INTERVIEW: WE MEET MR LAND ROVER AND DRIVE HIS ICONS
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Issue 90 | September 2015 | CarDealerMag.co.uk | £3.50
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LIFE
PEUGEOT SPECIAL: WE CELEBRATE PEUGEOT’S LEGENDARY 205 GTI WITH EPIC DRIVE AROUND UK PLUS: PEUGEOT CHIEF CHAT & WE FAIL AT CAMPING
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INTERVIEW
How Benfield boss boosts bottom line with top service
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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
STAFF WRITER Sophie Williamson-Stothert
sophie@blackballmedia.co.uk Twitter: @1Sophie_W
HEAD OF DESIGN Graeme Windell
graeme@blackballmedia.co.uk Twitter: @graemewindell
ADVERTISING 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, Nigel Swan, Peter Spinney, Sophie Williamson-Stothert, Jonathan Fleetwood, Laura Thomson
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8
you’re saying, what WELCOME. Okay, on earth is a picture of a
mug doing on Page 3 of our favourite car magazine (spooky, eh? I bet you’re looking around right now to see if I’m actually hiding in your office and heard you say out loud ‘okay, what on earth is a picture of a mug doing on Page 3 of my favourite car magazine...’) Well, it’s a long story. We drink a lot of coffee here. It’s not surprising – playing pool, walking to the corner shop for a sandwich, playing a bit more pool, walking to the corner shop for a Snickers, playing a bit more pool, walking to the corner shop for crisps, playing more pool... well, that’s all bound to make you a bit thirsty. I was taking a slurp out of Umesh (nice mug – that’s it pictured below) and I wondered what type of mugs other dealers have. I bet there are some really attractive ones out there – some colourful ones, some serious ones, some jokey ones, some with great pictures of cars, or cartoon characters... and then, I thought, this would make a really nice feature. Let’s look at the mugs that dealerships use. Do you use branding to good effect? Do you have a great company logo on display? We need to find out. So send me your mugs, and we’ll write about the best ones. If you think this is just an elaborate ruse to stock up the Car Dealer crockery cupboard in a very cheap and cheerful way, you’d be ri..... I mean, you’re way off the mark. We’d never let the chance of a freebie get in the way of investigating the biggest stories in the automotive industry... If you can’t afford the postage (and we’re having a record year for new-car sales, used-car sales are booming, the manufacturers are having it so good they’re not even contemplating pre-reg stock, so to be honest we’re expecting cups stuffed with fivers) then email me a picture of your mug (in the trade, we call that a mug shot....), and we’ll use that instead. Only not as big. Because I need a new mug for work...
HOT DOG AT THE BAGGOTT HOUSE? Can’t have my usual monthly pop at Baggott this month – hardly seen the bloke. He’s been busy moving house, and breaking down on motorways in his beaten-up old Peu... sorry, his lovingly cared-for classic motor. But I do wonder whether his recent press trip to Korea has had an effect. All the Car Dealer staff were invited to the new des-res for a house-warming barbie. We were met at the door by a new Baggott puppy, a baby Doberman. But I was sure I’d seen a different CarDealerDog on twitter. No sign of that one on the night, mind. But there was a hog roast in the corner of the garden, with a charred carcass turning slowly on the spit. I wonder... HELLO AND GOODBYE... It’s been a hello and goodbye month at Car Dealer Towers. We said farewell to the Duncan Chappell, our advertising salesman extraordinaire (extraordinary, that is, that he’s managed to last this long in the business...) He’s off to start a new life in Dubai – literally selling sand to the Arabs, we think. We’ll miss him. We say hello to Harry Boucher, who is like a Baggott MiniMe, with the same sunglasses and daft beard – although Hazza talks with a west-country burr and is about 3ft shorter than our esteemed MD. He shared a car with Baggott all the way to Scotland and back for their epic Peugeot journey (see Page 48). Think he’s already regretting volunteering for that gig... 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 And the address to send those teacups can be found in the panel on the left...
Colin Channon, editor
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INSIDE. ISSUE 90 I SEPTEMBER 2015
Dashboard Feedback Used Car Awards
48
Benfield Motor Group profile Ask HPI
Celebrating an icon
Around the World Big Mike
We meet some of Peugeot’s longest-established dealers – and look at the success of the famous 205 GTI
Trading Up Finance
Forecourt
19 62
Audi Q7
Customer service is key at Benfield, says chief executive Mark Squires
Sixteen-page guide to leading warranty suppliers
41
‘‘
Mitsubishi L200 New Mitsubishi L200: family SUV or utility vehicle? Or a bit of both?
BMW X1 Skoda Superb Estate Ford Galaxy
I’ll ask him what he wants for it. What does he mean, the price is in the window?
Features Peugeot special
98 Data File
Baggott
Car Dealer Club The Statistics Taking Stock Real Deals Auctions Market Insight
38
Suppliers’ Guide with Litton Key Notes with Traka Long-termers Why Audi think Q7 is the benchmark car in the busy SUV sector
James Baggott
06 15 19 27 28 31 32 34
38 41 43 45 47
48
78 80 82 84 86 89 90 92 95 98
OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique. For full coverage of this year’s event, call 023 9252 2434 to get hold of a copy of the results issue.
The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. To find out how to get involved this year, turn to page 15.
Next year’s CDX will be held at Silverstone on Tuesday, May 24. If you want to get involved, it’s never too early – call us on 023 9252 2434 to register your interest. CarDealerMag.co.uk | 05
FEEDBACK. Your comments via email to colin@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
Yes it is quiet, but we can After reading a post about smaller independents I thought I’d ask the question: Are you guys busy at the moment? Personally I’ve had a few pieces of good stock priced very well and sat with me for a while now, no time wasters, just no interest at all. I bumped into another small independent dealer locally yesterday and he reported the same, the phone is a little quiet right now. Daylight I am beyond ‘a little quiet’! For me it has been very quiet for some time. Last month was one of the worst I have had on record. To be honest, it hasn’t really picked up as it ought since the Easter break; Initially I put this down to Easter holidays, general election etc., but for me it never truly recovered. countryman With the exception of June, the entire year so far is about 30 per cent down on where we should be, there’s very little activity and lots of ‘think about it’ customers. Seems like a buyers’ market for sure, reducing prices doesn’t seem
Picture of the month It’s not supposed to look like that, Harry! As you will have noticed from the cover of this month’s edition of Car Dealer, we’ve been out and about on a Peugeot-based adventure recently. James Baggott and new(ish) staff member Harry Boucher headed to Wales first and then Scotland to visit some of the dealerships who have been working with the manufacturer for the longest time. You can read about their adventures from page 48 – and find out about their varying levels of success pitching tents during the trip... to really get things going... yet prices at auction are still strong, go figure. FYI, we are a small, appointment-only dealer, 20ish cars, £6-£10k late/high mileage ex-lease stuff, but wellprepped... maybe this stock is out of favour? Good luck guys. Dave Guy, guys, guys! It’s very easy to talk ourselves
into doom and gloom, that is something the trade is very good at. Be very careful that we don’t talk ourselves out of business. One of the things we have found which is a little gem is selling cars on Facebook, it’s very cost effective and when you have time on your hands why not sign up to this great course http://www.fbfortheforecourt.com/ which gives you baby steps on how to sell using FB. Just an idea!!!! jimreidvehicle
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survive and thrive What’s in a name? The deals that had you chuckling I’ve signed up two deals this morning – the first car went to a Mr & Mrs Lacey. Then one to a Mr Cagney. OK, so it was the wrong way round, but you get the idea. Have you sold a vehicle to someone with an ‘interesting’ name? GreenGiant Yup! James Brown! You next. jimreidvehicle I sold a van to Johnny Depp via a film company to be converted for his personal DJ. I didn’t believe the man until the official order came through. Phil H Many years ago I two Golf GTIs to a company – I really thought it was a joke. First guy was
James Dean, the second was Paul Newman. I said, ‘don’t tell me you have Marilyn Monroe as well’ ... he said, ‘nearly! Marilyn but not Monroe!’ What are the chances of that? umesh About 15 years ago, I sold a car to an elderly couple. From the driving licence, I saw the woman’s first names were Treasure Pearl. Turns out she had married a bloke with the surname Ireland. Mrs Treasure Ireland. GreenGiant I know of a guy at the local golf course, whose nickname is ‘Head First’ due to the way his name appears on the golfing result board: R Slater ! If you are confused, say it out loud, then you will realise why it’s funny! jimreidvehicle
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Top tweets The Mazda 6 is equipped with our Turanza T001 tyres that offer an excellent blend of performance and comfort. @BridgestoneUK Today, we’re 100% Toyota-owned, but from 1978-2000, Toyota (GB) was part of the Inchcape Group. #ToyotaFacts @ToyotaGB At our Fen End test track, you can drive an exclusive selection of Land Rover heritage cars. heritagedriving.co.uk @LandRover_UK According to figures released by the SMMT, #automotive manufacturing reaches its highest level since 2008 #ukmfg @gallitoUK In 1959, Volvo invented the 3-point seat belt, then gave free licence to all other car manufacturers to use it. @ClassicPixs
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DASHBOARD.
Mazda set for another record year bit.ly/mazda90
SUBARU
New approved dealer named THE full range of Subaru vehicles is now available even more widely across the south-west following the appointment of Specialist Vehicles Subaru in Plymouth as a Subaru-approved dealer. Located on Ridgeway in Plympton, Specialist Vehicles Subaru has built a reputation for providing a wide range of vehicles. The dealership will be home to the full range of all-wheel-drive Subaru vehicles, including the recently-upgraded Forester SUV, newly-launched Outback estate and popular XV compact crossover.
DEVELOPMENT
Swansway staff go back to school for summer fair fun Boutique Ares showroom opens ITALIAN automotive atelier Ares has opened its first boutique showroom in the heart of London’s Mayfair. After several weeks of development and refurbishment work, the site – 77 Piccadilly – is now open, and is the first of a planned portfolio of Ares stores to be opened in some of the world’s ‘most glamorous’ locations. The Piccadilly centre has a stunning showroom with space for four hand-crafted vehicles from the Ares range.
ACQUISITION
Second Skoda outlet for group MARRIOTT Motor Group has completed the acquisition of Bristo’s Limited in Ipswich – and in the process has added a second Škoda dealership to the group. This latest addition will also introduce the Renault and Dacia brands into the Marriott Motor Group for the first time, complementing its current portfolio of Volkswagen Group brands in East Anglia. 08 | CarDealerMag.co.uk
FAMILY-owned and run motor retail group Swansway held its annual summer fair recently, with 500 of its 700 staff enjoying a day out at Sandbach FC in Cheshire. With laser clay pigeon shooting, archery, mini golf, funfair stalls, ice
cream, candy floss and a barbecue, it was a day to remember, with the school sports day theme embraced with gusto. Swansway director David Smyth said: ‘This was our third summer fair, designed to give our staff and their families a great day out, and yet again
we were lucky with the weather. The school sports theme was so much fun.’ Our picture shows fun in the threelegged race, with marketing executive Holly Bailey and Jane Hargreaves, brand manager for Wrexham Volkswagen, taking part with enthusiasm.
Taxman fixes his attention on use of vehicles by employees Make sure your records are kept in order, dealerships are warned
P
oor record-keeping of employees’ use of demonstrators and courtesy vehicles could see dealerships facing stiff fines from HM Revenue & Customs. That’s the warning from Dean Pipitone of Cooper Solutions, who believes up to 80 per cent of dealers could be failing to keep sufficient records of employees’ vehicle use. Known in the trade as the averaging scheme, the rules for calculating benefit in kind (BiK) tax rates for staff using multiple company vehicles were introduced six years ago. Since then, dealers have been left to record staff use of company vehicles, ensuring they drive cars only within or below their designated tax banding. Cooper Solutions, the web-based
by COLIN CHANNON @colinchannon dealer systems specialist, says it has relationships with more than 1,600 dealers nationwide and has undertaken soundings to assess the level of non-compliance. It is working closely with national accountancy group UHY Hacker Young, which understands HMRC is ready to undertake detailed audits of motor dealers’ records. Although liability technically rests with the employee, in practice it is often the employer that will also be liable. HMRC’s company car averaging scheme was introduced in spring 2009 to simplify the way car dealerships with company car fleets account for the BiK charge by allowing firms to
calculate the employee benefit on a band average basis. However, UHY Hacker Young says that HMRC is now targeting its attention on this area. Matt Hodgson, partner at UHY Hacker Young, said: ‘While vehicle banding is an important administrative discipline for dealers to satisfy, it’s also a key demonstration of their duty of care towards employees. Should a revenue inspection end with a prosecution, the dealer and staff members affected could be liable.’ Pipitone said: ‘HMRC will take a tough stance if they find dealers have not been following correct procedures. They will also be looking for proof that the use of performance or high-end luxury static demonstrators have been accounted for correctly.’
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CarDealerMag.co.uk | 09
DASHBOARD. RECRUITMENT
MG seeking new dealer partners FOLLOWING the recording of successful sales figures for the first half of 2015, MG Motor UK is calling for more dealers, specifically smaller groups, to join the brand. The June new car registration figures, released by the Society of Motor Manufacturers and Traders, showed that MG’s performance for the month was almost 20 per cent higher than last year; whilst the year-to-date saw a rise of just under 40 per cent. MG’s hopes to continue these successes are dependent on its growing and dedicated dealers and the loyal customers they serve.
JCT600
Major investment in web innovation YORKSHIRE car retailer JCT600 has launched a new website designed to enhance the customer experience, regardless of the browsing device being used. The fullyresponsive site represents a six-figure investment for the company and has taken 18 months to develop. It is believed to be the only motor retailer website built around keyword search.
OPENING
Evans Halshaw in Honda move EVANS Halshaw has opened its first Honda dealership. The site, in Bedford, which previously traded as Stratstone, is located in Ampthill Road. Evans Halshaw retained all the members of staff from the original dealership and continues to service customers with the latest Honda offering. The premises can hold up to 66 new and used vehicles. 10 | CarDealerMag.co.uk
Renault announces dealers of excellence bit.ly/renault90
Last month, Nigel Wonnacott, who used to work for the SMMT, wrote about the reasons for the demise of the British Motor Show. There are plans to revive a UK platform for the motor industry – and here, Stephen Maitland-Oxley, the show director of the London Motor Show, has his say…
We should celebrate the motor industry in Britain, not talk about failure N
igel Wonnacott’s article in last month’s issue was rather depressing. Why is it that here in the UK we prefer to talk about failure and doom and gloom, rather than celebrate all that is good and positive about the automotive industry? As Nigel points out, there were many reasons why the British International Motor Show ceased to exist back in 2008. The deepest recession for many decades was the principal cause and, frankly, not the German car companies who, it has been suggested, wanted to kill the show. Why would they? The UK market is extremely important in terms of sales to each of the brands. No, I think the reason is the show did not move with the times and became very expensive for exhibitors and, frankly, deserved to be in a more centrallybased location. What was needed, then and now, is a fresh approach and Prince Michael of Kent: show patron
positive thinking. Certainly, from our research, there is huge demand out there from the motoring public. I will also take issue with Nigel about Goodwood. Yes, the two events are excellent, but as we have been told many, many times, they aren’t in London – and London deserves a motor show. Why should we allow other European capitals to have a show and not us Brits? And he is wrong when he says the proposed Battersea event does not stand a chance. Quite the opposite. It’s a pity he did not talk to us! The London Motor Show is already receiving strong support from selected car companies and a number of dealer networks – the fact that Battersea will provide test drives for visitors has been a very important development. Price is also an important issue, both for exhibitors and visitors. It was recognised that the last British Motor Show at ExCel had become very expensive for exhibitors. Battersea will be very inexpensive, with a cap on what an exhibitor can spend. The visiting motoring public will have
to pay from only £13 for entry and already the demand for pre-ordering tickets on the LMS website has been growing. The new London Motor Show will provide a platform for the motor industry in Britain to show off and showcase all that is good about our industry. It will engage with visitors unlike anything so far seen in the UK, using the latest digital and promotional techniques. We are also receiving interest from automotive supplier companies wanting to display their technologies through demonstrations – the Battersea Evolution centre will allow a wide variety of technological and safety demonstrations. We have also been honoured by the support of Prince Michael of Kent, who has agreed to become the show patron. The Prince is very well known in motoring circles and he feels our industry deserves an appropriate showcase to display the cars and technologies that have helped the UK to be one of the bestperforming economies in the EU. So let’s not decry or be negative about the new London Motor Show. Let us embrace this exciting new motoring event and deliver to the UK motoring public a show they deserve and clearly want.
u o y h Wis
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HPI MOT Data
You can relax this summer, knowing it’s all in hand. To join in our exciting journey and enter our prize draw, you can: • return your completed postcard to us, or • call us on 0845 300 8914, or • email your holiday snaps to us at sales@hpi.co.uk or share them on Twitter @HPICheck
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DASHBOARD.
NextGear Capital report: Dealers are embracing new technology bit.ly/nextgear90
IM GROUP
Citroën Motors Ireland bought THE UK-based automotive importer and distributor IM Group has bought Citroën Motors Ireland for an undisclosed sum. The deal – which includes the airside retail operation in Dublin – will give the group the rights to import and sell Citroën and DS models throughout the Republic of Ireland and will be finalised by September 30. PSA Peugeot Citroën identified IM Group as being in the best position to support the future business objectives of the Citroën and DS brands.
MOTOR DEPOT
Deal completed for site takeover MOTOR Depot has bolstered its presence in the Humber area by acquiring new premises in Grimsby. The East Yorkshirebased dealership – the Humber region’s largest independently-owned car supermarket – has completed a deal to take over the Godfrey Auto Parts premises on the West Coates Road. The new site can stock 150 vehicles and should be fully operational before the end of September.
CATERHAM CARS
Appointments broaden reach CATERHAM Cars has appointed two new UK dealers to broaden the reach of its burgeoning network across the country. Oakmere Motor Group in Cheshire and Williams Automobiles near Bristol have been signed up by the iconic brand to sell its full range of lightweight sports cars, with demonstrators already in place at both dealerships. 12 | CarDealerMag.co.uk
Cutting costs and emissions is plain sailing with PHEVs A LEADING south-coast sail-maker has gone green with its decision to buy two Outlander PHEVs from Mitsubishi dealer Sparshatts of Fareham. Ultimate Sails, based at Port Hamble Marina near Southampton, was looking to replace an elderly pick-up and van for general use and transporting sails across the country and went for the ultra-low-emission ground-breaking
SUV. ‘We didn’t just want vans, and company car tax was a factor in our decision,’ said Kevin Sproul, a director at Ultimate Sails. ‘Four-wheel drive was important as well, as we are often off-road near the water, and being closely involved in sailing, which is a green sport, the PHEV’s low emissions also appealed. Because of the tax savings available
it’s the perfect vehicle for any business, especially if you own the business.’ Shelton Chikomwe, sales executive at Sparshatts, said: ‘The Outlander PHEV perfectly reflects the environmentallyfriendly nature of sailing and ticks all the practical boxes for Ultimate Sails.’ Pictured are Shelton Chikomwe with Ultimate Sails’ office manager Sharon Hooker and director Kevin Sproul.
Proposals to curb nuisance super-rich car owners rapped Common sense called for as royal borough considers protection order
T
he founder of a supercar dealership in central London has claimed new laws planned by the local authority could harm his business. Alex Prindiville has hit out after the Royal Borough of Kensington & Chelsea announced it was planning to introduce new anti-social behaviour laws principally to stop super-rich car owners from causing a nuisance. It is proposing a Public Spaces Protection Order (PSPO) be imposed on a huge swathe of Knightsbridge – an area that will include Harrods and the streets around it. But Alex Prindiville, founder and owner of Prindiville, central London’s only supercar showroom, says: ‘The proposal to draft a new set of anti-social behaviour laws to
by COLIN CHANNON @colinchannon
deal specifically with the “menace” of wealthy Middle Eastern supercar drivers is heavy-handed and unnecessary. ‘Existing laws are already perfectly adequate to deal with the minority of supercar drivers who step out of line, provided they are properly enforced.’ The new laws will make it illegal to rev engines, speed, engage in sudden or rapid acceleration, drive in convoy, race, leave the engine of a stationary vehicle to run idle, sound horns, play music and cause an obstruction on the road, whether moving or stationary. Prindiville said: ‘While I can fully sympathise with local residents who
are upset by the anti-social behaviour of the few, the proposed terms of the PSPO are an excessive response. ‘If I were to go shopping at Harrods in the Ferrari LaFerrari currently in the Prindiville showroom and when I started it up it revved loudly – which it would, because that’s simply what happens with supercars like these, whether you like it or not – would I be arrested and have my car impounded? ‘Will these new rules be evenly applied to all? Will three Range Rovers in a row taking kids to a party be treated as a convoy? ‘Good old-fashioned policing could sort out a lot of local residents’ concerns – devising new laws is simply political posturing. ‘Please let common sense prevail.’
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DASHBOARD.
From the Silverstone auction salesroom to the circuit... bit.ly/Silver90
Calling all specialist used-car retailers – now there’s a new award just for you…
CRIME
No such thing as a safe site...
It’s time to start thinking about your entries for the best party night ever
C
ar Dealer’s Used Car Awards are already the biggest – and the best – in the industry. Well, we’ve just made them bigger. And better. We’re pleased to announce a new category to reflect those dealers who are trying to do things a little differently. The Specialist Used Car Retailer of the Year will recognise dealers who are a bit different – they may be a classic car dealer, or a specialist in sports and performance models, or an independent marque specialist. Maybe they’re a specialist in disabled vehicle conversions, or focus purely on selling 4x4s. If there’s anything that marks them out as specialist in a certain
by COLIN CHANNON @colinchannon
field, this award is for them. The new category means there are 21 awards up for grabs at this year’s ceremony on November 30 at The Brewery in London. The full list is below. And remember – you’ve got to be in it to win it. If you don’t get your entry form to us, you can’t pick up one of our prestigious gongs on the night. How do I enter? Entering the Car Dealer Used Car Awards couldn’t be easier. We’ve made sure it’s as simple and straightforward as possible
and you can do it in one of two ways. But by far the easiest way to enter the awards is online. Log on to carawards.co.uk and fill in the online nomination form – it’s great if you’ve spotted a number of categories you’d like to enter. Please give as much detail on why you should enter, as it really helps when it comes to creating the shortlists. Make that nomination form really sing! Shortlists for each category will be drawn up by our panel of judges which will be chaired by Mike Brewer. The winner and two highlycommended places will be invited to our gala awards night. And if last year is anything to go by, the winners will be going home with a very special award indeed.
DEALERS have often complained that their forecourts are a common target for thieves. So if you have a dealership, you’d have thought the ideal site is right next to a police station. Apparently not. Burglars waited until the early hours before breaking into the Five Star of Formby dealership and stealing four cars worth £26,000, as well as the keys to another 20 vehicles. The dealership’s neighbour is the Formby police station. But that certainly didn’t put off the burglars. They also strolled across the road and raided the newsagents opposite...
VOLVO
Taste of Sweden in Worthing... BRIGHTON-BASED Volvo dealer Dinnages is to open a state-of-the-art dealership in Worthing. Dinnages is introducing the Volvo Retail Experience (VRE) initiative, which will reflect Volvo’s Scandinavian-inspired values of calm, clean lines with a ‘cool on the outside and warm on the inside’-style architecture.
NISSAN
Quote-and-buy website launch USED CAR AWARDS CATEGORIES n Used Car Dealership of the Year (Under 50 vehicles) n Used Car Dealership of the Year (50-100 vehicles) n Used Car Dealership of the Year (Over 100 vehicles) n Used Car Supermarket of the Year n Used Car Dealer Group of the Year n Dealers’ Dealer of the Year n Used Car Sales Team of the Year n Used Car Dealer Principal of the Year n Dealership Newcomer of the Year n Specialist Used Car Retailer of the Year n Best Used Car Customer Care
n Used Car Product of the Year n Outstanding Achievement of the Year n Lifetime Achievement Award n Dealer Used Car Website of the Year n Social Media User of the Year n Service and Repair Outlet of the Year n Manufacturer Used Car Scheme of the Year n Used Car of the Year n Best Performing Used Car of the Year – Residual Value n Best Performing Used Car of the Year – Days To Sell
SO WHAT ARE YOU WAITING FOR? GET YOUR ENTRY FORM IN NOW
MOTORISTS buysing a new Nissan will soon be able to obtain a competitive insurance quote and get their insurance policy through a Nissan quote-and-buy website. And ‘free to go’ driveaway cover will be available at Nissan dealerships through a dedicated portal. The move follows the appointment by Nissan of Maiden Insurance Partnerships as its new retail insurance partner. CarDealerMag.co.uk | 15
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16 BT | CarDealerMag.co.uk *For business customers, calls will cost no more than 5.5p per minute, min call charge 6p (current at July 2015). The price on non-BT phone lines may be different.
DASHBOARD.
Dealership’s expansion plans see Kia added to its portfolio Platts Garage continues to grow and will soon have nearly 100 on payroll
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Staffordshire car dealership is planning a move to a new showroom – and is expanding by adding the Kia franchise to its operation. Fiat-Chrysler outlet Platts Garage, which operates in Stoke-on-Trent and Stafford, is moving its Stafford business to a different building, a former Land Rover showroom in Astonfields Road. It will start selling Kia cars there before they are joined by vehicles from the Fiat-Chrysler family, which are currently being sold from Platts’ showroom in Tollgate Drive about a mile and a half away. Company director Alex Platt told Car Dealer: ‘We’re a family firm established in 1938 in the Longton area of Stoke. About four and a half years ago, we opened a
by DAVE BROWN @CarDealerDave
Fiat dealership in Stafford and in December we approached Kia about an open point they had in the area. ‘It just seemed like a perfect fit for what we were trying to do – adding an additional franchise to our range and diversifying what we can offer people. ‘There are two dealerships at the Astonfields Road site so straight away we’ll go in with Kia – and then relocate our Fiat site there later. ‘Joining the Kia network fits in well with what we are trying to achieve as a company. ‘We’re hoping to sell Kia cars there from mid-August – hopefully that will give us a head start and we’ll be able to have a good September. The
work will have been completed by mid-October for the Kia site and then we’ll look to develop the Fiat side.’ As well as the developments in Stafford, the firm is looking to expand its fleet operation in Stoke. By the time everything is in place, the payroll will have grown from just under 80 people to almost 100. Platt added: ‘It’s a really exciting prospect for us. It will get us into a different customer base and will allow us to have lots of different product to sell.’ Figures from the SMMT showed the UK arm of Kia delivered its best-ever sales performance in June, and its year-to-date sales total also reached a new high. Kia’s best-selling car in June was Sportage (below), with almost 2,300 delivered to buyers.
AUDI
New record for six-month sales THE Audi Group delivered more than 900,000 vehicles to customers worldwide between January and June – its best-ever six-month total. The company increased its revenue to 30 billion euros and its operating profit to 2.9 billion euros. It achieved an operating return on sales of 9.8 per cent, at the upper end of its strategic target corridor of eight to 10 per cent. Chairman of Audi’s board of management Rupert Stadler said strong demand continued for the company’s products, even though important models were about to be replaced by the next generation.
PORSCHE
Record-breaking stats announced PORSCHE has announced the best half-year financial figures in its history. It says the past six months have seen new record figures for deliveries, sales revenue and earnings. The sports car maker delivered 113,984 vehicles in the first six months of the 2015 fiscal year, 30 per cent more than the same period a year ago. Revenue rose 33 per cent to 10.85 billion euros.
RIVALRY
Volkswagen topples Toyota
Kia celebrates record sales figures across Europe KIA Motors Europe has recorded its best-ever quarterly and half-year sales in the company’s history as the brand’s year-on-year growth accelerated to 7.6 per cent, according to the latest data from European Automobile Manufacturers’ Association. During the first half of 2015, Kia posted sales of 200,038, representing the best-ever six-month period.
Compared to the first half of 2014, this represents growth of 7.6 per cent. At the same time, the second quarter of 2015 was the brand’s best quarterly sales total, with 103,946 units registered – the first time Kia has broken through the 100,000 barrier in any one quarter. Michael Cole, chief operating officer for Kia Motors Europe, said: ‘2015 to date has been a great period
for Kia in Europe, with sales records tumbling and new highs reached. ‘We’re delighted Kia continues to grow, consistently and sustainably, and that an increasing number of motorists are drawn to our range of high-quality, high-value cars. Kia is focused on developing an unrivalled level of quality in its products and an industry-leading level of service at every customer touchpoint.’
VOLKSWAGEN became the biggest-selling vehicle manufacturer in the world in the first half of this year, overtaking Toyota for the first time. Between January and June, VW managed to sell a total of 5.04 million vehicles – while Toyota sold 5.02 million. Interestingly, the overall sales for both manufacturers were down for the period year-on-year. CarDealerMag.co.uk | 17
Rob is the 44 year old general manager of an independent used car dealership. On Monday morning, when he sat down at his laptop, he found he had received four highly qualified leads overnight showing named individuals and their contact details. These people had already been prequalified as eligible for finance for specific cars on his forecourt by at least one of Rob’s providers. Two came through after browsing the leading car portals over the weekend and the other two directly off his own website. Wouldn’t you like to be making your vehicles more affordable across all your digital channels, generating more leads and managing your finance all in one place, just like Rob?
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18 | CarDealerMag.co.uk
DASHBOARD.
It all begins and ends with great customer service We caught up with Benfield Motor Group’s chief exec Mark Squires to discuss his company’s success story – and he told Colin Channon the answer was simple...
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enfield Motor Group is something of an auto success story. More than 30 dealerships across the north-east of England and Scotland, turnover of £700 million, record profits, staff of 1,600-plus... not bad for a family-owned business that started in the 1950s on the east side of Newcastle. So when its boss starts talking about the changes in the industry, and how dealerships need to continue to embrace them, it’s probably worth listening. Mark Squires is Benfield’s chief executive. And he has no doubts what the number-one priority is for dealers. And it also happens to be the numbertwo priority. And number three. ‘Customer service is more important than it has ever been. And it’s going to become even more important to us as an industry,’ he says. ‘Because of the research powers customers have at their fingertips, if we carry on as we have been, and just sell cars to a punter, we’ll make ourselves irrelevant in five or ten years’ time. ‘We need to deliver to customers a great retail experience, and that’s digitally all the way through to an enjoyable browsing experience in the showroom. And it has to be the same for after-care – not after-sales, not but after-care. That’s what customers want and increasingly expect. ‘I believe the industry needs to get on a journey and really think about the quality of the retail
experience that we are delivering, and really move on that.’ So with new technology moving faster than a Bugatti, is it harder for dealers to sell cars these days? Squires thinks not. ‘We need to embrace the change in customer expectations. ‘When customers walk through the door now, there’s a good chance they are in a position to buy, a position to deal. But we also need to make it more welcoming to those who want to browse and be informed before they’re ready to make a decision. ‘In many respects, the proposition and the value the brands are offering right now have never been stronger, so I wouldn’t say it’s becoming harder to sell a car. ‘It’s becoming harder if you’re not changing and adapting and recognising things are changing. ‘It’s becoming harder if you have not got a great digital and social media presence. ‘It’s becoming harder if you’re not geared up to take and receive the leads and enquiries that are coming at you digitally, and you’re not CarDealerMag.co.uk | 19
DASHBOARD.
Our customer service is the Benfield Buzz... handling those well or giving customers what they want or responding quickly and efficiently. ‘It’s becoming harder if you think the world is not going to change, and that every customer who walks on to your pitch is not precious. ‘It’s becoming harder if you’re just not joined up in your communications with the customer, who is now expecting to engage with you through multiple channels – whether that’s by phone, text or email, as well as the physical face-to-face presence – and they expect your organisation to be joined up. ‘Part of the challenge we have as an industry is recognising what kind of experience we need to give customers. ‘Another challenge is we need to join up our systems much better and build our processes around the convenience of the customer, and not around our requirements, or the requirements of the brand. When a sales adviser has to log into 14 different systems in the morning, none of which speak to one another, to get what they need to deal with a dozen or so customers… that’s a challenge for the industry if we are really to respond and offer things the way the customer expects.’ The Benfield Motor Group is now more successful than it has ever been. So does it see itself as a potential national player, or will it remain in the north-east and the borders, working a patch it knows so intimately? Squires says: ‘We see ourselves as a regional group, so we get the benefits of a strong presence in particular geographies. Those benefits include having a strong reputation in the local market, so you can attract and pool the best management talents and people talents. And you get to know and understand specific markets very well. ‘Yes, we have had a lot of success. Why? There’s no doubt the foundation of our success is that we are a people company. We have done a lot of good work in trying to build a culture – while the company has been growing, it would have been easy to lose sight of our roots and the core principles and values upon which our success was built. ‘New people and new management come in while you acquire businesses, and it’s easy to forget those principles while this growth spurt is going on. But our cultural development initiative is still very much alive while the company continues to develop and build – it’s knitted into the core of the DNA at Benfield. ‘How do you make yourself a great people company? It’s knitted into the fabric of what we do, whether it’s sitting down with groups of staff for our Best of Benfield Awards or our budget 20 | CarDealerMag.co.uk
‘
SQUIRES ON SUCCESS
LAST YEAR our turnover was £700 million and that is continuing to grow this year, on the back of new and used car sales, good after-sales now our parc is growing, and our corporate division. We’ll be looking for eight per cent growth on that £700m this year. Last year we had a record year in terms of trade profits and my expectation is we will beat that this year, given what I’ve seen in the first half. We have gone through a lot of acquisition and the challenges that comes with that. Right now, we have been more internally focused with the biggest capital expenditure programme we have ever undertaken, with more than £20m going into new dealerships, major refurbs, and building three brand-new dealerships in the past 18 months. My philosophy is to take on as much change as you can handle in one go but there is no doubt we have the clear capacity to grow – and that’s around access to financial capacity in the future, but the most important capital to have is the quality of people you have got, and the quality of management you have got. There’s no doubt we have some great talent in the business who want to grow their careers with us.’
improvement teams. Our values and attitudes are knitted into the appraisal process, our succession planning tools and our career development journeys.’ The industry has complained in the past about the problems of attracting good young talent – the perception of the car trade isn’t helped when prime-time TV shows like Corrie and EastEnders portray it as a murky world in the back streets. When a firm has a growing reputation in the local community, that isn’t such a problem, says Squires. ‘I’ve just had a meeting with somebody who is attracted to join us because of the strength of our culture and the values we have as a business,’ he says. ‘He’s not looking at other companies. ‘We have attracted some great people and management talent to the business in recent years. Our culture and values are finding their way into our marketing and in our reputation with customers. ‘Our culture is based on our people but our vision is based around giving the best experience to our customers. Deliver that, and have the people in place who have a vision and a passion to achieve that, and you can be successful.’
A Marilyn Monroe lookalike at the opening of Benfield’s £1m VW dealership in Newcastle. But it’s the real Olympic gold medallist Jonathan Edwards and Michelin-starred chef Kenny Atkinson
It’s all about customer service and making showrooms warm and welcoming – so the new Benfield builds have a very different interior to the old-style glass and steel boxes...
So in the end, it all comes back to those words again – ‘customer service’. ‘Customers are recognising the difference in the experience they get with us – we call it the Benfield Buzz,’ says Squires. ‘When they walk through the door they have to feel as if it’s a place they want do business – I’m hearing from customers they feel they can trust us with their business, and if things did go wrong, we didn’t just do the bare minimum, we really made an effort to put things right.’ Benfield is currently undergoing the biggest capital expenditure programme in its history, spending £20 million on refurbs and building new showrooms. With more people researching and buying vehicles online, is there a need for big, glamorous showrooms? Are smaller shops in the high street – such as Hyundai’s Rockar experience in Bluewater – the way ahead? ‘There’s definitely a place for pop-up shops where they are relevant, as a way of informing and engaging with customers – but I don’t see them replacing conventional dealerships,’ says Squires. ‘If the big pretty glass boxes we are building are to continue to be relevant, it’s not because of the glass and the steel and the beautiful furniture and the brand environment – that’s not enough. It’s the experience we give to customers that we need to change when they come through the doors. It needs to be warm and welcoming. They need to be able to browse and experience the product before there’s any sense of pressure to buy. ‘As an industry, we are starting to recognise this, but there’s still a long way to go. ‘If I look at the new Nissan concept we have put into Gateshead, it’s welcoming and is set up more for browsing. Customers are not sitting at a salesman’s desk, they’re meeting and talking and the customer decides whether they want to sit in the comfy seats café style, or they want to sit at the breakfast bar with a tablet or a laptop so information can be relayed to them. They’re not sat down on the opposite side of a salesman’s desk in a salesman’s territory. ‘It’s all about engagement.’ [CD] CarDealerMag.co.uk | 21
22 | CarDealerMag.co.uk
DASHBOARD.
Annual Peugeot RCZ drivers’ day takes a romantic twist Footplate proposal makes Gateway Crewe’s special day even better
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couple who took part in a Peugeot RCZ drivers’ day organised by their local dealership added a touch of romance to the occasion – by getting engaged during the event! Steve Platt and Anne Longworth, who live in Weston, Cheshire, were invited to take part in the day by Gateway Crewe. It’s an event the dealership has organised annually for the past five years and involves participants meeting up at the showroom before driving off to a mystery destination, which this year was the Llangollen steam railway in Denbighshire. Sales executive Keith Lloyd, who has worked at Gateway Crewe for 24 years, said: ‘We went there as there was a vintage car rally on that weekend, as well as a steam railway
weekend. We were able to join in the fun and even had our customers’ cars displayed as exhibits. ‘We all enjoyed a steam train journey and had a waitress serve us afternoon tea with champagne in our own private railway carriage.’ The surprise marriage proposal
came when Steve popped the question on the footplate of the steam train in Llangollen. Keith said: ‘Both Steve and Anne have been on our RCZ driving day four out of the five times that we have organised it. ‘Everyone was delighted by the marriage proposal and it made a hugely enjoyable day even better. ‘I spoke to Steve recently and he’s wondering if the wedding will be able to top the engagement! He said he felt very nervous but that the claps, cheers and hugs from everyone made it a fantastic occasion. ‘And both Steve and Anne want to involve the RCZ drivers in their big day next year.’ Peugeot special, pages 48-60
MOTORPOINT
Defibrillator is installed MOTORPOINT has helped install a defibrillator for community use in Burnley, Lancashire. The car supermarket, which has been based in east Lancashire since 2000, worked with the North West Ambulance Service to have a public-access defibrillator fitted outside the Bailey & Garrett Chemist in Rosegrove Lane. The North West Ambulance Service also provided training for staff at the chemists on how to use the lifesaving piece of equipment in the event of an emergency. The move follows the decision by Motorpoint Burnley to fit its own publicaccess defibrillator onsite. Every year, 30,000 people suffer cardiac arrests outside of hospital.
www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller
CarDealerMag.co.uk | 23
DASHBOARD.
Meet Mr Land Rover Roger Crathorne, 68, has been with Land Rover for more than 50 years. Here he tells James Baggott about what makes the iconic Defender so special
T
he Defender, as it’s known now, is a very special car and I think that’s down to its origins. It’s a utility vehicle, a toolbox on wheels that was designed very much with farmers in mind. The creators, the Wilks family, had a wartime Jeep and couldn’t get parts for it so they decided to build an equivalent and aim it at the farming community. They soon realised the car they had built could be all things to all men. The military were quick to pick up on the Land Rover’s ability. American Jeeps were in short supply and they realised that here was a British-built vehicle that was a little better as it had
permanent four-wheel drive. The car came at a time when people needed to open up continents and start to get the world back on its feet. People soon started to realise that this was a car that could literally go anywhere, where others simply couldn’t, and it opened up the world again. At one stage, the first car that 60 per cent of the world’s population saw was a Land Rover. I’ve seen the Land Rover develop its cult following over the 50 years I’ve worked for the company. I started in 1963 – the Series II was in production – and I was an engineering apprentice. I qualified as an engineer and the first project I
worked on was the original Range Rover, but we all knew the importance of the original Land Rover. I did all the chassis development on the Range Rover and all the off-road durability. And then my career developed and in 1972 I was asked, because of my interest in understanding the brand, to be a chief engineer and do a world study for two years on where Land Rovers should be going in the future. That resulted in us making the vehicles more comfortable, with improved spring suspension, and also giving some a bigger capacity engine. We introduced the V8 and also other markets wanted much more load-carrying capacity and that is
DRIVING THE LEGENDS The Land Rover – later renamed the Defender – was launched in 1948. To celebrate we visited Islay, home of the Wilks family who invented the iconic car, Series I Launched in April 1948, the Series I, with 1.6-litre petrol engine, has a rugged utilitarian feel to it, but is full of charm. The steering has more play in it than a ball pit, the gearbox needs double de-clutching to stir the next cog into action, but it is remarkably charming.
24 | CarDealerMag.co.uk
Series II The Series II gave birth to not one but two cars – the car it replaced was given its Series I moniker to distinguish the two, as up until that point it had simply been known as the Land Rover. The II took just six weeks to remodel and subtle was the name of the game. Now it’s still as charming as the original and utterly impeccable off road.
Roger Crathorne: People love Land Rovers because they do what other vehicles won’t
when the pick-up came along. Of all the cars I’ve worked on it’s difficult to pick a favourite. I’ll always have a love affair with Range Rover because I was there from day one, but while I was helping develop the Range Rover, my day car was a Series I Land Rover. It was the shortest one of all – the 80 – and I loved it. I think the love affair for the general public with Land Rovers comes as a result of the fact they do what other vehicles won’t. I mean, even our testing was extreme. When we were testing a new gearbox or a modification, we used to have to do 50 hours of ploughing. We’d go and talk to a local farmer
and say ‘can we plough some of your fields?’ That was great fun. Nowadays I work as a consultant on various projects. I created the Land Rover Experience activities, so it’s nice to see that carrying on, and I’m looking forward to seeing how the Defender is replaced. You’ve got to remember the Defender, or the Land Rover as it was called in 1948, was the right
car for the right time. When the boys in engineering and design bring out the nextgeneration Defender, it will be the right car for these times. I’d like to see the design team do something that is right for now because the vehicle is one of the main pillars of the company, and for me we need to follow the design lines of what we’ve got. But it needs to be built in a way that we can get volume production and create the demand that Land Rover has always had. It’s a job I would I love to take on, but I know there are other people who are more qualified today to do that. [CD]
AT ONE STAGE THE FIRST CAR THAT 60 PER CENT OF THE WORLD’S POPULATION SAW WAS A LAND ROVER. to sample some history. Here are our favourites. Defender Until 1990 the model was simply known by their series numbers and the length of the wheelbase in inches, but in 1990 that changed. It was the arrival of the Discovery and the confusion that would have caused, thanks to its Land Rover badging, that led to the Defender name being introduced. A diesel engine finally arrived.
Defender Heritage Edition Fast forward to the modern day, and this harks back to the model’s illustrious history. With HUE 166 logos – the registration of the original pre-production Series I that was nicknamed ‘Huey’ – and plush upgrades inside, it’s a far more comfortable car and still brilliant off road.
CarDealerMag.co.uk | 25
How your customers are shopping online for finance www.codeweavers.net
Locations FlexiCalc was used last month
contactus@codeweavers.net
0800 021 0888
from Codeweavers equips you with all the information you need to create specific finance offers based on what your customers are searching on your website.
68% 32% is the ratio of male to females interacting with
FlexiCalc The percentage of dealers’ customers that change parameters when using
FlexiCalc
78%
69%
26%
DEPOSIT
TERM
MONTHLY PAYMENT
26 | CarDealerMag.co.uk
DASHBOARD.
Blurred lines: Buyers are more openminded when planning a purchase bit.ly/blurred90
Ask HPI YOUR QUESTIONS ANSWERED
How do I convince buyers that I’m no Arthur Daley?
I
Large volumes in market and time of year hit SUVs Values in general edged down in Black Book Live in July
C
AP says steady consumer demand has kept the wholesale vehicle market fairly buoyant and dealers are keen to keep their forecourts stocked up. With volumes in the used car market high, and ahead of the same time last year, values in general edged down in Black Book Live during July, but only resulting in a month-end drop of 1.2 per cent at the three-year, 60,000-mile mark. Of the main volume sectors, SUVs were the hardest hit, because of large volumes in the market and partly the time of year. The Nissan Juke, above, and Skoda Yeti saw values drop in July because of high volumes in this ever-growing SUV sector – which has seen 125 per cent increases in used-car sold volumes over the past five years – and is likely to remain under pressure in the long term, according to CAP. Derren Martin, senior editor of CAP Black Book, said: ‘Depreciation over the past two months has been slightly lower than anticipated. Will the market catch up with where many expected it to be? ‘We have reported many dealers are seeing margin compression. When accounting for high volumes in the usedcar market and a likely increase in the long term, there is the potential for some pressure on trade prices. ‘August is likely to lead to a small dropoff in consumer footfall, so the supplyand-demand balance may promote further
price erosion. Longer term, there could be added pressure with a new registration plate looming, resulting in more fleet returns and retail part-exchanges.’ Upper medium, or D-sector cars, fared slightly better than the average in July and this could be because of stable volumes in the used car market. Used car sales volumes in this sector are down two per cent since 2010. Values of common ex-company cars such as diesel variants of the non-current BMW 3 Series, Ford Mondeo and Vauxhall Insignia all stayed level in July, showing they remain a popular choice for the used car buyer, and represent good value when priced against many of the SUVs. Values of convertibles declined in July, particularly from the middle of the month onwards. The worst affected were those cars that appeared in higher volumes, such as the previous version of the Audi A3 convertible and the current Volkswagen Golf convertible. The pace of convertible depreciation has steadily increased over the past three months in Black Book Live, moving from just 0.2 per cent during May, to 0.8 per cent in June and then 1.6 per cent in July. The window of opportunity is rapidly closing for these cars – if a dealer is looking to buy wholesale in August, by the time the car is prepared and on the forecourt, summer will more than likely have passed.
’m tired of the industry being associated with an Arthur Daley stereotype. It seems that only the big flashy franchise boys can shake this. We do things correctly and treat our customers fairly. You have a brand that is trusted. How can I stand out? You’re right. Arthur Daley has an awful lot to answer for, even though he was played by a great actor, George Cole, who sadly passed away recently. But it’s fair to say the reputation of car dealers remains tarnished by his flawed sales antics. The vast majority of used car dealers, be they local, familyrun, independent traders or multi-franchise networks, not only offer buyers great savings on quality cars, but they also offer the highest level of protection against purchasing a vehicle with a suspect service history and a dodgy provenance. Dealers are highly regulated by trade bodies, EU legislation and the UK legal system. They are legally obliged to deal with customers fairly and honestly, which means at best they risk their reputation if they fall foul of meeting due diligence, or at worst they lose their business and could face a judicial sentence. It’s important to protect the brand that is your dealership – you need to demonstrate you recognise the importance of the Trade Discrimination Act, that you perform due diligence at every stage of the car buying and ownership process and that you promote best practice. Transparency is key. One of the most powerful laws is The Consumer Protection from Unfair Trading Regulations 2008, which bans misleading practices and omissions as well as aggressive sales tactics. So always be clear in how you advertise your stock, and if there’s a negative you aren’t prepared to address before selling the car on, be honest about it. The Sale of Goods Act of 1979 says the goods must be as described, of satisfactory quality and fit for purpose. The dealer also has to prove ‘good title’, which will confirm he has the right to sell it. Publicise on your website which associations you are members of. Buyers take confidence in knowing you are part of a body that governs how you trade. Be clear what your return policy is, and if you firmly believe the consumer does not have reason to truly expect repair work to be done or a refund given, be open as to how they can seek third party opinion through organisations such as Trading Standards, Motor Codes, Citizens Advice Bureau and the RMIF. Lastly, always share evidence of checks you have conducted on your stock to ensure its integrity, and promote your stock with ‘all clear’ certification.
‘Always share evidence of checks you have conducted on your stock.’
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 CarDealerMag.co.uk | 27
DASHBOARD.
Around the world Dealer news from somewhere other than here
RUSSIA
Domestic sales have dropped dramatically, pushing the country out of the world’s top 10 largest car markets, according to business daily Vedomosti. It cites analytical agency Avtostat and says that during the past year the buying of cars has fallen by nearly 37 per cent. This means that Russia is now 12th in the world, falling behind a number of European nations, the USA, India, Japan and South Korea.
USA
An employee at a used car dealership in Kentwood, Michigan, has been charged with using a company computer to create false pay stubs to fool credit unions into approving car loans for people on low incomes. Christopher William Martin, 55, is accused of false pretences of more than $20,000 – punishable by up to 15 years in prison.
SOUTH AFRICA
A stolen car has been reunited with its owner 22 years after being taken. The Toyota Corolla 1.6 GL had belonged to uninsured Derrick Goosen and stolen in Pretoria in February 1993. It was recovered in a roadblock in Limpopo last November minus its engine and chassis numbers but handed back to a delighted Goosen this month.
CAR DEALERS ARE YOU READY TO SELL YOUR ECONOMICAL CARS WITH
INDIA
Healthy sales of domestic passenger vehicles were recorded in July, thanks to better buyer sentiment plus a fall in fuel costs. Maruti Suzuki, Hyundai and Honda, which are the top three manufacturers, posted year-on-year sales growths of 23 per cent, 25 per cent and 18 per cent respectively.
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28 | CarDealerMag.co.uk
CHINA
BMW’s secondquarter profits have been hit by a fall in sales in the country as well as by a drop in investment in new vehicles. Net profits dipped from 1.77bn euros in the first quarter to 1.75bn euros in the second quarter, following a decade of growth. A spokesman said: ‘If conditions in the Chinese market become more challenging, we cannot rule out a possible effect on the BMW Group’s outlook.’ He added that sales had moved to compact vehicles that were lower margin.
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Contact your Account Manager or visit blackhorse.co.uk/dealerportal CarDealerMag.co.uk | 29
Santander Consumer Finance is 10 years old We’re celebrating, thanks to you On the occasion of our 10th anniversary, we would like to thank everyone who has contributed to our growth and success. We look forward to working with you for the next ten years, and beyond.
If you would like to find out more about us then please contact: Rob Gale (North)
07958 005 898 robert.gale@santanderconsumer.co.uk John Corrigan (South)
07920 821 658
john.corrigan@santanderconsumer.co.uk 30 | CarDealerMag.co.uk
BIG MIKE.
All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike
When it’s a pleasure to deal with a different class of customer... S
creamers. We’ve all experienced them. Folk who, no matter how good the car is that you sell them, always come running back with one problem after another. What’s more, the likelihood of someone becoming a screamer is, in my unfortunate experience, inversely proportionate to the value of any car they may buy. I was reminded of this the other day when I encountered not a screamer, but the complete opposite. A couple of weeks ago, I sold a lovely BMW 535d to a middle-aged chap in the next suburb. The car was a 2007 model, moderate mileage, and dealt to him for £5,995, which is about as high as I go. The gentleman was what we call in the trade ‘good for it’, which meant there were no questions at all about whether or not he would pay. He had a nice house in a nice suburb, and a mega-mile but well-maintained 15-year old 530d that he wanted to trade in on a no-nonsense ‘I’ll be happy with £500’ kind of deal. Straightforward, in other words. On the day of the deal, he turned up in his V-plate Beemer with a glovebox full of cash, I took both, and he drove away in his shiny 57-plater happy as Larry, whoever Larry is. I, meanwhile, decided to buy the 530d a tax disc (boo to the new rules!) and use it myself, as the 275k on the clock would have put off many a Tom, Dick or Harry, but to a dyed-in-the-wool trader like me was nothing more than a badge of honour for a car that had, clearly, been a reliable servant to its previous owner for over a decade. And I’m glad I did. Why? Because four days later, the gentleman in question wandered on to the lot carless and apologetic. The 535d, apparently, was immobile in the Waitrose car park, and he hadn’t a clue why. He (extremely politely) suggested that was a tad disappointing for a car he’d only owned for four days, and I had no option but to agree with him. So we both set out in the old 5-Series for a closer look. Of course, when we got there, I jumped into the Beemer and it fired up on the first turn of the key, so we drove both cars back to the lot and got the chap from the MoT station next door to come and cast an eye over it. An hour later, none the wiser, my customer drove home, both of us perplexed at the 535d’s earlier failure to proceed. Two days later, it happened again. This time while he was stuck at work, so I jumped into his dutiful old barge and rescued him. This time, the 535d wouldn’t start for me, either, so I called the garage
Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...
and let the customer, who was still unerringly polite, drive home in his old car. The problem, it turned out, was a faulty inhibitor switch, and by taking it out of Park, moving it up and down the gears a few times, and popping it back into Park or Neutral you’d normally get a start out of it, so at least the repair wasn’t too disastrous (unlike the part from BMW, which wiped out 50 per cent of my margin on the deal), but the good news is that it was well and truly fixed. Alas, when I called him to come and collect it, he arrived on my forecourt at the same time as a prize screamer. The ‘lady’ in question had bought an Audi A4 from me a week earlier from a ‘px to clear’ ad in the paper, and truth be
‘The ‘‘lady’’ in question had bought an Audi A4 a week earlier’ told it was an absolute minger (the car, that is…). Eighteen years old, two rust-holed wings, an interior that smelled like a pub carpet in the days before the smoking ban, and suspension that creaked more than Count Duckula’s door hinges, it was clearly its seven months’ remaining MoT away from the junkyard. But then again, I’d sold it for the princely sum of £325. Her beef was that the central locking didn’t work on the passenger door and that she needed it to as she didn’t want to load her prized Pug into the car from the traffic side of the road, and had she realised as much when she first ‘viewed’ it (she came along, Smoking. A. Fag. Handed over the cash in a brown paper bag, filled out the V5 in spidery scrawl and drove off) she would never have bought the thing. She then went on to rattle off a load more faults – the fag lighter didn’t work, the radio only picked up Magic or Smooth FM, the carpets were smelly and there were holes in the wings. A discourteous rant, overall, and the complete opposite of the BMW owner, who had been gracious and polite, despite experiencing a far more distressing problem. When the Audi ‘buyer’ demanded her money back because if she didn’t get it she’d ‘get into trouble on her payday loan, innit’, the penny dropped. Quite literally, in actual fact, as that’s what I gave her as compensation for her troubles…
Who is Big Mike?
Well, that would be telling. What we do know is he’s had more than 30 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 31
TRADING UP.
Our new Saxo is salt of the earth Andy Entwistle spends £200 and hopes to double his money. Its scrapes and scratches add ‘personality’...
T
he Americans have a saying: ‘Go big or go home’. They also say ‘double or nothing’, ‘have a nice day’ and ‘would you like that supersized?’, but I digress. Well, I haven’t gone big, but I’ve also not gone home. Instead, I’ve decided to do what those Americans who frequent Vegas know only too well, which is double or nothing... Don’t get me wrong, I’m not betting all our cash on black. Rather I’m putting a small amount of it on red – a small red Saxo to be precise. And when I say small, I mean small ... it’s £100. I found a 2000 Saxo 1.1 on Sytnerweb which had low mileage and an even lower number of bids – well, zero bids to be precise. I stuck in one of those cheeky ‘I’ll give you 75 quid for it’ type bids and the auction ended without the reserve being met. The following morning while filling up our long-term S7 (a very regular requirement) I got a call from Leeds VW. What’s the chance of you making it £100? they asked. To be honest, I couldn’t remember much about the
car, but then I thought: well, it’s a small car, with only 50k on the clock, MOT and runs okay – yes, for £100, I figured I couldn’t go too wrong. Worst-case scenario is we can break her for more, surely! So I paid another £100 to get her down to Gosport and, a couple of days later, she was driven into the Car Dealer HQ. So what do I know about her now? Well, I read the auction notes as soon as I got to the office – and I’m already starting to regret my impetuous nature, if I’m frank with you. Every panel has been ‘personalised’ and apparently if you lock the car, the only way in is through the boot. But it’s a 1.1 with low mileage. Every new driver’s dream, surely? I figure a clued-up parent of a new driver will pick her up battered, allow their offspring to master the art of driving without
worrying about the odd ding, before buying them something decent. At least, that’s my logic. Surely I must be able to double the £200 outlay. I’m going to sort out the locks, give her a good clean-up – courtesy of those nice people at Simonez, who’ve delivered a box of cleaning goodies for us – and then see if any of the personalisation can be improved with a rubber mallet before I stick her on the web at £595… In other news, we have a very purple early MGF, which was bought for our Bangers4Ben event. I was assured it had recently had the head sorted. Yup, you guessed it – it overheated on the way down to Gosport. I’m already starting to think that maybe travelling 1,400 miles across Europe in this is foolish, even for me, so it may find itself being sorted and then repurposed for Trading Up. Next step is to get an opinion on her before we decide…
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 Subaru Impreza Paid: £1,600 Spent: £650 Sold: £2,250 Rover Coupe Paid: £600 Spent: £0 Sold: £800 Peugeot 307 Paid: £500 Spent: £50 (on a battery) Sold: £700 Renault Clio Paid: £1,600 Spent: £400 Sold: £2,250
Total £950
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FINANCE.
Exciting times for BMW as key appointments made ‘UK automotive retail sector is in a positive place right now, and we want to ensure our retailers are able to benefit’
B
MW Group Financial Services has made two key appointments. It has promoted former Alphera Financial Services marketing manager Nigel Unwin to the role of head of marketing, and appointed Preston Rogers as general manager of group brands in the UK. Unwin will take overall responsibility for the financial services marketing of the BMW, Mini, Motorrad, Rolls-Royce and Alphera brands, as well as insurance and retention, and will oversee a team of brand marketing managers and executives. He joined the BMW Group as Alphera Financial Services marketing manager in early 2014, and has been a key member of the team which has rolled out a new business model to retailers, partners and brokers and been recognised with industry awards from Credit Today and Motor Finance Europe. His previous experience includes marketing-related roles at companies such as Kia, General Motors, Fiat Group, Grass Roots and Case New Holland.
Looking ahead: Nigel Unwin, left, and Preston Rogers Unwin said: ‘This is an exciting time for the BMW brand in the UK, with plenty of growth opportunities across all our business lines. I’m looking forward to getting stuck in and supporting the ongoing roll-out of our market-leading approach to doing business across our network of retailers and dealers and developing new marketing initiatives.’ Rogers takes on his new role after working for BMW Group Financial Services South Africa and replaces Spencer Halil, who has become director of Alphera Financial Services. Rogers will be responsible for the continued roll-out of a transformational new business model to BMW and Mini retailers. A graduate of business and marketing degrees in Johannesburg,
Rogers has been with BMW Group for more than 12 years. Starting his career as a credit analyst in South Africa, Rogers has spent time in strategy, sales and marketing roles, including an ex-pat assignment in pricing with Alphera Financial Services in the UK. Rogers said: ‘I’m looking forward to being back in the UK and working alongside the team to continue the roll-out of our innovative approach to doing business. ‘The UK automotive retail sector is in a positive place right now, and we want to do everything we can to ensure our retailers are able to benefit from the retention and business growth opportunities that transparency and treating the customer fairly can bring.’
Finance firm celebrates a busy year with ‘healthy eating week’ LEADING motor finance provider Close Brothers Motor Finance held a healthy eating week for all employees to celebrate the end of its financial year. The initiative, which ran from July 27-31, was designed to help promote the importance of healthy eating to overall wellbeing.
34 | CarDealerMag.co.uk
Each of the company’s branches across the UK and Ireland was given a budget of £100 to spend on a range of healthy food and drinks. Head of customer sales at Close Brothers Motor Finance, David Grieve, said: ‘We wanted to get everyone thinking about their health and how a
good diet can contribute to it. ‘Healthy Eating Week is a positive way for us to celebrate the end of our financial year and a small way of saying thank you to all employees. ‘It’s been a busy year and we wanted to end it with a focus on healthy eating.’
SUZUKI
Buyers need to be Swift to snap up a summer offer! SUZUKI has launched its summer offers across the range. The recently introduced Celerio SZ2 is priced at £6,999 and is available for £79 per month over 42 months, with a deposit of £1,816 and optional final payment of £2,685. Celerio SZ2 is equipped with a DAB digital radio, CD tuner, Tyre Pressure Monitoring System and daytime running lights. Swift is one of Suzuki’s ‘world strategic’ models and makes strong statements in styling, impact safety, driving performance, handling as well as offering low fuel consumption and low CO2 emissions. Swift is also Suzuki’s largest selling model in the UK, accounting for 40 per cent of sales. Swift SZ3 is available on PCP with 0 per cent APR and £0 deposit, at a cost of £172 per month over 42 months with a final payment of £3,375 for a three-door model, or £182 per month with a £3,438 final payment for a five-door model. S-Cross SZ3 is also available on PCP with 2.9 per cent APR and 48 monthly payments of £159. A £2,090 deposit is required and the optional final payment is £5,275. SZ3 models are equipped with air conditioning, 16-inch alloy wheels, USB and Bluetooth. The all-new Vitara is also included in the summer offers, with a 42-month PCP at £179 per month with a deposit of £2,600 for the Vitara 1.6 SZ4 model, which is priced at £13,999. The optional final payment for those customers who want to keep their car is £5,665.
..in association with
It might be summer but are you planning for a busy September? W
ith the football season upon us again, I thought it would be good to talk about preparations. During the close season, I’ve seen my team sack our experienced manager and watch him go on and sign a contract to manage Newcastle United in the Premier League. Not a great start. Then we hired a new head coach / manager, who has never managed a first team but has been the main coach at Paris Saint-Germain, Real Madrid, Chelsea and Fulham giving him a wealth of experience. The fans were divided in their opinions, because the new man had no management experience but plenty of
‘The team has sold more season tickets than ever before in pre-season.’ knowledge and experience in other areas. Our board, however, carried on moving forward, signing seven players, all experienced and the majority of them full internationals. We even smashed our club transfer record to sign a winger. Things were looking up. Not slowing down, the board has continued to move forward, with a whole new brand development campaign that even utilised hashtags and a personalised communication with an update from the CEO. The final piece of the preparation jigsaw was a new and improved kit that looks much better than last year’s. Our fans have been won over and the team has now sold more season tickets than ever before in pre-season. The board must have been preparing for this opportunity well before the last season closed. This may seem a
Ben
Garside TIME IS MONEY
peculiar area to look at but preparation is a key area of business. In the motor trade we always need to prepare and plan. Depending on how long you have been in the trade, you would have known that summer was going to be quiet, so hopefully you will have put plans in place to keep footfall and business up. I notice dealers have been holding events such as family weekends and barbecues. Some car dealers have implemented finance promotions and price offers while others have added communication plans to past customers to help improve footfall. All of these are great to help stop the summer decline. However, now it’s time to start preparing the growth plans. In September we will see the launch of the 65 plate. Last year, the 64 plate was launched and new car registrations grew to a decade high. According to figures released by the market research
Turn over page for more finance stories company GfK in June, consumer confidence was at its highest point in 15 years so I would predict another great September for UK car sales. However, this growth is not just for new cars – the increase in new car registrations means that the used car market receives an influx of vehicles mainly through part-exchanges. Meanwhile, auction houses become filled with used cars of all ages and models and used car sales grow as well. So the question is: What preparation and planning are you doing at present? Are you staffing up, looking for new talent, training your current employees, improving your communications, trying new media, updating your literature or targeting past customers? Motor traders should treat this as an opportunity for growth and be thoroughly prepared.
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 | 35
DEALFINDER.
FINANCE. YOUR ESSENTIAL GUIDE TO... LUXURY SUVs MERCEDES-BENZ GL 350
AUDI Q7 QUATTRO
MERCEDES-Benz’s GL 350 BlueTEC Diesel is a luxury crossover SUV, offering the features of an SUV built on a passenger car platform. The six-cylinder, 280hp engine can reach a top speed of 137mph, accelerating from 0-62mph in 7.9 seconds. The GL 350 is currently available on a similar payment plan to that of the Range Rover on the facing page. The 37-month contract with an APR of 6.3 per cent and a fixed interest rate of 6.11 per cent requires a customer deposit of £11,563, which is followed by 36 monthly payments of £699. The optional purchase payment of £32,600 and purchase activation fee of £10, means that the total paid by the buyer over the three years amounts to £69,337 – £7,682 more than the on-theroad price of £61,655.
AUDI’S Q7 Quattro is an SUV with a difference. Its imposing looks and sporty handling are complemented by the comfortable and luxurious interior. With an on-the-road price of £54,510, it is the cheapest of the three featured here. The German brand is currently offering its Q7 S line 3.0 TDI 272 with metallic paint on a 35-month payment plan, with an APR rate of 6.4 per cent and fixed interest at 6.2 per cent. A customer deposit of £9,057.52 is required, alongside £675 for the paint job. Thirty-five monthly payments of £599 equate to £20,965, and customers who wish to buy the car outright will be charged the optional final payment of £31,594.15. The total paid by the customer, including fees, comes to £61,666.67, according to Audi, £7156.67 more than the car’s on-the-road price.
280 per cent growth! New website is helping company forge ahead Suite of new services and features being introduced by Carfinance247 in the near future
M
anchester-based Carfinance247, a specialist online motor finance broker, achieved annual growth of 280 per cent in its last financial year. Turnover at Carfinance247 rose to nearly £10m this year (£9.9m), from £2.6m last year, while the amount funded to consumers was £92.2m, an increase of 271 per cent on the previous year. The independently-owned business is based in Ancoats and employs 165 people. Brothers Reg and Louis Rix, pictured, who founded the business in 2006, put the phenomenal growth down to their investment in technology, a fast-growing, passionate workforce and a shift in the market away from dealership finance. Carfinance247 operates nationwide. With partnerships with some of the UK’s leading
36 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave lenders including Hitachi, Paragon Bank and Motonovo, it helps customers get the best rates of finance to match their personal circumstances and credit rating. While the business dates back to 2006, when it was set up alongside Reg and Louis’s online car classified business netcars.com that they sold to the RAC in February 2013, it’s only in the past two years, since this sale, that the brothers have focused solely on motor finance. Managing director Reg Rix explained: ‘The launch of our new website in September 2014 was a huge turning point. The site has helped us attract and convert a higher number of customers
and is supported by a bespoke system developed by our 15-strong in-house development team that has sped processes up, improved our overall customer service and reduced the need to manually underwrite applications.’ Talking about Carfinance247’s future plans, Louis Rix said: ‘In addition to a suite of new services and website features that will go live in the near future, we are investing heavily in our marketing activities. ‘Our brand name undoubtedly helps us be memorable, but at the end of the day it’s our technology, passionate workforce, customer service and brand development that means we stand out in our field.’ The company was recently shortlisted for Digital Business of the Year in the 2015 Lloyds Bank National Business Awards.
..in association with
Higher res column advert.pdf 1 12/05/2015 09:45:32
Looking for a Non-prime finance company with a difference?
RANGE ROVER SPORT THIS 3-litre SDV6 Diesel with an eight-speed transmission promises power and performance, with a top speed of 130mph and 0-60mph acceleration in 6.8 seconds. Land Rover UK is currently offering its luxury SUV on a 37-month finance offer at a APR rate of 6.9 per cent and a fixed interest rate of 6.3 per cent. A customer deposit of £14,400 is asked for, followed by 36 monthly payments of £599, which amount to £21,564 over the three years. When the payment plan comes to an end, the customer has the option to buy the car outright, with a final payment of £34,477. In total, the Range Rover Sport will cost £70,441 on finance, £8,491 more than the on-the-road price of £61,950. Alternatively, if the owner does not wish to keep the car once the 37-month contract is up, they have the option to return the vehicle, or part-exchange it.
First Response Finance offer Non-prime finance with a Prime service
C
IVENDI
FLA
Buyers increasingly put monthly payments first when buying a new car
Strong growth in number of new cars bought on finance
PAYMENT-driven searches are likely to be the biggest development for car portals in the next year, according to dealer technology specialist iVendi. The company says that, until now, payment searches have been limited to individual dealer or dealer group websites but now the technology is becoming available to make them available across searches covering thousands of dealers. James Tew, chief executive officer, explained that iVendi knew, from use of its Quoteware online finance calculator that, where available, around two thirds of consumers will opt for ‘monthly payments’ as their key search criterion. He said: ‘If you know that you can afford £250-300 per month, it makes sense for this to be the basis of your search. We very much live in a pay-monthly society and this is how many consumers think today when purchasing a car. ‘Until now, the use of payments search has been effectively limited to individual dealer or dealer group web sites. Soon, this picture will change.’
THE number of new cars bought CMY K by consumers on finance provided through dealerships grew by 15 per cent in June, compared with June 2014 – the strongest growth seen this year. The percentage of private new-car sales financed by FLA members through dealerships in the 12 months to June 2015 increased to a new high of 78.1 per cent. Point-of-sale consumer used-car finance volumes also continued to grow, increasing by seven per cent in June compared with June 2014, and by nine per cent in the 12 months to June 2015. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘As we forecast at the beginning of the year, point-of-sale consumer car finance volumes have continued to grow in 2015, but at a slower rate than in 2014.’
M
Y
CM
MY
CY
Get in touch today! 0115 946 6317
Registered in England No. 03560611. Registered Office: Chetwynd Business Park, 5 Regan Way, Chilwell, Nottingham, NG9 6RZ. Authorised and regulated by the Financial Conduct Authority
CarDealerMag.co.uk | 37
FORECOURT.
Audi Q7 Anna Chudley is the Audi UK product manager for the Q7. And she’s quite excited about Audi’s new baby. In fact, she’s very excited indeed... Why do you think the Q7 is now the benchmark in the highly-competitive SUV sector? It debuts the new VW Group MLB evo platform and has the widest range of new technology and intuitive driving assistance systems in its segment, such as MMI Navigation-Plus with MMI touch and Audi Pre-sense City as standard. It has the option of all-wheel drive, which reduces the turning circle by up to a metre – better than any other SUV. It is also made with lightweight materials and construction methods, employing a large percentage of aluminium which makes the new Q7 the lightest SUV in its class – it’s up to 325kg lighter that the first-generation five-seat option, and 240kg lighter than the standard seven-seater. The Q7 offers best-in-class performance. The 3.0 TDI quattro 272PS engine is capable of 0-62 mph in 6.5 seconds and has a maximum speed of 145mph – both the 218PS and 272PS engines are EU6 compliant sixcylinder TDI units. It is very practical as well, with seven seats, an electrically-folding third row which can comfortably seat two adults, six ISOFIX seats can be fitted, and it is spacious with more headroom than its predecessor, and commodious boot space.
What type of buyer is it aimed at? A typical Q7 customer will have a keen sense of adventure and enjoy spending time with the family. They will also be looking for premium luxury and quality, combined with space and functionality. It has been completely rebuilt. What was the thinking behind that decision? The first generation was launched in 2006 and was a great success for the Audi brand – more than 500,000 were sold globally. The new MLB evo platform and its lightweight construction processes enable us to deliver the very latest Vorsprung durch Technik developments and improved driving dynamics on a car that is hugely important for our brand. It is currently the most technologically-advanced model in our range. Do you feel this is the right time for the all-new Q7 to arrive? Most definitely. The C SUV segment is growing and getting more competitive. With the previous generation being 10 years old, this is the right time to introduce an all-new Audi Q7, which is primed to showcase the best of what Audi has to offer. The first use of the MLB evo platform in Q7 cements its position as the newest in its segment. It is great to have Audi debut such an array of
new technology, new design language and advanced construction capabilities. Are dealers excited about getting the car in their showrooms? Most definitely. Cars are now arriving at Audi centres and the feedback has been very positive. It has the best performance stats in the SUV sector. Why do you feel this is so important? The Audi philosophy is Vorsprung durch Technik and this is reflected in all our models, meaning we always strive to demonstrate best performance. Q7 customers want powerful engines as well as efficiency. They want an SUV. Many have kids and need practicality in their lives and do not want to sacrifice performance for these requirements. Q7 offers practicality and comfort. The Q7 the start of a busy few months for Audi? We have achieved our best-ever worldwide sales. The new Audi A4 launches later this year, featuring many of the new technologies offered on new Q7. We’ll also have the most powerful production Audi model ever built, the 610hp Audi R8 V10 Plus, arriving before the end of 2015.
on test
So what’s it like on the road? Harry Boucher dodges the ponies as he takes a spin WHAT IS IT? This is the biggest member of the Audi family and the lightest in its class. The second-generation Q7 has been rebuilt from the ground up, creating a completely new car. It is slightly narrower and shorter than its predecessor, but is taller so it offers class-leading headroom.
WHAT’S UNDER THE BONNET? A new 3.0-litre six-cylinder engine debuts and offers strong performance. With 268bhp being distributed to all four wheels, the Q7 will get you from 0-62mph in just 6.5 seconds and on to a top speed of 145mph. To keep the weight of the car down, much of 38 | CarDealerMag.co.uk
the engine is lighter, allowing the kerb weight of this Q7 to stand at just 2,060kg – not bad for a hefty seven-seater off-roader. The engine has also been tweaked for improved economy and offers impressive claimed economy for its size, at 47.9mpg.
WHAT’S THE SPEC LIKE? There is enough kit in the standard SE Q7 to keep finding something new every day for quite some time. Turn the car on and the sat-nav equipped media system will pop up from the dashboard, featuring a high-resolution 8.3-inch screen. There are seven seats, with the second row folding in three parts, and two seats in the third row that electrically emerge from the floor. We found the S line interior even more appealing, though, with leather and alcantara seats – chunky sports seats for those in the front – and the three-spoke leather-trimmed multi-function steering wheel feeling much more upmarket. The optional add-on of Audi’s digital virtual cockpit is quite striking too, with its street
VIRTUAL DELIGHT
The Audi virtual cockpit is smart – and makes everything easier...
DIESEL DELIGHT
3.0-litre TDI 268bhp diesel that offers class-leading performance.
THE KNOWLEDGE
Model: Audi Q7 S line 3.0 TDI Price: £53,835 Engine: 3.0-litre turbocharged six-cylinder diesel Power: 268bhp, 600Nm Max speed: 145mph 0-60mph: 6.5 seconds MPG (comb’d): 47.9mpg Emissions: 153g/km
DESIGN DELIGHT
The new facelift makes it look mean and much more desirable.
around the New Forest – and enjoys the experience view-esque map even showing cars going by.
WHAT DO THE PRESS THINK?
WHAT’S IT LIKE TO DRIVE?
Auto Express says: ‘The car is very pleasing and relaxing to drive either in town or on the motorway.’
Exactly how a premium SUV should be, only faster. We knew the Q7 was going to be a quick, but going from a standstill to 62mph in 6.5 seconds really is quite something for a car of this size. The Q7 is a big SUV and comfort is superb. It glides over potholes and rough roads. On the motorway, refinement is flawless, although because of its height, there is a fair amount of roll when cornering at speed. One of the most impressive qualities of the Q7, however, is its impressively-small turning circle, thanks to the optional all-wheel steering that means it can turn round in less space than any of its rivals – even tighter than the much smaller Audi A4.
WHAT DO WE THINK? We really like the Audi Q7. It looks a lot better than its predecessor and many of its older rivals. It also offers breathtaking performance stats, along with strong economy in 3.0-litre diesel form. Things only get better on the inside – and then better again when you press the start button and begin driving it. While the Range Rover Sport is still a tough rival, the Q7 is an appealing option and symbolises a huge step in the right direction for the German brand.
TARGET BUYERS: Those who want a touch of style while carting their kids around the village
THE RIVALS: Range Rover Sport, BMW X5, Porsche Cayenne
KEY SELLING POINTS: 1. Its class-leading performance 2. Its luxurious interior 3. Its new mean grille
DEAL CLINCHER: Feeling like a king behind the wheel. CarDealerMag.co.uk | 39
40 | CarDealerMag.co.uk
FORECOURT. INTERIOR
It’s a pleasant place to be – space galore and an uncluttered centre console
THE ENGINE
The 2.4-litre diesel is smooth and refined, meaning little cabin noise during those long stints on the motorway
THE RIDE
Mitsubishi L200
It drives like an SUV – cornering is now surprisingly stable through the corners, a great improvement on the old series
A family SUV or a utility vehicle? Sophie WIlliamson-Stothert takes it for a spin – and comes to the decision it’s a bit of both WHAT IS IT?
WHAT’S THE SPEC LIKE?
Since the first model hit the roads 33 years ago, the L200 has been branded as the truck that is capable of safely transporting the children to school and climbing mountains on the weekend...
Available in four trim levels, bookended with entry-level 4Life and range-topping Barbarian trim, the L200 is crammed with gadgets and safety aids. The 4Life, which is available from £19,749, gets keyless entry and daytime running lights along with air-conditioning, alloy wheels and cruise control, while the Titan adds a stop/start system, a digital radio, tinted windows and larger 17-inch alloys for an additional £1,000. Move up a step (and another £2,300) to Warrior trim and you’ll be spoilt rotten. It receives heated seats, sat-nav, a reversing camera and xenon headlights. Meanwhile, the rangetopping Barbarian model – £23,799 or £25,199 in automatic guise – is crammed with extras such as puddle lamps as well as LED mood lighting and a leather interior.
WHAT’S UNDER THE BONNET? Mitsubishi is offering the new L200 with a new all-aluminium 2.4-litre diesel engine, which is the first in the class to offer variable valve timing, giving it some extra muscle. The lightweight unit, coupled with an overall reduced vehicle weight of 30kg, means the L200 offers 20 per cent greater fuel economy than before. The new powertrain also features a clever new turbocharger, which feeds more power to the wheels at low engine speeds and provides smoother responses at higher engine speeds. It’s mated to a new six-speed manual or a six-speed automatic with paddle shifters – a first for a pick-up.
WHAT’S IT LIKE TO DRIVE? The L200 has been dubbed the utility workhorse for the road, with the
performance of an everyday SUV. It can comfortably cart passengers on long-distance journeys, thanks to its spacious cabin and minimal road noise, but it’s also at home through boggy terrain. It is equally as happy around town as it is in the mud. It even has a reasonably-tight turning circle. It no longer suffers from severe body roll and is notably sharper in the corners.
WHAT DO THE PRESS THINK?
THE KNOWLEDGE Model:
Mitsubishi L200 Series 5 Barbarian Price: £23,799 Engine: 2.4-litre four-cylinder turbodiesel Power: 178bhp, 317Nm Max speed: 111mph 0-60mph: 10.4 seconds MPG (comb’d): 42.8mpg Emissions: 173g/km
TARGET BUYERS: Farmers, builders, people with things to tow... and those with families.
Auto Express says: ‘Levels of refinement, comfort and quality still fall some way below those offered by large SUVs.’
THE RIVALS:
WHAT DO WE THINK?
KEY SELLING POINTS:
Mitsubishi’s aim was to turn its topselling pick-up into a multi-purpose road car. The firm has built on the foundations of its rugged utility vehicle and created a versatile warrior, capable of ploughing through mud or around the M25, while providing a smoother ride. We’d say it’s a winner.
Isuzu D-Max, Ford Ranger, Toyota Hilux
1. There’s plenty of space 2. Great all-wheel-drive system 3. Top safety credentials
DEAL CLINCHER: You get an awful lot of vehicle for your money. CarDealerMag.co.uk | 41
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McLaren Burns Rubber In The 675LT… But You Can’t Have It
£1.5m Lamborghini Doesn’t Even Have A Windscreen
The McLaren 675LT sold out soon after its release, but only now has the British manufacturer seen fit to tease the tasty limited-run model in this sideways video. Visit: sprunl.de/x0ivu
This one-off was created by Lamborghini’s head of design Luc Donckerwolke and inspired by classic single-seat race cars. The audacious split seat ‘spine’ design sure turns heads. Visit: sprunl.de/2u3oc
Driver Punches Motorcyclist, Things Escalate Quickly
Lap Silverstone In 360 Degrees In a Ford Mustang
One angry driver decided to take the law into his own hands and launch an attack on a biker for allegedly filtering past his car. The biker caught the attack on a GoPro. Visit: sprunl.de/y25n2
Sit in the virtual driving seat and lap the infamous track in this interactive video released by Ford Europe. The film is complete with interactive gauges and displays. Visit: sprunl.de/lcoux
We Drive A Car With Our Minds, This Is Not A Joke
Dom Perignon Edition Couldn’t Be Posher If It Tried
SuperUnleaded was invited along to try out MoneySupermarket’s specially-modified electric car at a top-secret location in the Hampshire countryside. Visit: sprunl.de/e60zc
Premium car manufacturer Aston Martin has got together with the equally high-end champagne brand Dom Perignon to create the bespoke Rapide S. Visit: sprunl.de/lktwf
Clarkson, Hammond And May Go To Amazon
Audi Drives Backwards, Confuses Everyone
Clarkson & Co. have shocked the automotive world yet again, and this time is isn’t due to a dodgy comment or an ill-advised punch. The infamous trio are going to Amazon. Visit: sprunl.de/zdfop
Sometimes we can put underwear on backwards, or maybe a T-shirt, but one thing we have never got backwards is a car. One Californian driver drove his CAR backwards. Visit: sprunl.de/97zi0
FORECOURT. THE LOOKS
QUICK AND EFFICIENT
Admit it – the last X1 looked pretty weird. This one is chunky and cool...
60mph in 7.4 seconds, yet it’ll return 57.6mpg – that’s magic on the Harry Potter scale...
THE RIDE
It’s not quite as smooth as a flying carpet – come on, it’s a BMW. But it’s still a very plush experience.
BMW X1
James Baggott jumped into the latest SUV from BMW for a trip in the country – and we got the feeling he liked it. A lot. WHAT IS IT? This is the totally revised BMW X1. Gone are the weird looks of the last model – which managed to clock up 730,000 sales around the world – and in comes a fresh, chunky design that makes it look like a shrink-wrapped X5, but in a good way. One in 10 BMWs sold was an X1 at the height of its success and it was continually in the top three most popular cars sold by the manufacturer, so this new model has a lot to live up to. Aimed at ‘young, sporty’ buyers, the maker believes this is a lifestyle vehicle that can be used every day.
WHAT’S UNDER THE BONNET? There is one petrol engine and three diesel options. The former xDrive20i has 190bhp, 280Nm of torque and can hit 62mph in 7.4 seconds. Emissions are 146g/km and it’ll return 44.8mpg. Diesels come in 18d, 20d and 25d variants. The sDrive18d is front-wheel drive only, the latter two four-wheel drive like the petrol. We’d pick the
£30,630-priced xDrive20d, though. Why? Well, it comes with four-wheel drive, is £6,000 cheaper than the topof-the-range model and still performs well. With 188bhp and 400Nm of torque it will hit 60mph in 7.4 seconds, return 57.6mpg and emits 128g/km.
WHAT’S THE SPEC LIKE? Standard equipment is plentiful. Navigation, DAB radio, 40:20:40 split rear seats (with handy buttons to fold them flat into the boot), alloy wheels and an automatic opening and closing boot that you can operate with a wave of your foot, are all included. As you move up the range, larger alloys, different trims and LED headlights are added, while the M Sport adds a smart styling pack too. On the options list is a heated steering wheel, Harman Kardon speakers and a headup display, plus lots more.
WHAT’S IT LIKE TO DRIVE? Frankly, quite brilliant. For what is essentially a small SUV it belies its
size on the road. Bumps are soaked up beautifully and the ride is plush. The high seating position is commanding, and although the steering feels a little uncommunicative at times, it isn’t off-putting.
WHAT DO THE PRESS THINK?
THE KNOWLEDGE Model: BMW X1 xDrive20d Price: £30,630 Engine: 2.0-litre diesel Power: 188bhp, 400Nm Max speed: 136mph 0-60mph: 7.4 seconds MPG (comb’d): 57.6mpg Emissions: 128g/km
TARGET BUYERS:
Auto Express said: ‘It’s not as sharp as a BMW 3 Series, but still entertaining to drive. And it’s comfortable...’
Younger drives who want to be in something sporty – but still want a bit of room...
WHAT DO WE THINK?
THE RIVALS:
We loved the BMW X1. The last one passed us by somewhat – we felt the looks were strange and out of proportion. This new model is much better, though. The chunky looks make it really stand out on the road – even if it does look like a miniature X5 (but that’s no bad thing) – and the interior is a lovely place to spend time. As you’d expect it feels premium. We’d go as far to say that if you’re looking for a premium SUV with diminutive dimensions, this should be at the top of your shopping list.
Audi Q3, Mercedes GLA, Nissan Qashqai, Kia Sportage
KEY SELLING POINTS:
1. It looks great – it really stands out in a crowd. 2. The cabin – it’s lovely. 3. Great driving position – you’ll feel king of the road.
DEAL CLINCHER: BMW has rediscovered its DNA with this SUV. ‘Nuff said... CarDealerMag.co.uk | 43
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FORECOURT.
Skoda Superb Estate
THE KNOWLEDGE
Superb by name, superb by nature? Dave Brown travelled to Bavaria to try out the new version of Skoda’s flagship estate WHAT IS IT? Estate cars traditionally put space before style, but since 2009, Skoda has managed to combine the two qualities pretty effectively. It certainly looks the part from the outside.
WHAT’S UNDER THE BONNET? The launch range consists of four petrol and three diesel engines with outputs ranging from 118bhp for the entry-level diesel 1.6-litre TDI, to 276bhp for the new 2.0-litre TSI petrol engine. All engines are direct injection, turbocharged units and feature clever technology designed to increase fuel efficiency and control emissions. Switched-on Skoda buyers will know some of the engines from the smaller Octavia, but most
of the units are making their debut here, including the 267bhp 2.0-litre.
WHAT’S THE SPEC LIKE? The Superb Estate is available in five trim levels: S, SE, SE Business, SE L Executive and Laurin & Klement. Even entry-level models are well equipped, featuring alloy wheels, air conditioning, LED rear lights, Bluetooth, a DAB digital radio and a touchscreen infotainment system. The range-topping L&K model adds a touch of opulence, with striking 18inch Pegasus anthracite alloy wheels,
tri-zone climate control, a 10-speaker Canton sound system, ambient lighting and full leather upholstery.
WHAT’S IT LIKE TO DRIVE? We seriously enjoyed driving this car. The car is happy in crowded streets and keen to gobble up as many miles as possible out on the open road.
Model: Skoda Superb Estate 2.0 TDI 150PS 4x4 (as tested) Price: £27,820 Engine: 2.0-litre, four cylinder, petrol, turbocharged Power: 147bhp, 340Nm Max speed: 132mph 0-60mph: 8.9 secs MPG (comb’d): 61.4mpg Emissions: 123g/km
TARGET BUYERS:
Company car drivers, outdoor types, busy families.
THE RIVALS:
WHAT DO THE PRESS THINK?
Ford Mondeo Estate, Mercedes- Benz E-Class.
Auto Express said: ‘The Superb’s price is dangerously close to VW’s Passat, but luckily it’s worth every penny.’
KEY SELLING POINTS:
WHAT DO WE THINK? We were impressed, mightily so. It was the lovely feeling inside the car that did it for us: the light, the visibility and the peaceful ambience.
1. So much space! Huge boot and lots of leg room. 2. Thirty-one ‘Simply Clever’ touches. 3. Four new infotainment systems.
DEAL CLINCHER: Ticks every box in terms of space and style.
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46 | CarDealerMag.co.uk
FORECOURT.
Ford Galaxy
THE KNOWLEDGE
We get the chance to try the latest-generation people carrier – and find it has been sprinkled with Ford’s magic dust... WHAT IS IT?
WHAT’S THE SPEC LIKE?
This all-new third-generation Galaxy is Ford’s largest people carrier, and has been restyled with a new grille and slimmer headlamps. There’s a little more space, a third row of seats, and a cabin chock-full of clever storage cubbies.
The Galaxy is offered in three trim levels: Zetec, Titanium and Titanium X, with even entry-level models being equipped with convenient kit like allround parking sensors, dual-zone air conditioning and Ford’s latest SYNC 2 touchscreen media system. Buyers will also get the brand’s new MyKey technology, which allows owners to programme a second key that will not allow the car to exceed a pre-set speed limit. The mid-range Titanium spec has sat-nav with full European mapping, tinted rear windows,
WHAT’S UNDER THE BONNET? Nearly all Galaxys will be sold with a 2.0-litre turbo diesel, which is available in 118bhp, 148bhp, 178bhp and 207bhp states of tune. Petrol power is provided courtesy of Ford’s latest 1.5-litre and 2.0-litre (from the Focus ST) Ecoboost motors, rated at 158bhp and 237bhp respectively. The 178bhp diesel offers reasonable performance, getting from 0-62mph in 9.8 seconds, and while it’s no fireball, it’s more than adequate.
automatic headlights, keyless entry, cruise control and chrome exterior trim. Titanium X models offer heated front seats, a full-length panoramic sunroof and a reversing camera.
WHAT’S IT LIKE TO DRIVE?
Model:
Ford Galaxy 180PS 2.0 TDCi Titanium Price: £30,795 Engine: 2.0-litre, four-cylinder, turbocharged, diesel Power: 178bhp 400Nm Max speed: 129mph 0-60mph: 9.6 seconds MPG (comb’d): 56.5mpg Emissions: 129g/km
TARGET BUYERS:
Growing families who are not put off by the idea of an SUV.
Ford’s knack of creating family cars that engage keen drivers is legendary, and this magic has not been lost on the new Galaxy.
THE RIVALS:
WHAT DO THE PRESS THINK?
KEY SELLING POINTS:
Motoring Research said: ‘The Galaxy is a brilliantly practical car.’
WHAT DO WE THINK? The new Ford Galaxy is as practical as you could ask for from a family car, and has received a welcome dose of style both inside and out.
Seat Alhambra, Citroen C4 Grand Picasso, VW Touran 1. Hushed interior ambience 2. Clever practicality and attention to detail 3. Enjoyable driving experience
DEAL CLINCHER: The practicality of a people carrier combined with the quality and tech of an executive saloon.
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Call us on 01234 240503 www.autotechrecruit.co.uk CarDealerMag.co.uk | 47
FEATURE. PEUGEOT SPECIAL: THE ICONIC 205
Celebrating an Icon
Neil Moscrop is Peugeot UK’s brand director and has been with them for 36 years. Here he tells JAMES BAGGOTT why the 205 GTI was such an iconic car
I
remember the first time I saw a 205. I was a material control analyst back then and as part of the launch the company took the car on a tour for its employees to see. It arrived on a transporter and everyone in the Birmingham parts centre
48 | CarDealerMag.co.uk
where I was working gathered to see it. There was just a collective ‘wow’ – you could tell then it was a special car. The GTI hadn’t even launched back then but you could just tell it had the right proportions. It just looked right. Peugeot has always had a motorsport history, so when the GTI arrived I knew it would be good. I think it was the first production car to really use that motorsport expertise. For me there were three reasons why it was so iconic. The first was its looks – it didn’t need massive wide wheels or blingy spoilers or anything like that, it looked perfect as it was. Then there was its success on the rally stages. We won the World Rally Championship with the car and the Paris-Dakar.
And thirdly there was the 1.9. The 1.6-litre started it all but the 1.9 made it iconic. You felt like a racing driver whenever you drove one. I remember my first time. I drove it about 30 miles – 30 miles of mad, stupid fun and my neck ached by the time I parked up. It was like driving a go-kart – so much fun. We could tell straight away that we had something very special on our hands. It was an instant success in terms of sales – at one point, one in four of all 205s we sold was a GTI. Back then we would wholesale our cars to dealers and they always wanted as many GTIs as we could get. For every one we built there was a customer lined up and ready to buy. What is also worth noting
“
We could tell straight away that we had something very special on our hands. It was an instant success in terms of sales. was the GTI’s strength in fleet, too. You instantly think GTI meant retail but it was a very strong car in the leasing market as well. I was a field sales manager and worked in the central region by the time the GTI arrived. I was responsible for about 100 dealers and would have to fight with the factory every month to get as many 205 GTIs as I could. Back then it was quite simple: if we had enough GTIs we would hit our sales targets. What made the 205 so special
Neil Moscrop
for me, though, was its looks. It was a pretty car. And not only that but it was blooming quick, too. We sold it at the right price, with the right specification and in the right colours. I always loved laser green and Miami blue. The 205 has certainly been a tough act to follow. Yes, we have had other GTIs, but I don’t think they’ve been quite at the iconic level of the 205 GTI. The market has changed – those sorts of cars just don’t have the kind of following they used to. You couldn’t
launch a GTI now and expect it to make up 25 per cent of that model’s sales. You’d be doing very well if that figure was 10 per cent these days. The 308 GTI we’re launching now is expected to account for five per cent of sales – that’s some change, isn’t it? My lasting memory of the 205 will be standing in Sutton Park and watching the 205 T16 belting around winning the World Rally Championship. It was simply the right car at the right time and its success in motorsport highlighted that. I will never forget picking up my first – a grey 1.6. I could not wait to get into it and take it out for a drive – and make my neck ache all over again. CarDealerMag.co.uk | 49
FEATURE. PEUGEOT SPECIAL: THE NEW 208 The intrepid Car Dealer team journey forth on their mission to visit the longest-established Peugeot dealers in Wales, England and Scotland. What could possibly go wrong?
“
I find the easiest way to sell the 208 is to get the customer behind the wheel. Once they’ve driven it, they love it.
Isaac Siddiq, 26, is the youngest salesman at the best-selling Peugeot dealer in the country. Here he gives his take on the new 208 GTI
I
’m the youngest salesman working at Robins & Day in Coventry and have been here nearly three and a half years. I haven’t got a background selling cars – this was my first job in the motor trade and I absolutely love it. The 205 GTI doesn’t really mean much to me – it’s a car from the past, but I do sort of remember my uncle having one in the early ’90s. I certainly know it was a car that stood for speed and performance. The customers buying the 208 are a varied bunch – it’s anyone and everyone, really. But the
50 | CarDealerMag.co.uk
majority I have sold cars to are 205 enthusiasts who have had a GTI in the past and the new 208 has brought back memories of that for them. People certainly make the connection between the two cars. The performance of the 208 is strong and the reviews it has had have been great. This has helped. But overall the car really takes customers back to the strong heritage of the 205 – they come in a little misty-eyed and wanting to relive their youth. About 70 per cent of the buyers know of the 205 and its history. I’ve never driven a 205, but even if I didn’t work for Peugeot I’d consider buying a 208 GTI. It does 0-60mph in 6.3 seconds, it has the right styling, a nice interior with the red and black leather and it’s great to drive. I love the smaller steering wheel that makes it feel like a rally car. I find the easiest way to sell the 208 is to get the customer
behind the wheel. Once they’ve driven it, they love it – it takes them back to their 20s and the days they enjoyed their 205. Most customers have looked at a Ford Fiesta ST or a Renaultsport Clio, but the attraction of reliving their youth is always a strong draw. The 208 GTI has a halo effect on the whole range. It becomes aspirational and brings people into the market who perhaps wouldn’t consider Peugeot before. They might not necessarily buy a GTI but seeing them on the road, seeing them in the dealership helps bring them into Peugeot. There’s no doubt the 205 was a great car but we’re obviously moving to the future and the latest technology now. The 205’s heritage stands behind the 208, but we’re trying to sell the next generation of cars now. That’s what’s important. Isaac Siddiq
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FEATURE. PEUGEOT SPECIAL: OLD v NEW We’re having fun playing the numbers game, looking at the iconic 205GTI and the ultra-modern, sporty-looking, bang-up-to-date 208GTI
THE KNOWLEDGE
205GTI Model: Peugeot 205 GTI 1.9 Price: £8,445 Engine: 1.9 130bhp (1986-1992) Power: 130bhp, 161Nm Max speed: 127mph 0-60mph: 7.8s MPG: 31 Emissions: No records
THE RIVALS: Golf GTi, Vauxhall Nova SRI, Renault 5 GT Turbo
5.3m
The 205 is credited as the car that turned Peugeot’s fortunes around, selling 5.3m in the 17 years that it was on sale around the world
330,000 Of that 5.3m, a staggering 330,000 were GTIs – but not even Peugeot knows how many were the 1.9 version you see here
KEY SELLING POINTS 1. Performance 2. Drive 3. Handling
’80s
Sales of the 205 GTI soared in the ’80s, but rising insurance premiums in the early ’90s as joyriders targeted the car hit the model badly
52 | CarDealerMag.co.uk
61,500 In the UK, 61,500 Peugeot 205 GTIs found homes in the 14 years that it was on sale
1983
The 205 was launched on February 24, 1983 and was pipped to the post of European Car of the Year by the Fiat Uno. The Peugeot was the car that eventually went on to enjoy the bigger success, though
Model:
30
30 years after the original GTI arrived, Peugeot unveiled this special edition 208 GTI at the 2014 Goodwood Festival of Speed
208
Peugeot worked hard to give the 208 some of the driving thrills that were so loved in the 205 GTI – and it’s sort of worked. It’s certainly good fun to drive
Peugeot 208 GTI 30th Anniversary Edition Price: £21,995 Engine: 1.6-litre, turbo Power: 208bhp, 300Nm Max speed: 142mph 0-60mph: 6.3s MPG: 43 Emissions: 125g/km
THE KNOWLEDGE
208GTI THE RIVALS: Ford Fiesta ST, Citroen DS3R, RenaultSport Clio 200
KEY SELLING POINTS 1. Harks back to an icon 2. Good residual values 3. Sporty looks
10,000 400
In the first year of launch, Peugeot managed to sell 10,000 208 GTIs across the world – 1,200 of them in the UK
All 30th anniversary editions of the 208 GTI have individually numbered plates – in total, 400 will be built, with 100 for the UK
6
The 1.6-litre engine is smaller than the original but still more powerful thanks to a turbo – it will accelerate from 50-70mph in fifth in six seconds dead CarDealerMag.co.uk | 53
FEATURE. PEUGEOT SPECIAL: THE DRIVE TO SCOTLAND To celebrate the iconic Peugeot 205 GTI, James Baggott, Harry Boucher and snapper Jon Fleetwood headed out across the UK, but their early optimism was short-lived . . .
THE PLAN
What could go wrong? 1. Drive our Peugeot 205 GTI to the longest-established dealers in England, Scotland and Wales 2. Don’t break down 3. Camp along the way 4. Try not to fail at any of the above
Total distance: 825 miles
SCOTLAND
Campbeltown
Hinckley WALES ENGLAND
Llanelli Car Dealer HQ 54 | CarDealerMag.co.uk
“
After being amazed by the workmen on the roads leaving Wales who, unlike their English cousins, actually work, we were back in Blighty James Baggott: Like all grand Car Dealer plans it started because we needed an excuse to get out of the office. Thrown together in an afternoon of boredom, our elaborate road trip would (hopefully) see us drive to the oldest Peugeot dealers in England, Scotland and Wales in my J-reg 205 GTI 1.9. We wanted to celebrate the legendary hot hatch with an epic trip, and because we fancied really punishing ourselves we thought we’d camp around the country as we went. What could go wrong? Well, a lot, as it transpired... I’d be sharing the trip with the latest Car Dealer recruit, hayfever-prone Harry ‘My Face Won’t Stop Leaking’ Boucher, and shutter-presser extraordinaire Jon Fleetwood. Cars packed, we hit the road. Here’s how we got on.
Harry Boucher: What a lovely welcome to the mag that is, thanks. In a moment of madness, James shrugged off the idea of Premier Inns and went for tents. Luckily, our friends at Halfords kitted us out with airbeds, a barbecue and other handy camping gear that I’d never seen, let alone used, before. Squeezed into the back of our classic GTI and Car Dealer’s trusty Volvo XC40, we set off on a route that would see us cross the bridge to Llanelli in Wales, back into Blighty with a stop at Hinckley and then a monster drive to Campbeltown in Scotland. Easy peasy. JB: I like your confidence, Hazza, but as we’d be driving my GTI all of 1,500 miles, a car that’s seen about as much action as a nunnery over the
past two years, I was a little pessimistic to say the least. I dropped the car off at our tame mechanic in Portsmouth to give it the once-over and picked it up the day before we left. He’d replaced the radiator, the exhaust manifold and sorted the weird idling problem that made it cough like a 40-a-day smoker, so heading off towards Wales I was less worried than usual. And I like a good worry. I worried about that nearly as much as the lack of a working radio and having to talk to you for three straight days... HB: Luckily there was plenty to talk about, and by talk, I mean moan. It was the hottest day of the year so far – stupidly hot, with highs of 35 degrees – and with no air conditioning I think we both did more than our fair share of swears. With arms hanging out of the window like a pair of truckers
and looking like two drowned rats, we arrived at the Welsh dealer, where we prayed there would be a human-sized freezer we could jump in. JB: Human freezer there wasn’t. Salesman with a shedload of experience there was. We arrived at HJ Phillips & Son around midmorning. Yes, the journey there had been a tad moist, but we styled it out and had a great chat with general manager Mike Evans. Evans has been working at the family-run business – which opened in 1947 – for 26 years and absolutely loved selling 205 GTIs. ‘We didn’t have to sell them,’ he told me. ‘They sold themselves. We just took orders.’ After some Fleetwood photo action we hit the road again, this time a cross-country jaunt to the oldest Peugeot dealership in England.
HB: After being amazed by the workmen on the roads leaving Wales who, unlike their English cousins, actually work, we were back in Blighty and after a pleasant (but sweaty) cruise reached Research Garage in Hinckley. Situated behind a petrol station, this Peugeot dealer had plenty of cars glistening in the Midlands Sahara sunshine outside and a large service centre behind which, as you will find out, was a life-saver. Before I had even left the car, the boss man was inside and raring to interview… JB: I don’t hang about, son. You were probably too busy plugging your nose with yet more Kleenex. Inside the air-conditioned gloriousness of the dealership I sat and chatted to Ian Rawson-Mackenzie, the MD and grandson of the business’s founder CarDealerMag.co.uk | 55
FEATURE. PEUGEOT SPECIAL: THE DRIVE TO SCOTLAND
WALES
MIKE EVANS GENERAL MANAGER HJ Phillips & Son was established in 1947. It is the oldest Peugeot dealer in Wales and is now run by the third generation of the same family NOTHING has sold as well as the 205 – we really didn’t have to sell it back then, we simply took orders. Both the 1.6 and 1.9 were extremely popular, and I don’t know whether times have changed now but nothing has had the impact the 205 did. I think it was a joint venture between styling and performance that really made it. The styling was great and the 1.9 was just wrong, but in a good way. Selling the 208 GTI these days is just completely different. Back in the 205 days, people wanted performance over refinement and luxury. Now the manufacturer has totally changed to focus on safety. The 208 GTI is a quick car but it doesn’t give you the same feel because it is more refined. It has changed. We were so busy when we were selling the 205 GTI. We’d have people queuing up most days of the week. Customers would sell their 1.6 to buy a 1.9 and immediately we’d have a buyer lined up for the 1.6 he’d part-exchanged. They never stayed on the forecourt long. I’ve been with Peugeot for 26 years and have seen some changes. When you’ve been with a brand for so long you do feel sad when you get nostalgic about the heydays. We certainly don’t sell GTIs like we used to – we’d be lucky to do three in a year now, whereas you might have done three in a week back then. That’s the difference.
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We really didn’t have to sell it back then, we simply took orders. 56 | CarDealerMag.co.uk
Maybe Baggott had a premonition in Wales and was texting to see what he’d get for scrap for his 205. who set up in 1950, moving to the current site in 1972. Ian took over from his father in 2013, becoming the third generation of his family to run the business and remembers the 205 well. He had three as company cars and said he used to take lots of Ford XR models in part-exchange from buyers looking for the next hot hatch. After shooting the breeze for half an hour, I popped back outside to find Fleetwood and Harry blocking the petrol station forecourt with my 205 for a few snaps. Portraits captured, we headed off in search of our campsite and beer. In that order, obviously. HB: Everything was perfect, other than James’s horrific trucker tan. We had blasted through two countries, two dealers and Baggott was about to get the beers in. With a fist-pump and turn of the
key, we were back on the road. Slight problem, though, the windows weren’t working. Not one bit. To begin with, I laughed – there was no doubt in my mind this was an elaborate Baggott prank. It wasn’t. They weren’t working and we were stuck in the Sauna 205 GTI Of Death. Thankfully, we were a stone’s throw away from a recentlyvisited dealer, which thankfully had a wonderful man called Narindar Jusar around the back, to whom we now owe our lives. With the switch of a fuse and a few cable ties we were back in action, vowing never to put the windows up again. JB: I was surprised we made it back from the Tesco Express to the garage alive, to be fair. If it wasn’t for those cool Coronas pressed against our brows, we’d have surely shrivelled up and wilted in the 200 metres it took us to get back.
ENGLAND
Baggott remembers he’s a journalist at heart in Wales – although some find his questions funny...
IAN DAWSON MACKENZIE MANAGING DIRECTOR Research Garage was formerly based near MIRA on the A5 (hence the name) and is run by the third generation of the same family. It was set up in the 1950s and is the oldest dealer in England.
Lots of smiles, interesting chats, nice cars, little tents and over-cooked food was the order of the day Thankfully, the 205 is from an era you can fix with some plastic and a hammer (sort of) and boy were we glad those leccy windows were working again. Next up on the Challenge Car Dealer Tour Of Great Britain And Its Assortment Of Peugeot Dealers Trip was some tenting. Oh, and cooking some food with fire. Fortunately, some of us were more skilled at these tasks than others... HB: I admit, camping is not something I can shout about on my CV. If I’m honest, I am dreadful at it. Unlike James, who had camped across Argentina, and our snapper Fleetwood, who has done camping road trips before (in a Peppa Pig tent). I was absolutely pathetic. It wasn’t long before I was getting laughed at on Twitter because my tent was saggy and my airbed didn’t fit in. I was frustrated to say the least and
only a well-cooked barbecue could cheer me up. Sadly, well-cooked in Baggott’s dictionary meant charcoaled. Luckily, my friend Desperado was on hand to ease the pain… JB: Charcoaled? That, my friend, was fire patina – something any classic barbecue food should never be without. It was about this point I realised I bought one-man tents only suitable for small humans the size of our editor. Normalsized beings, like me, faced a night with their feet touching one end and their head creating a grassy knoll-shaped mound in the door. Comfy, it wasn’t. Fortunately. a heady cocktail of burnt pig and alcohol put me into a coma. The next thing I knew it was 8am and Fleetwood had already packed his canvas away and was shouting at us about getting going.
I STARTED out in the parts department but was selling cars by the time the first 205 GTIs arrived – and I was sure glad I was. I remember one of the first ones we sold was to a lady and she had no idea what she had bought. She liked the look of it and she was an older lady in her 70s and she just had no idea at all. When the 205 GTIs were launched they were very hard to get hold of. I think we got about six in the first year. But sales took off almost immediately – and that was across the 205 range – and the diesel sold particularly well. The GTI wasn’t particularly hard to sell at all. Obviously a certain type of individual was interested in these high-performance cars. At that time it was all about the XR2 and XR3 and we’d take some of those in part-exchange. For us Peugeot dealers it was really bizarre because we were used to an older clientele, the more old-fashioned style, and then we had all these young people looking for highperformance cars – it was a big change for Peugeot at the time. The 205 was so special because it had style, the right design and great performance. If you look at things now, Peugeot has never rekindled that. The 208 GTI is good – it sells well thanks to good residual values – but it isn’t the sensation the 205 was.
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The 205 was so special because it had style... and great performance. CarDealerMag.co.uk | 57
FEATURE. PEUGEOT SPECIAL: THE DRIVE TO SCOTLAND
Hazza and Baggott contemplate having to suffer Fleetwood’s driving, while even a patrol man plus Car Dealer lanyard couldn’t help. And Baggo was hungry. Again.
HB: After treating myself to a sit-down shower (I was very tired) all the tents were packed away (some better than others) and we were off. The GTI wasn’t happy, though, and took a few revs to get going. But get going it did and five minutes later we were in the nearest McDonald’s. On route, the Pug decided to cut out a few times, raising a few questions. But we were certain it just needed warming up. Parked up, we entered the promised land where Baggott ordered two big breakfasts and doubled his blood pressure. With Fleetwood badgering us about time (again), we finally hit the road to Scotland. JB: Didn’t last long, though, did it? Those idling issues, first dismissed as morning gremlins, soon reared their head again, this time at 70mph (honest) in the fast lane of the M6. With the throttle pinned the engine idled but didn’t rev. I changed down a gear, thinking that would do something, but it didn’t. We were losing speed fast, but as quickly as it started, it disappeared. At the tollbooths she fluffed and stopped again. This time the first turn of the key didn’t do anything. Eek! But after some stroking of the steering wheel 58 | CarDealerMag.co.uk
and praying, she fired up and we continued, blissfully ignoring what had just happened. HB: We felt sure our bad luck was done for the day. The GTI had given us a scare but we had faith it would soldier on. Our trust was misplaced, though, as after 30 miles we lost all power and had to go about cutting across three lanes of traffic to the hard shoulder. Our stars aligned and somehow we made it. Baggott twisted the key many, many times, but there was no response. There was only one option – ring James’s mechanic, Matt. I don’t know what was said or done, but after five minutes of under-the-bonnet fiddling the black beauty was up and running again, and with a deep breath we catapulted into the slow lane. We were back in action. JB: That fiddling was essentially me poking things. There was definitely some metal under there. And some rubber. I have literally no idea what any of it did, but Matt seemed to think it was a fuel issue. I knew there was some in it as I’d spilled quite a lot on my flip-flops only a few miles ago, so it must have been something more
worrying deep in the bowels of the Pug. Still, when it fired up we carried on regardless. Then it happened again. And then around Preston completely conked out for good. ‘Hello, is that the AA?’ HB: As a Somerset boy, I had never been this far north, so as I was sat at the side of the M6 alongside the marooned GTI, the sight of a white van man beeping his horn and flicking the bird at us came as somewhat of a shock. No fear, though, it was a short stay, and a low loader soon picked us up and took us somewhere safe to fix the car. But fix it he did not. After making James pop the bonnet, fake AA man made him keep trying to turn the car over while spraying some form of Lynx deodorant at the engine. Shockingly, this did absolutely nothing, so we sacked him and called a proper AA man. He arrived two hours later in a yellow van full of magic tools. We hoped they were magic, anyway, because we were slowly losing the will to live. JB: After we’d got shot of the most useless recovery man ever, AA patrolman Dan Johnson
SCOTLAND
GRAEME McMURCHY DEALER PRINCIPAL Campbeltown Motor Company was set up in 1971 and is the oldest dealership in Scotland
Nice, shiny Peugeots and a nice, shiny dealership. Scotland is nice. Very nice. Apart from the bugs... was a welcome sight. He quickly had the wired innards of my 205 sprawled across the interior like a bloody scene from Braveheart. He assured me this sort of French wiring was entirely normal and soon(ish) had discovered that the fault lay with the fuel pump relay. However, there wasn’t one of these in the country. I believed him because, to be fair, if he’d told me the car had run out of chocolate chilli beans and had a drip from the banana flange I’d have believed him. There was only one solution – wave goodbye to the Peugeot and finish the rest of the trip in our snapper’s back-up car. Sad face. HB: This meant that all our gear from the Peugeot, plus two extra bodies, had to squeeze into the Volvo XC40. Luckily, we had a photographer who clearly has every medal or certificate (I don’t know what you get) from the
Scouts and he packed it all in with ease. Although we were comfortable, we were absolutely heartbroken about the little Pug dying. But like the champions we are, we were not defeated and set off to Scotland to find a campsite and some haggis. Unluckily for me, I was in the back with all the gear and our photographer decided he was a poor man’s Lewis Hamilton and drove like a complete pillock, leaving me feeling slightly sick. JB: I definitely think you could describe Fleetwood’s antics behind the wheel as ‘spirited’. Fortunately, we made it to the campsite alive, albeit with Harry buried under three tents, a camping chair and a pair of his own smelly socks. Our overnight spot was on the coast in stunning Ayr. So beautiful was the location, the entire world’s population of flying bugs had decided to take a holiday there
BASED where we are, the secret to our success is about being part of the community. We have something like 70 per cent repeat customers – I’ll see someone in the supermarket and know it’s about time they changed their car and will mention it in passing. Two days later they’ll be in the showroom! I think the secret is the fact we are who we are and don’t try to be somebody we’re not. I think people in Campbeltown respect that. That’s why we’ve been going so long. I remember the 205 well. My dad was running the showroom then and he used to run me to school in them while playing Bryan Adams on the tape deck with the windows down. My brother – who now runs the workshop – had six of them. The adverts they pulled out for these cars were second to none – they were just a different class altogether. In my mind, the 205 GTI made Peugeot what it is today. The brand has changed now. I would say it went through a dip when there were too many French getting involved and they really thought they were doing the right thing, but it brought the brand down. But now, over the past four years, I think since the 208 came out the brand’s really kicked into gear and it’s managed to stabilise itself and brought out some fantastic cars. The future looks even better.
“
My brother – who now runs the workshop – had six of them. CarDealerMag.co.uk | 59
FEATURE. PEUGEOT SPECIAL: THE DRIVE TO SCOTLAND CAMPING GEAR Before we took off we sought some advice from the lovely people at Halfords.com on exactly what we’d need for a few nights on the open road. We also spoke to the Camping and Caravanning Club to help us find a place to stay. Go Outdoors Vango Nyx 200 2-Person Tent £49.99 Simple to set up, spacious and comfortable, the Nyx is a great starter tent for those on their first camping trip. It’s waterproof and, although a little snug even for one, managed to swallow our kit and a full-sized air bed. Taller campers might find their feet touch the end and their head touches the door, though. LED Capsule Tent Lights £7 You’ll want to see what you’re doing when the sun goes down, so you need a decent night light. These hook on to a strap at the top of the tent and, using LED technology, last much longer than normal, bulb-based torches. Competitively priced, too. Mummy-Style Sleeping Bags £10 Perfect for summer sleeping, this single-layer bag kept us warm enough during the balmy nights we were on the road. They have a comfortable polycotton lining that kept us snug but not clammy. Mains & 12V Electric Pump £15 An absolute must if you’re taking air beds with you.
Powered by your car’s cigarette lighter socket, this pump works quickly to blow up a camp bed. It was powerful enough to have the inflatable solid enough for a good night’s sleep in around a minute.
Unbelievably good value for money, it folds away into a handy carry case for easy storage in the boot.
Vacanza by Outwell Folding Barbeque £20 If you’re sleeping outdoors, chances are you’ll want to cook something with fire too. This fold-up barbecue is perfect for road trips, as it folds down completely flat for easy storage. It pops up in seconds, has a decent cooking space and is easy to clean.
40-Litre Mains and 12v Electric Coolbox £80 This might seem a bit pricey but you’ll want to keep your meat fresh, your milk cold and your beers cool. We added some ice to get it really cool, and while the car is running, the motor uses your 12v socket to keep things cool. It was large enough for food and drink and worked perfectly, even in soaring 35-degree temperatures.
Folding Picnic Table £20 Working in perfect tandem with the barbecue was this folding picnic table. It was easy to put up and a great place to eat. With four seats, it can be a bit snug for adults, but as an alternative to eating food off your laps – or worse, the ground – it is brilliant.
Complete Cookset Pack £20 This pack comes with a gas stove and saucepans, cooking utensils, plastic food containers and a carry bag for easy transportation. It has essentially all you’ll need to get cooking on the fly. The handy bag makes it easy to pack away and slip into the boot, too.
Contacts: Gooutdoors.com, Halfords.com, Campingandcaravanningclub.co.uk
too. We didn’t need dinner, such was the levels of flying grubs we all consumed merely while talking. After a damp night under canvas, we woke stupidly early (thanks, Fleetwood) to make the trip to Campbeltown, located in what can only be described as Scotland’s cul-de-sac. HB: With my stomach full of last night’s lamb chops, the long and winding road to Campbeltown made me feel a little pukey. Obviously, our snapper was driving again. No coincidence. After 175 long miles, we arrived hoping that this dealer had a shedload of Peugeots and some sucky sweets for the 175-mile journey back to where we started the day. JB: Driving through the western isles may have made us feel a bit sick, but boy was it stunning. Even the cows were climbing the hills to get a better view of the breathtaking coastline. Harry wasn’t so impressed: ‘Roundabout is the absolute worst kind of art,’ he blurted out as we approached, you guessed it, a roundabout, sporting what I will admit was a rather weird 60 | CarDealerMag.co.uk
informed how Graeme once saved someone from drowning while serving as lifeboat crew and that he had a few medals for it, making me feel even more pathetic than usual.
Baggott and Hazza pose with two special cars sculpture. He was soon cheered up, though: ‘There’s something about tartan that makes me really horny.’ As Fleetwood checked he hadn’t put on his tartan boxers, Harry and I admired the lovely 205 GTI that Campbeltown Motor Company boss Graeme McMurchy had arranged for our photos outside his showroom. Alongside it was his nephew’s 208 GTI – it was like he knew we were coming. HB: Obviously he did. After I’d gazed at their 205 GTI from every angle, James emerged with Graeme and admired it himself. I was then
JB: Chatting to Graeme was very humbling. The family-run site seemed a very happy place, and as he explained how a business meeting at Peugeot’s head office in Coventry involved a three-day round trip, it was clear his dedication to the brand was unwavering. The fact he’d brought together the cars outside for a finish-line photo was a fitting end to a fantastic road trip and made up nicely for the fact we’d left my GTI in the hands of the AA recovery men. As we waved goodbye to Graeme and his team, who’d lined up outside for a group photo – and contemplated the 500-odd miles home – I couldn’t help but think about the passionate family firms that help make Peugeot great. Yes, times may have changed for those dealers since the heady highs of 205 sales, but with such passionate and dedicated families behind the brand’s dealers, there’s no reason its future could be anything other than bright. [CD]
CUT OUT THE WARRANTY
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CarDealerMag.co.uk | 61
FOCUS ON.
Warranties
They’ve really got it covered! Meet the warranty experts
Boost your bottom line – and provide a valuable service to your customers at the same time.
T
he moment of truth. It’s a phrase we heard time and time again as editor Colin and I prepared the feature that appears on the following pages. And for anyone with a warranty attached to their vehicle, the moment of truth is, of course, when that person needs to make a claim. At that point, a snazzy website, eye-catching point-of-sale material and pristine paperwork count for nothing. Will the warranty provider actually pay out? Of course, it would be easy to take the customer’s side and say that payment of claims should always be hassle-free, prompt and handled without quibbling. But taking a slightly more realistic approach, we know that not all claims can be successful. Some will be for parts not covered, some will be for components so old it’s a miracle they are still functioning at all, and some will be simply
by DAVE BROWN @CarDealerDave
vexatious. Customers trying it on, in other words. And, after all, warranty companies are in business to make a living, as are car dealers hoping to earn a few extra pounds on the sale of their cars and boost their bottom line. Returning to the theme of not entirely honest customers for a moment (and we’ve been told on more than one occasion that ‘buyers are liars’), it’s important to note, of course, that even the most troublesome punters need to be handled with care. We all know the damage that can be done to a company’s reputation if even a couple of people become annoyed and take to social media to vent their frustrations. If a claim is paid, the customer will, of course,
be happy. If a claim is refused, then they will be disgruntled, but at least if they have been supplied with a clear explanation of the reasons behind the decision, and treated with courtesy and respect, they hopefully won’t be inclined to complain too bitterly. Whatever the situations you encounter with your customers, you can be sure they will be looked after by the companies mentioned on the pages that follow. If you currently work with a warranty company, you might well find them featured. And if you don’t, we suggest you make yourself a cup of coffee and find out what they have to say. It’s our most comprehensive suppliers feature for many months and we’re sure you’ll find it valuable.
FEATURED SUPPLIERS Warrantywise Bluechip
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A high level of claims payouts and even a profit share scheme from a firm with a level-headed approach.
More and more franchised dealers are choosing to adopt the ‘Safe and Sound’ scheme.
Work with great people, products and technology – and put a renewed focus on extended warranties.
Why dealers have to think beyond a simple warranty proposition and offer a more comprehensive safety net.
Driver Options is a great solution to help motor dealers run their own warranties legally with maximum profit.
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62 | CarDealerMag.co.uk
Plus: Your useful at-a-glance guide to warranty providers P76
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CarDealerMag.co.uk | 63
FOCUS ON.
Warranties
High levels of cover and great WARRANTYWISE
W: wisedealer.co.uk T: 0800 001 4552
I
t’s always good to hear of a business that’s going from strength to strength, delivering excellent products and topclass customer service as it does so. Warrantywise is a company that definitely falls into this category, with the level of inquiries up a staggering 70 per cent year-on-year and the pay roll at the business having trebled in size in the past 24 months. Car Dealer recently caught up with Clare Speight, dealer sales supervisor, who told us: ‘We really are finding that, at the moment, we’ve got a huge demand from dealers for our warranty products. ‘We certainly seem to have hit a sweet spot lately and I think the reasons for our success are actually fairly straightforward. Dealers are looking for a good-quality product that actually does what it’s supposed to do, which is provide a service for their customers and actually pay out. ‘It’s really exciting at the moment and the number of new staff that we’re taking on is helping to build momentum.’ There are a number of factors that make Warrantywise the ideal business partner for your dealership. The company has an authorised payout ratio of 94 per cent, with details of all claims paid published on the company’s website. It is well-known for having a notable celebrity as its figurehead – the motoring journalist Quentin Willson. And the warranties available can be tailor-made to suit the requirements of a particular customer. Speight explained: ‘We offer five different levels of cover so the dealers can tailor-make it to the specific vehicle that they’re selling. If they have a newer vehicle or a high-performance vehicle and they want a top, top level of cover, then that’s available. We can offer cover that is the equivalent of a manufacturer warranty. ‘But then we’ve got the other side of things, so if someone has a car that’s a little bit older, we can supply an appropriate warranty for that vehicle too. ‘That’s the beauty of our system and the way it works. It’s all very vehicle-specific. You put in exactly what you want for that car, exactly what cover you would like and what optional extras you need, the labour rate you want, and you literally tailor-make every single warranty.’ All of the above can be specified via 64 | CarDealerMag.co.uk
‘‘
Dealers are looking for a good-quality product that actually does what it’s supposed to do, which is provide a service for their customers and actually pay out. Warrantywise’s impressive new Dealernet system, which is quick and easy for dealers to use. All quotes, bookings, payments, point-of-sale orders and admin is done on the online system, making the whole process hassle-free from beginning to end. One interesting development that
Warrantywise has noticed this year is that a lot of prestigious, high-end dealerships are getting in touch with the company. But the evergrowing team are more than happy to work with dealerships of all shapes and sizes. ‘We find that prestigious dealers who are selling high-end cars, for example, deliver a
customer service
FABULOUS FEEDBACK EVER had a poor meal or hotel stay somewhere and gone online to complain about it? If you have, you certainly won’t be alone. But it’s not just dodgy restaurants and poor places to stay that get flak on the internet. Any company with links to the motor trade is fair game for keyboard warriors with an axe to grind. But Warrantywise have no concerns in this area. On Revoo, Warrantywise has 94 per cent positive customer feedback with an overall score of 4.6 out of five. And on Feefo, the company is a Gold Award holder, with 95 per cent positive feedback for the past 12 months. With so many happy dealers and customers on board, perhaps it’s time you talked to Warrantywise.
Quentin Willson is far from being merely a celebrity figurehead – he is very much the ‘go-to guy’ for Warrantywise and its customers
lot of return customers, so to them, customer service is key. This is why they like to offer them a high-quality level of cover like ours,’ Speight explained. ‘Their customers will buy a car from them but they know they are only going to keep that car for two years – they are going to return it to the dealership after that fairly short period of time. They are constantly booking one of our warranties and that’s because of the great service they are getting.’ Regular readers of Car Dealer might remember we featured Warrantywise in a recent issue. And although there have been a number of interesting developments in the intervening weeks, many things have stayed the same. ‘We offer a level of service that no-one else does,’ said Speight. ‘We call all dealers’ customers to make sure they are 100 per cent happy with the level of cover provided and ensure they are aware of all
the benefits available to them.’ Another key benefit of working with Warrantywise is that there’s always someone ready to talk to you. ‘Dealers can have confidence booking with Warrantywise for their customers because they know we will be dealing direct with their regional account manager. We cut out the middle men as we don’t have any reps on the road.’ The company has been doing a lot of marketing work in recent weeks, we were told during our conversation. Speight told us: ‘We’re doing a mail shot soon which will focus on ‘‘meeting the team’’. Because we do everything either online or over the phone, we though it might be nice to give that personal touch to our dealers. As you would expect, we do build up really good relationships with our dealers, but it’s not always possible to put a face to a name. We’re focusing on marketing a lot,
and that is undoubtedly helping us make good progress with the business at the moment.’ Another interesting development in the pipeline is the launch of Warrantywise’s new corporate division. This is an arm of the business that will be targeting large, franchised dealer groups that might have up to 30 different outlets. Motorhomes, caravans and motorbikes are coming in for attention too, all helping to drive the business forward. But what about Quentin? Does he actually play an active role in the company or is he just a figurehead for advertising and marketing purposes? ‘No, Quentin Willson is very much the go-to guy,’ Speight told us. ‘If ever there is an issue, people can email him directly and he will always make the final decision. ‘Most of the time, things don’t go that far and we do, of course, try to resolve all issues as expediently as we can but he plays a big part in the business, especially when it comes to thinking of new ideas and things like that. ‘The customers like him and he’s done a lot for the motor trade. Because they like and trust him, they like and trust the product, and that’s what we’re aiming for.’ by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 65
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Transparency and fairness are BLUECHIP WARRANTY
W: bluechipwarranty.co.uk T: 01379 773330
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We try to be as fair as we can, and judge whether, in our expert opinion, the item has failed due to premature wear and tear – or if it has merely worn out and reached the end of its normal working life. 66 | CarDealerMag.co.uk
t’s a line that’s been repeated over and over again in car dealerships and workshops across the UK – ‘this warranty is not worth the paper it’s written on’. In some cases, that statement might be true, but we can guarantee that you’ll never hear it said about a policy from Bluechip Warranty. A relatively new arrival, the company is aiming to do things a little differently, and introduce a level of transparency and fairness that sometimes seems to be lacking. Although only operational since November, the business is already flying high, Car Dealer discovered during a chat with owner and founder Jeff Kohn. Kohn and his team, all professionals from the used vehicle warranty industry, have a combined experience of some 50 years in this specialist field. And as such, they know that product transparency, dealer support and end user customer service are key. If you are a small to medium-sized independent used car dealer, the company is confident that the choices they have created will appeal to you and boost the profitability of your firm. As we’ve said, transparency and fairness are two of the key watchwords for the Norfolk-based business, with honesty and integrity crucial to the team’s approach too. Kohn is a seasoned motor trade professional. Now 48, he has been involved in the motor trade since leaving school at 16 and when we chatted to him, it was clear that he knows the industry – and the world of warranties in particular – inside out. And as for the ‘not worth the paper’ comment, he smiled: ‘Yes, I’d be rich if I had £1 for every time I’d heard that saying. ‘With all my years of experience, I know what’s good about warranty and I know what’s bad. I’m trying to improve the parts that are bad.
our watchwords It’s not rocket science but we do stand apart from the competition. ‘There is a distinct philosophy in our company and that involves fairness and transparency within what we are offering dealerships. ‘What we’re trying to do is raise the bar with regards to warranty coverage and focus on the moment of truth – the moment a customer makes a claim. We want that process to be totally fair and we want to establish true partnerships with our dealers. We’re passionate about working with them, not against them.’ This philosophy leads to another interesting point about working with Bluechip. Kohn explained that the company might not be working to profit margins that are as high as some of its competitors, and he knows from personal experience that his new venture is being very generous when it comes to the proportion of the policy payment that is allocated to the claims fund… this enables payouts to be made on what might be referred to as ‘grey area’ claims. He added: ‘Because we want to work with the dealer and not take more money than we need to, we offer the facility to place our accounts with dealerships into ‘‘profit share’’.’ Without giving away too much in the way of details, if a particular dealership delivers more in terms of policy payments than the sum effectively ‘withdrawn’ through claims, an element of the surplus amount of money will be refunded. Kohn explained: ‘We have tried to make a nice gesture to our dealer partners. We want to make sure it’s not all take, take, take. ‘The high level of claims funding and the profit-share scheme without doubt set us apart from our competitors. ‘We’ve just gone live with our online system and I am proud to say it is totally transparent. When a dealer logs into his or her account, they can see the policies they have put on, the money they have paid for them, all of their claims and so on. Nothing is hidden, which is exactly how we want it. ‘And when it comes to the profit share, the system tells them what they have paid, what they have claimed and what the difference is. Then it gives them some money back. It’s a nice, positive message.’ Bluechip Warranty will shortly be introducing a new element to its policies: three months
of breakdown cover on every warranty, free of charge. Kohn explained: ‘Regardless of the duration of the warranty, when you look at the claims profile, the claims always tend to be in the earlier months. There tends to be a spike up to months three and four and then it tends to drop off. Covering that high-risk period with a complimentary breakdown package is a positive step.’ Still need more incentives to talk to the team at Bluechip Warranty? How about their approach to wear and tear? With a typically realistic approach, Kohn told us: ‘Wear and tear has been a dreaded headache and get-out for as long as warranties have been available. We know that every item will eventually fail due to usage or deterioration, which, in other words, is wear and tear. ‘We try to be as fair as we can, and judge whether, in our expert opinion, the item has failed due to premature wear and tear – or if it has merely worn out and reached the end of its normal working life. ‘The other thing I’d like to mention is that within our “off the shelf’’ warranty proposition, we have three default levels of cover. However, when a dealer inputs a particular warranty into our online system, we have a facility whereby they can bespoke that warranty. They can add items that might be a concern to themselves or the customer. ‘For example, a customer might say, ‘‘I’ve heard the exhaust systems on these cars are really expensive’’. The dealer can ring us, and, yes, there might be a slight additional cost involved, but that exhaust system can be written into their policy. ‘We’re trying to be helpful and we want to cut out all quibbling.’ by Dave Brown (@CarDealerDave)
EASY TO GET HOLD OF JEFF Kohn is so dedicated to the welfare of his dealer partners that his mobile phone is never switched off, even at weekends and during the evening. ‘All my dealers have my personal mobile number and if I’m away at weekends, as long as I’ve got a phone signal, I don’t have a problem with receiving a call and dealing with it. If a claim needs to be made quickly, without going through the claims department, then that would be actioned as well.’ Once a particular dealership has been working with Bluechip Warranty for a certain amount of time, they might well be granted the facility to self-authorise any warranty work necessary on a customer’s car. Kohn told us: ‘Once they have worked with us for a while and we have established that trust element, our motto is simply, ‘‘if the part is covered and the costs are fair, then pay it.’’ It’s typical of Bluechip Warranty’s sensible, no-nonsense approach – a refreshing aspect of their expanding operation.
CarDealerMag.co.uk | 67
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We’re providing the ultimate WMS GROUP
W: WMSGroupUK.com
T: 01844 293817
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he WMS Group are one of the UK’s leading business-to-business warranty providers, working with more than 3,500 dealerships nationwide. They were recently voted Warranty Provider of the Year in the prestigious Car Dealer Power Awards, which underlined their commitment to delivering market-leading warranty products backed up with exceptional customer service. We caught up with Eric Stone, their national business development director, who told us why more and more franchised dealers are choosing to adopt the Safe and Sound scheme for their used-vehicle Eric Stone operations. He said: ‘We are seeing an unprecedented demand from franchised retailers to cover their used stock with our flagship car programme, Safe and Sound. ‘The network is continuing to grow and we now have more than 250 hand-picked dealerships using it who are reporting significant achievements. ‘What we are providing is a highly-credible motoring package endorsed by Sir Stirling Moss, which is not only generating footfall for our dealers, but also enhancing their reputation and allowing them to retain customers long after the handover.’ Among the benefits offered as part of the Safe and Sound programme are: • Six months Ultimate warranty; • Six months Safe and Sound Assist; • 60-point safety inspection; • Full provenance check; • Mileage verification; • Independent valuation; and • An exclusive buy-back promise The Ultimate warranty is available for vehicles
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up to six years/60,000 miles at the start date and covers all mechanical and electrical components, wear and tear, diagnosis and batteries. A range of customer offers are also available to assist in upselling the warranty and recovery, including up to 50 per cent cover free of charge and fuel card vouchers.
The WMS Group can offer: • Award-winning warranties and associated products; • FREE and unlimited sales training and marketing support; • Dedicated account management; • 24/7 customer helpline, open 365 days per year; • Vast network of approved repairers; • Industry’s fastest claims payment turnaround; • Free access to the exclusive My Motor Manager app, designed to retain customers for life.
We are providing a highly-credible motoring package which is not only generating footfall for our dealers, but also enhancing their reputation and allowing them to retain customers long after the handover.
68 | CarDealerMag.co.uk
package...
CASE STUDY
Underwoods Motor Group
E: Dealers@WMSGroupUK.com Rowcliffes Vauxhall dealer principal Karen Evenden and WMS Group key account manager Peter Jacob
Underwoods’ sales director Matthew Waylett with WMS Group account manager Chris Cole
How Underwoods increased used-vehicle sales by 17 per cent during 2014 UNDERWOODS is the largest privately-owned dealer group in north Essex and Suffolk, representing six franchises across six branches. They provide the full Safe and Sound programme with all used Peugeot, Ford, Mazda and Kia models, in addition to vehicles that fall outside of the Network Q and Skoda approved parameters. The WMS Group used their Safe and Sound scheme to form the basis of a bespoke sales process for Underwoods, which would put the customer at the heart of their business. An extensive Learning and Development programme was implemented by the WMS Group’s specialist training division, beginning with the introduction of offer sheets, profile documents and a series of qualifying questions. Following this, warranty documentation was white-labelled and all sales staff were subsequently trained onsite across every aspect of the sales process – not just the WMS Group’s products. The combination of these
developments resulted in a 17 per cent uplift in vehicle sales during 2014. Matthew Waylett, sales director for all six Underwoods branches, said: ‘The key objective was to enhance our relationships with customers by creating a standard, compliant sales process across the entire group. ‘We wanted to ensure every customer was treated fairly as we believe this can only have a very positive effect on future repeat business. ‘Safe and Sound is a fantastic proposition which our customers see the value in. The warranty cover is very comprehensive, and the time and effort from the WMS Group’s managers has been enormous – we are extremely grateful for the exceptional service and positive impact made.’ Underwoods are currently focusing on maximising all opportunities across their showrooms and creating an even greater experience for their buyers. They are continuing to increase the overall performance of their sales staff and management through ongoing training and coaching. CarDealerMag.co.uk | 69
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Making the most of extended AUTOPROTECT
W: autoprotect.co.uk
T: 01279 456 500
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t’s time for a renewed focus upon extended warranties. This is the view of AutoProtect Sales Director Nick Wake, whose rationale is that as a retention tool, warranties are unequalled and as a profit opportunity, short and long term, the opportunity is too often being overlooked. ‘Manufacturers recognise the retention and lifetime value appeal of extended warranties; now it is important that more dealers realise they can benefit as well,’ says Wake.
Ahead of the retention possibilities, a good warranty can help close a sale It is clear that customers are increasingly finding their next car online. It may be easy to assume the purchase decision is all about the lowest price. However, this is seldom the case. Used-car buyers still like to buy locally and, above this, they want a high-quality value proposition. Hyperbole apart, what this means is they want: n a great car, n great service, and n the promise of reliability, or at least something that mitigates the risks of a breakdown. Enter the value of an extended high-quality warranty as part of the online customer offer. An extended warranty immediately screams dealer confidence in their product and it differentiates the dealer’s offer away from price. In short, they create higher levels of buyer confidence. Building a one-year warranty, as a minimum, into every used sale immediately says ‘we are confident about the quality of our used cars’ and it also provides a perfect springboard for an extended warranty.
Enhancing customer lifetime value As well as retention, dealers can enhance the
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lifetime value of customers if they provide service and maintenance facilities. This is something they may have on-site, or could outsource. There are two clear factors that demonstrably encourage customers with a warranty to return to that dealer for servicing: Research published last year by Trendtracker revealed that, when asked, 70 per cent of customers with in-warranty cars identified ‘to keep the car under warranty’ as the main reason for choosing their dealer as their point of servicing. Motorists with cars still under warranty are no longer bound to use franchised dealers, but it seems many still believe they are. The same principle is also likely to support customer loyalty at used retailers as well. An extended warranty that matches the term of the MOT is another opportunity to enhance customer loyalty. The MOT often acts as a catalyst for the customer to change car or switch servicing supplier. In the recent Budget announcement, the government outlined its plans to extend the deadline for the first MOT of new cars and motorcycles from three to four years. Dealers should be working to match extended warranties to this new timetable to stay close to their customers.
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The impact upon retention Dealers retailing used cars can benefit from an interesting trend identified in the franchised sector between extended warranties and retention. The negative trend in falling levels of retention experienced by franchised dealers is starting
The warranty must give customers the peace of mind that such products suggest. This needs to be supported by total transparency. This ethos is central to our approach. 70 | CarDealerMag.co.uk
to improve – or, at least, the rate of fall has slowed down. This is the conclusion of Trendtracker research, which shows extended warranties have been central to this improvement. It is a factor that dealers selling new and used cars need to be focusing upon. Certainly, manufacturers already see the value of such an approach. Kia, Hyundai and, more recently, Toyota now offer five to seven year warranties and it is having a positive impact on retention. Used-car dealers can gain the same positive benefit. Leveraging an existing manufacturer warranty, or providing a three-month warranty, with a used car remains popular among many dealerships. Yet the trend established by Trendtracker, based on long-term research, favours the provision or upsell of a far longer warranty. It is something that has a clear benefit upon retention.
Trends in warranties How have sales of used-car warranties performed over the past 12 months? Are you selling more products of longer duration? How do you see the year ahead for warranties in terms of sales? The wider used-car parc is now getting younger once again following 41 months of new-car sales growth. Coupled with increasing supply, dealers are now finding access to usedcar stocking funds easier to obtain. The result is that dealers are increasing stock, much of it is younger than was being seen on forecourts a few years ago, With younger, often higher-value stock on offer, dealers are more confident about promoting longer warranties to cars in the twoto five-year category, as such sales are showing encouraging growth. Tied into this, dealers are happier to offer warranties that provide wider coverage. In part, this is about treating customers fairly, but it also reflects the increase of a savvy customer who wants to see a quality warranty. It seems clear, the reassurance offered by a quality warranty is something that meets customer needs and should be seen as a key part of the value-building process for every sale. The warranty must give customers the peace of mind that such products suggest. This needs to be supported by total transparency. This ethos is central to our approach.
warranty opportunities E: info@autoprotect.co.uk
The AutoProtect Approach MARKETING
Customers value warranties: Many customers ask ‘what warranty comes with the cars you sell?’ Be ready to provide a detailed presentation – it can help sell a car as well as an extended warranty!
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Explain the warranty: When a customer has made a mental decision to buy a car, remind them about the warranty you provide. Start the conversation by picking up on the points you’ve already found out. The customer wants to understand the warranty so explain what’s on offer, highlighting the benefits.
AutoProtect Sales Director Nick Wake points to the key areas where AutoProtect’s products, people and technology can make a positive difference in the showroom. He says: ‘We operate in a changing market. Consumers are more confident, knowledgeable and demanding. Competition has increased and so has regulation. We have moved quickly to help dealers to develop their extended warranty approach, with a range of options that can be tailored at dealer level by our UK-wide team.’
TRAINING
Training AutoProtect’s UK-wide support team provides a range of training from new-start inductions to group training. The focus is upon product knowledge (not all warranties are the same by any means, and dealers need to be sure they provide accurate information) and sales processes, ensuring customers know exactly what they can buy and/or are being provided within the car purchase price.
As well as showroom merchandising support, dealers can take advantage of AutoProtect’s investment in video to enable customers to discover the value of a warranty for themselves. In today’s marketplace, the showroom is often the customer’s own sitting room and video can help bring the value of a warranty to life. US research demonstrates the value of video on a dealer’s site: Time on site is 67.5 per cent higher Conversion rates are 20 per cent higher
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Introduce the warranty conversation early: Find out information that will help build a need for the warranty, such as who uses the car, what kind of journeys the car is used for, etc. While appraising the customer’s part exchange, establish if it has a warranty (as that may add value to the car) and whether they have had to pay for repairs on their old car while they’ve had it.
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by Sales Director Nick Wake
Marketing
FIVE TIPS TO INCREASE THE VALUE OF WARRANTIES
Treating customers fairly AutoProtect offers insurance-based warranties and dealer guarantees. The latter is not subject to FCA regulation. In both, we see the importance of adopting a TCF approach as being central to ‘doing the right thing’ for the customer – itself something that should preserve and enhance a dealer’s reputation. Whatever product type a dealer chooses, the AutoProtect team will be on hand to guide a dealer on best sales processes.
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Know your product(s): Ensure you know what your warranty options cover; claims limits, component cover, etc., so when you describe it or answer questions, you do so with confidence. It’s really important to explain what the warranty DOES NOT do. Explain what mechanical breakdown means, highlight the service requirements, listed components, excluded items, claims process, etc. Keep the terms and conditions of your warranty to hand, as all the answers to a customer’s questions can be found there.
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Don’t ignore the opportunity: It can be all too easy to think of an extended warranty as an unwanted extra sales step. In reality, helping customers to buy products they want will not place a car sale at risk; but not offering a warranty extension could be a long-term risk if subsequently the customers could have claimed on a warranty that you omitted to offer! CarDealerMag.co.uk | 71
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Why a warranty RAC
W: rac.co.uk/approved-dealer
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‘Customer service is vital. We have to put consumers at the forefront of everything we do. We have to understand the necessity of delivering a proposition that looks after the consumer. 72 | CarDealerMag.co.uk
he days of dealerships offering only a warranty to persuade a customer to buy one of their cars are on the way out. Instead, dealers have to prove to the consumer they have much greater confidence in the vehicles on their forecourt. That’s the view of the RAC’s head of dealer propositions Mario Dolcezza, who says his brand’s BuySure scheme is leading the way in customer service. He says consumers are now demanding much more from car salesmen – and the dealerships that deliver exceptional service are reaping the benefits. He says RAC’s growing band of Approved Dealers are making the right moves to get customers on their side. Car Dealer caught up with Mario to discuss the customer proposition – and what RAC BuySure has meant to consumers and to dealers. He says: ‘The RAC’s perspective of warranties has changed over the past few years. ‘When I arrived we were very much a warranty business. We work with TWG, The Warranty Group, our chosen partner – and we work well with them – and we were very much a warranty business. We were out there competing with everyone else and selling warranties. But at that point I don’t think we were particularly standout. ‘We looked at what we were doing and decided a warranty alone wasn’t enough. Our decision was driven by consumer research, and that was telling us the key components the consumer was looking for in buying a car were n warranty, n inspection, n breakdown. ‘The consumers wanted more than just a simple warranty product. They wanted to know the car was good in the first place. ‘But the problem with inspection is that it’s very costly to do. So we set out the RAC Approved Preparation Standard, an 82-point check that we felt was commensurate with how a used car could and should be prepared for the consumer. ‘The 82-point Preparation Standard is now adhered to by RAC Approved Dealers who prepare all their vehicles to that standard, so the consumer knows when they’re buying a vehicle that it meets a certain standard. It comes with a warranty provision when they purchase it, which is no less than three months but many of our Approved Dealers do significantly more than that as standard. ‘And that comes with the car when you buy it.
alone is not enough T: 0330 100 3807
‘The RAC also provides a breakdown package – and we have just increased our provision from three months to 12 months. Now every consumer who buys a car through an RAC Approved Dealer will get 12 months’ complimentary breakdown cover courtesy of the RAC.’ Warranties on their own, then, won’t work any more? Do dealers have to start thinking outside the box and offering more comprehensive packages so consumers can have absolute faith in the vehicle they are proposing to buy? Mario says: ‘We have stepped away from a simple warranty provision. That’s just not what the consumer wants. Yes, we do a warranty; yes, a warranty is very important to them. But it is only part of the overall safety net. It’s all about consumer confidence. A warranty goes a long way towards helping consumer confidence, because
it says that if something should go wrong, I have the provision to take care of it. But we wanted to make sure the product was right in the first place. ‘You can feel the confidence factor when a consumer purchases a car from an RAC Approved Dealer. ‘Customer service is vital to us as an industry. We have to put consumers at the forefront of everything we do. We have to understand the necessity of delivering a proposition that looks after the consumer. ‘Undoubtedly, dealers have to think beyond a simple warranty provision and about the whole service they are giving the consumer, in terms of what the vehicle is in the first place, as well as the provision they are making. It is important – they get only one shot at gaining a good reputation and earn the trust that goes with it.’
BUYSURE
Dealers’ fears turn to delight DEALERS were initially worried about the 82-point Preparation Standard – they felt it was a lot of extra work and expense. Mario Dolcezza is typically forthright: ‘Yes, initially, there were a few dealers who joined our network who were a little apprehensive. ‘But to be fair, there was not a huge number because when we looked at the vehicle preparation standard, we didn’t want to make it onerous to the dealer. At the end of the day, what we need to remember is this is a used car. We’re not taking a used car and turning it into a new car – that’s not what the consumer wants. If you are overly onerous on the preparation all you will do is price the car out of the reach of the consumer, so that doesn’t work either. ‘There is a fine balance we have to achieve and we think we have done that. ‘Certainly what we have seen is the degree of confidence in the consumer in buying a car from an RAC Approved Dealer. Many of our RAC Approved Dealers are seeing great results as a consequence, in terms of increased sales, better margins, better retention and a larger footprint with consumers buying from further away – a general uplift in the way a consumer perceives the business. ‘I’m based in Bristol, and there’s a dealer close to us, Carbase, who I speak to on a reasonably frequent basis. The sales manager there told me a few weeks ago that they had seen an uplift in sales approaching 25 per cent as a consequence of them leveraging the RAC Approved Dealer status. They’re a big marketing business but that gives the sense that if you’re an RAC Approved dealership and preparing vehicles well and applying the breakdown cover with good-quality warranty, and you’re marketing those as features of your business, you can certainly attract more customers. ‘If customers know that a vehicle is being prepared to a specific standard, and quantified by the RAC, you know you’re going to get a good car. That’s the key.’ CarDealerMag.co.uk | 73
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It’s the law: the issues with LAWGISTICS
W: www.lawgistics.co.uk
T: 01480 455500
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ou all know the maths. You sell 100 quality used cars to 100 customers and include a six-month warranty with each of them. You know 90 per cent of your customers will probably never have an issue with the car. They will be pleased with their purchase and happy with the warranty. However, the remaining 10 per cent will probably have an issue and try to make a claim under the warranty. The challenge is to make these 10 customers very happy with the warranty. Because, let’s face it, with social media now an everyday part of everyone’s life, one unhappy customer can create all kinds of trouble for a dealer. And as you, the dealer, sold the warranty, you know exactly where the focus of the customer’s wrath is headed... We caught up with Joel Combes of Lawgistics to help us through the minefield. He says: ‘Warranty claims are all about customer issues. If a warranty claim is handled incorrectly, the customer’s issue can quickly develop into a complaint. If your warranty fails to deal with a customer’s issue, then to be honest it is not worth the paper it is written on.’ Of course, not every claim will be valid. But any warranty should offer an alternative solution and help your customer understand what is legally reasonable. Combes adds: ‘If customers’ issues are landing on your doorstep, you need to reconsider your warranty provider.’
SO HERE IS THE LAWGISTICS GUIDE TO WARRANTIES: Manufacturer’s guarantee The manufacturer promises if anything goes wrong with the product because of faulty design or manufacture, or does not live up to its expected performance, the manufacturer will replace it or make it perform as intended. The manufacturer’s guarantee is, in most cases, the best – but unfortunately is offered from new and may cover the vehicle for only a limited period. Insurance-backed warranty This warranty is underwritten by an insurance company. It is an agreement that the insurance company will indemnify the policyholder against loss caused by a covered peril. Advantage n Your customer has peace of mind of the backing of an insurance company if your 74 | CarDealerMag.co.uk
Joel Combes dealership closes. Disadvantage n The cost of insurance-backed warranties will generally be significantly higher than dealerbacked warranties, as there is an insurance cost and payment of middle men. Dealer-backed warranty This obligor warranty/guarantee is a contractual warranty between you and your customers, which a warranty provider will administer. Advantages n You have peace of mind of the backing of an insurance company. n No need to register with the FCA. Disadvantages n The cost of an obligor warranty/guarantee can be costly as there is an insurance cost and payment to your warranty provider. n Many obligor warranties have exclusions you would be legally obliged to honour under your customers’ statutory rights. Self-funded ‘pot scheme’ warranty This is a contractual warranty between you and your customers which a warranty provider will administer. Your warranty provider will charge you as each warranty is registered and hold your money in a ‘pot’ (their bank account) to cover any claims. At the end of each year, you will receive
any unclaimed money, less an admin charge. Advantages n You do not have the extra expense of the insurance company/policy. n No need to register with the FCA. Disadvantage n While your money is in another company’s bank account, it is at risk. In-house warranty This is a contractual warranty between you and your customers, and administered by yourself. Advantage n You do not have the extra expense of the insurance company/policy or warranty administrator. Disadvantages n It is your responsibility to make sure your warranty complies with substitute legal requirements and FCA regulations. n You will have to administer all your claims. Verbal warranty This is a gentlemen’s agreement between you and your customer. Advantage n It costs nothing. Disadvantage n Under the amendments to the Sales of Goods Act, it is illegal.
warranties
THE
SOLUTION
THE DEALER CHECKLIST CHECK THE LEVEL OF COVER
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If you are looking at insurance-backed warranties, make sure the cover is comprehensive – that all mechanical and all electrical components are covered. A poor level of cover could result in you having to contribute towards a claim. However, if you are considering a dealer-backed warranty, you should choose a warranty with listed components, as this will help manage difficult claims – although you should always take legal advice on your customers’ legal rights before refusing a claim.
READ THE TERMS AND CONDITIONS
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It is important for you to make sure the warranty terms and conditions are not unfair. Watch out for servicing loopholes, for example saying the vehicle must be serviced six months or 6,000 miles after the date of purchase and then in accordance with the manufacturer’s recommendation. If you are looking at insurance-backed warranties, you need to check there are no restrictions on labour rates. And make sure diagnostics, recovery and vehicle hire are included or you could end up paying for them yourself.
UNDERSTAND THE EXCLUSIONS
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Although the level of cover in some warranties may look comprehensive, this can soon change when you look at the exclusions. If wear and tear is excluded, you can almost guarantee most claims for second-hand vehicles will be turned down. And if consequential damage is excluded, you can be sure you will be contributing something towards the claim.
RESEARCH THE WARRANTY PROVIDER
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Choose a warranty provider that understands your liabilities, someone with a legal background and can give sound advice in awkward situations. Your warranty will only be as good as your warranty provider. Make sure they have a 24/7 claims helpline and administration service.
Driver Options is a simple solution to help motor dealers run their own warranties legally with maximum profit and minimum cost. It is a range of warranty booklets with telephone support and the option of using a comprehensive administration service.
THE BENEFITS OF USING DRIVER OPTIONS… n Save up to 70 per cent of what you spend on insurance warranties; n Generate additional revenue and increase your margins; n FREE legal conciliation helpline with motor trade lawyers; n 24/7 claims helpline answered by qualified technicians; n Access to a nationwide network of garages; n Professional warranty booklets that can be personalised; n Easy-to-use online management account; n Does not require FCA registration.
DRIVER OPTION 1 Professional warranty booklets that have been written by former Trading Standards officers and are compliant with the amendments to the Sale of Goods Act and FCA regulations. They are designed to give you the very best protection when running your own warranties. Warranty booklets: Driver Option 1 warranty booklets are available as standard or customised with your company logo and pictures. There is flexibility built into the warranty booklets allowing you to adapt each one to suit your circumstances. You can decide upon the period (eg three months), the mileage (eg 3,000 miles), the claims limit (e.g. £300), the level of cover (basic or comprehensive), where the vehicle is serviced and who repairs it. Pay-on-use breakdown recovery: Driver Option 1 includes a pay-on-use home start,
roadside assistance and national recovery service, with a 24/7 emergency assistance helpline. MARS 24hr Rescue can attend your customer’s vehicle at the roadside. If they cannot repair it they can recover them and up to four passengers to their home, supplying dealer, UK location or local garage. Legal conciliation helpline: Driver Option 1 also includes a legal conciliation helpline to advise on what to do in every situation, making sure you take the right decisions when running your own warranties.
DRIVER OPTION 2 A comprehensive warranty administration service that includes all the benefits of Driver Option 1 and will make running your own warranties simple. 24/7 claims helpline and administration service: Driver Option 2 gives your customer technical help and support 52 weeks a year, seven days a week, 24 hours a day. All warranty administration staff are trained in customer service. Online warranty management account: Driver Option 2 includes an account where you can register warranties, view claims and produce reports. When you add a new vehicle it immediately updates our bespoke computer system, ensuring your customer is covered the moment they leave your forecourt. Nationwide network of garages: Driver Option 2 gives you access to the Bosch Car Service network of garages which work to a Consumer Code of Practice approved by the Office of Fair Trading. If your customer breaks down, we will locate a garage to diagnose the fault and organise the repair. Our maintenance technical operators are all fully trained in making the right cost-effective decisions for you. If you have your own repair facilities or nominated repair garage, these can be used. CarDealerMag.co.uk | 75
FOCUS ON.
Warranty Suppliers Guide ‘A marked improvement on my experience with other warranty companies!’ Autoguard Warranties has been delivering bespoke programmes within this competitive sector of the motor industry since 1976. We adopt a flexible approach, making sure that your individual requirements are met, while also integrating with existing
T: 01276 672 014
processes. Our online system maximises efficiency and is easy to use, with onsite training and full support from our administration team. Autoguard Warranties has built rewarding partnerships with dealers and customers from all over the UK, Europe and the Middle East and we pride ourselves on delivering a warranty that is fit for purpose.
W: autoguardwarranties.com E: info@autoguardwarranties.com
AutoProtect provides warranties with an enhanced level of cover, including in-car entertainment, wear and tear and no quibbles in order to enhance your customer proposition. Offering both FCA and non FCA-registered options, we supply products that will fit your requirements. Easily-
T: 01279 456 504
W: autoprotect.co.uk
arranged premium funding offers the best opportunity to increase sales by allowing customers the benefit of paying warranty costs monthly. Our online processing system, AutoProcess, is simple to use and fully supported by your dedicated account manager and the training and head office team.
E: sales@autoprotect.co.uk
What makes Bluechip Warranty different from other warranty companies? Well, the company, set up only last year, takes a fresh approach to warranty provision. Offering conventional warranty, a fixed admin scheme and breakdown cover, there are various options around cover levels, durations and claims limits.
The company provides the facility to bespoke the items covered by its policies and a high percentage of the premiums paid is allocated to the claims fund. If you were to ask the simple question, ‘What makes us different from other warranty companies?’ the answer would be, ‘Our philosophy and our people.’
T: 01379 773330
E: enquiries@bluechipwarranty.co.uk
W: bluechipwarranty.co.uk
Everything Mapfre Warranty do is built around simplicity, quality, clarity and trust. We offer comprehensive ‘All Mechanical, All Electrical’ products within our ‘Black & White Warranty’ range and have recently launched an innovative new suite of Mechanical Breakdown Insurance (MBI) products. MBI is designed to provide good levels of
cover at competitive prices with options to fit any stock and customer profile – they have been consumer tested as well to ensure they hit the mark. The same straightforward approach applies to the support offered to dealers by being the trusted specialists that focus on profitably growing their warranty business.
T: 0845 6838795 W: mapfrewarranty.co.uk E: contactus@mapfre.co.uk The RAC provides more than just a warranty in its efforts to drive more customers on to your forecourt. Consumers are demanding more than ever before from your sales staff. Our research has shown that the key components they want are highly-prepared vehicles, warranty and breakdown cover.
T: 0330 100 3807
W: rac.co.uk/approved-dealer E: dealernetwork@rac.co.uk
In order to create what we believe is the UK’s best usedcar warranty, we at Warrantywise needed advice from the definitive force in all things warranty. There was only one person who knew the motor industry well enough and had the knowledge we needed to truly understand what you, the customer, needed.
T: 0800 001 4552
That’s why we developed RAC BuySure to give you a powerful consumer proposition. n An iconic consumer brand; n 82-point RAC Approved Preparation Standard; n Three-month warranty from the RAC; n Twelve months’ RAC Breakdown Cover.
W: wisedealer.co.uk
That person was Quentin Willson. As a consumer champion and expert in all fields automotive, he was the one person we could rely on to create a used-car warranty that was 100 per cent transparent and, most importantly, worth the paper it was printed on. We look forward to working with you.
E: clare@warrantywise.co.uk
The WMS Group are one of the UK’s leading car dealer warranty providers, working with over 3,500 dealerships to enhance their reputation, boost customer retention and maximise profitability. We were also voted Warranty Provider of the Year 2015 at the prestigious Car Dealer Power awards in light of our commitment to delivering
exceptional products and aftersales service. We offer: n Award-winning warranties and associated products n FREE and ongoing sales training n Dedicated account management with regular visits n 24/7 customer support, operating 365 days per year n Vast network of approved repairers ... and much more!
T: 01844 293817 / 07789 682502 W: wmsgroupuk.com E: dealers@wmsgroupuk.com 76 | CarDealerMag.co.uk
Same product, different approach l
Conventional warranty Fixed admin scheme Breakdown cover l
l
Options of cover levels, durations and claim limits Facility to bespoke covered items High percentage of premium allocated to claim fund Profit share account status
Question What makes us different from other warranty companies? Answer Our philosophy and our people If you would like to know more about how we can help your business, please call us on
01379 773 330
or email us on
enquiries@bluechipwarranty.co.uk bluechipwarranty.co.uk CarDealerMag.co.uk | 77
DASHBOARD. FEATURE.
Ask Lawgistics
Don’t get court out when you settle a dispute
Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it
Q
I have been reading about something called Alternative Dispute Resolution (ADR). Was I supposed to do something by July to comply with the new rules? Alternative Dispute Resolution, or ADR in its abbreviated form, is simply about resolving matters outside of court. There are various types of ADR, the simplest of which is straightforward direct negotiation between yourself and your customer. The new rules on trader information requirements were due to come into play on July 9, but this was put back at the 11th hour and so you now have until October 1 to get ready. From October 1, if you cannot reach an agreement with your customer following a complaint about the purchase of their car, you will, by law, have to adhere to the Information Requirements of The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015. These requirements mean that if you belong to a trade association – and as a term of your membership you have to offer ADR through that association – you will need to update your website and your sales terms and conditions to include the name and website address of the ADR provider. For those motor traders who do not belong to a trade association, there is no requirement to add any information to your website or your sales contracts.
A
Q
However, ALL traders have to follow the Information Requirements of Paragraph 19(2) of the new regulations. This requires that at the stage when you and your customer come to deadlock – when you have given your final answer but the customer still wants more – you have to put it in a ‘durable medium’, such as a letter or an email, that you cannot agree to settle the matter. You are also required by law to advise the customer in that letter or email of a suitable and certified ADR provider. That ADR provider must have been registered and approved by Trading Standards. You can find a list of all the approved bodies on the Trading Standards website at www.tradingstandards.uk/advice/ ADRApprovedBodies.cfm However, despite being required to advise the customer they can take their complaint to an ADR provider, you do not have to agree to engage in ADR with that or any other provider, but you need to make that clear in your deadlock letter. To make it clear, there is no compulsion for a motor trader to agree to participate with an ADR provider unless the terms of their trade association membership requires them to do so. For those traders, they need to start reviewing their websites and sales contracts to ensure they do not fall foul of the new requirements come October 1, as failure to comply can ultimately lead to an unlimited fine and two years’ imprisonment.
.com
Make sure you get written consent to start work
Q
I’ve had a claim made against me for a refund for a vehicle I sold. However, I have already repaired the vehicle but the customer is saying they did not give me authorisation to make any repairs. Can you help me? Unfortunately, in cases like this it is very much the word of the consumer against you. We would always recommend obtaining written consent; an email, for example, agreeing to repairs, or asking a customer to sign a work
A
sheet invoice of some kind. This will almost certainly stop any arguments at a later date and will be good evidence. If, however, you have not done this, or a consumer refuses to give written consent, you can always try to argue ‘deemed’ consent. If a customer has willingly returned the vehicle to you for inspection and asked you to ‘get it sorted’, or words to that effect, that would almost certainly be
considered to be consent to repairs. If, however, a consumer has made it very clear they do not want repairs when they return the vehicle to you, then you should not carry out repairs. If you do, and the customer then takes issue with this, it could be deemed to be acceptance of the rejection or criminal damage, so it is important you are satisfied you have consent before starting any repairs.
ADVICE
I have agreed to settle a dispute with a consumer by paying him a percentage of his court claim, as I do not want the inconvenience of having to attend court. The consumer has agreed to this. What do I need to do now? Any informal agreement you have made with the claimant now needs to be made formal to avoid any future claims arising. We would recommend drafting a settlement agreement and getting the claimant to sign to say they accept it. The settlement agreement should be on a ‘without prejudice’ basis so the claimant cannot show it to a court if they later decide not to accept your offer. We also recommend you make clear the payment is a goodwill gesture as liability has not been proven. You should also take time to ensure the claimant has definitely withdrawn their claim from court and that proceedings are no longer taking place. This is important because if you don’t have confirmation of this from the court, then the proceedings may still go ahead without you and you may find judgment is still made against you. If the claimant is, for some reason, refusing to withdraw the claim from court and you have already made the payment, then make sure you still defend the case on the basis the claimant has agreed to settle and this has already been paid.
A
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I wanted to make sure my ads on Facebook didn’t fall foul of the FCA regulations, says Jim Reid JIM REID found himself with the same quandary as hundreds of dealers before him – and probably hundreds more afterwards, too. Just WHAT do you need to include in an online finance advert so you don’t fall foul of the FCA regulations? He was looking at the offering provided by his firm, Jim Reid Vehicle Sales Limited, on Facebook, and wanted to make sure he was ticking all the right boxes. So he turned to the people who have all the answers: Lawgistics. As part of his Car Dealer Club membership package, Jim was able to speak to the law specialists to get their advice. ‘To say the regulations are a bit of a minefield is probably putting it nicely,’ said Jim, who has been running the dealership with his wife Gail in Kintore, Aberdeenshire, since 2003. ‘Probably the only people who know exactly how to do it are the FCA themselves…’ So he asked Lawgistics to run the rule over what he was doing. ‘Like lots of other people, I’m not sure that all the dealers out there are doing it properly, and I didn’t want to fall into the same traps,’ said Jim. ‘I see some adverts that say simply that customers can buy a car for a £250 deposit, and then just £250 a month. And no other details at all. That’s wrong. ‘Customer service is very important to us – it always has been – and I want to make sure I am giving them all the information they need. ‘Do we need to highlight the flat rate, or the APR, or something else entirely, or those things and more, or some other details…? We have to get it right. ‘Lawgistics were excellent. We told
them what we wanted to know, and they went away and a couple of days later came back with everything we needed. ‘When we offer finance deals, we always try to do the best for our customers. And now we’re confident we’re doing all we can for them.’ Joel Combes of Lawgistics said one aspect has not changed with the FCA. ‘Dealers have always had to be whiter than white – the difference now is that consumers are aware of it,’ he said. ‘Adverts can’t be misleading – they have to be fair and clear and easily legible and use plain and intelligible language. ‘And the advert cannot not disguise or omit important information – that’s vital.’
AMS – GAP Insurance
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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
n
Taking Stock
July registrations confirm changes in buying habits Superminis in particular have become much more popular in recent years
N
ew-car registrations saw steady growth in July, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). A total of 178,420 cars were registered – an uplift of 3.2 per cent on the same month last year – while registrations in 2015 so far have risen 6.5 per cent to surpass 1.5 million. The UK new-car market has seen consistent, strong growth since early 2012, with July marking the 41st consecutive month of increases thanks to prevailing economic confidence combined with low interest rates and attractive finance deals. While the first six months of 2015 represented an all-time record high for registrations, the more modest increase in July is suggestive of a more stable second half of the year as demand levels off. The top-selling segments so far this year have been supermini, lower medium (small family cars) and dual-purpose (SUVs and crossovers).
Volume growth in all three segments reflects a shift in buying habits over the past decade, with the supermini and dual-purpose segments enjoying the biggest gains. In particular, demand for superminis has grown 22.7 per cent since 2005 – a result of consumers downsizing to smaller cars that offer significantly improved refinement, comfort and specification than their equivalents a decade ago. The market for dual-purpose vehicles, meanwhile, has seen a staggering 88.5 per cent leap over the past decade as manufacturers have introduced new models to cater for buyers seeking greater levels of versatility.
Mike Hawes, SMMT chief executive, said: ‘While more moderate than in recent months, July’s rise in newcar registrations is good news, and indicative of what we expect for the remainder of 2015. With demand having reached a record high in the first half of the year, we anticipate more stable growth in the coming months.’ The best sellers for July, from the top, were the Ford Fiesta (pictured, with 8,504 units registered); Ford Focus (7,044); Vauxhall Corsa (4,886); Volkswagen Golf (4,880); Nissan Qashqai (3,789); Audi A3 (3,731); Volkswagen Polo (3,620); Fiat 500 (3,191); Vauxhall Astra (3,187); Mercedes-Benz C Class (2,868). Year-to-date, the best-sellers are the Ford Fiesta (80,494 examples registered); Vauxhall Corsa (55,011); Ford Focus (52,122); Volkswagen Golf (43,141); Nissan Qashqai (38,290); Vauxhall Astra (33,153); Volkswagen Polo (32,600); Audi A3 (29,496); Mercedes-Benz C Class (27,544); Fiat 500 (25,815).
Ford consolidates its UK market leadership position FORD models were first and second in UK car registrations in July and the company stretched its sales lead over its rivals. Andy Barratt, Ford of Britain chairman and managing director, said: ‘We have consolidated and extended our long-standing UK market leadership through continued investment in exciting products and industry-leading technologies, 80 | CarDealerMag.co.uk
delivered through the strongest UK dealer network. ‘The sales success of our fresh and extended CV range this month has made five models segment leaders and the other one a close second. ‘Our car sales are also gathering momentum as we roll out further new models including C-MAX, S-MAX, Galaxy, Mustang and Mondeo Vignale.’
The Ford Fiesta is in its seventh year as the UK top seller. Meanwhile, Mitsubishi vehicle sales continued their upward trend in July, with a 39 per cent increase compared to the same month last year. Passenger vehicle sales through this calendar year to date are more than double last year, up 104 per cent. Mitsubishi remains the UK’s fastestgrowing mainstream car brand.
SMMT sales data July/year to date
5
Top
Most-improved manufacturers in July
SsangYong +396% Jeep
+148%
Porsche
+78%
Jaguar
+76%
smart
+59%
5
Bottom
Worst-performing manufacturers in July Perodua
-100%
Chrysler
-98%
Maserati
-35%
Dacia
-26%
Land Rover
-24%
HONDA +17.06%
VAUXHALL -9.90% Figures supplied by SMMT
Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG Mia MINI Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Saab SEAT Skoda smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total
July 2015
2015
160 306 69 13,004 116 9,385 3 2 5,496 1,040 782 4,693 24,115 3,547 6,168 137 2,388 691 5,857 2,822 828 39 105 3,008 10,127 237 0 3,123 1,622 9,912 0 7,077 1,177 0 5,499 0 3,190 6,576 661 397 167 2,045 6,251 16,899 15,503 3,016 58 122 178,420
% market share 0.09 0.17 0.04 7.29 0.07 5.26 0.00 0.00 3.08 0.58 0.44 2.63 13.52 1.99 3.46 0.08 1.34 0.39 3.28 1.58 0.46 0.02 0.06 1.69 5.68 0.13 0.00 1.75 0.91 5.56 0.00 3.97 0.66 0.00 3.08 0.00 1.79 3.69 0.37 0.22 0.09 1.15 3.50 9.47 8.69 1.69 0.03 0.07
July 2014
2014
116 342 50 12,032 120 9,955 2 126 5,179 1,404 0 4,863 23,647 3,030 5,302 131 1,352 278 6,011 3,722 731 34 161 2,426 8,404 203 0 3,571 1,181 10,455 3 6,845 661 0 4,088 0 4,149 7,588 415 80 165 2,254 5,791 18,756 14,017 3,010 77 180 172,907
% market share 0.07 0.20 0.03 6.96 0.07 5.76 0.00 0.07 3.00 0.81 0.00 2.81 13.68 1.75 3.07 0.08 0.78 0.16 3.48 2.15 0.42 0.02 0.09 1.40 4.86 0.12 0.00 2.07 0.68 6.05 0.00 3.96 0.38 0.00 2.36 0.00 2.40 4.39 0.24 0.05 0.10 1.30 3.35 10.85 8.11 1.74 0.04 0.10
% change 37.93 -10.53 38.00 8.08 -3.33 -5.73 50.00 -98.41 6.12 -25.93 0.00 -3.50 1.98 17.06 16.33 4.58 76.63 148.56 -2.56 -24.18 13.27 14.71 -34.78 23.99 20.50 16.75 0.00 -12.55 37.34 -5.19 -100.00 3.39 78.06 0.00 34.52 0.00 -23.11 -13.34 59.28 396.25 1.21 -9.27 7.94 -9.90 10.60 0.20 -24.68 -32.22 3.19
2015 1,238 2,918 565 99,013 848 89,748 7 131 50,979 15,503 1,576 37,369 201,265 31,200 52,911 746 12,270 6,045 48,105 38,986 7,757 226 883 26,556 84,930 1,907 0 34,427 14,812 93,335 0 64,414 7,369 0 42,339 0 30,517 46,044 4,181 1,752 1,834 19,732 60,196 159,333 135,567 24,172 437 1,166 1,555,309
Year-to-date (YTD) % market share 0.08 0.19 0.04 6.37 0.05 5.77 0.00 0.01 3.28 1.00 0.10 2.40 12.94 2.01 3.40 0.05 0.79 0.39 3.09 2.51 0.50 0.01 0.06 1.71 5.46 0.12 0.00 2.21 0.95 6.00 0.00 4.14 0.47 0.00 2.72 0.00 1.96 2.96 0.27 0.11 0.12 1.27 3.87 10.24 8.72 1.55 0.03 0.07
2014
905 3,299 532 95,793 930 85,077 2,761 1,210 49,269 14,380 0 39,733 197,201 32,949 48,034 357 11,178 1,906 46,860 33,741 6,362 129 725 22,313 72,270 1,407 5 24,979 7,181 81,384 25 64,273 5,301 1 36,152 1 31,491 46,764 2,942 818 1,474 21,980 56,855 160,365 124,683 22,860 509 808 1,460,172
% market share 0.06 0.23 0.04 6.56 0.06 5.83 0.19 0.08 3.37 0.98 0.00 2.72 13.51 2.26 3.29 0.02 0.77 0.13 3.21 2.31 0.44 0.01 0.05 1.53 4.95 0.10 0.00 1.71 0.49 5.57 0.00 4.40 0.36 0.00 2.48 0.00 2.16 3.20 0.20 0.06 0.10 1.51 3.89 10.98 8.54 1.57 0.03 0.06
% change 36.80 -11.55 6.20 3.36 -8.82 5.49 -99.75 -89.17 3.47 7.81 0.00 -5.95 2.06 -5.31 10.15 108.96 9.77 217.16 2.66 15.54 21.93 75.19 21.79 19.02 17.52 35.54 -100.00 37.82 106.27 14.68 -100.00 0.22 39.01 -100.00 17.11 -100.00 -3.09 -1.54 42.11 114.18 24.42 -10.23 5.88 -0.64 8.73 5.74 -14.15 44.31 6.52
CarDealerMag.co.uk | 81
TAKING STOCK. Remarketing specialist BCA finds that demand and supply remain balanced reasonably well, with conversion rates on the rise
Fleet and lease values stay at close-to-record levels... ...but dealers would be advised to put right low-level cosmetic damage like car-park dents before sending their cars for auction, says Simon Henstock
J
uly was a steady month for the wholesale used-car market as average values rose during the month, with good levels of demand in the fleet/lease and dealer P/X sectors. Values rose by £154 over the month, equivalent to a 1.9 per cent uplift with sale conversion rates climbing. Average values in the fleet and lease sector remained at near-record levels, as they have done for most of 2015, despite falling by £65 (0.6 per cent) compared to June. Average values for dealer part-exchange cars fell slightly by just £10, but at £4,268 were the fourthhighest ever recorded by BCA. Nearly-new values improved by nearly £900, although model mix plays a significant role in this sector. Year-on-year values were ahead for fleet/lease and dealer partexchange, although nearly-new values fell slightly. The headline average of a used-car value rose by £154 (1.9 per cent) over the month, equivalent to a 1.9 per cent uplift with performance against CAP improving by half a point. Year-on-year, values continue to climb with the average value of a car sold by BCA in July 2015 up by £206 (2.6 per cent), compared to July 2014. Supply and demand
‘It is noticeable that buyers are being more selective.’ remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins. Sales have been well attended throughout the auction network in July and online bidding has been strong, but it is noticeable that buyers are being more selective. Condition, preparation and presentation are important and it is worth considering SMART repairs for those cars that have suffered low-level cosmetic damage in the shape of car-park dents, stone chips and damage to alloy wheels. Sellers have generally been receptive to market sentiment in July, setting sensible reserves that have seen sale conversion
rates at healthy levels. There is little to be gained by over-valuing cars, particularly when there is increasing competition for the buyer’s wallet. Fleet and lease cars averaged £9,662 in July, remaining at near-record levels, as they have done for most of 2015, despite falling by £65 (0.6 per cent) compared to June. The past six months have recorded the six highest average monthly values on record for the fleet and lease sector. Retained value against original MRP (Manufacturers’ Retail Price) fell marginally to 41.69 per cent over the month, with age and mileage broadly static. Average values were up by £251 (2.6 per cent) compared to July 2014, with performance against CAP Clean up by a point and retained value marginally down on 2014. Average values for dealer part-exchange cars fell slightly by just £10, but at £4,268 were the fourth-highest ever recorded by BCA. Year-on-year values remain ahead by £203 (4.9 per cent), with CAP Clean performance ahead by nearly two points compared to a year ago. Nearly-new values improved to £21,250, the highest average monthly value since January.
BCA DASHBOARD Value month-on-month All cars vs June 2015
£7,912
Part-ex
vs June 2015
£4,268
1.9%
0.2% Variance year-on-year All cars vs July 2014
£206 2.6%
82 | CarDealerMag.co.uk
Average age
Avg value fleet/lease
60.37
£9,662
All cars vs July 2014
0.42
vs June 2015
0.6%
Average mileage All cars vs July 2014
54,945
861 Fleet/lease
Retained value against MRP
41.69%
Avg value nearly new vs June 2015
£21,250 4.3%
Global warranty presence with local warranty expertise •
Warranty underwriting, customer services and claims all under one MAPFRE roof for a shorter supply chain
•
Dedicated warranty claims team of trained motor technicians
•
Field based support to help improve your warranty business
Find out how we can help: 0845 6838795 contactus@mapfre.co.uk www.mapfrewarranty.co.uk
CarDealerMag.co.uk | 83
REAL DEALS.
Motoring history – but you’ll need deep pockets ANDY ENTWISTLE takes a look at a stunning example of the powerful race-ready Porsche 964 RS N/GT
O
nly a handful of years ago, the 964 was the unloved 911. 993s were all the rage and 964s were consigned to spend time languishing in the classifieds well below £10k. Then the 993 went stratospheric, taking its value way beyond any normal person, pricing out the everyman. Those who wanted air cooled looked elsewhere and realised what a bargain the 964 was. Sadly, the fate that befell the 993 has now hit the 964. Values have gone through the roof and even standard 964 Careera 2s are now commanding well over £20k. Then there are the specials. Introduced in 1992, the Porsche 964 RS came in three variations. They were produced in the standard RS model with two other options, the MOO2 (Touring) and the MOO3 (N/GT, also known as the Clubsport). The N/GTs were the lightest models and had a welded-in Matter rollcage, and it was essentially a race-ready car for track or road. The stripped-out interior was painted in the body colour and the seats were the narrower Recaro type, with full harnesses. Standard equipment included a fire extinguisher and electrical cut-out. It still remains one of the most accomplished club racers ever factory-produced. Offered for sale by Brookspeed in Hampshire is the first-production 964 RS N/GT, carrying the chassis number ending in 9011. It was not sold through the usual dealer network but was
84 | CarDealerMag.co.uk
allegedly given to Ulrich Richter, a dedicated Porsche-only race driver who had endeared himself to the brand with successes in the 1980s. The gift was to entice Richter back into GT racing, which worked with substantial success, including a third at the Daytona 24 Hours in 1994 driving a 911 RSR. The Maritime Blue RS was customised for him for use at his favourite circuit, the Nurburgring. He sold the car in 1993. The Porsche RS came from Germany to the UK and was registered on November 1 1995, having covered 30,000km. In 2005 the engine was fully rebuilt by specialist Ninemeister to include top and bottom ends with bearings, camshaft chains, valves, carriers, uprated springs and retainers, followers, guides, pistons, rings and all-new bolts. The engine has been through dyno testing and produced 305bhp at 6150rpm. In 2006 the suspension and brakes were replaced, which included discs, pads, sensors, springs and shock absorbers. All the wheel bearings were replaced
at the same time. Subsequent work has included a clutch replacement, heater, starter motor and distributors. It was decided in 2008 to refresh the paintwork with a full glass-out repaint at a cost of £16,383 which was entrusted to Ninemeister. A new central rear light decal comes ready for fitting if required. The V5 shows five owners since arriving in 1995. The comprehensive history contains all the service details, the Porsche Letter of Authenticity and all the MOTs from 1995 through to 2015. The MOT for 2006 is not present as it may have been SORN. It comes with its RS Owner’s manual. Martin Braybrook, the owner of Brookspeed, is reluctant to put a value on this car – this is something special and certainly something this rare is hard to value. But someone will have to be prepared to put their hands into some VERY deep pockets to buy what is most definitely a piece of motoring history. Martin Braybook’s Porsche haven
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AUCTIONS.
Glyn Hopkin opens new Renault and Dacia showroom in Essex. bit.ly/glynhopkin90
Legendary racing cars are top of the lots at Silverstone Classic sale Top prices achieved for ‘heroes and icons’ at popular annual event
AUCTION STATIONS
Up-to-date data is good news for everybody
J
A
range of legendary road and racing cars drew fevered bidding at the biggest-ever Silverstone Classic sale by auction partners, Silverstone Auctions. Alongside a weekend feast of iconic road cars, this year’s auction also featured the first-ever Competition Car Sale on July 23 – and it kicked off four days of sales in some style. Without doubt one of the highlights was a 1959 Cooper Monaco, which sold for £219,375, well in excess of its upper auction estimate of £180,000. The successor to the highly-regarded ‘Bobtail’, the all-aluminium-bodied racer features a 2.0-litre Coventry Climax and was raced by the likes of Sir Stirling Moss. Another competition car hero prompting a frenzy in the auction room was an ex-Gordon Spice 1979 Ford Capri GRP1, pictured above. Spice is probably best known in the UK for his hugely-successful Capris, which competed in British saloon car racing during the late 70s and early
Henstock
80s. It was no surprise to see this hero of the race track exceed its upper estimate of £90,000 with a sale price of £92,250. A road car icon that drew plenty of attention was a very rare 1989 DeTomaso Pantera GT5-S. One of only 17 RHD GT5-Ss out of a total factory production of 187 worldwide and featuring an enlarged 6.4-litre V8, it smashed its upper estimate of £120,000 with a sale price of £157,500. Nick Whale, managing director of Silverstone Auctions, said: ‘Every year the Silverstone Classic Sale features some real stand-out lots – but this year’s event has been packed with heroes and icons. ‘The team did a fantastic job pulling together such a mouth-watering mix of road and racing cars – the high quality of the lots really sets them apart and is why we’ve achieved some excellent sales results.’
History is made at outdoor auction the banks of the River Thames at Oakley MANHEIM has made auction history by Court in Windsor. running the first outdoor offsite auction. Of the cars offered, 70 per cent were And it achieved a 100 per cent conversion sold to physical buyers, with 30 per cent rate at the sale for Citroen UK, selling all being sold online. Buyers were able to 222 cars offered, and an average hammer bid remotely using Manheim’s Simulcast price of 98.2 per cent of CAP Clean. system via Viprinet hardware installed in A total of 70 buyers took part in the sale, Car dealer May 2015 24/4/15 10:53 Page 1 the Mobile Auction Unit. which was held outdoors in a marquee on
No cowboys. Just Just trade trade professionals. professionals.
ust how much of an impact do things such as Christmas, bank holidays and plate changes have on used-vehicle prices? In the wholesale markets, values are driven by a balance between supply and demand and if some buyers are enjoying a holiday, that might have an effect. The reality is somewhat different, however. The broader seasonal patterns – busy early in the year, slower postEaster and into the summer, then picking up again in the early autumn – are a little less defined than they once were. Thanks to the effect of digital platforms, the usedcar trade rarely has any down-time these days and with increasing volumes of business being conducted over the internet, you can technically buy a ‘virtual’ used car at any time of the day or night, 365 days a year. The registration plate changes in March and September traditionally stimulate new sales and plenty of dealer part-exchange stock and ‘fresh-to-market’ fleet vehicles will reach the remarketing sector. Then there is an element of seasonality attached to specific market sectors. The sales of convertibles tend to do better in the spring and summer. In contrast, average values for 4x4, SUV and off-road vehicles typically climb when the weather is worsening. Of course, information about trends and demand is the key to success in any business. In the remarketing sector, we are using business intelligence data and analytics to look at the dynamics of the used-vehicle market. It allows us to advise customers on the optimum times to sell and the most effective route to market, as well as ensuring our buyers have all the information they need to plan their purchasing in the shape of appraisals, condition reports, images and even video. Real-time access to a wide range of data can help sellers keep the stock flowing, and buyers to make profitable business decisions using the most up-to-date information – and that is good for everybody.
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com
86 | CarDealerMag.co.uk
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88 | CarDealerMag.co.uk
MARKET INSIGHT.
J
uly proved a good month for nearly all the listed UK motor retailers on the back of strong earnings announcements and expectations that, in spite of a challenging marketplace, the scale and structure of these companies will enable them to continue to deliver strong returns. The Pendragon share price received a nice boost on the back of their half-year results, rising 4p in the following couple of days. They also followed the recent dividend trend, with an increase of 100 per cent on the previous year. This was also the case for Inchcape, which was declining before the announcement of their results. The most significant mover in the month was Cambria, which received a boost because of buyer demand. As a result of the tightly-held nature of the shares, any acquisition or sale interest can move the share price markedly. Financial performance Pendragon published a better-than-expected set of results for the first half of the year, beating analysts’ expectations by 16 per cent and producing an upgrade in forecasts. Underlying profits were up 23 per cent boosted by a £6.2m improvement in usedcar gross profits. There was also growth in aftersales and new-car growth profits. The company appears to be benefitting from its investment in its online presence and advertising the ‘sell your car’ and ‘move me closer’ initiatives. Inchcape also published their results for the first half, which were better than expectations. First-half pre-tax profits fell by 5.6 per cent, but the previous-year comparative was boosted by a property disposal in Singapore. The key outperformers within the Inchcape numbers were North Asia and Russia & Emerging Markets, with the UK slightly below. The new CEO has now been in charge for 100 days and we should start to
..in association with ASE-global.com
Continued gains with strong performance among motor retail stocks July was a pretty good month all round, says Jason Leach Share price movement from January 1 to August 4 2015
Share price movement from January 1 to June 29, 2015
Pendragon
126.9%
116.9%
Vertu
109.3%
104.2%
Lookers
127.5%
123.1%
Inchcape
114.1%
113.1%
Cambria
151.1%
124.5%
Caffyns
105.9%
104.5%
Marshall
119.7%
121.1%*
*movement since admission to AIM on April 2
see his direction coming through to the business over the coming months. Vertu made a confident AGM trading update, confirming growth in line with market expectations. The company has seen like-for-like growth in vehicle sales and aftersales activities, with costs apparently remaining under control. Outlook The registration pressure shows no sign of decreasing, with growth occurring on a monthly basis. While a significant number of the vehicles are being self-registered, the groups appear to be managing this and producing strong earnings numbers. Lookers and Marshalls are both announcing their half-year results after the finalisation of this article. We expect the Lookers results to be strong, albeit unlikely to show the significant growth seen last year. Marshalls will be delivering their first significant announcement and we would expect healthy sales numbers to build confidence. Transactional activity The main news this month was that Vertu disposed of its loss-making Dunfermine Peugeot dealership, in addition to selling a vacant property in Crewe. In its half-year announcement, Pendragon formally announced the intention to add sites, particularly in areas of the country where they are not currently represented. Board composition and activity / Directors’ holdings There were no announcements of significance during the month. In their results announcement, Inchcape announced a further £100m share buyback programme to be undertaken over the next 12 months.
Who is Jason Leach? He’s Audit Partner and Managing Director – Professional Services at dealer profitability specialist ASE plc. Read his views here every month CarDealerMag.co.uk | 89
DATA FILE.
James Litton
TRADER TALES
Huge implications of a scientific study
A
s a constant reminder of what a failure I made of my education, one of my mates, Steve, is a professor of kinesiology at the University of Florida. Steve is running a research project investigating brain activity in stressful situations. In lay terms, they bung people through a specially-adapted MRI scanner and then flash images in front of their eyes. They do all of this while subjecting them to small amounts of pain. The hypothesis is that it may be possible to maximise human performance in stressful situations, battlefields, open heart surgery, that kind of thing. So what has this got to do with selling cars? Steve is not the only one doing this kind of work. There is a developmental field of marketing called neuromarketing. While Steve’s patients are being subjected to pinches of the arm while being scanned, there are other guinea pigs having images of products and prices flashed before them. Scientists believe there are two elements in the brain which control our perception of value for money. The implications are huge. What if you could combine tactical activity with brand activity without paying for both? The majority of motor television adverts I watch are absolute garbage. You could almost guarantee success if the sample group was large enough. Pricing for car manufacturers is also challenging. How do you accurately gauge the boiling point for a customer group on either monthly payment or list price? The answer is simple, you cannot. Although grocery and clothing retailers are better than we are at retail spatial planning, to construct a showroom environment which has been emotionally tested on your customers would be invaluable. Finally, and perhaps crucially, the cars. Mercedes make a whole host of options for cars which demonstrate amazing technological prowess but are seldom sold. This is because the value to the designer and engineer far outweigh the perceived value to the customer. Similarly, options we might sell for £250, may have substantial elasticity the other way. The thing is, we just do not know.
‘How do you accurately gauge the boiling point for a customer group on either monthly payment or list price?’
Who is James Litton?
James is sales manager at Mercedes-Benz of Taunton. He always has something to say about the industry he loves. 90 | CarDealerMag.co.uk
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Cricket cock-up left us on a sticky wicket
T
here’s a saying that the devil makes work for idle hands, and that has definitely been the case at many dealerships I have worked at over the years. Those Tuesday mornings when no bugger comes through the door drag just as much now as they did when I started out more than 30 years ago. One Tuesday a few years ago saw me and some of the other sales guys do something rather foolish in the showroom – indulge in a quick spell of office cricket. Well, it was an Ashes summer, and it would have been rude not to. It was all proceeding harmlessly enough (we were using a tennis ball and a couple of rolled-up copies of AM taped together as no-one had been reading them) when disaster struck. The tennis ball was hit with such a thwack, it knocked over part of a display stand that was positioned right next to one of the cars.... The stand, in turn, fell over and quite badly damaged the nearside front wing of the vehicle. Aargh! We weren’t sure what to do. The damage wasn’t disastrous, but it was definitely noticeable. We couldn’t move the car as it was hemmed in by too many others and we didn’t really have much time. So we raided the decals drawer and decided to discount the vehicle by £250.... with a handy piece of artwork we cunningly placed over the damage. In doing that, we turned it into something of a bargain and it didn’t take long for the car to sell. All was going smoothly on the deal (our sales manager – who hadn’t been involved in the cricket match – was handling things) until the customer came in to take delivery of the vehicle and the decal was removed. The damage was unveiled for all to see and there were a few guilty-looking glances exchanged as the customer examined the bodywork. Amazingly, nothing was said about it... I think the car was whipped round to our bodyshop for a bit of TLC before being driven away. We were puzzled as to why we escaped a b******ing – in fact you could say we were stumped !
‘We couldn’t move the car as it was hemmed in by too many others and we didn’t have time.’
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 | 91
KEY NOTES
..in association with Traka
Used-car sales boom Paul Smith discusses how best to take advantage of the extra activity in dealerships
2
£ Billions
Millions
014 saw a rise in used-car updating their online vehicle listings. Used car market volume and value sales to 7.4 million, worth They are getting their used-car stock 2013 - 2014 an estimated £42.7 billion – spruced up quickly for photography 8 45 the highest volume recorded and getting car details posted on 42.7 since 2006, with average fleet and lease their sites as quickly as possible now. 7.4 7.4 7.3 used-car values also seeing a strong rise They are also investing in search 7.1 7.1 40 according to the BCA Used Car Market engine optimisation (SEO) and 7 6.8 6.7 6.6 6.7 Report 2014. pay-per -click (PPC) advertising 38.1 6.3 35 33.9 But what’s most interesting about the and web remarketing programs so 35.7 33.3 35.0 32.3 32.4 34.2 numbers reported by the BCA in that when your put your Google request 6 30.0 report is that dealers accounted for a in for a ‘three-year-old Golf TDI SE 30 record market share of those used-car with 50,000 miles on the clock’, sales – 57.8 per cent. their listing comes up ahead of 5 25 The private-to-private sales market others. There is a whole new digital share declined to 38 per cent. marketing language emerging in the The success of the used-car market is automotive space. 20 4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 such that its value eclipses that of newDPs are likely to be checking their car sales value by £6bn now. VDP stats (Vehicle Details Page) views Volume Value Used-car prices also went up by and H&D lookups (Hours & Direction) eight per cent in 2014. The Centre of page views just as much their CTRs 2013 to December 2014) the average used-car Automotive Management at the University of (click through rates) and website visitor numbers vehicle’s age at point of sale fell by 5.6 per cent Buckingham Business School gave several reasons – with the latter two indictors being seen as from just over four years (50 months) to just for the increase in both the number of used cars increasingly-poor predictors of sales. under four years (47.2 months). sold and the average value of each of those cars There is no doubt that one key to increased The BCA report says the number of younger sold by dealers, which rose nearly 10 per cent to used-car sales is getting more active and savvy on used cars (the 0-5 year-old cars) rose by 6.5 per reach £7,660. the web. cent to reach 2.75m in 2014, so they now make If you look right across all used-car sales, prices This needs to be supported by rapidly offering up about a third of all used cars sold last year. increased by 7.4 per cent to reach £11,391. those interested in your stock more opportunities The shortage of these younger used cars is Firstly, it is simply about a gradually-improving to engage more deeply with you. gradually abating. But will this mean the rise in economy giving consumers the wherewithal and A timely offer of a live chat on the website values that we saw last year will grind to a halt confidence to go out and a buy a new used car. might be the opportunity to offer a test drive in 2015? Secondly, there is now a better selection of of the model and specification of car that most It is too early to tell but dealer principals ‘younger’ used cars out there, largely because new closely fits that browser’s search criteria. looking to do more used-car businesses could cars that were bought new up to four years ago (as All this needs to be done in a highly-sensitive do well to read the trends on used-car sales in the economy showed very early signs of recovery manner to avoid being too intrusive, while the comprehensive BCA Used Car Market Report and the PCP financing boom took hold) are now making it clear you are not only best placed to sell 2014 TNS/BMRB. coming on to the secondary market in volume. that used car but also to service it for them until In addition, the battlefield for used-car sales The SMMT’s statistics on the age of used cars the time comes to move on to the next, quite now largely takes place online. Dealerships have being sold shows that in the past year (December possibly, new car purchase. worked hard on their websites and building and
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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92 | CarDealerMag.co.uk
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THE FLEET.
LATEST FROM THE FLEET... Welcome report:
FordST
Sporty looks inside and out – but plenty of comfort, too
W
hen it comes to performance hot hatches, Ford has never been short of offerings to keep the boy-racer crowd happy, whether it was the super quick Escort RS Turbo of the late 80s or the outrageous Escort RS Cosworth of the 90s. But in the early noughties, the Focus was born and with it came the ST, which was more of a warm hatch rather than a full-blown replica of the performance-based forebears. It promised moderate pace for the family rather than all-out thrills that had become synonymous with the RS branding. This performance pecking order continues with the latest version of the ST, and although it’s not the most all-singing, all-dancing hot hatch Ford makes, it still pumps out an impressive 247bhp. Out has gone the 2.5-litre five-cylinder Volvosourced engine, replaced by a cleaner 2.0-litre fourcylinder petrol engine that’s driven through the front wheels. What’s even more impressive is that when you think back to the demonic Cosworthtuned Escort turbo of the 90s, that only produced 225bhp. So the ST is what you’d call the sensible choice, for someone who likes more aggressive looks with a bit of extra oomph, but without attracting attention at the McDonalds car park. There’s nothing overblown when it comes to
the styling. The ST rides 10mm lower than the standard Focus, and gets a roof spoiler to reduce lift and drag, and a one-piece grille, as well as the ST badging all round. Inside, the sporty theme continues with snug Recaro sports seats through to the three dials that pop out of the top of the dash to display the boost, oil pressure and water temperature. A neat touch, but a bit unnecessary. As regular readers of our long-term updates will know, I’m usually responsible for looking after our Volkswagen Transporter. But, with several staff
THE KNOWLEDGE Model: Ford ST-3 5-door Price: £27,730 Engine: 2.0-litre 6-speed manual Power: 247bhp Max speed: 154mph 0-62mph: 6.5sec Emissions: 159g/km Mpg: 41.5 (combined) Mileage this month: 2,123 THIS MONTH’S HIGHLIGHT Ah, all those little Ford luxuries...
house moves on the cards, our DUB has turned into the Gosport branch of Pickfords, meaning I’ve temporarily moved into our Ford Focus ST for a few days. Now, as much as I’m missing the cabin space, I’m quite enjoying time with our Essex boy special. Okay, it might not be what you’d call the perfect camera car, but it came into its own during filming on a Lamborghini shoot recently, acting as a great tracking car. Motoring anoraks will notice the McLaren in the pic, but unfortunately that was not part of the shoot. The ride was surprisingly compliant for a car that’s largely performance based. What I’m really loving, though, is the luxuries I don’t get with the van. Even some of the simple extras you’d expect as standard on most new cars now make longer journeys effortless. Extras like cruise control and an easy-to-operate entertainment unit, even being able to pair and answer my phone easily through controls on the steering wheel, make a welcome change. Nigel Swan (@motoringnut) CarDealerMag.co.uk | 95
THE FLEET.
LATEST FROM THE FLEET... Second report:
Third report:
Third report:
MitsubishiOutlander
Mazda6
AudiS7
It made moving in with the in-laws so easy. But I’m not sure whether that’s really a good thing...
Sat-nav struggles, but a really sound performer
Okay, it’s thirsty – but what a delight to drive
IT’S been a busy month for the Blackball video department, and where normally we share the VW Transporter team bus, this month we’ve had to split up for different shoots. Where Nigel has been in the Ford Focus ST, I’ve been entrusted with looking after the director’s long-term Mazda. No pressure there then. The last time I drove a Mazda 6 was on our road trip to Austria earlier this year and that was the more spacious Tourer model. I had fond memories and was looking forward to getting back behind the wheel of one. I was a little disappointed with the sat-nav, which had to be registered with a dealer before use. Other than that, there was little to grumble about. The M25 slog was made easier thanks to the decent Bose sound system. The cabin is a nice place to be, and the engine delivers decent performance without the need for regular fuel pit stops. My normal runabout is a Mini Clubman JCW which makes parking a doddle, but despite the extra size of the Mazda, it was pretty straightforward too, thanks to all-round parking sensors and reversing camera. Glenn Winhall (@GlennWinhall)
MOST people in the office would be over the moon to have the S7 for a few weeks. Baggott is moving and needed the Transporter, so after all the moving around I found myself in the big Audi. Now I’m no Audi fan – although when I’m asked what is the best car around, I always start by saying Audi make the best interiors. And the S7 confirms this. It is simply a beautiful place to be. Not only that, Audi manage to make an audio/satnav system that is logical and easy to use. This is my bugbear with many cars – if Audi can make one this good, why can’t the rest? So after three weeks, what do I think? Have I been converted? Well, I’ve covered around 1,000 miles, and every one was a pleasure – comfortable, refined and relaxed, with a cabin that feels it will outlast anything and a superb engine that sounds just glorious. What can’t I live with? An unhealthy thirst for fuel and its size. Fine on motorways and country roads, but very noticeable in town and when you’re parking. If you want a sporty Audi, buy an RS5. But if you want a peerless grand tourer, the Audi A7 should be high on your list. Andy Entwistle (@CarDealerAndy)
LAST month it was our Outlander’s seven seats that came in handy, ferrying family and friends here, there and everywhere. But this month I’ve gone in the opposite direction and turned the 2.2 diesel into a sporty two-seater. Okay, maybe not that sporty, but a two-seater nonetheless. With our house renovations reaching a point where we’ve been forced to decamp to the in-laws, the spacious Outlander has proved to be more useful than a Swiss Army knife. Working out how to fold down the middle row of seats isn’t the easiest thing in the world, but after resorting to asking my local dealer to show me how it’s done, the back suddenly became a cavernous space ready to swallow as many RSJs and bits of plasterboard as you can chuck at it. In fact, the floor of the vehicle is 1.69m long with the second and third row of seats down, 335mm more than the previous Outlander. Away from the ongoing DIY joy, the Outlander has been a good 96 | CarDealerMag.co.uk
companion on the long journeys. It feels powerful when accelerating from low speeds or pulling away, while the handling is good, with a comfortable ride. The interior on our model is attractive, with black leather seats offering a quality feel. Mitsubishi is renowned for its 4x4 capability and reliability and the Outlander enhances this reputation while adding a level of refinement. Across the range there’s plenty of standard safety equipment and the knowledge that it received a five-star Euro NCAP safety-rating. Gareth Bethell (@garethbethell)
THE KNOWLEDGE Model: Mitsubishi Outlander 2.2 DI-D GX4 Manual (Diesel) Price: £30,498 Engine: 2.2-litre diesel Power: 147bhp, 380Nm Max speed: 124mph 0-60mph: 10.2s Emissions: 140g/km Mileage this month: 2,106 THIS MONTH’S HIGHLIGHT Saying hi to the in-laws (yes, I’m making peace after that headline...)
THE KNOWLEDGE Model: Mazda 6 Price: £27,655 Engine: 2.2-litre diesel six-speed manual Power: 173bhp Max speed: 130mph 0-60mph: 9.1s Emissions: 107g/km Mileage this month: 1,420 THIS MONTH’S HIGHLIGHT Getting back to the office without as much as a scratch...
THE KNOWLEDGE Model: Audi S7 Price: £61,995 Engine: 4.0-litre, V8 twin turbo Power: 414bhp Max speed: 155mph 0-60mph: 4.7s Emissions: 225g/km Mileage this month: 987 THIS MONTH’S HIGHLIGHT The sat-nav and audio system are so easy to use. Other manufacturers please take note...
LONGTERMERS
Fifth report:
Eighth report:
Twelfth report:
Farewell report:
VWTransporter
KiaProcee’d GT
DaciaDuster
VolvoV40
Driving to the tip was a moving experience
What joy – I felt at home in Kate and Wills country
Dave saw things clearly despite the downpours..
Bye bye ... we’re going to miss the versatile one
I HAVEN’T moved home in years. There was a time when I moved six times in three years and became quite a pro at it. Boxing stuff up, shovelling it into a van and carting it somewhere became second nature. Fast forward seven years and I’ve moved again but this time I decided to do things differently. I got a man in. Well, what I really mean is several real men. Burly fellows with muscles, boxes of their own and a ruddy big white truck. And this frankly left me at a bit of a loose end – and for the first time in my moving career, I even had a van at my disposal. Our Transporter has had an easy life so far, carting Nigel around and his video kit, so over the past few weeks I’ve made it do some hard graft. Okay, so it didn’t have to shift boxes of toys and the washing machine, but it did have to help by making many, many trips to the dump. Old carpets, tables and lots of garden waste were stuffed in the back. I’d had a bit of a downer on the Transporter. It always felt very van like to drive while the leather seats and body kit made me think of it as a car. But back in its natural habitat it was in its element. James Baggott (@CarDealerEd)
THIS MONTH was very exciting for me as I went on my first car launch. The location was the picturesque New Forest, and to get there, I got given the keys to our Kia. I knew the Lime Wood Hotel I was staying at was going to be posh, but I didn’t realise quite how posh – it was the sort of place Wills and Kate would be in awe of. I left the Kia overnight parked next to a British Racing Green Aston Martin DB9 and a Range Rover Sport. It was a very goodlooking car sandwich... Launch done, I got to take the Kia for a proper drive around Hampshire. It was coming off a roundabout heading towards Southampton when I finally got to put my Chelsea boot (bought for posh launches) down. The Kia responded quickly and sprung into action, eager to impress as I revved through the gears. Impress it did, the car can really shift and it makes a great sound as well! One thing I did expect was a sat-nav, and not having one was a bit of a bummer! But it shows how good the Kia was that even without a sat-nav, I still really enjoyed it. Harry Boucher (@HarryBoucher)
THIS report focuses on my daughter’s graduation from Bristol University so as a tribute to the younger generation, I am going to attempt to give it a youthful feel. As you can imagine, the day was totes emosh and the Dacia totally killed it when I was transporting various friends and family members around the city centre. After all, who knew we’d have to pick up her gown from one place, attend the graduation somewhere else, return the gown, have a meal out, fill any gaps in the schedule with trips to various Caffe Neros / Costa Coffees, and park in numerous multi-storey car parks that looked as though thieves and scrotes could be lurking in any corner? Also, who knew that it would RAIN ALL BLOODY DAY? Lolz. The one thing I appreciated on this particular occasion was the great visibility afforded by the Dacia’s nononsense, practical design. Using the multi-storeys was a breeze and I even found I was reasonably adept at on-street parking. You know the stress that can affect these showpiece family events? Totally absent this time, thanks in no small part to NJ14PFD. Wicked. Dave Brown (@CarDealerDave)
SO it’s farewell to the little brown machine that has felt very much at home in our long-term fleet. The Volvo has proved to be a master of all it surveyed. It was handy around town, pretty frugal when it came to fuel stops, and absolutely marvellous on the motorway. The adaptive cruise control was a delight, and is as close to autonomous driving as any selfrespecting petrolhead would want to go. There’s almost hardly any need for a driver. Almost. Any grumbles? Visibility is one – when you’re trying to ease into a tight parking spot, it’s not the easiest motor to manoeuvre, and there are a few blind spots as you’re twisting and turning in the seat. And while its hefty feel is a lot more preferable to some of today’s cars that are so light that breathing on the steering wheel takes it into a 360-degree spin, it can work you into a bit if a sweat in town, if there are lots of twists and turns. But that’s probably being overly picky. There are far worse cars out there to spend a few hours in. And being one of the most popular cars in the fleet tells its own story... Colin Channon (@colinchannon)
THE KNOWLEDGE Model: VW Transporter Sportline 60 LWB Price: £37,306 (as tested) Engine: 2.0-litre BiTDI 180PS 7spd DSG Power: 178bhp, 400Nm Max speed: 119mph 0-60mph: 10.2s Emissions: 211g/km Mileage this month: 274 THIS MONTH’S HIGHLIGHT Stuffing in a load of rubbish with ease and getting rid of it for good.
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: 7.4s Emissions: 171g/km Mpg: 38.2 (combined) Mileage this month: 928 THIS MONTH’S HIGHLIGHT Brushing shoulders with the rich and powerful.
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: 1010 THIS MONTH’S HIGHLIGHT Sorry to stray from the car, but well done to Sarah on her drama degree!
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: 639 THIS MONTH’S HIGHLIGHT There isn’t one. We’re going to miss this little beauty. CarDealerMag.co.uk | 97
BAGGOTT.
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Car buyers are a strange breed – here’s what I think goes on in their heads... O
h, what to do today? Shopping? Well, I quite like shopping. But I could do with replacing that festering Vauxhall Corsa that’s as reliable as a Vauxhall Corsa. And it’s doing my street cred no good. Why not combine them both and go visit some dealers? Good idea. I’ll take the kids too. And the dog. And the in-laws are down and they’d love a day out. That reminds me, the Vauxhall Corsa really was a poor choice of family car... Oh look there’s a dealer. It looks respectable – there’s bunting and everything. I like bunting. Why is it called bunting? The world needs more bunting. Why are all the boots open on the cars? Perhaps they’re loading them up with something – free things they’ll throw in with the deal? I’ll just park the Corsa here. In front of this nice car that looks polished and ready to go. Yeah, it’ll be fine here. Right, everyone out. Oh look, a red one. I like red. I had a red car once and it was really reliable. OH MY GOD there’s a green one! Green is calming. I like green, it’ll be good for the kids. Where are the kids? Oh. Why do they always climb on things? That car looked like it had nice new paintwork too. Oh well, I’m sure the salesman won’t notice the footprints. Hang on, where’s the dog? Oh look, a yellow one. It’s got no roof. I like convertibles. Oh bum, it’s only got two seats. I need a people carrier. My life has ended. But then it sort of ended when I decided to buy a Corsa, didn’t it? This VW Sharan looks nice. That’s a lie, it looks hideous, I only said that because the wife said we need a people carrier. I want the convertible. Has anyone seen the dog? Oh god. The salesman’s coming over. He’s wearing a polo shirt and a bomber jacket. Why are they called bomber jackets? Not very PC, is it. I’d prefer a suit. And a tie. He’s asked me what I’m looking for – I’ll pretend it’s the convertible. The wife’s busy showing the Sharan to the mother-in-law. God, I hate the mother-in-law. But at least in the Sharan she’d be three rows away. But... in the convertible she’d be left at home. With the kids. And the wife. Just me and the dog rolling into the sunset. Lovely. I love the dog. Where is the bloody dog? He’s rumbled me. He knows I’m just pretending I want the yellow one. Arse. He knows my life has ended, I own slippers and have two very annoying children and extended family I’ve brought to a car lot on a Saturday for entertainment. Well, it is the holiday season after all. What did he expect me to do? I’ll let him get the keys to the Sharan. If I kick the tyres he’ll think I know what I’m talking
Who is James Baggott?
about. I’ll bounce the suspension too – that always looks professional. I should check the oil. OH GOD I have no idea where the oil dipstick is! I’ll just scratch my chin a bit instead and make it look like I’m contemplating something. He doesn’t need to know that I’m contemplating how my life has come to this – trading in a Corsa for a seven-seat endof-youth machine. There’s the dog! What’s he doing? Oh, hopefully if I keep him talking he won’t notice the squatting. Right, let’s talk turkey. I’ll ask him what he wants for it. What does he mean, the price is in the window? I know he’s got £5,000 profit in all these cars, what does he take me for – an idiot? I’ll make him an offer. It’s up for £9,995, I’ll offer him £3k. Why’s he laughing? Well, that’s just rude. And why’s he glaring at the kids? I don’t mind him glaring at the mother-in-law, that’s standard, but the kids are just having
James It’s up for £9,995. I’ll Baggott offer him £3k. Why’s he EDITOR’S NOTE: DON’T BE FOOLED, DEAR READER. THIS ISN’T FICTION. THIS REALLY IS HOW BAGGOTT ACTS WHEN HE GOES TO BUY A NEW CAR. WITHOUT THE CORSA. OBVIOUSLY.
laughing? That’s just rude. fun. Swinging on the bunting is what all kids do, isn’t it? I’ll offer him cash. Dealers love cash. He’s laughing harder. This is weird. I’d have thought £4,000 cash would have been a right result for him. He wants me to take the finance. Oh, I get his game now – he gets half the finance money to himself doesn’t he! Got his card marked. He’s not fooling me. I’ll ask to see the history. I literally have no idea what history is. Hated it at school. I’ll look at it scornfully. Well, there’s lots of paper here. Oh, some of it is printed nicely. I’ll ask about servicing, that’s important right? Balls, it’s got that, too. How do I get him down to £4k? I’ll let the wife sweet talk him. Actually, bad idea, he’s just looking at her breasts. Where’s the sodding dog? Right, I need to get out of here. I’m out of my depth and we’ve been here two hours already. I really like the yellow one, though. I wish I was young again. I must say that bunting is mighty impressive. I’ll tell him, might distract him. Right, I need to think of an excuse not to buy this. Anything will do. ANYTHING! Well, the steering wheel was a bit too chunky. That’ll do, I’ll tell him that. Chunky steering wheel fault. Perfect. He doesn’t look happy. Strange. Oh well, let’s do something else instead. We need to go shopping. Lidl is still open. Actually, is Lidl still open? The wife will know. But first, where’s that bleeding dog?
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. 98 | CarDealerMag.co.uk
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