Car Dealer Magazine: Issue 86 by Blackball Media

INSIDE: Power and poise – Porsche 911 TargA 4 GTS Tested

Business Publication of the Year

Issue 86 | May 2015 | CarDealerMag.co.uk | £3.50

PLUS: Shake, rattle and roll – behind the scenes with nissan’s boffins

The

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he new DS t s e o d : n e o r it c s classic? live up to the 60

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ll about? a y e h t e r a t a h stores: so w t l u a n e r w e n e plus: th

s o t s e f i n a m r o Mot ut vote for? find o u o y ld u o sh o wh er ffering free be o is ’ ty r a ‘p h ic wh

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IGNITION.

EDITORIAL EDITOR Colin Channon

colin@blackballmedia.co.uk Twitter: @colinchannon

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

head of design Graeme Windell

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STAFF WRITER Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @BelieveBecca

ADVERTISING ADVERTISING Manager Duncan Chappell

duncan@blackballmedia.co.uk Twitter: @CarDealerDunc

Advertising EXECUTIVE Cliff Culver

cliff@blackballmedia.co.uk Twitter: @CarDealerCliff

CREDIT CONTROL & ADMINISTRATOR Pippa Marsden

pippa@blackballmedia.co.uk Twitter: @CarDealerPip

SUITS MANAGING DIRECTOR James Baggott

james@blackballmedia.co.uk Twitter: @CarDealerEd

OPERATIONS DIRECTOR Andy Entwistle

andy@blackballmedia.co.uk Twitter: @CarDealerAndy

Contributors Tim Naylor, Nick King, Mike Jones, Jonathan Such, Daljinder Nagra, Chris Lloyd, Nigel Swan, Stephen Hall, Sophie Williamson-Stothert, Jonathan Fleetwood, Chloe Haywood

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it’s official. I am now Welcome. Well, a Seriously Cool Guy. Who

says so? None other than the world leaders of tomorrow, the future brains of UK plc – yes, university students. My youngest daughter’s at uni (studying music, although I can’t sing for toffee. But the milkman can hold a pretty good tune. Strange, that...) and her friends weren’t impressed that I was a journalist. But then they learned I drive cars for a living. Cool cars. And suddenly, in their eyes, I’m Jeremy Clarkson (although I don’t hit colleagues. Or drive every car like I stole it. Or earn millions a year). So this month has been a good one in the reputation stakes. First, I headed to Malaga with Porsche (as you do) to drive some seriously-good GTS models on the road, and around the Ascari track. Yes, it was as much fun as it sounds. And yes, it DOES count as work... Then this little beauty above arrived at the office. The BMW i8 is a wonderful car. There aren’t too many motors that attract that sort of attention when they get dropped off at Car Dealer Towers – we’re used to having posh, shiny cars turn up, but everyone flocked outside to take a look at this one. Getting the key off the suits was a job and a half. Oi, I said. I’m a proper journalist. I’m supposed to drive the cars that come in. Tough, they said. We saw it first.... (yes, we have very grown-up conversations here). So I stole the key. Well, as John Wayne never said, a man’s gotta do what a man’s gotta do. And it’s a great drive. And I don’t remember being in another car that gets so much attention. Everyone you pass in the street stops and gawps, or points, or both. I just need to ask the BMW press office if I can borrow it to take my daughter back to uni after the (very, very, very long) academic holiday. Because after pulling into the campus car park, her friends will think I’m even cooler than Clarkson. Which will put me on a par with someone like... like... like... oh, I don’t know. The Stig? Richard Hammond? James Baggott?

ON THE MOVE No, not me... almost had the suits breaking out into a jig of joy there. I mean the Baggott column. For years, it has been tucked away in the middle of the mag, where, he moaned, no-one can see it (which I think is the best place for it...) Because the finance page has always been popular, we’ve rejigged the mag this month, to give the moneymen their own section (from Page 40). And that inadvertently freed up a page at the back. So because Baggott’s whingeing and whining finally got to us, from this month you’ll find his column just inside the back cover. Easier than ever to find, he says. Yes, perfect. You should discover that if you tear it out carefully, it fits snugly in the bottom of the budgie cage (although, to be fair – and none of us likes being fair to Baggo – it IS a good column this month...) Next month, we’re looking at a 128-page mag. If I get my way, Baggott’s page will be on Page 129. mag full of goodies It’s another packed magazine this month. We have a nice French theme to our features. We have a special guide about the Used Car Awards, which should be in your polybag. And we’ve asked the parties why you should be voting for them on May 7. After their initial enthusiasm, it was a job and a half getting them to submit their stuff, I can tell you. We got there in the end, but I’m thinking about becoming an MP. All talk and no work. What do you mean, that’s the job I’m doing now??? As ever, I hope you enjoy the pages that follow. If you think we’ve missed something, or you have a story worth telling, email me at colin@blackballmedia.co.uk or tweet me @colinchannon Hope you like this month’s efforts.

Colin Channon, editor

WINNER

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

04 | CarDealerMag.co.uk

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INSIDE. ISSUE 86 I MAY 2015

Dashboard Feedback Car Dealer Conference & Expo

Big Mike

Magnifique or mundane? How does a modern-day Citroen DS compare to one of its celebrated predecessors, pictured here? We take both for a spin to find out...

Real Deals Trading Up Finance

Forecourt Subaru Outback Audi TT Roadster

Behind the scenes at Nissan’s European Technical Centre.

Is the latest version of the Subaru Outback any good?’

‘‘

MG6 Ford Grand C-Max Porsche 911 Targa 4 GTS

The top finance firms to work with.

Features

The customer was hugely enthusiastic as he caressed the Jaguar’s curves . . . Big Mike

Taking Note with Nissan La Citroen DS Magnifique? Bright new look for Renault Dancing the Twingo!

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

Suppliers’ Guide with Litton Key Notes with Traka Renault showrooms are being given a makeover... but will the new look equal more sales? We take a trip to one of the new stores to find out.

Long-termers James Baggott

06 10 35 37 39 40

45 47 48 50 51 53 56 67 72

100 102 103 104 106 107 108 110 111 114

OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique in the industry. Full coverage of this year’s event in the June issue

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 pages 10-13 for details CarDealerMag.co.uk | 05

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

Our website at CarDealerMag.co.uk

So much business done WANT to sell more cars? Then bolster your online presence – and make sure potential customers can get all the information they need without having to give you a call. Why? Because the latest research suggests more and more people are researching their next purchase in the evening – yes, that’s right, when your showroom doors are shut, and your salespeople are safely tucked up in bed. The news comes from Auto Trader, which says that, along with a rise in ‘evening research’, there are now fewer forecourt visits but more customers arrive on site without having made any prior contact with sales staff. From the Car Dealer website, March 13 Comments about out-of-hours business are very true. Dealers are generally daft for not taking advantage of [the] night. I don’t have any route to market, except web. More than a third of my business is outside normal working hours (more if you realise Sunday is open-late, close-early day for most car dealers). LINGsCARS Very interesting. We all know most of the buyers do their research in the evening. Ling, you have more of a unique business model than most / all dealers – used cars are very different and some new cars too, as customers want part-exchange values etc. Your target audience is simply buying a rental – they (mostly) already know what they want when they arrive at your website, some get seduced into payments. No question you have a great business but a bit different to being a ‘dealer’. Umesh I always find the customers who need to see a car outside of working hours are usually customers who actually buy. I wouldn’t say that it’s a regular thing for me but I’ve sold to guys on shift work after 12pm and before 6am. When your phone goes off late at night its likely to be drunks, but you can’t always tell. metcars

RAC Cars goes free for dealers Here’s a turn-up for the books then. A large advertising portal goes completely free in a bid to take on Auto Trader. They’re aiming for 500k cars too. What do you think? James Baggott Interesting to offer free, I think we all know free or not! If consumers are not searching the RAC website, dealers won’t make a sale, so it’s pointless. However, if they get the SEO right and

the marketing then the sales may come. A tough challenge... but it’s all about where ‘buyers’ are looking – isn’t it? Umesh It’s all about unprompted awareness ratings, not just SEO and marketing. Go and ask 100 people if they have heard of Auto Trader. I would imagine 98 or so would say yes; ergo, I would guess their prompted awareness rating would be around high 90s. Then ask 100 people to name a place on the internet where there are cars for sale from multiple vendors. My guess would be that at least 50 per cent would say Auto Trader, ergo an unprompted rating of around 50 per cent. (Maybe someone from Auto Trader could confirm, they will have these stats and they will have the ratings for their competitors.) Until someone gets close to these ratings then they will have a tough time competing at the same level. The likes of the RAC and AA can certainly take them on in the unprompted

awareness stakes – they have extremely strong brands – now they need to convert that into unprompted awareness in the portal arena and it’s game on. The strength here is in the brand and brand awareness, not necessarily in the car numbers. Codeweavers Shaun I agree that the vast majority of potential buyers will be a lot more aware of AutoTrader and as such, our stock exposure is much higher with them (I know their market dominance is debated regularly). However, my parents (late 60s, early 70s) were recently looking for a new car and decided to have a look on the internet. During this search my mum sent me a link to a couple she liked the look of. These were all on the RAC Cars site and none on AutoTrader. This shows that even the less internet-savvy among us can still come across the site. If it’s free, we have nothing to lose, so I’ll be trialling some stock on there. Daylight

Picture of the month IT’S not all glitz and glamour being a motoring journalist, you know – there’s a fair amount of hanging around ! The morning of April 8 was particularly trying for the reporters heading to Majorca for a Ford-organised event.... industrial action by French air traffic controllers meant a long delay at Stansted Airport. The party of hacked-off hacks, including Car Dealer’s very own Sophie, right, did arrive eventually on Spanish soil – although what she’s saying to fellow journo Phil Huff as he takes this picture is anyone’s guess...

More and more of our readers are joining the debate – and it couldn’t be easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum 06 | CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

away from 9-5... Is there much money to be made getting involved in brokering? Anyone have any experience in new car brokering? It’s something we’re looking at – but with the likes of CarWow making just £200 a car, is there really money to be made as an independent? They rely on bulk sales with no legwork rather than the more traditional car broker route of actually talking with customers, but this is the age of digital communication. Anyone tried it, or involved in it? BrokerMan Personally, I can’t see it working – a lot of very competitive deals are already available from dealers. It would need massive investment to get the name out in the market place. Umesh I thought it would be a great idea. I started it, tried a little marketing... next to no uptake. It isn’t easy money at all, it is difficult to sell a new car to someone when they are not in a main

dealer showroom environment, there are no demos, no fabric swatches, no colour boards... and then at the end of it all, you are left with not much money. If I get an inquiry about new cars, or I hear customers discussing new cars in servicing, then I will show them real examples of depreciation in the first year or two and try to put them off buying new. Then they usually end up ordering a two or three-year-old vehicle with me. Obviously a lot more money to be made doing it that way. jamslug The common view I hear is that new cars make money through the service bays. So brokering them on without the additional revenue from the back office is always going to be a challenge. Don’t get me wrong, people can make it work, but mostly through high volume or leasing I think. Andy Entwistle

Top tweets

Who wouldn’t want to drive the Ford Deluxe Tudor? @perrysmotors Great day off-roading with @Jeep in Morocco. With @carwriteups, Tom Johnston & Nigel Fryatt. #jeep #cherokee @CarDealerDave Drink-drive student who drove BMW up tram tracks blames his sat-nav @MENNewsdesk

CarDealerMag.co.uk | 07

DASHBOARD. ACQUISITION

Maserati boost for Motorline MOTORLINE has bought the Maserati dealership in Cardiff. It has been acquired from Arrow Automotive Limited for an undisclosed sum and will be the second Maserati dealership in the Motorline Group. The south-east based dealer group has in recent years expanded into the Bristol and Cardiff areas, so the acquisition fits well. Glen Obee, chairman of Motorline, said: ‘I am delighted we have acquired the Cardiff Maserati dealership. We see a bright future for the brand.’

SKODA

Mulholland in pole position INDEPENDENT dealer John Mulholland Motor Group has been named the UK’s number-one Skoda dealership. The Co Antrim company, based in Randalstown and which earlier this year completed a £1m refurbishment, beat off 135 other Skoda retailers to claim the prestigious crown at a gala awards ceremony.

NISSAN

New jobs galore at dealerships ONE of Scotland’s biggest motor retail groups, Specialist Cars, has opened two new Nissan franchises in Dundee and Perth, creating up to 40 new jobs. Part of the John Clark group, the dealerships complement the company’s flagship Nissan showroom in Aberdeen and, it says, cement its status as the number-one Nissan retailer in north-east Scotland. The deal has led to the creation of about 20 jobs at each site.

MG appoints new dealer in Exeter as demand increases. bit.ly/MG-exeter

Car Dealer Expo is the perfect fit for us, say Kärcher KARCHER has appointed its longserving product manager Jeff Hilton, right, to the new role of target market manager automotive – and one of the first big events he has in his diary is the Car Dealer Conference and Automotive Expo at Silverstone on June 9. Now tasked with developing the Kärcher brand within the automotive retail industry, Jeff is very much looking to the occasion, which will bring dealers and suppliers together and offer a range of educational talks and workshops. He told us: ‘We think the expo is a perfect fit for our product range – not just for the cleaning of vehicles, but also showrooms and workshops. We’ve got the right products to help car dealerships improve safety, improve cleanliness and reduce costs. ‘There aren’t enough of these sorts of shows in the UK, so it does seem like a pretty important event for dealer franchises.’

Neil leaving Seat to take up a new Volkswagen challenge ... and he will be replaced by Richard Harrison, returning from Barcelona

eat UK director Neil Williamson, below, is leaving the company to take up a senior international role with Volkswagen. He will be replaced by Richard Harrison, who returns to Seat UK after a three-and-a-half-year stint at Seat SA near Barcelona, where he has worked as group sales director for West Europe and more lately as the worldwide dealer network development director. He first joined Seat UK in 2007 as head of sales operations, having previously worked in senior sales and marketing roles for Renault in the UK. He said: ‘I’m delighted to be returning home to Seat in the UK, where development of the brand has continued, taking us past the landmark two per

by COLIN CHANNON @ColinChannon

cent market share milestone last year. ‘With our strongest ever model lineup and a first SUV arriving in 2016, I am looking forward to working with the UK team and all of our dealer partners to continue the momentum.’ During the past two years, Williamson has overseen the most successful period in Seat UK’s history, with market share and sales volume increasing. Seat’s 2014 market share was a company record 2.16 per cent, compared to 1.9 per cent in 2012, the year Williamson joined from Mercedes-Benz Retail Group. Williamson said: ‘After two years at Seat UK, it’s a very different landscape: a whole host

of new models have come to market, with the launch of the new Leon – now a family of three – plus the Cupra and X-perience models. ‘The “leonisation” of the brand has meant business profitability has improved and our network is seeing the rewards. The future for them is very positive, with a new-look CI refresh currently on roll-out to our dealers, and a great product pipeline. ‘I wish Richard all the best in his new role, and am sure his time back in the UK will be tremendously successful. He has a fantastic team to work with and there are great plans ahead for the brand.’ Volkswagen Group UK managing director Paul Willis added: ‘I’m delighted to welcome Richard back to the UK team. ‘And I would like to congratulate Neil on his imminent move and thank him for leading Seat to its recent victories, achieving record sales and market share for Seat UK.’

08 | CarDealerMag.co.uk

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31/10/2013 10:07

dashboard. car dealer conference & AUTOMOTIVE expo: JUNE 9, 2015

Timetable 8am

Expo opens – breakfast

9am

Keynote speaker Steve Fowler (Auto Express)

9.20am

Keynote speaker Ken Ramirez (Renault-Dacia)

9.40am

Keynote speaker Tim Smith (GForces)

10am

Dealer group and manufacturer franchise meetings Workshops Session One x4, half an hour each

Car Dealer WELL, we knew the Car Dealer Conference & Expo was going to be big. We just didn’t realise HOW big.. When we were bowled over by what NADA had to offer, and wanted to set up the UK version, we thought it would take a little while for us to let the automotive industry know exactly what we wanted to achieve. After all, this was something brand new for these shores, and we needed to get the message out there what the activities on June 9 would entail. We got that wrong. The Expo side of things

has been nothing short of phenomenal. You can see over the page the suppliers who will be exhibiting at Silverstone. We just wish we had more space – so many suppliers got in touch and booked their space that we have now had to start turning some away. The Conference side of things is going to be fantastic. We have lined up so much that no dealer is going to be able to manage to see everything on the day, without using Hermione’s time-turner thingy from the Harry Potter film. We have keynote speakers who

10.45am

Workshops Session Two x4, half an hour each

11.30am

Workshops Session Three x4, half an hour each

Midday

Lunch & Expo

1.45pm

Breakout Sessions x4, differing lengths Workshops Session One Re-run

2.30pm

Workshops Session Two Re-run

3.15pm

Workshops Session Three Re-run

4pm

Dealer and manufacturer Q&A panels

4.45pm

Keynote speaker Scott Sinclair (Google)

5.10pm

Keynote speaker Georgina Parnell (Twitter)

5.30pm Close

workshop topic: how to protect your dealership, by CiRO DATA security is key to the success of a car dealership, or any business for that matter – and this important issue will be the focus of one of the workshops. The session will be hosted by CiRO, the corporate intelligence specialists, who can work with your dealership to put a data security strategy in place – and even turn your intellectual property into a protected revenue stream. The team from CiRO, led by chief executive officer ��| CarDealerMag.co.uk

James Brazier, will be available at our conference. Brazier and his colleagues are all experts in their field. CiRO has advisers and management staff who are former senior members of the government security services. Brazier promised a ‘relevant and interesting’ session. He told us: ‘Data security is a subject on everybody’s lips at the moment, as well as intellectual property issues and the cyber threat from the internet of things.

‘We want to educate people generally and explain in simple terms what a cyber threat is and how cyber information theft may affect not just people in business but individuals as well. ‘We’ll be taking a look at how to best secure your customer database … and, on the flip side, how to protect it from departing employees. We deal with a lot of situations where departing employees have removed data from their employers’ systems. It’s quite easy for staff to

Conference we know are going to attract significant audiences; we have workshops where industry experts will be sharing their knowledge and experiences; we’ll have one of the best automotive industry networking opportunities EVER. What we really want to avoid is a long line of disappointed people on the day who wanted to hear a particular speaker but couldn’t because the room was full. While the staff at Car Dealer do try to achieve the impossible, even we can’t wave

a magic wand and make a room bigger. You can book your place by logging on to our website (details are in red at the top of the page) – on the day, if there is any space left, places will be strictly on a first-come, firstserved basis. So PLEASE ensure you’re not disappointed and book in advance. We look forward to seeing you there. Keep logging on to CarDealerMag.co.uk to see all the latest developments. Book the date in your diary now – it’s going to be a great day!

#CDX15

take large quantities of data and export it to a competing businesses if protection measures are not in place.’ If you’re thinking this all sounds rather worrying, don’t be too alarmed! Brazier said: ‘We tend not to make our presentations too boring or scary. We try to keep things humorous and have a little bit of a jokey look at things, but there is a serious underlying message.

‘We can guarantee our talk will be enjoyable and valuable to dealers. You only have to look at the papers on a daily basis to see something about a data hack or data leak. ‘And dealing with this issue doesn’t have to be something that costs money. It can actually become a profitable arm of your business that can generate revenue. ‘We will be joined at the conference by our supporting lawyers from Spring Law who will

keynote speaker: gforces by Tim Smith Group strategy director at GForces I’m very excited about addressing the cream of the British motor industry (9.40am until 10am, in case you didn’t know) about the huge digital opportunities available to dealers and the future of digital car retailing in the UK. But I’ll be talking about more than just the tools themselves. Web tools and vast swathes of data are like ingredients without a recipe; they won’t do a lot unless you know how to use them in way which is fully integrated with your processes. We’re well into the age of the connected consumer, so like we’ve seen in other sectors, dealers should be looking to create data-led organisations in which their core approach to process, customers and business decisions is based on quantifiable fact. Many dealers are already successfully doing this – and it’s these examples from a crosssection of our UK client base that will form the core content of my presentation. Of course, we’ll throw in a bit of our own research and predictions for the future, along with some top tips to help the audience improve its own game as well. As well as the conference, we’re really excited about the Expo. As for our own stand at the Expo… well put it this way, we’re planning something BIG, and highly interactive. It’ll be an unmissable part of whatever is shaping up to be an unmissable day, so make sure you sign up and come along to this landmark event. Pop by our stand and say hi.

briefly explain how the end play works in terms of recovering financial losses that have occurred once a data breach has been identified.’ James Brazier will be joined at our conference on June 9 by CiRO chief financial officer, Mark Sullivan – together with Andrew Day and Daniel Gore from Spring Law. Along with the scheduled workshops, they will also be manning a stand at the event. CarDealerMag.co.uk | 11

dashboard. car dealer conference & AUTOMOTIVE expo: JUNE 9, 2015

Workshop sessions 10am & 1.45pm

(all sessions are repeated in the afternoon)

Point-of-sale finance in the digital age

The way customers finance their vehicles is changing. Blackhorse will give a masterclass on how to harness your technology to keep pace

Understanding your digital customer

iVendi will show you how to best use the many streams of customer data now available

The customer journey

Motors will explain how to ensure you get the most from your marketing spend

Know your customers

CAP knows everything when it comes to making the most of key data. It’ll be sharing its knowledge

10.45am & 2.30pm

11.30am & 3.15pm

How to protect your dealership

Write-offs, repos and other cons

Former British security service staff will be talking about some of the current scams facing dealers from criminal gangs, and show how you can protect your business against criminals, insider threats and thefts of intellectual property rights

The power of customer reviews

Lead generation masterclass

The Auto Network will show how lead generation can be a crucial weapon in every dealer’s arsenal

Like ’em or loathe ’em, they’re a big part of the business these days – and the RAC will be explaining how to use them to the best advantage, even the negative ones...

Employment law

Using video to sell the modern dealership

It’s a minefield out there. Lawgistics experts will explain the most common pitfalls – and how to avoid them...

Experts from CitNOW will explain why everyone should be using personalised video to communicate with customers

Right Stock, Right Channel, Right Profit

The next generation of websites

Manheim will be hosting an interactive session on sourcing the best stock

Educate the industry 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 repeated in the afternoon. Some dealers may think no-one can teach them anything new – but can you afford to miss a vital piece of information on the day that could give your competitors the edge? All workshop sessions are free to attend. 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.

��| CarDealerMag.co.uk

HPI will explain what to look out for so that you don’t get stuck with the wrong car – and what to do if you do...

Interactive 360 content, VR, HD images and video... technology changes every day, and GForces will be explaining why you can’t afford to be left behind and what customers expect to see on your site these days

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.

For all the latest news, follow #CDX15

Exhibition space is a sell-out IF you wanted to have a stand, we have news for you. You’re too late… We’ve already been turning away disappointed suppliers. Operations director Andy Entwistle, who has been masterminding the day-long auto extravaganza on June 9, said: ‘We knew the event was going to be popular – but to be honest, the scale of the interest has blown my mind. We’re going to have

about 80 exhibitors – we originally planned to have a few more, but so many exhibitors wanted extra space to showcase their wares that we had to redraw our floor plan again and again. ‘Suppliers have really got on board. They understand what we are trying to achieve with the Conference & Expo, and are already looking forward to the event.’

All the exhibitors AA Cars Auto Protect AutosOnShow.TV AutoTrader BCA BEN Blackball Media Black Horse Bluesky Interactive CAP CarCliq Car Dealer Magazine Car Loan 4U Cars 2 Trade Ciro CitNow Codeweavers Cooper Solutions Dealer Auction Dennis Publishing Direct2Dealers Dragon2000 eDynamix Euro Car Parts EMaC EPG Warranty Assist ExVtra FPC Vehicle Movements GTechniq GardX Gen-3 Glasscoat Gemini Systems GForces HD Decsions HPI IGA / RMI Instant Feedback

iVendi JudgeService Karcher Key Tracker Lawgistics Liquidline Manheim Martec Media Base Direct Media Motors Moneypenny Motors.co.uk Movex NFDA Northern Flags Parrot Perfect Placement Pentana Solutions Pinewood Pro-Align RAC Sky Adsmart SMA Vehicle Remarketing SSI Schaefer Supagard The Auto Network The Car Finance Company Trade Out Traka Automotive Trust My Garage WMS Wraptition Warranty First W8man Digital Media Solutions

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 invitation-only sessions, and will 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 Georgina Parnell from Twitter and Google’s Scott Sinclair.

Women In The Motor Industry

This unique, invitation-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 Manufacturer Panel

This open session will see four manufacturer bosses give their bestpractice tips and opinions on pertinent topics. Already signed up to appear are Ken Ramirez of Renault-Dacia and Lance Bradley of Mitsubishi. This session will also take questions from the audience.

Car Dealer Q&A Dealer Panel

Another open session, which will see four of the UK’s leading car dealer group bosses discuss topical subjects and give their advice. We’re keeping their names under wraps for now but we can guarantee that they’re big players and you won’t be disappointed.

For all the latest news, follow #CDX15

CarDealerMag.co.uk | 13

DASHBOARD.

Ask HPI your questions answered

Credit-card company wants the car I sold

Martin’s 45 years’ service to dealership A LONG-serving technician from a Honda dealership toasted his 65th birthday with a surprise celebration laid on by his colleagues. Martin Holbrook joined the family dealership, Hepworth in Huddersfield, as a 19-year-old in 1969. In his 45-year career with the company, he reckons he’s carried out 35,000 services – and has

no plans to retire. The team at Hepworth Honda, on Leeds Road, couldn’t let the landmark pass without recognising Martin’s decades of dedication to his work and his customers. Martin was given a trip for him and his wife Yvonne to a four-star hotel, while the Honda head office presented him with a luxury hamper.

Trader fined £26,000 after being caught selling faulty tyres Trading Standards criticise ‘dangerous’ practices

firm found to be selling ‘lethal’ tyres has appeared in court – and a trading standards officer said the tyres being sold to unsuspecting motorists were ‘some of the worst examples’ he had ever seen. Luke McKenzie, 50, was trading at Moss Tyres in the Springfield Garden Industrial Estate in Grantham, which sells new and part-worn tyres. Lincolnshire Trading Standards began keeping tabs on his operation following complaints and he appeared at Lincoln Crown Court charged with supplying and possessing unsafe part-worn tyres. He denied the charges, but the jury found him guilty of 15 counts of possessing and supplying dangerous products. He has been given a nine-month suspended sentence and fined £26,000. Officers told the court they completed a test purchase and an expert confirmed the tyre was lethal, saying it was one of the worst examples he had ever seen. ��| CarDealerMag.co.uk

Large numbers of tyres were seized and experts told the court many had serious defects which could have had ‘lifethreatening consequences’. Andy Wright, principal trading standards officer, said: ‘The fact the judge indicated he was considering a custodial sentence shows just how serious this is. Many of the tyres had serious defects and exhibited accident damage which undermined the basic structure of the tyres. This could have had life-threatening consequences for innocent consumers and their families. ‘Unfortunately we don’t have the power to stop the company from trading, but we have been investigating any fresh offences that may have been committed. This includes further covert test purchases from Moss Tyres while waiting for this case to be heard. ‘I am extremely concerned by the reckless attitude to customer safety that seems to be shown by McKenzie.’

recently bought a car from an individual for stock. The car sold fairly quickly, but the buyer has just come back to me as a finance company have told them the car is theirs and want it back. They have said their debt was cleared with stolen credit card and they had a chargeback. Where do I stand? The customer is worried his car will be taken away. Credit-card fraud is becoming a big problem for the finance companies, and some are handling it better than others. First, let’s deal with your customer. If he bought it from you, he should be protected by Innocent Purchaser Protection (IPP). This is designed to cover consumers in situations such as this. The customer needs to contact the finance company and explain they are an innocent purchaser and provide information they purchased the car from you in goodwill. That’s the good news. The bad news is that despite you buying it in good faith, you have not gained clear title and, as a trader, IPP does not apply. We assume you conducted a provenance check on the car before you purchased it. If so, you should speak to your provider whose guarantee should protect you. Do not pay the finance company until you have spoken to your provider – they will help negotiate a settlement for you. If you did not check the car before you bought it, it’s down to negotiating with the finance company. Legally, you sold a car they had title to (even if you did not know this at the time) and you are liable, so the best you can do is negotiate a settlement. In most instances, stolen cards are picked up immediately but sometimes it may take a few weeks for the finance company to see the chargeback. In these instances, our experience has shown the vehicle is either being sold by someone who is not the registered keeper, or the keeper has changed within the past two weeks. You can help protect yourself against this by ensuring you only ever buy from the registered keeper, asking them for photo ID and paying into a bank account in the same name. If the car has just changed hands, it’s even more important to verify who is selling it and that their ID checks out. Following these guidelines will minimise the risk of buying a car with bad provenance and, if it does go wrong, you have the details of the person who sold the car to you.

‘You can help protect yourself by ensuring you only ever buy from the registered keeper.’

Who are HPI?

HPI are the experts in provenance and vehicle data. Every month they will be helping answer questions from you relating to finance, write-offs or car scams. If you have a problem and need some help email us at HPI@blackballmedia.co.uk and we’ll do the rest

Trio of UK manufacturers announce £1bn UK investment. bit.ly/1bn-boost

Dealer is kicked out of BuySure scheme

Mario Dolcezza

Steps taken for not living up to RAC expectations

dealer has been kicked out of the BuySure scheme after failing to live up to the RAC’s expectations. The programme had its national launch on April 15, although many dealerships have been signed up for some time. What happens, we asked Mario Dolcezza, the RAC’s head of dealer propositions, if a dealer falls short when it comes to customer service, bearing in mind the RAC is known as the motorists’ champion? The answer? They are terminated... Dolcezza said: ‘Our expectation isn’t that everything will be perfect – it’s not a perfect world that we live in. But we do have an expectation that if things go wrong, an RAC-affiliated dealer will do

by COLIN CHANNON @colinchannon their best to put things right. In the instances where that doesn’t happen, the biggest thing we can do is immediately terminate them from our network, and to support the consumer with any claim they have against that dealer. ‘I have to say, in all the time I have been here, I have seen only one instance of that. Generally, we find dealers embracing good customer service and good reviews, and they work hard to get issues resolved.’ One reason there are not more issues, says Dolcezza, is because dealers who register to become a BuySure approved dealer are vetted first. ‘We are careful who we bring

on. I’m not interested in bringing everyone on – they have got to be a good fit for us. They have got to have the right ethos, and to share our synergy for customer service. ‘The odd one that slips through – and there’s been only one that I’m aware of – presented themselves well, as they often do, and they ticked all the boxes, but when it came to the crunch, they weren’t prepared to stand by the customer and resolve the issues, so we terminated them from our network.’ Chris Woodhouse, the RAC’s chief executive, told us: ‘You have to embrace the programme and believe that if you offer a better service to

people they’ll keep coming back, and they’ll talk to their friends about it, and they’ll come too. If people don’t embrace the programme, they’re not going to get the benefit from it, and eventually if they were taking the mick, they’d get found out. ‘We do give away three months’ roadside assistance free to consumers buying vehicles, so if they are unfortunate enough to break down we’ll come and help them. There’s a minimum of three months’ warranty on the vehicles, but often it ends up being a 12month warranty.’ Focus on RAC BuySure, p75

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Weâ&#x20AC;&#x2122;ve been with Volvo for 50 years Mill Garages North East is marking a milestone

dealer group is looking forward to marking 50 years of selling Volvo cars. Mill Garages North East joined forces with the Swedish car maker in March 1965 and has since grown into the biggest Volvo dealer in the UK, selling close to 3,000 new Volvos a year from showrooms in Newcastle, Sunderland, Stockton and Harrogate. The launch of the all-new XC90 sports utility vehicle in early summer and the start of a significant refurbishment programme across the Mill group are expected to contribute towards a year of substantial growth. The company has also announced its financial results for 2014 which reveal turnover of ÂŁ98m and profit before tax of ÂŁ803,497, continuing

by COLIN CHANNON @ColinChannon a positive trend since owners â&#x20AC;&#x201C; managing director Bill Ward and chairman Bob Nicholson â&#x20AC;&#x201C; led a management buyout of the business in 2008. Ward said: â&#x20AC;&#x2DC;Our results are again good news for the business, the north-east and North Yorkshire and weâ&#x20AC;&#x2122;re delighted the positive momentum is continuing into 2015. â&#x20AC;&#x2DC;We are extremely proud of our 50-year partnership with Volvo and to have grown and developed in the region, where Mill has become synonymous with the Volvo brand.â&#x20AC;&#x2122; Ward, the face and voice of television adverts in which he

urged customers â&#x20AC;&#x2DC;Now is the time to choose Volvoâ&#x20AC;&#x2122;, said the company expects to sell its complete allocation of the new XC90 this year. Finance director Simon Hewitson said the new model would add to the companyâ&#x20AC;&#x2122;s encouraging first quarter, building on seven years of profitable growth. He added: â&#x20AC;&#x2DC;We will be investing ÂŁ500,000 into our Stockton dealership later this year to bring a new retail experience to our

customers, and are looking forward to further growth.â&#x20AC;&#x2122; Mill Garages, which employs 176 people, was established in 1947 by George Rollings, close to the windmill in Newcastle Road, Fulwell, in Sunderland. Bill Ward, who has been in the motor industry since 1978, took over the reins in 1993. Our picture shows Bob Nicholson, Bill Ward, operations director Jeff Tabb and Simon Hewitson.

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Around the world Dealer news from somewhere other than here

CHINA

japan

The Geely Borui has been launched on the Chinese car market. Prices start at 119.800 yuan, which is roughly £13,170. The original ‘Borui GC9’ name has been dropped and the updated model includes a well-crafted leather and wood interior, an LCD screen and a flat-bottomed steering wheel.

The BMW i3 and its range-extended counterpart are now available at the click of a button from Amazon Japan. Buyers can pay a deposit of 990,000 yen (£5,540) for the electric BMW city car, costing a total of 5.46 million yen (£30,600), which is available in six different colours with an assortment of optional extras pre-selected from Amazon. The website then says BMW will usually ship the car two to three weeks later. However, the purchasing options are for only five-year lease or vehicle loan.

USA

An Indianapolis 500 pace car was stolen from a Chevrolet dealership in Zionsville, Indiana. Police are searching for a male suspect who drove the 2015 Chevrolet Camaro through the glass front door of the dealership and down a flight of stairs. The suspect was described as being white and shirtless.

SOUTH AFRICA

There’s an exciting prospect for South Africa’s residents as Australia and New Zealand’s Maserati distributors plan to expand. Sydney-based European Automotive Imports (EAI) will move into South Africa in May. They will open and run the Johannesburg Maserati dealership and are looking for partners to establish representation in Cape Town.

INDIA

In a bid to improve the air quality in the polluted capital Delhi, the National Green Tribunal has banned all diesel vehicles over 10 years old. According to Car Dekho, Delhi has the highest number of cars in India and records show that 2.8 million of those vehicles are more than 15 years old.

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31/03/2015 15:57

5 15:57

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SuperUnleaded is your new motoring service station where you choose what’s important. Like a post? #AccelerateIt up The Grid for others following in your slipstream and help set the starting line-up of timewasting content for everyone else.

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We Go Racing At Silverstone, Have A Massive Crash

The Top 10 Embarrassing Moments We’ve All Had

We sponsored a beetle in the Fun Cup racing series, which made its track debut at Silverstone earlier this month brandishing fantastic SprUnld decals. Visit: sprunl.de/oqfu0

What’s the most embarrassing thing you’ve been caught doing behind the wheel? Or do we not want to know? We run down the top ten according to a national survey. Visit: sprunl.de/xk2s7

Ex-Stig Ben Collins Tells Us Top Gear Needs A Reboot

This Replica Ferrari F40 Makes Us Sad, So Very Sad

With Clarkson having been binned by the BBC, the future of Top Gear seems bleaker than ever. Former Stig and expert helmsman Ben Collins thinks it could go on, albeit with a refresh. Visit: sprunl.de/mgpz5

The idea of owning a supercar is merely a dream for the average motorist. However, there is a solution to this problem – but unfortunately it’s all kinds of horrendous. Visit: sprunl.de/0gq33

How To Spot One Of The Latest Unmarked Police Cars

Seven Of The Worst Camper Conversions We’ve Ever Seen

Unmarked police cars are getting harder to spot. But it’s not impossible. If you know the tell-tale signs, the unmarked cars can still be identified. Visit: sprunl.de/ll9yr

With summer on the way, roads will now begin filling up with caravans and campers. As if that wasn’t bad enough, you’ll also spot the odd, god-awful, DIY camper conversion. Visit: sprunl.de/brnb4

They’ve Rebadged It: Seven 10 Reasons Why the Honda Cars Having An Identity Crisis Civic Type-R Really Matters We get it: manufacturers sometimes have to indulge in a little product-sharing. There’s no need to redevelop an entire car just to have a different badge on the bonnet. That’d be daft. Visit: sprunl.de/8w64c

Five years on from the last, Honda is set to roll out the all-new Civic Type-R in July. It was unveiled at the Geneva Motor Show last month and we think it was well worth the wait. Visit: sprunl.de/aao91 CarDealerMag.co.uk | 19

DASHBOARD. ÂŁ4m PROJECT

Work starts on Porsche centre WORK has started on a ÂŁ4 million Porsche Centre in Aberdeen. Ogilvie Construction and Peter Vardy Ltd have broken ground at the site at Wellington Road for the state-of-the-art centre, due for completion in the autumn. A business lounge will provide facilities to stay interconnected and there will be a cafĂŠ bar, Porsche Driverâ&#x20AC;&#x2122;s Selection shop and childrenâ&#x20AC;&#x2122;s zone. Presentations to customers will be made with iPads and tablets in specially-designed consultation areas. Peter Vardy, CEO of Peter Vardy Ltd, said: â&#x20AC;&#x2DC;We intend our new dealership to reflect the quality, workmanship and sheer excitement of the vehicles we will be selling.â&#x20AC;&#x2122;

Lookers celebrates great year by rewarding its best staff Guild of Excellence Awards are now a firmly-established annual event

ookers plc has officially marked a stellar year of success by rewarding its bestperforming staff at its annual Guild of Excellence awards. Celebrating 12 months in which the company delivered its best results on record â&#x20AC;&#x201C; and a sixth successive year of profit growth â&#x20AC;&#x201C; Lookers recognised and acknowledged the contributions made from employees from every division across the UK and Ireland at a ceremony in Barcelona. The categories included dealership of the year, which was won by Renault franchise manager Jeff McCartney from Newtownards in Northern Ireland, and salesperson of the year,

George Milton from Lomond Audi in Ayr, Scotland. All UK regions were represented in the final winnersâ&#x20AC;&#x2122; line-up, with selections made based on monitored performance levels, customer satisfaction ratings and the overall profit contribution made to the group. Key sponsors of this yearâ&#x20AC;&#x2122;s award

ceremony and top categories included Shell, AutoTrader, Blackhorse, Fastrack, LKQ Coatings, Stapletonâ&#x20AC;&#x2122;s Tyres, Premia Solutions, The Warranty Group, CCS and GardX. Lookers chief executive Andy Bruce said: â&#x20AC;&#x2DC;We are delighted that our Guild of Excellence Awards are a firmly-established annual event which recognise the fantastic contribution made by all our dedicated staff, across our entire company and in every region.â&#x20AC;&#x2122; Nigel McMinn, managing director of Lookers, added: â&#x20AC;&#x2DC;The Guild of Excellence Awards are a fantastic way of showing our entire team just how much we appreciate their continued dedication and hard work.â&#x20AC;&#x2122; Go online to bit.ly/Lookers-awards to find out who won what.

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PERRYS

Group sales pass £500m PERRYS Group sales soared past £500m in 2014, marking a record year for the group. Perrys’ sales reached £530.9m in the year to December 31, 2014, up from £491.4m the previous year. Pre-tax profit also reached £10m from £6.8 million in 2013. Gross profit was £76.5 million for 2014, of which 60 per cent came from vehicle sales. In 2014 Perrys spent £1.3m on improving and refurbishing its dealerships and this is expected to increase during 2015. Perrys commented: ‘The start of the year was challenging for the group. ‘However, March is looking like a good month, with used cars doing particularly well.’ Market insight, p107

Devastated but dishonest: Rogue Jag dealer sent to jail ‘These were not victimless crimes against institutions,’ blasts judge

devastated Jaguar dealer described as ‘thoroughly dishonest’ by a Crown Court judge has been sent to prison for ripping off his customers. Nicholas Morley ran the dealership NM Jags, which operated in various locations in the Bristol area. He was put behind bars for a total of five years and eight months. The 57-year-old grandfather-of four had denied fraudulent trading between September 2006 and July last year – and being engaged in business while bankrupt. A car salesman colleague, Michael Horton, also denied fraudulent trading. But both men were found guilty of the charges they faced,

reported the Bristol Post. The city’s Crown Court was told that the dishonest duo were said to have conned at least 35 customers out of thousands of pounds by trading cars on a ‘saleor-return’ basis – but not giving their customers money they were owed. The Post said that NM Jags operated in locations such as Temple Cloud and Gurney Slade, south of Bristol, and Hartcliffe, closer to the city centre. The company also had a website called UsedJags.com. Morley, of Paulton Hill, Radstock, was made bankrupt in 1991 and 2007, reported the Post, and had ended up with debts in excess of £2 million. Judge Martin Picton, pictured,

described Morley as ‘thoroughly dishonest’ and added: ‘These were not victimless crimes against institutions. Many could ill afford to lose the money. You knew that and you did not care.’ Morley, who was also banned from being a company director for 10 years, told the court that his business had been his life and said: ‘I’m devastated, absolutely gutted. I had no intention to defraud anybody.’ Nicholas Wrack, defending Morley, said: ‘The business was run as a legitimate business, within which fraud took place. [Morley] apologises to those who have suffered as a result of his behaviour.’ He also said that Morley intended to pay the defrauded customers their money back. Horton, 27, of Heggard Close, Bishopsworth, is due to be sentenced in May.

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We’ve developed the Black Horse Roadmap to help you navigate the changes the industry is facing and use them as a catalyst to grow your business. The steps we take today will help build a sustainable platform for point of sale automotive finance. Let’s navigate the future together.

YOUR FUTURE. OUR ROADMAP. Find out more about our Roadmap for point of sale finance at blackhorse.co.uk/dealerportal or contact your Account Manager. ��| CarDealerMag.co.uk

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05/12/2014 11:39

DASHBOARD. election 2015

We love it when a plan comes together (after lots of nagging) Editor Colin Channon wouldn’t vote for any of the main parties on May 7! And here’s why...

e had a plan. A Big Political Plan, considering the general election is looming. The main political parties are all over the media at the moment, trying to score points off one another. So, we thought, why don’t we give them the chance to tell the motor industry why we should be voting for them? They’ll bite off our hand for the opportunity, we said. How wrong we were. You’d have thought the chance to address the nation’s car dealers, through this magazine and various websites, would be too good an opportunity to turn down. In reality, either the parties are very poorly organised or, to put it bluntly, they don’t give a monkey’s what we think. All of them, after initially saying they wanted to submit their 1,000 words, then missed the deadline. By days and days and days. We had to chase, we had to nag, we had to threaten.

In the end, we got there. Almost. The Greens, who want us to think of them as a significant player, didn’t answer the phone. We left a message on their answer phone (no-one came back) and we sent several emails to their press office (all were ignored). So we’ve ignored them, too. Almost. As Car Dealer is popular in Scotland, we asked the SNP to provide us with their pearls of wisdom. We couldn’t get through to anyone – noone answers their phone. So we left a message, with our office number and out-of-hours number. No-one replied. So we have ignored them. Almost. The Labour Party, the Lib-Dems and UKIP finally submitted articles, after our hassling. The Tories ignored emails galore. In the end, we went through the MP in whose constituency our office is based. Caroline Dinenage, take a bow – you responded immediately. After more phone

calls and emails, they provided fewer than 400 words, when we’d provided space for 1,000. So we asked our own Man In A Suit to write his own election manifesto to help fill the space they had left. So you get to see what life would be like in Baggott’s Britain… The whole thing left us feeling pretty bitter. I hope never again to read about an MP whining about the apathy of the public to politics. Because when they are given an opportunity to engage with a large section of the people who pay their wages, they couldn’t be bothered. Me, I’m going to play them at their own game. On May 7, I’m going to ignore them. I’ll stay in and watch EastEnders, listen to Tammy Wynette on the CD player, or wash my hair. Anything except focus on the very people who couldn’t be bothered with me. So, on the following few pages, is what the parties – finally – had to say to you all.

CarDealerMag.co.uk | 23

11:39

DASHBOARD. election 2015

Bonkers but brilliant: what I’d do if I held the keys to No. 10 BAGGOTT’S BRITAIN: Sadly, he’s not up for election, but if you fancy every Sunday and Bank Holiday off (plus free beer), read on

ccording to reports, there are 30m drivers in the UK – that’s nearly half of the population – and with car sales now having notched up their 37th consecutive month of growth, that figure is only set to increase. So ignore what those slime balls in primary colours are saying, and listen to my election motoring manifesto instead. You can’t vote for me (sadly) but you can take solace in the knowledge that if I were a candidate, I’d be standing up for what you believed in. 50mph zones These are frankly getting ridiculous. You can’t use a major motorway network at the moment without getting stuck in one. They’re everywhere, they go on forever and they are pointless. In Baggott’s Britain (BB) they’d only be allowed to take place for a mile at a time and the workmen-to-mile ratio would have to be no less than 100-1. Parking spaces Fed up of squeezing yourself out of a crack in your car that an A4 sheet of paper would find a bit tight? Yeah, me too. Car parking spaces are too small. All car parks will be forced to make every space the same size as a parentand-child spot. No more car park dents will be a welcome bonus. Supermarkets will be forced to make space by removing all self-service-there’snothing-in-the-sodding-bagging-area checkouts. Lorries banned Well, sort of. I like lorries bringing me stuff. I don’t like it when I’m stuck behind them for three miles as they overtake each other on the A34 3mph faster than each other. No one got anywhere quicker, ever, by travelling 3mph faster than someone else. EVER. So all lorries will be banned from overtaking on dual carriageways and motorways. Middle lane hoggers They’re supposed to be putting a stop to this, but if any of my recent drives are ��| CarDealerMag.co.uk

anything to go by they’re absolutely not. New laws will be passed immediately that ban any driver caught hogging the middle lane from getting behind the wheel for three months. Effective on the spot, they’d be forced to get an I Am A Hog taxi (painted pink) home for ritual public shaming. Overhead gantries What even are these? Some sort of sick joke? ‘Don’t drink and drive’ messages will be allowed, but those warnings that expect drivers to have encyclopaedic knowledge of the UK’s road designations will not. Telling people the A3 is blocked after the B3469 means absolutely nothing to anyone other than a road atlas. We’re doing 70mph, be specific. The A3 is blocked at Guildford. We gave towns a name for a reason… Drink drivers castrated There’s literally no excuse for this any more, yet people still do it. Fines aren’t working, bans aren’t working, so in BB the government would take things a little more seriously: Chemical castration. You absolutely wouldn’t drink-drive then, would you? If you’re stupid enough to be caught a second time, it’s surgical castration. No point letting these idiots infect the nation with offspring.

Pre-registrations Come on, we know you do it, you know you do it, so why not come clean? This ridiculous charade of 37 months of consecutive growth isn’t fooling anyone. I’ve banged on about it before so in BB we’re changing the rules. The DVLA would report sales figures, not the industry, and would be transparently split between retail and fleet. Then we’d know who was calling the rental companies on the last day of the month and shifting thousands… yes, I’m looking at you, [redacted]. Oh, and also… Obviously I’d do all the other things you want. Cut taxes, increase spending on the NHS, increase motorway speed limits to 81mph (1mph better than 80mph), ban speed cameras, increase traffic cop numbers (to fill up I Am A Hog taxis), make all beer free, ban Mondays, make VAT easy to understand, increase Bank Holidays to once a month and insist all car dealers are closed on them and on Sundays (for the families). That last one is getting me in Downing Street. You with me?

‘Our aim is to make the UK the best place to start a firm’ TORIES: Businesses are leading the economic recovery like never before – and roads across the country are being transformed

usinesses are the lifeblood of our economy, bringing jobs and economic security to villages, towns and cities across the UK. Whether it’s an internet dealership, a shop front or a car manufacturer, business owners work tirelessly, invest their own hard-earned money and make sacrifices to help their businesses grow, succeed and take on staff. Our long-term economic plan is backing businesses with lower taxes, less red tape and better access to the finance they need to grow. We’re cutting corporation tax to the jointlowest level in the G20. With corporation tax dropping to 20 per cent from April, we have the lowest rate in the G20. We’re cutting the jobs tax, to make it easier for businesses to take on new people. From April 2014 we cut the jobs tax on businesses – National Insurance contributions – by £2,000.

It means 450,000 small businesses, one third of all employers, pay no jobs tax at all. And we’re helping small businesses with business rates. We have doubled small business rate relief to April 2016 – helping over half a million small firms. The result is that businesses are leading our economic recovery like never before, creating jobs, driving growth and building better communities. At the same time we’re helping out the car industry and the drivers who benefit from it. Figures out this month from the Society of Motor Manufacturers and Traders have shown that this March was the best month for new-car registrations since 1999. We have invested £9 billion in our strategic road network since 2010, and set out a plan to invest £15 billion over the rest of the decade. Through this we are transforming roads

across the country. Investment over the next five years includes £9 billion for major schemes, like improvements to the A1 in the north of England and the A303 in the south west. Eighty per cent of our strategic roads will be resurfaced, 1,300 lane-miles of road added, and more than 60 junctions improved as part of our plans. And we’ve broken records in our investment in tackling the scourge of potholes. We know there is much more the government can do to help the industry. But our goal is to make the UK the best place in the world to start and grow a firm and we have a plan to get there.

‘Figures out this month from the Society of Motor Manufacturers and Traders have shown that this March was the best month for new-car registrations since 1999.’ CarDealerMag.co.uk | 25

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3OHDVH FRQWDFW WKH $OSKHUD WHDP RQ RU YLVLW ZZZ DOSKHUD FR XN ï¿½ï¿½| CarDealerMag.co.uk

DASHBOARD. election 2015

Britain only succeeds when working families succeed LABOUR: Investing in skills will be one of the most important drivers of our national success... and we will tackle the late payment of invoices too

he British motor industry – from manufacturers and suppliers to dealerships and mechanics – is a vital component of the British economy, and Labour supports the work you do. The choice at this election is between a failing plan and a better plan for working families. Labour’s plan is based on a simple truth: that Britain only succeeds when working families succeed. That’s why Labour’s plan offers a better future, based on a strong economic foundation. Labour has a better plan for Britain’s businesses, which will provide the support and certainty you need to grow and thrive so you can create more secure and better-paid jobs across the country. That means unleashing the potential of British business to grow and create well-paid jobs in a broad range of sectors. The biggest risk facing business in Britain is a government which leads Britain towards the EU exit, threatening millions of jobs and undermining investment in the UK. Labour will return Britain to a leadership role in Europe and not put at risk the firms and jobs that rely on our biggest export market. Labour’s plan is focused on creating more better-paid, secure jobs to support aspiration, boost long-term investment and encourage innovation, and help Britain pay its way in the world. Like families, businesses are being hit by the cost-of-living crisis. Many small and mediumsized firms are struggling with rising costs and a lack of finance from the banks – a problem that must be solved to get our economy growing in a more balanced way. To help business and boost consumer confidence, Labour will not put up VAT or

National Insurance. British businesses want to be able to compete through higher skills, higher wage business models, without being undercut and dragged into a race to the bottom. Labour will ensure Britain has the most competitive corporation tax rate in the G7, and we will cut and then freeze business rates for more than 1.5 million small business properties. We will tackle the late payment of invoices – the scourge of small businesses. There will be a new requirement on larger businesses to set out the extent of their late payment of bills and the action they have taken to compensate suppliers. The motor industry, like other businesses, struggles to recruit skilled workers. Investing in skills will be one of the most important drivers of our national economic success in the 21st century. Under Labour every young person who gets the right grades will have a right to a highquality apprenticeship. And as part of our relentless focus on the quality and quantity of apprenticeships, Labour will introduce a new gold-standard Technical Baccalaureate for 16-18 year olds and ensure all young people study English

and maths to 18, so more young people are apprenticeship-ready when they leave school. Labour will invest in this country’s infrastructure. Motorists have seen the quality of our roads deteriorate with rising congestion and promised road improvements not being delivered. We will support long-term investment in main routes across the country and work to improve the condition of local roads. Above all, we deliver a business environment in which small and medium-sized businesses can provide the dynamism and growth, which will drive the British economic engine.

The biggest risk facing business in Britain is a government which leads Britain towards the EU exit, threatening millions of jobs and undermining investment in the UK. CarDealerMag.co.uk | 27

DASHBOARD. election 2015

Making sure the industry is dynamic and competitive LIB DEMS: In government, we have a strong record of action for the motor industry – and there is a lot more we will do in future

he Liberal Democrats will build a stronger economy in which businesses large and small can prosper and grow, creating jobs and opportunity for everyone. With the Liberal Democrats in government, the British automotive industry has flourished, taking on 15,000 more employees and increasing production by more than a quarter of a million cars a year. In 2013, Lib Dem business secretary Vince Cable launched the government’s automotive strategy: a clear plan to ensure the future of the industry is diverse, dynamic, growing and globally competitive. Car plants are integral to local economies. The Jaguar Land Rover plant in Solihull has employed more than 11,000 people since 2010, the Mini plant in Oxford produces around 170,000 cars a year and Nissan is investing more than £250m in its plant in Sunderland. We will continue to support the motor industry by cutting the burden of taxes and regulations on small businesses, securing the economic recovery, investing in Britain’s roads, improving relations with trade partners in Europe and around the world, and making sure Britain leads the way in the creation of greener, cleverer and safer cars in the future. The motor industry isn’t just made up of big multi-national corporations, it’s supported by a gigantic web of small engineering companies, designers and, of course, the dealerships that actually sell the cars. We are supporting Britain’s five million small and medium-sized businesses, who employ more than 15 million people between them. Our start-up loans scheme has helped more than 25,000 get off the ground, and existing businesses have seen their corporation tax cut from 28 per cent to 20 per cent. We’ve doubled business rate relief so 385,000 small businesses now pay no rates at all, and a million have benefited from our employment allowance, which gives them a £2,000 National Insurance cut. Despite that progress, small and mediumsized businesses still don’t have enough freedom ��| CarDealerMag.co.uk

because of restrictive regulation and taxation. That is why we would establish a Regulations Advisory Board to monitor regulation and scrap it wherever necessary. We would also prioritise cutting business taxes for small and mediumsized businesses. Mike Hawes, chief executive of the Society of Motoring Manufacturers and Traders, has said: ‘Britain’s EU membership is fundamental to investment, growth and jobs in automotive companies of all sizes. The position of the UK automotive industry is clear. Being part of a strong Europe is critical for future success.’ We agree. Like 92 per cent of car manufacturers, the Liberal Democrats want to stay in the European Union and work with our European neighbours – the customers for half of our vehicle exports – to boost the automotive industry. Our membership of the EU gives British companies access to a market of half a billion consumers with no export tariffs and the same trade rules, customs rules and consumer protection laws. The Liberal Democrats want the UK to lead the world in new car technologies. Last year, Nick Clegg announced £500m of government investment to boost the ultra-low emission vehicle industry. This included £100m in research and development to cement Britain’s place as a world leader in electric car technologies. We are committed to tackling the threat of climate change, and thanks to the innovation and ingenuity of the automotive industry over the past decade, new cars’ CO2 emissions have fallen

by more than a quarter, even as we’ve seen 3.5 million more cars hit the roads. We have given companies grants to develop greener technology, such as our £13.1 million grant to Ford in the UK to upgrade their EcoBoost engine. In government, the Liberal Democrats have moved our economy from rescue to recovery, and in the next parliament we will move it from recovery to renewal. We’ll support the automotive industry through investment in roads and new technologies, and by enhancing our links with trading partners. We have a strong record of action for the motor industry in this government, and a promise of much more for the future.

So why vote for people who want cars off the roads? UKIP: Drivers are expected to pay the earth to run a car – but is anyone actually giving proper attention to the infrastructure?

rivers and the motoring industry have seen a plethora of rules and regulations over the past 20 years which seem to target unfairly the use of a private car. We have parking charges which are almost punitive, a reduction in parking spaces, road space reductions where congestion is already an issue and traffic lights at almost every junction, including on roundabouts where smooth traffic flows have been replaced by congested stop/start traffic. Commuting to work by car has become ever more difficult and some local authorities are even planning to charge drivers for parking at work. Speed cameras fine unwary drivers as speed limits continue their downward spiral, with 20mph zones being rolled out across whole swathes of towns and cities. Motorways, which are our safest roads, are being ‘upgraded’ to managed motorways with the hard shoulder being removed and variable speed limits, along with speed camera enforcement, every few hundred metres. The hard shoulder was built for safety, not as an additional lane on the cheap. Despite decades of population growth, we have hardly any new roads and effectively the same motorway capacity as we had in the early 1970s. The only new motorway to relieve congestion around Birmingham is the M6 Toll, which is a privately-owned toll road costing £5.40 for a 27-mile journey. Is this really a fair way to treat drivers when more than £50 bn every year is paid in motoring taxes to the government? It cost roughly the same to upgrade Reading railway station as to build the M6 Toll, yet the railway station is taxpayer funded and the

motorway is not. Labour and the Conservative governments are spending taxpayers’ money on rail upgrades such as Crossrail (£16bn), Reading station (£895m), Birmingham New Street Station (£700m) and, of course, the planned spending on HS2 (£55bn). All this when no new capacity is added to the road system and maintenance of our roads is almost non-existent. We welcome plans to keep the rail network efficient and modern, but HS2 is not needed and we would cancel this project. The limited spending on road repairs and maintenance seems to go on traffic-calming, traffic lights, managed motorways and reducing road space such as turning dual carriageways into single lanes with white lines and buildouts. Almost nothing is spent on resurfacing our roads. It seems the car driver is expected to pay the earth for using a car yet the infrastructure required for smooth, efficient journeys is the last thing on the minds of past administrations. Why do we keep voting for people who seem to want to drive cars off the roads?

UKIP is not anti-car and embraces the freedoms owning a car can offer. UKIP’s transport policy is designed to help drivers go about their journeys with as little cost and intervention as possible. UKIP will never introduce a road-pricing system and will remove all road tolls wherever possible. UKIP will remove the compulsory requirement for E-Call, which is fitted to all new vehicles from September this year. E-Call is a system to call the emergency services in case of an accident, but it also knows your location and has the ability to report your position at any time. This is an infringement of privacy and we believe it is for the owner to enable/disable this system as a matter of choice, and not to be fined or have an MoT failure because the system is not working. UKIP is the only political party to recognise the damage being done to the haulage industry with the EU-directed requirement for drivers’ CPC. UKIP would remove the CPC requirement for HGV/LGV drivers. The British licensing system was not broken but because of EU meddling, it now is resulting in a shortage of professional drivers who are leaving the industry. UKIP believes Britain needs a sustainable transport policy which is fair to all and serves the needs of our country. We support the use of all forms of transport as an option and will not engage in trying to change behaviour of drivers to force them on to public transport or bicycles. We would also stop the unnecessary destruction of our roads through narrowing of carriageways, lane reductions on dual carriageways and adding traffic lights to roundabouts or working junctions.

‘UKIP’s transport policy is designed to help drivers go about their journeys with as little cost and intervention as possible.’ CarDealerMag.co.uk | 29

GET YOUR SMART FINGER OUT AND MAXIMISE THE EXPOSURE OF YOUR USED CARS

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04/03/2015 1

DASHBOARD. election 2015

They had nothing to say....

...and neither did they.

CarDealerMag.co.uk | 31

04/03/2015 14:12

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��| CarDealerMag.co.uk

DASHBOARD. election 2015: SMMT

We need consistency and the right business environment

SMMT: The next government needs to keep supporting Britain’s automotive industry and make sure the UK is the most competitive place for business

he UK automotive sector is going from strength to strength: new car registrations saw their highest month this century in March, while the industry is on course to be making record numbers of cars within the next few years. Integral to this success has been the support of government working with industry, and it is important this continues in the next parliament. Consistency is key. Support for ultra-low emission technologies – both in terms of R&D and encouraging uptake – will be of vital importance in the coming years, as the industry continues to invest heavily in making cars more efficient and environmentally friendly. The market for plug-in cars is expanding rapidly here: registrations quadrupled in 2014 from 3,500 to 14,500 – and figures so far this year suggest a similar trend for 2015. Continued support for the plug-in car grant will be crucial, as well as initiatives such as the recent £43 m investment into plug-in vehicle infrastructure and R&D in the UK. One key element of the recent success of UK automotive is the Automotive Council. Set up under the previous Labour government in 2009 and fully supported by the Coalition, the Council has since provided a platform for government and industry collaboration to address the challenges and seize the opportunities for

the UK sector. In 2013, the Council launched the Automotive Sector Strategy, a 10-year, £1 bn plan to put the UK motor industry at the forefront of global vehicle development. It has already played a major role in attracting millions of pounds of inward investment, supporting the next generation of engineers and strengthening the domestic supply chain. For the sector to continue to flourish, we need the next government to maintain this support and ensure the UK is the most competitive place for automotive business. Innovation in our industry is developing staggeringly fast, and the UK is already one of the world’s leaders in this area. One of the most significant developments of the past few years – and another product of the Automotive Council – is the Warwick University-based Advanced Propulsion Centre (APC), which was opened last year and is already helping some of the best ideas come to fruition. We are looking for continued funding

for initiatives such as the APC, and to increase the rate of R&D tax credits – a key incentive for companies to invest in developing the vehicles of tomorrow. Finally – and one of the big talking points surrounding this election – is membership of the European Union, which is critical to the future of the UK automotive industry. Last year the SMMT carried out a survey of its members, with 92 per cent of respondents saying that remaining in the EU – but a reformed EU – would be beneficial to their business. The reasons? Firstly, being part of the EU gives us access to a single market, which facilitates trade and stimulates business expansion. Also vital is the free movement of labour. Other benefits from EU membership are integrated supply chains, international trade agreements, common regulations and funding for innovation. SMMT wants to see reform of the EU – we need more emphasis on industrial competitiveness and better regulation – but our members do believe membership remains best for business. Ultimately, what UK automotive needs to maintain and consolidate its position as a world-leading innovator and manufacturing hub is very simple: consistency and the right business environment to support continued global competitiveness and growth. [CD]

‘The SMMT wants to see reform of the EU but our members do believe membership remains best for business.’ CarDealerMag.co.uk | 33

GET MORE

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Get ahead this plate change manheim.co.uk ��| CarDealerMag.co.uk * Figure based on sales between 1st March to 31st May in 2012 - 2014 plus 2015 stock forecast in the same period. Figures exclude private sales.

MANHEIM

big mike.

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

How quick thinking came to the fore when I sold a lovely old Jag

ar dealers are wily old people, and we’ll do anything to secure a sale. I was reminded of this the other day over a pint in the Crab and Cleaver with my old buddy Doug, who used to run a car lot not dissimilar to my own over the other side of town. There was many a time when we helped each other out, swapping stock or directing customers to each other’s sites if we didn’t have what they wanted. I recall about 20 years ago, when Doug belled me excitedly to tell me he had a client currently on his way to my lot, to have a look at a British Racing Green Jag that I’d picked up from Walsall auctions the previous week. The Jag was a lovely old thing, a 4.2-litre XJ6, 10 years old but amazingly free of the corrosion that used to blight the old things so badly. I knew that if the punter was in the market for a smart old Jag, he’d find it hard to resist – but it was only when I came off the phone that I remembered I had a job on the to-do list before retailing it. It was a simple fix. The bush on the nearside front antiroll bar mount had perished, meaning every time you hit an uneven bit of road, it would clonk like a good ’un. The kind of fault that you or I know is an easy-enough fix, but may well lead a customer to think the front suspension was about to fall off, such was the racket. The thing is, from what Doug had told me, the sale was on. I had roughly 10 minutes to rack my brains and come up with a solution, and by Jove I got one! As the customer pulled up at my lot in a really quite smart-looking Granada Ghia X, which I was more than happy to take in part-ex, a brainwave struck me. I scuttled over (or waddled, to be fair) to the boot of my own smoker, an old Rover V8, in which I’d luckily stashed my golf bag, and retrieved my ammunition. As suspected, the customer was hugely enthusiastic as he caressed the Jaguar’s curves. It was, he said, the perfect car and the perfect colour, and that if it drove as well as it looked, we’d pretty much be on for a deal. After I’d fired up the old XK engine and let it settle to a gentle purr, showed him through the sheaths of service history and pointed out how fresh and clean the oil looked, I had him on a hook – all except for one thing. The clonk. Unsurprisingly, the deadly knocking manifested itself within 200 yards of my lot. ‘Clunk’ went the nearside front, every time we hit a bump. ‘Clunk, clonk, clunk’. It was really rather embarrassing. I bluffed my way through as much as I could. ‘Hmm,’ I

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

said. ‘It never made this noise when I took it home for the weekend, and I used it quite a bit – the lads at the golf club loved it. Indeed, if you’d not come over this afternoon, I reckon my mate Dave would be ready to make me an offer on it. But you know how it is – you snooze, you lose…’ ‘But how could I sleep with that racket going on?’ was his admittedly witty retort. I promised, of course, to take a look at it straight away and committed to him that, if he agreed to pay a deposit, by the time he came to pick the car up I’d have made sure the noise was gone completely. He was semi-agreeable, but I could see he was more than a little concerned. After all, who would want to part with a

‘As suspected, the customer was hugely enthusiastic’ wedge of cash to buy a car they knew needed some more wedge hosing into it as soon as they got home? Back at the lot, he immediately made for the nearside front and started to feel around all the suspension mounts near the bulkhead, where the noise was at its loudest. And that’s where I pulled off my masterstroke. I leaned into the car, popped open the glovebox, and proceeded to whip out one of my golf balls. ‘Well, would you believe it!’ I exclaimed. ‘Of course. After my game on Sunday I still had this ball in my pocket, which made driving a little uncomfortable, so I popped it in the glovebox for safekeeping. I even remember it clonking around on the way home. How stupid of me to forget – I told you it wasn’t coming from the suspension.’ He fell for it. Hook, line, and indeed, sinker. We did a deal there and then, I agreed a good price for the Granada in part-ex, and the following day I ordered up and fitted the anti-roll bar mount to restore the Jaguar to its useful peaceful self. It served him well, too. I took it back five years later against a state-of-the-art XJ40. And when I took it down the road, a familiar knocking noise emerged from the front lefthand corner. I opened the glovebox and there, clearly left for me to find, was a golf ball and a Post-it note. ‘You can’t fool me that easily,’ it said. ‘But it’s been a bloody lovely car.’ What a guy.

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 incredible tales along the way. CarDealerMag.co.uk | 35

EVOLVE TODAY. PROSPER TOMORROW. Introducing our new Product Guide eBook As part of our new Roadmap we’ve launched our Product Guide eBook, available to download today from the Black Horse Dealer Portal. This innovative tool is designed to help your customers understand our range of finance products in a clear and transparent way, so they can make an informed product choice that is suitable to their needs.

Download our new Product Guide eBook at:

blackhorse.co.uk/dealerportal ��| CarDealerMag.co.uk

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05/12/2014 11:39

REAL DEALS.

No creature comforts – but this Mk2 RS turbo has class and real soul ANDY ENTWISTLE takes a nostalgic trip back to his boy-racer days, when everyone wanted an Escort...

he smart money is investing in late-80s and early-90s hot hatchery right now. After all, any 1.9 205 GTi is already going through the roof, a Renault 5 Turbo can only be bought by those who bank at Coutts, and if you want a Sierra Cosworth, then you need to be willing to sell your first born. We’ve seen examples that can only be described as average going for more than £50k. Back in the 1980s, the car market wasn’t ruled by badge snobbery. Ford and Vauxhall ruled the roost and if you wanted something hot and practical, it generally wore the blue oval. Oneupmanship was more about the model indication on the back rather than the brand badge – in fact, BMW squarely aimed the E30 320 at the Escort XR3 driver. However, it was the RS turbo we all wanted. These days, the Mk3 RS turbo commands very strong values, because of its rarity, as only 5,000 were built and not many are surviving. In comparison, more than 22,000 Mk4s were produced, and this – and the fact that externally they looked much the same as the XR3i kept their values down. Until now. There are still a lot of nails out there. There was a time when you could pick one up for the same price as a fishand-chip dinner on Southend

seafront, which meant many were used, abused and bodged. Most rusted away or were thrashed until they gave up, so finding a good one is like finding rocking horse poo – and you’ll pay for it. Karl Ridley from Autocars Hull knows a good car when he sees one, and when he was offered the one pictured on this page he snapped it up. As soon as he saw it he said he knew it had soul and he was happy to pay strong money for her. Retailing at £11,980, it’s now worth nearly £2,000 more than its list price when it was new. The car has covered 68,000 miles from new, with a fully-stamped service book to verify it. It covered fewer than 5,000 miles between 2000 and 2009, and hasn’t even clocked 2,000 since 2012. It has clearly been cherished and enjoyed – there is even proof the car was presented at various shows throughout the UK, including the Kilbroney vintage show and the Banbridge Cavalcade in June 2014. Original right down to the etching on the glass, Karl is convinced the car has never been on the wrong side of a welder or a spray gun. It has the checked grey, blue and red Recaro sport seats – any boy racer’s dream at that time – and the holder for tapes in front of the gear lever.

All the original paperwork comes with the car, including the original purchase receipt showing it was bought from Bryan Brothers in Bristol in March 1989 with the additional three-year, 36k warranty! Jump inside the ‘as new’ interior and it all comes flooding back – raw sports comfort. No power steering, no air con, no creature comforts but she instantly puts a grin on your face. The car still feels quick today, and despite being 26 years old she will still hit 60 in under eight seconds. Looking for something a little different and a rock-solid investment? Yes, this is probably one of the most expensive Mk2 RS turbos out there, but we doubt you’ll find one better. Or one, as Karl says, with this much soul...

Tip-top condition – 68,000 miles and never seen a welder...

CarDealerMag.co.uk | 37

11:39

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trading up.

We’re back in business... Our charity adventure had stalled a bit, but a Rover and a Pug came to our rescue, says ANDY ENTWISTLE

o, we’ve finally started moving metal again. The Rover coupe has sold twice. A car like this one was best placed on a well-known auction site – it’s a great place to get rid of cheap or unusual stuff. But as many of you know, it’s not without a fair number of time wasters. The car was honestly described and after fielding a number of enquiries, it eventually sold to an ‘enthusiast’. We should have known what to expect... He turned up expecting a perfect car. We’ve all had them – after looking all round the car, he removed his flat cap to give his head a scratch, and started pointing out its faults, every scratch, scuff or mark. We could have been there a long time if I hadn’t interrupted the flow and told him the car obviously wasn’t right for him, and that I was happy to unwind the deal. So back it went for a second listing... The car eventually went for £850. That’s a small

but welcome profit and, as all the work was done on this free of charge thanks to John at RA Bodyworks in Sandhurst, I’m pleased to say we’re making headway. We also picked up a cheap Peugeot 307 through a member of the Blackball team. I won’t mention who it was, because we really did appreciate them giving us the car cheap – but I don’t think I’ve ever seen an interior like it... The car had been used by my colleague’s daughter, but became available when she ventured off to uni. The poor Pug had been sitting in the same place since November, and a combination of Old Mcdonalds, make-up, socks and a piece of toast, combined with a leak from a semi-opened window, meant the car had more bacteria than a biology project. I also assume the car was the daughter’s uni project that she forgot

to take with her... As luck would have it, we had a couple of work placements in on the day I got it. Well, be honest, what else are they there for other than to make tea, get the breakfast in and fumigate any health hazards... We made good headway and were about to send it for a final burning, sorry cleaning, with the local Polish work teams when someone from the company next door to us popped his head around the door. He was looking for something for his daughter and heard we may have something that could fit the bill. Given that it was likely to end up in a similar state as when I first saw it, we knocked £50 off the price if he took it without a valet. Job done – and we’re £200 better off for little or no work! In the next couple of weeks the ML should be up for sale and then we’re back in the market for more stock… After three months of bad news and moving backwards, it’s good to see that we’re starting to move forwards again. We won’t let past setbacks get in the way of our end goal!

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 Land Rover Discovery Paid: £3,600 Spent: £1,500 Sold: £3,500

Peugeot 307 Paid: £500 Spent: £50

Rover Coupe Paid: £600 Spent: £0 Sold: £800

(on a battery)

Sold: £700

Subaru Impreza Paid: £1,600 Spent: £650 Sold: £2,250

Total £700

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FINANCE.

Average part-ex sale price increases by 8.2 per cent March’s plate change should lead to more good-quality old-reg vehicles on market by DAVE BROWN @CarDealerDave

igures from Manheim’s monthly Market Analysis reveal the average selling price of part-ex vehicles rose by 8.2 per cent in February, to £3,536. This rise in value follows a slight decrease in both average age and mileage of cars at auction, down to 102 months and 78,225 miles. The data also highlights an increase in average selling price in five of the 10 vehicle segments analysed in the report. The biggest leap in value was found in the Supermini category, which saw average values appreciate by £5,880 in February. Impressive increases in selling price were also seen in the small hatchback (by £4,334) and medium family (by £3,526) segments. Daren Wiseman, valuation services

The condition of a vehicle is increasingly crucial to sealing that sale manager at Manheim, said: ‘Like many retail sectors, purchasing habits in the part-ex market are likely to be influenced by seasonal changes. We’ve certainly seen that in February, with the promise of spring weather encouraging buyers to stock up on an array of vehicles that traditionally do well at this time of the year. ‘As I said last month, dealers should ensure they know the kind of vehicles their customers want and match stock accordingly. I’d expect March’s plate change to impact upon part-ex values,

as we typically see an increased volume of good-quality, old-reg vehicles enter the market place. ‘Usually, this influx starts at the end of March, spreading out through April, so we could see a significant increase in the number of vehicles at auction next month. ‘More volume means more choice for buyers, so to make your stock stand out I’d make condition a top priority. It’s been said before but condition is increasingly a key factor in determining a vehicle’s value.’

Liam moves from Capital to Close as new chief operating officer CLOSE Brothers Motor Finance has appointed Liam Quegan as its new chief operating officer. He will manage the company’s branch network, develop the firm’s IT infrastructure and oversee core project management teams. James Broadhead, CEO of Close Brothers Motor Finance, which is part of Close Brothers Group plc, said: ‘We are delighted to have Liam on board. ‘This is a strategic appointment

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that will help us to further improve our business operations and one that ultimately underpins our ambition for growth. Liam has hugely relevant experience and a proven track record of leading large teams, with a deep understanding of the financial services industry and customer service, which will bring a new outlook to our business. ‘With his fresh approach, I have no doubt he will be a valuable asset

to our team.’ Quegan brings to the role more than 15 years of experience in the finance industry, having previously worked at Capital One. He said: ‘I’m really pleased to be joining Close Brothers Motor Finance. It’s a company with great ambition and I believe it will allow me to further develop my skills and advance my career within a growing business. I will ensure the company continues to have a strong focus on our customers.’

AUTOROLA UK

Figures up as mileages fall

THE average price of used cars sold online via Autorola UK’s remarketing portal increased by £140 to £8,624 in the first quarter of 2015, compared with Q4 2014. This is the highest average used price in Q1 since Autorola started its online price survey in 2012. Typically, Autorola says, the average age of stock in Q1 2015 was 33 months, compared with 34 in Q4 2014, while mileage fell to 21,407 miles from 22,811. ‘We have seen prices reach their high level on the back of slightly lower volumes of used cars being offered for sale in the market during the first quarter of this year,’ said Jon Mitchell, pictured, Autorola UK’s sales director.

ase

Ex-employees welcomed back DEALER profitability experts ASE plc have welcomed the return of ex-employees Paul Smith as audit manager and Amanda Sayle as senior tax manager. Jason Leach, managing director of ASE’s professional services division, said: ‘As the UK’s only accountancy firm solely focused on the motor trade, it’s great to welcome back Paul and Amanda’s industry experience and technical expertise.’ Jason is a fairly recent recruit, too, having joined the company after 22 years with PricewaterhouseCoopers.

..in association with

Your internet portal is a huge shop window of opportunity for you O

ver the past six months, I’ve helped two people source and buy new cars, and it’s been an interesting insight into converting telephone leads into done deals. I’ve discovered that some people really need to sharpen their pencils somewhat if they are to be more successful at bringing down their average cost of advertising by becoming more efficient at the basics. On both occasions, I have visited a web-based portal and entered some basic details on the vehicles, before drilling down to the specific derivative and, of course, the distance willing to travel on both occasions. Personally, the distance between my home and the dealership isn’t an issue, providing the level of service

Jonathan

Such

‘It might not seem the TIME IS most enjoyable part of MONEY your job but it cannot be underestimated’ which is delivered front-end stacks up and the product is of the desired choice. The first thing which stood out on both occasions was the difference in quality of the photographs of the vehicles, with the poorer examples having a maximum of three photos where the general overview given of the vehicle wasn’t good enough, and the better-quality examples having more than 10 photos, which gives potential customers a good view of the car to help grab their attention. To further create interest in the potential customer’s mind, there was also a startling difference in the descriptions given of the vehicles with, once again, the poorer examples giving as few as two lines and the better

examples not overkilling things but giving sufficient information to further build on the attention that the photographs created, and giving the customer a real desire to take matters a little further with contact with the dealer. An internet portal really is one example of your shop window, which means you need to take the opportunity to make a difference in doing things in the best way possible. It might not seem like the most enjoyable part of your job, but it cannot be underestimated. On both occasions, once I had located a vehicle, it was time to make the call to the dealership and take the inquiry to the next level. There was little surprise to me that variation was present in how people dealt with telephone inquiries,

Turn over page for more finance stories with the better examples being the dealerships that ended up doing the business with two car sales. It may sound simple but having the sufficient product knowledge, coming across well and being able to converse effectively over the phone, showing some personality with the customer and seeming to want to do the business by always coming back as agreed all have some consequential impacts on potential customers – they either buy from you or they choose to go to the next car on the portal and see if somebody else can deliver. And that really is the point. Customers have an array of choice and they have absolutely no loyalty to you. But that’s where you come in. It’s well within your power to stop them moving on to the next choice by getting what you do right.

Who is Jonathan Such? Such is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk

CarDealerMag.co.uk | 41

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO... ROADSTERS MAZDA MX-5

MINI ROADSTER

AS part of its payment contract plan, Mazda is offering an enticing zero per cent APR deal with no deposit on the two-seater Mazda MX-5. To add to this, customers will receive a £1,500 deposit contribution. Notable features of the Mazda include 17-inch bright alloy wheels, 6.1-inch screen with the Mazda Navigation System as well as heated leather seats. The plan lasts for a total of 43 months with payment of £289.56 for 42 of those. The optional final payment is £5,854.38 as the total amount made payable stands at £19,520. As well as this, buyers can choose to pay a deposit to reduce their monthly payments. A £4,000 deposit will lessen the payments to £194 per month, whereas a deposit of £1,000 will bring the monthly spend to £266.

THE Mini Cooper edition of the Roadster is available on a 48-month plan at £219 per month with a 1.9 per cent APR. The Mini Roadster swaps its rear seats for a larger boot, convertible roof and bundles of on-road fun. The total deposit as part of the deal is £2,999, with Mini offering a deposit contribution of £641.35. The optional final payment amounts to £6,237, and in total customers will pay £20,171.35. As part of the deal, annual mileage is limited to 10,000 miles. The car, which has a 1.6-litre engine and 122hp, has rib-spoke alloy wheels and boasts a quirky interior and exterior design. There is also an additional option for customers, namely, the Pepper Pack, which includes extra accessories such as 15-inch alloy wheels as well as heated mirrors and washer jets.

Service plans ‘just as good as PCPs for keeping customers’ Service contract provider says similar results are being reported by a wide variety of sales outlets

ervice plans are proving as effective as PCPs when it comes to retaining customers, says The Warranty Group. The service contract provider says similar results from both are being reported by the franchise dealers, independent garages and car supermarkets with which it works. Serkan Obuz, head of corporate sales and training, said: ‘PCPs have long been thought of as the leading tool for customer retention within the motor industry, but the results we are seeing from service plans are very much comparable. ‘In terms of building a relationship, both products are actually very similar in that they keep the customer returning in a structured manner over the lifetime of a contract. ‘Within that period, it is up to the dealer to

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by REBECCA CHAPLIN @BelieveBecca perform well enough that the customer builds up a level of trust and eventually buys another car on PCP or another service plan.’ Obuz said that PCPs and service plans were sold as complementary products in many dealerships and increasingly in the used-car sector. ‘New cars are often sold with manufacturer service plans as part of their proposition, but as PCPs increasingly gain traction in the used market, we are also seeing increased penetration of service plans. ‘A customer who is financing a three-year-old car on a three-year PCP is a natural prospect for a

service plan. Dealers who are able to offer a single monthly figure covering the financed amount and planned maintenance are finding this proposition has a high level of appeal to customers who prefer a “pay monthly” approach to motoring.’ The Warranty Group is one of the largest providers of extended warranties in the world, offering comprehensive service plans and insurance policies that provide security for consumers and predictable revenue opportunities for manufacturers, distributors and retailers of almost every type of consumer product available today. It provides a comprehensive range of insured and non-insured warranty products for both new and used vehicles.

..in association with

Garside SLK 250 CDI

time is money

Look on the bright side

THE SLK 250 CDI is the first diesel power roadster released from Mercedes. This sporty little number with a four-cylinder engine and 204hp can go from 0-62mph in 6.7 seconds. Mercedes is currently offering a payment plan for this roadster of 36 months for only £299 per month with a 5.9 per cent APR. This deal is based on a standard model with metallic paint. Customers will have to pay a deposit of £3,499 along with Mercedes contributing £7,197.34. Alongside this, the plan has an optional purchase for the car at £16,200. Including the purchase activation fee of £10.00, this brings the total amount payable to £37,195.34. More notable features of the SLK include 17-inch alloy wheels, neck-level heating vents and the Mercedes COMAND Online System for navigation and entertainment.

iVENDI

SAINSBURY’S ‘SCAM’ SENTENCING BANK

Expansion sees debut of chief finance and compliance officers

Index reveals potential for sales by September

iVENDI has appointed its first chief finance and compliance officers. Frances Lawrence has been named as CFO. After beginning her career at Ernst and Young, she now acts as CFO to a number of growing companies including GenieConnect and LBS Innovation. Kirsten Cutler is the compliance officer. She started her career with RBS as a mortgage underwriter as well as working in fraud, litigation, complaints and risk. More recently, she has been involved in compliance for the instalment loans market. James Tew, CEO at iVendi, said the appointments were an indication of the speed at which the company was expanding. ‘In recent months, we have signed a number of deals with car portals, major dealer groups and finance providers for our online finance tools that will see us grow very quickly indeed during 2015. ‘These new appointments are being made to provide the additional infrastructure we need as this expansion starts to get under way, and we are very pleased to welcome Frances and Kirsten on board.’

ALMOST one in four adults is thinking about buying a new car in the next few months, according to research by Sainsbury’s Bank. And the average amount each individual anticipates spending is £10,290, slightly lower (nine per cent) than six months ago when the average was £11,249. The figures come from the Sainsbury’s Bank car-buying index, which tracks consumers’ car-purchase intentions. The research reveals consumers are increasingly choosing a loan or other finance to pay for a vehicle, with 42 per cent of car buyers intending to use some form of finance, a two percentage point increase on six months ago. The figures show 23 per cent of adults are considering changing their car before September. Simon Ranson, head of banking at Sainsbury’s Bank, said: ‘It is certainly a great time to buy.’

ummer is just around the corner, but how much thought have you put into it? Summer for the car industry has its ups and downs because of consumers saving for a much-needed holiday and then venturing off to better climes. However, there are still great sales opportunities for the clever car salesman or car dealer and I’ve seen many approaches. I’ve seen dealers who go to great lengths to acquire hard-top/soft-top convertibles. These are the obvious cars that people start looking for at this time of year, but like I say, this is the obvious option. There are lots of other little tweaks to your advertising that will assist in those summer sales. When constructing your adverts you could put the convertibles as the main vehicle. That way, you’ve captured the consumer’s attention. Then it’s about air conditioning. Most cars have air-con as standard now. However, when it’s hot and stuffy and you’re looking for a new car it’s a high priority, so make sure this is prominent enough to be noticed as a key selling point. This way, you’ve gone from getting them hooked on one car to keeping them interested in others. While on the subject, you could offer a free air-con check and discounted service. This may cost you a little upfront but it provides great opportunities to sell or gain new leads. It’s summer, so how about fun, family-type days? Barbecues? Ice creams? I understand the forecourts are full of cars and you don’t want screaming kids near your precious merchandise, but if you change your mind-set to ‘these little bundles of joy’ you can gain access to a far greater market. So, while the sun starts to shine bright, think of those potential customers and get planning something to capture them!

‘How about fun, familytype days? Barbecues? Ice creams?’

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 | 43

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Our approach to applications combined with our industry high conversion rate, allows you to sell more cars, more quickly. Decision in 30 minutes Repeat Business for You Step by Step Guidance Simple Application System Industry Leading Ethical and Responsible Lending

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forecourt. UNDER THE BONNET

INTERIOR

The diesel motor offers adequate punch for the size of car, though it’s not the most refined unit

Well-padded seats make the cabin a comfortable place, though the interior design is dated.

LOOKS

Subaru Outback

The chunky profile offers some of the presence of an off-roader but without being too in-your-face

Does the latest incarnation of this off-road estate stand up when compared to its premium rivals? Chris Lloyd finds out What is it? The Subaru Outback is the fifth version of the Japanese company’s off-road estate. Despite its serious off-road abilities, the Outback’s main focus is comfort, with a pliant and smooth ride on and off the road. Thanks to its estate body, and increased size, interior space is another of the car’s good points. The Outback’s raised ride height may make loading heavy items into the boot a little tricky, but there is plenty of space on offer.

What’s under the bonnet? The Outback is available with one petrol and one diesel engine. The 2.0-litre diesel motor puts out 148bhp, taking 9.9 seconds to accelerate to 62mph and is capable of 46.3mpg in ‘Lineartronic’ automatic form. CO2 emissions of 145g/km place the automatic in the £145 tax band, though the manual just breaks the 50mpg mark. The petrol meanwhile has a Lineartonic gearbox as standard

and produces 173bhp, returning impressive claimed fuel economy of 40.4mpg and taking 10.2 seconds to sprint to 62mph.

What’s the spec like? Two versions of the Outback are available – SE and SE Premium. Both are very well equipped with even the entry-level trim including dual-zone climate control, heated front seats, an electric driver’s seat, electric folding wing mirrors, automatic LED headlights, a seveninch touchscreen media system and 17-inch alloy wheels.

What’s it like to drive? Though it may offer some genuine off-road ability, the first impression of the Outback is how easy it is to manoeuvre. With very good visibility all-round, the driver has a clear view of the road ahead, and over their shoulder when changing lanes. We drove the diesel model with the Lineartronic automatic gearbox. This

transmission feels well matched with the engine, changing gear smoothly and offering power when you need it. The 2.0-litre diesel might not be the strongest of motors, but it will provide adequate muscle for most drivers.

WHAT DO THE PRESS THINK?

the knowledge Model:

Subaru Outback 2.0D SE Lineartronic Price: £29,995 Engine: 2.0-litre, fourcylinder diesel Power: 148bhp Max speed: 124mph 0-62mph: 9.9 seconds MPG (comb’d): 46.3mpg Emissions: 145g/km

target buyers:

Autocar said: ‘The Outback is cheaper than similarly-sized premium rivals, a bit more upmarket-feeling than more budget SUVs and is characterised by that unpretentious, durable, ‘go anywhere for the rest of time’ feel that Subaru loyalists swear by.’

VW Passat Alltrack, Skoda Octavia Scout, Volvo XC70

WHAT DO WE THINK?

Key Selling Points:

The Outback’s strongest suit is how capable it is over rough, rutted tracks, despite offering very high comfort levels on Tarmac. It may compete against a number of estate car-based 4x4s, but we’re confident owners would get further off-road with the Subaru than most of these. For the price, the Outback also includes a long list of standard kit.

Those who need a spacious car with real off-road ability but don’t want the SUV styling

the rivals:

1. Genuine off-road credentials 2. Spacious and comfy cabin 3. Strong value compared to its rivals

Deal Clincher: It will take buyers further – and in greater comfort – off-road than most jacked-up estates CarDealerMag.co.uk | 45

��| CarDealerMag.co.uk

forecourt. ECONOMY

All-new TT Roadster models feature lowest predicted running costs in class (CAP Monitor, March 2015).

INTERIOR

Virtual cockpit is intuitive, and as well as the digital display, the rest of the instruments are sensibly laid out.

STEERING

Audi’s new progressive steering system (fitted as standard to all versions) provides a pleasingly direct feel.

Audi TT Roadster

The all-new TT Roadster offers a more focused driving experience and improved dynamics. Dave Brown reports What is it? Unveiled 20 years ago at the Frankfurt Motor Show, the original TT quickly became one of the most popular sports cars around after its subsequent launch, largely due to its groundbreaking design. The second, more talented generation followed in 2006 and now we’re on to stage three. Working on the basis that ‘if it ain’t broke, don’t fix it,’ many design features of the third-generation TT are reminiscent of the first one. However, there have been plenty of changes in terms of the car’s platform and chassis.

What’s under the bonnet? Two engines are offered: a 2.0-litre TFSI petrol developing 227bhp, which is available with either front-wheel drive or Quattro all-wheel drive; and a 181bhp 2.0-litre TDI diesel with front-wheel drive. The petrol car is the obvious choice for performance fans, as it zips from 0-62mph in a respectable 6.2 seconds. The diesel

still acquits itself well, however, taking 7.3 seconds to cover the same sprint, and returning combined fuel economy of 65.7mpg in the process.

What’s the spec like? Two specification levels – Sport and S Line – will initially be offered in the UK. Both include Audi’s virtual cockpit, which is based around a 12.3-inch high-resolution LCD display that fills the driver’s instrument binnacle and replaces traditional analogue dials. We loved the sports seats with their Alcantara and leather upholstery and the air con controls placed in the centre of the circular air vents (optional, admittedly) are very handy. The ingeniously-engineered fabric hood closes in 10 seconds at speeds of up to 31mph. It’s very cool.

The virtual cockpit is really intuitive, and in addition to the digital display, the rest of the instruments are laid out in an easy-to-understand fashion. The 2.0-litre petrol engine of our test car was willing and eager. Overtaking manoeuvres are a breeze and the car is happy on a more relaxed cruise.

WHAT DO THE PRESS THINK? Express.co.uk said: ‘It remains an attractive and notable presence on the road.’ Newcarnet.co.uk praised the car’s ‘tenacious grip and near impeccable road manners’.

WHAT DO WE THINK?

We’d happily take delivery of a TT Roadster tomorrow. It is a mixture of engineering excellence, state-of-the art technology and unbridled driving enjoyment. We particularly liked the What’s it like to cockpit set-up. The fact that Audi drive? have moved the game on while not We loved it. We had a thoroughly enjoyable drive – and on a changeable straying too far from TT’s roots shows real confidence in the fact that they day weather-wise, the fast-acting got the basics right first time. fabric roof really came into its own.

the knowledge Model:

Audi TT Roadster 2.0 TFSI S line 230PS 6-speed manual Price: £40,255 (as tested) Engine: 2.0-litre, four-cylinder, turbocharged, petrol Power: 227bhp / 370Nm Max speed: 155mph 0-62mph: 6.2 secs MPG (comb’d): 47.1mpg Emissions: 140g/km

target buyers: Those in the market for an upmarket and stylish twoseater.

the rivals: BMW Z4, Mercedes SLK and Porsche Boxster.

Key Selling Points: 1. Iconic TT design. 2. More power than predecessor, lower emissions. 3. Fast-acting fabric roof.

Deal Clincher: Strong brand image; that distinctive TT ‘look’. CarDealerMag.co.uk | 47

forecourt.

MG 6

INTERIOR

Plump seats are comfortable, though dash layout could be clearer

LOOKS

Design inside and out is bland, though it’s not offensive either

the knowledge

Model: MG 6 TL Price: £17,995 Engine: 1.9-litre, turbocharged four-cylinder diesel Power: 148bhp Max speed: 120mph 0-60mph: 8.4 seconds MPG (comb’d): 61.4mpg Emissions: 119g/km

target buyers: Buyers on a tight budget who want a spacious new car

the rivals:

Ford Focus, Vauxhall Astra, Skoda Octavia

Key Selling Points: 1. Very low prices 2. Extremely long list of standard equipment 3. Spacious, comfortable cabin

Deal Clincher: No rival can offer so much equipment for such low prices ��| CarDealerMag.co.uk

UNDER THE BONNET

Just one engine is available – an economical diesel unit

on test

Buyers will get lots of bang for their buck with the new MG 6 What is it?

WHAT’S UNDER THE BONNET?

The MG 6 was the first new car to come from MG after the company was taken over by Chinese giant SAIC in 2011. MG claims the new version of this large hatchback not only significantly undercuts established rivals, but includes much more standard kit than all of them, giving buyers the most bang for their buck possible. MG has pared down the 6 range so it consists of one diesel engine and one body style – a five-door hatchback. The petrol engine and the Magnette saloon have been dropped from price lists. This large five-seater hatchback measures up at a similar length to the Skoda Octavia and features no-haggle pricing which, in the words of MG, means all buyers pay the same low price.

Just one engine is available – a 148bhp 1.9-litre turbodiesel. This motor powers the MG 6 to 60mph in a brisk 8.4 seconds, while being capable of returning 61.4mpg, according to official figures. In our test, it managed to return around 50mpg with a mix of fast A and B road driving. Emissions stand at 119g/km putting the 6 into the £30 annual car tax band.

WHAT’S THE SPEC LIKE? All MG 6s include air conditioning, electric front and rear windows, 16-inch alloy wheels and heated seats. Mid-spec TS versions gain part-leather seats, automatic headlights and wipers, Bluetooth, cruise control and a seven-inch touchscreen media system with sat-nav and a digital radio. Meanwhile, range-

Car Dealer spoke to product manager Andrew Lowerson about the new MG6 and the brand’s ambitions for its UK dealer network What are the key changes for the new MG 6? It’s a much more pleasant place to sit. It’s much more to the taste of the consumer in the UK, so when you sit behind the wheel, instantly it’s a more comfortable seat to sit in, the materials feel nicer. The view from the driver’s seat is more pleasant, the infotainment system is far more up to date. There’s full touchscreen, a full navigation system, MirrorLink, a media player, everything the modern consumer expects. The new 6 is very good value on paper compared to rivals. How do you think consumers see the balance of price versus the quality they get? I always think if you’re spending your money you want to feel like you’ve got the most you possibly can for your pounds. If you go into a Ford or Vauxhall dealership you feel like you’ve got to haggle. And the big risk with that is whether you feel convinced you’ve walked out of there with the best deal or is that dealer going to be laughing behind your back? Buyers don’t have to worry about that with MG. We are selling all of our cars, all of our spec, at the same price. There’s no haggling. What buyers can do with the MG 6 is walk in, pay the price on the ticket and walk out with a car with all of the advanced technology that would cost an awful lot more from another manufacturer.

find is one dealer selling a car for £2,000 less than another. There is not that movement available. How do MG dealers convince buyers to choose an MG over, say, a Ford or a Vauxhall? Other manufacturers are brands they are familiar with – they drive past them on people’s drives, and see them every day. But the MG is something very new, something very unusual, something that somebody will hopefully feel proud to drive to demonstrate they are different. Most of our customers are excited by their purchase. They enjoy sitting in it. MG sales are rising but from a low base. What do you see as the mid-term goal for dealers? In 2011 we launched the MG 6, in 2012 we launched the MG 6 diesel, in 2013 we launched the MG 3, we’re now sitting right at the beginning of 2015 where we’ve updated the MG 6. This car is here to provide an easy route for somebody who owns an MG 6 or owns an MG 3 to walk into either something familiar to them or upgrade. Where we see our next step is launching a new model in a new segment, so our next car will be an SUV. After that we will look at replacing MG 6, possibly with something subtly different but in a similar sort of segment. After that it will be replacements for MG 3 and a smaller SUV.

You talk about no haggling. Can dealers cut prices? We set a very strict margin. We have a very small margin, the dealer has a relatively small margin, so what you’re not going to

... but what’s it like to drive?

Which brands do you see as the biggest threat to MG’s growth? Dacia certainly are growing very quickly. But there is a very good reason for that in that they spend millions upon millions in marketing and the whole Nissan-Renault group decides who gets their marketing money and throws money at it. SsangYong are principally a seller of SUVs. And SUV is a growth market at the minute, so if you’re selling only SUVs you will grow very rapidly. At the minute, where we see ourselves existing is slightly apart from them. We are effectively pitching ourselves as a sporty, fun, affordable brand. We’re aiming at people who see their car as more than just something dull that sits on the drive and they use to get to work. But at the same time they can drive it to work every day. It’s something they actually feel a little bit of pride driving and a little bit of enjoyment from driving. What is your end plan for the number of MG dealerships? When we started we had small, enthusiast dealerships. They would sell cars at the same time as servicing cars, but it was secondary to their core business. Since then we’ve moved more into full service dealerships, who are much more professional, who can handle customer complaints, who can handle the return business, who can handle Motability, who can handle fleet… who understand everything that goes with being a major manufacturer’s dealership. I believe we have 53 dealerships at the minute, it changes almost daily. In the next 12 months we’re looking to get to 75, with medium- to long-term expectations of getting between 100 and 120 dealerships.

Over to Chris Lloyd . . .

topping TL models include luxuries such as a reversing camera, xenon headlights and electric leather seats. The dashboard is not the most attractive, though it is easy enough to use. Discerning buyers are likely to prefer the more clearly-laid-out dash of the Skoda Octavia or the sharper style of the Ford Focus and Vauxhall Astra’s interiors.

occupants from the road surface as well as it could. The diesel engine is mostly refined with reasonably-muted noise levels, though, again models such as the Focus and Octavia let less vibration from the engine through to the cabin. When cruising, however, the engine is barely audible, with little wind or road noise getting into the cabin.

WHAT’S IT LIKE TO DRIVE?

WHAT DO THE PRESS THINK?

The 6 is neither as comfortable to drive nor as sharp handling as models such as the Ford Focus. While the car is perfectly capable around corners, the steering doesn’t inspire the same level of confidence as the Ford, while the ride is a little firm over bumps and doesn’t manage to isolate

Auto Express wrote: ‘MG’s overhaul of its slowselling 6 has largely been a success as a large number of gripes have been remedied and the price cut means it represents tremendous value for money.’ Motoring Research said: ‘The interior is heaps better than it was. The driving

experience is up there with more expensive rivals. And it’s loaded with standard equipment.’

WHAT DO WE THINK? As with its predecessor, the MG 6’s appeal is all down to value. It’s not the most comfortable, best handling, fastest or most economical model, but buyers get a huge amount of car – and equipment – for the money. Those on a tight budget who have to have a new car should be very happy with the 6. Those who are more concerned with style, quality and roadholding, however, may be more taken by a less well-equipped entry-level Ford Focus or Skoda Octavia. Overall, though, the 6 covers enough bases well enough to be worth a test drive for many medium car buyers. CarDealerMag.co.uk | 49

forecourt. LOOKS

ENGINE

The refreshed Grand C-Max resembles the latest Ford Mondeo.

The 2.0-litre diesel reduces emissions by 20 per cent.

INSIDE

Ford Grand C-Max

The cabin has been tidied to simplify usability.

It’s a very capable seven-seater – and has just been given a mid-life makeover. Sophie Williamson-Stothert reports. What is it? It’s Ford’s revived seven-seater MPV, which has benefited from a mid-life refresh, and it remains one of the most capable seven-seaters on the road. Combining low running costs with a roomy interior and improved handling, the new Grand C-Max has been cleverly packaged to offer buyers the ideal family car, which is crammed with the latest new tech. It even boasts better residual values. The new C-Max models will join the recently launched S-Max in Ford dealerships this summer.

What’s under the bonnet?

a further 20 per cent. The two diesels are both mated to six-speed manual gearboxes and also benefit from at least an extra 4bhp, making them a little punchier off the mark.

What’s the spec like? The C-Max family is available in the same three trim levels: Zetec, Titanium and Titanium X. Each model is well equipped with all the latest gadgets and gizmos, ranging from driver entertainment to passenger safety. Both the standard and Grand variants introduce a number of technological upgrades, including Ford’s SYNC 2 voiceactivated connectivity system on Titanium models and the segmentfirst hands-free tailgate tool usually found on more expensive cars. The centre console has also been tidied and simplified.

The C-Max family will be available with Ford’s new 118bhp 1.5-litre diesel, as well as the 99bhp and 124bhp versions of the 1.0-litre EcoBoost petrol engine. The new diesel is expected to emit just 113g/ What’s it like to km of CO2 – a six per cent reduction drive? in comparison to the outgoing 1.6litre – while the range-topping 148bhp The Grand C-Max is certainly one of 2.0-litre diesel improves emissions by the more enjoyable seven-seaters to ��| CarDealerMag.co.uk

drive and the 2.0-litre diesel’s boost in power and torque is noticeable both on and off the motorway. The Grand C-Max is more than capable of safely overtaking and, thanks to improved grip, won’t let you down in the corners. There’s no denying the Grand C-Max is a large car but manoeuvring around town is stressfree, thanks to its plethora of useful driver aids.

WHAT DO THE PRESS THINK? Auto Express said: ‘It’s a shame Ford hasn’t worked on the slightly awkward styling, but there’s no denying it’s a better all-round package – especially with the extensive kit list and improved residual values.’

WHAT DO WE THINK? There’s no doubt the Grand C-Max is at the top of the MPV league table. Its unique combination of low running costs, improved driving dynamics and in-car tech make it the ideal candidate for large families on the go.

the knowledge Model:

Ford Grand C-Max Titanium X Price: From £26,495 Engine: 2.0-litre TDCi Power: 149bhp Max speed: 125mph 0-62mph: 9.8 seconds MPG (comb’d): 61mpg Emissions: 114g/km

target buyers: Large families who need a versatile car for everyday purposes and the occasional adventure into the great outdoors

the rivals:

BMW 2 Series Grand Tourer, Citroen Grand C4 Picasso, Peugeot 5008, Seat Alhambra

Key Selling Points: 1. Plenty of rear luggage space 2. Sliding rear doors allows easy access to the third row of seats 3. Refined and comfortable

Deal Clincher: It’s the most satisfying MPV to drive

take it as red

Carmine Red paintwork is, with the GTS, available as an option for the 911 models for the very first time.

the roof

The aluminium roll bar and sliding glass roof are seriously cool. And the roof opens or closes fully automatically in just 20 seconds.

lovely looks

Porsche 911 Targa 4 GTS

So sporty – aerodynamics are excellent thanks to the optimised front spoiler, while large air intakes ensure the supply of fresh air is maximised.

We sent Colin Channon to Malaga to drive the car on the road and the racetrack. And we think he’s fallen hopelessly in love... What is it? It’s the newest and most sporty of the 911 series. Think of a car that just oozes performance, that accelerates like a dream, that looks as if it was created by design gods, and is as comfortable as sitting in your favourite armchair… and you almost have the 911 Targa 4 GTS. Almost? Yes… because it’s even better than that…

What’s under the bonnet? A six-cylinder, 3.8-litre monster, 430 bhp, capable of hitting 187mph and going from a standstill to 60mph in around four seconds. It has 30 more horses than the 911 Carrera S, but the overall performance outshines that model. There is absolutely nothing to dislike about the car (well, apart from the fact only the very rich can afford one…) It sounds great, and as the flick of a button sends the fiery noise into the cabin, the driver can enjoy it as much as the neighbours. Although, to be honest, if you can afford one of

the knowledge Model: Porsche 911 Targa 4 GTS (PDK) Price: £107,202 (or £104,385 for the manual. But about £120,000 if you want extras) Engine: Six-cylinder, 3.8-litre, Power: 424hp/440Nm Max speed: 187mph 0-62mph: 4.3 seconds MPG (comb’d): 30.7 Emissions: 237g/km

these – and the cost of fuel, seeing it’ll do about 30mpg if you’re very, very light-footed – you’re likely to live somewhere where your closest neighbour lives in another postcode altogether… There’s a choice between a manual gearbox and Porsche’s dynamic PDK auto box – and when the automatic is this good, why ever would you want to change your own gears?

What’s it like to drive?

What’s the spec like?

WHAT DO THE PRESS THINK?

Anyone who wants a serious driving machine which can bomb around a track, yet is comfy enough to use every day

Everyone loves it. Even SunMotors say: ‘It’s a devil in disguise. It has the looks, comfort and signature sound for full-on posing.’

Audi R8 (but you wouldn’t use it every day) and Jaguar F-Type

The old joke about Porsche is that if you buy just the basic model, you get just an engine, a chassis, and four wheels. If you want anything else, it’s an optional extra and will cost you… Okay, that’s a bit harsh. But if you’re paying more than 100 grand for a car that Porsche wants you to drive every day, wouldn’t you expect sat-nav as standard? And a digital radio? And wipers that know when it’s raining? And cruise control? And a parking assist system that at ensures you don’t scratch that lovely shiny paintwork? And electric seats? Yes, us too.

Beautiful. Exhilarating. Stunning. Pick your own adjective. On the road, it’s a thrill a minute. Wouldn’t recommend driving too far at 70mph with the top down – it tends to get a bit noisy. And on the race track, it’s a beast. If you want pure power, go for the GT3. If you want beauty and driveability, it’s the GTS.

Our verdict This car is Good, with a capital G. Driving doesn’t get much better than this. Yes, it’s expensive. And yes, getting those little extras is expensive. But it’s a Porsche. That kind of comes with the territory. But oh, what a car. We’d sell the wife and the kids if it meant we could afford one of these…

target buyers:

the rivals:

Key Selling Points: 1. The way it drives. 2. The way it looks. 3. The badge that sits on the bonnet.

Deal Clincher: It’s a Porsche 911. Does driving get any better than that? CarDealerMag.co.uk | 51

Chris is a 37 year old construction manager from Birmingham. He lives in a three bedroom semi, is married and has two children under five. In his spare time, he likes to watch West Bromwich Albion and walk his Labrador.

THIS IS

A LEAD

He wants to buy the silver 61 plate Ford Galaxy on your forecourt that he found through a car portal and it has been established that three of the lenders you work with are likely to approve his preferred monthly payment and finance product. Chris is probably the most qualified lead you will ever have seen. How did we build such a complete picture of him? Through online products like Car Finance Checker, part of the iVendi Platform. What we do at iVendi is simple: we use technology to empower dealers around 2,500 of them to date.

Wouldn’t you like to become empowered? 0845 226 0503 info@ivendi.com www.ivendi.com

��| CarDealerMag.co.uk

FEATURE.

Taking Note... What goes on behind the high security of Nissan’s European Technical Centre? Is it all secret squirrel? We sent COLIN CHANNON to scale the wall and find out...

ver wondered what level of technology goes into a new car? And what those boffins in their white coats really get up to as the car goes from an idea on a drawing board to shuttling off the production line at a rate of one every 30 seconds? I was given a glimpse into the geeks’ world when I was invited on a tour of Nissan’s European Technical Centre (which sounds a grand title until you add the next bit of the address – near Milton Keynes...) Yes, it is geeky. Yes, there are men (and women) in white coats. And yes, there were mysterious-looking shapes under white sheets in the massive work areas which were top-secret,

next-generation cars that were not for the eyes of a wandering hack... And yes, it was fascinating. A lot of legwork goes into every new car, and an amazing amount of new technology. It’s like wandering on to the set of Star Wars, with machinery whirring and thumping away while it tests every single part of the car before manufacturing starts. I was given a look at the process the Nissan Note goes through. It was so thorough I’d be amazed if a single Note develops a rattle or a squeak any time in the next, oh, 30 years. So what did I learn? That cars these days are put together to be very relevant to the demands of today’s families. And if you don’t believe me, read on...

giant puzzle Ever read in the brochure that the car boot’s capacity is x litres? What’s a litre? Well, it’s one of these yellow blocks. Two people have the job of fitting as many as they can into the boot – they’re both competitive, and try to outdo the other. They try it on a computer first, then with real blocks in a real car. And no, they’re not allowed to break them in half to fit more in... CarDealerMag.co.uk | 53

Getting it Note perfect!

FEATURE. screen test

There’s a dark room tucked away in the corner of the complex that is filled with computer screens. These can turn a designer’s initial idea into a real car. It can add bits and take them away; it can spot potential problems before a single penny has been spent on production. The software used is market leading, and astonishing in its detail. It creates the car, and then revolves it 360 degrees so every aspect can be minutely scrutinised. It’s like using PlayStation, XBox and the Wii all at once, only a million times better. Once everyone’s happy with the concept idea, a lifesize clay model is made (yes, they still do that) before the first car is put together. The cost of each ‘real’ car runs into millions, so these computer boffins have saved Nissan big money. And as a spin-off, they’re probably seriously good at FIFA 2015, too...

meccano heaven

A very clever ‘car’ is built with no chassis – it looks a bit like a giant Meccano set. All the electrics are connected to it, including things like lights and infotainment centres. The beauty of it is that any new technology can be easily added and checked to make sure it’s all compatible. It was not unheard of in the past for a new radio to be added, but because it didn’t talk to other parts of the car, turning up the volume set the indicators going... This eradicates all of that. It also allows the car to run for hours and hours on end, to ensure no electrical bits and bobs (yeah, I really got to grips with the technical talk) don’t burn out over time. They called it an ‘electrical integration platform’. I called it a Meccano set.

LUGGAGE SPACE

What happens inside Nissan’s Technical Centre It’s someone’s job to stay up with the current trends to make sure the car doesn’t frustrate drivers. For instance, the big thing in prams is the i-Candy. The boot space has been developed so it adapts easily to fit the i-Candy, wheels and all. And there’s a neat little cubby hole under the ‘false floor’ which allows other goodies to be stored – which is great if you want to hide laptops and the family jewels out of sight of the little scrotes who wander around car parks looking for easy pickings, and ideal if you want somewhere to put the shopping before putting your i-Candy into the back. See these shelves packed with lots of stuff the average family uses? A tester makes sure they fit into the car without hassle. Now that’s what I call proper attention to detail... ��| CarDealerMag.co.uk

drive for dummies

There’s a great Nissan crash centre. Four dummies are strapped in – two ‘pretend’ adults in the front, and two kids, one aged three years and one of 18 months, in the back. They’re wired up this way and that way, and the car’s driven into a wall. Yeah, I think it’s a waste of a perfectly good car, too. The wires record everything, so they can be monitored and the car made as safe as a mummy’s womb. Or something.

the jigglefest

open wide

The whole car spends hours in a £1m climate room and is subjected to hot temperatures (+90o), and very, very cold conditions (-50o). The car is perched on pneumatic platforms, which jiggle so fast they accurately resemble driving on tarmac, on cobbles, on asphalt... anything. Someone sits in the car to listen for any rattles, anywhere in the car. You’d expect the plastic to shrink and expand in the extreme temperatures, and for some squeaking to take place – but the men in the white coats don’t expect it. Anything goes wrong, everything stops and investigations begin until a solution is found.

Now here’s a clever bit. One of the boffins had a baby, and realised it was hell to get the baby seat in the back of their car – there just wasn’t room to lean into the vehicle. So with this Note, the rear doors open right out to 90 degrees. That means there’s room to put baby in, and lean across and do up the straps. It also means there’s no excuse for not inviting the mother-in-law on Sunday afternoon trips, because she can now easily manoeuvre herself into the back. Bet the boffin never thought of that – could have been enough to scrap this idea altogether...

driving blind

the slam machine

A machine opens and shuts the doors again and again and again, time after time after time. It simulates years of wear and tear. And there are two levels of closing doors – a ‘grandma’ setting, when it’s very gentle, and an ‘angry teenager setting’, when it’s slammed with brute force. And it’s very, very noisy. Having to working with this piece of kit is probably the geeky version of having to spend time on the naughty step.

There’s a virtual ‘safety shield’ around the car, alerting the driver to vehicles on your nearside and offside; it brakes automatically if you’re about to drive into something; and it makes a noise if there’s a moving object behind you. It also has fantastic surround-view cameras, that do something techy with the images to give the impression someone’s sat on the roof, beaming a bird’s-eye view of your vehicle into the car. It was so good I drove a car with blacked-out windows around a busy car park, and parked it rather neatly, using only the cameras. CarDealerMag.co.uk | 55

Feature. the french connection: Citroen DS5 Hybrid v DS ID19

S D n e o r t i C La The DS brand is splitting from Citroen, to become a premium brand in its own right. Think Lexus or Infiniti. But is the new DS5 any good? Is is better than, say, a classic DS from the early 1960s? REBECCA CHAPLIN decided to take both for a spin to find out for herself... ��| CarDealerMag.co.uk

reating a car that’s an icon is a tricky thing to do. It’s something completely unplanned and designers can only hope their vision will capture the hearts of the people. The original Citroen DS is a true icon of style and technology and choosing to use its name on a modern car was a bold choice. When Citroen

PICTURES: JONATHAN FLEETWOOD

? e u q i f i n g a Sm first decided to give a three-door hatchback the Goddess’s title, many purists were shocked. Unlike the Mini and the Fiat 500 that have similarly been resurrected in recent years, though, the Citroen DS doesn’t really look like the original DS at all, in any way, shape or form. Talking to the newly-created DS team, split from Citroen UK, it’s not necessarily about looks, it’s all about the spirit of the car. We decided to test whether Citroen had

successfully transferred this spirit by twin-testing two of their cars. One, a 1961 Citroen DS ID19, lovingly cared for over the past 53 years by various owners. Despite appearing huge and robust, it is actually quite delicate with its various Bakelite switches, vaguely secured windows and a fibreglass roof. The second, a 64-plate DS5 Hybrid. A family car much the same with a luxurious, modern interior and some of the latest nifty Citroen tech. But it’s not a car that snatches your heart at first glance.

The DS range, which has proved itself as a strong competitor in the UK car market, is breaking away into its own premium brand and trying to cling to more of the old-school luxury seen in the older models. When the brand-new DS5 reaches showrooms later this year, it will be the first to lose all Citroen branding from its panels. No longer will it bear the chevrons on its bonnet, windows or wheels – from here on out, it’s all about déesse. It’s coming up to 100 years of Citroen and 2015 marks 60 years since the first CarDealerMag.co.uk | 57

Feature. the french connection: citroen

“

Incredible suspension truly makes you believe you’re floating on a magic carpet

DS was built, a poignant time for the brand to undergo such a drastic shake-up. Like Toyota and Nissan, Citroen – or, in fact, PSA, who own the French carmaker – are making their business threefold, Peugeot, Citroen and DS. ‘The global strategy, which is PSA’s long-term strategy, is to have three brands and this clear idea about launching and creating a DS dedicated brand,’ explained PSA Peugeot Citroen UK deputy director general and DS brand development director Arnaud Leclerc. ‘We want, like all the other groups, to move into the premium product brand. We want to have a dedicated premium brand.’ This wasn’t what the company set out to do when the DS 3 was first launched in 2010, but it’s gone from strength to strength. We put in a lot of calls to many Citroen dealers and every single one was singling long and loud about the success of this three-door hatch that has been outselling every other car in their showrooms. Paul Burtoft, dealer principal at Auto World Chesterfield, was our first call and he raved about the car which was outselling all others: ‘The DS 3 is our top-selling car. We probably sell two DS 3s for every other car, sometimes even three. It’s so well supported and quite a deal. We also do a lot of personalisation for people, whether that’s a different-coloured roof or something else – we’ve even had some people want to have images of their dog printed on the roof.’

This picture could have been from a 1960s magazine... ��| CarDealerMag.co.uk

t’s early days, according to Leclerc, but the wheels are in motion. At the beginning of this year, Citroen UK’s management was restructured to support the separation of DS. Now it’s all about planning. At the moment DS are focused on having discussions with their network about how they will develop and apparently they’re asking the same kind of questions we’re desperate to find the answers to… Leclerc said the network was enthusiastic about this change. He said: ‘I think they have been positive because they understand the purpose of all of this, the history and the product plan we have. We have all the legitimacy to create this, so they are fully on it. ‘I think they are very motivated to be part of this strategy and to be part of DS Automobile. All of the exchanges we’ve had with the dealers have been very positive.’ After some chasing on a busy Tuesday morning, we managed to get Sophie Langton, sales executive at Bristol Street Motors Citroen Leicester, on the phone. We asked her what she thought it would be like if her dealership was to open a DS franchise on site. ‘Without a doubt it will take the DS range to that prestige level,’ she said. ‘I’m not sure how the DS brand splitting from Citroen will affect our dealership. As we’ve already got a range of brands I think we’d be able to have both in the

It certainly looks nice. But...

“

Seriously lacking the ‘spirit of avant garde’ that DS have banged on about so much

CarDealerMag.co.uk | 59

Feature. the french connection: citroen Simply stunning. They just don’t make cars like this any more...

“

‘The DS 3 is our best-selling car. It really stands out compared to other cars.

��| CarDealerMag.co.uk

showroom – whether that means we have to define the areas, I don’t know yet. ‘The DS 3 is our best-selling car ever. It really stands out compared to other cars. We don’t find there are more females or males or a particular age range that it appeals to. I think it comes down to its unique look and the styling colour combinations. We find a large portion of those who come in were previously Mini owners. A lot of people have seen it driving past and it’s got that “what is it?” look about it.’ The DS brand has already been launched, and proved successful, in other regions around the world. China already has a dedicated DS brand and there have been stores opened in select cities around Europe. Although DS are being coy about the future of the brand in the UK, and what we can expect to see in these new showrooms, we can guess it will mirror that distinctive gold and black already being used, mirroring the sleek appearance of the range. ‘The DS store already exists in very few places in Europe, Brussels, Copenhagen and France,’ said Leclerc. ‘I think like any company evolves, strategies evolve as well. ‘DS certainly was and has been a success around the world, so I think it was the next evolution as part of the PSA Group’s Back in the Race strategy to clearly define three brands and it made sense to break away DS and move it more upmarket. ‘And, as you know, from the beginning in China we signed a dedicated joint venture and the dedicated brand and that worked for DS from the beginning. The Chinese joint venture was signed a year ago – it was already in the mind of the group. The main influence of Back in the Race was to implement this strategy also for Europe. ‘China has different models already because the market is very different, but as we now split the brand, things are really starting to develop it. We’re starting to see things that are similar.’

n Paris, the DS World store is unique for Europe. Like any other high-end store in one of the most fashionable cities in the world, it is fitted out in a truly premium way. A three-storey art deco building houses not only a shrine to all things DS, but also a dealership selling all the new range. ‘In France it is much more significant because, anywhere you go, Citroen and Peugeot are the national market so they are much more significant,’ Leclerc said. ‘The old history of the first DS links to our political history, Charles de Gaulle, and so on. So the DS by itself has a strong, strong image in France. So DS Automobile, which has also just been launched in France, is already well known. The situation is completely different in France; we’re talking about the Citroen brand which has around 30 per cent of the market share. It’s part of the French spirit already.’ At the Geneva Motor Show we got our first

Becs clearly enjoys behind the wheel

“

The Citroen brand has around 30 per cent of the market share. It’s part of the French spirit glimpse of the two completely separated brands with very different design ideas. Again, the stand carried that same design

we are expecting will be a theme in the new showrooms. We can’t forget about the sister brand, though, which will also benefit from the split, according the deputy director. Citroen is paving its own direction, which is distinguishing itself as a caricature of its previous self. Fun-loving, bright and colourful, which can definitely be seen in the new C4 Cactus, and a huge step away from the plain and practical Citroens of the past. Leclerc added: ‘It’s also very positive for two aspects – it’s very positive for the DS Automobile strategy we have but it’s also very positive for all the Citroen people we have. They’re quite confident on both sides.’ CarDealerMag.co.uk | 61

Feature. the french connection: citroen

Citroen DS ID19 There are very few things in this world more beautiful than the Citroen DS. You could compare it to a summer’s day or the darling buds of May and still not be close to its sumptuous luxury and incredible lines. I might be a sucker for a classic car but the DS is something else completely.

LE HISTOIRE The original DS is as French as you can get, apart from onions, berets and other borderline racist stereotypes. Best known for being named the most beautiful car of all time by Classic & Sports Car magazine (according to Wikipedia) and actually being a desirable Citroen. The first ever DS was built in 1955 and they were produced in various forms. Ours is the mid-term 1961 ID19. The ID model was introduced in 1957 with all the space-age looks of the DS but with less power.

MANY CHEVALS IN THERE? Well, a spare wheel for starters. For such a large bonnet, there’s surprisingly little under there. The ID19 runs on a 1.9-litre four-cylinder inline engine mated to a fourspeed gearbox. According to the manual (which I may have accidentally retained after our loan had ended), after 1,500 miles of running-in ‘the car may be driven freely’ up to 85 miles per hour in fourth gear. Not that I was taking this curvaceous half steel, half fibre-glass masterpiece anywhere near to that…

SUITABLE FOR THE COBBLED STREETS OF PARIS? This boat-like car has an 11m turning circle (when ��| CarDealerMag.co.uk

compared to the 8.6m turning circle of the teeny-tiny Twingo featured later in this issue, that doesn’t actually sound too bad). It’s not exactly what you would call the ideal city car. However, with that incredible suspension this is a car that truly makes you believe you’re floating on something akin to a magic carpet and not just some attractive retro metal. It’s hydro-pneumatic, can selflevel, raise itself up and down, and make speed bumps pretty irrelevant.

LOUIS VUITTON OR CARREFOUR? Incredible, luxurious, like Elvis Presley’s living room on wheels and everything you could want from a small two-bedroom house – even though this was the walletfriendly model of its day, costing just £998 new. Inside, there aren’t all the mod-cons you might be looking for in a car but it does have the comfiest leather seats you’ll ever sit on. For such a large car there are only four ample-sized seats, but in the rear there is the added bonus of a sponge floor for your passengers to rest their tired feet on. Our DS even had a Blaupunkt radio, but as it was from the 60s, don’t expect the finest sound quality.

WHAT DID LE MONDE THINK? Motor Sport said: ‘To conclude, this splendid car makes all other family saloons take a back seat and its safe road-holding and cornering make it more than a match for many cars which claim to be sports models. It is, indeed, “the car of the future, for the roads of today” and is a magnificent car both to contemplate and to travel in.’

LES FAITS Model: 1961 DS ID19 Price: £998 Engine: 1.9-litre 4-cyl Power: 66bhp Max speed: 87.1mph 0-62mph: 22.1 secs MPG (comb’d): 24.4 Emissions: n/a Residual values: £25,000

target buyers: Eiffel Tower climbers, café au lait drinkers and French fashionistas

the rivals: Peugeot 404, Renault 16 and Ford Anglia

Key Selling Points: 1. Enough room to swing two cats 2. Extremely comfortable ride 3. Kerb appeal that makes everyone stare

Deal Clincher: DS values are climbing and are a solid investment for any car collector.

Citroen DS5 Hybrid4 The DS5 Hybrid4 is the other end of the spectrum from the DS ID19. Whereas the ID19 focuses on a luxurious ride, the DS5 Hybrid4 is all about modern, ‘avant garde’ tech. Probably as far away design wise you could get from the original DS, but that doesn’t mean you can’t tell that it has the same ‘spirit’. Sort of.

LE HISTOIRE Admittedly, if you were to line up all the new DS models next to the original, the DS5 would probably look the most similar… It does share that distinctive front chrome and it’s also quite long. The DS5 is the brand’s flagship model, a large five-seater hatchback powered by hybrid technology and when Citroen badges are dropped completely from the range later this summer, we’ll see it first on this.

MANY CHEVALS IN THERE? This DS5 Hybrid4 200 is Citroen’s first try at hybrid technology. Here they’ve mated a 2.0-litre diesel engine with an electric motor for increased fuel economy. The DS5 produces 197bhp, slightly more than its 60s sibling, and can travel from 0-60mph in 8.1 seconds – hardly earth-shattering. Unfortunately, these two power sources don’t really know how to work together. We found ourselves screaming at the car to go, because it never would when we put our foot down – and then it never seemed to be in the right gear, either.

SUITABLE FOR THE COBBLED STREETS OF PARIS? In a word, no. The suspension on the DS5 is in all

honesty an embarrassment to the name. We could forgive any other car design faux pas, but if there was one thing that needed to be right in this range, it would have to be the suspension and incredible handling. The DS5 has somehow managed to make the ride even worse than if they’d not bothered to try at all, with every bump in the road shooting up your spine. The seating position is extremely high, good for visibility, and the steering wasn’t half bad, thanks to the small steering wheel which makes it feel direct and sharp.

LOUIS VUITTON OR CARREFOUR? On the scale of French supermarkets to high-end handbags, it’s definitely closer to the latter. The red-leather upholstery on our example was certainly striking and the segmented design of the seats gives an air of style. As standard the DS5 is kitted out with parking sensors, a reversing camera, sat-nav, a heads-up display, dual-zone air conditioning and leather upholstery. The centre console is bulbous and encroaching, for no real reason. There’s so much wasted space you could put your whole arm in the cavity underneath.

WHAT DO LE MONDE THINK? Telegraph Cars said: ‘It’s a shame the Citroen DS5 is so flawed, because the idea of a car that majors on space, comfort and style is an appealing one. It just feels like it’s been poorly executed here.’ Top Gear said: ‘Expensive, but cheap tax – especially business tax – offsets it. If you’re buying privately, get the plain diesel or the petrol.’

LES FAITS Model:

Citroen DS5 Hybrid4 200 DSport Price: £33,700 Engine: 2.0-litre, 4-cyl diesel, electric motor Power: 197bhp Max speed: 131mph 0-62mph: 8.3 secs MPG (comb’d): 72.4 Emissions: 102g/km (comb) Residual value: TBC

target buyers: Family buyers looking for a more economical option

the rivals: BMW 4 Series Gran Coupe, Audi A5 Sportback

Key Selling Points: 1. Spacious interior 2. Sleek, stylish look 3. Good fuel economy

Deal Clincher: The DS5 brings French flair and unique design to a usually boring sector. CarDealerMag.co.uk | 63

Feature. the french connection: citroen

The DS verdict

f we were to have a DS battle to the death, there could only be one winner. But it wasn’t really a fair test to start with. The original DS has the disadvantage of running with significantly less-advanced technology. The radio looked pretty but we couldn’t get it to work and the lights do turn on but they aren’t particularly illumining without full beam on. However, when it comes to the new DS5 Hybrid, which has ALL the latest technology on it, it feels like it’s seriously lacking the ‘spirit of avant garde’ that DS have banged on about so much. The ride is

unpleasant and the hybrid system just doesn’t work properly, which is a shame because the look of the car – and what they have so clearly tried to achieve – is fantastic. So the car that tops all cars? Well, you knew from the start – it was always going to be the 1961 Citroen DS. But, honestly, we didn’t realise how much we were going to love it until we drove it. It looks stunning. It may appear bulky and heavy, and give the illusion this will be all style and no substance, but the way it drives is incredible, thanks to retro-tech which was way ahead of its time.

Selling classic Citroens

ur DS ID19 lived a very colourful life before making its return to Citroen UK ownership. The first dealership to sell this car was Camden Motors on June 14, 1961 and within three weeks it was acquired by Citroen Cars Ltd to be used for the firm’s press and publicity. The car was later bought by Dominic Raffo and Geoffrey Rothon, who prepared it for the 1991 Monte Carlo Challenge. Their participation in the event was recorded by Popular Classics magazine before well-known motoring author Malcolm Bobbitt bought the car in 1992. We spoke to Simon Lynes, a die-hard DS man who knows everything about them – he has been selling DS for 18 years and owns a dealership in London, DS World. He personally owns the oldest DS ID19 and the oldest DS in the world as well as a DS19 from 1958, which has been blessed by the Pope. ‘I sold them for 18 years from 1991 to 2009. It was absolutely fantastic. I’ve always loved classic cars,’ Lynes told us. ��| CarDealerMag.co.uk

However, it was by accident that he got into selling Citroen DSs. His career choice had actually been to work in television but fate took a hand. He explained: ‘I’d studied film and television but the company I was working for in London went bust overnight. But downstairs they sold cars. I worked for free for a week and then they gave me a job and I stayed for six or seven years. Since then I’ve dealt in different collectable cars.’ He said his early days as a car dealer were

memorable. ‘The DS has changed a lot. In the mid-to-late 90s when I was selling them, arty-farty people in London wanted them. I had a list of celebrity clients including actress Alex Kingston and director Richard Loncraine. People with an aesthetic eye were drawn to their iconic design from the word go. These people were using them as everyday cars, but now London has become so difficult to drive in.’ Times have changed and as the DS becomes rarer and more expensive to repair, dealers are finding they’re being stored rather than used as daily drivers. ‘We’re not selling as many DSs now but the good news is they’ve gone up in value. Fewer people are buying them as a trend icon. Now they’re in the realm of classic car enthusiasts.’ And incredibly, Lynes had heard of our DS! When I spoke to him we began discussing values and wanted to get his opinion on the one we’d been driving. When I explained a little bit of its history, Lynes chipped in: ‘I actually almost bought that car in 1993. The week after I went to see it, Malcolm Bobbit bought it!’ [CD]

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Feature.

PICTURES: JONATHAN FLEETWOOD

the french connection: renault dealership

Bright new look means a bright new future Dealers are shelling out large sums as manufacturers launch their CI initiatives – they’re all keen to update their corporate identities with a new look in their showrooms. But does a new look equate to extra car sales? Colin Channon took a trip to a new Renault Store to find out…

General manager Tom Garratt loves the new look

ust as the rest of us were getting over the excesses of Christmas, Renault trumpeted its plans to revolutionise the way it was displaying its cars. This year, it announced to the world, it planned to start a programme of revamping its dealerships, rolling out a new Renault Store. It hoped up to half its dealerships would have the new look by the end of this year, with the remainder unveiling a new look by the end of 2017. One of the first was a brand-spanking new Bristol Street Motors showroom in Nottingham. Plenty of building work took place to complement the new look, so the total bill saw little change from £500,000. So is it working? Is this drive for a ‘new way’ of selling cars – an approach also taken by, among others, Honda and Seat, which has also recently announced plans for a major overhaul of its showrooms – paying dividends? The early signs are that yes, it is. CarDealerMag.co.uk | 67

Feature. the french connection: renault dealership We caught up with Tom Garratt, the general manager of the Nottingham dealership which is still so new you could eat your dinner off the gleaming floor. So give us the figures, Tom, we asked. ‘We opened on January 19, and then we had to get everyone in and trained, so we started properly in mid-February,’ he said. ‘March is probably the first month that we have hit the ground, and we are looking at delivering 100 new cars, including Dacia, Motability and fleet – which, as far as I’m aware in my time in the industry, from a standing start to a new dealership, has never been done. It’s a really, really good, promising start. ‘It’s not just an influx of customers who have come in naturally, but a lot of effort has gone in from the guys here, which have made March such a success. ‘When I was with Nissan, I worked in an established dealership – we’d been there for five years so we were getting a lot of repeat business, which we have not had here yet – and in a platechange quarter, we were probably doing close to 100 in a three-month period. Here, we have had only one month in this quarter and we’re already doing 100 sales.’ So what makes the showroom special? ‘The main thing is how interactive it is,’ says Garratt. ‘It does look a really busy showroom, even when there’s no-one in it. And then there are interactive parts, with the touchscreen and the iPads in the runway. There’s also a touchscreen configurator next to the wall with the paint and alloy choices, and a meet and greet board, which has all the managers’ faces, and another display about service. ‘Customers don’t sit down and get bored – there’s a lot going on and for them to do, even if they’ve come for a service and have to wait to collect their car. ‘It’s good for customers and it’s really good for salesmen. If they have a customer interested in something a little bit different that we don’t have in the showroom – maybe a Megane RS – we can configure the car on the wall, and they can see exactly what they’re thinking of buying. We can change the colour, we can show them the interior – we have interior and exterior views – and it makes life a lot easier for the salesman.’ And it’s not just the customers who love the new look, says Garratt. ‘Staff love it, too. They’ve really got a pride in their showroom and the appearance of it. ‘Almost every manufacturer is now improving its showrooms – Nissan are doing theirs, Renault are doing theirs, Honda and Seat are doing theirs, so it’s an expensive time for dealers, if I’m honest. But when you see salesmen coming into a showroom that is completely different, both structurally and with the paint, and they can see money has been spent on it, they have a great pride in it. It’s like having your house done up, and you take our shoes off when you go in… ‘They’re proud of the showroom, and the ��| CarDealerMag.co.uk

Bold and colourful...

The new Renault Store Each Renault Store will have four specific areas and roles: Welcoming the customer A welcome desk and signage forms an instant focal point for the customer upon entering the dealership, at which they will be greeted by a host or hostess and pointed in the right direction for their visit – be that sales or after-sales. Introducing the brand Renault’s character and heritage will be thrust into the spotlight with the addition of the Brand Wall. A prominent yellow border will surround a large screen, on which informative and engaging content will be shown. Depending on showroom size, miniature model display cases will be available, demonstrating the progression of the Renault product line-up throughout its vibrant history.

product – the cars have improved no end, and the showroom matches the impressive product we have.’ The Nottingham site has a major advantage over other Renault Stores, in that the opening of the dealership saw a return of the marque to the area after an absence of three years. ‘There was a Co-op dealership on this site, which was quite successful, but when the Co-op pulled out of cars, it was sold to Free Autos, which was owned by a college. ‘Renault pulled out of the site three years ago, and this site sold Nissan, Subaru and Great Wall. A college running a car dealership was never going to work in my eyes, but I think they did okay. ‘But then Bristol Street came along and now we have Renault back into Nottingham, and Honda is next door. ‘We are one of the first Renault Stores which is not Renault owned, and we have a really goodsized showroom here, a good-sized footprint and this has really shown what a Renault Store concept can look like. ‘It has been received really well by customers and by Renault and by other manufacturers who have seen it. It looks exciting and many people have commented how good it looks.’ The opening of the dealership has been

supported by a significant marketing budget. Tom Garratt says: ‘We are spending a lot on marketing and advertising to let people know we’re here – we’re doing the Nottingham Motor Show in May, a lot of product placement, so the word’s out there. ‘We also have a lot of billboards and radio campaigns, we’re heavy in press, and we have a good marketing team with Vertu who are doing everything to get the name out there. ‘We’re lucky in that there are not many other Renault dealerships around us. There’s Derby, which is a 45-minute drive, and Leicester, which could be an hour away with the traffic, and that’s about all, so we have a good catchment area.’ So who is buying the cars? ‘Renault used to attract mainly a young audience, especially with Clio, but these days it’s a real mixed bag. ‘We have the Dacia range, which is being bought by everyone, and the Captur customer can be someone with a young family or someone who wants a higher seating position. Then there’s Clio and Twingo, which do relate to a much

Displaying the range The showroom will be divided into themed zones, displaying the Renault range to showroom visitors as clearly as possible. The Headline Zone will show the newest model, the Passion Zone displays recent models in a setting that emphasises the brand image, the ZE Zone displays Renault’s fully-electric range of vehicles and the Sport Zone puts Renault’s expertise in motorsport in the spotlight and showcases the Renaultsport range. The combination of zones in a dealership is adaptable, so will be tailored to each individual dealership’s needs and size. Exploring the products Two new facilities, the Brand Bar and the Configurator, will allow the customer to get to know the products in more detail than ever before and customise their new Renault or Dacia. The Brand Bar creates an area where visitors can sit, and using the tablets provided, browse the ranges of models and view the latest pricing and offers. The Configurator takes vehicle customisation to the next level, with a large interactive display allowing customers, with or without guidance from a sales executive, to explore available vehicle options and customise a vehicle to the specification of their choosing.

“

It’s good for customers and it’s really good for salesmen.

CarDealerMag.co.uk | 69

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Feature. the french connection: renault dealership

a great new showroom – and plenty of good cars to sell. it’s a winning combination... It’s no good having a gleaming new showroom if no-one wants to look at – let alone drive – the cars inside it. But Tom Garratt reckons he’s getting the best of both worlds. He’s delighted with the cars he has to sell. ‘Clio is the best-seller – for value for money and how good looking it is and the specification you get, you can’t beat it. Fiesta is the market leader in that segment, but for my money the Clio is better looking, and better value for money. ‘Captur is coming on – every day it’s getting better and better, and it’s catching the Clio audience. They’re the two main sellers. ‘Twingo has just started taking off and we’re excited about the Kadjar launch, and we should have them in the showroom for September. ‘Dacia is a fantastic product. All eyes are

younger audience. They’re all really good-looking cars, so it’s a mixed bag. We’re looking forward to the Kadjar coming along, which should be good for the fleet market as well. ‘The new-car business has really taken off, and although the used-car side is taking a little longer to come round, by the end of the year we’ll be retailing 100 used cars – we’re looking at between 50 and 60 at the moment, but this is really the first month we have opened. The dealership can hold 150 cars, but we’ll probably keep it to 100 for the first year. We have a lot of things in place to progress as the dealership builds. ‘We’re still building the brand and our showroom. At the moment we have two sales managers, one new and one used, seven salesmen, and myself on top, as well as two service advisers, one service manager, five technicians and five parts people – we have a very big parts operation. The plans are in place and as the dealership grows we’ll get people in – drivers, salesmen, business managers, they’re all ready to be put into place as soon as the business needs it.’ Garratt started selling cars when he was 19 in Scunthorpe. He moved to Ford in Goole with Evans Halshaw, then Renault in Rotherham where he was promoted to business manager. ‘Ford took over the site and I stayed on as business manager for another two years before moving to Renault Harrogate as a business manager, then Nissan Mansfield, where I progressed to sales manager and dealer principal. I was there for four years, and then moved to Bristol Street. I’ve been here since December.

on Dacia throughout the industry because it’s a very simple way of doing things. We’re not targeted on it, and there’s a very small margin on each car. The way we put it across to customers is that if it’s sold, it’s made. I think it’s turning used-car customers into new-car customers, which is great for the service department. I’m really confident and loving the product. It’s not trying to be anything it’s not, but to get a brand-new car for less than £6,000 is just unheard of. ‘It’s really simple. Salesmen may have to sometimes change their approach with it – for instance, a discounted price always comes into some customers’ minds when they’re buying a new car, but we don’t discount the Dacias because there’s a minimal margin in those cars. But they don’t need to be discounted – there’s

nowhere else in the market that you can buy a brand-new car for under £6,000, and it comes with a good specification as well. Let’s be honest, it’s a Renault chassis, a Renault engine – and if you go for a four-wheel drive Duster, it’s a Nissan four-wheel drive system, so you’ve got the basics of a really, really good car. ‘I took a Duster to a potential customer’s house, and she’d had Renaults all her life, and she bought a Duster because she wanted something a little bit higher and four-wheel drive looking. ‘We’re also getting people with, say, a 51 plate car who are coming in because they’re heard of Dacia, and there are others who were perhaps thinking of getting a newer used car but then realise they can buy a brand-new car for around the same money.’

Used cars play a crucial role ‘The industry has changed massively while I have been in the business. We have to be conscious of the internet and focused on that, but there is still a customer presence in the dealership – there are still people who want to come to the showroom and have a physical contact. Customers are much more educated about cars when they come in, and that means we have to really think about the people we are

employing. We need people who are excited about the brand, and they just can’t wing it, as perhaps they may have done in the past. They need to know their product – and they do, they spend a lot of time researching the product they are selling. It’s the same as if you’re going to buy a TV – the guy in the shop should know more about the product than the customer.’ CarDealerMag.co.uk | 71

Feature. the french connection: new renault twingo

Dancing the

Twingo! So are the cars as good as the showroom? The boss James Baggott goes for a spin in a surprisingly sprightly city car, and even finds time to talk to a dealer or two between coffee breaks, sandwich stops and finding pretty roads to have his picture taken...

enault is enjoying somewhat of a resurgence of late. Fresh products, new-look dealerships and bundles of renewed confidence have all helped give the brand back its mo-jo. So while Colin headed up north to see one of the new-look dealerships, Car Dealer snapper Fleetwood, Bec and I took a road trip in the rather-cool Twingo to see what all the fuss was about. We decided on a simple plan: locate a great road not too far from the office, pop into a Renault dealer to see how their new baby is selling and visit a Smart site to see how its sibling ForFour is going down too. Lovely. A head scratch followed by a web search and we’d found the best road the south had to serve up: the B3081. More commonly known as Zig Zag Hill in Dorset, it’s a one-mile stretch of hairpins just outside the market town of Shaftesbury. A course was set, coffee was purchased and Spotify fired up on the Twingo’s surprisingly easy-to-use media system. This was the first time I’d had a proper drive in Renault’s new little city car and I was suitably impressed. Chris had returned from the launch and couldn’t stop singing its praises (did you know it has a very small turning circle, is all he seemed to say) and I hadn’t seen the office this excited at the arrival of a press car short of an F-Type pulling up. Sophie was so beside herself

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“

The characterful little 0.9-litre lump, hidden below the boot floor, punts the Twingo along at a smileinfecting pace.

James and Bec listen and learn...

she stole the keys and hid them on her desk. The first thing you notice in the Twingo is the build quality feels surprisingly Germanic. The seats are comfy, the driving position a little SUVlike but not unpleasant, and the interior trim and switchgear, although a little French in its layout, feels like it’ll last and is very funky. On the motorway-cum-cross-country jaunt the characterful little 0.9-litre lump, hidden below the boot floor, punts the Twingo along at a smileinfecting pace. This is the sportier offering with

88bhp, 135Nm of torque and the ability to hit 60mph in 10.8 seconds. The latter sounds poor, but on the road with just 943kg to haul around, it’s more than enough. We skip across the bumps and dance around the bends, clicking our way around the rather vague five-speed box that’s still great fun to use. It all combines to put a huge grin on my face in a fastest-hire-car-in-the-world sort of way. At Zig Zag Hill a fine spray has smothered the short run of twists and turns in a slippery sludge of mud and rain. As Fleetwood scampers up a bank for some shots, the Twingo tiptoes around the bends, traction control light flickering. Annoyingly there’s no way to turn it off, which is frankly frustrating on a rear-wheel drive car with an over-exuberant motoring hack at the wheel, but probably for the better when you take into account the target buyer. After an hour or so of being pleasantly surprised by the Twingo’s ability to make a simple drive a barrel CarDealerMag.co.uk | 73

Feature. the french connection: new renault twingo

“

Salesman Robert Palmer is quick to ask if we need any help, so we show our hand early and explain we won’t be helping his April targets

James and Bec try to look like real journalists – when we all know they just wanted an excuse for an afternoon out, driving around the country in the new Twingo... of laughs, we head east to the nearest motor park that has a Mercedes Smart retailer and a Renault dealer. It’s the Mercedes Winchester site – operated by Ridgeway – which we stumble across first. We stroll in and tucked away in the corner is the Twingo’s sister car, the Smart ForFour. The car is built on the same platform by Renault engineers, albeit to Daimler’s standards. That probably explains the aforementioned Germanic build quality (I really should have worked that out sooner). Not that sales executive Nick Green would admit it, though. ‘People don’t make the connection between the two cars at all,’ he told me. ‘No buyers know. Mercedes engineers make it.’ I didn’t want to argue. Green doesn’t actually sell Smarts – he was quick to point that out – but he was still happy to show us around the car. ��| CarDealerMag.co.uk

‘The ForFour is a Marmite car, people either love or hate it,’ he explained as we poked around the interior to see if it was at all similar (it sort of is). ‘We’ve found that existing Smart car owners are saying they don’t like it when they first see it but once they’ve driven it, they come back and say they want one. As for the ForTwo, well, we can’t get enough of those.’ We thank Green for his time and let him get back to his paperwork. Just across the road is a Renault site operated by the Martins Group. The forecourt is packed with cars – and a noticeable number of new Twingos. We slot ours into a tight space next to the front door and pop in. Salesman Robert Palmer is quick to ask if we need any help, so we show our hand early and explain we won’t be helping his April targets as we’re from Car Dealer. Fortunately he doesn’t throw us out. ‘The biggest selling point of the new model

is it’s a five door,’ he explains. ‘We’re selling to a lot of youngsters, aged 18 to 23, and also a lot of older customers, but not so many in between. It’s probably because of the high driving position and it’s got loads of space in the back. Plus it’s cheap to insure. ‘It’s going really well indeed. It’s so different to the Twingos that have gone before it and it’s working. It’s proving to be popular.’ We leave Palmer to get back to notching up some more sales to real customers and head home. On the drive I can’t help thinking how pleased I am to see Renault resurgent. Only a few years ago I was writing about how sacking its dealers just before Christmas was a disaster. Now they’ve got Dacia storming away across the country and a whole raft of new, frankly rather good Renault products arriving in showrooms. I for one think it’s nice to see the tides turn in such dramatic fashion. [CD]

CarDealerMag.co.uk | 75

focus on.

RAC BuySure

Why The Motorist’s Champion is good for dealers, too RAC BuySure

E: enquiries@racwarranty.thewg.com T: 0330 100 3807

an the RAC be “The Motorist’s champion” and combine this with being a valued partner for dealers who are seen as good enough to take part in its new and used-car initiatives? Chris Woodhouse, the RAC’s chief executive, certainly believes so. ‘I have a simple view. If you offer a quality service at a value-for-money price, you tend to do well. We are trying to lend our brand – the trust in the RAC and the way motorists feel about the RAC – to dealers who meet a standard that’s commensurate with them having the use of our brand, that’s consistent with offering a great proposition to consumers. If they do it, they get a higher sales performance. ‘One of the examples we tend to talk about is CarBase, one of our RAC BuySure dealers. After they embraced the programme, they saw their sales go up by 25 per cent. The two are related. If you offer a great proposition at the right price, people come to you.’ Woodhouse says that one of the biggest assets the RAC has is the awareness of its brand – something like 95 per cent in the UK know the RAC – and the high level of trust that is placed in it. ‘When you look into the brand in more detail, the principal characteristic that comes through is one of trust. The association of the brand with the dealer, in terms of its awareness and that trust characteristic, can only be positive. ‘I think it’s particularly the case in our marketplace where consumers lack confidence. We have done a lot of consumer research around used-car purchasing and the main fear people have is that they are going to buy a lemon. The more you can give them trust – RAC BuySure vehicles undergo an 82-point check before the car is marketed – and the more confidence you can give people, the happier they are going to be. ‘The programme has my full weight behind

‘‘

Chris Woodhouse it. We are very keen to see it progress further in terms of the number of RAC BuySure dealers we have. I almost never talk to journalists, but with this I think it is really important in terms of driving the business forward and we are really interested in seeing it progress.’ Woodhouse says the RAC is going back to its roots to become more of a motoring ‘club’, moving away from the way in which it operated during the years when it was owned by insurance giant Aviva. ‘We have tried to think about the business as more of a membership organisation. Clearly it’s a commercial business but the way we think about it is more like a club, which is what it has been for 119 years. It’s interesting that whenever you talk to customers at the RAC, they never describe themselves as customers, they always talk about themselves as members. ‘When you look at the statistics, the OFT says about a quarter of the car parc in the UK turns over each year. We have eight million members, which means that around two million of our membership base are likely to be in the market to

buy a vehicle in any one year. We think we have an obligation to them and also our non-members, given the trust there is in the brand, to try to put them in the best possible place in terms of getting them a vehicle they are going to be happy with. ‘So, with the RAC BuySure programme, we are simply trying to make motoring safer, easier, cheaper and more enjoyable for our members.’

We are trying to make motoring safer, easier, cheaper and more enjoyable for our members. The BuySure programme is a part of that.

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RAC launches ‘We Love Cars’ New campaign will see Mike Brewer help promote RAC’s products and services for dealers and car-buying customers The RAC has brought together its complete range of innovative products and services for dealers and car-buying customers under a new banner – ‘We Love Cars’. It includes everything from the RAC BuySure used-car proposition through to the RAC Cars website and the RAC Passport car data check – and is being promoted with the help of Mike Brewer, probably the best-known car dealer in the country. The presenter of Wheeler Dealers on the Discovery Channel has long since made his Sheffield-based dealership, Mike Brewer Motors, an RAC approved dealer. He said: ‘The RAC is an organisation that has been known and trusted by motorists across the UK for generation after generation and it is great to be working with them as they help to make buying new and used cars easier and safer for

Mike Brewer: The RAC is known and trusted by motorists

consumers. As everyone knows, buying a car can be a minefield but the RAC has come up with some great ideas to make sure customers end up with a superb vehicle on their driveway and enjoy peace of mind.’ Mario Dolcezza, head of dealer propositions at the RAC, added: ‘Mike is absolutely the right person to be the public face of We Love Cars. He is well known to motorists and dealers alike as an experienced, savvy used-car dealer and trusted motoring journalist. ‘Over the past year, we have been introducing a series of new products and services designed to support our members and other motorists when they buy a used car and Mike will help us show the public and dealers exactly how they can benefit.”

We Love Cars – what’s it all about? We Love Cars is the RAC’s banner for its complete range of services for dealers and car-buying customers: n RAC Approved Dealer Network The only dealers who meet the exacting standards necessary to offer RAC BuySure n RAC BuySure A unique customer proposition including an approved preparation standard, a car data check and a warranty that is designed to make buying a used car as worry-free as possible n RAC Cars Now FREE to advertise on one of the UK’s leading used-car buying websites n RAC Passport The UK’s most comprehensive car data check n RAC Vehicle Inspections Offering a 218-point vehicle inspection from just £99 n RAC Car Finance With RAC Personal and Member Loans n RAC Insurance High-quality motor insurance for your new vehicle n Free RAC valuations Just enter the car’s registration online n RAC Breakdown Cover At the heart of the RAC’s services

Mike Brewer said:

‘These RAC products and services are designed to make it easy for customers to make the right decisions when it comes to buying a used car. Smart dealers understand this and know that by becoming involved with the RAC, they will have happier customers and therefore improve their own profit potential.’ CarDealerMag.co.uk | 77

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RAC BuySure

National RAC BuySure launch now under way Huge marketing push to consumers as RAC BuySure sees 52 per cent growth in 2015 The RAC has thrown its huge marketing weight behind a national consumer launch for RAC BuySure which started on April 15 and is sure to see consumer interest skyrocket. Highlights include ads in a wide variety of national news outlets including several daily national newspapers. There is also a massive push from the RAC’s press office, with special accent placed on radio interviews across a wide variety of local and national stations. Finally, there is an exciting competition being held across all RAC Approved Dealers, promoted heavily by the RAC’s social media specialists. This will give anyone who buys a car from an Approved Dealer from April 15 to May 15 this year the chance to enter a draw to win £8,200 – a figure based on the 82-point check that is a key part of the RAC BuySure proposition.

What does this add up to for the customer? Reassurance. The RAC recognises car buyers want exceptional peace of mind when buying a used vehicle. Every year, millions of its members look to the organisation to advise them on how they can purchase a car with confidence. With launching RAC BuySure, it is effectively putting them in contact with dealerships that share its passion for quality, integrity and exceptional customer service.

But what’s in it for the dealer? Put simply, enhanced profitability. RAC research has shown that during the successful trial period of RAC BuySure, which is now drawing to a close, RAC Approved Dealers retained on average an extra £200 to £300 per vehicle by fully explaining the benefits of the scheme to the customer. Additionally, they can also expect to attract customers from further afield, increase their warranty upsell and also drive up sales overall.

RAC BuySure grows 52% so far in 2015 The RAC is reporting the number of dealers involved in its innovative BuySure used car programme has grown by 52 per cent so far in 2015. RAC BuySure provides each customer with a guarantee that every car bought from one of the RAC’s

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Approved Dealers comes with: n 82-point standard. An RAC-approved vehicle preparation standard that all Approved Dealers have to meet and are audited on. Also includes a car data check. n RAC warranty. A minimum of three

months’ RAC warranty. n Three months’ breakdown. Vehicle-based breakdown including Roadside, Recovery and At Home. n RAC Accident Care. RAC breakdown cover includes Accident Care.

How the RAC Dealer Portal can transform your online marketing The RAC brand is one of the most powerful in motoring – and our Dealer Portal will help you to make the most of it Becoming an RAC Approved Dealer will give you access to the RAC Dealer Portal – a unique online tool that will help you make the most of the pulling power of the RAC brand. Mario Dolcezza, head of dealer propositions at RAC, explained: ‘With the Dealer Portal, the RAC have given their dealers a tool to help build credibility and manage customer feedback. The review section especially helps dealers to demonstrate their commitment to exceptional customer service.”

Key features include: n You can track your Customer Satisfaction Score, an essential way of gauging your business performance through the eyes of your customers. This will help you to identify key areas where your business can improve or to give staff a pat on the back.

n In the Customer Reviews section, you can manage customer feedback and use positive views to promote your dealership over the competition. Customer reviews and how you manage them are a key indicator to potential car buyers that you are a trusted dealer – giving them the confidence to buy from you. n RAC Approved Dealers feature prominently on the RAC website, which attracts more than one million unique visitors each month. Using the Dealer Portal, you can see how often your business has been viewed by visitors to rac.co.uk and how many times they have clicked through to your website. n In addition, you have full access to approved RAC logos, artwork and content that you can use as an RAC Approved Dealer.

What they say on Customer Reviews ‘I was treated as a special customer from the moment I walked into the showroom.’ Miss Alexander Warrington Motors, Warrington

‘The salesman was very helpful and nothing was too much trouble. Best experience I have had when buying a car.’ Mr Clegg Cars Of Provenance Ltd

‘I am happy to have bought from an RAC-affiliated garage because I feel it is a mark of quality and reliability. We purchased an RAC Warranty to further protect our purchase and it has given us real peace of mind regarding this car.’ Jacqueline Tracey Pinewood Autos Ltd

Advertising on RAC Cars becomes absolutely free Car advertising on the raccars. co.uk website will be completely free for dealers from April 30 in a move that could save the average dealer an estimated £50,000 per year. Rupert Keane, chairman of raccars. co.uk, said: ‘With just a few dominant players in the online used-car advertising market, sellers feel like they are being held to ransom and paying top dollar to advertise. ‘As the motorist’s champion, the RAC wants to break the mould and offer something different that will benefit dealers and private motorists. ‘Dealers who currently spend tens or even hundreds of thousands of pounds advertising every year with car portals will now be able to do exactly the same for free. There are no catches: you just won’t pay anything for advertising any car.’ New and existing dealers will be able to upload their current stock easily – instructions are on the site at raccars. co.uk/dealeradvertising. In addition, RAC Approved Dealers offering BuySure will get feature prominence on the site and on search results listings, keeping them firmly in the eye of the buyer. A dealer who has 100 used cars for sale will on average turn over their stock every five weeks. Therefore, every five weeks they could pay the UK’s current largest search engine £5,000 (£10 per week per car). If they maintained that sell rate across the year their advertising bill would be £50,000. RAC Cars could save them £50k per year – or the average profit assuming £500 per car – of 100 car sales. To find out more about any of the RAC products or services on these pages, call us on 0330 100 3807 or send an e-mail to us at enquiries@racwarranty.thewg.com

rac plans to extend Breakdown cover to 12 months – free! A new offer planned by the RAC means all RAC Approved Network and RAC partner dealers will soon get an automatic free upgrade. Where they offer three months of warranty cover

from the RAC and three months of breakdown cover, the latter will be extended to 12 months free of charge including Roadside, Recovery and At Home. It’s part of our commitment to our dealers and to motorists across the UK.

STOP PRESS

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Finance

Welcome W

hen it comes to the finance arm of your business, there is no shortage of help available. From the bigname banks and household names in the world of funding options, to the more niche providers and smaller players who are also ideally placed to assist, you’re sure to be able to find a perfect partner. As we all know, there has been a certain amount of upheaval in the world of car finance over the past few months and we’ve all had to adapt to a new regulatory framework. The trick has been to make sure we adhere to all the new rules while continuing to achieve reasonable levels of business, satisfying our customers and, when all’s said and done, helping us generate some much-needed revenue for our businesses. There’s so much to consider when offering finance to your customers. Should you stick to prime levels of business or maybe venture into the sub-prime sector? What are the latest technological developments that can be embraced to assist the smooth running and profitability of your dealership? And, at the end of the day, how many customers can you send away happy in the car of their dreams with an appropriate finance deal in place? Over the following pages, we’re sure you’ll find the answers to those questions, thanks to the advertisers listed on the right.

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Your customers expect simplicity in everything they do – so why not talk to Alphera Financial Services?

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CarDealerMag.co.uk | 81

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Finance

You can go your own way MONEYWAY

W: moneyway.co.uk/motor-finance T: 08451 117 125

here’s an eye-catching image of a VERY angry woman on the Moneyway website. Why is she so annoyed? The reason is simple. She’s just managed to find her dream car at your dealership – but then she’s been denied the chance to buy it because she didn’t qualify for finance with your provider. Talk about frustrating! That lovely cup of coffee you made her is forgotten as she leaves the premises to continue her search elsewhere. However, with Moneyway as your finance partner, the outcome might well have been very different. The company, a division of Secure Trust Bank, specialises in working in the near-prime and non-prime sectors – and has big plans for the future. You can be sure that the company will fully support you if you decide to work with the Moneyway team. As managing director John Simpson said when we spoke to him recently: ‘The question we ask

ourselves every day, is ‘‘What can we do for dealers?’’ ’ Moneyway has been lending into the motor sector since 2008. Simpson recalls: ‘It was probably quite an interesting time to come in really – the start of the recession! ‘Our sources of business are dealers, brokers and internet providers. And our strategy at the moment is to target growth over the next three years. We’re looking to double the business in that period of time. It’s an ambitious plan. ‘We’ve widened the type of vehicles that we’re prepared to fund in the niche we operate in and we have increased our maximum lend, from £15,000 to £20,000. ‘To be lending up to £20,000 in the niche we are in is fairly significant. We have an appetite now to write more business and support dealers by offering increased credit.’ There’s another major move that Moneyway is taking to raise its profile and help more dealers. ‘Very shortly, we’re looking to take our first ��| CarDealerMag.co.uk

steps into the prime space,’ explained Simpson. ‘We are planning to pilot a prime product with six introducers. The thinking behind that is to really enable us to establish ourselves in the market and make sure our product is fit for that particular sector of the market.’ Exciting stuff! So it could be a great time to get involved with Moneyway… Simpson said: ‘We’re very proud of the fact that we offer a prime level of service in the near to non-prime sectors. We have a real bias towards technology and we look to provide fast decisions on as many of our proposals as we possibly can. ‘We have a thorough understanding of our sector and we operate very comfortably alongside captive finance companies or prime lenders. ‘What we’re about is turning their declined

deals into ‘‘accepts’’. In a nutshell, what we’re trying to do is enable dealers to sell more cars.’ Moneyway has certainly built a solid foundation that it is set to build on in the months and years ahead. ‘We have relationships with more than 4,500 dealers now. We have a very loyal customer base,’ emphasised Simpson. ‘We have traded for eight years during the recession and helped many dealers sell more cars when others exited the market.’ Returning to the theme of technology, Simpson said: ‘We don’t accept proposals any other way than electronically. They either come to us via a dealer’s direct XML feed, an intermediary XML feed, or direct through our dealer frontend system. That enables us to provide the fast

with Moneyway... HAPPY AND LOYAL CUSTOMERS

‘‘

It’s been a very positive first 12 months. Everything seems to be moving in the right direction. – John Simpson

response that we want to give – and goes back to my point of providing prime service for the near to non-prime sector, where we are a leading provider.’ As part of Moneyway’s expansion, there is a significant recruitment drive taking place at the moment. Simpson revealed: ‘An indication of our growth ambitions is that the size of our field force will have almost doubled by the time we have finished recruiting. ‘Our field staff are available 24/7. And although our internal processes are very slick and technologically driven, we have a call centre staffed by friendly and efficient people.’ The Moneyway team certainly has the expertise and experience to back up their levels of customer service and great range of

finance products. Simpson himself has 30 years’ experience as a supplier to the motor industry. Big names such as Black Horse, Santander and Manheim are on his CV and he’s been at Moneyway as Managing Director for a year now. ‘It’s been a really enjoyable year,’ he told us. ‘Clearly, I’ve spent the past 12 months familiarising myself with the business and developing our medium to long-term strategy for the motor business. Out of that, we’re starting to see our risk appetite changing slightly in that we’re now lending on higher-spec vehicles and higher balances. We’re looking to take our first steps into true prime lending and we’re seeing good growth in our new business numbers. It’s been a very positive first 12 months. Everything seems to be moving in the right direction.’

Anyone can claim to have lots of satisfied customers. But how many people can actually PROVE it? Well, Moneyway can – and when we say customers in this instance, we mean the people who are actually buying dealers’ stock rather than the dealers themselves. That’s not to say that dealers are unhappy. John Simpson justifiably points to the loyalty of his customer base as evidence of that and acknowledges that, in a fairly busy car finance landscape, anyone feeling less than satisfied would quickly vote with their feet. But he says: ‘One of the things we are very proud of is our customer satisfaction rating with end users, our consumers. We use an online feedback engine called Feefo and we’re one of the few companies in the motor industry that actually does survey the end customer. ‘We have currently got a 95 per cent satisfaction rating. For a dealer to be confident that their lender has a 95 per cent satisfaction rate with the end user is a real positive. ‘Any dealers working with us can be confident that Moneyway will deal with their customers correctly. ‘If we do get any negative feedback, we immediately contact the customer to try to resolve the issue. That’s the commitment we give to our dealer partners.’ Although not necessarily the top priority for car dealers, Simpson is proud of the fact that his company has helped a lot of people repair their credit ratings over the past seven years. ‘Quite a few of them experienced the difficulties that we were all aware of during the recession,’ he said. ‘What Moneyway was prepared to do was lend in those circumstances to give people the opportunity to recover their personal circumstances. ‘From that, we’ve built a good business. We’ve supported the industry in terms of helping them sell cars, and supported consumers through their daily lives.’ CarDealerMag.co.uk | 85

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Finance

Simplicity and transparency Alphera Financial Services

n the world of Amazon, Google and Apple, customers expect simplicity in everything they do. The motor industry needs to acknowledge this trend and embrace it. As a matter of fact, it is not only the customer that demands simplicity, but also the sales teams in dealerships, who have been complaining about the complexity involved in the current finance packages provided. Alphera has listened to these demands and has led the way by launching the most simplistic and transparent pricing and commission model available to the market. This new approach focuses on three key goals: n To provide simplicity for dealerships and customers. n To ensure the best outcome for customers. n To allow retailers to maintain their levels of profitability. The new Alphera business model should, however, not just be seen as a response to the regulator. While it shows the business has listened to the FCA and its requirements, it is actually about moving the whole industry forward by providing both the customers and the dealers with what they demand: an easy to understand, transparent and fair finance model. Indeed, with the motor trade facing its first full year of Financial Conduct Authority (FCA) regulation in 2015, it’s more important than ever for the industry to embrace these changes in order to secure future success. Focus on what is right for the customer Director Andy Gruber explains the company’s new business model, its drivers for change and, importantly, the opportunities for the industry. ‘While the FCA has recently provided the sector with increasing clarity, we had already decided that the time was right to commit to a new model of working which truly puts the customer first following a strategic review back in 2012. ‘The key feature of our new pricing model really is its simplicity. There will be no customer fees any more, apart from a nominal optionto-purchase payment. In addition, we have removed the need for any volume bonus and will instead pay a fixed commission at a capped rate, regardless of the product, term or age of ��| CarDealerMag.co.uk

W: alphera.co.uk T: 01256 747824

the vehicle. Should the dealer see the need to discount this offer to help enable a customer purchase, a simple table will show how much this will cost. ‘The focus of our new approach is around being simple and compliant, yet ensuring our partners are able to remain profitable and increase their finance penetration by fully engaging their sales teams and making it easy for the customer. ‘Partners who have already adopted this approach have benefited from significantly improved penetration rates, as a result of both the sales people and customers fully buying into a simple and transparent pricing structure. ‘While some dealerships are nervous that a ‘‘one-rate-for-all-customers’’ approach will negatively impact their profits, we can see that in fact the opposite is true with those dealers that have adopted this approach. The increase in penetration more than offsets any potential loss in income per retailed unit and, as a matter of fact, the bottom-line profits increased as a result of the new approach. ‘Not only have their profits increased, but clearly the opportunities for the dealers to retain more of their customer base have also increased on the back of higher penetration rates, since we all know that a finance customer has a higher chance of returning to the originating dealer at the end of his contract. ‘Moreover, a culture of treating customers fairly in dealerships will naturally increase customer satisfaction and loyalty. ‘In my opinion, by putting the customer at the heart of everything we do, it is perfectly possible to increase the share of dealer-sourced car finance from the current 75 per cent to more than 80 per cent. We should, therefore, be able to create our own growth opportunities, even if the growth in overall car sales slows down in 2015.’ Continuing the journey Alphera’s Andy Gruber continues: ‘We are facing a really important and exciting time for the industry. Simplifying finance deals, ensuring transparency and making decisions with the customer at the heart of the business are all key to guaranteeing a successful future. ‘We will see further standardisation from FCA regulations in the next 12-18 months but beyond this we must continue to listen to our

customers and innovate the way we do business. As an industry, we need to stop talking about commission and remuneration and instead need to focus on what our customers really want. We need to take the brave pill and show how the motor finance industry can set the TCF benchmark for all industries. ‘Alphera is leading this charge but it’s a journey and it’s a journey we’re all on as an industry, together.’

It works: HWM A FAMILY-OWNED and managed business, HWM is proud of its association with Aston Martin, which has flourished uninterrupted since 1951. HWM has been selling, servicing and providing parts for Aston Martin models for more than 60 years, making the Waltonon-Thames based company the world’s longest serving Aston Martin dealer. Unsurprisingly, HWM has a reputation for providing impeccable service to its customers and offers a variety of finance options. Paul Flitter, commercial manager at HWM, explains how the entire team has embraced

key to F&I profits

‘‘

Andy Gruber

The key feature of our new pricing model really is its simplicity.

Alphera’s new business model: ‘The way in which we operate has always been transparent, so we didn’t need to make any drastic changes to ensure FCA compliance. ‘Our customers have always received the highest levels of service and clear explanations of the products that we offer, thus the biggest variation we’ve made is in the record keeping. ‘These processes help us to share the way we reached the finance decision with our customers. ‘Change is notoriously difficult to manage, particularly within car dealerships where members of staff have worked there for many years.

However, working with the team at Alphera to implement their new business model has been relatively smooth – due to a combination of our existing best practice processes and the clear and supportive guidance from our account managers. We believe the new regulations bring significant benefits for both the business and the customer: confidence in the business and increased retention.’ HWM is embracing the opportunities delivered by the FCA and Flitter believes the future is bright for the world of retail. He says: ‘We are seeing a significant difference in how people buy cars and

take out finance. Dealers and manufacturers need to respond accordingly – and are doing so. ‘Customers are becoming more transactionready and more informed. We, as an industry, must present our customers with all of the information they need in a transparent way. ‘Alphera’s new business model encourages this and has supported us in continuing to ensure our customers are at the heart of everything we do. Ultimately, our objective is to operate within the guidelines. ‘Achieving that will mean everyone gets a good night’s sleep.’ CarDealerMag.co.uk | 87

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Finance

Forward-looking finance puts paragon car finance

ince re-entering the motor finance market 12 months ago, Paragon Car Finance has been steadily growing its broker and dealer distribution base with an unwavering focus on competitive interest rates, speed of response and a high level of underwriting expertise. Launched in February 2014, just ahead of the transfer of consumer credit regulation from the OFT to the FCA, Paragon Car Finance was always primed to support introducers at a time of rapid change. Undoubtedly one of the biggest events to impact the industry in recent years, the new regime has put a renewed emphasis on clear communication with customers, fairness and affordability. Our flexible range of hire purchase and lease purchase finance packages, our easyto-use online application system and our offer of direct access to experienced underwriters have all been well-received by introducers, helping them deliver no-fuss finance for their car-buying customers. As the franchise broadens, we have added new products, including our recentlylaunched LCV finance packages, and as we get closer to individual introducers, we’ve also been able to tailor products that fit more intimately with their own target markets. Looking ahead, the market continues to move at a pace and introducers will need high-quality support from their lenders if they are to capitalise on the opportunities and cope with the subtle shifts coming down the track. One of the biggest changes we anticipate over the next 12 to 24-month period is the levelling off in new-car registration growth in the

‘‘

W: paragoncarfinance.co.uk T: 0845 149 7777 UK and an uptick in used-car sales. New-car registrations have grown markedly in the UK in recent years, rising to 2.47 million in 2014, a 10-year high. An improving economic outlook, large-scale manufacturer support and availability of popular PCP finance packages have all played their part in this impressive growth story. As registrations begin to plateau and PCPfinanced vehicles return in increasing volumes, dealers now need to scale up their used-car finance support to service the new tier of used-car buyers entering the market. Direct-to-consumer finance growth will also present an increasing source of competition for the traditional, introducer-based finance model. We already know the average consumer is making fewer visits to the car showroom before finalising a purchase than five years ago, doing more research online around vehicle make and model than ever before. As the availability of direct-to-consumer finance packages grows, in-dealership finance will need to match up, with strong support from lending partners who can respond quickly to an application and offer interest rates and product features that are at least as strong as the customer can secure independently. With that in mind, we believe pricing on dealership finance will become much more granular as we move forward, tracking each customer’s individual credit profile to help dealers continue to compete with direct lenders.

Julian Rance, left, is head of car finance at paragoncarfinance.co.uk

As registrations begin to plateau and PCP-financed vehicles return in increasing volumes, dealers now need to scale up their used-car finance support to service the new tier of used-car buyers entering the market. ��| CarDealerMag.co.uk

customers in the driving seat

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Finance

Leave the finance to us – you the car finance company

f you heard that someone wanted to start a finance company in the wake of the worst economic recession in living memory, you’d probably want to check they hadn’t gone stark, raving mad… But Mark Smith had a plan. He wanted to create a company that put the customer at the centre of every decision. A company that would talk to every customer, to make sure they knew the commitments they were signing up for, and offering them advice. A company that looked at a customer’s future financial position, and not just how they were faring when they signed on the dotted line. And a company that ... well, just did things right. It worked. It was a tough beginning – Smith admits he ‘remortgaged the house, topped up all my credit cards, borrowed money from friends and family’… but The Car Finance Company has grown into one of the biggest success stories in the country, ranking second in The Sunday Times Fast Track 100 and gaining a place in The Sunday Times 100 best companies to work for.

W: thecarfinancecompany.co.uk

And dealers love it. The Car Finance Company takes the stress out of the raft of legal obligations now faced by every dealership in the country. Smith says: ‘We do things differently. It’s very personal, it’s relationship led. The business model is consumer friendly, we don’t sell add-on products, or cross-sell other products. ‘We have always worked with car dealers, and we have some really successful relationships and a lot of volume producers – but there’s space for many more. We are on a drive now to get from 2,000 new deals a month to 5,000 new deals a month, and we ought to do that within the next five years, but ideally within the next three. ‘We say we will work with “credit-challenged” businesses and consumers, but we will never finance anybody who cannot afford it. But we don’t credit score. ‘We take a balanced view of people’s expected life circumstances in the future. You can’t do it based on where they are now, because that’s just one particular day – you have to have a forwardlooking view. ‘Every customer is met by a member of staff

The team behind The Car Finance Company... by Mark Smith I spent my early career in the military but was pensioned out after 14 years. I subsequently worked for couple of lenders when they were juvenile companies, Welcome and First Response, and then spent eight thoroughly enjoyable years with Advantage Finance – I was with them from the first day they opened their doors. In 2007 I decided to branch out on my own as a finance broker, but as a result of the financial crisis, and the exiting of many finance companies in the market, in January 2009 I decided to become a lender direct. The rest, they say, is Mark Smith, right, with directors Ivan Gunatilleke and Nigel Clibbens

��| CarDealerMag.co.uk

history… I’m now the executive chairman. Then we have Ivan Gunatilleke, the CEO, who used to be the chief operating officer at Cable & Wireless (a FTSE 100 company). And our chief financial officer is Nigel Clibbens, who is also chairman of the Finance Leasing Association (FLA) and formerly the chief operating officer of Lombard. Our sales director is Lorna Rossi, who has a long career at a senior level within the motor finance world. Yes, we have some big hitters…

at the dealership where they’re buying a car. We validate their ID, their income and their expenditure, we talk to them about us and their HP contract. It’s very thorough, and the benefits are that we remove from the dealers the regulatory burden of the paperwork, and frees up more time for them to sell more cars.’ And while many people are fearful of the new regulations being brought in by the FCA – and there are growing worries in the industry that a dealership will soon be brought to task as the FCA flexes its muscles – Smith says: ‘The regulations are a great thing. The regulators’ purpose is to protect consumers and ensure the financial markets run well while encouraging competition. ‘I think the FCA will ensure businesses who don’t do it properly will be rightly closed. This presents a great opportunity for those who comply. The only people who have anything to fear from the new regulators are those who don’t do things properly in the first place. If you put customers at the heart of your operation and comply with “the rules”, you have nothing to fear.’ And it’s a winning formula. Smith says: ‘Over the past five years we have built up our loan book so we now have more than 30,000 customers. By the end of this year we should look after around 50,000. ‘We have 350 staff at the moment, but we’ll have about 500 by the end of the year, and I expect within the next three years we’ll have close to 1,000. Around 50 per cent of them are based in Portsmouth, but we will send a member of staff all around the country to meet a customer at any dealership. We probably have the largest field-based force of any motor finance provider in Europe for dealer support. ‘Yes, the company has been more successful than I envisaged – we’re the largest now, I think. I don’t know of any other alternative car finance providers who do more deals than us, but I stand to be corrected if there is. ‘It’s testament to doing things right, customer simplicity, and creating a symbiotic relationship between all The Car Finance Company’s stakeholders, who are our customers, car dealers, regulators, staff as well as shareholders.’ [CD]

u can just carry on selling cars T: 02392 448 500

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We remove from the dealers the regulatory burden of the paperwork, and free up more time for them to sell more cars.

CarDealerMag.co.uk | 91

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Supagard

Why we’re the market leader SUPAGARD

W: supagard.co.uk T: 0141 633 5933

Leather

We are the only company in the UK that produces a leather preserver that coats the leather and protects it against water and oil-based stains. Supagard’s leather preserver is unique within the vehicle protection sector and is supported by a three-year guarantee. That comes back to our research and development – it was our American lab that came up with this type of product and it has taken us a number of years to develop it and make it easily applied.

here is no better endorsement of the Supagard products than the number of customers who use them. And not only that, the number of customers who keep on using them, who come back after a number of years to get their second car Supagarded, and their third car, and who recommend it to their friends. Supagard leave nothing to chance. ‘Not only do we test our products, we get independent companies to test them,’ they say. ‘We use a company in London called PRA – Paint Research Association to conduct various product quality tests. ‘We get independents to analyse and test them ��| CarDealerMag.co.uk

to provide an impartial opinion. Manufacturers are another good indication as they are keen to promote proven products that add value to their after-sales proposition. Supagard are approved by 15 manufacturers, mostly long-standing relationships. ‘The first manufacturer to partner with us was Nissan GB 18 years ago, and they still continue to be a valued partner with us today,’ say Supagard. ‘And the most recent acquisition to our manufacturer portfolio is Aston Martin.’ So what do the dealers think? Simon Boxall, the chief operating officer of Jemca Car Group, says: ‘We moved to Supagard from another wellknown paint protection supplier in 2010. In that

time, our joint efforts have supported a valuable increase in performance with significant year-onyear penetration increases being generated. ‘As we head towards a group penetration of 50 per cent, such increases have not only had a sizeable impact on our bottom line but have also proved to be an important contributor to our Value Chain Index rewards. ‘Both the level of account management support and management information provided by the Supagard team has played a key role in our improved performance. ‘In addition, the quality of the Supagard products has proven to be excellent. The ease of application and low level of guarantee claims has

Paint

We have been the market leader for the past 28 years because we probably spend more time in research and development than any other company. We have spent years researching and developing new products, and in 2015 we are introducing another form of polymer in the form of a polysilazane coat. Our tried-and-tested technology won’t change – we have already evolved that over the past 28 years and although the original recipe has moved with the times, it has always been the preferred choice because of the ease of application, and because of the gloss finish on the car.

Fabric

We originally started with paint protection, and then moved on to fabric, then vinyl, then leather as the products have evolved. A lot of the fabrics used in cars have changed over the years, so we have had to keep pace with the different technologies. The fabric protector product originated in Switzerland and has been applied to more than three million vehicles. The active ingredients in our products is extremely high. We don’t build our products around price, we build them around quality.

provided another commercial benefit worthy of note. ‘I wholeheartedly recommend the Supagard products and services to any dealer group looking to generate incremental profits via an improved paint protection performance.’ Lee Rowe of Quality Assured Valeting says: ‘The new product is the best there is on the market – Supagard are going to clean up with this. There is nothing else being offered that can touch it. It’s brilliant – a strong, strong product. ‘We have tested it for the past four months at Listers

Droitwich with Land Rovers and Range Rovers, and it has been phenomenal. It’s the best product Supagard have ever produced. It goes on nicely, it comes off nicely, and the finish is unbelievable. It’s the best coating I have ever used in 18 years, it’s that good. We have used all the products in the market at one stage or another, but this is the best. The results speak for themselves. ‘Of all the companies in this

Simon Boxall, the chief operating officer of Jemca Car Group

training & support To ensure dealer staff are in the know and ready and waiting to make a sale, Supagard offers dealerships a comprehensive package of training and support programmes to suit various training needs. Supagard also offers free follow-up courses and intensive tuition. Of course, the vehicle is the most important part of any deal – but other associated products like GAP, dealer-fitted accessories and paint protection also require a strategic approach to develop performance. Supagard staff will go to dealerships and conduct a comprehensive induction course, part of which includes learning how to sell the product. There is also the opportunity for follow-up training, when Supagard helps under-performing sales staff and managers by giving them refresher lessons. It means Supagard not only offers a vast range of protection and security products, it can also arm any sales team with the knowledge and skills required to maximise the financial opportunity that paint protection represents.

market, I have found Supagard to be the most knowledgeable and the most approachable, and if there is a problem, they want to solve it. They’re on another level.’ And he says the training offered by Supagard leaves nothing to chance. ‘The product has be applied properly – if dealers apply it incorrectly, they’ll cheapen the product, and that’d be a shame. But there’s a lot of training offered, and it’s very good quality training. I think I’m pretty nerdy, but they are really nerdy – they love what they do, and they have been brilliant through the whole process. ‘The whole Supagard experience is very, very good.’ CarDealerMag.co.uk | 95

focus on.

Supagard

Simply the best T

here’s a simple reason Supagard is number one in the car protection business. Because they focus on being a few steps ahead. The company has been in business for 28 years, and has been the market leaders in all of that time. And Supagard continues to evolve. Not just with the product – although huge steps have been taken there, but more of that later. The outlook of the company is changing, its branding, and its sales process. A significant investment was made last year to renovate the head office to give clients the Supagard experience from the moment they enter the building. It is adding new technology to the marketplace, and to its portfolio of protection products. But don’t expect to read any trade secrets here –if you want detail, speak to the sales teams! General manager James Smyth says: ‘First and foremost, we’re about paint protection. Twentyeight years ago we launched a polymer-based product and it’s been the market-leading paint protection system ever since. ‘The market has changed over the years – people have come out with fantastic new technologies, and cleaning technologies, but what we have done behind the scenes is spent the past 12 years researching and developing new products, and in 2015 we are introducing another form of polymer in

��| CarDealerMag.co.uk

‘‘

is one the market place is excited about. ‘It has taken us 12 years to get this new product where it is now. There have been many revisions of it over the years, but we have never felt it was exactly right to take it to market. This is the one we are proud of. It works in a slightly different way. This product we have now optimises all our knowledge and our research.’ And that research goes into leather and fabrics, too. ‘There are lots of people behind the scenes at all times working on product development. When you consider we don’t have a massive number of products, they’re concentrating on making the products even better.’ And one thing you can be sure of – the products Supagard produces can be used anywhere and everywhere. ‘There has been a lot of talk about REACH – Registration, Evaluation, Authorisation and restriction of Chemicals. It refers to health and safety around the world and we always make sure the products we are selling are compatible with regulations around the world.’ Most dealers already know about the benefits of Supagard. Last word to head of brand David Paterson: ‘The introduction of the Xtra range represents another milestone in paint-protection technology. As a result, our manufacturer partners and the 3,000 dealerships we supply will be able to offer an even stronger proposition to their customer base.’ [CD]

We endeavour to be a few steps ahead – that’s what we’re about as a company.. James Smyth the form of a polysilazane coat. ‘We spend most of our time focusing on staying ahead – that’s what we’re about as a company. The pedigree of the product our dealerships are using is better than ever. We as a company know the product from the lab up – that’s what we’re about and why we take so much pride in our products. ‘We use three labs – in America, Switzerland and the UK. We spend a lot of time on the phone to the chemists discussing polymers – that’s our favourite subject. We are always trying to optimise our knowledge to drive progress within our sector and bring added value to our client base. And the new Supagard paint protection system

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CarDealerMag.co.uk | 97

DATA FILE.

Ask Lawgistics

They’re just time-wasters.. please help !

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

I have heard various rumours regarding the definition of disability under the Equality Act. Are things such as obesity and type 2 diabetes now considered a disability, or not? There have been a number of cases in recent months on the topic of disability. Under Section 6 of the 2010 Equality Act, a disability is defined as a physical or mental impairment which has a substantial and long-term adverse effect on an individual’s ability to carry out normal day-to-day activities. Let’s deal first with obesity. The European Court of Justice appears to have deemed that, in certain instances, obesity may be considered a disability. For example, if obesity significantly reduces the mobility of an individual and therefore limits their ability to do certain tasks, they could be held to be disabled. However, this was simply guidance for national courts to interpret for themselves on a domestic level. A recent English case held that obesity itself cannot purely be classed as a disability; however, obesity can cause other aliments which may place limitations on an employee in terms of their ability to perform their job. In essence, if the obesity causes long-term impairments either physically or mentally, the employee may need to be assessed to determine if they are a disabled worker. As such, it seems that while obesity itself cannot be considered a disability, an illness

connected with it, or which has come about as a result of obesity, could well be. However, in a recent case in Northern Ireland, they appear to have followed the ECJ guidance and suggest that an employee can be deemed to be harassed as a result of being obese and as such could be considered disabled for the purposes of the Equality Act 2010. As such the jury remains out on the whole issue, and each new case will be a test case for the courts. Now let’s look at Type 2 diabetes. A claim was raised recently at an employment tribunal, as to whether type 2 diabetes, which is controlled by a person’s diet, could be considered a disability. The claimant argued that because they had to adhere to a specific diet to maintain lower blood sugar levels, they were a disabled person. The original tribunal agreed with the claimant and allowed the case to succeed. This was appealed by the respondent. The Employment Appeal Tribunal then overturned that decision, stating the following: ‘The employment tribunal had misapprehended the concept of disability under the Act’ and added: ‘A minor alteration of a diet [is] not a long-term condition restricting the ability of the claimant to carry out ordinary day-to-day tasks.’ As such, the claimant was not entitled to reasonable adjustments, nor was the behaviour exerted towards him deemed to be less favourable in any way.

.com

Why a prompt response is simply so crucial Q

I sold a car to a customer last month for £9,500. I refused a refund as they appear to have a simple case of ‘buyer’s remorse’ but they have now decided to issue a claim against me in the county court. Contact us immediately and send a copy of the claim form. We can then assess the merits of the case and guide you through both the relevant law

and the court process. We can’t stress how important it is to react promptly. Once the claim is sent to you, you get only 14 days to ‘acknowledge service’ which confirms receipt to the court. Once this is done, you get a further 14 days to send in a defence. If you fail to acknowledge service, you will almost certainly get a default CCJ against you which could cause

ADVICE

all sorts of issues – not least with obtaining credit in future. We will help you prepare your defence and any other documents that the court requires. Many cases never progress all the way to a hearing and are settled at an earlier stage. For small claims such at this (under £10,000), the courts offer a free one-hour telephone mediation service. If that fails, the court will set a date for a hearing which you will need to attend.

I have a customer who bought his vehicle on HP. He keeps coming back to me about stupid little things claiming various rights under the Sale of Goods Act. At first I was happy to help but he has become a timewasting pain. What can I do? Unfortunately, there are customers who think the Sale of Goods Act means their used car should look and drive like a brand new one despite them paying a used car price. Clearly, this is not the case and customers do need to realise that a used car is just that: used. Of course that doesn’t mean that dealers can get away with selling a heap of junk – but the age, mileage and price paid all need to be taken into account when considering the muchquoted ‘satisfactory quality’. However, in this case, the vehicle was purchased on HP. This means that technically you sold the car to the finance company who then hire it to the customer. As such, you do not have a contract with the customer and so the Sale of Goods Act does not apply. You can then legitimately refer the customer to the finance company who will have an obligation to the customer under The Supply of Goods (Implied Terms) Act 1973. That will get the customer out of your hair but please do bear in mind that the finance company may seek redress from you if they think the customer has a genuine issue.

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Haven’t got Lawgistics on your side? That’s just foolish! We talk to a couple of keen fans of the firm CRYERS Hill Garage has been selling used cars in High Wycombe, Buckinghamshire, for more than 21 years and owners Tony Rosewell and Adrian Brewer have a combined 60 years of experience in the motor trade. This doesn’t mean they’re never in need of legal advice, however – in fact, they’ve used Lawgistics for 10 years now. Rosewell told us he thinks any car dealer not involved with them is a fool! He explained that whenever they knew they had a tricky customer, dealing with Lawgistics was simple and straightforward – it was just a case of picking up the phone. And he told us he could easily tell if there was trouble brewing when a letter from a potentially-difficult customer arrived at the business. ‘You can tell from the tone of the letter if it’s a serious problem. ‘If it is, we just pick up the phone and speak to one of the guys at Lawgistics and it’s a case of problem sorted,’ he said. Rosewell added that although there hadn’t been many times when they’d had to use the service to resolve a serious issue, they had called for advice and guidance a handful of times. ‘To be fair we’ve not used them that often but we’ve used them a few times and they’ve never let us down,’ he said. ‘You just pick up the phone and you talk to them. You never have to phone back as there’s always someone there you can talk to. They’re very, very good, very professional and always give you the answers you want to hear. ‘We had a customer who bought a car on one occasion who complained about a ‘‘problem’’ that wasn’t actually there. ‘He’d taken the car several places, we’d had the car back several times and we could not find the problem with this car.

Tony Rosewell, left, and Adrian Brewer

‘He seemed to have a lot of time on his hands. We got Lawgistics involved with it and they did a superb job. All the letters and the correspondence was taken care of for us and in the end this customer just gave up. It worked out very well for us. ‘He was trying to get £900 or £1,000 from us and then he wanted to return the car and get a full refund. But Lawgistics nipped that in the bud and sorted him out. ‘Of course, if there’s a genuine problem, we will always work with a customer to resolve the issue, but this man was just trying it on.’ Car Dealer Club members can take advantage of Lawgistics’ services for just £39.99 which also includes the other benefits listed below. Rosewell continued: ‘I think that if you haven’t got Lawgistics on board, then you’re exposing yourself to all sorts of things. ‘If you phone a firm of solicitors there’s a £200 bill coming, whereas phoning Lawgistics is included in your package as a member of Car Dealer Club. ‘I think really to be a dealer and not have them on your side is foolish.’

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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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DATA FILE.

Thestatistics n

SMMT Sales Data

Taking Stock

‘Momentum has to be maintained after the election’

Almost 500,000 vehicles were registered in March, according to the SMMT

igures recently released by the SMMT show 492,774 cars were registered in the plate-change month of March – the best month since the twice-yearly number plate changes were introduced in 1999. New products and attractive finance packages underpinned by low interest rates helped deliver this record result. The fleet sector led the way with 11.6 per cent year-on-year growth, reflecting the economic confidence currently felt by UK companies. Registrations so far this year have increased by 6.8 per cent to 734,588. The 37th month of consecutive growth for the new car market shows the continuing demand for new products and new fuel-efficient and advanced technologies. The UK market surpassed prerecession levels some seven months ago, helping bolster the economy and drive it out of recession. This growth, supported by domestic manufacturing, has attracted more than £14 billion of

investment since 2011, creating almost 30,000 additional jobs. Mike Hawes, SMMT chief executive, said: ‘The best month this century for new car registrations is a welcome boost for the UK’s thriving automotive sector. The challenge for a new government and industry will be to maintain this momentum and to strengthen Britain’s manufacturing capabilities through continued investment, innovation and policies which maintain our global competitiveness. ‘Whatever the general election result, the new government must keep up the

commitment to the sector which is delivering at home and abroad.’ Richard Lowe, head of retail and wholesale at Barclays, said: ‘The motor trade’s winning streak continued last month in record style, with new car sales lifted by March’s all-important plate change and strong demand for fleet vehicles. ‘The question on everyone’s minds is how long this phenomenal run can continue and whether April will be able to drive home another record month.’ The 10 best-sellers for March were, starting with the car in pole position, Ford Fiesta (27,034 examples registered); Vauxhall Corsa (19,391); Ford Focus (15,442); Nissan Qashqai (12,210); Volkswagen Golf (11,871); Volkswagen Polo (10,038); Vauxhall Astra (9,617); Audi A3 (9,101); Mercedes-Benz C-Class (8,755) and Fiat 500 (8,662). Among other brands reflecting on a successful month were Mitsubishi (registrations up 206.5 per cent); Jeep (+396.6 per cent) and Lotus (+169.23 per cent).

Why staying in the EU remains best for business AS EVER, the issue of Europe is at the forefront of many voters’ minds as the election approaches. And although there is no shortage of people calling for an in-out referendum, the SMMT is convinced a UK exit from the EU would be bad news for our automotive sector. In a statement issued to coincide with the release of the March registration figures, the organisation ��| CarDealerMag.co.uk

said: ‘Membership of the European Union is critical to the UK automotive industry; the sector’s competitiveness is dependent on access to the European single market, integrated supply chains, international trade agreements, common regulations, funding for innovation and free movement of labour. SMMT members want to see reform of the EU with greater emphasis

on industrial competitiveness and better regulation but believe membership of the EU remains best for business.’ On innovation and funding, the SMMT said that investment in skills would ensure the UK workforce has the capabilities to work on the next generation of vehicle technologies, particularly in the areas of ultra-low emission vehicles and connectivity.

SMMT sales data Mar/year to date

Top

Most-improved manufacturers in March Jeep

+397%

Infiniti

+350%

Mitsubishi +206% Lotus

+169%

Maserati

+96%

Bottom

Worst-performing manufacturers in March Perodua

-100%

Chevrolet

-99%

Chrysler

-93%

Suzuki

-13%

Skoda

-12%

SMART +23.09%

SKODA -12.02% Figures supplied by SMMT

March 2015

Marque

2015

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

349 1,079 212 29,153 250 26,925 1 27 16,770 5,340 11,924 63,466 11,975 16,470 153 3,903 2,190 15,017 15,508 2,446 70 202 10,084 26,616 661 0 10,962 5,609 31,026 0 21,825 1,928 0 15,868 0 8,845 11,355 1,013 452 737 7,370 20,541 48,689 38,685 6,662 93 323 492,774

% market share 0.07 0.22 0.04 5.92 0.05 5.46 0.00 0.01 3.40 1.08 2.42 12.88 2.43 3.34 0.03 0.79 0.44 3.05 3.15 0.50 0.01 0.04 2.05 5.40 0.13 0.00 2.22 1.14 6.30 0.00 4.43 0.39 0.00 3.22 0.00 1.79 2.30 0.21 0.09 0.15 1.50 4.17 9.88 7.85 1.35 0.02 0.07

March 2014

2014

305 1,134 199 28,841 250 26,977 1,329 409 15,601 4,973 12,749 63,149 13,036 14,930 34 4,150 441 14,787 11,987 2,142 26 103 8,576 22,369 361 0 6,769 1,830 25,529 2 21,564 1,466 0 13,805 1 9,429 12,907 823 295 505 8,472 19,148 50,068 36,276 6,827 104 146 464,824

% market share 0.07 0.24 0.04 6.20 0.05 5.80 0.29 0.09 3.36 1.07 2.74 13.59 2.80 3.21 0.01 0.89 0.09 3.18 2.58 0.46 0.01 0.02 1.84 4.81 0.08 0.00 1.46 0.39 5.49 0.00 4.64 0.32 0.00 2.97 0.00 2.03 2.78 0.18 0.06 0.11 1.82 4.12 10.77 7.80 1.47 0.02 0.03

% change 14.43 -4.85 6.53 1.08 0.00 -0.19 -99.92 -93.40 7.49 7.38 -6.47 0.50 -8.14 10.31 350.00 -5.95 396.60 1.56 29.37 14.19 169.23 96.12 17.58 18.99 83.10 0.00 61.94 206.50 21.53 -100.00 1.21 31.51 0.00 14.94 -100.00 -6.19 -12.02 23.09 53.22 45.94 -13.01 7.27 -2.75 6.64 -2.42 -10.58 121.23 6.01

2015 528 1,438 264 44,919 407 40,024 2 96 25,258 7,529 18,049 94,804 17,164 24,866 232 4,952 2,722 22,265 20,605 3,686 88 375 14,730 40,311 859 0 14,961 7,970 46,247 0 32,913 2,730 0 20,593 0 14,158 18,731 1,310 622 950 10,190 30,210 75,176 60,388 10,591 166 509 734,588

Year-to-date (YTD) % market share 0.07 0.20 0.04 6.11 0.06 5.45 0.00 0.01 3.44 1.02 2.46 12.91 2.34 3.39 0.03 0.67 0.37 3.03 2.80 0.50 0.01 0.05 2.01 5.49 0.12 0.00 2.04 1.08 6.30 0.00 4.48 0.37 0.00 2.80 0.00 1.93 2.55 0.18 0.08 0.13 1.39 4.11 10.23 8.22 1.44 0.02 0.07

2014

420 1,576 257 43,766 472 37,937 2,561 590 24,178 6,821 18,782 94,876 18,265 23,103 116 5,474 716 21,608 17,098 3,040 43 187 12,487 33,799 546 5 9,767 2,727 37,808 12 32,433 2,140 1 17,656 1 14,023 20,307 1,290 429 670 11,520 27,732 74,292 56,271 9,909 202 209 688,122

% market share 0.06 0.23 0.04 6.36 0.07 5.51 0.37 0.09 3.51 0.99 2.73 13.79 2.65 3.36 0.02 0.80 0.10 3.14 2.48 0.44 0.01 0.03 1.81 4.91 0.08 0.00 1.42 0.40 5.49 0.00 4.71 0.31 0.00 2.57 0.00 2.04 2.95 0.19 0.06 0.10 1.67 4.03 10.80 8.18 1.44 0.03 0.03

% change 25.71 -8.76 2.72 2.63 -13.77 5.50 -99.92 -83.73 4.47 10.38 -3.90 -0.08 -6.03 7.63 100.00 -9.54 280.17 3.04 20.51 21.25 104.65 100.53 17.96 19.27 57.33 -100.00 53.18 192.26 22.32 -100.00 1.48 27.57 -100.00 16.63 -100.00 0.96 -7.76 1.55 44.99 41.79 -11.55 8.94 1.19 7.32 6.88 -17.82 143.54 6.75

CarDealerMag.co.uk | 101

TAKING STOCK. Remarketing specialist BCA reflects on what the future may hold after publishing their latest Pulse report . . .

Steady demand for the range of stock on offer says Simon Henstock, BCA’s UK network operations director

ur latest Pulse Report shows the headline average value of a used car fell in March, although values remain ahead year-on-year. The fall in the headline value reflected a small change in the volume mix over the month as dealers sold greater numbers of part-exchange vehicles. Despite this decline in the headline figure, both fleet and lease and part-exchange values were at near record levels in March, with both sectors recording value growth over the year. The headline average value of a used car in March fell to £7,524, down by £290 (3.7 per cent) compared to February. Performance against CAP Clean fell marginally from 99.08 per cent in February to 98.77 per cent in March. Year-on-year, however, values were up by £137, a 1.8 per cent rise with average mileage and age changing little over the year. Performance against CAP Clean was up slightly compared to 2014. Despite volumes continuing to rise in the

‘With the election in full swing we should expect a little uncertainty.’ wholesale sector, demand was steady across the range of stock on offer at BCA in March. Reflecting seasonal patterns, we saw greater volumes from dealer part-exchange sources and this shift in the model mix impacted the headline value. As we said last month, retail demand typically softens post-Easter and with the general election campaigns now in full swing we should expect a little uncertainty in the wholesale markets over the coming weeks. Fleet and lease cars averaged £9,670 in March, a fall of just £3 compared to

Average value of a used car (Feb-Mar)

3.7%

��| CarDealerMag.co.uk

the record value achieved in February. Average age and mileage were broadly static over the month, while retained value against original MRP (Manufacturer’s Retail Price) improved by half a point to 42.71 per cent. Average values were up by £98 (1.0 per cent) compared to March 2014, although performance against CAP Clean declined by just over a point. Average dealer part-exchange values bounced back after three consecutive monthly falls, averaging £4,184 in March, equivalent to a rise of £143 (3.5 per cent) compared to February. Year-on-year values remain ahead by £278 (7.1 per cent), with CAP Clean performance ahead by nearly a point compared to a year ago. Nearly-new values continued to fall from the record levels seen in December although model mix has a significant effect in this very low-volume sector. CAP Clean performance fell slightly to 99.78 per cent.

Average dealer part-ex values (Feb-Mar)

3.5%

Buyers’ guide

Fiat 500

It’s been an iconic car for years – and ANDY ENTWISTLE’s advice to dealers when it comes to colours is: Be bold!

iat have always made great small cars and the original 500 was one of the best. In 2007, Fiat jumped on the retro bandwagon along with Mini and VW – although it could be argued Fiat have stayed closer to the original car’s roots. In fact, it’s hard to believe the new 500 has been on sale for eight years already. It still looks fresh and Fiat hasn’t been tempted to bloat it out, unlike the VW Beetle and the Mini. Fiat launched the 500 on July 4, 2007 with more than 250,000 people in attendance. They did this by displaying the car throughout Italy, placing models in the centre of more than 30 cities. The extravagance highlighted the importance of the model for Fiat and its expectations for the 500 – and unsurprisingly it went on to win European Car of the Year in 2008. It has since gone on to become one of Fiat’s most popular models, with sales bolstered by the regular introduction of fresh variations, special editions and colours. Within three weeks of the 500’s launch, the entire year’s production of 58,000 had been sold out – and by the end of 2013, the Fiat 500 had already amassed more than one million sales in Europe. In 2013, the 500 outsold the Panda to become Europe’s best-selling minicar for the first time.

The first 500s arrived in the UK in January 2008, with 1.2 and 1.4-litre petrol engines or a 1.3 turbo diesel. A year later, the 1.2 Start&Stop arrived and soon after that, the 135bhp 1.4 turbo Abarth was released. In July 2009, the open-topped 500C was released, and although not a true convertible, its fulllength canvas roof meant it retained better security, refinement and all-round vision. In August 2010, the two-cylinder 875cc TwinAir arrived. Although the 500 is available with three trim levels – Pop, Lounge and Sport – as is the way with most small cars, customers can heavily personalise their car by choosing between 15 interior trims, nine wheel options, individual decals and 12 body colours. This means there are more than 500,000 personalised combinations you can have on your 500, so you’re unlikely to see too many of the same spec out there. And it also means trying to value these is something of a challenge! The Pop has electric windows but you need to move up to the Sport to get Bluetooth, airconditioning and alloys. The Lounge adds a glass roof and split-folding rear seats. All 500s need maintenance every 18,000 miles or two years. The cam belt should be changed every

five years or 50k, although the diesel and TwinAir engines are chain-driven. There have been six recalls to date, two in 2009, the first to deal with fuel leaks from the inlet manifold in the petrol models, and the second because of the possibility of the rear brakes locking with bolts working loose. The other three were in 2010, two to sort out steering issues and the other as a result of a problem with airbags going off incorrectly in a side impact. The most recent, in December 2012, was to address the possibility of brake servo failure. The right buy No two 500s will be the same, except the standard spec bought in their hundreds by rental companies. Be bold when buying Fiat 500s – buyers want something different and a bright colour will more likely sell than a dark colour. White is safe, but there are plenty out there. Go for a post-2009 1.2 Stop&Start in Lounge level for a quick sale. Don’t pay a premium for the diesel – the petrol versions are very frugal and in this kind of car, diesels are not highly sought after.

colour

The brighter the better – white is a safe option, but there are plenty of bold colours to choose from!

recalls

It’s worth checking to make sure recall work has been done – there have been problems with brakes

CarDealerMag.co.uk | 103

auctions.

Surge in visitor numbers year-on-year for motors.co.uk bit.ly/motors-visits

Haversham Holdings becomes new owner of BCA in £1.2bn deal ‘Talented managers will continue to drive strong performance’

team sees exciting growth opportunities in the changing European used vehicle market and plans to refresh BCA’s strategy to enhance its strong growth record.’ CD&R partner David A Novak said: ‘We have been delighted with our investment in BCA. The operating improvements and growth initiatives implemented with management under our ownership have transformed BCA from a traditional used vehicle physical auction business into a multi-channel marketplace. They have provided BCA with a strong foundation for continued growth and a rewarding future. ‘We are confident that the talented group of managers at the company... will continue to drive strong performance.’ BCA was founded in 1946 as Southern Counties Car Auctions and sells more than 12,000 vehicles a week across the United Kingdom and Europe.

How SMA’s ‘Buy Back’ scheme will reduce excessive stocking SMA Vehicle Remarketing has launched a new approach to help manage the risk of excessive stocking days – ‘Buy Back’. Market forces and economic changes all have an effect on customers’ appetite to purchase, which has a direct relationship with the length of time stock is held, says the company. Research suggests stock is, on average, held for 55 days, with vehicles sold in the first 30 days exceeding budget by over 25 per cent and those sold after 45 days failing to make budget. Holding cars in stock for any length of time presents a very real cost. SMA national operations director Eddie Thomson (pictured) said: ‘Many dealers are keen to reduce their average stocking days. However, the statistics reveal that in the past year, the average stock turn ��| CarDealerMag.co.uk

auction stations

Be fully informed, don’t just hope for the best

ritish Car Auctions and Haversham Holdings have reached an agreement on the terms of the £1.2billion deal under which Haversham becomes the new owner of BCA. The deal invloves Haversham paying £701 million in cash and issuing £104 million in shares to BCA’s shareholders, including previous owners Clayton, Dubilier & Rice. Haversham is also paying £453.2 million in cash to BCA’s lenders. This cash and stock deal will be funded by a £1.03 billion share placement and a £200 million loan. Haversham has proposed to change the auction house’s name to BCA Marketplace. The new company is expected to list on the main board of the London Stock Exchange. Haversham executive chairman Avril Palmer-Baunack said: ‘The acquisition of BCA represents an important, strategic step for Haversham into the automotive sector. ‘BCA is a market-leading business with a unique position in the used vehicle marketplace. Haversham’s management

Henstock

fell by just one day. We are seeking to help by encouraging buyers and vendors to take advantage of our on-site vehiclepreparation facilities and now we are adding to this by launching a new support tool in Buy Back. Dealers can now buy a Buy Back guarantee for stock purchased at SMA Vehicle Remarketing. ‘For a one-off fee, buyers can mitigate the risk of exceeding the 45-day industry benchmark. Stock can simply be returned to SMA between 45 and 50 calendar days of the date of sale and the dealer will be refunded 95 per cent of the vehicle purchase price or 95 per cent of CAP Clean, whichever is the lower. ‘The majority of stock offered by SMA qualifies for the initiative.’

he late spring period inevitably sees volumes rise substantially in the wholesale markets and stock levels traditionally remain high until at least early May. Typically, the market experiences some price pressure post-Easter as consumer finances focus on the summer holidays rather than changing the family car. And, of course, this year we have the general election which is now looming large on the horizon. History suggests that whatever the result, there will some disturbance to the equilibrium, but this generally settles down pretty quickly and business as usual is resumed. The worst-case scenario is a hung Parliament which creates uncertainty at every level until the issue is resolved. Whatever happens, we should expect the dynamics of the wholesale market to change over the coming weeks. From the dealer’s perspective, now is a great time to appraise any over-age stock and get it sold, rather than chasing the market in a few weeks’ time if values soften. While there will still be plenty of demand for the best, retail-quality cars, vehicles that are in poorer condition, have lower spec or higher mileage must be valued to sell in line with market sentiment. BCA’s Dealer Pro tools can help in this respect, bringing some much-needed clarity and objectivity to the appraisal and valuation process. The cloud-based solution designed by BCA helps retailers control and manage vehicle appraisals, provide accurate valuations and manage part-exchange inventory and vehicle disposals – and as a result, sell more vehicles. Dealer Pro integrates with other dealer systems, such as lead management and provenance systems, to improve overall dealer efficiency, and enables all data captured to be used in any sales channel. All stock appraised on the system can be revalued at the press of a button, using real-time, condition-adjusted market values based on industry-leading data. When market conditions are changing, isn’t it better to be fully informed rather than hoping for the best?

‘Now is a great time to appraise any over-age stock and get it sold, rather than chasing the market in a few weeks’ time if values soften.’

Who is Simon Henstock?

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

Helping you move more metal

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For professional use only CarDealerMag.co.uk | 105 trading name of Secure Trust Bank PLC

TRADER TALK.

..in association with AutoTrader

Helping every buyer to find the perfect car

There’s so much choice, how can the customer make a decision? Nick King explains

uto Trader is the largest digital automotive marketplace, hosting 1.9 times as many car advertisements as its nearest competitor. That presents a lot of choice for buyers, but for many the starting point can seem a little bewildering. Less-confident searchers, in particular, need help to navigate their way to the right car. In recent months, Auto Trader has taken a number of steps to help them. The aim has been to streamline their online journey, to support more full page ad views and, ultimately, to drive buyers to retailer forecourts. Only half of the people who go online know the make and model at the outset Studies continue to reveal tremendous variation in terms of initial purchase intentions. Take recent buyer behaviour research undertaken by GfK for Auto Trader, for example. Pooling the opinions of 1,300 customers, it found a near-equal split of those who did and those who did not know what they wanted. While 52 per cent were clear on the make and model they were looking for, 48 per cent said they were undecided. Of the undecided group, 27 per cent were completely open to both make and model. A further six per cent were clear on their chosen make, but not on the model variant, while 15 per cent said their starting point had been short-listing various options. Channelling options Narrowing options should be an enjoyable and exciting part of the buying process. But search terms, functionality and filters must work for all types of buyer, from the focused petrol-head to the nervous novice. Auto Trader has recently improved search filters, making them more relevant and granular. As a consequence, buyers with a model in mind are now able to hone in on selections quickly. But for less-confident buyers, there’s also a new search pathway. And it starts with the needs for their lifestyle. It assumes no expertise on the part of the searcher and starts from the premise that things like ‘four seats’ and ‘low mpg’ will be more

Who is Nick King?

helpful, than forcing a selection by brand, make or model. Side-by-side model comparisons are presented on screen to support research. Valuations As well as improving search, Auto Trader is streamlining the buying journey in other ways. Seven in ten buyers trust the site to provide an accurate valuation for their car, according to Auto Trader consumer research. And more than a million are now being sought every month following the launch of a new valuation tool on the site in January. Helpful for buyers, of course, but also for retailers, as my colleague, Karolina Edwards-Smajda, trade solutions director, explained. ‘In the past consumers, used our site search results to compare and contrast prices. This meant they came to forecourts with unrealistic expectations about their car’s part-exchange value as they didn’t take specific variant, plate or mileage adjustments into account. This was creating a problem for retailers. The aim was to bridge consumer expectations by providing a valuation based on an accurate and comprehensive retail data set.’

Real-time retail demand Used by some of the biggest players in the market, Auto Trader valuations collate around half a million vehicle data points each day, including asking prices taken from Auto Trader ads and retailer websites. These are then marginadjusted to give an average condition trade price that correlates strongly with auction hammer prices. The margin adjustment is calculated by tracking vehicle sales at auction and from fleet and leasing industry disposal data and comparing the actual trade price achieved with the retail asking price for the same vehicle. Information is updated on a daily basis, which means Auto Trader valuations are always a live reflection of the market, rather than a historic record. Bringing buyers and sellers together Everything we develop aims to smooth the journey to a successful sale by bringing expectations of buyers and sellers closer together. Through new and improved search functionality and in helping drive leads through accurate valuations for hundreds of thousands of potential customers, Auto Trader hopes to do just that.

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.

lenty of activity this month with a final results announcement at Inchcape, and trading updates at Vertu Motors and Cambria Automobiles following hot on the heels of the positive announcements last month by Pendragon and Lookers. We also saw some acquisition activity this month, with Haversham Holdings announcing the major acquisition of the British Car Auctions Group of companies and Pendragon announcing a US Lexus dealership acquisition. In addition, we will shortly be welcoming Marshalls Motor Holdings to AIM following the release of their prospectus on March 30. Share price performance – March 2015 March was a mixed bag of share-price movements, with Inchcape striding forward on the back of the results announcement, and most of the other shares showing modest declines. The Inchcape share price continues to rise, and at one stage was trading at another all-time high of 806.5p before slipping back to 795p at month end. Consistent with the dividend increases noted at Pendragon and Lookers last month, Inchcape increased their final dividend by 18 per cent over the previous year, giving an overall dividend of 20.1p per share, up 15.5 per cent. It will be interesting to see how the market reacts to the new entrants to the market, with Marshall Motor Holdings being placed at 149p per share and Haversham Holdings offering 685.7 million shares at 150p to fund the BCA deal.

..in association with ASE-global.com

Strong results and a generally positive picture There was plenty of activity in a busy month, says Mike Jones Share price movement from Jan 1 to March 31, 2015

Share price movement from Jan 1 to Feb 28, 2015

Pendragon

120.8%

121.5%

Vertu

93.7%

99.2%

Lookers

110.6%

118.3%

Inchcape

109.7%

101.5%

Cambria

114.9%

117.7%

Caffyns

103.2%

105.8%

the SMMT data on new vehicles, with Vertu likefor-like new-car volumes increasing 0.5 per cent in the five months to January 2015, compared to the 5.4 per cent increase recorded by the SMMT. Vertu’s fleet and commercial vehicles rose 16.7 per cent during the period and now represents a sizeable 24.6 per cent of the group’s revenues. Further growth in used-car sales (up 6.4 per cent) and aftersales (up 1.8 per cent) was also noted. The full-year results will be released in the preliminary announcement on May 13. Cambria Automobiles also released a trading statement on the five months trading to January 2015, ahead of the half-year announcement in May. The company note trading substantially ahead of the previous year and in line with

Financial performance In his last announcement as Inchcape chief executive, Andre Lacroix delivered a strong set of results, with profit before tax and exceptional items 10.4 per cent ahead of the previous year at £303.2m. Operating profits were ahead on the previous year in all regions with the exception of the emerging markets, despite adverse exchange rates reducing profits by £20.9m. In the UK, sales increased by 11.2 per cent to £2.4 billion, and were 12.9 per cent ahead on a like-for-like basis. Trading profits at £65.2m were £1.9m (three per cent) ahead of the year before, with the fleet business making up £1.8m of the increase. Wider afield, the group recorded a £47.4m goodwill impairment charge as a result of geopolitical uncertainty in the Russian market, which is the first tangible financial impact of the difficulties experienced in the region. Vertu Motors released a trading update on March 5 and expects the performance for the year ended February 28, 2015 to be a record in terms of volumes, revenue and profits and to be in line with market expectations. The increasing extent of self-registered vehicles – which are shown as used sales rather than new – highlights the disconnect with Pendragon has acquired a US Lexus dealership

recently-upgraded market expectations. New unit sales were 9.9 per cent ahead on a like-for-like basis, and although used-car sales were flat like for like, gross profit per unit increased. With the latest consensus pointing to an EPS growth of up to 30 per cent, the shares look an attractive proposition for investors. Outlook The recent announcements all point to delivering results in line with expectations. The continuing flow of new vehicles into the UK market, on the back of the weaker economic outlook across Europe and the strength of sterling, does not appear to be slowing down, and the risk of self-registered vehicles resulting in depressed margins is a very real one. Transactional activity The big news in the month was the proposed £1.2 billion acquisition by Haversham Holdings of the BCA Group, funded by the placing of new shares (£1bn) and a new £200m term loan facility. The transaction will also see Haversham be re-named as BCA Marketplace plc and move up to the standard listing section of the main market. An equally interesting announcement was the news Marshall Motor Holdings would be floated on AIM, with a placing price of 149p giving a market capitalisation on admission of £115m. Approximately £37m is expected to be raised net of expenses, which will be used to pursue acquisition opportunities and invest in existing freehold opportunities, site upgrades and the website and e-commerce capabilities. Finally, Pendragon announced the agreement to acquire the trade and assets of a Lexus motor dealership based in California for cash consideration of $48.5m, generating goodwill of $21m. Board composition and activity Stefan Bomhard officially assumed his position as group chief executive of Inchcape on April 1, who also announced Simon Borrows will stand down as non-executive director from the date of the AGM on May 21.

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 | 107

data file.

James Litton Trader tales

Social media? It’s just nasty and narcissistic

ust over four years ago, James Baggott asked me to appear in a Car Dealer Magazine video about the impact of social media on car dealers. At the time, I felt that dealers and manufacturers alike had everything to lose by not having a formulated social strategy. The low-cost, high-reach platforms seemed to me to offer everything traditional media did not. Specific customer targeting, PR benefits and CRM through a continual human-managed presence made me an evangelist. Twitter had even paved the way for me to be involved with Car Dealer in the first place. In 2015, I have somewhat lost my faith. Social media in 2011 was just that, social. Follow Friday on Twitter introduced me to a load of lovely people I would have otherwise never met. My Facebook was full of old school friends not spoken to for years. However, Twitter trolls and malicious Facebook groups have almost created a kind of anti-social media and businesses are all too aware of this. Social media today is for the narcissist. Look what I am doing, listen to what I say. And in most cases, the reader or listener is judging the content by asking, ‘what does this mean to me?’ I am bored of Twitter feeds populated by dealers tweeting out pictures of happy customers. Who cares, apart from that customer and that dealer? I think the social media audience is too cynical to imagine this is every experience. Or is it me? Look through the Twitter feed of Car Dealer social media award winner Perrys Motor Group and you will find a mix of polite customer interactions, retweeted content from motoring media and some fairly bland tweets about nothing in particular. All guaranteed not to offend or effect some PR backlash and I totally get it. There are exceptions to the rule. Check out the Lings Cars Twitter feed and you will find Ling interacting with customers and quoting negative tweets about her zany website. I totally get this approach too. What better way to create social media noise than scream as loud as you can? The point is, whatever method you employ, it simply does not make a difference in our industry. Good product delivered by good customer service will see you through this social media age, as it did the television age and print media age before that.

‘I am bored of dealers tweeting out pictures of happy customers. Who cares, apart from that dealer and that customer?’

Who is James Litton?

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

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Trainer-clad kid who wanted a £100k car

ver got it totally wrong when a customer came in? I mean, taken one look at someone and made your own mind up as to why they’re there? Whether they are dressed like they will buy an S-Class or have a haircut that would suit an Audi TT, we’ve all done it. And yes, it is wrong. So, when a young chap in his early 20s walked in to my old Merc dealership in a tracksuit and beaten-up trainers, I immediately thought he was there to ‘’ave a look mate’ at what he couldn’t buy. He approached my desk and asked, ‘You ever driven a CLK Black?’ Now this was a £100,000-plus car; I was wondering where this kid was going with this. Did he want to look at one? Get a brochure for his collection? Tell me how much he knows about it? ‘Yeah, I have,’ I said. ‘It’s a bit of a weapon.’ He came back with a corker of a line. ‘I think I’d like to buy one.’ I nearly fell off my chair and said, ‘Yeah, so would I, it’s £100k. Anyway, I’ve got to do a handover now so feel free to look around.’ With that, I left him to it. I walked off and told my colleagues about this tracksuitwearing guy wanting to buy a CLK Black. We all laughed, then carried on with our day. Anyway, about three weeks later on a quiet Friday morning, our chit-chat with the reception girls was interrupted by a very loud revving noise as a Lamborghini Gallardo pulled on to the forecourt. ‘Oh, nice,’ was my reaction. You can guess what happened next – out jumped my tracksuit-clad kid, with the same beaten-up trainers that he’d been wearing on the previous occasion I had met him. He walked right up to the front desk where we were all stood – jaws on the floor. Casually he said, ‘I went for the Lambo in the end, didn’t fancy the Merc.’ So it turns out that he’d started his own web company at the age of 18 and sold it for millions shortly after his 21st birthday. Without question, I felt like a complete idiot. And I learned a very important lesson. Never judge a book by its tatty cover!

‘He then approached my desk and asked, ‘You ever driven a CLK Black?’’ ’

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 | 109

key notes

..in association with Traka

Are you ready to cash in on pension bonanza? Government changes could spell a buying spree for UK’s over-55s, says Paul Smith

014 was a record-breaking year for new and used-car sales. The fiscal tailwinds created by the gradual stabilising of the economy, lower unemployment, rising house prices and falling fuel prices have no doubt contributed to sales increases. More than three-quarters of new cars are being financed by Personal Contract Purchases (PCPs) or equivalent car-financing packages. Some people feel sales of new cars have been boosted significantly by successful Payment Protection Insurance (PPI) claims which have generated average windfalls of close to £3,000 per person. Pay-outs over the past four years total £18bn. I’m going to be controversial and say the PPI gold rush will not be over until deep into this year. Furthermore, before the £400m-a-month PPI windfalls begin tapering off, we will see the start of a new gold rush. If anything, the boost from Pension Freedoms could be even more lucrative for dealerships because the sums likely to be released from retirees’ pension pots will be – on average – much larger. So what are Pension Freedoms? In last April’s Budget, Chancellor George Osborne declared that from April 6, everyone over 55 and with a Defined

Contribution (DC) personal pension pot will be able to cash it in. Up until now, most kept their personal pensions running until they retired, perhaps at 65 years old, then used the bulk of the money they had accrued to buy an annuity – effectively an income for life. The government have been mounting an assault on annuity providers, saying they are offering poor value and that poor customer communications meant most retirees were defaulting into annuity purchases when other options are already available. Since the announcement, annuity sales have already halved and some now believe as few as five per cent of retirees will continue locking themselves into an annuity. There has been much idle speculation about the potential increased sales of Lamborghinis as

pensioners cash in their pots. Although most pension pots would not stretch to the ultimate super-car, the average pot sizes for the group that will benefit most from the new freedoms look to be substantial, nevertheless. This group is 55- to 59-year-olds who have a total average wealth of £680,000. Ninety per cent of them own their own home. They are much better off than the average UK near-retiree, according to the Institute of Fiscal Studies. A quarter of them have more than £116,000 in their DC pots. Pensions administrator Hyman Robertson has calculated that some £6bn of assets is heading for the one-way exit door between April and July of this year. A more recent Censuswide consumer survey found some 40 per cent of people were planning to withdraw all or part of their pensions as soon as they are allowed. And with more than 600,000 baby boomers reaching retirement age each year through until 2018, it seems obvious many might be in the market to buy a good used or new car to kick off their retirements in reasonable style. We believe that if dealers want to take full advantage of the Pension Freedoms gold rush, they should start drafting their sales and marketing plans now.

Who is Paul Smith?

ASSA Abloy recently purchased the electronic key management software provider eTag Solutions. eTag was founded by Paul Smith, who now heads Traka Automotive, part of the ASSA Abloy Group brand Traka. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.

Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive POWERED BY

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the fleet.

LATEST FROM THE FLEET...

Welcome report:

VolkswagenTransporter Sportline 60 LWB Hauling video equipment around Europe isn’t much fun – it’s always so much nicer if our luvvies who star in front and behind the camera lens can arrive in comfort and style. Nigel Swan reports...

hen the Volkswagen Transporter was originally launched in 1950s, it was designed to solve the problem of shifting cargo and people in a stylish, yet practical package. Over the years it has sold in its droves in various guises, and has proved popular not only with tradesmen, but it’s gathered something of a cult following, too. With and all-new T6 version due at the end of 2015, we’ve taken delivery of the Sportline 60 LWB on a six-month loan to find out what makes it so special. Ours is the 60th anniversary model, and is powered by a 2.0-litre BiTDI power plant and Sportline trim. This means it comes fully equipped with cosmetic additions like 18-inch alloy wheels, leather seats all round, colourcoded body trim, front and rear spoiler and Sportline 60 decals. All-in-all, the van would set you back the hefty sum of £37,306. There are a few things I’ve noticed that are missing on a vehicle with such an extravagant price tag. For a start there’s no cruise control, something that’s standard in a lot of vehicles and vital considering it will spend most of its life trudging up and down motorways. Also, I’ve noticed there are no grab handles. It’s not

the knowledge Model: VW Transporter Sportline 60 LWB Price: £37,306 Engine: 2.0-litre BiTDI 180PS 7spd DSG Power: 178bhp, 400Nm Max speed: 119mph 0-60mph: 10.2s Emissions: 211g/km Optional extras: Electrically heated, adjustable and folding door mirrors (£138), Towbar with 13-pin socket (£576), bi-xenon headlights with daytime running lights, includes headlamp washer system with heated front washer jets and washer fluid level indicator (£1290) This month’s highlight Pretending to be Mr T from the A-Team... like I’m in my twilight years, but I’ve found climbing in and out something of a challenge. There are a couple of other little niggles, too. I am struggling to get to grips with the entertainment/satellite navigation unit. It’s an aftermarket system from Kenwood, and it controls the radio, DAB, navigation and USB and it’s not the most intuitive system to use. It took quite a while to work out why music wasn’t playing through my iPhone, despite it

displaying it was playing on the unit. It turns out that in the maze of settings it wasn’t set to full USB. Frustrating, as setting this up in a normal car is a simple five-minute job. But before you break out the violins, there is a lot to love about the Transporter. I’ve driven many vans over my years as a motoring journalist, and the VW is easily the most car-like to drive. It’s got plenty of oomph on the motorway and easily keeping up with whatever’s in the outside lane. It also looks the business. The black bodywork, sporty details and black wheels not only give it presence on the road, but make it look like it’s just come off the set of the A-Team. We’ve opted for the long-wheel base version, which is especially useful for lugging around our growing equipment list on the video department. Likewise, the second row of seats comes in useful for carrying extra crew. As a work van, the Transporter has already settled in, although it is set to go back to VW for a check-up on the entertainment system, which sporadically turns itself off. Not helpful when you’re relying on the sat-nav. Nigel Swan (@motoringnut) CarDealerMag.co.uk | 111

the fleet.

LATEST FROM THE FLEET... Third report:

Lexus IS300h

Fourth report:

Kia Procee’d GT

Sixth report:

VolvoV40

Niggles with the phone spoil an otherwise impressive car

They’re right – the pedals on this car are just perfect...

A trip to London leaves Becca feeling less than comfortable

MY mother-in-law has a 2011 C Class estate and a Nokia 200 phone. Now although new, the Nokia 200 is no cutting-edge device and her car is approaching five years old. And her phone pairs with her car without a problem. But try as I might, I cannot get her phone to talk to the Lexus. I can pair my iPhone, and other devices, but not this. You might perhaps expect older technology to struggle, but surely our new Lexus would be a little more robust with its connectivity? There are other phone niggles, too. After pairing my iPhone, it doesn’t recognise my favourites I had already stored in my phone, so this has to be done manually. Sorting this is just as fiddly as the rest of the user interface controls – although it has to be done, as when it’s completed, it should make it a little easier to find your often-used contacts. However, it keeps wiping them, too. So often, in fact, that I’ve now given up. And it also has a tendency not to recognise the name of the person calling, so it simply shows a number. If, like me, you think remembering phone numbers is something relegated to the early 90s, you can see why I find this is very frustrating – and makes the ‘recent calls’ function completely redundant. It’s a really poor show on what is otherwise a decent-enough car. If a company like Parott can get this right on a fraction of the development available to car manufacturers, there is no excuse. Andy Entwistle (@CarDealerAndy)

It’s really interesting, after driving a car for a while, to look at other motorists’ views on the car you’re getting used to. Kia help with this with a message board on their own website. Interestingly, this car gets its lowest mark for fuel economy – something we’ve been banging on since our first trip. Those with a light right foot are getting 35mpg – the others with great big clod hoppers (and to be fair, that’s most of them here) struggle to get up to 30. But it scores highly in most other areas. Yes, it’s comfy. Yes, it’s got plenty of whizz and oomph. And it looks great on the drive. No sat-nav is a bit of a drag. Call me an old grump (and many, many people do…) but when you’re getting a car these days, a sat-nav should come as standard. And so should parking sensors on the front and rear. I know after-sales love putting right the bumps and scratches, but come on… drivers deserve better than not getting help trying to keep their shiny new car in pristine condition. I know dealers don’t need telling, but customers can be funny beasts. Among the car’s minus points for one customer is that three doors aren’t very good for a family, and is a bit inconvenient. So why did they buy it? Another says a major plus point is the position of the pedals. Mmmm… they’re on the floor in front of the driver’s seat. Strange, that… Colin Channon (@ColinChannon)

A TRIP to London is always a nice idea, and when your colleague and former flatmate asks you if you want to bunk off work early to go and watch the latest Fast and Furious film with him in the capital, it’s even nicer. Unfortunately, we managed to make it to the cinema but missed the film. So, actually, we spent a Monday evening on a monumental road test of the Volvo V40 Cross Country from Gosport to central London and back again. The V40 was not the right car for this. The clutch is too spongey for comfortable city driving, and as we hit the 6pm traffic in the capital, my left leg was being punished for my choice of car. This might sound like an overreaction, but the squeals I made when we got out were very real. However, the whole trip – which took a total of six hours, including a hearty dinner – cost me only £23 in fuel, a much better deal than our originally planned combined £60 train fares. The sat-nav was always spot-on and managed to get us to the IMAX cinema, then a terrifying underground car park which we swiftly exited and a eventually a restaurant (with a little help from Google). And finally, no-one ever loved parking sensors as much as me when attempting to park on the narrowest roads of Clapham. So, maybe I was a little harsh on the Volvo, but I cannot forgive it for the state of my thigh muscles the next day. Becca Chaplin (@BelieveBecca)

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: 2,007 This month’s highlight Now it’s not so new, we’re getting a shade under 47mpg: so it’s quiet, comfortable and economic! ��| CarDealerMag.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: 1,045 This month’s highlight Whizzing to London for a meeting. This is great for the motorway and sprinting around town.

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: 889 This month’s highlight Enjoying the sunny, but still chilly, mornings in the comfort of the V40.

longtermers

Sixth report:

Seventh report:

Eighth report:

Mazda6

MitsubishiASX

DaciaDuster

Oh dear – replacing the broken Get an ASX – and make new windscreen is a bit of a pane... friends around the country...

NJ14PFD gets a little TLC after reaching 12,000 milestone

It seems the 2,000 mile cross-Europe road trip has taken its toll on our long-term Mazda 6 estate. Not only had it picked up a rather annoying large crack in the windscreen, but the extra mileage has now brought up a warning message on the dash, alerting to the fact it’s due for a service and ready for a tyre rotation. The windscreen replacement was a relatively straightforward process. We booked the car in with Guildford Mazda (tel: 01483 426424), who ordered a windscreen and fitted it for us, although it did take best part of a day to sort. We had to drop off the car at the garage first thing in the morning and collect it late afternoon. It’s generally not the most convenient way of doing it, though. In the past, other manufacturers have sent mobile windscreen technicians to either work or home to replace the glass. Fortunately I was able to leave the car with the garage and get a lift, otherwise it would have been a long day waiting around for it to be fixed. Its first service is due at 12,500 miles, so we’ve booked in with Magna Mazda (tel: 01725 513777), Salisbury. The work will cost £187.20 inc VAT and includes an oil and filter change, health check and a general once over, and they’ll even throw in a much-needed wash and wax. Bearing in mind the 13,000 miles the Mazda has done, and the knocks and scrapes it’s picked up, I think some TLC for our 6 estate is long overdue. Nigel Swan (@motoringnut)

AS YOU can tell from the tagline at the top of this column, we have been lucky enough to have our Dacia Duster on the fleet for quite a few months now. The car has just been given its first service, having notched up 12,000 miles in the time that we have been driving it. As the milestone approached, a quick call to the Renault press fleet team was made and the car was duly whisked off for some TLC. (A rather natty little Twingo took its place in the Car Dealer parking bays for a few days and you can read more about that from pages 72-74.) Had we been a private punter, we would have had to pay £156.75 for the work to be carried out on the Dacia – this is the routine cost of a first, minor service with oil and filter change. It was a fee that seemed pretty reasonable to us, and of course, most Dacia owners wouldn’t have reached 12,000 miles as quickly as we did. The esteemed editor of this publication has taken custody of the vehicle in the time since its return to us, and while he has enjoyed driving it, two things have grated somewhat. Firstly, he finds the engine note a tad rough around the edges, and why (he asked me as if it was my fault) is the button to adjust the rear-view mirrors underneath the handbrake? I must admit I hadn’t noticed but it does seem a bit daft. Anyway Colin, if you’d like to return the car to me at any point, I’d be glad to take temporary possession again. Dave Brown (@CarDealerDave)

the knowledge Model: Mazda 6 2.2D 175s Sport Nav Tourer Price: £27,955 (as tested) Engine: 2.2-litre diesel Power: 173bhp, 420Nm Max speed: 137mph 0-60mph: 7.8s Emissions: 121g/km Mileage this month: 1,056 This month’s highlight Having the car telling me it’s tired and in care of some love and attention...

If you watch as much telly as I do, then the chances are you’ve probably seen Mitsubishi’s new campaign for the ASX as part of their sponsorship of Channel 4 documentaries. The message is all about ‘changing perceptions’ and they use some clever little optical illusions to make the point. Having driven our long-termer ASX a fair bit now, it seems Mitsubishi’s task isn’t so much about changing people’s perception of the vehicle, as it is just making sure they know it exists. Because the more people I show the car off to, the more new fans it seems to win over. The other day I was at a petrol station in Manchester when the bloke next to me said (in a northern accent): “Ay up, that’s a nice car, what’s that then?” Okay, he didn’t actually say “ay up”. Anyway, while my initial thought was that he was about to carjack me – living down south I’m not used to friendly strangers – I soon realised I wasn’t in any immediate danger and we had a chat about the car. And as we stood there on that wet and windy forecourt, with the drivers behind us no doubt willing us to shut up and get a move on, I found myself talking about it with the passion of a salesman desperate to meet his target. Not because I was trying to flog it, but because I genuinely think the ASX is a great car. Gareth Bethell (@garethbethell)

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: 894 This month’s highlight Making a new friend in the north. If you were in the queue behind us... sorry.

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: 633 This month’s highlighT The car was spirited away for its first service and returned to us in fine fettle. CarDealerMag.co.uk | 113

bAGGOTT.

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

A matter of life and death? Often it’s just a question of luck...

don’t want to sound like one of those annoying tweets or Facebook statuses that infect your feed about ‘living each day like it’s your last’ or reminding you that ‘life is not a rehearsal’, but I’ve had two wake-up calls in the past six weeks that have changed the way I look at driving forever. I’ve had two stark reminders just how unbelievably precious life is and how so devastatingly easily it can be ripped from us. The first was plain scary, the second simply life-changing. So, the first. Driving to a pre-Geneva Motor Show holiday with friends, we were 12 hours into a desperately-dull pan-France schlep when, from out of the blue, I spot some oncoming lights. Not unusual, I admit, but we were on the autoroute – France’s dual carriageway motorway toll network – plodding along in the slow lane. In a matter of seconds, things unfolded faster than I could compute them. At first I thought the oncoming lights were from the other side of the road, then I feared we were on the wrong side of the road, then before anything else could even enter my consciousness a horrible accident was being played out in HD in front of my eyes as the oncoming car was on the wrong side of the road. The car that was behind us, a Peugeot 406, was halfway through its overtake as the BMW coming the wrong way came into view – approaching at 80mph at least. As soon as the driver realised what was happening, it turned in front of us – at one scary moment all three of us were abreast on a two-lane motorway. The Peugeot driver lost control as he swerved across our bow, crashing into the armco at 70mph. The force of the front-end collision with the barrier catapulted the car back into our path and we just managed to swerve around it. Our colleagues travelling behind stopped to check the Peugeot driver was okay (he was) and the offending BMW came sloping back. The driver took one look at the chaos he’d caused and drove off. We were so close to a head-on, dental-records crash, that my stomach back-flipped. Just a millisecond either way, if we’d been overtaking, or that Peugeot was two seconds further up the road then we’d have all been wiped out. Gone. For good. Over beers back at the hotel the shock sunk in. We’d been close. Too close. It was simply luck that we were all still here. Three weeks later, death was closer. I was out shadowing the traffic police for a feature for one of Blackball Media’s outlets when I was thrust into the very

Who is James Baggott?

worst situation the boys in blue have to deal with: A fatality. My evening shadowing the traffic cops had been organised by a chief inspector who’d told his team to be open and honest about the challenges they face every day. That night that challenge was a fatal bike crash scene. I’m a biker. I’ve been riding more than a decade. I’d even ridden back from central London that very morning on my BMW. And to make matters worse I’ve used the very same road this biker had lost his life on for my own thrills many, many times before. This was too close to home. When I arrived, the Collision Investigation Unit was busy cataloguing evidence with a 3D camera. I met Sergeant Dave Sanderson, who was in charge, and he walked me through the upsetting scene. He pointed to the marks on the road the bike had gouged as it slid down the road and we stood in front of the

James ‘In seconds, things Baggott unfolded faster than EDITOR’S NOTE: WISE WORDS FROm THE BOSS (FOR ONCE)

I could compute them’ tree the father-of-three’s bike had struck, crumpling like a piece of paper. I couldn’t stop thinking about what I’d seen. That morning the guy had been out with a friend on a pleasure ride to a well-known café. Now his family was being told he wasn’t coming home. I wrote my piece – explained the amazingly sensitive and diligent work the police do in these desperate circumstances – but I haven’t been able to stop thinking about it since. Like you, I hear the messages about speeding, about using our phones at the wheel, about the dangers of drink-driving. But apart from the latter, can I honestly say they go in? I’m no saint on the road, but it shouldn’t take two events of such magnitude for these vital messages to finally sink in. But I’m not here to preach. I’m not going to tell you to ‘live today like it’s your last’ or to ‘carpe diem’ like a terrible tweet. But I have seen the real reason behind all everyone else sees as a ‘road closed’ sign – and I’d be lying if I said it hadn’t had a dramatic effect. I’ll leave you with a final word from Sgt Sanderson: ‘The sequence of a fatal collision is played out on our roads a thousand times a day. The difference between a near miss and an unnatural death is often just luck. If drivers could see the world through my eyes, they’d take more care, be more considerate to others and not take that risk.’ Be careful out there.

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

CarDealerMag.co.uk | 115

��| CarDealerMag.co.uk