schemes to make things easier – and fairer – for the consumer.

And the RAC’s new BuySure scheme, which launches to the public at the start of April, is designed to adopt the best principles to help customers – especially as its technical director, David Bizley, is a member of the commission.

The RAC’s head of dealer propositions, Mario Dolcezza, feels the future will see a ‘two-tier system’ in the used car marketplace.

He said: ‘There will be programmes that offer the buyer a very high degree of protection with detailed inspections, provenance checks and strong warranty support. These will include manufacturer-approved schemes and those that offer the equivalent for independent dealers, such as BuySure.

Q&A

‘Below this, there will be everyone else.

Of course, there will not be one standard for these non-approved dealers, but they will clearly be not of the same level as those retailers who choose to meet the proposed Government Used Car Commission guidelines.’

The countdown to the ambitious new BuySure programme is under way, with the RAC launching the scheme to the public from April following a successful trial period. In time for this date, the RAC is now recruiting dealers to join the initiative and is looking for high-quality dealers across the UK. The design of BuySure used extensive consumer research to deliver exactly what customers require when they are looking to change their car.

Dolcezza says: ‘We asked our members what were the critical things they looked at when they were buying a car. The four points were a car data history check, a dealer inspection certificate, a highquality warranty and a free breakdown cover.

‘BuySure answers all these requirements including a thorough history check, an RAC-approved preparation standard vehicle check, a three-month RAC warranty and three months of breakdown cover.

‘For us, this is very much a consumer-based proposition which, because it answers buyers’ needs, is also the best option for quality independent dealers looking to differentiate themselves in the marketplace.’

So what is the BuySure scheme all about and why should dealers sign up to it? Mario Dolcezza

Is there a cost attached to the dealer to get a car to your standard?

Yes, there is a cost to get the car up to that standard but the programme has been designed to be not too onerous for dealers. Many good dealers already adopt 90 per cent if not more of our measures, so it’s that just that extra mile they’re having to cover.

From our perspective, the consumer should be confident that the vehicle they are buying is a) entirely safe, including tyres, brakes and everything else, and b) unlikely to give them any significant cost for a reasonable period of time.

The consumer should walk out of the door knowing the dealer has done everything they reasonably can to ensure the car is fit and proper. Of course, there could be

���| CarDealerMag.co.uk

an underlying issue that is not part of the check or visible to any mechanic, such as an internal gearbox fault, but the dealer will have covered as many bases as is practical.

So consumers know that any dealer with the RAC-approved BuySure branding is trustworthy?

Not just the dealer but the product as well. They know they will be getting a good car and good service. We know, from all the work we have done, that customers will pay more for that.

And not only will they pay more for the car but they will travel further to buy the car, too. You shouldn’t just take our word for it. We have testimonials including video from dealers who are enamoured by BuySure and all the benefits it provides.

What is the cost to the dealer of the programme?

This is wrapped into an overall awareness of the programme. The overall charge is dependent on the type of vehicles they sell and what their warranty history has been. There’s not a fixed cost. For example, for a dealership that sells primarily 4x4s, their customer loyalty product will be more expensive simply because of vehicle type. It varies from dealer to dealer but we believe the overall pricing is very reasonable.

Should dealers interested in learning more get in touch with your team?

Absolutely. They need to give us a call on 0330 100 3803. And there’s a special offer to dealers in next month’s Car Dealer magazine that I’m sure many of them will find very interesting indeed!

answers our questions…

The dealers who sign up will, of course, have access to the RAC’s enormous database of members?

Approved dealers will be given direct access to contact our membership – obviously under controlled conditions and not all year round but most definitely at peak buying periods. The RAC has 2.1 million directly-contracted members, people who have contacted the RAC directly. Also, we have in excess of five million who get RAC membership through their insurance or credit cards.

What we can say, with our work with the Office of Fair Trading, is that 24 per cent of people will change their cars every year.

So, of those 2.1 million, that’s 600,000 of our membership who are looking to change their vehicle.

The RAC wants to support our members and used car buyers in general, so will push those consumers in the direction of a dealer we know we can trust, who offers good products and good customer service. And you’ll notice with all of that, the word ‘cheap’ doesn’t come into it. We are not looking to be cheap. We want a good product and good service. And we know our membership want that and are prepared to pay more to get it.

We don’t have an issue with the size of any dealership – we’re not after just big dealerships. What’s more important is to form a partnership with the right mindset.

If you’re a small dealer and a good dealer and you offer a good product, you’re good for us. We’re actively using an online review system to promote our dealers, too! [CD] CarDealerMag.co.uk | 105

Warranty woes are a thing of the past!

The WMS Group will be a business partner for your dealership - not just another warranty company.

Our products and training are proven to generate additional income for all departments within your business whilst ensuring that customer care remains at the very core.

8QLTXH EHQH¿WV Flexible warranty products tailored to your requirements.

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Cover available for all FCA and non-FCA registered dealerships.

Award-winning products including warranty, GAP, breakdown cover, service plans, MOT insurance and much more.

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This cover is one of the most comprehensive I have seen. As a Vauxhall franchise, we consistently aim to deliver a great experience and we now have a product that ticks all the boxes to ensure many miles of happy motoring for our customers.

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Put us to the test - request your complimentary and start optimising your warranty sales today!

On the road with Eric Stone

Career path to date...

I entered the industry in 1985 with Motorplan as a warranty rep covering East London and Essex. It was a different world back then when warranties were provided with oil, designed to protect the engine. There were no mobile phones or Sat Navs, and the only in-car entertainment was in the form of a radio or eight track player that jumped around when you went over a bump! I later joined the RAC as their National Sales Manager for warranty and add-on products before moving to Aon as Sales Director.

What led you to join the WMS Group?

When three of our Directors decided to set up the company in 2003, they head hunted me to help them build the business. It was an incredible opportunity and a few years later they also made me the fourth Director.

Today we work with over 3,500 GHDOHUVKLSV DQG ZLWK D QDWLRQDO ÂżHOG team on hand to provide training and VXSSRUW , DP FRQÂżGHQW RI D SRVLWLYH and successful future as our business continues to grow.

Your greatest achievement so far...

That’s an easy one. Four years ago, there was a gap in the market for a complete used car programme so EX\HUV FRXOG ¿QG D WUXVWZRUWK\ GHDOHU that offered genuine peace of mind. , FUHDWHG RXU ÀDJVKLS VFKHPH 6DIH and Sound (SafeandSound.co.uk), endorsed by Sir Stirling Moss, and we now have over 200 dealerships nationwide offering it including many of the largest franchises across their used stock.

What is your vision for the future?

To see the WMS Group become the market leader and set the benchmark for other warranty companies, which I think we are fast achieving.

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We listen to our dealers and build programmes to UHĂ€HFW WKHLU QHHGV

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Eric Stone is the WMS Group’s Business Development Director, managing over forty account managers and overseeing the development of our rapidly growing dealer network. Having worked in the motor trade for thirty years with extensive experience in sales and dealer training, Eric is also responsible for guiding the direction of the WMS Group through creating bespoke dealer programmes and new product ranges.

What are the common prerequisites for dealerships today?

Back in the 80’s there were no sensors or cats, and cars did not have the sophisticated equipment we see today. However dealers had the same aspirations as they do now, and that is to pay a fair price for a fair product that does what it says on the tin. In recent years, the focus has shifted to providing exceptional customer care inline with the Treating Customers Fairly ethos. Dealerships who are transparent and consider their buyers as ‘customers for life’ will continue to thrive because quality, consistency and excellent service will always deliver results. We all need to accept change and move to position our businesses at the forefront in order to succeed.

dealer pack at www.WMSGroupUK.com Call our dealer helpline on 01844 293817.

How can warranty products optimise retention levels?

Many dealerships use our products as the springboard to secure repeat custom, and the majority have seen a great uplift in their retention levels.

Under the terms of the warranty, the vehicle needs to be serviced in accordance with the manufacturer’s guidelines, so service work, MOTs and advisories are all opportunities to bring the customer back. The dealer can also carry out repair work when a warranty claim arises, and if the customer has rescue and recovery, that will provide another opportunity for the vehicle to be returned.

Comprehensive warranties are the lifeblood of the used vehicle retail sector, enabling dealerships to improve their customer care and retention levels through a number of revenue-boosting aftersales platforms.

Our dealers’ success is ultimately our success, so we pride ourselves on delivering exceptional support at every step of the way.

The WMS Group have a wide range of products to suit every dealership and vehicle, proven to generate customers for life. We listen to our dealers and build SURJUDPPHV WR UHĂ€HFW WKHLU needs, in addition to providing unprecedented sales & aftersales platforms and marketing support.

The warranty experts

Search the WMS Group on...

CarDealerMag.co.uk | 107

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Auto Trader

Creating the best marketplace auto trader

A

W: autotrader.co.uk T: 0345 111 0002

uto Trader is committed to leading the future of the digital automotive marketplace and has set out its stall for the next 12 months.

The business closed its 37-year-old print title and moved to an exclusively digital business in June 2013. Since then significant changes have been made to reflect the new online environment in which cars and other vehicles are bought and sold.

Key areas have included brand simplification, most notably the amalgamation of diverse brands under the Auto Trader umbrella. But the company is also working more closely with retail customers to build trust and support them on the journey to become confident digital retailers. ���| CarDealerMag.co.uk

The business has also moved home. New hubs in Manchester and London’s King’s Cross have consolidated a number of regional offices and established the business within some of the country’s hot spots to help recruit the best digital talent. The offices include some interesting innovations too, not least the Italian Job-themed Mini tunnel – complete with full-size cars – that greets visitors to the Auto Trader office in London!

any other automotive marketplace and new ways for consumers to search.

Dealers win thanks to a more focused and approachable Auto Trader. That means fewer, more relevant contact points and the supply of products and services that fit a needs-based model, closely aligned to the requirements of each dealership, rather than one in which an increasing array of products and services are supplied as bolt-ons to an existing package.

A winning marketplace Auto Trader’s goal is to create the best marketplace for consumers and dealers. Consumers win through an effortless buying experience. That means both the presentation of more stock than

The four pillars As part of this new approach, Auto Trader has defined the four pillars upon which any successful retail operation sits. Buying, selling, managing and marketing are the basis of a suite

The search is on For some, the new year can seem like a quiet time, but that’s an illusion dealers must be prepared to look past. Data reveals a significant spike in searches in January which then continues throughout the first quarter of the year.

In fact, more buyers are in-market and

searching for their next car at this time than in any other quarter of the year.

Auto Trader’s new television advertisement – which is called The Searchers – debuted on Boxing Day to channel more of these in-market buyers to dealers.

Auto Trader searches in millions by quarter 2011-2014 700 600 500

434

400

391

417

490 483 468 380

538 526 512 434

588 550 483

300 200 100 0 Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

What’s the idea behind The Searchers?

An Italian Job-themed Mini tunnel greets visitors to the Auto Trader office in London

of bespoke products and services that are targeted only at areas where any weakness may lie within any given business.

Selling is, of course, one of these key pillars and this January dealers need to ask themselves if they are doing all they can to maximise stock presentation. That means ensuring sufficient attention is given to ensuring the right descriptions are applied to each vehicle, ensuring every car is presented with strong and consistent imagery and ensuring every step is being taken to appear in as many consumer searches as possible.

These questions have added resonance, as Auto Trader has embarked on a new marketing campaign called The Searchers, designed to drive more buyers to dealers’ online showrooms.

Search is part and parcel of our daily routine; we all search for news, we search for information, we search for the best deals on hotel rooms and car insurance. Ninety-two per cent of visitors to autotrader.co.uk use the site to search, and searching is how they find the car that’s waiting on your forecourt. The new campaign aims to bring meaning and emotion to the simple human instinct of searching, reminding car buyers that Auto Trader should always be their first port of call when considering their next car.

The ad premiered on Boxing Day on terrestrial TV, as well as some on-demand services such as 4OD. But short videos will also shine the spotlight on individual characters from the ad. Platforms such as YouTube will play host, as will digital ads placed on big household name sites such as Mail Online. Activity is set to run over a six-month time frame and is designed to reach as many

potential buyers as possible. TV has a huge reach and Auto Trader aims to target as many potential car buyers as possible. The ad will be seen more than 350 million times – a reach that can’t be achieved through any other media.

The company says it will keep Auto Trader at the forefront of customers’ minds, even at times when they are not planning on buying a car. But when they are, the first thought will be to turn to the country’s largest online marketplace!

Prepare to be found Forecourts may be quiet, but that’s partly a reflection of a general decline in physical visits in the past three years. Down by around 41 per cent, today, the forecourt visit is, more often than not, the affirmation of a purchase decision that has already been made online.

But that doesn’t mean there are fewer buyers in-market. It’s merely a reflection of changing buying behaviour. Buyers research intensively online and for longer periods than ever before.

And they are increasingly using mobile and tablet devices to find your cars, with ‘multiscreening’ the norm in households up and down the country.

So if a physical forecourt seems quiet on a January morning, dealers should remember that their online showroom may be heaving with potential buyers, particularly in the evening. And that means standing out in a crowded online marketplace should be your priority.

CarDealerMag.co.uk | 109

focus on.

Auto Trader

Stand out in January: Hopefully, your forecourt is stocked with the most desirable cars. Now is the time to make sure your cars stand out for all those online researchers.

Quality images – and plenty of them – complemented by clear, detailed descriptions are the two most important things that will draw in buyers and boost full-page advertisement views.

Seventy-nine per cent of consumers are more likely to make a purchase if a variety of images are available online, reinforcing the importance of your showroom gallery. Customers want to walk around the car from the comfort of their own home and more images help drive full page ad views. Auto Trader research shows that 49 per cent of buyers expect to see ten or more images of a car for sale while, perhaps unsurprisingly, 69 per cent are less likely to click on an ad with unappealing pictures. Forty-three per cent will disregard a car entirely if it is accompanied by fewer than three images. ���| CarDealerMag.co.uk

2.2

2.3 8.8

14.6

6

11.6

5.1

full-page-ad views (AVERAgE no.)

Key: Number of images of cars

4.2

0

click-through rates (%) 4

9

20

Image quality:

Q&A with Nick King

A picture paints a thousand words, and to maximise the potential of your stock you should always consider angles, lighting, background and positioning. Auto Trader has created a set of tips to help with some dos and don’ts to help, and on the right, we feature an interview with market research director Nick King.

After

Tips for Good Car Photography

Do:

n Ensure each car is fully prepared n Ensure the background is neutral and free of clutter n Use tyre shine to enhance tired-looking wheels n Use a tripod to bring uniformity and avoid blurry images n Switch on sat-nav and other equipment to highlight in images n Straighten the steering wheel and align the front seats

Don’t:

n Take pictures of vehicles with cluttered backgrounds n Take pictures of dirty vehicles n Take pictures of damaged wheels n Blank out number plates n Frame more space below the car than above it n Take interior shots with a misaligned steering wheel

For more photography tips, visit your Dealer Portal.

Strong descriptions: Finally, don’t forget to give buyers as much information about your stock as possible. Pull out the headlines and demonstrate value in your descriptions. Include past history and bring a car to life with personalised details. There are over one million searches each month for specifications like ‘satellite navigation’ and ‘leather seats’ so if your car has it, make sure your buyers know about it.

And remember, although the price of fuel has come down in recent months, running costs remain one of the most significant concerns for motorists.

So if the car you are offering for sale is one which boasts strong fuel economy, or is low tax or, better still is tax-free, make sure that is included in your description.

Before What sort of camera will help deliver the best images?

You’ll get the best results with a digital SLR camera, but you can still achieve quality images with a standard camera. A tripod is a really important investment though, to help avoid shaky images and for consistency – making sure all pictures are taken at the same height.

How much preparation should I do, before shooting?

Preparation is absolutely essential. Though a customer may be buying a used car, they still want it to look new. Before taking any pictures, a car should be clean and prepared to a high standard inside and out. Attention to detail is key. Make sure the wheels, tyres and interior are as clean as the paintwork. If you want to take photos of the engine, make sure that’s sparkling too.

Is the backdrop important?

You don’t want the backdrop to draw attention away from the car. Any distractions, including your own dealership’s branding, can be a problem. Choose a neutral background, free of clutter and make sure it doesn’t ‘age’ the car.

A snowy forecourt in spring will imply you are having trouble selling the car. If it’s a challenge to find a great background, Auto Trader’s Image Enhancement Service can put your vehicle on to the background of your choice.

What about distances and heights?

Photos taken too close to the vehicle can make it look distorted. To get the right distance, stand next to the front of the car then take five large steps backwards. Another thing that can cause distortions is photos taken at the wrong height.

Lower the camera so it’s level with the wing mirror. This is where a tripod can really help.

Make sure all images are consistent too, in the same location, with the front and rear wheels positioned consistently and at the same time of the day.

Should the car fill the frame?

There should be more space above than below the car and equal spacing on either side.

Activating the grid on your camera can help. For exterior shots use ¾ images as well as full frontal, rear and side views. These help to display more detail of the vehicle. But remember to maintain the correct height and distance for the camera.

To keep the background consistent, it’s better to move the car, than the camera.

What tips are there for interior shots?

To give buyers the best overview of the vehicle, you need great interior shots. Straighten the steering wheel, align the front seats and clear the car of clutter and any rubbish. If there’s technology, like satellite navigation, then turn it on if you can. Don’t forget to take shots of the dashboard, backseats and the boot.

How many images should I have?

The answer is as many as possible. Forty-nine per cent of buyers would like to see ten or more images of a vehicle for sale and 43 per cent will disregard an ad if it has fewer than three images.

Ideally, you will be subscribed to the 20-image package. And if so, take advantage by taking photos of key selling features. Be creative if you like to show off key features.

Following these simple steps will ensure your images are of high quality, are consistent and most importantly help drive more click-throughs to your full page adverts. Others are improving the quality and quantity of their images all the time, so make sure you’re keeping up, or more importantly, standing out online. [CD] CarDealerMag.co.uk | 111

focus on.

FindsYouCars.com

Using sellers to source stock FINDS YOU CARS

O

W: findsyoucars.com T: 0121 224 7334

ther than to carry out a part-exchange transaction, the concept of seeking stock from buyers sounds a bit odd, don’t you think? In actual fact, it’s a great idea!

Thanks to a new online car-buying service, dealers no longer need to battle for the best price in auction houses or even search the depths of the internet to find the right cars. Instead, they can now search a secure system of used vehicles listed for sale by their owners and purchase new stock directly from consumers using FindsYouCars.com.

It’s a win-win situation for both dealer and seller. In essence, the seller, who’s keen to get the right price for their car, can place an ad on the FindsYouCars wesbite that will automatically be visible to a network of authorised independent and franchised dealers. Furthermore, dealers who have placed a ‘wanted ad’ for a specific car will be notified of any vehicles that match their criteria,

eliminating costly expenses and dramatically improving the level of efficiency. ‘It’s quick, easy and ensures a fair price for the consumers, but at the same time, it gives dealers the opportunity to cut the cost margins usually taken by auction houses and other online car-buying sites,’ says Guy Walker, CEO of FindsYouCars. ‘The service is inspired by dealers great and small, allowing them to buy stock quickly and for the right value. Sellers are always keen to get the right price for their car and who is better placed to value a car than a car dealer?’ So you must be thinking what’s the catch? Surely it can’t be as easy as it sounds? Well, it is!

FindsYouCars.com does exactly what it says on the tin and Walker explains that dealers of all shapes and sizes are already involved. ‘We work very closely with a large number of dealers, all of whom are confident that they will

find the right car for the right price using our system. The process is as simple as it sounds; we’ll take what the dealer is looking for and match that against the cars advertised by the sellers. The dealers are able to browse the listings, but to help speed up the process we will notify them of any vehicles that match their specific criteria. ‘We only allow authorised dealers to register on our secure site and to ensure that dealers and sellers don’t encounter any time-wasters along the way, we constantly monitor our network of registered users, to make sure they are in fact selling and buying cars. ‘By representing a great proportion of dealers across the UK, FindsYouCars is very well trusted by consumers and dealers and we intend to build on our reputation in providing the most secure and cost-effective way to buy and sell cars.’ [CD]

by Sophie Williamson-Stothert (@1Sophie_W )

W: 22pointsix.co.uk T: 0843 658 8270

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Remarketing services

Ready to rock in 2015!

CITY AUCTION GROUP

T

he start of a new year is always an exciting time – and for the team at the City Auction Group, there’s certainly a lot to look forward to.

The company, with three thriving centres in Ireland – Belfast and Omagh in the north, and Dublin in the republic – is expanding into England and is all set to offer vendors and purchasers an interesting new take on the auction experience.

As we’ve already reported in Car Dealer, the venue they’ve chosen for their new venture is a cracking one – Rockingham Motor Speedway, in Corby, Northamptonshire.

The circuit – which incidentally was the venue for last year’s hugely-successful Car Dealer Conference – offers world-class facilities in a great location.

And anyone travelling to Rockingham for City Auction Group’s first event on February 5 will quickly become acquainted with the forward thinking, investment in technology and great levels of customer service the company has become famous for over the past few years.

It was hardly surprising managing director Michael Tomalin was upbeat when Car Dealer caught up with him recently.

He explained that City Auction Group’s new base at Rockingham will be staging corporate auction events on behalf of major contract hire and leasing companies, financial institutions, daily rental firms and manufacturers.

And he promised that those attending one of his company’s sales at Rockingham – which will increase in frequency during 2015 as City Auction Group moves into its new building at the complex – will be mightily impressed with what’s on offer.

‘In Ireland, we have operated in a very open and transparent manner and people have taken to that,’ he explained. ‘They understand our philosophy and our vision for taking the group forward. In the 40-odd months since we rebranded from Carryduff Auctions to City Auction Group, we have taken the market by storm. We’ve come an awful long way very quickly, accumulated a lot of corporate business and become a major success.

‘So what we’re trying to do at Rockingham is bring that approach to England. Rockingham itself is a world-class venue. It’s a central hub and I think it’s got something different to offer. Our main

‘‘

W: cityauctiongroup.com T: 01536 270280 Rockingham is home to a range of exciting motorsport events

vendor for our launch sale event is Lex Autolease who are supplying us with 250 vehicles for our first three sales. They are number one in the FN50 listings and the UK’s largest contract hire and leasing company.

‘They believe in what we’ve got to offer, which is a great endorsement of our strategy.’

In total, 500 corporate vehicles will be going under the hammer on February 5, from 25 corporate vendors. And to add to the day’s excitement, Nascar racing cars will be tearing round the Rockingham circuit, providing an exciting spectacle and something a little different from your average auction!

Tomalin added: ‘We’re also going to have the first ever live bid lounge in which buyers will be able to sit in comfortable chairs, view live feeds from the auction hall and bid online from their smartphones or tablets. That’s something which is unique.

‘Rockingham is providing us with a great opportunity to develop our business. There are more than 100 acres of hardstanding ground at a fantastic, high-profile, motor-racing venue, offering

I see a real gap in the market for a top-tier, independent auction house to come into the market and do a good job

tailor-made facilities. These include secure vehicle storage and inspection areas, enhanced valeting facilities, space to carry out refurbishment, and handover pods. We’re all very excited.’

As we’ve already mentioned, City Auction Group has become a popular and hugely-respected name on both sides of the border in Ireland in recent years. And although the team will clearly have lot to do to make sure their new Rockingham venture gets off to a flyer, they are certainly not taking their eye off the ball at any of their three Irish outlets.

‘Obviously, it’s very important we don’t drop the ball in Ireland,’ confirmed Tomalin. ‘Belfast, in particular, has taken Northern Ireland by storm so we don’t want to lose our momentum there.

‘And I don’t want our expansion to stop in England. We see our Rockingham facility as a springboard to move into London. And from there we’re looking at a global platform. There’s no reason why we can’t do that.

‘No-one is ahead of us in terms of technology – it’s just a question of hard work, commitment and effort. I see a real gap in the market for a top-tier, independent auction house to come into the market and do a good job.

‘In the meantime, we look forward to seeing franchise and non-franchise dealers at our inaugural Rockingham event on February 5.’

by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 113

Stock More.

Sell More.

NextGear Capital, a revolutionary new Stocking Plan for used vehicle dealers.

Increase, upgrade or diversify your stock Quick, easy and paper free Improve cash flow, drive sales, stock more, sell more StockMaster facility available for customers to fund their NextGear Capital vehicles online

APPLY ONLINE AT

nextgearcapital.co.uk

or for further information call: 0843 50 60 600†

Dealer Stocking. Simplified.

APPLY ONLINE TODAY

NextGear Capital UK Ltd, International House, Kingsfield Court, Chester Business Park, Chester CH4 9RE †We may monitor and record calls, emails and SMS messages between you and us for quality control, training purposes to improve our services and to keep a record of what was said. Stocking Plan is subject to agreement, status and terms and conditions. ���| CarDealerMag.co.uk

focus on.

Remarketing services

More stock, better cash flow NEXT GEAR CAPITAL

S

tock more cars and sell more cars – two objectives many of us in the automotive industry would like to achieve in 2015.

But all too often, cash flow issues restrict the way we do business and thus limit our potential for profitability.

Imagine life with a different way of purchasing, however. One you could use quickly and easily, at many auctions and online throughout the UK, and manage without any hassle using your smartphone, tablet or desktop computer.

Sounds too good to be true? Well, it isn’t.

NextGear Capital offers all of the above and much more besides. Their purchasing solution, although only having been available to UK dealers since May 2014, is the ideal way to increase the value of the cars on your forecourt (and therefore potentially add to your bottom line); increase the number of vehicles you have in your possession; or maybe even facilitate expansion plans you might have in mind.

NextGear Capital provides used car and van dealers with its revolutionary Stocking Plan, in other words, a stocking plan with a limit set in consideration of the dealer’s wishes.

The Stocking Plan provides dealers with a buying and selling process that’s entirely paper-free and extremely fast thanks to the company making a significant IT investment as it commenced operations in the UK. (Incidentally, there’s no need to be concerned about dealing with a relatively recent arrival on the automotive scene. NextGear Capital is part of the Cox Automotive Group, with companies such as Manheim and AutoTrader also members of the family.)

W: nextgearcapital.co.uk T: 0843 50 60 600 GIVING CUSTOMERS MORE CHOICE NextGear Capital haven’t found it difficult to get dealers to sing their praises since arriving in the UK last May. Dale Hodgkinson, proprietor of Strongford Garage, said: ‘You’d be mad not to take advantage of a reasonably priced, flexible stocking plan.’

He continued: ‘Opening a NextGear Capital Stocking Plan has allowed me to increase my stock holding. This has had an impact on stock churn because I’m able to give customers more choice. There are no ties to a retail finance provider and you don’t get charged if you don’t use the plan, which gives me greater control over what I can buy and flexibility in where I can buy from.’

In the few months since the ribbon was cut at the official opening of NextGear Capital’s offices in Chester, hundreds of dealers up and down the country have discovered the benefits of a Stocking Plan arranged by the team.

The way it works is very straightforward. The company has teamed up with most major auction sites across the UK – including all Manheim premises – who have become ‘approved sources’.

Dealers who have signed up for a NextGear Capital Stocking Plan can purchase vehicles quickly and easily at any of them by simply asking for a vehicle to be added to their Stocking Plan once they’ve successfully bid on it. Alternatively, they can achieve the same result with the click of a button

using NextGear Capital’s StockMaster app, removing the need to queue up, maybe, or enabling a quick getaway from the auction site and a chance to beat the traffic!

Car Dealer recently caught up with David Mercer, managing director of NextGear Capital, and he explained that the company had been very successful in forming partnerships with auction houses. He told us: ‘We’ve got 25 sites from 18 independents live and we have got the Manheim branches as well of course. We’re just starting to partner with rental companies and other approved sources as well.

‘Moving into 2015, we’ll be focusing on getting other approved partners signed up, so our buyers have the biggest possible network of approved sources to fund through.

‘The benefit to the dealer is that we don’t challenge the price the approved source sells the vehicle at. We fund 100 per cent of the price they have paid for the vehicle without any question.

‘The other way we operate is via our ‘‘trade source’’ route. A dealer can buy a vehicle from a part-exchange source, a local trader perhaps, or an auction or rental company that doesn’t work with us, load the vehicle on to the Stocking Plan themselves and we pay out to the dealer direct.

‘Their account is flexible. We don’t put any particular financial constraints in place but there is an overall limit and how dealers work within that is their business. If you think of the credit card payment model, it works in a very similar way.’

With such an easy-to-understand method for dealers to get hold of more stock and ultimately make more money, you’d expect to hear that the first few months of operation have been pretty successful for NextGear Capital. And you’d be right!

David Mercer confirmed: ‘We’re finding the rate of applications very healthy.

‘We’ve got the best part of 100 applications coming into the business each month. And dealers are finding that working with us presents them with a range of exciting possibilities.

‘They can either get hold of more vehicles, better vehicles, or maybe use a Stocking Plan to expand their site or open a second one. All of those things are happening and we’ve had a lot of dealers come back to us for line increases.’

It seems as though NextGear Capital have made quite an impression since their arrival in the UK so if you want better cash flow, more profit, and a far easier life when you interact with an auction company, why not get in touch?

by Dave Brown (@CarDealerDave) [CD] CarDealerMag.co.uk | 115

DATA FILE.

Thestatistics n

SMMT Sales Data

n

Taking Stock

The fourth largest year ever – but will market level off?

Pent-up demand from recession helps deliver bumper registration figures

T

he SMMT has revealed that almost 2.5 million cars were registered in the UK in 2014 – the highest number in a calendar year since 2004.

And last year was the fourth largest of all time, with only 2002, 2003 and 2004 seeing more cars registered.

The 2014 market grew 9.3 per cent over the previous year – an impressive performance when compared with the EU average of 5.7 per cent.

The exact number of cars registered in the UK during 2014 was 2,476,435. And the figure for December was 166,198, up 8.7 per cent on December 2013. Further analysis of the registration figures for the last month of 2014 reveals: n The UK remains the second-largest market in the EU (behind Germany and ahead of France, Italy and Spain), and recorded the second-largest growth of these top five EU markets. n Every month in 2014 saw a rise, with

December’s 8.7 per cent rise the 34th consecutive month of growth. n Huge growth for the plug-in car market, which saw volumes quadruple from 3,586 in 2013 to 14,498 in 2014.

Mike Hawes, SMMT chief executive, pictured, said: ‘UK new-car registrations returned to pre-recession levels in 2014, as pent-up demand from the recession years combined with confidence in the economy saw consumer demand for the latest models grow consistently and strongly. The year was particularly strong for alternatively-fuelled vehicles as increased choice, coupled with a growing desire for reduced costs and greater efficiency, resulted in a quadrupling of plug-in car registrations over 2013.

‘With a variety of new plug-in models expected in 2015, this area of the market will continue to grow significantly. For the market as a whole, we expect a more stable 2015 as demand levels off.’

Richard Lowe, head of retail and wholesale at Barclays, said: ‘It’s been yet another jubilant year for UK newcar registrations, thanks to the recipe of quality products, range of choice, alluring finance deals and everimproving consumer confidence.

‘January is also likely to motor ahead as a strong month, although the real test will be in March when the new plate change comes in, as it remains to be seen if 2014’s bumper high of an almost 18 per cent increase can be smashed.’

The best-selling car during 2014 – with a lead of more than 45,000 over its nearest rival – was the Ford Fiesta, with 131,254 registrations. And the secondplaced car was also a Blue Oval model, the ever-popular Focus, shifting a total of 85,140 units. Making up the rest of the top 10 for 2014 were, starting with the third-placed car, the Vauxhall Corsa (81,783); Volkswagen Golf (73,880); Vauxhall Astra (59,689); Nissan Qashqai (49,909); Volkswagen Polo (48,004); Audi A3 (45,581); Fiat 500 (44,005) and the Nissan Juke (39,263 units).

Too many niches could affect RVs, say Glass’s MOTOR manufacturers’ increasing appetite to add niche models into the new-car market could start to hit residual values.

That is the prediction from Glass’s, the largest vehicle data provider in Europe and, since 1933, publisher of the Glass’s Guide to Car Values, widely referred to as the used car dealer’s bible. ���| CarDealerMag.co.uk

Niches were in danger of becoming the new mainstream and, if this happened, used values would inevitably start to fall, warned Rupert Pontin, Glass’s head of valuations.

He said: ‘This can really be traced to the introduction of the Nissan Qashqai in 2006 when Nissan pulled out of the D sector with the halting of production

of the Primera. The move was a huge success and, since then, we have seen a plethora of new niches – all kinds of soft-roaders, coupe-saloons, 4x4 coupes and more. At every motor show we see something different.

‘The danger is, we feel, that we are potentially at a point where there are simply too many niches to sustain.’

SMMT sales data Dec / 2014 full-year

5

Top

Most-improved manufacturers in December Maserati

+562%

Infiniti

+276%

Chrysler

+204%

Abarth

+133%

Ssangyong +123%

5

Bottom

Worst-performing manufacturers in December Chevrolet

-100%

Perodua

-100%

smart

-95%

Lotus

-92%

Dacia

-26%

JAGUAR +36.56%

PEUGEOT -11.70% 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

Dec 2014

2014

126 329 73 8,013 108 12,445 0 149 5,182 1,503 3,996 20,509 3,460 4,578 79 1,356 320 3,907 3,652 709 5 106 1,715 7,774 128 0 7,172 1,362 8,762 0 5,509 813 10 5,162 0 3,892 4,615 13 76 229 2,053 5,687 23,162 14,475 2,723 36 225 166,198

% market share 0.08 0.20 0.04 4.82 0.06 7.49 0.00 0.09 3.12 0.90 2.40 12.34 2.08 2.75 0.05 0.82 0.19 2.35 2.20 0.43 0.00 0.06 1.03 4.68 0.08 0.00 4.32 0.82 5.27 0.00 3.31 0.49 0.01 3.11 0.00 2.34 2.78 0.01 0.05 0.14 1.24 3.42 13.94 8.71 1.64 0.02 0.14

Dec 2013

2013

54 313 78 7,442 75 11,470 395 49 3,875 2,047 4,060 19,496 3,368 4,757 21 993 190 3,787 3,012 629 63 16 1,442 6,619 120 0 4,011 763 7,040 1 6,239 777 0 5,372 0 3,606 5,286 304 34 210 2,270 5,042 21,302 13,725 2,528 24 13 152,918

% market share 0.04 0.20 0.05 4.87 0.05 7.50 0.26 0.03 2.53 1.34 2.66 12.75 2.20 3.11 0.01 0.65 0.12 2.48 1.97 0.41 0.04 0.01 0.94 4.33 0.08 0.00 2.62 0.50 4.60 0.00 4.08 0.51 0.00 3.51 0.00 2.36 3.46 0.20 0.02 0.14 1.48 3.30 13.93 8.98 1.65 0.02 0.01

% change 133.33 5.11 -6.41 7.67 44.00 8.50 -100.00 204.08 33.73 -26.58 -1.58 5.20 2.73 -3.76 276.19 36.56 68.42 3.17 21.25 12.72 -92.06 562.50 18.93 17.45 6.67 0.00 78.81 78.51 24.46 -100.00 -11.70 4.63 0.00 -3.91 0.00 7.93 -12.69 -95.72 123.53 9.05 -9.56 12.79 8.73 5.46 7.71 50.00 1,630.77 8.68

2014 1,642 5,523 864 158,987 1,472 148,878 2,774 1,982 83,397 23,862 67,162 326,643 53,544 81,986 746 18,401 3,909 77,525 56,200 11,572 235 1,194 37,784 124,419 2,326 5 53,661 15,805 138,338 29 103,566 9,160 11 66,334 3 53,512 75,488 4,342 1,542 2,793 37,395 94,012 269,177 214,828 41,066 774 1,567 2,476,435

2014 as a whole % market share 0.07 0.22 0.03 6.42 0.06 6.01 0.11 0.08 3.37 0.96 2.71 13.19 2.16 3.31 0.03 0.74 0.16 3.13 2.27 0.47 0.01 0.05 1.53 5.02 0.09 0.00 2.17 0.64 5.59 0.00 4.18 0.37 0.00 2.68 0.00 2.16 3.05 0.18 0.06 0.11 1.51 3.80 10.87 8.67 1.66 0.03 0.06

2013

1,352 5,687 926 142,040 1,231 135,583 11,676 2,515 78,358 17,146 60,198 310,865 55,660 76,918 386 16,210 2,229 72,090 54,699 9,014 256 319 31,228 109,456 504 5 51,933 9,044 117,967 206 105,435 8,260 20 46,173 3 45,312 66,081 5,314 662 2,271 33,088 88,648 259,444 194,085 32,666 759 815 2,264,737

% market share 0.06 0.25 0.04 6.27 0.05 5.99 0.52 0.11 3.46 0.76 2.66 13.73 2.46 3.40 0.02 0.72 0.10 3.18 2.42 0.40 0.01 0.01 1.38 4.83 0.02 0.00 2.29 0.40 5.21 0.01 4.66 0.36 0.00 2.04 0.00 2.00 2.92 0.23 0.03 0.10 1.46 3.91 11.46 8.57 1.44 0.03 0.04

% change 21.45 -2.88 -6.70 11.93 19.58 9.81 -76.24 -21.19 6.43 39.17 11.57 5.08 -3.80 6.59 93.26 13.52 75.37 7.54 2.74 28.38 -8.20 274.29 20.99 13.67 361.51 0.00 3.33 74.76 17.27 -85.92 -1.77 10.90 -45.00 43.66 0.00 18.10 14.24 -18.29 132.93 22.99 13.02 6.05 3.75 10.69 25.71 1.98 92.27 9.35

CarDealerMag.co.uk | 117

TAKING STOCK. Remarketing specialist BCA gives its thoughts on matters that are important to dealers for the months ahead . . .

Best vehicles selling quickly in emerging two-tier market Demand softened as the year-end approached, says Simon Henstock, BCA’s UK network operations director

A

verage used-car values reached record levels in November as buyers competed strongly for the stock on offer. The headline average value of a used car increased for the second month running, rising by £327 (4.2 per cent) to £8,075, with performance against CAP Clean averaging 95.2 per cent.

November’s average value beat the previous highest, recorded in August of last year.

Year-on-year values remained ahead by £586, equivalent to a 7.8 per cent uplift, with both average age and mileage continuing to decline.

CAP Clean performance was down by more than a point, year-on-year.

Every month in 2014 has recorded a significantly higher average value compared with the same month in 2013.

Fleet and lease cars averaged £9,633 in November, a rise of £100 (1.04 per cent) compared with October, while average dealer part-exchange values improved for the third month running to reach £4,188. Both sectors recorded the highest monthly average values since Pulse began reporting in 2005. Nearly-new values improved by 2.4 per cent to £21,677, although model mix has a significant

‘Volume sellers need to revalue any vehicles that are difficult to remarket.’ effect in this low-volume sector. With many retailers anecdotally reporting reduced footfall in November, demand softened somewhat as the year-end approached, which is very typical of the season. Balancing this, there remains a shortage of good-quality, retail-ready stock, and this is keeping the values of these premium vehicles on a high.

What we are seeing is the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract bids. If less desirable cars in unattractive colours, with a poor specification and needing paint and refurbishment, are overvalued, there is every chance they will remain unsold, putting pressure on conversion rates.

Volume-sellers particularly need to pay

attention to this and reappraise and revalue any vehicles that are proving difficult to remarket.

As we’ve seen, fleet and lease cars averaged £9,633 in November – a record value that was just ahead of the previous high point recorded in April of last year.

Despite this, CAP Clean performance fell slightly to 94.66 per cent on average over the month. Year-on-year values were ahead by £332, equivalent to a 3.5 per cent uplift. The retained value against original MRP (Manufacturer’s Retail Price) fell slightly at 41.70 per cent when compared with October and was down year-on-year.

The average dealer part-exchange value of £4,188 represented a new record value for the second month in a row. Year-on-year values were ahead by £331 (8.5 per cent) with average age continuing to rise and mileage falling over the year. CAP Clean performance was down around a point compared with a year ago.

After two consecutive monthly falls, nearly-new values improved by £509 (2.4 per cent) to £21,677 in November, and again, as we’ve indicated, model mix has a noticeable effect in this low-volume sector. CAP Clean performance fell slightly to 99.3 per cent.

BCA dashboard Value month-on-month All cars vs Oct 2014

Part-Ex

£4,188

All cars vs Nov 2013

£586 7.8%

���| CarDealerMag.co.uk

All cars vs Nov 2013

55,098

4.2%

1.26% Variance year-on-year

Mileage

£8,075

vs Oct 2014

Age in months

Fleet/Lease

58.80

£9,633

All cars vs Nov 2013

1.43

vs Oct 2014

1.04%

1,239 Fleet/Lease

Nearly new

41.70%

£21,677

MRP vs Oct 2014

0.8

vs Oct 2014

2.4%

Buyers’ guide

VW Golf Mk5 & Mk6 We help you choose the best stock for your forecourt.

This month, a sporty model by name and reputation...

I

t’s no secret that during the Nineties VW lost its way with the Golf GTi. The Mk1 and Mk2 GTis were head and shoulders above the rest and created a reputation of solid build quality, excellent reliability and a drive that was without compare in its class. The Golf GTi defined its sector.

Then came the Mk3 and Mk4. The GTi became little more than a trim level, barring a few special editions. Build quality dipped and the drive and handling lacked the sparkle buyers had expected.

The competition moved on and VW lost out.

Then in 2004 came the Mk5 and with it VW created what is considered, out of all the GTis, the one which handled the best. The Mk6 was a heavily facelifted version of the Mk5, sharing all that made the Mk5 great.

And what a great car it was.

An all-new chassis with a fully-adjustable independent set-up at the rear, tweaked specifically for the GTi, made it rewarding to drive, but not overly stiff. However, the new 2.0TFSI was the star of the show, and with a shade under 200bhp the car could sprint to 60mph in under seven seconds.

Spend ten minutes in a Mk5/6 Golf GTi and it’s immediately apparent why these cars are loved so much – and with this love comes a healthy demand and strong residuals. Build quality is vastly improved over the previous shape and the lack of electronic parking brakes and the like ensures maintenance costs are reasonable. With solid build quality, a good engine and excellent gearboxes,

rust

the biggest challenge is ensuring you don’t buy a clocked car. It can easily cover high mileages without any apparent wear and tear and as such they are rife with clockers. Make sure you get a mileage check when you HPI the car and take a careful look at the MoT. Unlike many hot hatches, where a manual is the only option, the GTi was supplied with an awesome DSG gearbox. Not only does this make the car quicker, it also helps improve its mpg and arguably improves the driving experience – in fact, it’s one of the only hot hatches of its generation where the auto is as sought after as the manual. However, when looking for stock, mid-2005 onwards cars are a safer bet because of improved component quality.

Cambelts are supposed to last 120,000 miles/ four years. However, cambelt tensioners are supposed to last only 60,000 miles, and a rattly, tappety-sounding engine is a sign the tensioners need attention. There was a recall issued in 2006 to update the earlier tensioners with an improved kit, so check to make sure this has been done.

As always, it’s recommended to change water pumps at the time the cam belt is changed.

Early cars were reported as being a little jerky at slow speeds because of ECU mapping, but was addressed with another

The earlier cars are starting to show some signs of rusting, particularly front and rear wheel arches and rear chassis box areas.

recall, so again check this has been done.

DSGs need an oil and filter change every 40,000 miles, and avoid one that’s jerky away from a standstill. It may be an expensive fix – a lot of the earlier pre-2007 cars required valve body to remedy. Rumours are that early-2004 cars had a further recall for steering racks, so check to see if a new one has been fitted. If not, clunking on left turns mean you’ll soon need one.

Early-2004 cars have more issues with interior quality, with rattles and creaks common.

Mk5s can suffer from a misting windscreen when first started up in the cold. Don’t waste time trying to trace a leak – ‘they all do that’ is the general view. Just make sure the air intake below the windscreen is clear of leaves.

Spec is important on the GTi. If you want to make sure your stock stands out, full leather is well worth looking out for, as are the upgraded polished chrome alloys. Three-doors will find homes among the younger buyers, but the five-door is more popular and arguably a betterlooking car. The ideal buy would be a five-door in black or red with leather interior and alloys.

Throw in Bluetooth and you have a car that won’t have cooled down before it’s disappeared from your forecourt!

By Andy Entwistle (@CarDealerAndy)

leaks

Check the door seals, as three-door models can leak. Make sure the front carpets aren’t damp. Water ingress through the rear lights is not uncommon.

CarDealerMag.co.uk | 119

Available on iPad free app download free subscription interactive content

Search for ‘Car Dealer Magazine’ in the iTunes store ���| CarDealerMag.co.uk

Powered by

auctions.

Hyundai building two more factories in China bit.ly/china-plans

4x4s shoot up in value as cold weather arrives Market is seeing a shift to ‘condition’ being the chief value influencer

price, November’s stock also saw a slight increase in average age (from 99 to 100 months) and average mileage (from 75,405 to 76,649) in part-exchange vehicles at auction.

Wiseman said: ‘The market as a whole is seeing a shift towards condition, rather than age and mileage, being the chief value influencer – and this month’s figures attest to that. January is typically a very busy month for dealers as buyers look to start the new year with a new car.

‘To best handle this, dealers should ensure their forecourt stock matches buyer demand. Brightly-coloured convertibles might be ideal for summer driving, but sales for such cars are likely to stall during the colder quarter of the year.

‘This year has been particularly impressive for dealers, with 12 consecutive months of value appreciation, which bodes well for 2015.’

BCA’s remarketing deal with Endeavour Group BCA has announced an exclusive remarketing agreement with Londonbased Endeavour Automotive Group.

The deal will see BCA remarket about 1,500 vehicles annually for Endeavour Automotive Group which holds franchises for Volvo and Hyundai at eight retail outlets in and around Car dealer cowboy ads 28/8/13

auction stations

Ensure price is right!

T

D

espite a remarkably mild November, 4x4s have seen an impressive appreciation in value as buyers rush to snap up the winter-ready vehicles. Figures released by Manheim, the world’s largest vehicle remarketing organisation, reveal another strong month for the dealer sector as a whole, with firm favourites such as the small and medium hatchbacks also recording increased values.

The biggest leap in value was seen in the 4×4 sector, with the average selling price increasing throughout the month by more than £500 (or eight per cent) to £7,792.

Meanwhile, the total average selling price of part-ex vehicles in November stood at £3,395 – just £5 higher than October and maintaining this year’s trend of marginal monthly increases in value.

Daren Wiseman, valuation services manager at Manheim, commented: ‘Despite a warmer-than-average November, these figures reveal the demand for 4x4s is increasing as we move towards colder weather. I’d expect this to hold steady throughout winter – and dealers should try to match their stock accordingly.’

Alongside a growth in average selling

Henstock

London. Part-exchange vehicles from Endeavour Automotive Group will be sold at BCA London every Tuesday, with all vehicles available to BCA Live Online buyers.

John Caney, Endeavour Group MD, said: ‘BCA offered an innovative and joined-up approach to remarketing.’

15:49 Page 1

No cowboys.

Just Just trade trade professionals. professionals.

he annual publication of the BCA Used Car Market report underlines just how important it is for dealers to offer used vehicles at an attractive price point for motorists. The ‘right car at the right price’ was cited by 39 per cent of respondents in this year’s survey, and this factor remains the biggest influence on car buyers when deciding which used car retailer to buy from.

And the good news is that even more motorists say they prefer to buy from dealers as the economic recovery continues. When it comes to buying that next used car, the number of motorists looking to do business with a ‘franchised dealer’ rose one point to 49 per cent this year, with nearly half hoping to trade in their current vehicle.

Of those going to a dealer, a quarter expect to get a ‘good deal on the car’, whereas a fifth of motorists look to ‘deal locally’, ‘trade in their car’ and do business with a ‘reliable and trustworthy dealer’.

Meanwhile, 16 per cent say they intend buying from an ‘independent used-car retailer’ and nine per cent from an ‘internet trader’. A significant number of used-car buyers – 30 per cent – still intend to deal ‘privately’ or with a ‘family member or friend’, with men much more likely to buy privately than women.

At 60 per cent, older motorists and wealthier buyers are more likely to favour franchised dealers, while a similar percentage of low-income motorists look to buy privately or from a friend or family member.

Unsurprisingly, younger motorists are more comfortable buying from an internet trader. Interestingly, when choosing a dealer, motorists say ‘helpful, friendly and professional staff’ and ‘easy negotiation’ are far more important than showroom facilities or low finance, underlining the importance of well-trained people in the dealership.

‘A quarter of buyers expect to get a good deal on a car.’

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 | 121

TRADER TALK.

..in association with AutoTrader

Fuel’s cheap, yes, but it won’t be for ever

. . . and with that in mind, you need to address buyers’ concerns with well-worded ads

P

etrol and diesel prices have come down significantly in the last few months. In December the RAC forecast we might be paying as little as £1 a litre for petrol – and some garages are already charging that.

With duty standing at nearly 60p and VAT at 20p a litre, this may be a short-term trend and most motorists know cheaper petrol won’t last for ever. Long-term worries over fuel and other running costs remain and dealers recognise the importance of addressing these concerns in descriptions of vehicles for sale.

Elsewhere in this month’s Car Dealer we take a closer look at the dos and don’ts of car photography, but I want this month’s Trader Talk to focus more on words. Seventy-one per cent of buyers are put off by poor descriptions and getting it right can help drive full page advertisement views – and ultimately more visits to your forecourt.

Low running costs In Auto Trader’s most recent consumer market behaviour survey, 66 per cent of respondents said buying a car that is cheaper to run would be a big factor in their next purchase decision, while 65 per cent said they would look for a more fuel-efficient model. Both these statistics highlight the priority that should be assigned to low running costs in your classified.

Make them stand out. And remember that even a 4x4 can be fuel-efficient and cheap to run. The Mitsubishi PHEV, right, is a good example.

Who is Nick King?

Example features, ranked by car buyers

rank in importance, from 1 through to 7, when looking at car classifieds.

1 Full service history Reliability

Attention grabbers Of course, it may not be relevant for every car on your forecourt, but it makes sense to skew attention-grabbers towards things at the top of this list. Examples could include: Main dealer service history, just £20 per year road tax or returns more than 50 miles per gallon This isn’t rocket science, but I’m still surprised that around seven per cent of cars listed on Auto Trader (circa 30,000 of adverts) don’t include headline grabbers at all. And that’s a missed opportunity. Think of any online or print advertisement. Firstly you are drawn to an image with impact. Then your eyes focus on a snappy headline that appeals directly to something you want or need. That helps you drill naturally into the body text of the message to learn more.

Without a headline grabber you’re missing an important step.

2 Low mileage Low running costs 3 High miles per gallon Low running costs 4 Low / free road tax Low running costs 5 Sat nav / Bluetooth

Specification

6 Xenon headlights

Specification

7 ‘Ideal first car’ Other Reliability Reliability goes hand-in-hand with running costs.

A more reliable car will be cheaper to run and 58 per cent of buyers say this is their top priority when buying a used car. So we shouldn’t be surprised to see that ‘full service history’ sits at the top of a list of features we asked buyers to

Rounding prices Good descriptions are important. But there’s one other simple step you can take to increase your chance of standing out – and that involves rounding prices.

A car that is priced at £7,999 will appear in buyer searches in the £7,000 and £8,000 price range. But one priced at £8,000 will also appear in searches between £8,000 and £9,000. For the sake of a pound you could increase the chances of one of your forecourt stars being found by a factor of 50 per cent.

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

MARKET INSIGHT.

..in association with ASE-global.com

It was a year of consolidation for shares – but what’s in store now?

An inconclusive election result may temper enthusiasm for motor sector stocks in 2015, says Mike Jones

D

ecember was an understandably quiet month, with the only announcement of substance being the issuing of the final accounts for Cambria Automobiles plc for the year ended August 31.

With this in mind, we have taken the opportunity to review the year as a whole.

Share prices finished the year on a modest note, and have in the main out-performed the movement in the FTSE for the year as a whole.

The positive gains seen during 2013 have generally been held, with only Cambria and Pendragon finishing the year marginally lower than their starting positions. The strongest performer among these listed stocks continues to be Inchcape, driven principally by the nonUK performance and future growth prospects.

Inchcape shares finished the year at an all-time high of £7.25, and the company is continuing its share buy-back programme.

Financial performance Cambria Automobiles plc issued its full year statements in December and saw turnover up 14 per cent to £450.1 million and profit before tax up 33 per cent to £5.3 million. The acquisition of the Jaguar and Land Rover (the first for the group) business in Barnet in July contributed £4.7 million to the turnover increase. Cambria continues to invest in its freehold property estate which has grown by approximately £10 million on the back of the business acquisitions, and further purchases of existing dealership freeholds.

The year as a whole has seen positive messages around strong turnover and earnings growth across the board. Whether the tempering in activity towards the back-end of the year, and the drop in used car pricing, dampens the full

Share price movement from January to December, 2013

Share price movement from January to December, 2014

Pendragon

197.18%

94.89%

Vertu

145.73%

99.58%

Lookers

164.06%

105.91%

Inchcape

146.57%

117.98%

Cambria

302.11%

94%

Caffyns

142.56%

102.78%

year results, only time will tell, but it will be interesting to gauge the mood music as the fullyear announcements start to roll in. In view of the strong results reported, the performance of the shares in the sector continues to be somewhat disappointing.

Transactional activity The acquisition by Vertu Motors of the Halifax Nissan business from Lightcliffe Limited was the only acquisition publicly announced recently, although most groups remain on the lookout for acquisition opportunities. There was a further announcement in the trade press in late December that West Way Nissan, the trading brand of Nissan-owned Aprite, had opened a new site in Altrincham that it had acquired from Vertu Motors.

There remains a strong appetite for UK acquisitions in the sector, evidenced by the recent launch on AIM of Haversham Holdings with a £30 million raise to provide due diligence and operating capital, and the Q4 acquisition of the

Allen Ford business by the South African fleet management company Super Group.

Board composition and activity / Directors’ holdings Inchcape continued with its £100 million share buyback programme, with a further 1.3 million shares bought back in the month at a cost of more than £9 million. Vertu Motors announced the issue of 190,000 shares in connection with their 2007 share option plan. Peter Jones finally became non-executive chairman of Vertu Motors on January 2, 2015 and it will be interesting to see who Inchcape turn to as their new CEO following the announcement last year that Andre Lacroix will stand down after the publication of the 2014 annual results in March 2015.

What can we expect for 2015?

There is little doubt the UK remains an attractive place for manufacturers to do business, given the relative strength of sterling and the fragile nature of the European economic recovery. Furthermore, the chancellor’s budget announcement in December should provide a tonic to consumers with dealerships hoping this feeds through to more forecourt activity. However, used-car prices have softened towards the end of the year and with the May general election appearing too close to call, the prospect of political uncertainty that may follow an inconclusive election result may temper enthusiasm for the motor sector stocks on the whole.

Groups with an innovative on-line presence, with brands having a strong pipeline in new model releases and with a war chest for acquisitions are likely to be the safest bets as we head into an uncertain year.

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 | 123

data file.

James Litton Trader tales

Now is the time for investment in retail

A

t the height of the economic crisis, there was a forum page on Pistonheads chronicling car dealers who were going out of business on what seemed like a daily basis.

Victims were not exclusively mainstream brands – there were German casualties too – but often these were bad news stories swept under the carpet by manufacturer-brokered takeovers.

The decision by BMW to rebate their Chinese network $820m for 2014 sales volume bonus shortfalls reminds me of those dark times. No doubt Chinese dealers command greater power of their manufacturer partners, but German manufacturers in particular need to be reminded of their obligation to their network profitability.

Franchised motor retailing stands on the edge of a precipice; we are witnessing a seismic shift in customer buying behaviour which threatens to undermine retail environments as we know them. Without dealer profitability, manufacturers risk losing partner investment in developing creative and innovative retailing environments which could counter the risk of online channels.

LeasePlan Go recently aired a television advert directed squarely at traditional franchised dealers, offering a one-stop shop monthly rental for all elements of car ownership. I visited their site and most of the high street brands are represented. If you combined their comprehensive product offering, with the zany creative of a site like Lingscars, I would genuinely fear the competition.

In these days of empty high street shops, who will be the first to bring maintained lease deals to a former Phones4U or Comet store? There is no reason for LeasePlan Go not to attack these dormant locations. Low rent, no stock, limited cost base and aggravation; car manufacturers are so desperate for the volume these sources represent, they would be hard pressed to introduce supply mechanisms to reduce the impact on retailer groups.

Product specialists are designed to cover experiential inadequacies, but their introduction is like bringing a knife to a gun fight. The time for investment in retail is now. Not just in locations, but in ideas, thinking and execution.

‘Franchised motor retailing stands on the edge of a precipice.’

What do you think? Share your views on our growing 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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Paint protection

Vehicle logistics

Wholesales

Supagard

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E: adverts@cardealermag.co.uk Info: The Suppliers’ Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.

How my girlfriend joined me in a prank

I

did my apprenticeship at a small service and repair shop in the middle of London. It was run by a typical old-school bloke out of the 70s. Well, a chauvinistic pig to be exact.

He was the kind of man who would wolfwhistle at ladies and remark, ‘Would you like a service luv?’ as they passed the open garage doors.

As well as all this, he was rude to everyone and tried to over-charge all the time.

He and the other mechanics, who were just as bad, had a game. It was to ‘score’ female customers by shouting out things like, ‘Dave, have you got that mirror-cracker there mate?’ or, ‘Steve, chuck us that perfect body repair would ya?’ I don’t know if I am over-sensitive or I just don’t agree with stuff like this, either way I didn’t like it and I wanted to teach them a lesson.

Now my other half is gorgeous even if I do say so myself – I am punching well above my weight. So, I asked for her help in teaching these guys a lesson. One afternoon, I asked her to pop in on her lunch break. Now, these old cronies had never met her before so were none the wiser about who she was. She walked through the door and they immediately started their game. ‘Steve, have you got the corker over there?’

Followed by, ‘No Dave, it’s over by the big rack. You should give it one though, it looks as though it needs it.’

Don’t worry, I had briefed my girlfriend on what was going to happen and she played her part perfectly.

She walked over to me. ‘Hi babe, you forgot your lunch so I’ve brought it in for you.’ The look on the old idiots’ faces was brilliant. Not only had they just realised that contrary to their continuous mickey-taking I had actually got a girlfriend, even better than that, they soon worked out that she would probably know about their silly game too.

As she left, she calmly said to my boss, ‘I’m sure you think it’s hilarious to play this so-called game and you think you’re really smart.

‘But I’m telling you, it’s not funny and you certainly aren’t clever. I’m sure you all have some mini-tools to polish or something, so I’ll leave you all to it.’

‘I’m sure you all have some mini tools to polish – I’ll leave you all to it.’

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 | 125

workshops.

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

More than 2,500 garages sign up to new RAC site Workshops can gain access to untapped pools of local customers and the chance to build their reputation with positive online reviews

A

total of 2,700 independent and franchised garages signed up to the RAC’s new, real-time online servicing, repair and MOT price comparison site in the two weeks since the project was announced.

RAC Garage Compare went live in December and the strong response from service providers means there is already excellent nationwide coverage and choice for consumers. of businesses. The key reason for the Douglas Rotberg, CEO of The fast registration rate we have seen is Motorists’ Organisation, which is the the credibility of the RAC brand and RAC’s partner for the project, said: ‘The recognition this is a major development initial wave of registrations has been in the service and repair sector.’ fairly evenly split between franchise Working on the same principles and independent garages, showing the as comparison websites covering appeal of the concept to a wide variety products such as motor insurance and 

Only

Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size.

At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.

With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date.

marshallweb.co.uk

Luton branch’s record month A BEDFORDSHIRE branch of the cosmetic vehicle repair specialists Revive! hit a monthly turnover of £60,000 in October, the highest ever achieved across the UK-wide franchise network. October is especially busy for cosmetic vehicle repair specialists, due to the influx of cars to dealer groups following September’s release of newregistration number plates.

However, the owner of the Luton franchise, Adam Smith, expects to maintain sales at this level over the coming months and forecasts further growth for 2015. During the past year, the business has invested in two new Smart repair vans as well as recruiting and training two new repair technicians. It now has a total of eight vans.

Reach new heights... need apply!

���| CarDealerMag.co.uk

other financial products, RAC Garage Compare is designed to provide RAC members and other motorists with absolute transparency when they compare prices and service standards from independent and franchised garages all around the UK. Consumers simply enter their postcode and registration number plus details for the kind of services they require.

They then book online, receiving a confirmation and are also encouraged to rate the garage after use.

For garages, the new site provides free listings and access to local customers as well as the opportunity to build a strong reputation.

REVIVE!

We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us.

Please go to

www.marshallcareers.co.uk

...with a career at Vertu Motors

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

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

www.vertucareers.com

the fleet.

LATEST FROM THE FLEET...

New arrival:

Kia Procee’d GT Rebecca Chaplin misses the heated seats of the long-term Carens we had until recently, but this car is a breath of fresh air!

I

t was a dark day when we lost our beloved Kia Carens before her time, as we had hoped to have a few more precious months together. But, even so, there was a definite buzz among the editorial team that a new toy was on the way, in the form of a sporty Procee’d GT. Credit where credit is due, the Procee’d GT is great fun to drive and is a breath of fresh air compared to other Kias we’ve had in. Not that they aren’t fantastic cars, they just don’t have that spark which the Procee’d GT has managed to capture.

There are all the sporting touches you could hope for if you’re in the market for a hot hatch.

Flashy graphics on the dashboard, a great growl, striking alloy wheels and mean-looking headlights all features on this model. However, this does make it very easy to get carried away when you’re storming along the motorway in it.

The Procee’d GT and Cee’d GT both came to fruition at the beginning of 2013, making their debut at the Geneva Motor Show that year. A relative of the Cee’d, most commonly recognised for its role as the reasonably-priced car in BBC’s Top Gear, Kia have certainly upped their game over the years. What was once a

rather dull family car has been breaking through into the hot-hatch market.

The Procee’d GT is competing with other fast hatchbacks such as the Ford Focus ST and Volkswagen Golf GTi, and the price is competitive although it’s not far off and what you get for your money isn’t quite on a par with the Ford or VW efforts.

There are some aspects where the Kia is lacking a bit. We’re back to a ‘90s special orange and black screen, which means no sat-nav, but it’s still kitted out with Bluetooth for playing music or making calls – as long as you remember to sync things before you set off.

For your £22,495 you still get a taste of luxury inside with leather and faux suede, although

the knowledge Model: Kia Procee’d 1.6 T-GDi GT TECH Price: £22,495 (as tested) Engine: 1.6-litre petrol Power: 201bhp Max speed: 143mph 0-60mph: 7.4secs Emissions: 38.2mpg (combined) Mileage this month: 546 This month’s highlight Cruising on the M25 in the middle of the night for an early airport start.

we’re missing the heated seats everyone was so fond of in the Carens. If you stand back and stop comparing it to the higher end of the market, the Korean automaker has done a fine job with the Procee’d GT and it’s something I’d be proud to have sitting on my driveway.

My enthusiasm did begin to wane slightly, however, when I had to make my first trip to the petrol station quite early on. We’ve jumped from an extremely economical diesel Kia to a petrol-guzzling beast in the Car Dealer car park, which made the difference seem quite drastic.

When you’re buying into a car with 201bhp you know the running costs aren’t going to be cheap, but the estimated combined miles per gallon given by Kia, of 38.2mpg, seems a little bit optimistic.

I plunged the Procee’d in at the deep end with a reasonable drive from Gosport to Heathrow, and even though this is mainly motorway driving and I hit the road in the evening to avoid traffic, it still seemed to drain the tank rather sharpish. My biggest issue has to be the fact the fuel gauge is so large on the dash, therefore you can’t help noticing how quickly it’s dropping.

Becca Chaplin (@BelieveBecca)

CarDealerMag.co.uk | 127

the fleet.

LATEST FROM THE FLEET...

Third report:

Third report:

Fourth report:

Mazda6

VolvoV40

MitsubishiASX

Locks are all sorted. So now, about those S Club 7 issues...

A bit thirsty, but a boon on these cold winter mornings

Perfect time of year... it’s out with the old, in with the new

A huge Car Dealer shout out this month to Milcars Mazda in Watford for firstly reading my long-term report (nice to know someone does) and secondly for getting in touch to offer some help. You may remember my introduction report for our brilliant Mazda 6 sung a lot of praises – but there were two gripes in there too. The first was to do with the automatically-locking doors which would bolt in the time it took me to walk from the driver’s side to the passenger side. It wasn’t the biggest problem, just more of an annoyance.

The second gripe was with the Bluetooth. It would try to download all my contacts from my iPhone every time I got in and while it was doing that would refuse to stream music. On occasions it would take 10 minutes before it woke up.

Thankfully sales manager at Milcars, Andrew Bassano, was reading my update and knew his master technician Anthony Farron would have an answer. The helpful chaps solved the locking doors issue. There’s a setting deep in the car’s interface – I’ve changed it from 30 seconds to 90 so hopefully that’s solved.

Unfortunately the phone issue is a ‘known problem’. For now, it’s a race to hit a cancel button on the dash before the phone and car begin their mating procedure otherwise it’s in lockdown mode and S Club Seven streaming has to wait.

And you know how annoying THAT is...

James Baggott (@CarDealerEd)

I was keen to spend some time behind the wheel of Sweden’s latest hatchback, as it’s one car I find it difficult to assess. To my eyes it looks fantastic, even despite the stale brown colour of ours, though the regular V40, which sits 40mm lower and does without the faux off-road exterior trinketry, looks better still.

This aesthetic sullying is only made worse by the knowledge that the Cross Country doesn’t get any additional off-road hardware over the standard model, being front-wheel drive unless you go for the top-spec petrol model.

No matter – the car’s exceptionally comfortable seats and bangin’ Harmon Kardon stereo made light work of the holiday schlep home to the Midlands, where the cacky-coloured Swede did its best to worm its way into my affections with its powerful heated seats and windscreen, which made getting going in the morning frost an altogether more civilised affair.

The engine, too, proved a boon, with heaps of torque low down, meaning I could be as lazy as I pleased with my gear changes – just as well given the annoyingly calibrated clutch pedal and recalcitrant gear-shift. And, despite my best efforts, I wasn’t able to get better than 38mpg out of it. However, excessive thirst and a lack of smoothness aside, the V40 proved a worthy holiday companion. Best keep it quiet from the team, though; I’ll never see it again!

Daljinder Nagra (@DJonmotors)

First the bad news. The ASX 4 had come to the end of its stay with us and Mitsubishi – not unreasonably – wanted it back. The good news, however, was that our friends up in Cirencester were very happy to give us another one in return.

Yes, very good news indeed, because up until I knew it was going to ‘regenerate’ into a 64-plate (I was secretly dreading a comeback by the L200), the crossover had won me over to such an extent while I was enjoying the elevated view behind its wheel that I really wasn’t looking forward to saying goodbye to it. So, in the end, parting did indeed become sweet sorrow, for the ASX is such stuff as dreams are made on.

But enough of the muddled Shakespearean reveries! Both sassy and stylish, this no-nonsense, well-equipped vehicle really does seem to have it all for those seeking the perfect vehicle in this growing segment. Handling and manoeuvrability have consistently proved to be superlative, while the car’s five-star Euro-NCAP safety rating guarantees peace of mind.

Meanwhile, as the milometer swept past the 7,000 mark, I was in for another treat. Glancing down at the fuel consumption indicator while driving around town, I was more than pleasantly surprised to see it gradually creep up and up until it reached an eye-popping, wallet-friendly reading of 57.4mpg. ‘Out with the old ASX, in with the new ASX’ – how appropriate for this time of year!

John Bowman (john@blackballmedia.co.uk)

the knowledge Model: Mazda 6 2.2D 175s Sport Nav Tourer Price: £27,955 (as tested) Engine: 2.2-litre diesel Power: 173bhp, 420Nm Max speed: 137mph 0-60mph: 7.8s Emissions: 121g/km Mileage this month: 1,055 This month’s highlight Realising our brilliant readers will come to the rescue ���| CarDealerMag.co.uk

the knowledge Model: Volvo V40 Cross Country D4 Price: £36,045 (as tested) Engine: 1969cc, 4 cylinder, turbo-charged Power: 190bhp, 400Nm Max speed: 130mph 0-60mph: 7.1s Emissions: 104g/km Mileage this month: 945 This month’s highlight Heated screen and warm seats – winter can now throw all it wants at me!

the knowledge Model: Mitsubishi ASX 4 Manual Price: £23,249 (as tested) Engine: 1.8-litre diesel Power: 114bhp, 300Nm Max speed: 115mph 0-60mph: 10.6s Emissions: 136g/km Mileage this month: 1643 This month’s highlight Fuel economy reading that were par excellence

longtermers

Fifth report:

Fifth report:

Sixth report:

DaciaDuster

NissanQashqai

AudiA3

The figures don’t lie... Dacia goes from strength to strength

Can it really be a year since that Car of the Year award?

Please don’t forget about us oldies who still like using CDs

OUR Dacia Duster has been pressed into duty as a bit of a load lugger this month. Nothing too strenuous, I hasten to add, but with the return of Sophie Williamson-Stothert to Blackball Media, the car was called upon to transport some freshlybought flatpack furniture to her new abode in sunny south Hampshire.

Of course, NJ14 PFD was more than up to the job – it was only a set of pine bookshelves, after all – but the little errand demonstrated yet again why the car has become a popular member of the fleet at Car Dealer Towers, if not the most exciting or refined drive we have at our disposal.

As I write this, the SMMT figures for the whole of 2014 have just been published (see pages 116 and 117 for full details) and they reveal that in just the second year after being launched on our shores, Dacia’s rise in the UK showed no signs of slowing. The no-nonsense car brand posted record sales of 23,862 vehicles in 2014 – up 39.2 per cent on the previous year.

In December alone,1,503 Dacias found new homes in the UK, giving the brand a market share for the month of 0.9 per cent. Impressive stuff for such a new kid on the block!

Ken Ramirez, Renault Group UK managing director, was unsurprisingly delighted at the progress the brand made during 2014. And with cars such as the robust and reliable Duster part of the line-up, the future looks just as bright.

Dave Brown (@CarDealerDave)

THOSE who know me well might be surprised to hear that I’m not the greatest fan of the festive season. So when I was invited to a seasonal celebration in the first week of January, I knew I’d have to cheer up a bit.

After all there’s so much build-up in the months before Christmas these days, you can hardly blame me for hoping it will all end fairly promptly once the big day has passed!

As I piloted our long-term Nissan Qashqai to the hotel chosen for the celebration, my thoughts turned to the first week of January last year, and 2014’s What Car? Awards.

Can it really be 12 months since the all-new Qashqai conquered all before it to be named Car of the Year? It seems a lot longer. And I say that purely as a tribute to the car. There are so many of them on the roads, it seems as though it has been on sale for years, not a matter of months.

As colleagues of mine have mentioned in these reports before, our Tekna-trim example is chockfull of gadgets and gizmos that make driving it an absolute pleasure. And I must disagree with my colleague Ben (see issue 82) – the heated seats are spot-on. As I pulled into the hotel car park for my Christmas get-together, I donned my paper hat, left the comfort of the cabin and headed in for the festive fun.

Despite my misgivings I had a wonderful time.

And I arrived in a car that’s a real cracker.

Dave Brown (@CarDealerDave)

There’s so much to admire about the A3. Okay, I know I’ve gone on about the sat-nav (and on, and on, and on...) but it’s because the rest of the car is so blooming nice.

It’s a real delight to drive. It has swift, smooth acceleration and just eats up the miles on the motorway. There’s space galore for the family, and plenty of room in the boot for the week’s shopping.

What’s not to like?

Well, now you’re asking... what the heck have they done with the CD player? Tucked it away in the glove box, that’s what. No doubt someone in a white coat in a laboratory thought that was a splendid idea. Plonk it away out of sight, because no-one uses CDs any more. It’s all iPads and iPods and hi-tech stuff.

Wrong. Wrong. Wrong. Okay, I like my iPod. But I also like CDs. And the car offers a little peace and quiet away from the kids where I can listen to the Carpenters, Rumer and Tammy Wynette without getting pelted with abuse about my choice of music.

And I want to be able to change discs without stretching across the car’s cabin and fiddling and fumbling with buttons I can’t see, putting myself in danger of swerving across the motorway and wiping out loads of drivers...

Makes the sat-nav hassles pretty insignificant, really.

Colin Channon (@colinchannon)

the knowledge Model: Dacia Duster Laureate dCi 110 4x4 Price: £16,380 (as tested) Engine: 1.5-litre, turbocharged diesel Power: 109bhp, 240Nm Max speed: 104mph 0-60mph: 12.3s Emissions: 137g/km Mileage this month: 1031 This month’s highlighTS Not actually being asked to help assemble Car Dealer Sophie’s new flatpack furniture...

the knowledge Model: Nissan Qashqai Tekna Price: £23,670 (as tested) Engine: 1.2-litre turbocharged petrol Power: 115bhp, 190Nm Max speed: 115mph 0-60mph: 10.9s Emissions: 129g/km Mileage this month: 2,611 This month’s highlight Using the Qashqai to help keep the Christmas spirit going well into January.

the knowledge Model: Audi A3 Sportback S line 2.0 TDI 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: 837 This month’s highlight Cruising effortlessly along the M4 (I’d put in the CD before setting off...)

CarDealerMag.co.uk | 129

data fiLe.

Promise yourself: Take action NOW before it’s just too late...

I

f you cast your mind back 12 months, I wonder how easy it would have been for you to predict the events which proceeded to take place during 2014? From my own perspective, there have been many events which have taken place that were predictable and no real surprise – but others that were so unpredictable they left me with my jaw hanging open in shock.

Sometimes it’s easy to predict some things in life, to the extent you choose to take some early precautionary measures, just in case...

On the other hand, there are some things you reckon will come true, but for whatever reason you decide to do nothing about ... and when they do happen, you are left kicking yourself. How many time have we asked ourselves: ‘Why didn’t I do something when I had the chance...?’

I think it is worth pointing out nobody in this world is perfect, and we will not get everything completely right all the time. Rest assured, most of us will learn how to improve as our journey continues (and that is okay!).

So as another year begins to gather pace and the weeks pass us by, now may be the perfect opportunity to take some time out and assess where you are going as an individual, team or business, so you can highlight any action which needs taking to improve performance.

That should at least help ensure you are not once again left asking that question: ‘Why didn’t I do something...?’

This might sound quite a simple task, but you would be amazed how many people continue to press on without investing sufficient time in taking a step back from the day-to-day running of their business to carefully plan what

Jonathan

Such TIME IS MONEY

action should be taken next. Look, as an example, at one of the UK’s multi-million-pound supermarkets, who from the mid-1990s to the mid-2000s were seen by many as ruling supreme because of their ability to sell customers anything from a loaf of bread to a widescreen television.

They have proved to us all how, over a period of time and without the correct focus and awareness, things can start to change for the worse.

Taking your eye off what your competitors are doing, or relying on an improved economy to stimulate your growth, failing to keep on driving improvements into the environment within which your customers make their

‘Without focus and awareness, things can change for the worse’ purchases, and taking your eye off how well your customer service stacks up, are all examples of situations which you can take into your own hands.

Just take a tip from me and don’t leave things unattended going into the next 12 months.

Staying ahead of the curve can be quite difficult – although, believe me, if you make it a priority, it is still very achievable.

Keeping ahead of the curve is much easier when you accept you have to take matters into your own hands and leave nothing to chance – and make a promise to yourself to do something about it.

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

DRIVEN

The new Porsche Cayenne

+++ PLUS +++ SUZUKI CELERIO + KIA SORENTO + MAZDA2 + FACELIFTED FORD FOCUS ST ���| CarDealerMag.co.uk

CarDealerMag.co.uk | 131

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