INSIDE: the show-stopping ford that’s a match for ferrari
Business Publication of the Year
Issue 84 | March 2015 | CarDealerMag.co.uk | £3.50
super cars v USED CARS
A DEALER WITH VEHICLES WORTH MILLIONS AND A PILE-’EM-HIGH CAR-LOT BOSS TALK OF THEIR TV EXPERIENCE
PLUS: HOW LOOKERS MAKE SUCH HUGE PROFITS...
e c n e r e f n o c r e l a e d ’RE READY WE Car NOW TO NADA AND S INSIDE WE’VE BEEN R EVENT – FULL DETAIL U TO LAUNCH O
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SUITS MANAGING DIRECTOR James Baggott
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OPERATIONS DIRECTOR Andy Entwistle
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Contributors Tim Naylor, Nick King, Mike Jones, Jonathan Such, Daljinder Nagra, Chris Lloyd, Nigel Swan, Stephen Hall, Sophie Williamson-Stothert, Jonathan Fleetwood
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number of people you Welcome. The get to talk to – and their
different backgrounds – in this job is quite something. One day I’m chatting on the phone to Joe Macari, the man who has that amazing showroom that was on the BBC programme Used Cars v Super Cars (a kind of Trading Places idea that worked really well); the next I was talking to Dave Clancy, the owner of the car lot in Bridgend. Then I was off to Lisbon to drive the new Peugeot 308 GT (that’s me, driving the car above) and talking to their top execs, then I was chatting to one of the top men at Lookers, the business which expects to make £90m profit this year. Yes, £90m, you read that right... And to answer the questions you’re dying to ask: yes, Joe was a nice chap; no, Dave isn’t as grumpy as the TV would have you believe; the Peugeot was really nice to drive, even in the Portuguese rain (please don’t feel too sorry for me about the weather – the food they put on was fantastic) and no, there’s no whopping big secret behind Lookers’ success, just sound business acumen. You can read the fruits of my labours in the pages that follow. I’m beginning to think my family are sorry I’ve started work at Car Dealer, and that I’m taking too much work home with me. I popped to London the other day for a briefing by Hyundai. It was held in the grand Tate Modern, in a room with fantastic views over the Thames and St Paul’s. Afterwards, we were given a whistle-stop tour of the delights of the Tate. Some of it isn’t to my more traditional tastes, but there was something special about seeing original work by some of the world’s best-ever artists. I was still buzzing when I got home that night, and told the family at length about the Picasso I had seen, and how stunning it was. I couldn’t understand why they didn’t share my enthusiasm. I twigged only when my daughter said: ‘Dad, it’s a Citroen – when you’ve seen one car, you’ve seen them all...’ The other people in the office seem to be bagging all the best trips. We’ve had several writers in Barcelona, and
the suits managed to find the time to go to San Francisco to catch the delights of NADA. James Baggott reports at length in this issue, and reveals some plans for our own Conference & Expo. I think we have a hectic – and very enjoyable – few months ahead of us... oooo, an exciting new project... We’ve been busy working at Car Dealer Towers on an exciting new project. All will be revealed when next month’s magazine drops through your dealership letterbox, but you might want to keep the day clear in your diary. There’s going to be lots – and I mean LOTS – to read that day... still time to have your say Thanks to so many of you for participating in the Car Dealer Power Awards. They’re the awards linked to the most comprehensive survey in the motor retail trade. We ask loads of questions about manufacturers and suppliers, and you provide the answers. We’ve had lots of replies already – but there’s still time for you to have your say. See Page 15 for details. DON’T BE SHY – GET IN TOUCH Thanks to those people who have been in touch with me regarding stories they’d like to see in the magazine, and which topics we should cover. We’re on the case with lots of them. We 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
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INSIDE. ISSUE 84 I march 2015
Dashboard Feedback Car Dealer Club
34
Car Dealer Power
Success the American way NADA’s massive – one of the biggest trade shows in the world. James Baggott takes a look at what UK dealers could learn...
Hyundai’s showroom plan Baggott Real Deals
Forecourt 28 30 33
Kia Sorento Peugeot 308GT
54
We discover how Lookers has been so successful
59
The Suzuki Celerio... the worst-timed launch ever?
28
‘‘
Porsche Cayenne We put the new Kia Sorento to the test
Taking in the NADA experience Lookers: the success story
The UK needs an expo as good as NADA’s – and here’s how we’ll do it James Baggott
Features
25
Used Cars v Super Cars Trading Up
Data File The Statistics Taking Stock Buyers’ Guide Auctions Trader Talk Market Insight Suppliers’ Guide with Litton
62
06 10 15 17 25 27
Workshops Long-termers Remember the TV show when a super-car salesman swapped places with a car-lot trader? Colin Channon finds out what REALLY happened...
Time Is Money
34 54 62 69
76 78 79 80 82 83 84 86 87 90
OUR AWARDS... 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 15
The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Check out our coverage of the 2014 awards at bit.ly/UCA2014
This year’s event is going to be bigger and better in every way – and it’s still free for traders and manufacturers to attend. See Page 50 for details CarDealerMag.co.uk | 05
feedback. Send your comments via email to colin@blackballmedia.co.uk
Our website is CarDealerMag.co.uk
In Bottom Gear.. So Top Gear is under way again. What did you think of it? Personally, I wasn’t overly impressed. I didn’t like the Argentina special – and I still believe someone, somewhere should have spotted that number plate before they went overseas and put two and two together... And I didn’t go overboard on programme one of the new series. Revisiting the old Car v Bike v Walking v Water challenge – and using my TV licence money to go somewhere exotic to do it – smacked of running out of ideas. Usually, the first programme of any new series is the showcase – the best ideas all rolled into one hour, to show viewers the standard they can expect in the weeks to come. To me, it didn’t deliver. I’m not alone. CarDealerDunc also wasn’t a fan. He thought it lacked inspiration. CarDealerGraeme thought they were running out of ideas. CarDealerDJ thought it was okay. CarDealerDave didn’t see it as his wife commandeered the remote to watch a catch-up episode of Downton Abbey, but that’s a whole new topic... Usually, I’m a Top Gear fan. Jeremy Clarkson is funny. Richard Hammond is like a little boy in a sweet shop with some of the antics he’s asked to do. And James May reminds me of my old dad... Let’s hope it gets better – especially as there’s talk of the BBC commissioning another three series. Maybe they could actually look at some of the cars that I, and thousands of others, can actually afford, rather than just those I’m never, ever going to drive... Colin Channon (Editor) I agree wholeheartedly. I’ve always talked up Top Gear to anyone who knocked it complaining it was boys’ hour, but the first episode of the new series left me cold. I will tune in on Sunday this week, but if it doesn’t improve, it looks like I, too, will let the
DVLA unease goes on
Why did we get the blame for this? Please read this carefully. I registered a car in my name in November. Log book came December. Car sorned via post. Sorn confirmation came. Sold car to customer in December. New keeper supplement used to tax it. Got a tax refund yesterday. Checked online, car showing as not taxed. Rang DVLA this morning, they say I taxed it at local PO in my name. Not so. Rang customer up to advise him not to use car until sorted. He got a tax refund yesterday, too. He still has new keeper slip correctly filled in and stamped by the PO. He has also received the v5c in his name. DVLA say we made a mistake and customer has to ring them Monday. They wouldn’t even give me an address to complain to. Customer is livid. S&B Problem is when it works, it works beautifully, but when it doesn’t, the results can be catastrophic and extremely difficult to get corrected due to the offices being closed. WheelerDealer1 wife have use of the TV at that time for her Bridesdead rubbish. S&B If you want to know how good Top Gear is then watch an episode of Fifth Gear! WheelerDealer1 Not every episode is going to be gold, and I wasn’t glued to the last episode. I do still enjoy it though! Better than Corrie, anyway. Ken
And who’s expected to clear up all the mess afterwards? Nobody in Swansea is going to take one for the team, are they? GreenGiant This exact same thing happened to me. But the refund went to the previous keeper. Luckily he was honest and told me he had received a refund, which prompted me to investigate and realise the new car on the road had become untaxed, even though I went to the Post Office and taxed it myself. From now on, I give the new keeper the green slip and tell them it is their responsibility to ensure the car is taxed and let them know this can be done online at home or at a post office. They always seem happy enough and it is a good way of keeping me in the clear if there are any repercussions like this in the future. Jamslug Seems like yet another flaw in the system. WheelerDealer1 Just caught up with it. Not that bad. But the Ed Sheeran bit was all worlds of awkward. James Baggott (@CarDealerEd) I quite liked that bit, James. He seems like a very nice guy, giving cars away, etc. But like I said, they cannot all be TV gold. Ken Never watch it. Might have seen the very, very odd episode, but Top Gear does nothing for me! Umesh
Pictures of the month Our esteemed boss goes all the way to San Francisco for ... errr... work purposes. He wanted to see what he can learn from the American way of doing things, he said. Lots on his agenda, we’re sure – not least, a bigger and better Conference & Expo. But what was his top priority when he got home? Obvious, really... straight to the office pool table, right (which hardly got used when he was away – honest...) to do this to it. He wants it to look like the one in the SanFran bar he saw, he said....
Join the debate – it’s easy. Sign up to our forum at CarDealerMagazine.co.uk/forum 06 | CarDealerMag.co.uk
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DASHBOARD.
More ‘stealthy’ speed cameras go live on the M25 bit.ly/speedycams
Permanent Infiniti WMS Group showrooms planned Ridiculous! Some parts for Westfield centres are costing far too much BY JOHN COLINSWOOD
I
‘Boutique’ stores will be open for business in London from April
I
nfiniti has announced it will open permanent two-car showrooms at both Westfield London centres this spring. The aim is to spread brand awareness further and expand its cut of the premium car market. The Japanese carmaker has already set up pop-up showrooms in Westfield Shepherds Bush and Stratford City, which will remain for the foreseeable future. However, the brand has announced that permanent boutique stores are currently being fitted out and are expected to open in April. Infiniti UK’s Carl Bayliss said: ‘Westfield has 70m visitors per year across the two centres. In terms of footfall and brand awareness this is ideal. ‘We’ve already started taking orders from these pop-ups and one of the customers had not known of Infiniti prior to seeing it at Westfield. That word of mouth and traction will certainly help us in terms of what we’re trying to achieve.’ Across the industry we’ve seen
manufacturers attempting new innovative ways of engaging with customers, who might have previously been put off by the traditional dealership experience. Two examples we have covered in Car Dealer recently have been Hyundai’s Rockar venture, launched last year, and Renault’s new dealership plans. Bayliss revealed that Infiniti is also developing new strategies both online and in dealerships to improve the customer’s experience. Already under way is the new online ‘path-to-purchase’, which will be rolled out across the RenaultNissan alliance and will go live for Infiniti UK at the end of Q1. Infiniti are now investigating new ways to ensure the customer receives the best experience from start to finish and currently under development is the ‘Infiniti Guide’. ‘Our total ownership experience is something we’re looking to elevate here with Infiniti Guides, which will represent a jockey service,’ explained Bayliss. ‘As we expand our sales and aftersales points, these Guides will be your point of contact for your ownership experience. When you’re ready for your car to be serviced, we can send the guys out and they’ll collect and deliver it back to you.’
Cardiff dealership’s backing for rugby club AN AWARD-WINNING car dealership in Cardiff has announced a new three-year sponsorship deal with the professional rugby union team in the city. Wessex Garages on Hadfield Road will continue to support the Cardiff Blues as one of the club’s official sponsors during 08 | CarDealerMag.co.uk
the next three seasons. Matthew Rees, Cardiff Blues club captain, said: ‘It’s fantastic news that Wessex Garages is going to support the club until the end of the 2017/2018 season. We’d like to say a huge ‘‘thank you’’ to the company. Its continued support is overwhelming.’
t would appear to me the cost of some parts from certain manufacturers are not just high but downright ridiculous. I appreciate the new-car trade is competitive and price is an issue, but this needs to be rectified urgently as consumers are being left out of pocket. How is it fair to present a reasonably-priced new vehicle to the purchaser but not point out that if the gearbox fails after three years once the warranty has expired, they need to pay £5,000 just for the part? This type of pricing can actually make a three-yearold car with, say, 20,000 miles on it uneconomical to repair, in other words scrapping becomes an increasingly viable option. These manufacturers are also making a rod for their own backs as they are missing out on that all-important workshop activity and undoubtedly losing customers in the process. It is no wonder that drivers who cannot afford to have their vehicle scrapped are turning to cheaper aftermarket components and independent repairers. The point I am making is that manufacturers are making these mark-ups where they think they can, but the parts are not being sold because drivers cannot afford them, and this just damages the brand. Parts should be priced to reflect those being purchased, and not by these mark-ups that no-one pays anyway. I am sure the supporting dealers of these manufacturers would be in agreement as they are trying to compete against independents, and of course price is in general terms the driving force (no pun intended). I would reiterate that this only applies to certain manufacturers and is not a generalisation. We would be interested to hear what you think about this issue. Share your views with us on Twitter (@TheWMSGroup) or join our LinkedIn group.
‘Parts should be priced to reflect those being purchased, and not by these mark-ups that no-one pays anyway.’
Who is John Colinswood?
He is MD of WMS Group, the extended vehicle warranty company supplying motoring products to over 3,500 dealerships nationwide.
Make sure your business heads in the right direction with Car Care Plan. As the UK’s no 1 warranty provider, we spend almost £60 million on parts and labour every year. That’s income that could be raising your revenue. Find out how easy it is to switch to us. Call 0844 573 7591 or visit carcareplan.co.uk Car Care Plan Limited is authorised and regulated by the Financial Conduct Authority.
CarDealerMag.co.uk | 09
DASHBOARD. FEATURE.
Ask Lawgistics
Should I give birthday boy a pay rise?
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
I am having a huge battle with a customer over a simple issue that has arisen on his car. He was abusive from the start, making demands as to what he wanted and giving ridiculous timetables to respond. The whole thing has now got to the point where he is threatening to post various material on Facebook and Twitter and has sent me details of the directors’ home addresses to begin his hate campaign against them. I am not sure what to do. This type of bombardment is becoming increasingly common and social media allows totally unedited, unverified comment to appear whenever ‘Mr Angry’ can’t get his own way. Unfortunately such provocation can bring out the worst in us and the dividing line between personal comment and business protocol can get blurred. We are only human, after all. The prudent approach is to... n Recognise when a ‘battle’ is looming. n Acknowledge the complaint from the customer. n Understand the complaint – are you liable? If so, get on and deal with it as soon as possible, keeping the customer informed. Your offer only needs to be reasonable, you don’t have to buy them two weeks in Barbados on top. If not, politely explain why and encourage them to
A
Q
discuss it with the Citizens’ Advice Bureau or Trading Standards. Having done so, invite them to get back to you and assure them you will reconsider. At that time it is good to approach advisers such as Lawgistics to have a look at it with fresh eyes. If you are a member, we can respond on your behalf and put the legal position to them. The important thing is to not let it get protracted, if at all possible. We see some cases where there has been an exchange of emails over many months, each one getting ‘hotter’ than the last. If you have presented a reasonable response – whether it be an offer to resolve the problem or whether it be a reasoned argument as to why you’ve declined the claim – don’t move on from that point until it is acknowledged. In addition, we would advise you not to get drawn into side issues which are irrelevant. (For example, it took you a whole hour to reply; or the parts weren’t supplied for three days; or he looked at me in a funny/ threatening way etc.) If you get postings on social media then be prepared to play them at their own game and put your reply on whatever site they’re using. If it is defamatory then action can be taken, but remember it is not defamatory if it is the truth.
.com
Do I need to gear myself up for a hefty bill?
Q
I sold a car to a customer ten months ago and they have just come back to me to say they have a gearbox problem and that they want me to pay for its repair because the car is not ‘fit for purpose’. I sold the car for £6,995 and the main dealer contacted by the customer has quoted more than £4,000 to put in a new gearbox. Do I have any liability? This question raises a number of issues but the short answer is almost certainly not. First off, the
customer would not be entitled to a brand-new gearbox as this would be considered betterment. If the car was eight years old when it was sold, at best, the customer would be entitled to a like-for-like replacement gearbox of similar age. Second, it will be difficult for the customer to argue that the car was not fit for purpose as they have clearly enjoyed nearly a year of trouble-free motoring. For that argument to work, the
ADVICE
A
customer would need to prove that the gearbox issue was present at the point of sale. Further, gearbox issues are more than likely to be attributed to wear and tear and so are unlikely to be the responsibility of the dealer unless, potentially, the failure occurred in the first few weeks of ownership. And finally, a £4,000+ repair on a car bought for the sum of £6,995 is, in any case, disproportionate. As such, on these facts, we would strongly argue that you have no liability in this case.
I have an apprentice mechanic working for me, who is 18 years of age. He turns 19 next month and has said to me that he will be expecting a pay rise on his birthday. Surely because he is an apprentice his pay doesn’t change until he qualifies? Please can you clarify the law here? This is a common area of confusion, which we are asked about on a daily basis. If an apprentice is employed with you under an apprentice agreement (with supervision/tuition from a college or training provider), then from the ages of 16 to 18 years, they will only be entitled to at least the minimum wage for apprentices, currently set at £2.73 per hour. This rate also applies to any apprentice over the age of 19, but ONLY for their first year of training. Once an apprentice turns 19 (or is over 19 and begins the second year of their training) they MUST be paid at least the minimum wage for their age bracket. The pay rates are as follows: n 18-20: £5.13 per hour. n 21+: £6.50 per hour. This pay increase must begin either from their birthday, or from the commencement of the second year of their training, otherwise you may fall foul of the Low Pay Commission (HMRC) who can prosecute employers for underpaying employees. Remember that apprentice wages cover the time spent training (ie, at college) and the time spent working for you on site.
A
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‘As a growing dealership, the advice we received on consumer and employment matters was first class’
You may recognise our Car Dealer Club member of the month from the last issue of the magazine as one of our Subaru specialists. Cheshire Performance, as the company name suggests, are based in Dukinfield in Cheshire and specialise in performance cars. Although Subarus are a large part of their business, they sell a range of performance cars and, as the business has been growing considerably to meet demand for their services, the team has been able to take advantage of their membership and use the Lawgistics free legal advice service when necessary. Adam Ali, from Cheshire Performance, explained: ‘We decided to join Car Dealer Club initially because, as a growing business, we feel being a member is a great way of keeping in the loop with new services, products and innovations within the motor trade.’ Lawgistics have been able to assist with the smooth running of the dealership as the team grew considerably, she explained. ‘In our first year of trading we have seen a rapid growth in business over a short period of time,’ Ali said. ‘With this growth we have found the need to seek expert advice on some consumer and employment matters, and their support here was extremely helpful.’ As Lawgistics are only a phone call away, Cheshire Performance, like all our Car
Dealer Club members, can get answers fast. ‘We also recognise the importance of keeping up to date with changes in legislation in the motor trade and Lawgistics provide us with regular updates in this area,’ he said. When it comes to consumer-related issues, Ali stressed the value of having a team who specialise in the motor trade to hand. He continued: ‘We always hear about consumer rights and protection so it’s great to have a firm like Lawgistics who look out for us as a business.’ So would Cheshire Performance recommend this service to other businesses in the motor trade? ‘For a small business – or even a large dealership – the advice they provide can be invaluable,’ Ali said, ‘and it takes only one phone call to receive legal advice when you need it. ‘We are soon opening our second branch in Romiley, Cheshire where we will be stocking a further range of sports and performance cars, and with this expansion there will be even more need to have on board a service like Lawgistics.’ To become a member of Car Dealer Club costs just £39.99 and members can take advantage of free legal assistance worth £195. The membership also includes a host of other benefits listed on the bottom of this page. Just head to cardealerclub.com to subscribe.
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LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that Club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £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.
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DASHBOARD.
New state-of-the-art showrooms open Groups keen to invest in bright, modern facilities
G
lyn Hopkin, the UK’s largest volume Nissan dealer group, has officially opened a brand-new, purpose-built dealership in east London. The new showroom replaces the group’s existing Nissan Leyton dealership with a brand-new dualpurpose Nissan and Fiat outlet. The new Nissan East London dealership boasts state-of-the-art facilities, including a 15-vehicle showroom capable of showcasing the entire Nissan range. The facility also incorporates a 20-bay workshop – the largest aftersales department in the Glyn Hopkin group – as well as on-site customer parking and an extensive choice of Nissan-approved used vehicles. Nissan East London is also one
by dave brown @CarDealerDave of the first dealerships in the UK to feature Nissan’s ‘New Retail Concept’, which features a fresh new visual identity for the interior and exterior of the dealership and incorporates interactive elements to offer customers a premium showroom experience. Fraser Cohen, managing director at Glyn Hopkin, said: ‘The relocation of our Nissan Leyton operation is a major investment for Glyn Hopkin and represents our commitment to provide our customers with first-rate sales and aftersales services.’ n Ridgeway Maserati has opened a new showroom in Oxford. The award-winning dealer group is
the latest company to open a Maserati dealership in the UK. The luxury Italian marque now has an emerging network of 18 showrooms across the country. The Ridgeway showroom will showcase the entire Maserati road car collection and offers a full aftersales service. n A multi-million pound new Toyota dealership has opened in Chelmsford. Jardine Motors Group’s new 15,000 sq ft dealership incorporates a number of energy-saving technologies. Efficient insulation, lighting and ventilation solutions have all been integrated, helping to
reduce the overall carbon footprint of the business and yielding a BREEAM rating of ‘very good’. It also features a double-height showroom and a workshop with eight state-of-the-art service bays and an MoT bay for vehicles up to seven tonnes. Colin Chambers, director of Grangewood Brentwood, said: ‘The construction programme was particularly challenging with dates that could absolutely not be missed. A vital aspect of the project was coordinating and integrating fit-out works within the main contract period without causing delay. This was successfully achieved.’
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survey.
Have your say about all the people you deal with We need your help to discover those manufacturers and suppliers who do their best for you, says Colin Channon
W
ow, you’ve been busy. And a million, million thanks-yous…. We launched the Car Dealer Power awards in the last edition of the magazine, and we have been bowled over by the number of replies we have already received. The awards aim to discover – and reward – the best manufacturers and suppliers, and we have already received an inboxful (is that a word??) of responses. And lots of them have comments from dealers about their choices, which is what we love. In the magazine, I pleaded and begged with you all to email the form, and not send it by post. Why? Because some poor bugger would have to sit down and input all that info into the all-powerful Car Dealer Awards Computer – and yes, that poor bugger would be me. So far, we have received just one that way (and because it’s completely anonymous, I can’t even name and shame you in public, and harangue you in private...) So please log on to CarDealerPower.com and complete the form. It’s a case of the more the merrier. The more entries we receive, the more confident we will be of making sure the winners really deserve their prizes. There’s a posh dinner and awards ceremony at the Spinnaker Tower in Portsmouth
on Thursday, April 23 where the winners will be revealed. If you haven’t been to the Spinnaker, it looks a lot like the one in Dubai, only instead of being home to the world’s most lavish hotel, with butlers, chauffeur-driven Rollers for guests, and surrounded by exclusive shops, it looks out over Gosport and Portsmouth Dockyard. Not that the Dockyard isn’t interesting – there’s HMS Victory, made famous by Nelson, and the world’s first ironhulled, armoured warship, HMS Warrior, and EVERYTHING…. So, to answer some of the questions you haven’t asked yet…
Can I say what I really think? Yes! The beauty of all 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.
Err… what I REALLY think? Yes! If you want to praise a supplier but don’t want them to think you’re just brown-nosing, don’t worry. We want your honestly-held thoughts, not your name. And if someone has upset you and you really want to get it off your chest, fire away!
So how do I let you know my views? Simples, as silly-looking meerkats would say. You can get a form in Issue 83 of Car Dealer magazine. But why would you want to tear out pages and wreck your copy of our award-winning magazine? So go online, where it’s quicker, easier, more eco-friendly and, more importantly (yes, more important than saving the planet) means I don’t have the mind-numbing task of copying and pasting and inputting all that info into our computer. Simply log on to CarDealerPower.com to find the form.
What happens then? Once we have all the answers – the closing date is March 31, and have we mentioned it’s best to enter via CarDealerPower.com?) – our supercomputer will digest them all and spit out the winners and the losers. We’ll then invite lots of people to a slap-up meal at the top of the Spinnaker Tower and reveal the winners, and hand over some rather nice shiny trophies.
Tell me again how I can enter? Come on, pay attention – how many times do I have to tell you that you can find the form at CarDealerPower.com…
HOPE YOU DIDN’T MISS THE SUBTLE NUDGE – ENTERING ONLINE AT
CARDEALERPOWER.COM
WOULD MAKE LIFE EASIER FOR US... CarDealerMag.co.uk | 15
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DASHBOARD.
Smaller Hyundai dealerships are making way for megastores with plenty of space Showrooms need to be able to show off the ever-expanding range
T
he traditional Hyundai dealership, tucked among houses or in a bustling shopping centre, is on the way out. Instead, the manufacturer is concentrating on larger showrooms which will best show off the expanding range of models. The change was explained by Tony Whitehorn, the president and CEO of Hyundai Motor UK, at a briefing at the Tate Modern in London. He stressed the change has not resulted in a falling out with current dealers operating in confined premises. He told Car Dealer: ‘We have been through a planning model with everybody. We have told them where we are going – we’re the fastestgrowing brand in the UK over the past five years. ‘A number of dealers have said they will stay in their current facility until a certain time, and then will be moving out to larger premises. ‘Some have said they don’t want that investment, they want to stay where they are. That’s okay. ‘Most have said yes, they want to invest, and that this is a brand that is
a small showroom may mean being able to show only three cars in it.’ Dealers in cramped premises in the centre of a busy shopping centre who doing things, and that they want to be want to stay with Hyundai could look part of it. This is a partnership.’ at becoming a metro store, such as the In the past three and a half years, Rockar facility at Bluewater. about 60 per cent of Hyundai dealers Whitehorn added: ‘The standard have left the brand, with new ones is quite rigorous – it has to look like being signed up. It has been the Bluewater one, like an done amicably and without Apple store. fuss, says Whitehorn. ‘This isn’t about the ‘It’s all about manufacturer telling the communicating with our dealership what to do. It’s partners. We’ve said to about asking: ‘what does them that we’d love you to the customer want?’ stay, but we need you to do ‘We want our this, this, this and this to dealerships to have about realise the opportunity and Tony Whitethorn 220 sq metres. That’s not a the potential. challenge to most of them, ‘If they say no, they don’t want to as most have it already. do it, we’ve said, fine, no problem, ‘In most of our dealers, the let’s work out how we can exit furniture and equipment is more than together on a mutually-convenient five years old. The new branding will basis. cost about £30,000, but we have some ‘We need to be able to display our financial packages to help dealers cars and to service those vehicles. We with that. Some have decided to go, do need to have open and honest and have been looking at Suzuki and conversations with dealers. We have other manufacturers aiming to sell a broad range, and we need to be able perhaps 20,000 or 30,000 cars a year. to show the customers that. Having But there’s been no falling out.’ by COLIN CHANNON @colinchannon
hyundai facts Global position n Sold more than eight million vehicles last year – a record, giving Hyundai just over ten per cent of market share. n Operating profit fell by 9.2 per cent, although revenue continues to increase. Europe n One per cent growth, just behind the industry average. n Growth driven by i10, i30 and ix35. n Private sales up seven per cent, against an industry average of two per cent. n Fleet sales up 14 per cent, (industry average ten per cent). UK n Record performance – first time any Korean manufacturer exceeded 80,000 vehicles (total of 82,159, a new record). n Average selling price of vehicles has increased 30 per cent since 2010. i10 n Only new model in 2014. n Only Korean car ever to sell more than 25,000 vehicles in a year. n Accounted for about 30 per cent of all Hyundai cars sold in the UK. n Received seven national awards – more than any other Korean car in the UK.
Ambitious manufacturer is planning to break into the UK’s top five HYUNDAI’S plan is to become one of the top five UK manufacturers – a tall order, as they are currently outside the top ten. Tony Whitehorn says: ‘Our short-term ambition is to get to 100,000 units. Our mediumterm ambition is a to get a five per cent market share. Our long-term ambition is to be in the top five UK
manufacturers. Our strategy is 20-2020-20-20. Too many manufacturers rely on one single product. We want 20,000 A-segment cars, 20,000 B-segment cars, 20,000 C-segment cars, 20,000 SUVs, and 20,000 of the rest. If you do that, you’re not reliant on one segment. If one drops off a cliff, which can happen, you can be really stuck.
‘In four, five years, we want to increase our vehicle parc by almost another 50 per cent. That’s a very good story for our dealer network because that gives them solidity. Their after-sales department is a big part of their business in terms of profit. If we can fill their after-sales department with more cars, fantastic.’
i20 n Last year was the final year before a relaunch, yet sold 14,800, more than ever before. Third-biggest seller in the Hyundai range. ix35 n Oldest car in the range. n Segment grew by 19.9 per cent, but 16,900 cars were sold, up 26 per cent. CarDealerMag.co.uk | 17
DASHBOARD.
Dealer feedback is great, says Porsche ‘We are in daily contact with a lot of them’
F
eedback from dealers plays an important part in the development of cars in the Porsche range. And their input helped shape the development of the new Cayenne, the company’s hugely-successful sporty SUV, unveiled to UK journalists last month. Speaking exclusively to Car Dealer, James Eastwood, the company’s manager – product operations, told us: ‘We take any feedback from our dealers very seriously. The great thing is that myself and the product team have a really good relationship with the dealers. We are in daily contact with a lot of them and they obviously give us feedback on what sells, and what customers are asking for. ‘They are at the sharp end so it’s
by dave brown @CarDealerDave great to get their feedback. We will then translate that feedback and give it back to the main factory and our development guys.’ Eastwood was chatting to us at the Porsche Driving Experience, a complex within the grounds of the world-famous Silverstone circuit in Northamptonshire. With a fast track, braking/ acceleration straights and a kickplate designed to demonstrate how cars handle in treacherous conditions, it gives all Porsche customers the chance to really put their new vehicle through its paces, all the while under the watchful eye of the centre’s expert drivers.
Eastwood told us: ‘Recently, all the sales people from the whole of the network, and all of the service teams, came here for a training event. Every new model we produce, we get them all here to drive the car and typically we involve the competition in that. It’s a great opportunity for us to help them understand what makes us a little bit unique in the market place and Cayenne never disappoints. It always surprises and the latest generation has certainly done that. ‘You’ve got all the space of an SUV. It’s comfy, you can put all your luggage in it, but then if you want to push on, the handling, for a big
car, is really phenomenal.’ Cayenne has exceeded all sales expectations since its launch in 2002. More than 276,000 firstgeneration vehicles rolled off the production line, and more than 300,000 examples of the secondgeneration car have been sold. The latest version has been designed to offer increased efficiency, even more precise handling, a sharper design and more standard equipment. Five models are available from the start, including Cayenne Turbo and, as a world premiere, Cayenne S E-Hybrid. n What do we think of the Cayenne? See page 33 for our view.
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dashboard.
Around the world Dealer news from somewhere other than here
spain
Ford has announced the final phase of a €2.3bn investment into the expansion of its operations in Spain – a development set to be the largest investment in the country’s automotive industry. The investment continues the trend of vehicle production moving south across Europe, where wages are considered to be lower.
USA
General Motors is set to begin building the Chevrolet Bolt – its new $30,000 electric car – at an underused smallcar plant north of Detroit in October 2016. According to Reuters, GM’s production target for the Bolt is approximately 25,000 to 30,000 cars per year.
SOUTH Africa
According to the National Association of Automobile Manufacturers of South Africa, sales of new vehicles decreased by 1.2 per cent to 52,306 units in January. The organisation said new car sales started 2015 on a ‘mixed note’ but the future is looking increasingly positive. Export sales of new cars have also started the year on a positive note.
china
japan
Because of port issues in the US, many Japanese car makers are being forced to send car parts to production plants by expensive plane transportation, rather than shipping. Subaru, the fastestgrowing brand in the US, said it has had to inject an extra $60m in costs every month, because it is switching to sending parts by air. Fuji chief financial officer Mitsuru Takahashi said that, without the move to chartered cargo flights, Subaru’s US production would have ground to a halt.
Chinese car buyers aren’t too fond of the smells caused by plastics, glue and leathers in brand-new cars, according to the Lincoln Motor Company. To remove the smell, a worker places a small canister filled with absorbent carbon sheets inside the cabin as the car is prepared for shipping. By the time Lincolns reach the nine dealerships in China, the odour is gone.
CarDealerMag.co.uk | 19
FINANCE. NEW RECRUITS
Max moves over to Moneybarn EXPERIENCED product management professional Max Todd has joined Moneybarn. As part of the management team, he has a remit to further enhance the range of products and propositions and ensure it stays as a leading provider of non-standard consumer motor finance. Todd joins after 22 years at Zurich Insurance, where he was UK head of product and proposition management. Moneybarn’s managing director, Peter Minter, said: ‘I am delighted he is joining us. I can foresee he will add great value to our customers and broker and partner network.’ Todd said: ‘I’m really excited to be joining an expanding business at such an exciting time.’
Jonathan joins iVendi A new appointment has marked the launch of iVendi’s new data analytics department. Jonathan Gough has joined as information analyst and will be responsible for identifying key trends in online motor finance, especially through car portals and dealer websites. iVendi’s key products include online motor finance calculator Quoteware and Car Finance Checker, which lets customers prequalify themselves for a range of finance products.
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Partnership formed to provide networks with funding A MAJOR new partnership will provide wholesale funding across the Peugeot and Citroën dealer networks as well as a range of retail funding options for their customers. PSA Finance UK Ltd has been launched as a 50:50 venture by Banque PSA Finance UK, which is the autofinancing unit of PSA Peugeot Citroën,
and Santander Consumer Finance UK (SCUK). Cruciano Infosino, CEO of the new company, said: ‘Utilising the high levels of expertise across both companies, we will deliver highquality products at competitive prices to our large number of customers. ‘This will enable us to enhance our support to the strategic growth
objectives of Peugeot, Citroën and the DS range in the important UK market.’ SCUK managing director Vik Hill said: ‘We look forward to working closely with Banque PSA Finance in this joint venture.’ Similar arrangements are due to roll out across several European markets before the end of 2016.
New car finance volumes grow to reach record level But FLA chief economist predicts growth will slow down this year
F
igures just released by the Finance & Leasing Association show there was 10 per cent growth in consumer new car-finance volumes in December last year, and 13 per cent in 2014 as a whole, to reach a record annual level of 897,593. The percentage of private new car sales financed through dealerships by FLA members reached a new high of 76.1 per cent in the 12 months to December 2014. The consumer used-car finance market also recorded double-digit growth in December as new business volumes increased by 11 per cent
compared with December 2013. In 2014 as a whole, volumes were up by 14 per cent to reach a new high of 1.05 million. Commenting on the figures, Geraldine Kilkelly, FLA’s head of research and chief economist, said: ‘There has been strong growth in consumer motor finance provided through dealerships by FLA members over the past couple of years. ‘Our most recent industry confidence survey suggests growth is likely to continue in 2015, but at a slower rate than in 2014.’ In 2014, FLA members provided £99.5 billion of new finance to UK businesses, the public sector and
households. A total of £74.1 billion of this was in the form of consumer credit, representing more than a third of all unsecured lending to individuals in the UK, while £32.4 billion of the total supported the purchase of new and used cars by businesses and households, including 76.1 per cent of private new car sales. Looking back to November, FLA figures showed that there was a seven per cent growth in consumer new car finance volumes during the month, compared with the same month the previous year. In the 12 months to November, this market reported growth of 13 per cent.
..in association with
DEALFINDER.
Latest finance deals on FIVE-DOOR HATCHBACKS
Garside
HONDA CIVIC
Focus on your brand
HONDA is celebrating the new year with great deals on its range but they’re only available until March 31. The Civic is having its price chopped, thanks to a £1,500 deposit contribution from Honda. They have a great reputation for long-
term reliability – Car Dealer’s very own proof-reader John Bowman can vouch for that! Payments are just £189 a month, based on a Civic 1.8 SE Plus, over a 36-month contract. This specification of Civic features a touchscreen interface, Bluetooth connectivity, parking sensors, cruise control and electric windows, as well as much more as standard. The customer deposit is £5,448.33, with a final payment of £7,758.49, bringing the total amount payable to £21,520.82. This is based on a representative 4.9 per cent APR and also includes a £10 optional purchase fee.
MINI ONE 5DR THE Mini in any form is the choice for style-conscious drivers, which makes this, unsurprisingly, the most expensive option on this page. But you can still buy a Mini One 5-door hatchback for less than £200 a month. However, the deposit will be slightly more appealing to buyers as, even without a deposit contribution from the manufacturer, it’s just £2,616.11. The plan is also longer, though, as the monthly payments of £199 are spread over four years. This is based on 6.9 per cent APR. Customers choosing to keep the car at the end of the plan will have a £6,550.67 optional final payment to make, as well as
a £1 option-to-purchase fee, bringing the total amount payable to £18,520.78. The Mini One comes as standard with a brake-assist system, navigation, Bluetooth and air conditioning, but there are many more options available.
KIA RIO THE latest incarnation of the Kia Rio is currently available with a low fixed rate of finance at just 2.52 per cent per year. APR is also at a reasonable 4.9 per cent. Kia has even sweetened the deal by
reducing the on-the-road price by £1,000 to £11,445, but with this finance deal the total amount payable is only marginally more at £12,250.22. Customers will have to pay a deposit of £3,765.50 and monthly payments are just £129, over 37 months. This is based on the very attractive Rio SR7, which is Kia’s ‘extra value’ range, just above its entry specification but offering extra goodies at not much more cost. Extras include parking sensors, air conditioning, alloys and a leather multifunction steering wheel plus optional premium black interior.
time is money
H
ow many times have you changed your brand? Over the years I have had a lot of requests to design a new brand; it wasn’t quite what they meant. What they actually wanted was a new logo. Not many realise the difference between the two, but there is a huge difference between a logo and a brand. Over the years I’ve had to tell a lot of colleagues, acquaintances and business partners the great story of Nike’s logo and brand. Nike, one of the world’s biggest brands, is a great company to evaluate. Back in 1971, Carolyn Davidson designed the famous ‘swoosh’ logo at a mere $2 per hour. The project took just 17.5 hours to complete so, all in all, Ms Davidson charged Nike just $35 to produce their famous logo. However, when we compare this to their brand spend, it’s a drop in the ocean. The Nike brand has cost millions to produce and manage, from the introduction of the tag-line ‘Just do it’ in the 80s to the long-standing sponsorship of basketball star Michael Jordan. These are both areas of branding. When working on branding, a company needs all its efforts to be cohesive. Branding is so much more important than your logo. It’s the design of your marketing and promotions, your target market, your employees on the end of the phone and the experience any individual has with your business, whether that be online or offline. So my advice to you is to focus your time and effort on your brand, make sure you’re consistent and that your employees communicate your passion, quality and expertise. This is what matters… the swoosh logo without the branding would have been pointless.
‘Branding is so much more important than your logo.’
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 | 21
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big mike.
All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike
Everything has its place and there’s a place for everything
N
ow, I don’t know how many of you lot are the same, but I’ve had dreadful OCD since way before the term was invented. It dates back to when I did National Service (yes, I’m just about old enough) and was taught the hard way that cleanliness and tidiness were important, and if I didn’t display my cutlery in the right order and correctly fold my underpants and socks in time for the mess officer’s inspection, I’d spend every morning of that week scrubbing the U-bends of the NAAFI toilets. And I’ve lived my life by that rule ever since. Everything has its place, and everything within its place is lined up neatly, and straight. My office is a haven for neat piles of paper (though I confess I haven’t a clue what’s buried within them), my pens are lined up on my desk in length order, and upon my lot you’ll find row after row of cars parked in straight, parallel lines, strategically thought out to offer enough space to walk around them comfortably, and to be perfectly aligned, mirror to mirror, with the vehicle alongside. Of course, some might say this is obsessive. And to a degree, I suppose it is. But on the flip side, I am a firm believer that if something is well presented, somebody else is much more likely to buy it. For example, if you went for a meal in a restaurant and the food was slopping off the side of a chipped plate, you’d be appalled, even if the dish tasted exactly the same as it would distributed neatly on a posh plate and served to your table by an immaculate waiter or waitress with a smile and a curtsey. The product is no different, but the presentation sets a first impression – and that impression, no doubt, determines how much you’re prepared to pay for it. On the flip side, when I buy in stock from auction, or occasionally in a private sale, I deliberately look for the tasty but badly served-up slop with the dishevelled-looking crockery. At auction, for example, I’m often the only bidder on a car that comes through utterly filthy and with a hubcap missing because it looks, well, a bit scratty. The thing is, often, it doesn’t take a huge amount of effort to take something that looks a dog’s dinner and transform it into a stunner. Just ask the wallies who appear on those television makeover shows… When, like me, you have a 17-year-old
Big Mike Our man on the inside spills the beans on the car business...
apprentice who, weirdly, takes great pride and pleasure in wielding a sponge and a can of squirty tyre black, you do even better. And when you have OCD to the extent that you study the original range brochures to ensure you buy the correct set of hubcaps off eBay (who, me?), then suddenly the detail starts to take precedence. All of which is great, but serves to make me raging mad, to the extent of being utterly irrational, when I see a badlypresented car on a dealer’s forecourt. For the amateurs out there, fair enough. The wellmeaning private seller who take pictures of their car on their driveway to put on the online auction, but stupidly captures the three stinky German Shepherds who’ve spent the past seven years living in the boot, or the elderly couple who photograph their underpowered 1.6-litre hatchback in
‘If something is well presented, somebody is more likely to buy it.’ front of the 24-foot caravan they’ve made it tow to Wales four times a year, can kind of be forgiven their naivety. But the professionals? Really? Classics I’ve spotted in the past few weeks include an MG TF photographed with a bottle of instant head gasket potion in the door pocket, a red VW Golf with a bent VW Golf wing and smacked up bumper (in the same shade of red) in the background of the shot, a Hyundai of some description parked directly over an oil-covered patch of sand and a Land Rover Discovery photographed alongside a MIG welding machine that was not only alongside a four-post ramp, but was also still plugged in. Hell, I was almost surprised to find it didn’t still have smoke coming off the tip. Not clever, chaps. Not clever at all, and probably not that great for our reputation as car dealers, truth be told. And there’s me bothering about lining up my door mirrors, and then checking in the brochure that they’re the right type of mirrors for that model year. Anyway, rant over. I’m off to scrub my U-bend.
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 | 23
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bAGGOTT.
Have you got our FREE iPad app? Download it here bit.ly/CDMiPad
The UK needs an expo as good as NADA’s – and here’s how we plan to do it
I
’m pretty sure I know when it hit me. It was roughly on day two after an artery-clogging breakfast of over-easy eggs (they’re runny, if you didn’t know), brown toast, corned beef hash and pancakes (what’s that all about?). No, I’m not talking a stroke – although I’m pretty sure that was about a rasher away – I’m talking about the moment of realisation that the NADA Convention and Expo I’d heard so much about from dealers and manufacturers that have attended over the years was in fact A Kind Of A Big Deal. Operations director Andy and I made the trip to San Francisco in January (much to our wives’ disgust) to visit the huge American dealer showcase with the hope of learning a few tricks for our event in the summer. We knew there was a major gap in the market on this side of the pond for a similar-style conference, but we wanted to see how the best of its type was run. We raised the bar in 2014 with our Car Dealer Conference – in fact, one UK supplier I met while strolling the NADA halls described it as the ‘best event of its type in the UK’ – so we were obviously doing something right. But we wanted to be better. You may remember last year we had speeches from Kia, Google and Microsoft at the Rockingham-based conference and 40 stands for dealers to visit. Some 500 dealers attended and it was a solid base for what was to follow. However, what we learned in the States was how to shape our event to make it work even harder for the attending dealers. Not only does our event have to have a packed expo full of suppliers that dealers can chat to and do business with, but it needs to offer real education to those who have taken time out of their busy days to attend. That’s why – to coin a brilliant phrase from a not-sobrilliant leader – ‘education, education, education’ will be at the absolute core of our event. We know suppliers are there to do business – and Car Dealer’s job is about putting you, our loyal readers, in front of the fantastic suppliers who make it possible for us to publish this serial award-winning magazine every month. However, we also realise no-one likes to be blatantly sold to. That’s why this year’s Car Dealer Conference & Automotive Expo has been designed to offer a huge number of opportunities to learn new things. You’ll buy into their brand if what they say is genuinely useful. Again, inspired by NADA, we have decided to introduce a number of Workshop Sessions at this year’s event. We will put experts from their respective fields in front of you to tell you how to get the best out of your website, your advertising
or your social media plan. These experts will educate you about the latest legal issues, too, and the common scams that are catching out dealers across the country. But that’s not all. We’ve also signed up some inspiring speakers to inform and enthuse you and your team. There’s Ken Ramirez, managing director of Renault Dacia, who will explain how his firm launched the budget brand Dacia in the UK to critical acclaim and he’ll explain what you can learn from it. We’ve also persuaded leading motoring journalist Steve Fowler – editor-in-chief of Auto Express and Car Buyer – to give a keynote speech on what consumers really want from dealers. Every year the best-selling weekly car magazine surveys 30,000 car buyers, so if anyone knows what your punters want, it’s this man. I’m also delighted to announce we’ll have an expert from Twitter with us, too. She will be taking part in an exclusive
James ‘...What’s inspiring is Baggott the goodwill we’ve EDITOR’S NOTE: boy, this event is going to be good!
n Full details about the event can be found from page 50. And if you want to lend your support, email me james@ blackballmedia.co.uk or, better still, sign up for a free ticket at bit.ly/CarDealerConf.
had from everyone’
Q&A session with the Top 150 Dealers On Twitter, which we’ll be announcing exclusively at the Conference, and she will host a best-practice Workshop Session too. One part I’m really excited – if a little nervous – about is a unique Q&A panel session that I’ll be hosting. I’ve managed to sign up Ken Savage (Perrys), John Tordoff (JCT600) and John O’Hanlon (Ridgeway) who will be joined by one more dealer boss on a panel where they’ll talk about topics prevalent to the industry. These dealer bosses have decided to bring with them more than 50 of their respective teams to enjoy the day – and their support for this event is truly appreciated. We’ll be holding a similar panel with manufacturer bosses too, but I’m still working on those. What is really inspiring is the support and goodwill we’ve had from everyone. We’re extremely enthusiastic about putting on an event that works for dealers, works for suppliers and that the UK automotive industry can be truly proud of. And it appears everyone supports that. We can’t do that without your support, though. We want as many people to attend as possible. We want as many suppliers showcasing their wares as we can find. And we want to make this THE destination for UK car dealers to learn something new for years to come. It’s completely free to attend, it’s at Silverstone on June 9 and I do hope you can support Car Dealer and me in making this event the success the motor trade in the UK truly deserves.
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 | 25
The search is on. But make the moment count.
You only have a matter of minutes to convince her to buy*. That’s how long seven in ten buyers** spend researching your website, searching for their next car. So showcase testimonials and make sure your contact details and information about your business are at her fingertips. Let her see the friendly side of your business and embrace social media. To give her confidence that the car she’s been dreaming of is for sale with a dealer she trusts. For buying, selling, marketing and managing. We help you stay one step ahead. trade.autotrader.co.uk/marketing *Auto Trader data, January 2015. **GFK Dealership Sourcing Studies, July 2014
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What drives us is you
REAL DEALS.
Save the Panda – a rare beast that has been so lovingly cared for ANDY ENTWISTLE casts envious eyes at a 21-year-old Fiat that looks as if it’s just come out of the showroom
A
s endangered species go, the Panda is right up there. Cute and loveable once upon a time, they were commonplace. These days, however, they are a rare species to spot. However, if you travel to Ashford in Middlesex you might be lucky enough to see one. Launched in 1980, Fiat sold more than 4.5 million of the original Panda and although these are becoming increasingly rare on the UK roads, they are still incredibly common in Italy, where the warmer climate, sheer volume originally sold and Italians’ love for them means they are still used throughout the country. Many people don’t realise the Panda was a Giorgetto Giugiaro design – and he said it was one of his favourites. It’s not hard to see why. The Panda took back to basics seriously and the original car was actually launched with a 652cc two-cylinder engine in some markets, while there was also an electric version sold in Italy between 1990 and 1998, some time before the current trend for electric cars. Sadly, the Electra lost its rear seats to house the batteries and also put on significant weight. It was a crushing failure. The Fiat was all about basics, but also practicality. It featured a rear seat that could be adjusted into multiple positions to lie flat or even folded into a V and the seat covers were washable and removable. All the glass in the car is flat so it’s easy and cheap to replace. A big success for Fiat was the Panda 4x4. These still have a huge following and if you come across one of these in good condition, snap it up quick. Putting a basic 4WD system into a cheap car was a stroke of genius that had pretty much gone unmatched until the Dacia Sandero. Steyr Puch suppled the drivetrain. You may think these are the guys who make bicycle gears, but they also
produced the drivetrain for Mercedes G Wagen for many years. Sadly, a propensity to rust and the vicious depreciation that unfairly affects Fiats saw the demise of the Panda in the UK and within just a few years of the end of production hardly any are seen on the roads. Unless you are in Middlesex. The car you see here was registered in 1994 to a Mrs Joyce Titler and has stayed in her ownership ever since, until now finding its way into the hands of Allwoodautos. In its 21-year life it has covered exactly 3,319 miles and been serviced five times. Now we could argue this doesn’t constitute a full service history as that’s only once every five years, but given its annual mileage is fewer than 200 miles, we feel this would just be being a bit picky. We spoke to Alan, who has confirmed the car is absolutely original in every way and ‘drives just as it did the day it left the factory’. Joyce kept all the MOTs to back up the mileage and it seems she wasn’t a bad driver – Alan confirms the car doesn’t appear to have had any paint damage at all and, unlike some cars that have spent their life with one
owner, there are no battle scars on any of the bumpers. Although we can’t confirm, we are pretty sure she’s probably still on her original rubber – and I bet those washable seat covers have never needed to be removed. We think this must surely be the lowest-mileage Panda in the country. But how do you value the car? And who will buy it? It seems a shame this car might just go to someone who needs a small cheap runner. We think a motor museum or indeed Fiat themselves should be looking to buy this car and put it on display. If you are a bit of a wildlife fan and want to save a Panda, give Alan a call on 0992 809058 and see if you can tempt him with some shoots of bamboo!
Just over 3,000 miles since 1994 – it should be in a museum somewhere... CarDealerMag.co.uk | 27
forecourt.
Kia Sorento Car Dealer caught up with Kia’s UK boss, Paul Philpott, who has high hopes for the new version of the firm’s flagship SUV DIMENSIONS
The size of the new model has been altered, with a 95mm increase in overall length and an 80mm longer wheelbase.
Before we discuss the new Sorento, how are things generally? Well, in 2014 we recorded another sales record. We sold just over 77,500 cars and were up seven-anda-half per cent. To put it into context, in 2007, we sold 29,000 cars. We’ve also become a brand that sells a range of cars. Sportage is our top-selling car, selling just over 20,000. Selling between 12,000 and 15,000 a year, we’ve got Picanto, Cee’d and Rio. Having four good volume products protects us but also gives us lots of opportunities.
You’ve managed to rise above some of your competitors... The figures I’ve just mentioned gave us a market share of 3.3 per cent last year. That put us above Skoda, Seat, Fiat, Honda, Renault and others. The past two years – after rapid growth from 2009 to 2012 – were supposed to represent a period of consolidation for us. In 2013 we only had the new Carens to launch and in 2014, we only had the new Soul – both important products but relatively low-volume cars. So our growth last year – of 10
on test
Dave Brown initially thought he was being sent to Sorrento in Italy... but travelled to What is it? In a nutshell, the third generation of the clever and capable SUV that has performed consistently well for Kia since its introduction in 2002. This new car is quite dramatically different, however, with an all-new body shell that improves ride, handling and crash safety, and a step change in interior quality and design. Kia claims the car now has a premium look and feel and although marketing speak should always be taken with a pinch of salt, on this occasion we’d be inclined to agree.
What’s under the bonnet? In the UK, the sole engine option is a 2.2-litre CRDi diesel, generating 197bhp (up from 194bhp ��| CarDealerMag.co.uk
in the outgoing model) and available with six-speed automatic or manual transmissions. Emissions start from 149g of CO2 – a 2.6 per cent improvement despite the weight increase that has resulted from the third-generation Sorento being a larger car. Examples sold in Britain will all have seven seats and four-wheel drive, although Kia is altering this for other markets, with five-seat, petrol and two-wheel-drive versions available elsewhere.
What’s the spec like? We were genuinely impressed with the level of kit on offer. Much of it will be available right across the range, although the Kia boffins are still in the process of working out exactly what the
UK trim levels of KX1, KX2, KX3 and KX4 will include. Among its safety features, the Sorento boasts smart cruise control; a lane departure warning system; blind spot detection and a very clever feature called rear cross traffic alert. (It’ll come into its own when you’re reversing out of a parking space into a line of traffic and someone is heading straight for your rear bumper...) On top of that we had a panoramic sunroof; adaptive front lights; heated seats and an eight-inch sat nav system. Nice.
What’s it like to drive? Although larger than the outgoing model, new Sorento handles exceptionally well and the driving experienced is genuinely enhanced by the
per cent – was pretty impressive given that we didn’t have a huge amount of new product. We’ve got a plan to get to 100,000 units by around the end of the decade which would give us a market share of four per cent. We believe we’re well on track with that. So we imagine 2015 will be pretty important for Kia... Yes. Anyone who has kept an eye on Kia over the past seven or eight years will know that between 2009 and 2012, we changed almost our entire product range. We work on a six-year change
SOUND ABSORPTION
The vehicle body structure has been improved to increase stiffness, thus cutting the level of noise in the cabin.
cycle at Kia, so you can quickly see that the years 2015-2018 are going to be pretty busy in terms of new product. Sorento is the first of the all-new products this year. A busy and exciting year ahead for your dealers then... Yes, we’ve effectively got six new products this year – new Sorento and new Optima – and four facelift programmes. two of which we’ve announced already, two of which are still to come. Venga and Rio have been launched, Picanto is Q2 and then there are some more changes to Cee’d in the second half. In other words, out of 10 products, we’re changing six of them, which makes it quite a big year. We had a big national dealer conference on January 6, shared our plans with them, and they went away extremely excited. We imagine they’re pretty impressed with new Sorento.. They can’t wait to get their demonstrators, which they may see at the end of March or perhaps the beginning of April. What is most exciting about Sorento is that it’s the first of the next generation of new products. You can see the difference – and the difference is that we’ve been absolutely addressing
the feedback from the motoring press. We’ve done a lot of work on ride, handling, suspension, steering and interior quality. Incidentally, because of our warranty and our growth, our warranty parc will fall into fourth place behind Ford, Vauxhall and VW by the end of the year. That represents a huge opportunity for the dealers. And in the past five years, we have gone from a third to two thirds of our dealerships being solus dealerships. How do you see Sorento sales going? In the first full year, April 2014 to March 2015, we reckon we’ll be selling around 3,500 units. That figure will depend a little bit on global demand and global supply. We know that for the first few months, we’ll be fairly supply-constrained. But that’s a good thing. We can build up demand, build up a healthy order bank and keep strong residual values. And of course your dealers are looking nice and consistent now the Kia Space Identity programme is complete... Yes, we had corporate standards to meet but the dealers, in general terms, have put more investment in to expand the capacity and size of their facilities. It’s been a very exciting process.
APPEARANCE
The front has been designed to resemble a ferocious beast – it’s supposed to look like a ‘streetwolf’ if you will.
Barcelona to test the latest version of Kia’s best-selling SUV quality of the cabin. Smooth lines, a horizontal design and displays that are easy on the eye will all help Kia attract new customers and retain existing ones.
WHAT DO THE PRESs THINK OF IT? Auto Express said: ‘What is impressive is the refinement of the new model. From inside the car, the 2.2-litre diesel is barely audible and it was only at higher revs where the engine noise became intrusive at all.’ Autocar said: ‘The engine provides smooth and flexible performance, cruising quietly on tall gearing with its engine noise very well subdued.’
Our verdict We were impressed. The new Sorento really does show how far Kia have come, from being a budget brand just a few years ago to one which is attracting first-time buyers from marques such as Audi and BMW who find themselves being offered high quality vehicles but for far less money. Seven seats, a great interior, a quiet, refined ride... and did we mention we thought visibility was very good? Kia should have another hit here.
the knowledge
Model: Kia Sorento 2.2 CRDi Price: To be confirmed Engine: 2.2-litre, four cylinder, turbodiesel Power: 197bhp / 441Nm Max speed: 126mph 0-62mph: 9.6 seconds MPG (comb’d): 42 (comb’d) Emissions: From 149g/km Residual values: tbc
target buyers: Big families, People with things to tow, Volvo/Audi types looking to save some money
the rivals:
Nissan X-Trail, Hyundai Santa Fe
Key Selling Points: 1. High interior quality. 2. Refined, quiet engine. 3. That famous Kia warranty.
Deal Clincher: The price. We don’t know the exact UK figures yet but expect a sub-£30k starting point. CarDealerMag.co.uk | 29
forecourt.
Peugeot 308GT SW We speak to Vince Clisham, Peugeot’s product manager for the new 308 GT about the new model…
So give us an idiot’s guide to the 308GT. GT and GT Line will top the range for the 308. It has been an evolution for the model. We launched the car at the start of last year, then in mid-year launched the SW version, and have now supplemented that with the GT and GT Line. It doesn’t mean this is the end of the range – we could see derivatives before we have the complete range in place.
A more high-end product is still in the pipeline? High end and low end are possibly coming, yes. We have already introduced Sportium, a limitededition version in the petrol format, and that gives us a good platform to communicate our technology to the dealer network and the public. We have a few things yet to happen on the 308 range.
Front end
There’s a new grille with the Peugeot lion now nestling proudly at the front, with three horizontal blades on either side.
Lights
No fog lights – usually a must on a sporty car – in favour of extra engine-cooling air scoops. The LED lights are great, though.
on test
The 308 is already one of Peugeot’s stars. Now they have made performance models What is it? The 308 has undergone surgery to make it more sexy. The new hatchback and SW body styles come with new engines that make them ecofriendly, while also delivering a fair bit of oomph. And inside they have had a makeover to make them more sporty – and the finished product is something Peugeot fans will like, and it just may attract admirers from aficionados of other brands.
What’s under the bonnet? There are new petrol and diesel engines that provide power and yet are so kind to the environment it’s a wonder they haven’t picked up awards from the World Wildlife Fund. The four-cylinder 1.6-litre THP 205 Stop & Start petrol ��| CarDealerMag.co.uk
engine has a six-speed manual gearbox to cater for the 285Nm of torque which offers 50.4mpg in the hatchback, and races from 0-60mph in 7.5 seconds. The diesel offering is a 2-litre BlueHDi 180 engine with a six-speed automatic gearbox that gives 70.6mpg in the SW, and 0-60mph in a fraction over ten seconds. It’s the diesel engine that Peugeot believes will be the big seller.
What’s the spec like? The GT and GT Line is the new prestige model, replacing the old Feline, and it has plenty of toys to keep the boy racers happy. There’s the small sporty steering wheel, which looks rather racy with red stitching and the GT logo; the Sport button which gives the engine a roar like a lion
on heat (it’s only a sound effect, mind – but a clever one for all of that) which also stiffens the steering, makes the acceleration a touch more responsive, and gives the instrument panel a deep red glow, which complements the red stitching in the cabin. There’s dynamic cruise control, twin exhausts (which are for show, but look nice), collision alert, tinted windows and rather nice alloy wheels, and a 9.7-inch colour touchscreen. And the screen is tilted slightly towards the driver – a nice touch.
Any rivals? Peugeot hope to persuade drivers of the VW Golf and Ford Focus to jump ship and give their new baby a go. Of course, it’s a tough challenge to pick
So what makes the 308GT special? It brings a new image to the range with its sportiness, both internally and externally. Internally there is the smaller sports steering wheel with GT badging, there’s the trim with red stitching which in itself is sporty, and outside there’s a lower ride height, and so on. It gives a better, sportier image for the top of the range.
And GT Line? It has the same styling as the GT but GT Line has the standard range of engines we already have in the 308. The GT Line replaces Feline, which was at the head of our range, so more aggressive sporty styling. You’re very excited about the new engines in the 308. Yes, the 205hp petrol engine and the 180hp diesel with the automatic gearbox. Although they’re seen as quite high-performance engines, we see them more as warm engines, as opposed to hot. It’s remarkable the diesel engine is not only powerful but it has tremendous efficiency, because it’s a Blue HDI engine with the latest Euro 6 technology. The transmissions are very efficient, coming in at 103g of Co2 in the hatchback, with a combined mpg of 70.6, which we think is remarkable.
You expect the diesel version to be the big seller? Certainly with the GT version, yes. If you look at the Golf range, about 25 per cent of their sales are in that segment, and 24 per cent of that is diesel, presumably primarily through fleet sales. We see our GT version being very attractive with fleet customers. It’s being said the automatic gearbox is as close as you can get to a manual in terms
of response. Is that right? I think so, yes. The automatic transmission is very efficient. We used to have a semi-automatic gearbox that we ran for a few years that was brilliant in terms of efficiency, CO2 and mpg, but wasn’t quite as user-friendly as the new gearbox. This is a full automatic, and this is probably the best we have ever had. Who do you see as the ideal 308 customers? We see it as a big fleet car – we think half its sale will be fleet – and will sit alongside the Golf and the Focus. We also think the styling, the driving performance of the car, its handling and equipment levels, and its showroom presence will make it a good choice for retail customers as well. Peugeot has always had a bit of a reputation for the poor quality of its cars. Is that fair? To be honest, we did have one phase of the 307, one particular segment, when changes were made too quickly. In some respects, the car was ahead of its time with some of its wiring, and there were some particular issues, but very quickly corrected. It was over a relatively small period of time and only a small volume of customers, but it hit our reputation for some time. By the end of the 307, Peugeot had put a stake in the ground and there was a clear intention to put quality at the top of the agenda.
the knowledge
Chassis
Lowered by 7mm at the front and 10mm at the rear to make it racy – and weight has been reduced by the equivalent two adults.
that will turn the 308 into the brand’s dynamic flagship model a fight with those two heavyweights, but the new 308 oozes class and quality.
go expecting it to be a hot hatchback – it’s more laid back than that.’
What’s it like to drive?
Our verdict
Surprisingly good. The hatchback is nippy and has plenty of power. It’s fun switching to Sport mode to hear the roar, and to make it a little more responsive. Only downside is the small steering wheel totally obscures the stalk with the cruise control buttons on it. The biggest compliment you can pay the SW is that it didn’t drive like a big car.
Going head to head with the Focus will be tough – but this is a seriously impressive car. Peugeot has issued lots of tools to dealers – videos, words, pictures – to help them with the selling process, because they believe if they can get potential buyers out on a test drive, they’ll be hooked. They could be right.
WHAT DO THE PRESS THINK? The verdict from AutoExpress was: ‘As a stylish, well-made and well-equipped range-topper with a bit of punch, the Peugeot 308 GT scores highly. Just don’t
Model: Peugeot 308GT SW Price: From £17,145 Engine: 2 -litre BlueHDi 180 S&S Power: 180hp 400Nm Max speed: 134mph 0-60mph: 9.8s MPG (comb’d): 68.8 Emissions: 107g/km Residual values (three years): tbc
target buyers: Fleet sales – but boy racers with a family will love ’em
the rivals:
The VW Golf and the Ford Focus
Key Selling Points: 1. It looks good... 2. It handles beautifully... 3. ...and inside the car, that roar is a lot of fun!
Deal Clincher:
The feel of quality inside the cabin. Seriously good... CarDealerMag.co.uk | 31
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forecourt. CLEVER TECHNOLOGY
Extended auto stop/start function shuts down the engine as soon as a slow walking pace is reached while braking.
DESIGN CHANGES
New LED rear lights clearly distinguish new Cayenne from its predecessors.
Porsche Cayenne Diesel
LOOKS
New exterior and interior colours are available for all models. Highlights include the exterior colours carrara white metallic and palladium metallic.
With better looks, more power and higher torque, Porsche have high hopes for new Cayenne. Dave Brown put it to the test What is it?
WHAT’S THE SPEC LIKE?
It’s a beefed-up and beautified sporty SUV from Porsche, with all models having more power and higher torque than their predecessors. The all-wheel-drive car has undergone a thorough exterior design overhaul (the only elements that haven’t changed are the doors and the roof) and the cabin is pretty special too. It’s very comfortable, spacious, you can load it up with the family’s luggage, but if you want to push on or go off-road, it’ll happily oblige.
As you’d expect, comprehensive. The new-generation Cayenne comes with more standard equipment than its predecessor. This includes bi-xenon headlights; an automatic tailgate; a multi-function sports steering wheel with shift paddles; stainless steel door sills; a tyre-pressure monitoring system and an audio system that can easily be connected to external devices. The Porsche Car Connect smartphone app is available as an option for the first time and is a standard feature in the Cayenne S E-Hybrid. It features trick functions such as remote charge monitoring and a car pre-heating function.
WHAT’S UNDER THE BONNET? More power and higher torque is available across the range, with the added benefit of lower fuel consumption. The new Cayenne S E-Hybrid is being hailed by Porsche as a world first and in the new Cayenne S, a 3.6-litre V6 bi-turbo engine replaces the 4.8-litre V8 naturally-aspirated unit of old. The other engines have been tweaked for improved fuel economy and CO2.
WHAT’S IT LIKE TO DRIVE? With apologies to Craig Revel Horwood: fab-u-lous. As you’d expect, the car oozes quality and refinement. All Porsche customers are whisked away to the company’s UK driving experience at Silverstone for half a day, and we were treated to the same
experience to mark the Cayenne’s arrival. With a stunning turn of speed, excellent handling on the track, and braking that almost seemed to defy the laws of physics, we were left in awe of the Cayenne’s capabilities. It wasn’t too shabby on the B-roads of Northamptonshire, either.
WHAT DO THE PRESS THINK? Auto Express said: ‘If you’re looking for the sportiest and best-handling SUV in this class, then the Cayenne is still it.’
WHAT DO WE THINK? There is absolutely no reason why the Cayenne success story won’t continue with this latest iteration of the car. A pioneer when it was launched in 2002, it made the idea of a sports car in the SUV segment a reality, and makes a valuable contribution to profitability at Porsche – hardly surprising! And it continues to lead the field when it comes to putting the fun in functionality.
the knowledge Model: Porsche Cayenne Diesel Price: £49,902 Engine: 3.0-litre V6 turbo-diesel Power: 258bhp Max speed: 137mph 0-62mph: 7.3s MPG (comb’d): 41.5-42.8mpg Emissions: 173-179 g/km Residual values (three years): tbc
target buyers:
Porsche fans who want more practicality than you get with a sports car; Chelsea mothers; company MDs.
the rivals: BMW X5, Mercedes ML, Range Rover.
Key Selling Points:
1. Increased efficiency. 2. Even more precise handling. 3. A longer list of standard equipment.
Deal Clincher:
Commute, go off-road or enjoy a track day – versatility is key. CarDealerMag.co.uk | 33
dashboard. NADA 2015: The Car Dealer Report
How to succeed... We’ve been Stateside so you don’t have to, reporting from the world’s biggest Expo for car dealers. While we’ve picked up some tips for our very own event, James Baggott reports on what you missed.
F
or those who think NADA is simply a jazzy way of saying nothing, here’s a quick rundown. The NADA Convention and Expo is a huge annual get-together of thousands of dealers from across America who gather to learn new things and do business. Held in a different American city every year, the 2015 event was in San Francisio’s Moscone Centre. Over the course of the four-day event, 23,000 dealers and suppliers flowed through the doors taking in a host of workshops, keynote speeches and the chance to visit hundreds of supplier stands. Larger than some global motor shows we’ve visited, the sheer scale of the event is mindblowing. Car Dealer was the only UK motor trade publication to report live on the expo and now we bring you extensive coverage of the speeches we managed to attend. We visited the event to pick up some tips for our very own Car Dealer Conference & Automotive Expo – something we are hoping will grow into a European version of the massive NADA event over the coming years. You can read all about what we’ve got planned for that event – which takes place at Silverstone on June 9 – in the coming pages. To get an idea of just how the NADA event became so huge – and why so many dealers from across the country make the annual pilgrimage to attend – we grabbed an exclusive interview with the outgoing chairman of NADA, Forrest McConnell. He’s a dealer from Montgomery, Alabama, who runs a Honda and Accura family franchise and has been voted by his peers to lead the association.
Coverage inside ��| CarDealerMag.co.uk
Revealed: top tips from Twitter and Facebook social media experts
Smile and make profits: why a happy workforce is a productive workforce
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the American way
Pinterest and Instagram are for teenagers, right? Wrong – very wrong... PAGES 40 & 41
Keep taking the tablets – iPads can revolutionise your business
Are you wasting your ad spend? Marketing audits are a must ºº
PAGES 44 & 45
PAGES 48 & 49 CarDealerMag.co.uk | 35
dashboard. NADA 2015: The Car Dealer Report We’ve been very impressed by this Expo, but how did it get so big? Well, NADA was started in 1917 by a group of dealers who campaigned against a luxury tax in Washington, so we’ve been in business nearly 100 years now. We represent 17,800 franchises in the United States and we have around 325 staff at NADA serving them. They have three goals and those are to lobby the government on dealers’ behalf, talk to manufacturers about dealer issues and to educate. This event is about the latter. The vendors are here and people want to learn. Dealers are true entrepreneurs and they are always looking for the next thing – and they can find it here. So what is the most important thing about this event? This is where dealers come to learn. Dealers in this country who are trying to be cutting edge and want to find out what’s new and available to them come here. They learn from the seminars and they’re a huge draw. But if a dealer is building a new facility, or wants a new software company, then they can come here and look at all the vendors at one time, in one place and do a great comparison. The speakers are important, too. We had Jeb Bush, who is probably going to run for president of the United States. We had Jay Leno, too, who is a celebrity and big car nut. And then there were inspirational speakers, too – these are all key for pulling dealers in. There are a lot of manufacturer meetings here too, aren’t there? There are. And that’s probably one of the biggest reasons for dealers to come, as they can meet each manufacturer they represent and hear what they have to say. If you’re a dealer in a small town you might not necessarily have a lot of contact with the manufacturer, so this gives them a chance to ask the questions they want to ask. That’s a huge plus. What have you learned over the years from this Expo? I’ve been coming to this convention for years – I started as a teenager with my father – and it’s the connections I’ve made by coming here that really stand out. The networks of dealers, like the NADA 20, share some brilliant ideas and I’ve learned a lot from those over the years. The secret to running a successful dealership is learning from good businessmen – find someone who is smarter than you and ask
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Q&A
Exclusive interview with the outgoing chairman of NADA, Forrest McConnell. He’s a dealer from Montgomery, Alabama
them a lot of questions. Get a mentor, that’s my advice. Why do you think dealers in the US are so willing to share their experiences with other dealers? We’re very competitive, don’t get me wrong, but I think the fact the US is so big geographically means you can pick up things from dealers in other states that don’t compete with you. In the UK, you’re pretty much more condensed. There are a lot of Brits over for this event. Is that normal? We have a lot of international visitors, for sure. China has 20 dealers here – and that’s a long trip! The British have always been a big participant. We help arrange those dealers to visit a dealership over here if they want to. It’s all about getting ideas – there are not a lot of new ideas in this world, but there are a lot of good ones and sometimes you just have to go find them. What advice would you give to a first-time Expo visitor? We have an App and, if you’re a dealer, you can plan your whole event with that. Look around and learn from the vendors – there are more than 500 of them here in four halls. You can really see what’s available to you to make you better. And take in the seminars. We ask vendors to apply to hold a seminar and a committee will vote on the ones to hold. The best bit is dealers can rate the seminar afterwards using the App and if it gets a bad score they’re not coming back. People want to go in to learn, so the one rule is you’re there to teach, you’re not there to sell a product. What’s your most important job right now? The average dealer in the US has $11m invested in capital. We build beautiful dealerships to represent the manufacturers and we stock the sites, and we do all that for 2.2 per cent return on sales. That’s a really good deal for manufacturers and a really good deal for customers – it’s our job at NADA to ensure the government knows that. NADA has a huge amount of power in Washington – we are the voice of the dealers there. Dealers don’t have the time to do it themselves, that’s why they joined this association and we have to make sure we come good on that promise.
Socialmedia
Top tips for car dealers from Twitter and Facebook executives Robert Pietsch and Michelle Morris
T
witter and Facebook’s automotive directors have revealed their hints and tricks for car dealers at the NADA Convention and Expo. Robert Pietsch, Twitter’s senior director for auto, and Michelle Morris, group director for Facebook, told a packed conference hall that many dealers in the States are having great success advertising on their respective websites. While we wouldn’t expect them to say anything less, they certainly backed up their claims with some interesting statistics. Pietsch told dealers that some 500m tweets are sent every day and the network has 284m active users, 80 per cent of whom use their mobiles to view tweets. ‘Twitter users are twice as likely to buy a car in the US,’ he revealed. ‘And buyers are 323 per cent more likely to visit a dealer after seeing a tweet sent by them.’ The Twitter executive said clever monitoring of tweets is key for dealers to make the most of the opportunity the network offers. ‘There is a hashtag that is frequently used called #carshopping which is basically active, in-market consumers tweeting about the fact they are out car shopping,’ he said.
‘Dealers should jump on that and engage, whether that is organically by monitoring those hashtags via Tweetdeck, or by targeting them with a message via Twitter Ads. They are expressing an interest in cars at that moment – and it’s up to dealers to engage.’ He advised dealers that three to four tweets per day were the perfect number to engage with around 40 per cent of their organic audience. And he added that dealers should see negative tweets as a marketing opportunity, because their response is public and can be seen by everyone. FACEBOOK Morris told the audience that Facebook offers a bigger audience than the Super Bowl every single day with 1.4bn users now actively using the platform. She said dealers need to work hard to ensure their organic content – that which they don’t pay to promote – is relevant, because of 1,500 posts a user could see every day, only 300 make the cut thanks to Facebook’s algorithm. ‘We ensure the content our users see is highly relevant,’ explained Morris. ‘Users now watch one billion videos every day on their phones on our platform. And dealers can tap into that because these are real people we know a lot about.
Learning from the best: see the line-up of top speakers we’ve attracted for the UK’s biggest and best trade auto event FULL DETAILS OF THE CONFERENCE & AUTOMOTIVE EXPO – PAGES 50-53
Twitter Pietsch said dealers should see Twitter users as ‘low hanging fruit’ who just need to be highlighted. ‘By targeting keywords you know they’re looking for a car, and what type, all you have to do is spot them and engage,’ he said.
Facebook Facebook knows an awful lot about its users and you can use that to target your advertising. ‘You no longer have to make compromises with creative to cater for all – you can target exactly the right buyer on Facebook,’ said Morris. ‘Facebook has the detail, the scale and the scope to highly target your message to the people you want to get it in front of. We know when shoppers are in market.’ Morris said the Castle Auto Group in the States had seen a 24 per cent return on Facebook advertising and saved 75 per cent of the cost of direct mail. ‘One dealer invested 500 dollars and sold nine new cars and 11 used off the back of it – that’s quite a return on investment,’ she said. ‘We have a team who can help dealers with their campaigns – all you need to do is reach out.’ CarDealerMag.co.uk | 37
dashboard. NADA 2015: The Car Dealer Report
Smileypeople Do you even care if your team is smiling? If the answer’s no, you could be doing your business more harm than good. James Baggott reports on a fascinating NADA session
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happy and engaged workforce could be the key to driving more sales. That was the message from a panel of leading American dealers in a special forward-thinking workshop at NADA. A happy salesforce that enjoys coming to work and outwardly shows it make customers feel better and more likely to purchase a new car, explained host Nicole Lipkin, author and CEO of Equilibria Leadership Consulting. ‘Engagement is contagious – people want to stay at work and work harder when they are there,’ she explained. ‘And what’s more, happy customers come from happy staff.’ However, Lipkin said creating a smiling workforce was harder than it looks. She warned disengagement is costing American businesses $500bn a year through sabotage and absenteeism, so it’s more important than ever for dealers to make sure staff are in the right frame of mind when they come to work – and she said the same rings true across the world. ‘The workforces are changing and it’s the Millennials (those born after 2000) and Generation X (born between 1960 and 1980) that now make up the majority of car dealership’s teams – and they are the hardest to engage,’ she said. ‘Millennials now dominate the workforces by 75 per cent and they are hard to keep happy. They expect more and have different personalities.’ Lipkin said that, in America, the staff turnover rate is 35 per cent – and in sales it’s 61 per cent. More worrying is that the turnover for female sales staff is even worse at 71 per cent and that 40 per cent of sales staff are fired after just 90 days. ‘It’s a big problem,’ she said. ‘We need hours to be more flexible, especially for women with children and we need the industry to shed its
“boys’ club” feel. Management are simply not trained how to make people feel good.’ Lipkin believes car dealer bosses need to really care about their staff and make work fun. A flexible and fair workplace will please staff, as will the knowledge they will learn and grow in their careers. She added: ‘There’s a great saying that goes along the lines of “I’ve learned people will forget what you said, forget what you did, but they’ll never forget how you made them feel”. Which car dealer bosses could truly say their business reflected that?’ Sales staff need to not only be happier in their roles, but also need to change their perceptions of buyers, believes Lipkin. ‘Millennials will spend ten hours researching their next car purchase online and they want a different thing from sales people now,’ she explained. Sales staff need to offer an experience over a process. Customers want them to be absolute product geniuses. Customers are pretty clued up as it is, but they’re not experts. ‘It’s about offering knowledge over sales,’ Lipkin said. The American dealers on the panel had tried a number of different tactics to engage their sales staff – with varying success. Matthew Haiken, dealer principal of Prestige Auto Group, a family firm based in New Jersey selling Volvos and Kias, said half his 100-strong workforce were women. ‘They started out in customer service and we invested in them to become sales people and they have been very successful,’ he said. ‘We have had to groom our own talent – advertising does not work when attracting female sales staff. They’re put off. So I would suggest dealerships look to existing female staff and retraining them
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– I have proof that it works.’ Simple things like giving successful sales people their own offices have worked wonders at making staff happier for Liza Burches, president and CEO of Carter Myers Automotive, which runs 11 dealerships in Virginia. ‘We have 465 employees and take happiness very seriously indeed,’ she said. ‘We found simply giving staff their own workspaces, alone, was enough to make them very happy. They like having their own areas to work in and are more productive as a result.’ Alison Spitzer, vice-president of the Spitzer Auto Group – a 111-year-old family Ford dealer in Cleveland, Ohio – has found offering sales staff a choice between salary and commission had worked well, too. ‘We offer sales staff the
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We found simply giving staff their own workspaces, alone, was enough to make them very happy choice between salary and commission with very defined sales targets for both schemes,’ she said. ‘We let them swap halfway through the year, too, if it’s not working out for them. We’ve found some people like the guarantee of regular money and work just as hard and sell just as much as a result – and they’re happier, too.’ Spitzer also believes flexible working hours are important to keeping staff smiling and has trained her middle managers to properly manage their teams. ‘Happiness can falter because middle managers aren’t trained properly – they need to
know how to deal with their teams and ensure they’re not only getting the best out of them, but are listening to their concerns too,’ she added. And Spitzer has also found implementing and publishing a clear career path for staff at all levels in the dealership has improved retention. ‘People like to know what they are working towards and how they can get there,’ she said. ‘We found publishing a clear road map for them drove them to work harder.’ Jeremy Alicandri, vice-president of Habberstad Auto Group, a Mini and BMW dealer based in
Long Island, said good old-fashioned money talks kept his staff happy. ‘Sometimes reminding staff they can earn a good wage in car sales with very few qualifications is motivation enough,’ he added. But Lipkin warned that money isn’t the be all and end all for millennials. ‘Sometimes focusing on the commission can stifle the creativity of staff and they’ll feel uneasy, nervous and unhappy as a result,’ she said. ‘It’s a fine balance and one that dealers need to be very careful they get it right.’ CarDealerMag.co.uk | 39
dashboard. NADA 2015: The Car Dealer Report
Pictureperfect
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The brain processes a picture 60,000 times faster than text, so if your dealership isn’t using the power of Pinterest and Instagram, it’s missing out. James Baggott reports
ar dealers should consider investing time and effort in picture-sharing social media platforms to help them sell more vehicles. Sites such as Pinterest and Instagram might seem like the home of reclusive teenagers, but savvy dealers are tapping into their potential and reaping the rewards in the States. Zimmer Motor Company’s marketing specialist Lee Fogel told a small breakout session at NADA that he has been using Pinterest at his dealership for a while now – and is selling cars as a result. ‘We post current cars and old images and get brilliant traction off the back of it,’ he revealed. ‘The nice thing about Pinterest is that you can hyperlink back to your website and we get good traffic to our sales pages from it.’ Jessica Levin, president of Seven Degrees Communications, a specialist in social media, told the audience that Pinterest should be used to tell your company’s story first and foremost. ‘The site is good as it categorises sections for users so they can follow “cars”, which means they can follow what they are interested in,’ she explained. ‘With 53m active users, it’s the fourthbiggest social network and worth considering seriously as part of your marketing mix.’ Levin said a large percentage of Pinterest users were female, which is even more reason for using the site. ‘Women make a lot of the purchasing decisions in households, so targeting them on a social network they use makes sense,’ she explained. She advised dealers to add ‘Pin It’ buttons to their websites to encourage users to share the pictures on their own boards. ‘Try connecting on the site with your local community, too – that works,’ she added. Instagram is another site also worth seriously considering as part of your picture-sharing marketing strategy because it’s here where the
‘millennials’ are. ‘And millennials are buying cars now,’ explained Levin. There are some things to understand about Instagram if you’re going to get the most out of it, though. Levin explained you need to use hashtags properly – these are key words tagged with a hash first that help users find what they’re looking for. ‘Using your location as a hashtag is very important,’ explained Levin, ‘as is using hashtags that have a lot of traction. #Iwantthatcar is a perfect one – here people post pictures of cars they want and you can start a conversation with those people.’ Levin said dealers need to follow people on the social network and start talking to them. ‘It’s easy to start a conversation on Instagram,’ she said. ‘Create a community and comment – engage with them. Instagram is so much more than simply taking a picture and posting it. Learn how to have conversations.’ She explained the network has 300m active users who post 70m photos every day. So far 30bn photos have been shared on the site – and they’re not all of cats, she joked. ‘Seriously, though, if you want to get followers, post a picture of a cat – the internet loves cats,’ she revealed. ‘Dealers can use the site to post pictures of happy customers, new car buyers and stories that are emotional. Arm your sales teams with the log-in details or use the same hashtag to share success stories.’ Levin warned about direct selling on Instagram, too. ‘Millennials don’t like to be sold to on social media,’ she
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said. ‘So be careful.’ The social media expert said dealers need to seriously ask themselves if they are taking advantage of picture-sharing websites – and if not, why not? ‘They’re free and easy to use and can drive sales,’ she said. ‘What reason have you got for not sharing the pictures of cool new cars you’ve got in your showroom? The chances are picture-sharing audiences are not the same as those you’re talking to on Facebook or Twitter, so it’s worth using them all.’
Facebook With 699m people on Facebook every single day, this is the social network you should consider first. Levin said online adverts usually reach just 39 per cent of their intended audience, but because of Facebook’s unique approach and knowledge of its users, ads here reach 89 per cent of the people they were supposed to. Facebook allows you to target a specific audience – you can drill down to those who like the Volkswagen brand, for example, to those who live five miles from your site, even their specific age. Levin said it is easy to create an ad and precise metrics on its performance allow dealers to immediately change what isn’t working. ‘Facebook knows so much about its users – it knows when you’re about to be in a relationship before you do,’ revealed Levin. ‘It’s that advanced.’
Twitter Levin’s golden rule No1
Never, ever post a Facebook update on your dealership page without a picture – engagement rates for posts with pictures are 104 per cent higher than those without.
Social media advertising – should you use it?
Although paid adverts on social media websites are something of an oxymoron, Jessica Levin believes they should still be considered by car dealers looking to sell more cars. Her top tips appear on the right.
Levin said advertising on the social media network that uses just 140-character updates was still relatively new – but certainly worth considering. ‘Adverts appear at the top of a user’s Twitter stream and the social network site uses a car dealer here in the US as an example of a business that has done well using paid ads on its network,’ she explained. ‘The adverts on Twitter are relatively cost effective, but you must have a clear call to action and know who you want to target.’ Like Facebook, Twitter can help you drill down into your audience so the right users see your advert and the site gives dealerships plenty of analysis into the results. ‘You need to ensure when a user does engage with your advert, you continue to engage with them – it’s a social site after all,’ she added.
LinkedIn The professionals’ network isn’t the first social site that comes to car dealers’ minds – but promoted posts can reach influential people, believes Levin. ‘If you’re trying to reach chief executives, for example, or professional people who work in a certain industry, adverts on LinkedIn are worth considering,’ she explained. As with all social media sites, it offers advertisers rich data analysis of advert performance and, unlike its rival sites, most users view the site on a desktop computer, meaning adverts can have real impact. ‘Colleges in the US are now training graduates how to use LinkedIn properly and telling them they have to be on it,’ she added. ‘That means it’s a social network for the future and one that has professional people with the money to buy cars using it.’ CarDealerMag.co.uk | 41
dashboard. NADA 2015: The Car Dealer Report
Ringingthe changes
When was the last time you changed your sales process? If you’re still using 1980s tactics in a 2015 world you need to act fast, reports James Baggott
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Swapping ‘how can I help’ for ‘who am I speaking with’ changes the whole dynamic of the conversation
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imply changing the way you answer the phone in your dealership could have a dramatic impact on how many appointments your dealership makes. At least that’s the opinion of e-DealerSolutions president Jennifer Suzuki, who helps American dealerships radically alter their sales success. In an action-packed presentation to a conference room bursting at the seams with delegates, Suzuki explained a simple tweak to your phone calls can result in big wins. ‘I tell dealerships to change “how can I help you” to “who am I speaking with?”,’ she explained. ‘We all know customers are researching their cars more and more online and the only reason they are calling your dealership is for a price. And if all you talk about is price, you ��| CarDealerMag.co.uk
won’t sell any cars. ‘Swapping “how can I help” for “who am I speaking with” changes the whole dynamic of the conversation and puts you in the driving seat again.’ But Suzuki warns you need to be quick to follow up that question with plenty more that keep the conversation flowing your way. ‘Did you see the car online or in person?’ she recommended as a great follow-up as it qualifies the customer. ‘Or why not simply ask which car the customer is doing their research on – that shows you understand they’re not stupid and acknowledges the fact they are doing their homework. They’ll like the fact you’re not taking them for an idiot,’ said Suzuki. ‘Customers expect a completely different sales process these days. The focus has shifted from walk-in customers to internet sales leads, which presents dealers with a whole new set of rules of engagement.’ Suzuki said dealers need a set of rules – a process – for their sales staff to follow for things that weren’t important ten years ago. One of
the most vital, she believes, is how to leave a voicemail. ‘Your sales teams will leave more voicemails every day than they will speak to people, but do you tell them what to say?’ she asked. ‘Well, you should – because a voicemail could be the difference between them calling you back, or not, or worse, calling one of your competitors back.’ Suzuki said voicemails should promote your car dealership, should be personal and must scream good customer service. ‘Personalise the voicemail to that customer from any notes you have made on their situation in the CRM,’ she explained. ‘Ask how their trip to their mother’s was, say you hoped their team won at the weekend. Make it personal, make it relevant and make sure it promotes your company’s customer service. ‘Your staff need to know how to do it differently – and you need a plan in place that tells them what they have to say. The phone is your money maker!’ Suzuki went on to impress just how important good notes on customer projects are for dealerships. Staff need to make them and sales managers need to read them. ‘If your teams are
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The focus has shifted from walk-in customers to internet sales leads, which presents dealers with a whole new set of rules of engagement doing it properly, a sales manager will know what appointments a sales person has and at what time. With the correct notes they’ll be able to walk over, greet the customer and talk about the car they’ve come in to buy, because they’ll have all the detail from the CRM,’ she said. ‘This makes the customer feel special. It makes them feel like you’ve listened to what they said and understand what they want. It also saves a huge amount of time – sales people don’t have to ask them again when they get to the dealership!’ Suzuki said there are a number of killer tools in a dealership’s arsenal that when deployed can have top results. These include texting a customer a picture message of the car to prove the tyre tread depth is what you said or that the service book is present. ‘Texts are personal, they feel like a relationship and they are easier for a customer to reply to – use them,’ she said. Video follow-ups are also useful. These can be as simple as uploading a ‘hello’ video so the customer can put a face to a name and thanking them for their call. ‘Upload it to YouTube with a private link and text it to the customer,’ said Suzuki.
Sending your contact details to the customer – whether that’s a contact via your phone or a simple picture message of your business card – is a touch buyers like. As are email follow-ups. ‘The email follow-up is vital and confirms the appointment with the customer,’ she said. ‘Have a template for your dealership that can be easily modified and make sure sales staff personalise it for that customer.’ When the customer finally gets into your dealership, Suzuki says it is important to remember that 60 per cent of them will still check out other dealerships on their mobiles while they are talking to you – something dubbed ‘showrooming’ in the States. ‘If you need to leave the customer alone for any reason make sure they’ve got something engaging to do, as the last
thing you want is them contacting a rival,’ she explained. ‘Have manufacturer videos of the car they are looking to buy cued and ready to play on your machine or iPad and leave them watching them while you prepare the car. These videos are professionally produced and engaging, so use them. It will keep customers busy.’ Suzuki’s most important piece of advice, though, and one she hammered home throughout her presentation, was the importance of notes. ‘You need a good CRM and need to ensure everyone in your dealership is an expert in it,’ she explained. ‘It can save time and with the right information can make customers feel very special indeed. Use it properly and you’ll win.’
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dashboard. NADA 2015: The Car Dealer Report
Takingthe tablet iPad-equipped sales teams are revolutionising revenues for some American dealers. But how and why are they using them? James Baggott reports
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here are now more mobile devices on the planet – including phones and tablet computers – than actual human beings, but are you putting them to good use in your dealership? Kentucky car dealer Mike Porro says you really should be – because he’s seen new-car sales rise a staggering 64 per cent in his Honda dealerships as a result. Porro told delegates in a NADA workshop of the importance of introducing tablets in your dealership. He said not only has he saved thousands of dollars by removing all brochures from his showrooms, but he’s found customers are more engaged and they’re selling more as a result. The Honda dealer, who makes $6m net profit a YEAR, said tablets had also helped tackle a growing problem with customers, which has been dubbed ‘showrooming’. ‘Showrooming is the act of a customer, when left alone by a sales associate during the sales process, of searching for a better deal on their phone online,’ he explained. ‘If you don’t think they’re doing it, you’re wrong – they are, every time they have the chance. ‘The old sales process had too much time built into it when the sales associate would walk away to talk to a manager or arrange the test drive – and all this time the customer was reaching for his phone and getting a better deal. iPads in my dealership have solved that problem.’ Porro has seen huge benefits of introducing iPads. His best salesmen saw their sales rise 64
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We make it mandatory for all new sales staff to have a tablet per cent in just four months, used-car sales went up eight per cent while, more importantly, gross used-car profit increased 40 per cent. ‘We reduced the transaction time by a quarter, too,’ said Porro. ‘Our close rate improved by 22 per cent and our Facebook fans increased 900 per cent! ‘The latter was simply by taking a picture or video of the happy new buyers and uploading it to our page and letting the customer do the same from the iPad. It works.’ Porro believes engagement with customers has resulted in a sales boost too, as staff can show off the cars easily on the iPad next to the customer, which is more personal and immediate.
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‘We have the iPads loaded with all our cars’ details, so customers can compare them on the screen, hear about the safety, look at the features, compare the fuel consumption, everything,’ he explained. ‘Because the sales associate is sat next to the customer, they’re sharing the screen, touching it together – there is a connection, they are building a relationship. And because they have all the information in their hands, they don’t need to leave the customer alone, so the heartbeat of the sale continues.’ The Honda dealership has also found customers are far more willing to give them more personal information, which again has resulted in improved, more targeted marketing and increased sales. ‘There are only a certain number of personal questions you can ask a customer before it begins to feel awkward and uncomfortable,’ explained Porro. ‘But put an iPad in their hands and ask them to fill out questions on it and they’ll go on forever. They are used to tablets, it feels right to them,
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There are more mobile devices on the planet than humans and you’ll be surprised how much they will give away as a result.’ Jim Hughes, co-founder of tablet software specialist IntellaCar, says some dealerships have even seen customer details collected increase by 300 per cent as a result of tablets. Hughes believes the biggest problem for dealers lies in the fact the sales process has not changed quickly enough. ‘Consumers have changed dramatically but dealers haven’t,’ he said. ‘There are more mobile devices on the planet than humans now, and two billion more will shift this year. Fifty per cent of internet users across the world use mobile devices to access the web. ‘Customers get all their information before they visit your dealership and they expect you
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Consumers have changed dramatically but dealers haven’t
to be experts. So when they arrive and your sales associates can’t provide that, then there’s a problem. A tablet puts everything they need – and the customer wants – at their fingertips.’ Hughes also believes tablets can help with the problem of high sales staff turnover. In America, more than 60 per cent of sales staff leave or are fired every year – and tablets can help get their replacements up to speed quickly. ‘New sales consultants can learn about cars quicker and get answers on their tablets that might have before taken a while to learn,’ he explained. ‘Introducing tablets into the sales process is a big change – old habits die hard – but the world has shifted dramatically. The world is all
about mobile now and tablets are where it’s at in dealerships.’ But what about the costs of introducing them? Back to Porro for a simple answer on that front. ‘We make it mandatory for all new sales staff to have a tablet,’ he said. ‘Technicians wouldn’t turn up to work without their own tools, would they? So why in a dealership that is run on tablets would your sales associates turn up without an iPad? They wouldn’t be able to work without one at my dealership.’ While that might not work at your dealership, he’s certainly got a point – and it just goes to prove the seismic shift in attitudes to tablets in some Stateside showrooms. Maybe it’s time you made the change, too. CarDealerMag.co.uk | 45
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dashboard. NADA 2015: The Car Dealer Report
Are you wasting your ad spend? Not performing regular marketing audits and failing to follow a few simple rules could be costing dealers big time, reports James Baggott
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ealers are wasting hundreds of thousands of pounds on advertising every year because they’re not targeting it properly and analysing the results. With the choice of media more diverse than ever before, too many dealers are just doing what they’ve always done and throwing money down the drain in the process. Erik Radle, CEO of Texas-based Miller Ad Agency, told delegates at NADA they need to become experts in what feels right, so they can tell when things are going wrong. ‘How do you do that? You analyse the results properly,’ he explained. ‘If you’re in charge and don’t make the decisions in your dealership on marketing, then there’s something wrong. Yes, it’s a team sport, but the boss needs to understand it.’ Radle explained the biggest mistakes come from a lack of administrative control, a lack of buying intelligence, a poor strategic vision and poor auditing. ‘Dealerships need to ferret out the waste and redeploy that wasted money elsewhere,’ he said. While much of his presentation focused on television advertising – something that accounts for a huge chunk of American dealerships’ spend – he also gave advice on web, radio and print adverts and issued some golden rules for all marketing. ‘Take a look at your dealership’s small advertising spends – the ones that go under the radar,’ he said. ‘Are they working? Are they worth it? Is it worth instead putting that money into something that is?’
You need a plan too, he says – one that knows who your audience is and targets the holes in it. ‘You need to check out competitors and know inside out what they are saying,’ he said. ‘It’s often more cost-effective to work out who you are not targeting from your historic buyer profiles and targeting the media they consume instead. ‘If you don’t know the ethnicity of your buyers, their average wage, or where they live, then you can’t target the ones you’re missing.’ Radle warned not to be fooled by the ‘obligation theory’ – that is, feeling obligated to spend with a certain media because their rep has treated you to sports tickets or a game of golf. ‘Use obligation theory in your dealership – give kids a toy car and the adults a free drink – but don’t be fooled by the media company reps doing the same thing,’ he said. You don’t have to like your own adverts either, he explained. ‘The creative is not designed to appeal to you – you’re probably a different demographic to your customer – so don’t be disturbed if you don’t like your own adverts,’ he explained. ‘You might not see them or hear them, either – but again, that’s because you should be placing them in titles you might not necessarily read but your customers do.’ Negotiating annual deals with suppliers is key, he says, and you should be getting at least a ten per cent discount for doing so and dealers should try where they can to piggyback on manufacturer ads. ‘Customers will see the pretty advert from the manufacturer and then you should tell them
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where they can buy it – learn what your manufacturer is doing and piggyback on it,’ added Radle. There are some golden rules for online advertising, too, he explained, especially as revenues for online advertising have now surpassed that of TV. ‘Some 26 per cent of all online ads are wasted as they are on the wrong channel, have overlapped audiences or are too frequent,’ he said. ‘Find a company that can optimise your online ads for you – call in the experts, or at least call in the experts’ machines!’ Don’t land customers on your home page when advertising a specific deal online – that will only annoy them – and ensure your ads are only online when you are. ‘What is the point of advertising your dealership’s deals and phone number when you’re not there to take the call?’ he asked. ‘There isn’t. Ring fence the time your advert goes out to match your opening hours.’
Car dealers must beware Russian cyber attacks Erik Radle used his speech to issue a warning to car dealers of Russian cyber attackers who are destroying car dealers’ pay-per-click campaigns. He said unscrupulous rivals are targeting their enemies using a covert company to deplete PPC campaign budgets using automated clicks. ‘The company is instructed to target rival car dealers’ adverts on search engines and the robot keeps clicking until the budget has been spent and the advert goes away,’ he told delegates. ‘Dealers need to be aware this firm is out there and can do this. There isn’t a dealer in this room who hasn’t clicked on a rival’s advert knowing it will cost them a few bucks, but this company is doing that on an industrial scale.’ Radle named the company responsible, but Car Dealer has chosen not to here. ‘My advice would be to be aware and take action to prevent it,’ said the advertising expert. ‘You can place a limit per hour on the amount spent on PPC and these ’bots will soon get bored and move on after that. ‘Also tag your adverts from a geographic perspective – you know buyers are not going to be coming from Russia or outside the States, so ensure your PPC is protected from that.’
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If you don’t know the ethnicity of your buyers, their average wage, or where they live, then you can’t target the ones you’re missing
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dashboard. car dealer conference & expo 2015
Why you must be at this year’s Expo So we’ve popped over to the States and learned from the very best exactly what car dealers need from a top-level Expo. So what happens next? James Baggott explains...
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f you’re looking for the next big thing in the automotive industry – Silverstone on June 9 is where you need to be. That’s the location for the 2015 Car Dealer Conference & Automotive Expo, being hel in assocation with GForces, and it’s set to be the biggest event of its kind in the UK. Inspired by feedback from the industry and the NADA Convention we attended in San Francisco, Car Dealer is bringing everything it learned – and more – together for one huge event for the industry this summer. Already we have signed up a host of keynote speakers and we’re busy adding a number of different elements to make this a must-not-miss event. We know how much the automotive industry in the UK is crying out for an event of this type and we want to work with dealers, manufacturers and suppliers to make this an annual event that works for everyone. That’s why attending the Car Dealer Conference & Automotive Expo, in association with GForces, is completely free for car dealers and manufacturer staff. Registering for the Conference and Expo is simple and can be done online by visiting bit.ly/ CarDealerConf where you enter your details – and that’s it. Here are just a few reasons why you have to be there…
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Keynote speakers Ken Ramirez Renault Dacia, managing director
Since being appointed managing director in February 2013, he has overseen an unprecedented doubling of the group volume and the launch of the Dacia brand to critical acclaim. Renault’s
Steve Fowler
Auto Express & Car Buyer, editor-in-chief
Steve has had an illustrious career in journalism and is one of the wider media’s go-to experts for comment on all things automotive. Formerly editor of Autocar and WhatCar?,
sales and Dacia’s sales grew 44 per cent and 39 per cent respectively last year and his dealers are delighted with the new brand’s success. Using no-nonsense advertising and plain sales techniques, Dacia has caught the car-buying public’s imagination. Hear how Ken and his team did it – and how the lessons they learned can inspire you.
Steve is now in charge of the biggestselling weekly car magazine in the UK, Auto Express, and its sister website Car Buyer. In his keynote speech he’ll be using data gleaned from his magazine’s annual Driver Power survey of 30,000 car buyers, to tell you exactly what current consumers want from their dealers.
Tim Smith
GForces, group strategy director Headline Sponsors Tim Smith will speak about how embracing a data-driven digital culture enables motor retailers to thrive in
this era of the connected consumer. He will give examples of how many motor retailers are developing their processes to not only adopt new technology, but to successfully apply it and drive significant results from their digital dealerships.
Best Used Car Marketing Scheme A Sign up online for free at – bit.ly/CarDealerConf
Workshop sessions We will be holding 12 Workshop Sessions on the day, which are all designed to educate and inform dealers on the latest trends. These will be held in the morning and then repeated in the afternoon. All Workshop Sessions are free to attend and can be booked in advance, or you can simply turn up on the day and choose which you’d like to visit. However, we expect these to be very popular and entry will be on a first-come, first-served basis. Speakers have been selected from a host of companies who are experts in their respective fields and, don’t fear, there will be categorically no selling in these sessions – they have all been designed to educate you. Workshop Sessions planned, which are subject to change, currently include:
1. A Masterclass from Twitter
Twitter UK will be sending an expert to show you how you can sell more cars using the social network
2. Former Spy On How To Protect Your Dealership
8. Think Video First
Top tips on how your dealership can use video to great effect in the sales process
9. Leadership Lessons
How every car dealer leader can maximise staff engagement in the workplace
Former British Security Services staff show how car dealers can protect themselves from criminals and insider threats
3. The Legal Pitfalls That Are Trapping Dealers
This session will focus on the employment and consumer protection issues facing dealers
10. Use Your DMS To Sell More Cars
DMS best practice – what should you be getting out of your current system
11. Sourcing The Right Stock, Right Now
Top tips on sourcing the best possible used-car stock for your dealership
4. Write-Offs And Repos
How not to get stuck with a car you can’t sell and what to do if you do
12. Know Your Customers
5. Lead Generation Masterclass
Data is critical to knowing your customers, but where can you get it and how can you use it?
6. Sense Check Your Ads
Full details of all these will be revealed in coming issues of Car Dealer and exclusively on our website. Contents and sessions are subject to change.
How lead generation can be a weapon in every modern dealer’s sales arsenal
How to work out if you are spending your marketing money in the right places
7. Turbo Boost Your Website
How can you improve your website’s performance using key metrics and analytics
Turn over page for more on this year’s conference, including: Breakout Sessions Car Dealer Q&A Panel The Automotive Expo Event timetable
0845 658 9290 | info@gforces.co.uk | www.gforces.co.uk
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CarDealerMag.co.uk | 51
dashboard. car dealer conference & expo 2015
Breakout Sessions As well as the Workshops, there will be four Breakout Sessions in the afternoon. These are a mix of open-to-all and invite-only sessions, and include the following:
Top 150 Dealers On Twitter
Find out before anyone else who has made the Most Influential Dealers on Twitter list this year. We’ll be inviting every dealer who has made it into our top 150, we’ll hand out some special awards and there will be an exclusive Q&A session with a representative from Twitter and Google’s Scott Sinclair.
Women In The Motor Industry
This unique, invite-only session will see leading women in the motor industry give inspiring speeches and offer others a chance to network. Two exclusive talks from a leading franchised dealer boss and independent dealer will form key parts of this females-only session.
Car Dealer Q&A Panels
This open session will see four of the UK’s leading car dealer group bosses and four car manufacturer MDs give their best-practice tips and opinions on pertinent topics. Chaired by Car Dealer MD James Baggott, this session will also take questions from the audience. So far, Ken Savage (Perrys), John Tordoff (JCT600) and John O’Hanlon (Ridgeway) have all agreed to feature in the dealer panel.
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Automotive Expo Car Dealer Magazine is a passionate believer that the UK automotive industry is crying out for an event of this type. That’s why we’ve been working hard with suppliers from across the industry to help them showcase their products and services to dealers at this event. With a footprint that is three times the size of last year’s Conference, for dealers the Expo will be the perfect place to see what around 100 suppliers to the motor trade have to offer, giving you the chance to compare your current supplier with the competition. We know how tough it can be to arrange time in your diary to see suppliers, which is why the Expo – where they are all in one place – is the perfect place and time to do business.
Sign up online for free at – bit.ly/CarDealerConf
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Best Used Car Marketing Scheme Award
Dealer and Manufacturer Meeting Space
Timetable
We have limited dedicated rooms for dealer groups and manufacturers to hold national meetings. If you can sign up a minimum of 50 delegates to the event, we can offer you a free room at Silverstone to host your meeting while your staff can also enjoy the conference and expo. This offer is completely free and on a first-come, first-served basis. Please contact james@blackballmedia. co.uk for more details
Keynote speakers
0800
Expo Opens – breakfast
0900 1000
Dealer group and manufacturer franchise meetings
1000
0845 658 9290 | info@gforces.co.uk | www.gforces.co.uk
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Workshops Session One x4, half-an-hour each
1045
07/12/2012
Workshops Session Two x4, half-an-hour each
1130
Workshops Session Three x4, half-an-hour each
Suppliers – why you must be there! Car Dealer Magazine wants to work with the industry to create a networking and educational event that works for the whole automotive industry. We truly believe that if we can work together on this event, we can create a lasting Expo that will become a key annual event. Having seen the popularity and brilliance of NADA, we know the motor trade here is desperate for something of similar style, albeit UK sized! With this in mind, we want as many suppliers to exhibit as we can fit into the Expo area. We have flexible space available for exhibitors and prices for stands start from as little as £495 with a variety of options to suit the demands of even the largest exhibitors. If you’d like to talk about these options in more detail please do not hesitate to call a member of the Car Dealer team on (023) 9252 2434 or email us at events@blackballmedia.co.uk
1200
Lunch & Expo
1400
Breakout Sessions x4, differing lengths
1400
Workshops Session One Re-run
1445
Workshops Session Two Re-run
1530
Workshops Session Three Re-run
1630
Headline Keynote speaker
1730 Close
CarDealerMag.co.uk | 53
FEATURE.
Hey, good Lookers... The industry is booming – and Lookers are leading that. They’re already one of the big players, with annual profits topping £90m, and they’re looking to get even bigger. So how do they do it? And what does the future hold? COLIN CHANNON finds out.
H
and ultimately for us this comes particularly aving a role in the boardroom Nigel from the past five or six years, the Peter Jones at Lookers must be like dying McMinn and Andy Bruce era. We had decent guys at and waking up in heaven. the top who created a good culture, who put They cover 31 franchises across senior management – who then put middle more than 77 locations – at management – in place who do have good the moment. They’re on the values, who care about people, who want to lookout for more. manage the business in a positive, supportive, They have some of the most modern and optimistic, empowering sort of way.’ most striking showrooms in the business. And That’s a world apart from many big they’re looking to build more. Their dealerships businesses. For them, centralisation is the key, sell some of the nicest cars on the family with all the big decisions coming from the market. And they sell a lot of them. boardroom, and who would frown on people in Oh, and after paying off the bills this year, the sticks trying to tell them how to do things. they’ll be left with about £90 million. Yes, that’s which act like McMinn, right, £90 million profit. In a year. Having a role Companies in the boardroom canthat, do itsays – and dot it so of authority to the people in the are be missing a trick. have a company that If business were really that easy, everyone at Lookers must like dying and‘If you successfully. ground. That means they tend to just clinical, is all about numbers andup is very would be making a fortune every year. waking So how up in is heaven. We caught with managing be very stable teams who feel very andacross wants to take all the decisions come this Manchester-based business canThey do itcover aggressive, 31 franchises director Nigel McMinn to find out empowered and motivated to make goodmakes ideas Lookers are – and do it so successfully? more than 77 centrally locationsand – atthinks the all thewhat tick. And decisions and run the business. created centrally, inevitably you don’t attract We caught up with managing director Nigel They’re moment. on the lookout there’s no big secretthe – it’s all about ‘Each business unit tends to feel best talent,’ he says. McMinn to find out what makes Lookers for tick. more. letting managers manage. And, like a family business. It combines ‘Weofhave therecruiting business those good And there’s no big secret – it’s all about letting They have some the good most people because of course, the strength of a big company has been able to retain andmanagers attract high-quality managers manage. And, of course, recruiting modern and most striking in the first place. with the values locally of a small It’s one I havesays: really‘We are an those good managers in the first place.showrooms inmanagers. the business. Andof the things McMinn company.’ noticed in more. the 16 or 17 months I have been here, McMinn says: ‘We are an unusual company they’re looking to build unusual company in that we have Easy as that, then? the calibre of the individuals throughout in that we have the benefit of the size andTheir the dealerships sell some the right benefit of the size and the McMinn says: ‘It works if scale and the financial firepower that comes the business is very strong.scale Theand secret that of the nicest cars on the family theisfinancial firepower you have a good culture – and with it – in today’s world that’s really important we’resell a people havewith all the market. And they a lot ofbusiness. them. You thatcan comes it, particularly in ultimately for us this comes – but we combine that with a devolved structure processes systems like, butfew if people Oh, and after paying and off the bills youthe past years since we started particularly from the past five or that gives a lot of authority to the people the they’ll aren’t happy when they come to work and don’t thisonyear, be left with about to really perform well. In today’s six years, the Peter Jones ground. That means they tend to be very feelthat’s valued and £90 don’t know where theyreally fit in,important. it £90stable million. Yes, right, world that’s and Andy teams who feel very empowered and motivated translate to the customer million profit.won’t In a year. ‘Butexperience. we combine that with a to make decisions and run the business. If business were ‘I think are in danger when reallyother that companies devolved structure that ‘Each business unit tends to feel likeeasy, a family concentrate tooa muchgives on the everyonethey would be making a lot business. It combines the strength of fortune every spreadsheet the year. So howand come a big company with the values locally of a Manchester-based bottom line.’ this small company.’ business Easy as that, then? McMinn says: ‘It works if you have a good culture –
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Companies are in danger when they concentrate too much on the spreadsheet and the bottom line
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what’s your secret? have some of the smaller dealers the appetiTe to carry on? Some of the smaller dealers are going to have environment. We need to maintain that local a tough time surviving as the way cars are sold feel with good managers and people who are evolves, says Nigel McMinn. happy, but we also need the firepower to say And it’s not the case that they’re not good we have to have the top systems guys available. enough to carry on – far from it. It’s more a case And when you need to put in a big investment in of whether some of the older, more established systems, when you’re a big company and you’re business owners will have the appetite to adapt generating a lot of profit and cash, it helps. to change. ‘I do wonder whether a number of smaller McMinn accepts Lookers have spent – and groups will look at the investment needed spent big – to ensure his company has the in facilities and systems, and at the kind of correct infrastructure in place. sophistication you need to either bring in-house He says: ‘Our investment in systems, or buy through agencies, and decide it’s just too hardware and software, and our sophistication difficult. in managing change that’s becoming vital to ‘That’s why I’m not sure that some smaller link the internet to our core systems, has been dealers will survive the new environment, purely massive. because they won’t have the appetite or the ‘We are starting to consider investment wherewithal to cope with it. in technology at the same sort of level as ‘By their nature, they’re usually run by people Bruce era. We had decentIt’s a more aggressive, and wants to take been in here, calibre theor 40 years property investments. sophisticated who have been the the industry forof30 guys at the top who created a all the decisions centrally individuals right throughout good culture, who put senior and thinks all the good the business is very strong. management – who then ideas are created centrally, ‘The secret is that we’re put middle management – inevitably you don’t attract a people business, and I in place who do have good the best talent,’ he says. think that’s the secret for values, who care about ‘If you have a positive, any business. If you go into people, who want to manage open and supportive culture, any business in any sector the business in a positive, which is encouraging and – although particularly with supportive, optimistic, about building people’s selfa service business like ours empowering sort of way.’ esteem and confidence, not when, broadly speaking, the That’s a word apart from only do the existing people product and the pricing is many big businesses. For perform well, but it tends to similar – they differentiate them, centralisation is the start to attract higher-quality by the quality of experience, key, with all the big decisions management who want to and that inevitably comes coming from the boardroom, come to a business that lets down to the calibre of and who would frown on them make decisions. management and the people in the sticks trying to ‘That’s at the root of all of quality of people and their tell them how to do things. this. Yes, we do have good engagement and motivation. Companies which act people because the business ‘You can have all the like that, say McMinn, are has been able to retain processes and systems you missing a trick. and attract high-quality like, but if people aren’t ‘If you have a company managers. It’s one of the happy when they come to that is just clinical, is all things I have really noticed work and don’t feel valued and don’t know where they about numbers and is very in the 16 or 17 months I have
and have done it the same way for most of that. They can’t just advertise in the newspaper and send out a bit of direct mail any more. Customer expectations are massive compared to what they were, because they’re getting experiences through Amazon and John Lewis and different retail environments, so it has raised their expectations from our industry. ‘The manufacturers are much more demanding – it’s no longer enough to sell their cars. They’re driven by customer satisfaction, finance penetration, service plan penetration. ‘Some of these guys who have been around 40 or 50 years may just look at the way it’s gone over the past few years and say “you know what, this isn’t for me any more – the investment’s massive, it’s too complicated, the demands are too great, and I’ll see if someone will take this business off my hands”.’
Lookers’ new FordStore in Chelmsford
CarDealerMag.co.uk | 55
FEATURE.
£90m fighting fund to stay right at the top of the tree
L
ookers is a large company by anyone’s standards. And they’re looking to get even bigger. Led by chief executive Andy Bruce, they’re actively scouring the market to see what opportunities exist to add to their portfolio. Nigel McMinn says: ‘At the moment it’s looking like we are generating about £90m of cash a year, after taking the profit and stripping out depreciation and all that. By the time we’ve paid the tax, the dividend, paid down some debt and invested in some of the areas I’ve spoken about, we’re still left with a pretty big fighting fund of capital. ‘We could distribute it to shareholders, but our view is that we’re better off using it to generate capital. We have proved in the past that the companies we have bought Andy Bruce have gone on to generate very strong return on capital, so our investors and institutions in the City push us and say ‘go on, let’s have more of that, go and buy something else…’ ‘The return on our capital is running at 23 per cent as a group. People talk about it being a narrow-margin industry, but they refer to the return on sales – when you think about it, particularly with fleet distortions and all sorts of different things, that doesn’t necessarily mean anything.
‘Our view is that if you’re getting more than 20 per cent return on capital, that doesn’t feel like a narrow-margin business. ‘We’re looking to expand nationwide, but only in the larger towns and cities. Our preference is to try to stay broadly in the geographies where we are currently represented – we’re heavy all over the south east, the north west, Scotland and Northern Ireland, so our tendency would be to concentrate in those areas because we have existing management and critical mass for business there, so you can allow for some efficiencies in marketing, and in staff mobility for promotion and prospects, that kind of thing. ‘We are still looking to grow, but what is crucial to all franchised dealers is that you have to maintain a strong relationship with your brand partners. ‘We are very conscious that, particularly with the premium brands, there will be a cap – they won’t want any dealer group to become too powerful. So while we still want to acquire, there will come a point in the future that we, like others in the industry who are perhaps bigger than us, that certain brands say that’s enough, they’d rather we didn’t have any more. ‘We’d just comply with that, we wouldn’t fight it.’
new systems, new projects, new acquisitions So what does the next 12 months hold in store for Lookers? We asked Nigel McMinn what’s on the agenda now, and how he would measure a successful 2015. ‘In the next year, one of the big-ticket items for me is that we’d have made big progress in our systems,’ he says. ‘We recruited a business transformation director at the end of last year, and he has a strong background in systems and change projects, with 12 years with Carphone Warehouse and four years with Tesco Mobile, and already he has specifically identified change projects. We have clear
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objectives, milestones, deadlines, project managers and project sponsors, and he has put some real rigour and discipline into which projects we will be undertaking, and why we’re doing them. We will have probably another 12 significant property improvements or relocations or major refurbishments or new builds, which will upscale the quality of our representation. And I’ll be disappointed if we have not made another reasonable acquisition. It might be two or three small ones, or it might be a decent-sized group, but a decent acquisition is a key agenda item.’
“
If you’re getting more than 20 per cent return, that doesn’t feel like a narrow-margin business
we’re not worried the market will be flooded by good-qualIty used cars One of the biggest fears for dealers this year is what will happen when the market is flooded by good-quality, low-mileage used vehicles returned by customers changing their car as their PCP deals come to an end. Some dealers fear prices will come crashing down as supply exceeds demand. But it’s not a vision shared by Nigel McMinn. He says: ‘We have all read about the fears of some commentators on our business of the flood of new cars hitting the market, because of the explosion of PCP deals three years ago. ‘We have had dialogue with CAP and Glass’s and others about their views on this. We watch it cautiously, but our view is that we’re still in a fairly low market as far as used-car changes are concerned.
‘At about the same time as the new-car market peaked, in 2003, used-car changes of ownership peaked at about seven and a half million. But it’s down now to sub-seven. Our view is the used-car market can accommodate a larger number of changes than it is currently going through. ‘Most dealers will tell you they have been starved of good-quality used cars up to five years old because of the dearth of registrations. ‘We’re just moving into an era now where registrations have started to get back to more normal levels, in excess of 2.4 million, and yes, that will bring more supply of used cars, but we used to cover that absolutely fine. We have had fleets of buyers out there on the road searching for used cars. If we can generate more of them in
part-exchange – we buy about two-thirds of our cars from manufacturers, from Motability, from auctions, from other dealers, and only one-third from part-exchange – so if a higher proportion come back from the end of PCPs, and we could retain them directly into the dealerships and retail them, that’s a positive thing for us. It saves a car going to another dealer, then an auction, and then us having to buy it there. ‘We’re not worried about it. Realistically, what we’ll see is the depreciation curve move to a more normal seasonal depreciation. In the past couple of years, because of the shortage of cars, we have seen prices going up and up and up, and obviously that won’t continue. But I don’t think there will be a huge crash, just a more normal depreciation curve.’
Lookers’ new showroom in Battersea
it’s a good time to be a dealership Almost every month in Car Dealer, we speak to a manufacturer looking forward to the future with optimism. All the big brands are planning launches of exciting new models, and hardly a week goes by without one manufacturer or other making a song and dance about a car with a new tweak, a quick refresh, a new engine or new cockpit. Nigel McMinn is loving it. ‘It’s a good time to be a dealership,’ he says. ‘There are some great cars planned for 2015. The Mustang is an exciting one, but it’s a halo product. It’s one that will add some glamour, but in truth it won’t generate a huge number of
sales, and there won’t be that many in the country. The cars we tend to smack our lips over are the ones we are going to sell boatloads of at full margin. When the new Range Rover Sport came out, we knew that would be great. ‘So probably the new Discovery Sport is the one that comes immediately to mind. We have ten Land Rover dealerships, and I’ve been to a couple this week which have had two or three Discovery Sports as test cars, to get customers to experience them. The customer reaction to them has been incredibly positive.’ [CD]
CarDealerMag.co.uk | 57
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DASHBOARD.
Nightmare scenario after new-car launch Dealers sell Celerio – and take it back 24 hours later
I
t’s the worst scenario possible. A car is launched with all the usual razzmatazz and press briefings... and then, as soon as it goes on sale to the public and the first vehicles are driven away proudly from the showroom by new owners, a major safety concern is uncovered. That’s exactly what happened to Suzuki at the launch of its A-segment supermini Celerio. Customers picked up their shiny new cars on February 1. On February 2, they were contacted by dealers and told not to drive them. And the car was withdrawn from sale. A fault with the brakes was discovered during testing by the magazines Autocar and What Car?
by dave brown @CarDealerDave at the Millbrook Proving Ground. Subjected to an emergency stop, carried out from 80mph, the brakes simply failed to work. Autocar reported: ‘The brake pedal became stuck in the fully depressed position and had no effect on the Suzuki’s speed.’ Speaking exclusively to Car Dealer, Dale Wyatt, sales and marketing director for Suzuki cars in the UK, said the manufacturer was hoping for a speedy resolution, but that driver safety was the numberone concern. He explained the car was manufactured in Thailand, but added: ‘All the engineering originates from Japan. That’s where
the chief engineer and all the top chaps from a technical perspective reside so we’re liaising with them closely on a daily and hourly basis.’ He acknowledged: ‘It’s not the news we’d like. But our job has been to put our sales concerns behind us and make sure we are looking after our customers properly and looking after the dealer network. We’re doing the right and proper thing before we draw breath and go again. ‘At some point in the near future there will be a rectification and it will be all systems go with the launch of the car again. But until we get a full and final resolution it would be wrong of us to continue
so what’s it like to drive? Before the furore broke, Sophie Williamson-Stothert took the car for a spin. She didn’t go above 80mph, so she was fine... What is it? This new A-segment supermini is designed to offer buyers more choice for their money. As production of Suzuki’s other models – the Alto, Splash, SX4 and Grand Vitara – comes to a close, the brand is putting all its eggs into this little hatchback. The Celerio is a five-door city car that combines class-leading efficiency with high specification levels. Suzuki claims the Celerio focuses on two key selling categories within the ‘mini segment’: value for money and quality. It sits between the likes of the Toyota Aygo and Ford Fiesta in terms of market placement.
What’s under the bonnet?
have an average fuel economy of more than 60mpg. The entry-level 1.0-litre is free to tax, too. This engine is the same used in the outgoing Alto and Splash models. It emits 99g/km and has a claimed fuel consumption of 65.7mpg. The newly-developed 1.0-litre Dualjet benefits from an improved compression ratio and the addition of a dual-injection system, resulting in an average fuel economy of 78.4mpg and CO2 output of 84g/ km. It will also be available with a brand new Auto Gear Shift (AGS) gearbox, which will be an option for the top-of-the-range Celerio SZ4.
What’s it like to drive?
The little Suzuki feels most at home around town, whipping around Two petrol engines are offered city streets and into small spaces. including a brand new 1.0-litre It’s not too fond of speed bumps or Dualjet unit, which is due to be launched in April. The Celerio will be uneven country lanes, but that can be forgiven when it’s not designed available with only a lower-powered 1.0-litre from launch but both engines for ventures out into the wild. The Celerio does redeem itself on the have three cylinders, are mated to motorway, though – it’s satisfyingly five-speed manual gearboxes and
stable on the open road and cruises comfortably when passing traffic, but it does suffer from loud tyre noise when you hit a change in road surface. Thanks to its box-like shape, the Celerio offer greats visibility, important for commutes.
What do the press think? AutoExpress says: ‘While the Suzuki Celerio can’t match the Volkswagen up! or Hyundai i10 for driver enjoyment or interior quality, it comes loaded with kit and feels much bigger inside. It’s up there with the best for outright value for money.’
What do we think? The Celerio may not be the most exciting car in its segment and it’s certainly not the best looking. But for pure value for money, the little Suzuki outshines its rivals – no other A-segment car can offer the same level of equipment for such a price. The Celerio is built purely for practicality.
with the sale of the car.’ Wyatt explained: ‘The first step was to withdraw the car from sale, to make sure that there were no customers driving them; to make sure there were no dealers driving them and to make sure everyone’s safety was protected. ‘The car has been on sale worldwide for a long time with no problems. But we take all of these things really seriously. The first thing to do is to identify the fault, or the phenomenon, and then take remedial action to make sure it can’t repeat itself.’ Wyatt confirmed all customers were given courtesy cars.
the knowledge Model: Suzuki Celerio SZ4 Price: £8,999 Engine: 1.0-litre, three-cylinder petrol Power: 67bhp, 90Nm Max speed: 96mph 0-60mph: 13s MPG (comb’d): 65.7mpg Emissions: 99g/km Residual values (three years): tbc
target buyers:
Drivers looking for a car that will get them from A-B, with an iPod connection, and who like value for money
the rival:
The Hyundai i10... and to be honest, that is more enjoyable to drive
Key Selling Points:
1. It’s perfect for darting around town 2. Parking is a doddle 3. It has a boot space of 254 litres
Deal Clincher: Firstly, that the brakes get sorted... and it does have more equipment as standard than any other car in its class CarDealerMag.co.uk | 59
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DASHBOARD. motor codes
Terry steps up to interim role Motor Codes has appointed former Chevrolet UK and Ireland director Mark Terry as interim managing director. Terry is a long-serving motor industry professional who has held senior positions in the UK and internationally. He has served on the Motor Codes board since 2010 and will manage the business and identify new commercial opportunities in an interim capacity as the organisation looks to recruit a permanent appointee. Mike Hawes, the chief executive of the SMMT and a board member of Motor Codes, said: ‘Mark has a first-class reputation and a track record of delivering growth to businesses. His knowledge and experience of Motor Codes and the issues surrounding the sector from his time as a board member will be invaluable. ‘Industry and consumers can expect him to bring vigour and strong leadership to Motor Codes during his tenure.’ Since graduating in motor vehicle engineering from Bucks University in 1987, Terry has worked exclusively in the motor industry including roles with Saab GB and as GM’s business development manager in Singapore. More recently he was Chevrolet’s director in the UK. Terry said: ‘I’m excited and privileged to be leading an organisation that has championed consumer rights and brought clarity and an enhanced reputation to the motor industry. Since 2004 Motor Codes has developed into a highly respected and trusted organisation. ‘I look forward to working with staff and, in partnership with the Trading Standards Institute and other stakeholders, tto ensure Motor Codes continues to retain the full confidence of consumers and garages across the UK.’
Whoops! Salesman wins £50,000 by accident bit.ly/50k-win
Ford’s on a winner – here’s another stunning new car Focus RS will have the performance to match its striking good looks
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ord seems to be on a bit of a roll at the moment. Fresh from wowing everyone in Geneva with the stunning GT (if you haven’t seen it yet, turn to page 66 – you’ll be amazed...) it has previewed the all-new Ford Focus RS. And it’s another stunner. The high-performance road car will debut the innovative Ford Performance All-WheelDrive, delivering, it says, ‘classleading cornering speed, thrilling performance and unbridled driving enjoyment’. Production will start at the end of this year. At one stage, Ford said it was unlikely to go down the 4wd route for cars like this as it would be cost prohibitive, but although official prices have yet to be revealed, the talk in the industry is the Focus
by COLIN CHANNON @colinchannon
RS will cost around £30,000. It will be equipped with a special 2.3-litre EcoBoost engine engineered to produce well in excess of 320PS. It is the latest vehicle to be unveiled as part of a new era of Ford that will bring more than 12 performance vehicles to global customers by 2020. Raj Nair – who has the title group vice-president, global product development, Ford Motor Company (how BIG is his business card?) is excited by it. ‘The Focus RS is a serious machine with high-performance technology and innovative engineering that sets a new benchmark for driving exhilaration on the road and track,’ he said.
‘The RS line has a proud history of technical breakthroughs that have migrated to mainstream Fords to benefit all our customers, and the new Focus RS is no exception. ‘It’s a great example of our passion for innovation through performance and creating vehicles that make people’s hearts pound.’ Developed by a small team of Ford Performance engineers in Europe and the US, the new car is the third generation of Focus RS vehicles, following models launched in 2002 and 2009. It will be the 30th car to wear the legendary RS badge (who can name the other 29 without resorting to Google?). This will also be the first RS model to be sold around the world. Jim Farley, president, Ford of Europe, Middle East and Africa, added: ‘We are acutely aware of the benchmarks we have set ourselves with RS performance models through the years, and rest assured this new car raises the game to a new level.’
BMW dealership goes beyond call of duty for new dad EVERY dealer says they like to put customer service at the top of their agenda. So step forward the team at Sytner BMW in High Wycombe… They went beyond the call of duty when new dad Richard Price popped in with his car. Richard said: ‘On the day my daughter Felicity was born, I parked in the hospital and someone hit my car
bumper quite badly without leaving a note. My car was already booked in for a service this week, and when I got to the garage, I explained what had happened and asked for a cost. It was £1,200 for a replacement bumper, or £600 to knock it out. I declined – as I have rapidly come to understand how much a baby costs – and left the car for the service. I could live with
the damage. Later that day, I went to pick the car up, to be presented with a bottle of champagne to say congratulations on the arrival of our baby girl – and they had repaired the bumper free of charge as they understood the financial impact it could have! ‘Wow! I was absolutely bowled over, and cannot be more grateful.’ CarDealerMag.co.uk | 61
FEATURE. TV SPECIAL: the characters behind the show
Car princes and THE BOSS: Joe Macari, Joe Macari Performance Cars, London Your thoughts about the show? I thought the programme was shot really well, and that the photography was first class. I thought it was an honest programme for once – it wasn’t contrived, which I was very pleased about. You sometimes wonder about the media and the twist they put on things and I was pleased and surprised. Did you get to see it before it was screened? I saw bits of it before it went out but not the whole thing. I had an idea how it would come across, but you’re still always a bit cautious before you see it live. Were you pleased with it? I think the motor industry as a whole showed itself well, and deservedly so. It gets a bad rap but we’re not like estate agents who don’t care what they sell. We do look after our customers and they come back to us if there’s a problem. An estate agent is just the man in the middle. Has it been good for business? We’ve had more people than normal coming through the door since the programme but most of them have been viewers rather than buyers. But I think it has helped, because potentially there’s someone who may buy something from us in the future because of it. How did you find Darren? Darren is a very nice man but he’s a blagger. If he was 20 years younger we’d have employed him because then he would have wanted to do the graft. When you’re selling a normal car, you can blag it as you go along – you see it’s got air con, so you’ll mention it. What he couldn’t appreciate is that with our stuff you have got to do the research and know your product. He’s as good a salesman as there is out there but his weakness was that he wasn’t prepared to put the background in which you’ve got to do at our level. I believe what we do is the hardest part of the industry. We are completely diverse and if you don’t learn your product you’re going to be exposed. The classic car customer who wanted to buy as an investment exposed him. Not being funny, I sat down with Darren and I explained to him why it was the right investment for that kind of money and
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he obviously paid no attention as he told the customer that the car had four seats… The only bit of that he got right was that three and four seater Ferraris from that era were undervalued, but he lost it then because he didn’t do his research. I gave him all the information and all he had to do was read it and digest it, and he didn’t. That was his weakness. As a person, perfect. You’d almost give him a job just to have him around because he’s a nice guy. What was the story behind the Aston Martin you bought to restore? People have said I should have given him a commission because he bought it for less. Not being funny, I told him his maximum was 400 grand. He wanted four and a quarter, but I wasn’t going to pay that. He paid the max, but the programme missed that bit out. You’re going to tie up that money for 18 months, so you need to earn from it. I wouldn’t knock Darren for what he did there, because whether I would have got another five grand or ten grand back off the customer – and I’d like to think I would have done – but once he’d got to that level, he just folded, rather than try to nick another five. But he did it correctly and it was all done properly. Is business tough at your level? People think selling cars at this level is easy because all our customers have money hanging out of their back pocket. But it’s hard, really hard. Okay, we have our regular clients, but you’ve still got to give them good value, and they want more value at our end of the market than they do at the other end. At the other end, people say they need a car, that’s the price, I’ve already made my mind up and I’m buying it. They come here and we’re a completely different market. Has anyone tried to poach Louie? Since the programme people have made Louie offers, but he’s not going anywhere. No-one will give him as good a job as he’s got. He’s been with me a long time. But I think Dave may have to give Darren an extra tenner a car down there…
It was the auto world’s equivalent of the film Trading Places – take a salesman from a swanky London showroom dealing in supercars, and another from a pile-’em-high,
PICTURES: JONATHAN FLEETWOOD
the car paupers sell-’em-cheap lot, and let them swap jobs for a fortnight. That’s what the BBC programme Super Cars v Used Cars: The Trade Off did. We ask the two bosses and the two salesmen their thoughts…
THE salesman: Louie Levin Were you happy with the show? You’re always a little bit worried about how these things are going to come across, but from the feedback I have had from customers and clients, I think it came across rather well. Their reflection of the show was massively important otherwise it could be quite detrimental to the business had it come across in a negative manner, but I think they put the programme together very well. Did you see the programme before it aired? We saw it a few days before, but not for any editorial changes, just to view it. I was a bit nervous – it was okay. I was satisfied, I would say, when I saw it for myself. There were things left out that you’d rather had stayed in? Yes, definitely. And the other way around, as well. Bridgend was rather different to what you were used to… Yes, it was different, but it was all about getting your mindset right, and it was probably the same for Dave when he came here. My customers here want to know every detail – they don’t want to know about that car, they want to know about that specific car. In Bridgend that’s not so key, but we are programmed to do things one way, and I had to quickly realise you can’t do that. How do you think the motor industry as a whole came out of it? The main point I take from all of this is that all the people I know in the industry I spoke to afterwards said thank you for putting the industry in a good light. That came out really well, and it has been the same in a lot of the forums online too. Too many people put us in a box with double-glazing salesmen and estate agents, and maybe car salesmen are not as bad as some people think… Have you sold any cars on the back of the groundwork Darren put in? I think there was one customer Darren spoke
to that one of the other guys took over and has subsequently put him in a car. But how much influence Darren had with that, I don’t know. Would you do something like this again? No. You’ve done it once, and that’s it? Yes. Move on. Joe says you’ve had other job offers on the back of it? Yes, my Linked In has been melting off the chart. But I’m happy where I am. I’ve been here a long time. I didn’t really want to do the show in the first place, but Joe asked me to do it. He’s been good to me over the years, and I felt I owed him the favour back, so that was my rationale of doing it. I’m not about to jump ship. You’ve had a lot more people in the showroom though? I’ve been here until at least 9pm every day, getting through the emails and callbacks. It has been ridiculous. I’m working double days at the minute to try to get through it. I’m not complaining, you’ve got to do it. The programme seemed to suggest that you were having thoughts about your worklife balance, and spending more time with your family. Or was that just the way it was portrayed on the box? A bit of both, really. It did make me think about how much time I spend away from home, and I didn’t really appreciate that, because I do it day in and day out, until I saw Darren’s way of life. It’s only when you see it from a different perspective that it makes you think. And I do spend a lot of time away. But what I did say, and what they didn’t show, was that I am 32 years old and I’m young enough to do the hours and put the work in. That’s not going to be able to last for ever, to put those hours in, but while I can, I will do it. I know it’s not going to last. Did you manage to get a pay rise out of the boss? Ha, absolutely not! I’m still working on that one.
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FEATURE. TV SPECIAL: the characters behind the show THE BOSS: Dave Clancy, Compact Cars, Bridgend So, how was it for you? It was entertaining, wasn’t it, from an outsider’s perspective. I’m sure many people who aren’t interested in cars, and who watched the 60 minutes, enjoyed it immensely. Darren came across very well on screen, didn’t he? Darren is a very likeable, genuine guy. I’ve known him since he was 21, 22, and he’s been one of my best friends over the years. He’s an asset. Darren’s not like a traditional used-car salesman. I had one of those in today. He came in and told me where I was going wrong in life, and all that, and I spun him round 180 degrees and told him where he could go… So have any rivals tried to poach him? He has had job offers on the back of the programme. I didn’t have to give him a pay rise to keep
him. He and I have a good working relationship, and he doesn’t want to go anywhere. I’m no fool – I know how I came across in the programme with the salary and the commission and all of that. I’ve been in the business for 23 years, and I know what makes people tick, and how to reward people. It’s not quite as black and white as ‘this is what you’ll earn, and this is what you get’. Darren’s aware of that, we have a happy ship here. You’re a very different business than Joe Macari… The problem with pitching my business against Joe Macari was that I end up looking like the poor relation – and obviously I am because of where I sit in the motor trade – but there’s a market for everybody. The used-car market I’m in is hard work. There’s money in it, but it’s like mining, it takes a lot of work to get anything out of it. How did you find Louie? Louie’s a nice guy. He performed okay and he came across well. But he can’t be earning that much money because he lives so far away. If you work in the smoke and you’re earning big bucks, where do you buy a house? The programme very cleverly avoided that. Would you swap places with Joe Macari? I said to Darren afterwards, it’d be nice to have a job swap, for him and me to go up there, and Joe and Louie to come here. We could do that for eight weeks and I bet your bottom dollar that we would smash it. Up there they’re very easy going, they’re hoping things will happen one day – well, I’ve never been that way, that’s not how
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I operate. We could turn that place upside down. But you prefer Bridgend to London? When you’re in London it’s all about having the right contacts and you’re either going to make it big or you’re going to fail big. Joe’s an established player in the area and I have a lot of respect for him, and for what he does. I think Louie enjoys what he does, the glamour and all the nice things about it. What we do here is at the rough end. What has the public reaction been? We got a lot of trade on the back of it – it’s been madness. People are coming to buy vehicles because we have been on television. I think that, for the purposes of the programme, they wanted me to come across as driven and very focused and not particularly nice. That’s not the case, as anyone who knows me will know. They wanted Joe to be quite laid back and they wanted me to be ‘what the hell’s going on’. Here I’ve got every damn car in the world, and sometimes you’ve got to guide people. In some dealerships, customers come in and they already know what car they want. Here, they don’t. Here’s it’s all about problem solving. People come in with a problem, they have a specific need or desire, and as long as you listen to them the chances are you’ll have something in stock that will do the job. Did you see the show before it was screened? We went up on the Wednesday before it was screened to see the programme. We couldn’t change anything, not that I’d have wanted to – I’m not Robert bloody Redford, after all. I’ve got a face for radio and I know it. Has the programme been good for business? It has been huge for business – and I mean huge. The month after I could probably have employed another ten people and we’d have kept them busy. I normally get three or four finance proposals to work on in a day – the first day after the programme I had 110. All in all… It was an interesting time and an interesting programme. They say everyone should be famous for 60 seconds…
THE salesman: Darren Clough Were you happy with the show? Yes, very happy. There were a few things they could have put in which they didn’t, but I understand from the production team that the programme was a bit rushed out, because the BBC wanted it to be part of their ‘rich and powerful week’, or whatever they called it. But to be fair, I was really impressed with the way it came across. Anyone who knows me knows about me, and I didn’t put on any crap on for the TV. I thought they pushed the money side of things a bit – there was a scene with me and the wife in a restaurant and she said a commission on a sale could do this and do that. Of course it could, but at the end of the day it was never going to change my life. If the truth be told, off camera I did all the legwork for the sale of the 360 Modena, which I couldn’t sign off because I wasn’t there, and because the customer didn’t want to be on camera anyway. You enjoyed your time there? I thoroughly enjoyed it and Joe Macari has a fantastic place. But I tell people it’s no different to working here apart from the numbers and you’re working to a different figure. It’s team oriented and the boss is hands on, as Dave is here – if a car needs pushing, Dave is out there with the rest of us, it’s not a case of ‘I’m the boss, get stuck in’, we all get stuck in. And Joe Macari is very similar. I’ve known of him through his motorsport over the years, and it was a pleasure to go up there and meet the guy, and take a lot of knowledge from his experience of years and years of being around all these cars. He’s a top guy, a top guy. Would you fancy working in that environment full-time? I wouldn’t swap Bridgend for that, no. Hand on heart, I wouldn’t change anything, I honestly wouldn’t. That journey to work every day, I couldn’t handle that. I’d have no problem selling cars, I could do that, but I’m perfectly happy working where I am. Maybe it’s not financially beneficial, but it’s beneficial in lots of other ways, and I’m happy working in our little set-up here with a good team and providing a service for the local community, which we do. There are people here who rely on us for their transport because they can’t get a car from anywhere else. We’re not a charity, but we try to look after our clients.
You’ve had other offers of work since the programme? Yes, I’ve had a few people putting their fingers in the pie to see where I stand and if there’s any interest. If someone came along and offered me 60, 70 grand a year on a three-year contract, I’d go, but I’d be back here after three years because I know Dave would take me. Dave and I have a good relationship, and if someone came along and offered me massive money, he’d be the first person to say ‘off you go… but make sure you come back when the contract’s up.’ Were you surprised the basic pay for you and Louie was the same? I was a little bit shocked, but mainly because of the difference in the cost of living in the two places, and not the working environment. The work ethic and patterns in both places is exactly the same, but I thought the basic would be slightly higher there just because of where it was. There are other dealerships around here and we’re all on about the same basic, although sometimes the commission can be a bit higher, and sometimes a bit lower, some targets are more attainable than others, but across the board, most dealers are much of a muchness with the basic wage and commission structure.
been a positive reaction to it, and people seem to have liked the way I operate, with the family and all – and that’s 100 per cent true, I get up in the morning and see my grandson, have a cup of tea, get breakfast sorted, get a cup of tea for the missus, then off to work, and in the evenings I pick the boy up, go to the local gym with my younger son, then go home, have tea together, watch the TV, then off to bed… How do you think the industry as a whole came out of it? I think it was very positive. Car sales people are often seen as the scum of the earth, but in the programme we came across as genuine people trying to do a good deal. We’ve got to make a living, fair enough, but we have an interest in our clients, we’re not looking to just make a quid, we’re looking to make a quid and then in a couple of years make another quid because we’ve looked after them [CD].
Did you manage to get a pay rise out of the boss? No, I haven’t got a pay rise out of him yet. There are other benefits, like a couple of beers out of him now and again. But it has been good in other ways? We have had a massive increase in footfall, not always to look at cars or to buy cars, but just to come and see us. I haven’t signed any autographs…. What I was really pleased about was that I went to the bank this morning and the young lady there was very complimentary about the show, and a lot of other people have said the same. There has CarDealerMag.co.uk | 65
DASHBOARD.
Detroit’s super six You can’t beat a motor show to feast your eyes on some stunning metal. And Detroit didn’t disappoint – there was plenty to gaze at longingly and wish for that lottery win
Bentley Mulsane Speed
Hyundai Sonata Plug-in Hybrid
Infiniti Q60 Concept
As well as the colour – come on, admit it, it’s beautiful – this is one stunning piece of machinery. The 6¾-litre twin-turbo V8 sends it from a standing start to 60mph in under five seconds, and gives it a top speed of 190mph – oh, for the opportunity to do that on an open British road...
The manufacturer’s first plug-in hybrid electric vehicle. The Sonata PHEV is expected to deliver 93 MPGe combined in EV mode. Sonata PHEV’s Nu engine will produce 154 horsepower, with a total system output of 202 horsepower at 6,000 rpm. It’ll take five hours to charge using a domestic socket.
You’ve just got to like this... those sweeping good looks are heavenly, even if the official blurb – ‘the headlamp gives the coupe a hightech stare, with fine fibre-optics like the lines of the iris radiating from the pupil’ – was going ever-so-slightly over the top... A premium sports coupe, based on this, arrives next year.
Lexus GS F
Ford GT
Maserati Alfieri
A high-performance, 470bhp, 5.0-litre V8powered mean machine. But it’s a Marmite car – you’ll either love its looks, or think it’s got caught up in a fishing net... either way, it’ll get you noticed. And people will notice its speed, too – it’s been tested at the Nürburgring, no less, and it rockets...
The star of Detroit. Everything a supercar should be, and a price tag to match – likely to be around the £250,000 mark, if you’re interested. But you need to be quick – production will start next year, and it’s going to be pretty exclusive – maybe even fewer than 4,000. It’s a rival to Ferrari and McLaren...
Oooo, nice... it’s a concept car that’s even sportier than the current GranTurismo, and has gone down so well a coupe version will be introduced to the market next year, with a convertible to follow. It was created to celebrate the Maserati Centennial, and is the ultimate head-turner...
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trading up.
A case of Scooby blues... It hasn’t been the best of months as fundraiser ANDY ENTWISTLE tries to prepare our cars for sale
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hose who are following this feature will know that, by using our contacts around the industry, we’re buying, fixing and selling on cars in an attempt to raise enough to buy a super car, which will then be sold with the proceeds going to Great Ormond Street. Things took a turn for the worse before Christmas when, for one reason or another, all three of our stock vehicles found themselves in need of work which meant we couldn’t sell them. Things have progressed a little, but not much has improved. Firstly to our Land Rover. We have discovered the new head we got from Turners Engineering is cracked – but we have no idea how and where the damage was caused. The car is currently in parts at Harwoods, who have been really helpful. We’re hoping to get the head replaced, but as this is ongoing, I’ll cover this in full next month. So let’s move on to the Scooby. The car had lost power, so we put it into a local garage, who
identified, as we had suspected, the inlet hose was cracked. However, at the same time they noted the turbo was worn and strongly suggested we replaced it. We spoke to our friends at Subaru to try to locate a replacement, but sadly there aren’t any in the country. However, they suggested if we got this one refurbished they would be happy to contribute (they’re great guys at Subaru). Word got around that the Scooby was going to be up for sale, and the guys from Evo magazine contacted us – they were off to do the Monte Carlo rally and the car would be perfect. Chuffed that the Scooby was off for new adventures, we spoke to Midlands Turbo about getting our unit rebuilt, as Evo needed it quickly. This was turned around in three days and the local garage fitted the unit. We had the Scooby delivered to Nick with 24 hours to spare. Great news… or so I thought. Sadly, the following day at 4am, ten minutes after setting off, the Scooby
blew its head in a cloud of steam. The Evo boys got it to a local mechanic as soon as he opened, but the news was not good. Their grease monkey is fairly convinced the cooling system was filled with water and no coolant and, during the coldest night of the year, it froze, resulting in the engine failure. Now I know there was coolant in the car, and our local mechanic says they topped it up. Having waxed lyrical about the car, we felt terrible that it had let down the team from Evo and meant they missed the rally. We’ve also now got the Rover back from being tidied up. The power of the mag means I’ve already received two direct enquiries before even advertising it, so with a bit of luck we should have this one moved on soon – and hopefully with a nice bit of profit. That would be nice, as it looks as if we are going to take a real bath on the Landie, but more about that next month. In the meantime, has anyone got any good trade-ins? We’re looking for some stock to get us back on track and really need your help! If you’ve anything suitable, ping me an email at andy@blackballmedia.co.uk
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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Choose an Agency That is Focused on You Award Winning Customer Service
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EXCITING DEVELOPMENT
he first thing you see when you log on to the website of Bluesky Interactive, the specialists in car dealer web design and online marketing, is a pair of Car Dealer Power Awards. The trophies were collected by Marketing Manager Lauren Cooke at our ceremony last year and it’s clear they mean a lot to the company. After all, Car Dealer Power is when dealers themselves – the readers of this magazine – have a say about the best firms to do business with, so the Bluesky team were understandably delighted with their double success. They picked up the gongs for best web design for franchised dealers and the ‘extra mile’ award, given to a company that goes above and beyond the call of duty to provide excellent products and services to its clients. And when you talk to Cooke, it’s easy to see why the company is so popular. She explained: ‘We produce websites for independents, franchised dealers, multi-franchised dealers, all sorts of dealers really – everyone and anyone.’ The company uses cutting-edge technology to deliver great results. Its unique modular platform, Cog, means new features and technologies can quickly be added to any website, giving dealers a competitive edge and helping to make their websites more compelling and attractive. Cooke explained: ‘On top of the platform is a completely bespoke website design. We don’t use any templates, because we think that every single dealer’s needs are different. We can produce any sort of design around those needs. Obviously there are a few limits – but there are no templates. ‘One of the things that differentiates us in the market is that we’ll work with any third-party supplier. We’ve got a range of our own product modules that we’ve developed in-house but if a client has partnered with a particular finance provider, or wants to incorporate comments from a consumer feedback site, we can work with those.
One of the exciting developments coming from Bluesky Interactive this spring is a product called Autochart. Cooke explained: ‘What Autochart Leads does is enhance email enquiries with visitor information. Imagine for a moment that a visitor navigates to a dealer’s website, searches for finance, looks at three Focus models but in the end enquires about a Fiesta. This product tracks all of that. So when the customer inquires about the Fiesta, it will actually append all the information about that website activity to the email. The dealer will know what cars the ‘If a client thinks a particular product is good for them, then we’ll work with them. And if they’re new to us, we’ll put the effort in to integrate with them. We’re very flexible.’ So how did Bluesky Interactive come to be such an important player in the fields of web design and online marketing? Cooke said: ‘The company was founded in 2002. We have always worked exclusively with car dealers – that’s always been our niche. However, we have diversified into areas such as motorhomes and we are starting to work with manufacturers now. ‘We do everything within digital – digital marketing, email marketing, PPC – we operate effectively in all those areas, and web design is how it all began. Just as importantly, we do all that inhouse – preferring to use our expertise rather than outsource.’ As the Car Dealer Power trophies demonstrate, Bluesky Interactive has plenty of satisfied customers. Cooke told us: ‘We recently did some
Lauren Cook and Zoe Andrews from Bluesky Interactive with former Car Dealer editor James Batchelor at last year’s Car Dealer Power Awards customer actually looked at before enquiring. The aim is that the dealer can follow up on the enquiry appropriately and hopefully, upsell to the Focus on a really good finance deal. ‘It’s a very useful feature. It’s just finishing development now so anyone interested is more than welcome to get in touch and we can explain more about it.’ calculations and we have got 95 per cent client retention. It’s pretty impressive really. We’ve just had our fifth successive year of growth and although we are attracting more and more clients, that’s not resulting in a drop-off in our service levels. ‘We have got some clients who have been with us right from the beginning – and others who are brand new. It’s all positive really. ‘We’re a very straightforward company to do business with. We’re not flashy in any way. We have got really good products and really good technology but we don’t like to use over-complicated jargon. ‘We’re very straightforward, easy to understand and we’re honest. That’s why we’re so good at building long-term relationships with our clients.’ The Bluesky Interactive team recognise that the digital landscape can appear rather complicated. ‘Yes, there’s a lot to think about,’ said Cooke. ‘I think that’s what puts a lot of dealers off. There are so many decisions to make and so many options. The way we look at it is this: We ask, has the client got an objective? And from that, we work out the digital marketing combination that will help them achieve that objective in the best and most costeffective way possible. ‘That’s where digital marketing really comes in and, at Bluesky Interactive, we’re very good at reducing cost-per-click and making sure that everything is efficient.’ With a business approach like that, and hundreds of satisfied customers on their books, don’t be surprised if Bluesky Interactive add to their Car Dealer Power trophy haul this year! by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 71
focus on.
Vehicle Trading Group In my view Andrew Hubbard
Old-fashioned values; Vehicle Trading Group
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What is the main driving force behind Vehicle Trading Group? Listening to our dealers’ needs and providing solutions to their problems is something I take great pride in. We are here to provide a wealth of services, which are crammed into one simple package. Our team is growing bigger and stronger day-by-day and having specialists in each field is key to our business. We are a company that wants to listen to our customers and help them drive their sales forward. How does the business work? We have ten national sales people working in our office and we can be there for our dealers within 24 hours. Even if a dealer has bad credit history, it makes no difference. Banks go by credit score; we go by trust and relationships. Working in conjunction with the new FCA regulations, we treat each of our customers fairly and provide a long, sustainable service for all independent dealers. Our partnership with Trusted Car Buyers also enables us to provide a quality price to our dealers and one that is a fair price to our customers. Where is Vehicle Trading Group heading? With new headquarters situated just off of junction 21 of the M1 and many more new exciting development facilities in the pipeline, it’s no wonder Vehicle Trading Group has already grown to work with more than 200 dealers nationwide in such a short space of time. That figure will soon grow and we aim to work with 300 dealers by the end of 2015. Large investments keep our company secure and although it may sound like a difficult job, getting more dealers on board in the next 18 month isn’t going to be as challenging as it sounds. Dealers across the country are aware of the changing market place and are keen to find cost-effective, time-saving alternatives to sourcing and selling cars. Our dealers know they can trust us and that we’re only a telephone call away. Our group is what it says on the label: old-fashioned values, modernday thinking. ��| CarDealerMag.co.uk
ld-fashioned values, modern-day thinking: Vehicle Trading Group provides a fast and easy alternative to funding dealers and securing credit for customers, just a little ahead of schedule. This onestop shop for the motor trade also enables dealers to buy vehicles directly from the public, while cutting out the extra costs usually associated with auction houses. Vehicle Trading Group is the ideal bolt-on for independent dealers great and small and data reveals it could help you to sell up to 30 per cent more vehicles. John Voss had already spent most of his working life within the finance sector, having set up John Voss Finance Solutions in 2008. Supported by Andrew Hubbard’s strong business drive, their partnership saw them enter the motor trade with an aim to provide the ultimate dealer service – a one-stop swap-shop for dealers and buyers. John Voss Finance Solutions was consolidated with Vehicle Stocking Ltd, which launched in 2009, and Vehicle Credit Ltd, which came three years later in 2012, to form Vehicle Trading Group. Vehicle Stocking was founded in 2009 by Hubbard and Voss. Making the everyday lives of motor dealers easier has been the duo’s passion from day one, when they looked deeply into the sector and designed a business that would eliminate all the hassle dealers have to face on a daily basis. Offering services including Stocking, Credit and Guard, among many other tools, that would help dealers to set up, finance and sell their cars has given the company many platforms on which to grow. Their goal has been to revolutionise dealer facilities, providing the motor trade with the
‘‘
ultimate ‘buying and selling’ package. They swooped in to salvage the areas that greater institutions neglected, not only providing finance and a trustworthy ear for dealers, but also creating a sustainable environment for dealers to buy quality vehicles at the right price with the support to sell them with market-leading consumer finance and peace-of-mind warranties. Each of these attributes gives Vehicle Trading Group’s dealers great credibility in the market place and the ability to grow and develop their businesses. In 2014, the company also acquired the carbuying platform Trusted Car Buyers to provide their dealer network with pre-inspected cars. Trusted Car Buyers simply takes a link out of the chain, allowing dealers to buy cars without any indemnity fees direct from the public, which in turn is delivered straight to their forecourt for assessment. Trusted Car Buyers enables the group to supply its dealer network with quality vehicles, that come with a guaranteed quality price, which is also fair to the seller. Vehicle Trading Group formed as a result of Voss and Hubbard noticing a gap in the motor trade sector, which banks and finance providers failed to resolve. What they provide today is a solution to day-to-day dealer cash flow, which comes with a range of financial benefits and services for dealers and buyers. Since the company was founded five years ago, it has grown into a £40m business and is set to expand further in the next 18 months. While maintaining old-fashioned values of trading, Vehicle Trading Group is the future platform for buying and selling used cars. by Sophie Williamson-Stothert (@1Sophie_W)
It’s all about trust and our dealers have confidence in our services. Our dealers know they can trust us and that we’re only a telephone call away.
modern-day thinking xcxcxcx
In my view John Voss
W: vehicle-group.com T: 0116 271 6737
What is Vehicle Trading Group’s main goal? Our goal has always been to provide garages with a quick and easy stocking option and to have someone who understands each individual dealer’s needs at the other end of the telephone. Our company has grown and adapted to the ever-evolving motor trade industry, providing answers as to how we can best help and support our dealers. Why are your services so important to dealers? They are all important in their own right. By securing credit for dealers’ customers, we understand that maximising potential car sales is vital in the day-to-day running of any dealership, whether it be prime, near-prime or subprime. We currently write 250 new-car finance deals every month – that equates to lending our customers approximately £2m every month - but we aim to increase that to 500 cars by the end of 2015. Having one company at the end of the telephone to help with dealers’ enquiries is quick, easy and cost effective and helps us to build a good working relationship with our dealers. It’s all about trust and our dealers have confidence in our services. We also provide our dealers with our 24-month warranty service Guard, which is another great add-on to help sell more cars. In some cases, our warranties have helped dealers to increase sales by 50 per cent, increasing overall turnover and profit – our dealers tend to find they soon run out of stock on the forecourt!” How many dealers do you currently work with? Focusing on Vehicle Stocking, we currently provide finance to 200 dealers across the UK, but we aim to see this figure grow to 300 in the next 12 to 18 months. We were one of the first companies to actually pay the supplier for the car to help aid dealer cash flow. Unlike others brokers, we enable the dealer to settle up with us once they’ve sold the car. CarDealerMag.co.uk | 73
focus on.
Vehicle Trading Group
Trusted Car Buyers – Supply: Trusted Car Buyers is Vehicle Trading Group’s latest acquisition. The ethos behind this partnership is simple: to supply the group’s dealer network with quality vehicles, that come with a guaranteed quality price, direct to their door. Dealers can then drive, appraise and assign the purchase directly to their stocking facility. This tool ultimately removes a link in the very long chain of buying and selling cars. With two of the UK’s major auction houses acquiring online car buyers in the past 12 months, it was a natural progression for the group to acquire such a significant tool, enabling its dealers to cut out the middle men and source stock directly from the public.
How it works:
Vehicle Credit – Secure: Founded after the group’s success in dealer lending, Vehicle Credit forms a cornerstone of the group, specialising in subprime finance. The aim is, and always has been, to treat customers fairly. This unique finance product, coupled with a vehicle tracker, is guaranteed to help drive sales in cases where other lenders have declined. In a market where reports show 60 per cent of UK companies require a non-standard solution, Vehicle Trading Group can offer all its dealers a fast proposal turnaround with efficient underwriting. Vehicle Credit is designed to save dealers’ time, while also increasing profits, taking care of all finance proposals whether they be prime, near prime or subprime and in most cases incorporating better rates than direct accounts.
��| CarDealerMag.co.uk
Vehicle Trading Group is fast becoming a household name, set to revolutionise the way dealers run their businesses. Signing up to the system is just as simple as the services it offers. Usually, it starts with a telephone call to the Vehicle Trading Group head office, which is then followed by a site visit from a member of the group’s sales team. Vehicle Trading Group says the ideal dealership will possess qualities such as VAT registration, full site insurance and hold a consumer credit licence for a sustainable sales pitch.
To sign up with Vehicle Trading Group, call Andy Smith
Vehicle Guard – Protect: Vehicle Guard has become an asset to the company and its dealers. First introduced in 2013, data reveals Vehicle Guard has the ability to increase dealer sales by up to 30 per cent and in some cases, turn businesses around from a loss to make profit. The power of offering a 24-month warranty with every vehicle – no matter what its age or mileage – allows Vehicle Trading Group’s dealers to stand out from crowd. Vehicle Guard gives consumers the trust and confidence they require to make a purchase from the dealer, while also giving our dealers the credibility they need to grow in the marketplace.
the next step Once the team has visited the dealership, Vehicle Trading Group will take the next step in ensuring the partnership can take place. Documents will be sent to the dealer, which unlike many financial facility agreements in the marketplace, are transparent and simple. Once the dealer, in their own time, is satisfied with the agreements, Vehicle Trading Group will arrange for the dealer to visit the group’s head offices in Leicester in to finalise the their account and partnership. The process couldn’t be simpler.
Vehicle Stocking – Fund: Vehicle Stocking is seen as the gateway brand that came to life in 2009. This service is a key tool for the dealer network, combining traditional methods with modern-day technology to allow dealers to increase profitability through additional stock levels. Starting with just a handful of 200 dealers, Vehicle Trading Group soon realised there was an empty spot in the market for a company, which lends the old-fashioned way but with the ever-changing market in mind. Every vehicle is stocked for 120 days and is 100 per cent CAP Clean funded. In the past five years, the group has funded 200,000 cars. [CD]
on 07523 240870 or email: Andrew.smith@vehicle-group.com CarDealerMag.co.uk | 75
DATA FILE.
Thestatistics n
SMMT Sales Data
n
Taking Stock
Quick out of the blocks, 2015 gets off to a good start Strongest January showing since 2007 as more than 160,000 cars registered
T
he first new-car registration figures of 2015 are in – and they show a total of 164,856 cars were registered during January. As usual, the figure was released by the SMMT and represented a 6.7 per cent rise in the number of registrations – and the strongest January performance since 2007. The stats also showed the record growth period for the whole market is continuing – January marked the 35th consecutive month of rises. Mike Hawes, SMMT chief executive, said: ‘These figures mark an encouraging start to the year after a very strong 2014, with a strikingly robust company car market as businesses take advantage of the attractive finance offers. ‘January saw increased uptake of both petrol and diesel cars, while demand for alternatively-fuelled vehicles continued its surge with registrations rising by 60.8 per cent. ‘Registrations of plug-in vehicles were particularly strong as consumers responded to a greater choice of makes
and models delivering significantly lower running costs. ‘Last year’s 9.3 per cent rise in the overall market was fuelled by strongerthan-expected economic confidence and, for 2015, we expect to see some levelling-off throughout the year: demand is back to pre-recession levels following record-breaking growth.’ As Hawes indicated, the figures revealed particularly strong growth in the area of company car registrations, up 18.1 per cent on January 2014. And in fact, fleet registrations have been increasing consistently since 2012 as UK business confidence has bounced back since the recession. Just 882,415
cars were registered to fleets in 2009; this grew to 1,178,416 in 2014. Turning back to the retail market, the top-ten best-sellers in the UK for January were the Ford Fiesta (8,674); Vauxhall Corsa (6,879); Ford Focus (4,824); Nissan Qashqai (4,676); Volkswagen Golf (4,387); Audi A3 (3,648); Mercedes-Benz C-Class (3,534); Volkswagen Polo (3,517); Fiat 500 (3,145); and the Vauxhall Astra (2,996). Richard Lowe, head of retail and wholesale at Barclays, said: ‘2015 has been quick out of the starting blocks, with many consumers treating themselves to a new car to mark the arrival of a new year. ‘The surge in company car registrations is also very encouraging.’ John Leech, KPMG’s UK head of automotive, said: ‘Attractive finance offers from car manufacturers and rising consumer confidence continues to power the UK new car market. ‘Consumers are seeking the latest fuel-efficient vehicles as the cost of motoring remains high, despite a fall in the oil price.’
Still on top of the pile, Blue Oval’s in good shape FORD was the clear leader in total vehicle, car and CV sales in January as it began its 39th consecutive year of UK car sales leadership. In addition, the Blue Oval is on track to complete 50 consecutive years of UK CV sales leadership. According to the SMMT’s official sales figures, Ford led UK overall car and CV ��| CarDealerMag.co.uk
sales in January with Fiesta leading sales in its seventh successive year as the UK best seller. In fact, Fiesta sales exceed the total sales of all but five rival car makers. Mark Ovenden, Ford of Britain chairman and MD, said: ‘Ford’s strong sales start to 2015 builds on the momentum sustained through 2014
and is a direct result of the continued investment in exciting products and industry-leading technologies. ‘Following the complete revamp of our commercial vehicle range last year, we will renew around 60 per cent of our passenger cars this year, including the new Focus ST, C-MAX, S-MAX, Mustang and Vignale models.’
SMMT sales data Jan/year to date
5
Top
Most-improved manufacturers in January
Mitsubishi +159% Maserati
+82%
Jeep
+67%
Abarth
+60%
Lexus
+50%
5
Bottom
Worst-performing manufacturers in January Chevrolet
-100%
Mia
-100%
Perodua
-100%
Proton
-100%
Chrysler
-50%
MAZDA +19.20%
SMART -33.33% 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
Jan 2015
2014
133 236 45 11,354 129 8,008 0 57 5,414 1,620 4,184 21,480 3,609 5,794 61 800 336 4,914 4,303 1,006 13 115 3,340 9,348 135 0 2,243 1,808 11,076 0 7,171 630 0 3,016 0 4,137 5,116 192 121 166 1,897 6,711 16,935 13,993 3,009 49 152 164,856
% market share 0.08 0.14 0.03 6.89 0.08 4.86 0.00 0.03 3.28 0.98 2.54 13.03 2.19 3.51 0.04 0.49 0.20 2.98 2.61 0.61 0.01 0.07 2.03 5.67 0.08 0.00 1.36 1.10 6.72 0.00 4.35 0.38 0.00 1.83 0.00 2.51 3.10 0.12 0.07 0.10 1.15 4.07 10.27 8.49 1.83 0.03 0.09
Jan 2014
2013
83 297 50 10,747 155 7,923 697 115 5,471 1,373 4,223 21,792 3,206 5,064 66 1,093 201 4,695 4,384 670 16 63 2,802 7,792 138 5 2,019 698 8,799 8 7,611 519 1 2,830 0 3,664 5,059 288 94 128 1,849 6,173 14,892 14,436 2,251 68 54 154,562
% market share 0.05 0.19 0.03 6.95 0.10 5.13 0.45 0.07 3.54 0.89 2.73 14.10 2.07 3.28 0.04 0.71 0.13 3.04 2.84 0.43 0.01 0.04 1.81 5.04 0.09 0.00 1.31 0.45 5.69 0.01 4.92 0.34 0.00 1.83 0.00 2.37 3.27 0.19 0.06 0.08 1.20 3.99 9.63 9.34 1.46 0.04 0.03
% change 60.24 -20.54 -10.00 5.65 -16.77 1.07 -100.00 -50.43 -1.04 17.99 -0.92 -1.43 12.57 14.42 -7.58 -26.81 67.16 4.66 -1.85 50.15 -18.75 82.54 19.20 19.97 -2.17 -100.00 11.09 159.03 25.88 -100.00 -5.78 21.39 -100.00 6.57 0.00 12.91 1.13 -33.33 28.72 29.69 2.60 8.72 13.72 -3.07 33.67 -27.94 181.48 6.66
2014 133 236 45 11,354 129 8,008 0 57 5,414 1,620 4,184 21,480 3,609 5,794 61 800 336 4,914 4,303 1,006 13 115 3,340 9,348 135 0 2,243 1,808 11,076 0 7,171 630 0 3,016 0 4,137 5,116 192 121 166 1,897 6,711 16,935 13,993 3,009 49 152 164,856
Year-to-date (YTD) % market share 0.08 0.14 0.03 6.89 0.08 4.86 0.00 0.03 3.28 0.98 2.54 13.03 2.19 3.51 0.04 0.49 0.20 2.98 2.61 0.61 0.01 0.07 2.03 5.67 0.08 0.00 1.36 1.10 6.72 0.00 4.35 0.38 0.00 1.83 0.00 2.51 3.10 0.12 0.07 0.10 1.15 4.07 10.27 8.49 1.83 0.03 0.09
2013
83 297 50 10,747 155 7,923 697 115 5,471 1,373 4,223 21,792 3,206 5,064 66 1,093 201 4,695 4,384 670 16 63 2,802 7,792 138 5 2,019 698 8,799 8 7,611 519 1 2,830 0 3,664 5,059 288 94 128 1,849 6,173 14,892 14,436 2,251 68 54 154,562
% market share 0.05 0.19 0.03 6.95 0.10 5.13 0.45 0.07 3.54 0.89 2.73 14.10 2.07 3.28 0.04 0.71 0.13 3.04 2.84 0.43 0.01 0.04 1.81 5.04 0.09 0.00 1.31 0.45 5.69 0.01 4.92 0.34 0.00 1.83 0.00 2.37 3.27 0.19 0.06 0.08 1.20 3.99 9.63 9.34 1.46 0.04 0.03
% change 60.24 -20.54 -10.00 5.65 -16.77 1.07 -100.00 -50.43 -1.04 17.99 -0.92 -1.43 12.57 14.42 -7.58 -26.81 67.16 4.66 -1.85 50.15 -18.75 82.54 19.20 19.97 -2.17 -100.00 11.09 159.03 25.88 -100.00 -5.78 21.39 -100.00 6.57 0.00 12.91 1.13 -33.33 28.72 29.69 2.60 8.72 13.72 -3.07 33.67 -27.94 181.48 6.66
CarDealerMag.co.uk | 77
TAKING STOCK. Remarketing specialist BCA reflects on the events of 2014 and looks ahead to 2015, a general election year . . .
Relative shortage of stock has helped keep values high We have seen strong new and used-car markets lately, but there may be worrying times ahead, says Simon Henstock, BCA’s UK network operations director
A
verage used-car values continue to climb in the wholesale sector, according to the latest full-year figures from the BCA Pulse report. Across the board, the average value of a used car sold at BCA in 2014 was £7,622, a rise of £566 compared to 2013. It is the highest annual figure on record at BCA. Over the past five years, average values have consistently risen year-on-year, by 1.3 per cent in 2011; 4.7 per cent in 2012; 13.8 per cent in 2013 and 8.0 per cent in 2014. In terms of the used-car market, the relative shortage of stock – a result of low new-car sales over several years following the onset of recession – has helped keep values high. However, new-car volumes improved notably in 2013 and 2014. Demand in the wholesale sector is ultimately driven by the needs of motorists. Rising confidence and the feel-good factor are important to consumers and notably more so when purchasing big-ticket items. An improving jobs market, a stable economy, historically low interest rates and low inflation have given people in work the confidence to make those bigger purchasing decisions and we have seen strong new- and used-car markets over the past two years. While we have that feel-good factor and well-balanced supply and demand, we can expect wholesale values to remain relatively strong. However, we may see some changing dynamics on the supply side as rising numbers of nearlynew cars and returning PCP volumes add to the mix of fleet/lease vehicles and dealer partexchange cars. Adding to the interest in 2015, we have a general election. These are a fact of life and it is impossible to gauge the effect the ensuing result may have on the wider economy. History tells us there can be some initial uncertainty in the marketplace whoever prevails,
‘Rising confidence and the feel-good factor are important to consumers.’ but this soon settles down and before long it is business as usual. What might be more worrying is if there is no clear-cut decision from the electorate and we end up with a hung parliament. This means sellers should take nothing for granted and stay close to the market in the months following, working closely with their remarketing supplier to ensure their vehicles are properly appraised and valued to reflect both the condition and grade, as well as prepared and presented to a high standard to attract wholesale buyers. Average age and mileage declined during 2014 for the second year running, reversing the trend that was seen at the start of the decade. Performance against CAP Clean was marginally higher compared to 2013 and was the highest average annual figure recorded in the past five years.
Values in the nearly-new sector up by
£1,248
��| CarDealerMag.co.uk
Tracking monthly values, 2014 clearly outperformed 2013 in every month. Average values rose across the board during 2014, with corporate fleet stock, dealer part-exchange cars and nearly new vehicles all showing substantial value increases compared to 2013. Fleet and lease values improved by £566 to £9,455, a rise of 6.3 per cent, with age remaining static at just under 40 months and average mileage increasing by around 1,000 miles to 46,700. Performance against CAP Clean fell slightly to average 96.55 per cent across the year. Average sale price compared to original cost new improved slightly to 42.39 per cent in 2014, from 42.13 per cent the previous year Dealer part-exchange values rose by £309, an 8.3 per cent improvement over values recorded in 2013. Average age at time of sale for dealer partexchange vehicles increased by a month to 88.5 months, although mileage fell back by 1,000 miles to 71,500. Average performance against CAP Clean improved marginally to 95.5 per cent. Values in the low-volume nearly-new sector rose by £1,248 (6.1 per cent), year-on-year. Make and model have a significant effect in this sector.
Average value of a used car sold at BCA
£7,622
Buyers’ guide
Ford Fiesta Trying to find the best stock for your forecourt? We take a closer look at the ‘perfect car’...
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s a dealer, stocking the Ford Fiesta is the closest thing you’ll get to the perfect car. There are plenty to choose from and a wide variety of engines and trim levels, which means they have a wide and varied following. However, don’t assume the volume of them lying around means they are dull and a bit bland. They have arguably one of the best chassis in the class and the equipment levels are far better than many realise. Launched in September 2008, the seventhgeneration Fiesta arrived with a 1.25, 1.4 or 1.6-litre petrol engine or a 1.4 or 1.6 diesel carried over from the Mk6. There were three- or five-door versions from the start in Studio, Style, Style+, Zetec, Zetec S and Titanium trim levels. The body style remained largely unchanged until February 2013 when the range underwent a facelift, specifically noted at the front end. However, with the facelift came the 1.0 Ecoboost three-cylinder engine, without doubt the pick of the range. Whether you go for three doors or five is down to customer preference, but it’s best to keep away from base-spec five doors. Three doors are best in either base spec for a cheap runner, or top spec for a sporty ride. The 1.25 engine is popular for younger drivers as insurance premiums are at least palatable, even if they’re not cheap. You’ll pay a premium for a diesel, but small diesel hatchbacks are always popular and won’t stick around long.
A five-star Euro NCAP rating and the use of an Intelligent Protection System ensures the car is at the top of the list in the sector. This is particularly important when parents are looking to buy their offspring their first chariot, which is a strong selling point for any dealer. The Fiesta comes with safety kit that only a few years ago was found only in top-line exec cars, with driver and passenger front airbags, driver’s knee airbag and side airbags too. As standard, Ford also fitted Isofix child seat mountings in the rear and antilock brakes. As you would expect, running costs are another Fiesta strong point. All versions have to be serviced every year or 12,500 miles and while the diesel engines are chain-driven, the petrol units have a timing belt which needs to be replaced every eight years or 100,000 miles.
can take hours and a lot more patience than most have. Windscreen washers can pack in when the under-bonnet hose gets trapped within the bonnet hinge, preventing the washer fluid from flowing. Check the floor carpet for dampness, as door seals can come away from the door frame, leading to wind noise at speed as well as water leaks into the cabin. Fuel filler flaps can stick shut, making refuelling difficult. Greasing the seal will normally resolve this issue. There are reports of creaking coming from the front of the car. Many people think this is the steering column, but it is actually noise from the rubber in the front suspension strut top mountings, which will need to be replaced.
What to look for
Best buy
Diesel Fiestas can suffer from hesitation at low speeds, making quick getaways from junctions tricky. It’s also important to check diesels for a juddering clutch – even some low-mileage models may need a new clutch if the previous owner has ridden it. This is not a cheap job because of the dual mass flywheel, so factor this in when assessing a vehicle’s value. The interior trim is renowned for creaking and rattling. There are no specific areas that can be highlighted and resolving these creaks
For post-2013 facelift cars, there are two stand-out models – the 1.0 Ecoboost in Zetec form and the three-door ST, which is rated the best hot hatch in its class by some margin. For pre-facelift cars, consider the 1.25 Style. Diesel models will always sell well, the 1.6 being the pick of the two. By Andy Entwistle (@CarDealerAndy)
CLUTCH
They are renowned for suffering from a juddering clutch – even on some lowmileage examples. And the only answer is replacement...
CarDealerMag.co.uk | 79
auctions.
Prince catches up with latest developments at Nissan plant. bit.ly/nissan-update
Appointment of new specialist underlines importance of digital Manheim delighted to secure services of experienced Flesher
‘Digital is changing everything we do and our industry is increasingly being defined by the accelerated pace of technological change. Customers are constantly developing the way they access our services so it’s important we evolve to match this. ‘Our challenge for the future is simple. We want to provide our customers with a greater amount of choice, allowing us to utilise our channels in the way our customers want to use them. ‘We also recognise the importance of making the best use of our data to ensure the consumer experience is seamless, relevant and personalised. ‘Above all else, we want to make digital the enabler that brings physical and online worlds together.’
It’s win-win this year for auction houses Shoreham Vehicle Auctions is predicting that whatever happens to the UK economy and new-van market in 2015, the used market will remain in a ‘win-win’ position. If the economy slows down and companies start to feel the pinch, the majority of SMEs who buy the majority of used vans in the UK who need a replacement vehicle will buy a model of
five years of age and older. This will cause a strong demand for used vans and prices are likely to remain at their current record highs. If the economy continues to grow, the SMEs will look to upgrade their vehicles with newer sub-five-year-old vans and potentially will buy more than one to meet the increased demand for their products.
BCA celebrates 20 years at the top of the tree BCA notched up an impressive 20th win in the ‘remarketing’ category at this year’s Business Car Awards, which were announced in London in January. The award is voted for by the readers of BusinessCar – a publication for the fleet, leasing and company car sector. ‘BCA has again secured top spot with our readers thanks to the company’s range of remarketing solutions that strive to consistently deliver the best residual values and highest conversion ��| CarDealerMag.co.uk
auction stations
At last, we should see a glut of quality cars
H
M
anheim has appointed specialist David Flesher into the new role of head of digital marketing, where he will look to expand the leading automotive retail and remarketing organisation’s digital capability. His appointment underlines Manheim’s continuing focus on the importance of digital in the future of the business. Before joining Manheim, Flesher worked at Aviva plc for eight years, with roles covering digital sales channel optimisation, digital strategy, brand and digital proposition development. Working in the marketing team, Flesher will spearhead the shaping and defining of Manheim’s digital transformation, helping to deliver a clear, customer-focused digital strategy that underpins the organisation’s business goals. Flesher said: ‘I am absolutely delighted to be joining a brand as strong and trusted as Manheim, which is so committed to its customers, to innovation and to becoming a leading digital business.
Henstock
for sellers,’ said BusinessCar editor Paul Barker. ‘The market-leading remarketing company has once more proven that being the dominant force in the marketplace doesn’t come at the expense of customer experience.’ BCA managing director Spencer Lock said: ‘We are delighted that BCA has retained the Business Car remarketing award for the 20th time and we are proud our customers support us in these prestigious annual awards.’
ave we seen the end of the shortage of goodquality, ready-to-retail used cars? Volumes began to rise towards the end of 2014, but not as fast as some commentators had expected. Average values held up strongly as they had all year and bidding remained very competitive. However, with new-car registrations returning to pre-recession levels, most commentators believe used-car volumes will continue to rise in the months ahead. With greater choice for buyers in the marketplace, how will this affect the wholesale sector? What we have seen is the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less-attractive or overvalued cars struggle to attract bids. In reality, sourcing the best-quality vehicles continues to be a major concern for used-car dealers and if the economy continues to improve, increasing retail demand could mean there is even more competition for stock in the remarketing sector. The flipside of this is what happens to those less-attractive cars – perhaps in poor colours, with a high mileage, or requiring paintwork and repairs? In a nutshell, these cars need to be valued realistically to sell, reflecting their condition and grade. If unattractive cars 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 difficult to remarket. And, of course, the new plate on March 1 is only weeks away, bringing additional volumes of fresh stock from fleet, lease and dealer sources to the wholesale sector. Sourcing and securing those best-quality retail cars will be critical for professional buyers in the weeks ahead and buying the right stock at a good price and in a timely fashion is crucial. On the flipside, managing the part-exchange line is equally important and can become a distraction if the sales team are pulled into nitty-gritty negotiations on the swapper rather than using their retailing skills. BCA’s Dealer-Pro service helps at this busy time by streamlining the processing of part-exchange appraisals and valuations, identifying which vehicles should be remarketed or retained for retail. All non-retail part-exchange cars will be consigned to BCA for immediate remarketing, while the dealer group functionality means more cars will be identified and retained for profitable retail sales, rather than being traded. All in all, it’s win-win!
‘Buying the right stock at a good price and in a timely fashion is crucial.’
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
focus on.
Auctions
£3,000,000 ...that’s the value of the vehicles sold at the first auction at Rockingham city auction group
MULTI VENDOR AUCTION EVENT
Thursday 5th March 2015 at 10am 500 CORPORATE VEHICLES
W: cityauctiongroup.com
C
ity Auction Group reports its inaugural auction at Rockingham was a huge success, achieving total vehicle sales of £3m – and with an average fleet price of £8,000 per vehicle. More than 100 franchised and independent dealers attended the auction on February 5. City Auction Group figures show 80 per cent of the vehicles were bought by dealers in attendance, while 20 per cent were purchased via the firm’s smartphone app, Eighty per cent of vehicles achieved in excess of 90 per cent of CAP, while 20 per cent of vehicles achieved more than 94 per cent. More than 400 vehicles were sold on behalf of 25 corporate vendors including Lex Autolease,
Semalease, Peugeot & Citroen Financial Services, Avis and Budget and many more. The physical auction was supported by an IOS/Android live bid and an auction app for smart phones and tablet devices. A dedicated soft-seated live-bid lounge was also used for the first time. Michael Tomalin, the managing director of City Auction Group, said: ‘We are delighted with the success of our first auction of the new supercentre at Rockingham. ‘We have received fantastic feedback from dealers and vendors, who have been deeply impressed with our new operation in the UK.’ The next auction event is on Thursday, March 5 at 10am. [CD]
‘‘
We have received fantastic feedback from dealers and vendors, who have been deeply impressed
25 CORPORATE VENDORS
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
Mitchell Road, Corby, Northants NN17 5AF
For details telephone 01536 270280
01536 270280
www.cityauctiongroup.com
CarDealerMag.co.uk | 81
TRADER TALK.
..in association with AutoTrader
Marketing starts with mobile optimisation Ignore the rise of the tablet and smartphone and you’ll fall behind, says Nick King
U
S technology giant Apple reported in January the biggest quarterly profit ever made by a public company. And record sales of iPhones were behind the success story. Most analysts had forecast a strong quarter for the company, but few expected sales to top 70 million units. In fact, 74.5 million found new homes in the three months to December 27, which is more phones sold worldwide than there are people in the UK. Search data from Auto Trader confirms what many of us instinctively know from the growth of smartphone and tablet ownership in our own homes. For shopping, research and mobile communications, mobiles are now the default choice, and two thirds of visitors to Auto Trader now make the journey without sitting at a PC or turning on a laptop. The rise of mobile Today, multi-screening is the norm in households up and down the country, with the hours between 6pm and 9pm being the most popular for searches. Yet 60 per cent will quickly leave a site if they have a bad mobile or tablet experience. This should serve as a rallying cry for the first quarter of 2015 because the reality is that mobile optimisation is no longer a choice. Those who ignore the inexorable rise of the tablet and smartphone risk being left behind. Help buyers linger The starting point for every business must be a site that works well on all devices that consumers are using to search. But that in itself is not enough. Consumers are far more demanding in their expectations and have little patience for sites that fail to deliver the goods. Speed of content delivery, easy-to-read and simple-to-navigate are the principles that encourage buyers to linger, rather than leave. For car dealers, key information such as location address must also be prominently displayed. Half of buyers now walk straight into a dealership without first having contacted the dealer, so making a physical forecourt easy to find online is imperative to help convert an online browser into a showroom visitor.
Who is Nick King?
Hone the strategy Many dealers – including independents – are ahead of the game, having recognised the need for mobile optimisation and complementary marketing strategies that help maximise the potential of their digital forecourts. The best are enjoying increased leads, sales and profits as a result. However, there are still many that have yet to transition fully to a fully mobile marketing mindset. Simple steps can easily be taken to boost profile in an increasingly crowded online marketplace. Search Engine Optimisation (SEO) for example, should be a priority. PPC is another string to any marketing bow, helping drive leads, and ultimately forecourt visitors. Biggest quarter is now Each year search activity on Auto Trader peaks
during the first quarter of the year, so this is the perfect time for an audit. Strengthening the marketing pillar that supports overall business goals should be the aim – and mobile optimisation should be the first thing to fall under the spotlight. But any audit can – and should – go further, for example in looking at ways to build trust among potential customers. Consign practice like blanking out registrations to the past, as this engenders suspicion in the buyer. For the same reason, make sure images are always of the car for sale, rather than a look-a-like. A well-run social media presence can provide a further boost. Two in three are more likely to buy a car if there are positive comments about the dealer on social media and nearly six in ten say their opinion of a dealer improves if negative comments on sites like Facebook are addressed promptly and professionally.
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
A solid start to the year on the back of positive announcements Share prices have performed well recently, albeit on modest volumes, says Mike Jones
W
e have seen a solid start to the year with recent positive announcements driving share prices higher. This month saw trading updates at both Pendragon and Cambria Automobiles, both of which saw an increase in share price. The market also learned the identity of the new chief executive officer at Inchcape, with Stefan Bomhard due to take up his post from April 1. Share prices performed well over the month as a whole, albeit on relatively modest volumes. Both Pendragon and Cambria saw positive movements on the back of recent trading announcements, with Lookers showing a strong and steady climb to a closing value of 149.75p per share, the highest since April 2014. The softening in the Inchcape share price is not totally unexpected, given that it closed the year at an all-time high. It will be interesting to see how the market reacts to the preliminary announcements as they begin to be issued over the coming months. Financial performance Pendragon delivered a positive trading statement at the turn of the year, noting that full-year results are expected to be ahead of expectations. Strong performance in used cars was highlighted, together with an 18.8 per cent increase in website
Share price movement from January 1-31, 2015
Share price movement from January 1 to December 31, 2014
Pendragon
109.2%
94.89%
Vertu
93.2%
99.58%
Lookers
115.2%
105.91%
Inchcape
96.1%
117.98%
Cambria
105.3%
94%
Caffyns
101.8%
102.78%
traffic in the fourth quarter, and even higher visits post-Christmas. Activity on tablet and mobile devices was up 65 per cent, demonstrating that players with a strong on-line presence with good functionality are increasingly gaining traction. There are now 38 ‘Sell Your Car’ retail points operating in the UK in competition with ‘webuyanycar.com’, and this ability to source cars directly from consumers may be contributing to the overall positive performances on used cars. The trading statement also highlighted the purchase of leasehold dealership properties for £12.9 million, which will reduce the annual rent roll by some £1.3 million.
Cambria announced a trading performance for the first four months of the year (August year-end) substantially ahead of the prior year and highlighted strong profit improvement in absolute terms and on a like-for-like basis. Sales of new vehicles were up 11.9 per cent on a like-for-like basis, ahead of an 8.2 per cent growth in the UK new car market. Used volumes were flat on a like-for-like basis, but up 1.8 per cent in total compared to the previous year, with gross profit per unit also increasing. Aftersales also grew, with profitability 10.7 per cent higher than the previous year and up three per cent like-for-like. The performance of the Barnet Jaguar Land Rover dealership acquired in July 2014 was noted to be in line with expectations. Transactional activity No major acquisitions were noted in the period, however, Pendragon announced that King Arthur Holdings Sarl, a company in which it has a five per cent investment, sold its only subsidiary, King Arthur Properties Sarl, which acted as the landlord to 73 properties operated by Pendragon, as car dealerships. Pendragon expects to receive approximately £24m in respect of its original £10 million investment, generating an estimated nonrecurring profit of £14 million, with the proceeds being used to reduce debt. The investment had been returning an underlying dividend income of circa £1.1 million. It was announced recently in the trade press that Vantage Motor Group had acquired the Stratstone Honda site in Bradford from Pendragon and plan to re-brand the site as ‘Vantage Honda – Bradford’. Board composition and activity / Directors’ holdings The long-awaited announcement as to the successor to Andre Lacroix as chief executive officer of Inchcape plc was finally concluded, with Stefan Bomhard taking up the post from April 1, 2015. Inchcape have continued their tried and tested formula of appointing a chief executive outside of the sector, with Mr Bomhard having experience previously with Bacardi, Cadbury, Diageo, Unilever and Proctor & Gamble. Lookers plc announced the retirement of John Brown as non-executive director.
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 | 83
data file.
James Litton
Trader tales
What awaits us after the general election?
A
s I write this, there are 100 days left until the general election and it is impossible to predict who will emerge triumphant this time around. The car has always been a political pawn in my lifetime; from Maggie’s battles with the unions to the scrappage scheme, our ability to do business can often hang on the incumbents of Number 10. There can be no doubt, regardless of your political inclinations, that the current government has allowed the motor trade to recover quickly from the crisis. Although the credit crunch accounted for some highly geared motor businesses, those that survived have seen growing new car volumes and static cost bases thanks to stagnant wage growth and low site investment. Motor trade return on sales is still pitiful, but if you had taken a straw poll of the movers and shakers in the retail motor industry in 2008, all would have been happy to see our industry in its current state. So what next? My own view is that no party will emerge as a clear winner, and that a coalition will be formed between Labour and either the Liberal Democrats or as a left-field alternative, UKIP. The ever-decreasing revenue from road tax will need to be addressed. Roads need repairing, let alone building, and lowemission cars are not going to pay for that. Although all political parties understand the need to show green credentials, the chronic lack of transport infrastructure means there is still little alternative to the car. With many more plug-in hybrids available in the market, I am sceptical that the grants will continue to be available. Ask any renewable energy company which has seen the grants for photovoltaic technology slashed. Oil has dropped significantly over the past few months, and, barring any significant prolonged turmoil in an oilproducing region (which is always possible!), oil is likely to remain at a lower level than in the past few years. Therefore moves back to petrol cars from diesel could happen. Finally there is the issue of currency. The pound could behave in many ways depending on who comes to power on May 7. Given that so much of our manufacturing is in the automotive industry, the exchange rate and wider financial markets will again be the key to our shortterm economic future.
‘My own view is that no party will emerge as a clear winner.’
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
Suppliers’ If you’re looking for a motor trade supplier you can find App development
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AppCreatives
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Spectrum
W: spectrumfa.co.uk T: 01279 315 013 E: lewis@spectrumfa.co.uk Info: Business Protection Insurance. Including Ownership and Key Person Insurance. Free no-obligation reviews and advice. All the leading insurers.
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Central Car Auctions
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Auctions
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Key control
Manheim Remarketing
First Response
Keytracker Ltd
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Auctions
Finance
Lead Generation
Newark Motor Auctions
Glenside Finance Ltd
FindsYou
W: newarkmotorauctions.co.uk T: 01636 671167 Info: East Midlands/Lincs’ largest independent auctions. Main agent, finance and private entries. Sub-£3,000 our speciality. Friendly welcome for all.
W: glensidefinance.co.uk T: 01329 849434 E: props@glensidefinance.co.uk Info: Long-established subprime lender. Helping you to write the deals you might miss. Call now to find out more.
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To have your details included here call (023) 9252 2434 and ask for Suppliers’ Guide listings
guide
Confessions
your real stories
the details of selected companies here Lead Generation Moneypenny
W: moneypenny.co.uk T: 0333 202 1005 E: hello@moneypenny.co.uk Info: Unanswered telephone calls are a major gripe with car buyers. Never miss another call again – talk to us about a free two-week trial.
Training Drive Development Solutions LTD W: drivedevelopment.co.uk T: 0800 133 7070 E: info@drivedevelopment.co.uk Info: Helping the motor industry find, keep and develop talented people by offering training solutions that are innovative, practical and relevant.
Warranties Car Care Plan
W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market-leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!
Marketing
Valeting services
Warranties
Admark
National Car Cleaning Company
Warrantywise
The UK’s Best Used Car Warranty
W: admark.co.uk T: 01992 636999 E: automotivespecialists@admark.co.uk Info: One call does all advertising & marketing including digital marketing & website management, direct mail, eDM, ppc, seo, social media.
W: nationalcarclean.co.uk T: 01268 565050 E: sales@nationalcarclean.co.uk Info: With 30 years of excellence in vehicle valeting, we have an unparalleled reputation for quality on-site vehicle preparation.
W: wisedealer.co.uk T: 01254 355104 E: dealers@warrantywise.co.uk Info: Provide your customers with the UK’s best used-car warranty, designed by Quentin Willson.
Online marketing
Vehicle checking
Warranties
iVendi
HPI Check
WMS
W: ivendi.com T: 0845 226 0503 E: info@ivendi.com Info: Award-winning motor finance calculators and highly-qualified lead generation. See why over 600 dealers now work with us.
W: hpi.co.uk T: 0845 301 1812 E: thehpiteam@hpi.co.uk Info: We are the UK’s leading provenance check provider, with 75 years’ experience. Get peace of mind with HPI Check.
W: wmsgroupuk.com T: 01844 293817 E: dealers@wmsgroupuk Info: Open 24/7, we offer award-winning warranty products for FCA and non-FCA registered dealerships.
Paint protection
Vehicle logistics
Wholesales
Supagard
Movex Logistics
Carfleet Wholesale Ltd
W: supagard.co.uk T: 0141 633 5933 E: info@supagard.co.uk Info: Still the UK’s number one after 24 years and the preferred choice of the AM Top 100 and major vehicle manufacturers.
W: movex.co.uk T: 0208 551 1060 E: daren@movex.co.uk Info: UK’s largest FREE vehicle logistics platform. With over 5,000 members, place a job, receive quotes, accept favourite, up to 40 per cent savings.
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Paint protection
Video
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GEN-3 Glasscoat
AutosOnShow.TV
Dickies
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These Listings Work
GlobalOASys
AutoProtect (MBI) Limited
More Sales For You
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Suits you, sir! How I stitched up my DP
T
he dealership I used to work at was quite a big concern and held a posh awards do every year. I’m not sure if they still run it but it was always held at a swanky hotel in London and it was a black-tie affair, so we all had to get suited and booted for the occasion. Most of the guys in the business owned their own dinner jackets (or tuxedos) but the dealer principal at the showroom where I was working – and me – were sadly lacking in that department so we had to hot-foot it to a local menswear hire place to get kitted out in the suitable attire. Now it just so happens that I wasn’t getting on particularly well with this DP (and as you can tell, we have since parted company) but I thought that a little drive into town, maybe a Costa and the process of sorting out our suits might provide us with the chance for something of a reconciliation. Not a bit of it! He insisted that I drive, which wasn’t really that much of a problem, but then for the five miles of the journey he just moaned and groaned about everything I had been doing, even having a go at the ‘lard’ I had in my hair and my recently-acquired beard. By the time we arrived at the menswear shop I was pretty hacked off. And it was then that I did something that was actually pretty mean. After we’d been fitted, allocated our suits and generally spent a few moments cracking jokes largely based on that sketch from The Fast Show, he had to pop back to his car as he’d forgotten his wallet. To come to the point, I switched the suit he had been fitted with, which, like mine, was concealed in a darkcoloured cover, for a random replacement one on one of the many racks in the shop. Fast forward 48 hours or so and the scale of what I’d done became apparent on the awards night. I’d swapped his suit for full Scottish highland formal wear! And to be fair to him, he looked pretty good! Kilt, sporran, the works and I have to say he carried it off with aplomb. He didn’t suspect a thing, just said there must have been a mix-up when he left the shop for a few moments to fetch his wallet and left it at that! And a good night was had by all.
‘By the time we arrived at the menswear shop I was pretty hacked off.’
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 | 85
workshops.
Want to be included in this section? Call (023) 9252 2434
Video technology putting customers in the picture Upsell has increased by average of £250 since system was introduced – and bodyshop boss says: ‘We’re changing the face of accident repair’
A
BMW dealership has added an average of £250 upsell per retail job by using pioneering CitNOW video technology over the past two years. BMW Sytner Oldbury has used CitNOW’s Bodyshop app since April 2013, making nearly 1,000 customer videos to date and adding more than £6,000 in extra revenue in the first five months of use. With average pre-tax profit margins in the bodyshop sector slipping to 2.4 per cent, meaning a £1,000 invoice delivers a meagre £24 profit, businesses need to find new ways to increase revenue and reduce costs. CitNOW is a personal video
presentation service using a series of easy-to-use apps. While the average increase at Sytner Oldbury is £250, the rewards for innovation can be up to four times that, with the shop’s biggest success a £1,000 retail repair. Bodyshop manager Brendan Elston said: ‘We’re changing the face of accident repair. Many people
have a stereotypical view of an accident repair centre – it’s ‘Fred in a shed’. With CitNOW, we’ve shown customers our £10m, 25,000 sq ft operation. It’s made it much easier to communicate with and retain customers. ‘We’ve moved from upselling to best advice – we don’t sell parts on the video, we focus on communicating the information that the customer needs. We then follow that up later on the phone; it makes it easier for the customer to say yes. Even if they don’t want the work done, we have still logged the condition of their car and are protecting the business. CitNOW is as simple as doing an estimate.’ n www.citnow.com/bodyshop
repair
New centres are launched LKQ Coatings, a division of Euro Car Parts (ECP), is investing in the rollout of a network of 23 collision centres. The centres are committed to offering body repair customers a single dedicated point of purchase for a wide range of paints, consumables, panels, cooling, garage equipment, quality approved collision parts as well as mechanical parts, supported by rapid delivery schedules including a guaranteed next working day service. The centres will house specialist collision sales experts trained to offer advice across all the products and services available, and discuss value-added business programmes to help repairers make business improvements.
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PROUD SUPPORTERS OF
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the fleet.
LATEST FROM THE FLEET... New arrival:
Second report:
Lexus IS300h Andy Entwistle has a history with this manufacturer – and as the man with the company cheque book, he likes the mpg figures...
I
have a long history with the Lexus IS. My first car was the original IS200. I ordered this based on a fantastic spec, good looks and the fact it has a six-cylinder engine. On paper this looked like a real alternative to the 3 series and it was cheaper. Sadly, shortly after taking delivery, I realised this wasn’t the case. It certainly looked the part (I still think it’s a good-looking car) and there was no doubt it was loaded with everything, but the driving experience was dull and the engine was underpowered for the weight of the car. For a cutting young exec, this just missed the mark. Move on seven years and to another business and I was running our company fleet. The new IS had been released and again, they looked promising. Lexus came and had a chat and we did a deal, changing the sales fleet from 320d to IS220d. Not a fan of the styling this time, it was the build quality, low running costs and competitive pricing that convinced us. Needless to say, the sales team were not impressed with our announcement. However, over time the whingeing died down, especially from our friends in the north because when the snow fell, the IS could carry on where a 3 series was stuck in the drive. Move on again and I’ve been handed the
the knowledge Model: Lexus IS300h Price: £38,495 (as tested) Engine: 2.5-litre 4cyl, 178bhp, plus electric motor Power: 178hp, 300Nm Max speed: 125mph 0-60mph: 8.4s Emissions: 109g/km Mileage this month: 1,200 This month’s highlight Looks good, very quiet and great mpg
keys to the all new IS300h. I’ve already covered well over 1,000 miles, in the worst weather the country has had this year, and initial views are encouraging. I’m averaging over 45mpg, which for a large petrol-engined exec is nothing short of amazing. The IS is also a very quiet and refined car, particularly at lower speeds or cruising – in fact, without looking at the dash it’s impossible to tell if you are moving on electric or petrol power under 40mph. This is going to be a big benefit to potential IS buyers who are more interested in a relaxed, refined drive than a sporty cross-country hack. The looks are certainly a big improvement on the last model. The overhangs look right and the standard wheels suit the car. It’s a good-looking car and manages to stand out from the rest of the current batch of Japanese saloons. It certainly looks like an exec car. I’m undecided about the interior, despite spending a fair few miles in her in the past three weeks. It’s not up to the standards Audi have set, but it’s still a well-screwed-together interior. The seats are good, with plenty of support and without the ridiculous wings that more and more sports seats are sprouting. As you would expect, she wants for nothing in regards to spec, but there are some annoyances. The heater control is a metal touch strip that you run your finger up and down to increase or decrease the heating. It’s a neat idea, but in reality it doesn’t work well. It’s very fiddly to get the exact temperature you need, particularly if driving on a bumpy road. Andy Entwistle (andy@blackballmedia.co.uk)
Kia Procee’d GT It looks and feels great – but it’s a little on the thirsty side
During my first week staff as photographer at Car Dealer Towers, I was ‘eased’ into the role by being sent halfway up the country for a shoot. This was deemed by the powers-that-be to be a perfect opportunity to get some fresh input on the Kia. I was thrown a set of keys and told to get on my way. All I knew about the car was the registration number, the manufacturer’s badge on the keys and a vague description of a black hatchback… The keys said Kia, and my mind was scrolling though all the awful-looking Asian cars that have found their way to the UK market over the years. Arriving at the vehicle, I was pleased. It looks good – it looks great, in fact. Smooth, sleek lines and a mean front end with a set of nice twotone alloys. The revised front running lights equipped on the Procee’d GT are also a nice touch, differentiating it from other hot hatches on the market. The interior also didn’t disappoint, the design of the seats, steering wheel and instruments all seemed modern and exciting. As for the driving experience, the car was lively and willing, if a little dependant on the turbo for its real grunt. The largest gripe is the blind spot. The other minor frustration is its mpg. Yes, it’s pushing 201bhp, but in this day and age, is it okay for a small hatchback, albeit a hot hatch, to average 35mpg on a run? Jonny Fleetwood (jd@blackballmedia.co.uk)
the knowledge Model: Kia Procee’d 1.6 T-GDi GT Price: £22,495 (as tested) Engine: 1.6-litre petrol Power: 201bhp Max speed: 143mph 0-60mph: 7.4secs Mpg: 38.2 (combined) Mileage this month: 605 This month’s highlight It looks great – especially on the garage forecourt, filling up with petrol again... CarDealerMag.co.uk | 87
the fleet.
LATEST FROM THE FLEET... Fourth report:
Fourth report:
Fifth report:
Mazda6
VolvoV40
MitsubishiASX
Plenty of comfort – and a boot big enough for a rugby team
Shut the abuse – this is full of mod cons and sporty to drive
Wonder if they come with a hammock, shower and loo...
I’ve done a fair few miles in the (to coin a Dave Brown phrase) Mighty Mazda this month and I must say I thoroughly enjoyed every one. Recently it’s been used to transport me to various business meetings, airports and a holiday and its ability to pound the motorways in comfort never ceases to impress. Having tried several other long termers on the fleet, I’ve decided our 6 Tourer is by far and away the most comfortable. After last month’s phone call from a dealer helping me solve a few bugbears on the 6, I thought things would be relatively quiet this month. Not so. No sooner had the locking issue been resolved, a warning light telling me ‘tyre rotation’ was due illuminated the dash. A shout-out for help was answered by Perrys. Apparently tyre rotation isn’t something that happens when you drive, but actually means swapping the fronts to the backs. That said, life with a massive estate is proving pretty handy. It’s transported the family and what appeared to be enough luggage for a rugby team to the airport for our skiing holiday – even my snowboard fit comfortably in the back with the seats down. That cavernous boot has even been called into action to lug a two-seat leather sofa from a friends house to the office too. I was convinced it wouldn’t fit – but my word it did. It saved us the cost of hiring a Vauxhall Vivaro. And you can guess how happy that made me. James Baggott (@CarDealerEd)
This month has given me the opportunity to see how cross-country capable the Volvo V40 Cross Country really is. When I say cross country, I mean soft-roading, really. A group of 12 of us headed to Devon for the weekend, a 250-mile round trip mainly on motorways (for the bargain price of just £25 in diesel) but this did involve some rough terrain the closer we got to our accommodation. The Cross Country has all-wheel drive and hill descent control, which made driving across rugged terrain just easy. The V40 made light work of everything thrown at it over the weekend. However, the toughest feat the V40 had to overcome was some inter-brand abuse from a Vauxhall driver. Out of the four cars our group had taken – a Vauxhall Astra, a Corsa, a Nissan Note, a Ford Ka and the V40 – it was the Volvo that took the hit. ‘Who brought the Volvo?’ she barked. ‘Couldn’t you get anything better?’ Now this still makes my blood boil. My only solace was that those who sat inside the car were nothing but impressed. But why is it that Volvos are still getting stick for being boring cars, when really they’re nothing but? The V40 has enough mod-cons to make it luxury, while feeling sporty. Thankfully, there was another happy moment this month – tackling the Great British winter. Waking up to a slathering of snow over the car was very exciting, until half a mile away when it disappeared. At least it made for a pretty picture. Becca Chaplin (@BelieveBecca)
We’re currently in the middle of renovating a stupid old house that no-one else wanted so when a new Mitsubishi ASX joined the fleet I was keen to get my hands on it. Weekends now are all about DIY and the spacious ASX is great for that, whether it’s filling up the back with stuff from Wickes or doing a tip run. Mitsubishi are clearly pushing the ASX and you can’t watch an episode of Coronation Street without seeing their latest TV ad pop up. And this top-of-the-range model, which is the 2.2 Auto, really is a lovely car with great spec. It’s good to drive and, with the elevated viewpoint, comfortable on long journeys. It’s practical and Mitsubishi are known for their reliability – a point underlined by the introduction of a new five-year warranty across their range, which was unveiled at the start of the year. Starting at £14,999, the ASX is cheaper than the likes of the Skoda Yeti, Kia Sportage, Hyundai IX35 and Nissan Qashqai. Each model in the ASX range, whether it’s the 2,3 or 4, comes with a generous amount of extras and the 4 has got the lot, including a panoramic glass roof, DAB radio and sat-nav. The heated seats have also been a real benefit over the past few weeks. Come to think of it, it’s nicer being in the ASX than it is my house at the moment. If only it had a toilet in the back…. Gareth Bethell (gareth@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: 2,349 This month’s highlight Realising I wouldn’t have to hire a Vauxhall ��| 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: 736 This month’s highlight Despite the abuse from friends, everyone really was impressed by it...
the knowledge Model: Mitsubishi ASX 4 Auto Price: £24,649 (as tested) Engine: 2.2-litre diesel Power: 147bhp, 360Nm Max speed: 118mph 0-60mph: 10.8s Emissions: 153g/km Mileage this month: 1,052 This month’s highlight Filling it up with some bargain flooring from a closing down sale!
longtermers
Sixth report:
Sixth report:
Fond farewell:
DaciaDuster
NissanQashqai
AudiA3
Winter draws on... and the Duster is coping pretty well
I’ve seen the light... all these safety gadgets are brilliant
Love the drive – and really, really hate the steering wheel
I MANAGED to get hold of the keys to our longterm Dacia Duster recently and I have to say I was impressed, for the most part. As I am the last person to write my report for this page, I’m aware many of my colleagues have mentioned the spell of cold weather that has hit us over recent days. And I’m about to do the same! I’m only doing so to emphasise how well the car coped with the chilly conditions. My only complaint would be that the screen heater/dryer seems to struggle a little bit when it comes to the task of blasting away the condensation on the inside of the car and helping to melt the ice on the outside. That said, it’s not too much of an issue, it’s just a question of spending a bit more time in my driveway than I normally would. Once the Dacia and I are on our way, however, it’s plain sailing and driving it for the first time, I was impressed with how much bang you get for your buck. With a decent audio system and easyto-operate sat-nav, there are plenty of convenient mod-cons included as part of the package. Yes, perhaps the engine is a little noisy, but that’s probably just a question of sound-proofing rather than anything else, and yes, of course much of the interior trim is plasticky and not exactly of the highest quality, but the car has so much going for it in other ways that I hope it won’t be too long before I’m behind the wheel again. John Bowman john@blackballmedia.co.uk
I’ve seen the light while driving the Nissan Qashqai over the past couple of months. No, I’ve not found Jesus as I’ve been travelling the highways and byways of the UK. Instead, my epiphany has come in the form of the technological awakening that’s happened inside this all-conquering British-built model as winter has taken hold. And chief revelation has been the Qashqai’s High Beam Assist, which, after hours spent driving in the dark, has quickly become my favourite genius gadget on board this remarkably clever car. You see, the remarkably nifty Qashqai does all the thinking for you. Just leave your lights in ‘auto’ mode with the high beam on and, when there’s nothing coming it’ll crank up the lights for maximum visibility. When a vehicle approaches or you draw close to the car in front, the high beam’s turned off. Like everything on the Qashqai, the system works perfectly and is incredibly precise. It also works seamlessly with the other features of the impressive Nissan Safety Shield – including Lane Departure Warning, Emergency Brake Assist, and Blind Spot Warning. We’re handing back the keys to the Qashqai in the next week and everyone at Car Dealer Towers is going to miss it. There aren’t many cars on the market – even those costing a lot more – that can not only do everything this car can do, but do it as well. Malcolm Hay (mal@blackballmedia.co.uk)
Sometimes the best car for the job is the one you completely forget about. This was the case for me this month, after the A3 whisked me through the heavily-trafficked roads around north London on the way back from Heathrow. After making my way back from a car launch in Spain, it was 5pm by the time I collected the car – hell in London terms. Despite this, a combination of punchy diesel power, a smooth ride and comfortable seats meant that not even the M25 or the pathetic excuse for snow could make the journey stressful. I’ve never been the A3’s biggest fan, as its premium price tag bumps expectations far above those of a Ford Focus, for instance. However, it’s undoubtedly a nice place to be while the mercury plummets outside, with the minimalist dashboard looking upmarket – though the smattering of similarly-sized buttons around the gearstick aren’t the easiest to navigate. After nearly a year with us, though, the miles have taken their toll, with the front tyres struggling to contain the full muscle of the diesel engine now the tread has worn down. The front suspension also appears to be clunking a little over speed bumps, while the windscreen glass in the driver’s line of sight seems to distort the view of the road ahead somewhat. The one real pain for me, though, is that awful flat-bottomed steering wheel that make low-speed maneuvering a pain... Christofer Lloyd @christoferlloyd
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: 678 This month’s highlighT Experiencing for the first time the charms of our long-term Duster.
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: 1,495 This month’s highlight Not having to worry about dazzling drivers coming the other way...
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: 408 This month’s highlight Negotiating north London and the M25 in a calm, German bubble CarDealerMag.co.uk | 89
data fiLe.
Remember the lessons of 2007 – and beware flashes in the pan D
on’t say it too loudly as it may draw too much attention, but sub-prime lending at the point of sale has started to make a comeback and there are now as many lenders (if not more) as when the financial crisis of 2007 began, and we started to witness people withdrawing from the marketplace. Many of the captive finance companies and larger independents have been shying away from those customers who have less-than-perfect credit history, instead focusing on the customers they believe to be the best bet in terms of paying them back. That, unfortunately, has left some customers being unable to access credit, even though the chances of them honouring their agreement are very good. As one lender left the market, another reviewed their lending criteria and policies, which resulted in some customers with a few blotches unable to access the best rates, as these were reserved for those with pristine records. The knock-on effect to you as a dealer was that your panel of lenders had changed. And not only that, but the product offering and the number of customers you could now serve had changed too. So it may be a feeling of déjà vu for those of us who remember the cycles our industry tends to go in, as new lenders offering near to sub-prime rates re-enter the market – or, in some scenarios, enter a new market completely and begin offering point-of-sale car finance. A good question to ask those who are returning may be: ‘Where were you to support us when the times were hard?’
Jonathan
Such TIME IS MONEY
In those days, it sometimes seemed an almighty task to gain an acceptance to enable you to sell a car and keep your head above water. And it also may be worth asking those new entrants what kind of longevity they expect should we witness another 2007. It may appear those questions seem defensive from somebody who works for a specialist independent finance company, but rest assured I have witnessed enough comings and goings to be able to pose those queries from a non-biased perspective. It is worth noting, though, that First Response Finance (like many of you) have weathered the storms the financial
‘Business partners should display good ethics and integrity’ crisis brought with it, and have continued to develop and evolve its service offering to constantly support your business. We still continue to accept only dealer-direct business, without the ability for a broker to send us an application, and have focused vastly on ensuring our capability to process your business and get the money to you ranks among the best in the industry. There are a lot of old sayings which people continue to use. You just need to make sure any business partner you choose to deal with isn’t a flash in the pan, and that they conduct themselves as a sub-prime lender should – with good ethics and integrity.
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
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