Car Dealer Magazine: Issue 95 by Blackball Media

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MANHEIM

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IGNITION.

EDITORIAL PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

FEATURES EDITOR Sophie Williamson-Stothert

sophie@blackballmedia.co.uk Twitter: @1Sophie_W

EDITORIAL ASSISTANT Laura Thomson

laura@blackballmedia.co.uk Twitter: @lauramayrafiki

EDITORIAL ASSISTANT Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

ADVERTISING ACCOUNT MANAGER Michelle Searle

michelle@blackballmedia.co.uk

ACCOUNT MANAGER Jon Hickey

j.hickey@blackballmedia.co.uk Twitter: @CarDealerjon

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, Nigel Swan, Jon Reay, Jon Fleetwood, John Bowman, Ben Garside, Big Mike, Andrew Evans, Chris Jervis, Gareth Bethell, Paul Foster, Peter Spinney.

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Winner of Best Business Publication Headline Auto Awards 2012 & 2014

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is a wonderful WELCOME. Photoshop thing. Of course, it’s a boon to supermodels and other people in the public eye who opt for a little digital enhancement to ensure they’re looking their best in a magazine or newspaper. And – I’m about to let you into a little secret here – it also came in handy after this year’s Automotive Influencers photoshoot, organised by the Car Dealer team and held each year in the wonderful surroundings of the RAC Club in Pall Mall, London. We had contacted 14 of the leading figures from the UK’s automotive industry, and, as usual, had arranged for them to join us for a buffet lunch shortly before Christmas. Just one problem. The day we picked seemed to coincide with a fairly comprehensive meltdown of the UK’s road and rail network meaning some of our influencers were a little late to the party. The influencer most severely affected – through absolutely no fault of his own, I hasten to add – was Julian Rance of Paragon. We were incredibly grateful that he persevered with his journey, but he arrived too late to be included as we prepared to take a picture of our whole group. Never mind! With a talented photographer and a little computer wizardry, he was added to the picture so appears with everyone else. Clever stuff, eh? As always, of course, the thoughts of our influencers make fascinating reading. You don’t need me to tell you 2015 was a pretty eventful year – and that 2016 is likely to be just as busy. Find out what they think about the emissions scandal, their companies’ prospects for the months ahead – oh, and whether they prefer the cinema or the theatre for a night out. It all starts on p38. VITAL STATISTICS On the fourth working day of the month, at 9am sharp, yours truly can be found hitting the refresh button repeatedly on the SMMT website as we aim to be first with the news of the latest UK car registration statistics. It’s a familiar ritual and we always take pride in getting the latest numbers onto the Car Dealer website as quickly as we can. In fact, in January, we might have broken a record, which was a bit of a coincidence as the SMMT stats showed the

same thing – a record number of cars registered in the UK throughout the whole of 2015. Despite concerns at Car Dealer Towers and elsewhere about the level of pre-registration activity, there can be little doubt that the new car market had a hugely successful year and you can get the low-down on pages 8-9. For an alternative take on things, I would also recommend the brilliant Big Mike (p29), who points out that although the new car market might be flying, life at the sharp end of the used car world is as tough as ever. SENSATIONAL SUPPLIERS OK, the ‘new’ year might have lost some of its sheen by the time you read this, but it’s always a good time to explore potential fresh starts when it comes to finding suppliers who can invigorate your business and help you make more money. We’ve got 10 of them to consider in this month’s mag – all of whom have good ideas and impressive track records when it comes to helping UK Automotive plc. The offerings of those companies are explored in quite a bit of detail from p61 onwards – and there are numbers and web addresses of hundreds more businesses in our first ever standalone Suppliers Guide, free with this edition of Car Dealer. You can read more about that project on p12 and we’re sure you’ll find it invaluable. SHE’S BACK Finally, I’d like to welcome Sophie Williamson-Stothert back to Car Dealer Magazine. Sophie has been busy on other projects at Blackball Media for the past little while but has returned to the fold full-time as features editor. If you have any news you’d like to share, something you think we should be investigating, or you’d just like to say how fabulous Car Dealer is, give us a call. We’d be delighted to hear from you. Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

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INSIDE. ISSUE 95 I FEBRUARY 2016

Dashboard Feedback SMMT 2015 statistics

10 18 83

Looking ahead to CDX16

Minister’s support for CDX16 The biggest motor trade expo of its kind in the UK – and organised by your favourite magazine (that’s us!) – has received government backing

Gary Savage interview James Litton Ask CAP HPI Around the World Finance Big Mike

Forecourt It’s celebration time for the world’s best Ferrari dealership

Jeremy Nicholson of Proveeda talks about Car Dealer Club

‘‘

Renault Megane Who can help your business run more smoothly this year?

I feel the FCA is pushing to measure fairness in ways which are in themselves not fair.

Ford Mondeo Vignale Lexus RX

Feature Automotive Influencers 10 for 2016

18 Data File

James Litton

Car Dealer Club Market Insight Taking Stock Auctions Key Notes with Traka Recruitment

Hot Property Long-termers Andrew Evans got behind the wheel of a pre-production Renault Megane GT... but what did he think?

James Baggott

06 08 10 14 18 20 23 24 29

31 33 35

38 61

82 85 87 88 91 93 95 96 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 get involved in this year’s event, call 023 9252 2434.

This year’s CDX will be held at Silverstone on Tuesday, May 24. If you want to get involved, turn to pages 10 and 11 of this edition of the magazine to find out more. CarDealerMag.co.uk | 05

FEEDBACK. Your comments via email to dave@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

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I’m new... I have £120k to invest – what do I do next? Hi everybody, I am new here. I have around 30 years’ experience in this industry selling used cars. I want to start again now as a proper used car dealer investing £120,000. I am looking for a forecourt to rent in the north-west – Wigan / Chorley / Preston / Bolton. I used to buy cars from eBay or from main dealers where I live in Chorley when I used to trade from home selling one or two cars a month. Any advice on how and where to buy cars from for a trade price apart from the auctions and main dealers? I want to trade in cars priced from £4,000. What’s the profit I need to add on top of each car? What’s the best way to value the cars please? How many cars will I need to sell a month to cover all my expenses – and what’s the profit I should earn a year for my £120k investment? I want to employ one member of staff only and rent a forecourt for not more than £15,000 a year. Many thanks to all you guys. Any advice really appreciated. sam62 With the greatest of respect, if you’re having to ask questions, should you be investing £120k of your own money? andymc1973 How many cars do you want to stock? It will determine how many staff you need. If your average buy is £4k, that’s 30 cars for your £120k. You will need a minimum of two people helping you. BORO PAUL I don’t see why you would need to inject £120k to get a business off the ground. Rent a small unit to get going on an easy in-out lease. Get maybe 10 cars on the go and let it go from there. I would say £50k would be more than enough. As things start to move, then reinvest to build. Max Branning Is £120,000 enough to start up from scratch and

fill a large pitch and service everything? Or would 10 cars and an easyish in-out, without needing to go limited, be a better solution? s&b Rough monthly costs I’d say, for £120k worth of stock: advertising anywhere from £500 to £3,000 depending the route you take; wages £1,200£2,000 depending on quality of staff; valeting – guessing you will outsource this so £1k a month maybe?; insurance (road cover, stock, public liability, employer’s liability) £500 a month; rates £500 per month?; rent £1200 per month; utilities £200-£300 per month; wages for you £XXXX depending how much you want to earn. We’re already at £8k, maybe £10k, a month without other costs that crop up such as vehicle prep, garage bills etc. Then every three months the VAT man will come knocking for circa £6-£8k? See Cars Derby

What were the highlights of the year 2015 for you all? Focus on the highs not the lows. RS Car Sales Career and industry highlights: l Winning Car Dealer Magazine’s ‘Dealers’ dealer award’ in London in November. l Winning highly commended in the ‘Used Car Dealer of the Year Award’ (50-100 cars) for the second year running. l Meeting so many nice people in the trade over the last 12 months. l Managing to turn this year around despite the NE of Scotland experiencing one of its biggest declines in recent years due to the collapse of the oil and gas industry, resulting in 70,000 job losses. l Increasing turnover and profit! l Cracking Facebook – which has now resulted in almost 90 cars sold via social media. l Retaining all my staff for another 12 months, including taking on a new apprentice technician. l Opening a sports and prestige car sales area within Jim Reid Vehicle Sales, ‘ReidLine Performance’. l Being interviewed for MotortradeRadio.com Podcast 3 times. l Busting our finance turnover target again!!! All this achieved without advertising a single car on AutoTrader! jimreidvehicle For six years I have traded and cut my teeth with partners, and for a couple of years as part of a trio. During 2015, I was able to break away and set up on my own 100 per cent – make my own decisions and also my mistakes. Yes, I owe the bank some dosh but it’s been a good year overall. See Cars Derby The best thing has to be being able to bring my grandson into the business as an apprentice, seeing him grow and put the hours in. That’s been the best reward, it means it’s all been worthwhile as it’ll all be his sooner or later. RH Trading

Picture of the month

Twitter threads of the month SsangYong UK car & LCV registrations up 117% & 41% respectively in ’15 – feeling positive for 2016 too! #SMMT SsangYong Motor UK @SYMotorUK

Thank you to Charlotte @ArnoldClark Chesterfield for making my mum’s birthday magical. Amazing customer service. amy jasiewicz @amyjasiewicz

Ordered my NEW CAR! @HaroldwoodAudi @essex_audi Thanks for all your help & keeping me mobile until my beast arrives! Lucy Mecklenburgh @lucy_meck

New Chevy Bolt is the latest example of emerging competition for Tesla. Wall Street Journal @WSJ

Car buyers used to ask about horsepower. Now it’s all about tech. Los Angeles Times @latimes

Happy Birthday to Hazel Jones from our Doncaster dealership! Hope you have a great day! Perrys @perrysmotors

06 | CarDealerMag.co.uk

Best bits of 2015, folks?

Remind you of anyone? We were (obviously) thinking of Freddie Mercury – y’know, ‘I Want to Break Free’ etc. Kind of appropriate for advertising sales guy Cliff actually – he’s broken free from Car Dealer and is now focused on our sister title Workshop. He was helping clean the office in readiness for a VIP visitor.

It’s where we place your business. We build our business around yours by continually placing your needs and those of your customers at the heart of everything we do. That’s why we believe we’re the best choice for award-winning services.

FI N A

DEALER RECOMMENDED

2016

MP A N I ES

AM DeAler recoMMenDeD for finAnce 2016

UK - GAMecHAnGer of THe YeAr (MoTor finAnce) BlAcK HorSe finAnce

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blackhorse.co.uk/dealerportal CarDealerMag.co.uk | 07

DASHBOARD.

It’s a record breaker! Market rises 6.3pc to exceed expectations ‘Past four years have seen a remarkable period of sustained growth’

K new car registrations for 2015 beat 2.6 million units for the first time, sealing four years of consecutive growth. The market has posted increases in all bar one of the past 46 months and a bumper December – the biggest ever, up 8.4 per cent – saw 180,077 new cars registered. Overall, the market rose 6.3 per cent in 2015 to 2,633,503 units – exceeding forecasts and outperforming the last record year in 2003 when 2,579,050 new cars left the UK’s showrooms. This is only the fourth time that the market has surpassed 2.5 million vehicles in a full year. Growth was enjoyed across all sectors, with UK fleets boosting demand by 11.8 per cent to reach an all-time high of 1.3 million units. Appetite in the private sector, meanwhile, was also robust, up 2.5 per cent. Gains were reported across all fuel types, with petrol and diesel registrations up 8.4 per cent and three per cent respectively with equal market shares. Alternatively-fuelled vehicle (AFV) demand, meanwhile, grew 40.3 per cent, securing the biggest ever market share of 2.8 per cent for a year. Plug-in hybrids experienced strong growth, with volumes more than doubling, while pure electric vehicles saw an uplift of around 50 per cent. Mike Hawes, SMMT chief executive, said: ‘The new car market defied expectations in 2015, hitting an all-time record driven by strong consumer and business confidence. ‘Buyers took advantage of attractive finance deals and low inflation to secure some of the most innovative, high-tech and fuel-efficient vehicles

by DAVE BROWN @CarDealerDave ever produced. The past four years have seen a remarkable period of sustained growth, and the outlook remains positive with every reason to expect the market to hold broadly steady in 2016.’ Sue Robinson, director of the National Franchised Dealers’ Association, said: ‘Strong new car sales like this will have a lasting positive impact on the UK economy as all the new cars of today need to be serviced in the years ahead. ‘This is also a positive indicator for the UK job market, with 500,000 people in the UK employed in servicing cars, relative to the 200,000 employed manufacturing them.’ Rupert Pontin, head of valuations at Glass’s, said: ‘As predicted by Glass’s over a year ago, 2015 new car registrations have exceeded 2.6 million units, which is fantastic news for the industry and demonstrates the strength of the UK market. ‘Growth will continue through 2016 and Glass’s expect a three per cent increase during the course of the year as the economy continues to grow and consumer confidence extends further. ‘Total registrations for this year will be in the region of 2.71 million and the growth is likely to be driven by ever-more-appealing PCP schemes. ‘The one word of caution is that as an industry, we need to understand the impact of pre-registration and the effect it may have on used car values during 2016.’

SMMT sales data

TOP

BEST-SELLING MANUFACTURERS OF 2015

335,267

Ford

Vauxhall 269,766 Volkswagen 223,784 BMW 167,391 Audi 166,709 Nissan 153,937 Mercedes-Benz 145,254 Peugeot 104,249

BOTTOM

WORST-SELLING MANUFACTURERS OF 2015 Bentley

1,379

Infiniti

1,195

Aston Martin

949

‘Surely new car sales figures will plateau now’

Lotus

375

Chrysler

THE record-breaking 2015 figures will herald a levelling-off of the market, according to a leading industry figure. John Leech, UK head of automotive at KPMG, the global audit, tax and professional services network, said: ‘With new car sales rising 8.4 per cent in December, 2015 broke the all-time sales record for new cars, as we had predicted. The new car market grew by 6.3 per cent, fuelled by strong consumer confidence, cheap transaction prices and the availability of cheap credit. ‘With UK consumer confidence for major purchases finally back to pre-financial crisis levels, UK new car sales have surely reached their plateau.

137

Chevrolet

Mia

Perodua

Proton

Saab

08 | CarDealerMag.co.uk

‘Sterling was 12 per cent higher compared to the Euro on average in 2015 which enabled vehicle manufacturers to offer higher incentives to consumers and dealers alike throughout 2015, and this is set to continue in the first quarter of 2016. ‘Cheap finance in the form of PCPs remains attractive and the strength of used vehicle residual values has meant that many car manufacturers have bought back cars well before the PCP deal has expired, further accelerating sales in 2015. ‘It is unlikely all these factors will recur again throughout 2016 so my forecast is that new car sales will slip back one per cent in 2016, with the first half of the year stronger than the second.’

Why the registrations figures arenâ&#x20AC;&#x2122;t good news for the whole of the UK bit.ly/SMMT-95

Full-year figures for the whole of 2015 December 2015

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

2015

177 374 65 9,144 95 17,181 2 0 4,775 2,003 1,357 4,235 23,261 2,794 5,271 66 1,919 759 3,466 4,966 894 17 69 2,228 8,892 283 0 7,370 1,493 9,775 0 6,587 555 0 6,003 0 2,085 4,809 652 194 302 1,948 4,769 20,830 14,415 3,567 18 412 180,077

% market share 0.10 0.21 0.04 5.08 0.05 9.54 0.00 0.00 2.65 1.11 0.75 2.35 12.92 1.55 2.93 0.04 1.07 0.42 1.92 2.76 0.50 0.01 0.04 1.24 4.94 0.16 0.00 4.09 0.83 5.43 0.00 3.66 0.31 0.00 3.33 0.00 1.16 2.67 0.36 0.11 0.17 1.08 2.65 11.57 8.00 1.98 0.01 0.23

TOP

SELLING CARS OF 2015

Figures supplied by SMMT

December 2014 2014

126 329 73 8,013 108 12,445 0 149 5,182 1,503 0 3,996 20,509 3,460 4,578 79 1,356 320 3,907 3,652 709 5 106 1,715 7,774 128 0 7,172 1,362 8,762 0 5,509 813 10 5,162 0 3,892 4,615 13 76 229 2,053 5,687 23,162 14,475 2,723 36 225 166,198

% market share 0.08 0.20 0.04 4.82 0.06 7.49 0.00 0.09 3.12 0.90 0.00 2.40 12.34 2.08 2.75 0.05 0.82 0.19 2.35 2.20 0.43 0.00 0.06 1.03 4.68 0.08 0.00 4.32 0.82 5.27 0.00 3.31 0.49 0.01 3.11 0.00 2.34 2.78 0.01 0.05 0.14 1.24 3.42 13.94 8.71 1.64 0.02 0.14

1 Ford Fiesta 133,434 2 Vauxhall Corsa 92,077 3 Ford Focus 83,816 4 VW Golf 73,409 5 Nissan Qashqai 60,814 6 VW Polo 54,900 7 Vauxhall Astra 52,703 8 Audi A3 47,653 9 Mini 47,076 10 Vauxhall Mokka 45,399

Whole year figures

2015

% change 40.48 13.68 -10.96 14.11 -12.04 38.06 0.00 -100.00 -7.85 33.27 0.00 5.98 13.42 -19.25 15.14 -16.46 41.52 137.19 -11.29 35.98 26.09 240.00 -34.91 29.91 14.38 121.09 0.00 2.76 9.62 11.56 0.00 19.57 -31.73 -100 16.29 0.00 -46.43 4.20 4,915.38 155.26 31.88 -5.11 -16.14 -10.07 -0.41 31.00 -50.00 83.11 8.35

2,743 5,069 949 166,709 1,379 167,391 12 137 80,012 26,228 8,614 64,257 335,267 53,417 88,117 1,195 23,954 10,794 78,489 66,574 13,269 375 1,434 45,504 145,254 3,152 0 63,581 22,693 153,937 0 104,249 12,167 0 75,618 0 47,654 74,692 8,455 3,344 3,455 34,437 98,709 269,766 223,784 43,432 701 2,534 2,633,503

% market share 0.10 0.19 0.04 6.33 0.05 6.36 0.00 0.01 3.04 1.00 0.33 2.44 12.73 2.03 3.35 0.05 0.91 0.41 2.98 2.53 0.50 0.01 0.05 1.73 5.52 0.12 0.00 2.41 0.86 5.85 0.00 3.96 0.46 0.00 2.87 0.00 1.81 2.84 0.32 0.13 0.13 1.31 3.75 10.24 8.50 1.65 0.03 0.10

2014

1,642 5,523 864 158,987 1,472 148,878 2,774 1,982 83,397 23,862 0 67,162 326,643 53,544 81,986 746 18,401 3,909 77,525 56,200 11,572 235 1,194 37,784 124,419 2,326 5 53,661 15,805 138,338 29 103,566 9,160 11 66,334 3 53,512 75,488 4,342 1,542 2,793 37,395 94,012 269,177 214,828 41,066 774 1,567 2,476,435

% market share 0.07 0.22 0.03 6.42 0.06 6.01 0.11 0.08 3.37 0.96 0.00 2.71 13.19 2.16 3.31 0.03 0.74 0.16 3.13 2.27 0.47 0.01 0.05 1.53 5.02 0.09 0.00 2.17 0.64 5.59 0.00 4.18 0.37 0.00 2.68 0.00 2.16 3.05 0.18 0.06 0.11 1.51 3.80 10.87 8.67 1.66 0.03 0.06

% change 67.05 -8.22 9.84 4.86 -6.32 12.44 -99.57 -93.09 -4.06 9.92 0.00 -4.33 2.64 -0.24 7.48 60.19 30.18 176.13 1.24 18.46 14.66 59.57 20.10 20.43 16.75 35.51 -100.00 18.49 43.58 11.28 -100.00 0.66 32.83 -100 14.00 -100.00 -10.95 -1.05 94.73 116.86 23.70 -7.91 5.00 0.22 4.17 5.76 -9.43 61.71 6.34

Ups&downs +12.44% Year-on-year to December 2015 BMW

Seat

-10.95% CarDealerMag.co.uk | 09

DASHBOARD.

Minister gives her backing to CDX: ‘It will be remarkable’ MP takes time out of her busy schedule to have a tour of our offices and gives her backing to our conference and expo by DAVE BROWN @CarDealerDave

government minister has given her backing to CDX16 – the biggest motor trade event of the year, organised by Car Dealer Magazine. Caroline Dinenage, the MP for Gosport – the Hampshire town in which Car Dealer is based – went on a tour of our offices. She was given a behind-the-scenes insight into our annual conference and expo at Silverstone, including plans for this year’s event on May 24, and said she was keen to encourage other government ministers to attend. Last year, star names such as racing drivers Tiff Needell and Sam Tordoff, as well as TV presenters Mike Brewer and Louise Goodman, rubbed shoulders with more than 1,500 motor trade professionals at the fantastic free event. CDX16 promises to be bigger and better this year, with scores of suppliers from across the automotive retail sector showcasing a dazzling array of products and services. The expo halls will be filled with more suppliers in one place than anywhere else in the UK. Dinenage, the minister for equalities in the current government, said: ‘CDX16 sounds like it will be a remarkable event and one which the motor trade will get a lot out of. An event like this encourages growth and increases trade in the industry, which I fully support.’ During her visit, Dinenage also met some of

James Baggott, the managing director of Blackball Media, which publishes Car Dealer Magazine, shows equalities minister Caroline Dinenage around our offices in Gosport, Hampshire the team of expert automotive writers, designers and videographers behind CDX15, and learnt about all the other work carried out by staff at Car Dealer’s parent company, Blackball Media, which includes public relations. James Baggott, Blackball Media founder and managing director, said: ‘We’re grateful to Caroline Dinenage for taking some time out of

her busy schedule to visit our offices to see what we do. We’ve got big plans for the future, which means even more rapid growth. ‘Car Dealer Magazine keeps going from strength to strength, while CDX16 has turned into a must-go-to event for anyone associated with the industry. To get her support is great and we were delighted to show her round.’

‘CDX16 sounds like it will be a remarkable event and one which the motor trade will get a lot out of.’ Caroline Dinenage, MP for Gosport

250 so far! Have you confirmed your attendance as a CDX delegate? A TOTAL of 250 delegates have signed up for free places at our 2016 Car Dealer Expo within just a few weeks of the tickets going live. Demand to be at the UK’s answer to NADA has been amazing. Taking place on May 24, 2016 at the iconic Silverstone racing circuit, CDX16 – sponsored by GForces – is the BIGGEST retail motor expo in the UK and will have: l More than 100 motor trade suppliers l More workshops to help you learn new tricks

A variety of inspirational speeches from leading keynote speakers l The biggest names in the motor trade at manufacturer and dealer level appearing on the Car Dealer Stage l Great networking opportunities at manufacturer dealer meetings We’ve had dozens of exhibitors taking stands within a few weeks of them going on sale, with more inquiries coming in all the time. l

Car Dealer Magazine CDX16 – Silverstone, Tuesday, May 24, 2016 10 | CarDealerMag.co.uk

VIDEO: Caroline Dinenage at Blackball Media bit.ly/MPvisit-95

Headline sponsor GForces: Why we’re so proud to be involved again

Just some of the exhibitors who will be present at CDX16 GForces AutoTrader The WMS Group Carwow Moneypenny Karcher Codeweavers CitNOW iVendi GardX Protection Gemini Systems Dealer Auction CAP HPI AA Cars Dragon2000 EMaC

Traka Automotive Onboard Absolute Alignment JudgeService Trusted Dealers BlackVue VSG UK Pro-Align Motor Codes Drivewise CarGurus Bluesky Interactive Autovolo Pentana Solutions Key Tracker

WITH just four months to go until CDX16, our headline sponsor GForces has explained why it is delighted to be associated with the event once again. The company is a leading provider of internet software and services for the automotive industry, and we caught up with Tim Smith, the company’s group strategy director, who told us: ‘It may still be four months away but we’re already looking forward to the event. Anyone who attended CDX15 at Silverstone will remember the impressive line-up of suppliers promoting some pretty exciting products. We built the biggest display stand we’ve ever constructed and packed it full of digital media, including touchscreens, iPads and even a VR headset. Others had touring cars, racing simulators and giant Scalextric sets. ‘Well, just like the event itself, in 2016 we’re returning with something bigger – much bigger. Put simply, our stand is huge and will contain a vast array of technology and interactive features for delegates to experience. ‘We’re debuting some amazing new products and services, which we hope will capture the imagination of those attending.’ Smith, pictured here addressing CDX15, added: ‘Last year’s expo was the stand-out event for GForces in 2015 and we were proud to be a part of it. ‘This year promises to be bigger and better – it’s not to be missed!’

‘Anyone who attended CDX15 will remember the impressive line-up of suppliers promoting some pretty exciting products.’ Tim Smith

Book your FREE tickets at cardealermagazine.co.uk/events/cdx16/ CarDealerMag.co.uk | 11

DASHBOARD. ARNOLD CLARK

UK’s biggest Renault outlet ARNOLD CLARK has opened the biggest dealership in the entire Renault Group UK dealer network. The flagship franchise on Hillington Industrial Park in Glasgow measures 15,823 sq ft and has a 23-car showroom. It adjoins Arnold Clark’s new, 90,000 sq ft Renfrewshire headquarters and further strengthens the long-standing relationship of Europe’s largest independently-owned automotive retail group with Renault Group UK.

McLaren Automotive appoints its sixth UK retailer bit.ly/McLaren-95

Suppliers Guide will be your essential industry directory Free supplement launched encompassing all aspects of the motor trade

inding new suppliers to expand your business can be one of the hardest things to do. Often you’ll be relying on word of mouth, and unless motivated by poor service you might not consider changing at all. There may even be aspects of your business

by ANDREW EVANS @snavEwerdnA

that you haven’t considered would be improved by an outside agency. With this in mind, the Car Dealer team has created the essential directory to motoring industry trade suppliers, with more than 400

AUDI

Brand director’s degree triumph AUDI brand director at Marriott Motor Group Mark Dockerill, above, has achieved a Master of Business Administration degree from Loughborough University. Dockerill has become the first person in the Audi UK network to reach such an achievement through Audi’s LEAD senior manager development programme. He said: ‘It was, without doubt, the biggest personal challenge I have embarked on to date.’

NISSAN

Sales surge hailed as ‘fantastic news’ A LEADING south-west and south Wales car dealership group saw a surge in new Nissan sales last year. Wessex Garages, which has dealerships in Bristol, Gloucester, Cardiff and Newport, saw a 46 per cent increase in new Nissan car sales from January until September 2015, compared with the same period the previous year. MD Keith Brock said: ‘This is fantastic news.’ 12 | CarDealerMag.co.uk

companies that provide products and services to enhance all areas of your business. Our comprehensive guide to automotive trade suppliers for 2016 is included within this issue of Car Dealer Magazine. This 52-page supplement contains contact details for the best suppliers across the motoring industry, in an A-to-Z directory of products and services. The suppliers we’ve included encompass all aspects of the motor trade, from finance and warranties through to recruitment and property. We cover training solutions, vehicle logistics and trade bodies, workshop products, tyres and parts and even website design, video and digital marketing among the host of services. At the back you’ll also find our ‘10 for 2016’ section, focusing on 10 key companies we think you should be working with this year to help develop your business. However, with more than 400 suppliers listed within its pages, the Car Dealer Automotive Industry Suppliers Guide 2016 will be your essential guide to companies that can provide you with services and products for the year ahead. Car Dealer managing director James Baggott said: ‘The Suppliers Guide is a new venture for Car Dealer Magazine and it’s something we’re really excited about. The 2016 guide is the first one we’ve put together. ‘Containing more than 400 suppliers who can help car dealers of any size improve their businesses, it’s going to be an essential directory for anyone in the motor trade.’ 10 for 2016 also appears in this edition of Car Dealer, p61

Deal sees Motorline go from strength to strength ONE of the south-east’s largest motor retail groups, Motorline, has acquired its second Peugeot dealership in the region with the purchase of the former Robins and Day business in Rochester. Located in Rochester High Street, Motorline Medway Peugeot features the latest and full range of Peugeot models, including the awardwinning 308. Robert Hendry, operations director

at Motorline, said: ‘We are delighted to welcome the team at Rochester into the Motorline Group and look forward to maximising the opportunity to develop the business. ‘This is an exciting time for us as we continue to expand our dealership network in the south-east.’ Heading up the newly-acquired dealership will be Brett Tomlin, who has been transferred across from

Motorline Peugeot Canterbury and promoted to general manager. Future plans for Motorline Medway Peugeot involve relocating the dealership to a new state-of-the-art facility in the Medway towns. Founded in 1972, the Motorline Group now represents 10 leading car manufacturers, with dealerships across the south of England and south Wales.

Just press pl y New car model reveals Now available through YouTube TrueView advertising. Generate emotion in new car buyers with broadcast quality, high-impact, low-cost videos that express the design and excitement of your product. New Car Model Reveals increase dwell-time, engagement and conversion. Leave a lasting impression.

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CarDealerMag.co.uk | 13

DASHBOARD.

Mercedes boss: ‘I don’t want JAMES BAGGOTT finds the MD of the premium German manufacturer’s UK arm in a no-holds-barred mood as he discusses the past, present and future

hen you’re at the head of a premium car company, one would imagine the stress and strain could sometimes get pretty intense. However, Gary Savage, managing director of Mercedes-Benz UK, has a rather unique way of winding down after a day crunching numbers – mucking out his chickens. ‘I don’t think I ever really switch off, but I do have an incredible distraction,’ Savage revealed. ‘I have a smallholding on which I keep pigs, goats, sheep and donkeys – it’s just north of Towcester. I was cleaning the chickens out yesterday and thought to myself, “I wonder how many people at work would ever think that I would be there with my head in a chicken coop scooping this out.”’ Not many, we’d guess. It’s certainly a unique way for a car manufacturer MD to wind down and appears to be working. Sitting round a coffee table made from two alloy wheels signed by the firm’s best-paid company car drivers (Lewis and Nico, if you’re wondering), Savage seems comfortable and relaxed and seemingly willing to talk openly about any subject. His office is on the top floor of the company’s impressive head office in Milton Keynes and overlooks the reception area and car park. ‘I’m a glorified car park monitor,

really,’ he jokes, when I mention his ‘impressive’ view. Flanked by his PR man – who takes as many notes as I do – Savage settles into our chat quickly. Riding high on securing first place in the recent NFDA Dealer Attitude Survey and buoyant sales figures for 2015, he is keen to talk about how happy his network is with representing the premium manufacturer. ‘One of our real strengths is the fact we have 20 dealer partners across 32 market areas and that means we are able, as opposed to getting 200 dealers in a room like other manufacturers have to, to get 20 partners in a room and have a

Gary Savage in his smallholding – and his wellies 14 14| |CarDealerMag.co.uk CarDealerMag.co.uk

genuinely meaningful discussion,’ he said. ‘A few weeks ago I was able to make a very informal, almost one-on-one presentation to our investors on what our growth has been and what our future aspirations are, and I could do that in a very intimate environment. We were in a lounge, not a national conference centre – and I think that’s the real difference. ‘Back in 2010 we were 16th in the NFDA survey – now we’re number one. Without the strength of our partners that we have, without their ability to invest, without their alignment, we simply wouldn’t be able to achieve what we

to be a pre-registration denier’

achieve today.’ Savage points out that MercedesBenz has been growing rapidly too. By the end of 2015 the firm had sold around 22,000 more cars than it had in 2014. ‘There’s isn’t a single other manufacturer in the UK that grew by that number of vehicles,’ said Savage. The maker is still trailing its rivals in total sales volume figures, though. Despite growing by 16 per cent compared with 2014, Mercedes finished in bronze place with 145,254 registrations in 2015. BMW was first with 167,391 sales and Audi a very close second, notching up 166,709 – just 682 cars off the top spot. That 16 per cent leap for

Mercedes isn’t to be sniffed at. BMW managed 12 per cent while Audi grew just four per cent when compared with 2014. But with this rapid growth comes the need for balance. Just how does Mercedes – and the other makers in the top three – manage to keep a premium feel for customers when it is potentially moving into volume segments? For the record, all three outsold former ‘volume’ players Peugeot and Citroen by 60,000 cars…

‘We’ve seen no deterioration in how our customers rank the brand in terms of premium and prestige,’ says Savage. ‘It’s still a brand that people aspire to, even though it’s more accessible these days. ‘We’re able to make Mercedes more accessible through monthly payments. But this is a brand that’s 130 years old – we invented the car, so we invented the industry in many respects.’ Savage likens the experience of buying

‘We’ve seen no deterioration in how our customers rank the brand in terms of premium and prestige. It’s still a brand that people aspire to, even though it’s more accessible these days.’ CarDealerMag.co.uk | 15

DASHBOARD.

a Mercedes to buying groceries at Waitrose – some customers who buy an A Class in the volume segment expect a premium experience, like buying their shopping from the premium supermarket as compared to Lidl. But at the same time Savage says the brand needs to still offer ‘boutique’-style experiences for those customers shelling out for its higher-end cars, such as AMG models. ‘Being a premium brand is as much about delivering a premium service as it is about premium cars – and our retailers are doing just that,’ explains the MD, expressing the point with solid hand gestures. Savage certainly seems fired up as he speaks about his dealers and the brand’s success and his answers are long and detailed. As he’s in the mood for talking, I quickly move on to ask his thoughts on pre-registrations. ‘I think pre-registrations are a component of this market and I don’t want to be a pre-registration denier,’ said Savage. Seems he really is in the mood for talking… ‘Part of what we have to deliver is hitting the sales targets that we are set and the aspirations of the business globally for this country. ‘The monthly target for me is the most important we have and it’s a priority that we hit it and we put everything in place to ensure that the network can do that.’ Savage explained that when he arrived at Mercedes, he changed things from quarterly targets to monthly to help ease the pressure that dealers felt at the end of a quarter. ‘The level of pre-registration that our network is having to undertake to hit its targets has diminished considerably,’ revealed Savage. So is this a first? A manufacturer boss openly 16 | CarDealerMag.co.uk

Gary Savage, above left, describes his smallholding as ‘an incredible distraction’ admitting that they’re pre-registering cars is certainly something I thought I’d never hear. What’s more, now it’s written down it feels even more shocking. However, Savage stresses he doesn’t think pre-registrations are a problem – or certainly anything new. He likened it to technology customers – some want box-fresh, some are happy to buy refurbished from a manufacturer, others are comfortable with buying used from eBay. His point being that customers are happy to buy nearly-new products such as pre-registered cars if they know they’re getting a discount to do it and are still buying from a reputable dealer. Savage explained: ‘There are many categories of customer now and the customer knows what type he is. There are those who buy new and there are customers who will buy deliverymileage cars, while there are customers buying three, five and 10-year-old cars. The market is in good health because in the end these cars are all being sold.’ The Mercedes boss also pointed out that despite this, his network has improved its return on sales from 1.7 per cent to 2.2 per cent – which is undoubtedly an impressive figure. Changing topics, I wonder what Savage made of the VW emissions scandal. As a contemporary German manufacturer boss, did he think that his neighbours just down the road in Milton Keynes

handled the crisis well? Despite being warned off answering by his PR chief, Savage still does. ‘I have great admiration for Paul Willis [VW Group MD], from a peer-to-peer perspective, for the way he handled the parliamentary select committee. I thought he did that incredibly well and incredibly professionally. He was clearly very well prepared.’ The Mercedes boss doesn’t think the crisis is over yet, though, and says there is still a danger of it rubbing off on other brands. ‘We’re not through this yet – we’re in the middle of it,’ he said. ‘It rubbed off on the industry as a whole – not just the German brands. ‘It was contagious and moved very quickly from emissions to miles per gallon. It’s not been good for the industry and our colleagues over the road have had to cope with quite considerable disruption, particularly their network.’ So he must have been very happy Mercedes came out early and stated that its cars weren’t affected. ‘I’m delighted our business has been so utterly unequivocal in categorically saying that it’s something that we’ve not been involved with or undertaken,’ he said. ‘I was delighted the board was able to say that and it was a good thing to tell customers.’ So what’s next for the brand? Is there anything that keeps Savage up at night, other than his

‘The level of pre-registration that our network is having to undertake to hit its targets has diminished considerably.’

AMG HAS A VITAL ROLE TO PLAY

chickens? ‘Actually, I’m in a blessed position. I don’t have a lot that worries me,’ he says. ‘We have a lot of opportunity and real momentum, so what I’m completely consumed with is ensuring that we keep that going. ‘When I look back to 2010, we had a real parent/child relationship with our dealers and I said they will judge me on whether that changes. I have never enjoyed that type of relationship. I think that has changed. ‘I strive for simplicity now. That might mean taking 10 pages out of a PowerPoint presentation and it means that all our letters are always on a single page, but we are incredibly consistent, always incredibly clear and we’re always incredibly authentic in what we do.

‘I think that pays off and means we continue to have the opportunity that we currently enjoy.’ It’s clear Savage has a strong team around him and he’s quick to point out the hard work his dealers do makes his life a hell of a lot easier. ‘I think everyone works very hard and everyone puts in a lot of hours,’ he says. ‘I’ve got a very committed and dedicated team. ‘I know everyone will tell you their teams are great, but sometimes you are just fortunate to be somewhere – and I’ve only been there twice in my career – where the planets align, where it all just clicks, and that moment is at Mercedes-Benz right now. It’s quite remarkable.’ [CD]

MERCEDES boss Gary Savage is pinning his hopes on considerable growth for its AMG performance arm in 2016. Cars such as the 469bhp C63 AMG pictured here and on our cover will play a vital role in increasing the brand’s sales volumes even further. ‘AMG was one of those names appreciated by a few and known by a few,’ said Savage. ‘We sold fewer than 800 only about five years ago. I made a speech in 2010 about the great undiscovered opportunities of AMG from both a sales perspective and from a brand-enhancing perspective. ‘We appointed a great marketer in David George, who used the AMG brand to advertise the range. When we launched E Class we launched it with the E63. As a result, we freed up the stocking, we freed up the demonstrator plans and we now sell more than 4,000 AMG models a year.’ Savage tells me the best-selling model in the range is the A45 AMG, but the new C63 AMG will overtake that in 2016. The UK already accounts for some 45 per cent of AMG sales, and C63 Coupe sales here will take an impressive 85 per cent of the production. Savage explained that a new subdivision of AMG will be added, with models using the three-litre twin turbo engine badged ‘43’. This, he believes, will add even more sales to the AMG tally. Savage said: ‘There’s still a lot of opportunity, but overall what I’m really pleased about is that AMG is now absolutely embraced by the entire network as a very big opportunity and as something that gives the brand real appeal.’ CarDealerMag.co.uk CarDealerMag.co.uk| |17 17

DASHBOARD.

Ford announces SYNC connectivity system expansion in America bit.ly/SYNC-95

James Litton TRADER TALES

Measuring ‘fairness’ can itself be unfair

HR Owen named the world’s best Ferrari dealership This is such a proud achievement, says brand director

R Owen Ferrari is officially the best Ferrari dealership in the world, having been named Ferrari Dealer of the Year ahead of a hugely competitive set of more than 200 global retailers. The latest award means that HR Owen Ferrari is now both the world’s biggest and best Ferrari dealership. The London-based business picked up the Global Ferrari Dealer of the Year accolade at the carmaker’s world dealer conference, held in Italy late last year. As well as the honour and recognition of being named the very best dealer of one of the world’s most famous brands, the dealership was also awarded a 2015 Ferrari F1 car as part of the prize. Every Ferrari dealer in the world aims to give buyers and owners a high-quality experience, and sets a high standard of customer care. All dealers were eligible

for the closely-fought and highly-soughtafter award, but HR Owen Ferrari emerged as a clear winner. The dealers are rated across all areas of the business, and all are assessed using the same scorecards. The 2015 SF15-T Ferrari F1 car that was awarded to the winning dealer is now on display at the HR Owen site in Old Brompton Road in South Kensington. The car stopped traffic and turned heads when it was delivered, with passers-by pausing to take photos of the unusual sight of an F1 car on London’s streets. James Champion, HR Owen’s Ferrari brand director, hailed the dealership’s achievement, saying: ‘To become a Ferrari dealership in the first place requires exemplary service in all areas, so to be named the best of an already impeccable set of dealers is one of our proudest achievements to date.’

New Skoda director takes over DUNCAN Movassaghi took over as director of Skoda UK at the start of the year, replacing Alasdair Stewart who leaves to take up a senior position within Volkswagen Group UK. Movassaghi, 41, was previously head of service and parts operations for Volkswagen Passenger Cars, a position he had held since April 2014. Since joining the Volkswagen Group in 2010, 18 | CarDealerMag.co.uk

Movassaghi has also been head of sales operations for Skoda UK, leading the brand’s sales through a period of record growth. Before that, he fulfilled a number of senior management roles within the pharmaceutical and banking sectors. Movassaghi said: ‘I’m excited to be returning to Skoda. The development of the brand over the past few years has been extremely impressive.’

reating customers fairly is not just something that the FCA tells me to do, it is an underpinning philosophy which affects many of my commercial decisions. However, in recent months, I have become increasingly aware of how subjective the term ‘fair’ actually is. My rule of thumb – as for many of you, no doubt – is, what would I expect if I was a customer in a given situation? A quick Google search for the definition of fair reveals even more complexity: ‘treating people equally without favouritism or discrimination’. OK, surely the most successful managers are able to remain objective and consistent in all of their business decisions? Why would it need a guideline from a government body? If you consider the adverb definition ‘without cheating or trying to achieve unjust advantage’, there are rogues in every industry who are prepared to cheat for selfish gain, not just in the finance and insurance sectors. Given how many banking, pension and insurance scandals we have experienced in the last 20 years, I understand why our F&I business is under scrutiny, but I feel the FCA is pushing to measure fairness in ways which are in themselves not fair. We operate in a free market economy and profit is not a dirty word. My colleague attended a recent F&I compliance conference. During the day-long seminar, he was told that it could be deemed ‘unfair’ to make a profit equal to twice or three times the cost of the insurance product. If a retail customer is prepared to accept a product offer at a certain price, surely the market dictates what is fair. The recent surge in online GAP sales is a testament to market dynamics. It should be left to market forces, not legislation. The other contentious debate centred around the structure of a finance agreement being fair, for example whether someone knew they were having personal contract hire instead of PCP given the restrictions if a customer attempted to exit the agreement early. The onus would then be with the retailer to accept a vehicle return with no cost to the customer. On the proviso they have had adequate explanations and the agreement to sign, how does this become the dealer’s responsibility? I appreciate that there are many brokers, dealers and lenders who perhaps do not treat customers fairly, but the social media-savvy public will find these people and the market will give them what they deserve.

‘There are rogues in every industry who are prepared to cheat.’

Who is James Litton? James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves.

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VW sued by US government over emissions scandal bit.ly/vwsued-95

Ask CAP HPI

Mark Robinson: ‘Acquisitions cement our relationship with Toyota’

YOUR QUESTIONS ANSWERED

Do your own check – don’t rely on an old one

Vantage expands as it acquires three sites from Lookers £13m deal will see annual turnover pass the £200m mark

antage, the fast-growing motor retailer, has expanded its portfolio of dealerships to 25 across the north and midlands with the acquisition of two more Toyota sites and a Lexus outlet in Yorkshire. All the dealerships, Toyota and Lexus in Leeds and Toyota in Wakefield, were formerly operated by the Benfield Group which was recently acquired by Lookers plc. They take the total number of Vantage Toyota dealerships to 12, making it one of the largest Toyota groups in the UK. The deal will also see group staff numbers rise from 500 to 600 and annual turnover pass the £200 million mark. Vantage paid £12.68 million for the three dealerships and will invest a further

£1 million in upgrading the sites. Mark Robinson, the founder and managing director of Vantage Motor Group, which is headquartered in Harrogate, said: ‘This is not about doing deals for the sake of doing deals but because they are a perfect fit – strategically, geographically and culturally.’ Robinson, who is also chairman of the Toyota dealer council in the UK, added: ‘These latest acquisitions cement our relationship with Toyota and reinforce our ambition of being a regionally-based, national force in the industry.’ Vantage now represents eight manufacturers: Toyota, Lexus, Kia, Skoda, Citroen, Mazda, Honda and Hyundai. Market insight, p85

GardX teams up with BMW UK GARDX Protection is to become the official supplier of paint and interior protection products to BMW Group UK Ltd, replacing BMW Seal and Protect. The announcement follows a review of the market by BMW UK and feedback from several BMW and Mini retailers on the current product and competition. Richard Price, aftersales director for BMW UK Ltd, said: ‘This partnership provides BMW and Mini retailers with a product that has additional customer and retailer benefits and the full support of the GardX professional account management team.’ 20 | CarDealerMag.co.uk

Victor Coutin, managing director of GardX Protection, said: ‘We are very proud to partner with BMW UK. I have no doubt the product, account management and support that we deliver to the BMW and Mini UK retailers will significantly increase their incremental profit and enhance their customer experience.’ The new BMW and Mini paint and interior protection product will be called Protect X – and the launch was scheduled for January 18. Influencers: Victor Coutin, p55 10 for 2016: GardX, p75

recently part-exchanged a car for a customer and after I’d done the deal I discovered the car was a category C write-off. However, the customer had shown me the HPI certificate from the dealer he’d bought the car from, which said the car was all-clear. The write-off was recorded against the car before the owner had bought it. What’s gone wrong? Sadly, having investigated this further, we know the check that they claimed to have done was not actually conducted with HPI. The dealer had either duped your customer by producing a forged certificate or had been duped himself into buying a provenance check masquerading as an HPI Check. This is all too common – a similar case hit the headlines recently. A motor dealer was found guilty of forging documents to hide a vehicle’s history. Using a forged HPI Check report, this dealer duped an unsuspecting customer into buying a vehicle worth £17,000. It was only when the customer decided to sell the vehicle and conducted their own HPI Check that they found the vehicle was a category C write-off. We take instances of dealers using fake HPI Check certificates very seriously and we take action against anyone found using them. In recent months, we have had a spate of eBay sellers using genuine HPI Checks and remarketing them directly to consumers. Not only does this breach our terms and conditions, but it’s also a breach of consumer trust, leaving them with none of the protection or guarantees a genuine HPI Check provides. We’ve been protecting the used car market from the threat of used car fraud for over 75 years, but the internet has opened the door to greater opportunity for fraudsters. However, we will take action against those in the industry that claim to offer HPI Checks to their customers, but who in reality offer a very different level of service that does not reflect depth of data we draw upon, or which fails to provide financial peace of mind in the event of data being inaccurate or incomplete. Although most dealers are honest, we urge buyers, be they consumers or dealers, to do their own checks and not rely on past checks. Not only does this mean they know it’s an authentic HPI Check, but they also benefit from the HPI Guarantee, covering them for £30,000 in the event of information being inaccurate. We have a very clear message to the unscrupulous sellers posing as HPI or offering fake HPI Checks: we will do our utmost to protect consumers and traders from these fraudsters and will put a stop to their activities.

‘We will do our utmost to protect consumers and traders from falling foul of these fraudsters.’

Who are CAP HPI?

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

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The Car Finance Company (2007) Limited Registered address 47-51 Kingston Crescent, Portsmouth, PO2 8AA. The Car Finance Company (2007) Ltd is authorised and regulated by the Financial Conduct Authority, Interim Permission number 600168. All finance is subject to status and income. 22 | CarDealerMag.co.uk

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Around the world Dealer news from somewhere other than here

CANADA

Mercedes-Benz Canada says its national dealer network has broken several significant all-time sales records by delivering a total of 44,526 passenger vehicles, vans and smart units throughout 2015. This total represents the best annual sales performance for the group and shows an overall increase of 9.8 per cent, or 3,971 units, when compared with 2014’s record-breaking sales results.

AMERICA

A plumber is suing a car dealership after his traded-in pick-up was pictured being used by jihadists with his business decal still in place. Texan Mark Oberholtzer sold his 2005 Ford F-250 truck to Houston dealership AutoNation Ford Gulf Freeway. It was then sold on and a tweet with a picture of blackclad fighters firing a heavy weapon from the back went viral.

QATAR

A second-hand car dealer in Doha has been awarded the British Empire Medal by the Queen for services to the British community. Tony Porter, originally from Aldridge in the West Midlands, runs Oasis Cars with Jordanian business partner Mamoon Khalil Halawa. He moved to Qatar in 1993 and also runs courses on safe driving.

CHINA

Following China’s plan to overhaul car sales regulations, dealers are to be given more leeway in acquiring new cars – steps that would weaken the power of car makers to decide who can sell their cars and at what price in the world’s largest vehicle market. The Ministry of Commerce has proposed letting dealers sell domestically-made branded cars without permission from manufacturers, and would prohibit car makers from imposing sales targets on authorised dealers.

AUSTRALIA

New car sales soared in Australia last year, with figures reaching a record level. According to the Federal Chamber of Automotive Industries, 1,155,408 new vehicles were sold in 2015. The previous record was set in 2013, when sales reached 1,136,227. In Western Australia and nationwide, the bestselling car was the Toyota Corolla, with 3,691 sold in the state.

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

CarDealerMag.co.uk | 23

FINANCE.

Manufacturers and dealers must embrace intelligence Little doubt that 2016 will be a comfortable year, says Glass’s

Finance has been the core of the car market in recent years, says Rupert Pontin

rowth in the number and variety of finance packages available to private buyers is set to power the new and used car markets in 2016, predicts Glass’s. In the new car sector, which will see growth in registrations of around three per cent, further finance packages will need to stimulate consumer interest and provide new avenues to affordability. However, the real innovations are being seen in the used sector, where a range of PCP products will need to help bring more customers into a market that is starting to see signs of oversupply. Rupert Pontin, Glass’s head of valuations, said: ‘Finance has become the core of the car market in recent years and we are seeing manufacturers, finance providers and dealers all looking to use it as a tool to continue to drive sales forward in 2016. ‘So, in the new car market, we will see more and more competitive additions to the PCP schemes available, alongside higher levels of

support, to ensure that stock keeps selling. This is a continuation of a policy that has proven successful since the worst days of the recession.’ The used car sector was starting to take on an appearance similar to pre-crash levels, Pontin added, with a wider choice and higher volumes perpetuating a shift from a vendor to a seller market in the wholesale sector. This would be true for even the very youngest cars, thanks to high levels of pre-registration. He said: ‘While the trade will see values under higher levels of pressure, the winner will be the retail consumer who will have access to a wider selection of cars to choose

from, coupled with finance packages designed to keep interest high in used stock at a time when new cars look such good value.’ Pontin said that the overall expectation at Glass’s was that while the market as a whole was shifting slightly, there was little doubt that 2016 would be another profitable and comfortable year for the trade. He added: ‘The key for manufacturers and dealers will be to embrace market insight and intelligence to ensure that anybody buying and selling new and used cars can see exactly what is happening at any given time, allowing them to make quick strategic adjustments to their annual plan.’

Now iVendi can deliver ‘the best of the internet’ to you THE latest generation of the iVendi Platform – launched in January – is designed to ‘bring the best of the internet into the showroom’. It builds on previous, successful versions of the product, which were designed to provide a single point through which all dealer online motor finance activities could be managed, by also including sophisticated showroom finance options. The key innovation is a new in-

24 | CarDealerMag.co.uk

showroom finance comparator, which is designed to be used alongside existing elements of the Platform, including the

Quoteware finance quote generator and Car Finance Checker finance comparator – products to which more than 6,000 dealers throughout the UK are now connected. James Tew, pictured, CEO at iVendi, explained: ‘The comparator included in the latest generation of the Platform is designed to bring all of the advantages of an online motor finance offering into a real-world sales environment. 10 for 2016: iVendi, p65

CLOSE BROTHERS

Credit risk director is relishing new challenge CLOSE Brothers Motor Finance has appointed Luke Sugden as credit risk director. Sugden will be responsible for improving dealer service in reviewing risk and enhancing consumer experience of finance applications. He will also have a key role in ensuring compliance, both for Close Brothers Motor Finance and its dealer network, in the evolving regulatory environment the industry faces. James Broadhead, CEO of Close Brothers Motor Finance, said: ‘Since the Financial Conduct Authority assumed responsibilities for the regulation of consumer credit, finance providers and dealers across the industry have been adjusting their operations to ensure consumer expectations are matched, protection is enhanced and compliance is guaranteed. ‘Luke will play a significant role in continuing this work at Close Brothers Motor Finance, as well as further strengthening our dealer servicing.’ Sugden said: ‘Close Brothers Motor Finance is a hugely respected brand and I am delighted to have this opportunity to bring my credit experience and make a difference to the business. I’m relishing the challenge ahead.’

..in association with

It’s important to try to improve – so may the force be with you I

may be that sad guy but on December 17 at 12.01am my fiancée and I sat down in our local cinema to watch those great words ‘A long time ago in a galaxy far, far away…’ followed by a scrolling logo, text and the brilliant theme tune of Star Wars. Yep, that’s right – I went to the opening showing of Star Wars: The Force Awakens at midnight. Needless to say, every film buff, Star Wars geek and cosplay person from around my area was out in force, meaning the cinema was rammed and rowdy. This visit to the cinema got me thinking; just how many times can you rework something? I mean, this

Ben

Garside

‘If they get used to TIME IS coming to your MONEY dealership, they’ll more than likely come back for their next vehicle’ is the seventh edition of the Star Wars franchise and it seems to just be improving episode upon episode! In marketing, we talk about garnishing. This is the process of getting an idea and improving it. So that people like our adverts we do one, trial it, review it and then see how it can be improved. This leads to us doing a slight redesign or addition (garnishing). In car sales, I’m sure you can do the same with your sales techniques and marketing. I’m not a car dealer but the sales and marketing foundations are the same no matter what the market. So, for instance, with building rapport, at some companies this is probably just a simple question, asking

about the customer’s family or friends, usually to help them when they’re looking at what they’re purchasing the vehicle for. But as we know, building rapport is a twoway street. You then need to be personable, giving them the real you. This is so they don’t think you’re just trying to butter them up. You’re more than likely already at this point, so ask yourself what’s the garnish? Maybe it’s about being you more, finding a common ground, or maybe it’s about really questioning them and their reasons for the purchase. Communication is another aspect that garnishing can help, not just when talking face to face but by any medium. For instance, if you currently send a letter thanking them for purchasing a vehicle, then what about garnishing that with a possible voucher for a customer referral or offering a free or reduced price on their next

Turn over page for more finance stories MOT? If they get used to coming to your dealership, they will more than likely come back for their next vehicle. Other areas to assess are adding colour to black and white images, etc. It’s all garnishing. What you should be getting from this article is that I’m going against the grain of the saying ‘If it isn’t broke, don’t fix it’. This is a self-limiting theory to me and shouldn’t be used. Star Wars films could have stopped after the first trilogy, as it was probably the greatest trilogy of all time. They didn’t, though. They went again and now they are going again once more. I’m not saying we’re film-makers, but the essence of trying new things is really important and trying to improve is even more so.

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 | 25

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO... FIVEDOOR COUPES PORSCHE PANAMERA

BMW 4 SERIES GRAN COUPÉ BMW’S 4 Series Gran Coupé was first introduced in the UK in mid2014 and quickly became popular among drivers of larger coupés thanks to its sleek looks and four-door functionality. The German brand is currently offering its 420i Sport Gran Coupé on a £379-a-month contract across four years, with a 4.9 per cent APR and fixed interest rate. A customer deposit of £4,599 is required, to which a centre deposit contribution of £1.074.07 is added, taking the deposit total to £5,673.07. Following the 47 monthly payments, should the customer wish to buy the vehicle outright a final payment of £11,790.05 and £1 option-to-purchase fee will be charged. This means that the total payable by the driver is £34,203.05 – only £2,578.05 more than the on-the-road price of £31,625.00.

PORSCHE’S Panamera has been with us since 2009, with a facelift in 2013 improving the kerb appeal somewhat. With a range of V6 petrol and diesel engines, V8 petrol and a hybrid model, it’s a supremely capable grand tourer. The five-door coupé can accommodate four adults and 445 litres of luggage. You can currently pick up a Panamera 4 PDK – the four-wheeldrive model with Porsche’s dual-clutch automatic gearbox – on a three-year finance offer if you order before March 31, 2016. A customer deposit of £13,600 is backed up with a deposit contribution of £2,500. The customer makes 35 monthly payments of £734.83 and an optional final payment of £35,925.60 - including the £10 option-to-purchase fee - to buy the vehicle. This makes the finance total £75,244.65 against £68,169 on the road.

Most Generous! Four great offers to get 2016 off to a successful start ‘We think there’s something for everyone with these deals’

G Motor UK finished 2015 on a fantastic high last year with December figures more than doubling those of the previous year – a success that came off the back of a number of great deals that were on offer to all new customers. This year, MG has decided to start 2016 with a bang and offer not just one but four deals to its customers. Those looking to buy a new car need look no further as, with the purchase of the MG3 or the MG6, customers will be entitled to some of the following offers: £2,000 minimum part-exchange – Following an incredible uptake by customers at the end of last year, this offer has been extended until the end of January. Hundreds of customers took advantage of this when they exchanged their existing vehicle for a new MG at their local dealer.

26 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave Those who thought they had missed out need only take their old car in, regardless of its make, model or age, and get £2,000 towards a new one. One year’s free insurance – When MG is offering one year’s free insurance on all new 2016 MG3 models, customers won’t be able to resist checking out these great superminis, particularly when the only thing to worry about for the next 12 months is adding fuel. Plus, this offer is also available in conjunction with the next two offers. Free hotel break – There’s no better way to celebrate a new car than with a road trip. So, as well as their new car, all MG customers will receive a £250 Hilton Hotel voucher for them to enjoy a pleasant weekend getaway.

0 per cent APR finance – This popular deal is available on both the MG3 and MG6. Matthew Cheyne, MG’s head of sales and marketing, said: ‘December was a fantastic month for us. ‘We sold 155 more cars in 2015 compared with 2014, which put us in the top five among other manufacturers for biggest growth in December. ‘We are thrilled to be seeing these kind of figures for what would normally be a quiet month. Based on this success, and knowing that we are seeing more and more new customers, we’ve decided to extend some of these offers as well as introduce new ones. ‘We think there’s something for everyone among our latest deals.’

..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?

AUDI A5 SPORTBACK THE Audi A5 Sportback is a well-built, spacious coupé that boasts a selection of capable engines. The car packs a class-leading interior, too. High-quality materials and peerless build standards give the A5 Sportback one of the nicest cabins to sit in for long journeys – particularly at this price. The German car-maker is currently offering its A5 Sportback Black Edition Plus 2.0 TDI 190 PS Manual on a three-year finance offer, with a 5.8 per cent fixed rate of interest and an APR of 5.9 per cent. A customer deposit of £6,751.42 is bolstered by a centre deposit contribution of £4,000, which is followed by 35 monthly payments of £379. The optional final payment for the A5 Sportback is £15,712.93, plus an option-to-purchase fee of £10. In total, the finance buyer will have spent £35,739.35, in comparison with the model’s OTR price of £35,560.

First Response Finance offer Non-prime finance with a Prime service

STATISTICS

DONATION

Latest FLA figures show business growth in terms of value and volume

Christmas presents are given to young cancer patients

FIGURES released by the Finance and Leasing Association (FLA) show that the point-of-sale consumer new car finance market saw new business growth of six per cent by volume and 13 per cent by value in October 2015, compared with the same month in 2014. The percentage of private new car sales financed by FLA members through dealerships reached 80.1 per cent in the 12 months to October – up from 79.6 per cent in the 12 months to September. The point-of-sale consumer used car finance market also reported new business growth in October of seven per cent by volume and 10 per cent by value. Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘Point-of-sale consumer car finance volumes have grown by eight per cent so far in 2015. ‘The FLA’s Q4 2015 Retail Motor Finance Survey shows that member companies expect further single-digit new business growth in 2016 in both the new and used car finance markets.’

CLOSE Brothers Motor Finance CMY employees and dealer partners K in the south-west region played Santa by delivering presents to families staying at CLIC House in Bristol over the festive period. Staff from the Swindon branch of the specialist financial services group visited the property, which provides bedrooms for families of children being treated for cancer at Bristol Children’s Hospital. Employees raised £1,320 for the gifts by donating to the cause instead of doing a secret Santa, while Close Brothers Motor Finance’s dealers in the area gave part of their monthly commission. David Spindler, account manager at the Swindon branch, said: ‘We wanted to share the festive spirit with young people undergoing treatment for cancer, showing them and their loved ones that everyone in the southwest is thinking of them.’

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 | 27

REACH

3.5m visitors per month through our powerful network*

SELL CARS THE SMART WAY Maximise the exposure of your used cars

think motors.co.uk

*Source: comScore MMX Multi-Platform based on the Motors.co.uk Network which includes Motors.co.uk, Carmony, Parkers.co.uk, 28Carsite.co.uk, | CarDealerMag.co.uk Driving.co.uk, Carfused.com and many more.

MANHEIM

SP1027_206 20.11.15

sales@motors.co.uk

BIG MIKE.

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

Why those of us at the sharp end are finding life tougher than ever H

appy New Year! 2015 was an interesting one for the independent car dealer – a shaky return to economic strength, but one that was hit massively by a fall in residual values at the lower end of the market, where you simply can’t give scrap cars away. At my end of the market, where the majority of cars I sell go for between £2,000 and £4,000, that’s a bigger thing than it sounds, as the vast majority of part-exers I take in are old, tired and shifted quickly via a ‘PX to clear’ ad. Previously, anything priced at the three pillars, as I call them (£495, £795 and £995) would usually find themselves new owners without too much effort. And it was at the cheaper end of that spectrum where I encountered most of the idiots – someone buying a Peugeot 106 for a beer or two under a grand is looking for a cheap car for a reason, such as a son or daughter learning to drive, something to trundle to the station and back in, or a handy-to-have second car that they don’t want to stake the family silver on. Someone buying a £495 rusty Ford Focus, on the other hand, is probably looking for daily transport, often in the form of something they can splash the proceeds of next week’s benefits cheque on in tat from the nearest car spares shop, instead of the tyres it probably needs. But I digress. Previously, a punter could always pick up a trusty banger for not a huge amount of money, knowing that if it failed the MoT spectacularly, lunched its gearbox or was bounced off a lamppost by a youthful relative, they’d at least get a couple of hundred quid back so it could be melted down and used to weld up the Forth Road Bridge, below. But now, that reassurance has gone. A dead car is a liability, and just recently, round my way, you’ve had to start paying the scrappies to tow them away. And that, dear reader, has had a very profound effect on my business. Let me outline it. What happens is this – someone comes on my lot looking to replace their tired old car with a less tired and slightly newer one. In the process, I accept that the reason they want rid of their old banger is because they’re fed up with it. Occasionally, they’ve just saved up and fancy a change, but often they’re at a point where the ‘new’ car is a desperation purchase, funded by a bank loan because the previous car is starting to go wrong. Working within the motor trade, I accept this. I usually allow between £300 and £600 for a cheap PX-er, knowing that, in doing so, I have a little bit of mates’ rates wiggle room to find and rectify any faults that may make a car unusable. I don’t, however, invest much in such cars, as

Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...

you’re never going to retire on the proceeds of selling one. I generally do enough to make sure the car is safe and I won’t get sued or be in breach of the Sale of Goods Act, then sell it warts ’n’ all with no warranty implied or given. By the end of it, I’m usually in for a couple of hundred quid less than I get back, sometimes the margin is smaller, sometimes it’s zero. But it’s a core part of my business because it sells more expensive cars – by allowing a PX it makes it convenient for my customers to drive in and drive out, key-for-key. It also allows me to sell them up into something with a bigger margin attached, knowing that all I need to earn back is stand-in-value plus any essential repairs. Yet today, cheap PX-ers are suddenly utterly worthless, and the customers don’t understand. I tell them it’s because of the price of scrap, at which point they’re offended at

‘Cheap PX-ers are suddenly utterly worthless . . .’ the fact I could even consider putting ‘Cybil the Citroen’ into the crusher. I suggest they’d be better off selling their old car privately, but they can’t be bothered (nor can they understand why I won’t be delighted to do so myself, as after all, if they can get £795 for it, why can’t I?). Yet I could have a more valuable car sitting on the lot, rather than increasing the size of ‘Pooh Corner’, where all my incoming PXs go to rest awhile. Real estate and equity are important. I have 32 spaces on my lot, and at an average of about three grand a spot, there’s usually the lion’s share of £100k’s worth of business sitting there waiting for me to convert. Fill those spaces with dross, and I can’t afford to pay the mortgage. So what’s now happening is this. I’m either overallowing for the value of a PX so as not to lose a sale, or I’m discounting downwards from my window stickers in order to ensure I keep moving the metal. Either way, my margins are squeezed further. So while the new car industry is going great guns, returning to pre-recession levels of pre-registrations, fleet deals and genuine sales, a strong economy isn’t the greatest news to those of us at the grittier end of the industry, who suddenly find ourselves having to work harder than ever before…

Who is Big Mike?

Well, that would be telling. What we do know is he’s had more than 40 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 29

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FORECOURT. ENGINE

A 1.6 litre four-pot straight out of the Renaultsport Clio RS

GEARBOX

Seven-speed automatic only, with paddle shifts, launch control and ‘multi-change-down’

FOUR-WHEEL STEER

Renault Megane

Andrew Evans seized the opportunity to put a pre-production GT variant through its paces. So what did he think? WHAT IS IT? The fourth generation of the Renault Megane is finally with us... well, sort of. It won’t be on the UK’s roads until the summer of 2016, but we’ve been driving it already in pre-production form. This top-spec GT is the sporting offering – for now at least.

WHAT’S UNDER THE BONNET? In GT form, the Megane packs in a little 1.6 litre turbocharged fourcylinder petrol, rated to 203hp. If this sounds familiar, it should – it’s the same engine you’ll find in the hot Renaultsport Clio RS. It’s good for a 60mph sprint in around seven seconds. Full engine line-ups for the UK range haven’t been decided yet, but there’ll be models with the Nissan-Renault 1.6 dCi diesel and a diesel-electric hybrid to follow.

WHAT’S THE SPEC LIKE? Comprehensive. The GT boasts big, comfy bucket seats, but we also tried out a car with plusher massage seats.

This felt a little like an over-amorous Rottweiler at times, but it’s not an option you get on many C-segment hatchbacks. Nor is the customisable ambient lighting, the colour headup display – which neatly includes a safe-distance warning indicator in green, amber and red – or massive, 8.7-inch touchscreen. This is mounted vertically, as in the much more expensive Volvo XC90, and has oodles of functions, even if they’re sometimes buried in odd menus.

WHAT’S IT LIKE TO DRIVE? This is where it falls down a little bit. The regular Megane is actually a reasonable thing to steer and comfy enough, but the GT is a bit of a mess. The steering has been quickened up by 30 per cent and what should be gentle driving turns into more of a dart-about. This is exacerbated by the 4CONTROL four-wheel steering system – a first in this class in the modern era. The rear wheels turn up to 2.7 degrees opposite to the fronts

under 50mph and up to one degree in the same direction above 50mph. It makes the GT more bearable on the motorway but very odd when enjoying a back road – a mix between a slow puncture and a bit of 80s style lift-off oversteer.

WHAT DO THE PRESS THINK? Car says that the Megane is ‘classy, solidly built, good looking and surprisingly interesting in a sector hardly bursting with innovation’, while Autocar thinks that, in the case of the GT, ‘the sluggish gearbox, uninvolving steering and harsh engine will put off those seeking something with a bit of an edge’.

WHAT DO WE THINK? When it comes to the GT, it feels like it’s just not ready yet. A tweak of the steering, a fiddle with the gearbox software and it might be good – at least on continental roads. That aside, it’s a refined, pleasant place to be and rectifies some of the Megane’s issues.

In a first for the class, the steering wheel controls all four of the Megane GT’s wheels

THE KNOWLEDGE Model: Renault Megane GT 205 Price: To be announced Engine: 1.6 litre, 4-cylinder petrol Power: 205hp, 280Nm Max speed: 145mph 0-60mph: 7.1secs MPG (comb’d): 47.1mpg Emissions: 134g/km

TARGET BUYERS: Someone with a family, keen on tech and refinement more than performance

THE RIVALS: Ford Focus ST, Volkswagen Golf GTI, Peugeot 308 GT

KEY SELLING POINTS: 1. Nicely crafted, comfortable interior 2. Loads of kit you wouldn’t expect in a car twice the price 3. Four-wheel steer makes motorway driving nicer

DEAL CLINCHER: Probably the best-looking car in the class CarDealerMag.co.uk | 31

32 | CarDealerMag.co.uk

FORECOURT. BODYSTYLE

Mondeo Vignale can be had in either saloon or estate

INTERIOR

A genuinely relaxing place to be thanks to acoustic glass

Ford Mondeo Vignale

RIDE

Smooth and comfortable, Mondeo is the ideal longdistance cruiser

The Blue Oval has pushed the boat out to pitch at the luxury end of the market. Jack Evans finds out if this car really is special WHAT IS IT?

WHAT’S THE SPEC LIKE?

The Mondeo Vignale is designed to be the highest-quality version of the popular saloon and estate car that Ford offers. With higher levels of equipment and improved interior quality, the Mondeo Vignale is there to show that Ford does have an eye on the premium market as well as offering excellent value-for-money across its vehicle range.

There’s a whole lot more here than a boggo Mondeo. As previously mentioned, there’s acoustic glass, Ford’s SYNC2 infotainment system, Active Park Assist that can bay park as well as parallel, and also LED headlamps. It’s worth remembering that each Vignale Mondeo comes with VIP treatment – each buyer gets his or her own relation manager, complementary car washes and 24-hour customer support. As far as feeling special goes, the Mondeo Vignale certainly provides.

WHAT’S UNDER THE BONNET? Our car came with a 2.0-litre bi-turbo diesel that we’ve previously seen on the new S-Max. It develops 207bhp while driving the front wheels through a six-speed automatic gearbox. There’s a hybrid, too – but there’s no doubt that most Vignale buyers will opt for the oil burner. It’s got more than enough power for the job, and also feels refined and quiet. The quietness is down to the engine mostly, though the use of acoustic glass definitely emphasises the whisper-silence.

WHAT’S IT LIKE TO DRIVE? The Mondeo Vignale drives just like, well, a Mondeo. The steering is relatively light, there’s enough shove from the engine to please most, and the ride on 18-inch wheels is relaxing and comfortable. The gearbox, however, is a little clunky when compared to the 7- or 8-speed transmissions offered by competitors, but it does the job just fine. Our car

THE KNOWLEDGE was still returning near 50mpg, even on a short motorway and B-road stint. It is a very quiet car and comes with levels of refinement that wouldn’t be out of place in some rival German cars.

WHAT DO THE PRESS THINK? Auto Express said: ‘Top-spec Ford Mondeo Vignale offers luxury materials and loads of extras – but at a high price.’

WHAT DO WE THINK? The Mondeo Vignale is certainly a serious sign of intent from Ford to offer a more luxurious and bespoke car. With the Mondeo Vignale, they’ve certainly succeeded in making drivers feel special with the cabin materials and high levels of refinement, as well as impressive bespoke aftercare. However, the asking price does push the Mondeo Vignale towards some pretty serious rivals – rivals with some premium badges that buyers are, perhaps, more likely to choose.

Model: Ford Mondeo Vignale Price: £31,295 Engine: 2.0-litre bi-turbo diesel Power: 178bhp Max speed: 135mph 0-60mph: 8.0 seconds MPG (comb’d): 51.4 Emissions: 130g/km

TARGET BUYERS: Ford drivers who want to push into a more exclusive car area, or those looking for a change from German saloons

THE RIVALS: BMW 3-Series, Audi A4, Mercedes C-Class

KEY SELLING POINTS: 1. Excellent levels of standard equipment 2. Refined and quiet driving experience 3. Economical engine choices

DEAL CLINCHER:

Greater levels of standard equipment than offered by its main rivals CarDealerMag.co.uk | 33

Digital will matter even more in 2016 41% of car dealers are increasing their digital marketing budget for 2016. Will you be left behind?

2016 2016

Stay ahead of the crowd with the dealer agency you can trust. 0845 415 4853

www.blueskyinteractive.co.uk 34 | CarDealerMag.co.uk

FORECOURT. INSIDE

Interior quality is top-notch and there is a fine range of materials

TECH

Cameras front and back reduce the chances of car park prangs

RIDE

RX rides well despite sitting on sizeable 20-inch wheels

Lexus RX

A great mix of luxury and economy, this is a car that has already won plaudits. But what did our reporter Jack Evans think? WHAT IS IT?

WHAT’S THE SPEC LIKE?

The original RX marked the start of a transition for big cars – it was one of the first large SUVs to adopt a hybrid powertrain and as such showed that just because a car was large and luxurious, it didn’t need to be uneconomical. This latest incarnation hopes to build on this ethos, adding improved comfort and material quality into the mix.

Offered in four specifications – S, SE, Luxury, F-Sport and Premier, the RX has a dizzying array of options for both the interior and exterior. Buyers of base-model cars will still see an eight-inch media display with navigation and Bluetooth connectivity included, though. Standard equipment also includes dual-zone climate control, along with front and rear parking sensors. Head up to Premier trim and you’ll see a fantastic 12.3-inch display dominate the front of the cabin. Intuitive and clear, it’s a real focal point of the car. Remember, though, that the equipment does come at a cost, with the RX 450h S starting at £39,995, climbing to £57,995 for the Premier.

WHAT’S UNDER THE BONNET? The best-selling engine will undoubtedly be the headline 3.5-litre V6 hybrid unit. By itself it produces 259bhp, but when combined with a 123kW electric motor, it puts out 308bhp along with 335Nm of torque driven through a CVT automatic gearbox to all four wheels. Returning 51.4mpg and emitting 120g/km, there’s no doubt that most drivers will go for the hybrid. However, Lexus is also offering the RX with a 2.0-litre petrol engine that we’ve previously seen on the smaller NX model.

WHAT’S IT LIKE TO DRIVE? The RX unfortunately suffers from what you could call the ‘drone problem’. Upon heavy acceleration, the entire powertrain lets out such a racket that even Lexus’ attempts

to quieten the cabin with added sound damping can’t get rid of it. However, this is really splitting hairs. For the rest of the time, the RX is comfortable, quiet and genuinely relaxing to drive.

WHAT DO THE PRESS THINK? Auto Express said: ‘The new Lexus RX is bigger, more powerful and more efficient than ever, and it looks the part too.’

WHAT DO WE THINK? The Lexus is a good-looking alternative to other large SUVs and thanks to lower emissions, it’s much cheaper to tax than rivals, too. There are high levels of interior equipment, and the fit and finish is excellent. Where the RX needs to improve is the engine, as the hybrid unit now feels noisy and lethargic, especially when compared to some ultra-efficient diesels. However, if lower running costs are important to buyers, this RX is a very good choice.

THE KNOWLEDGE Model: Lexus RX450h Luxury Price: £52,995 Engine: 3.5-litre V6 petrol with electric motors Power: 308bhp Max speed: 124mph 0-60mph: 7.7 seconds MPG (comb’d): 51.4

TARGET BUYERS: Those looking for high levels of equipment and build quality, plus low running costs and strong residuals

THE RIVALS: BMW X5, Range Rover Sport, Mercedes GLE

KEY SELLING POINTS: 1. Elegant styling and exterior touches 2. Efficient hybrid powertrain 3. High levels of standard equipment

DEAL CLINCHER: When trying to save money while driving in luxury, there are few better than the RX. CarDealerMag.co.uk | 35

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Smarter, faster stock management with i-Control can help you sell more cars To attract customers and stay ahead of the competition, it's important to stock desirable vehicles and price them correctly for your area. You've definitely got the know-how, but have you got the data and insight that enables you to improve both stock turn and profitability? i-Control, powered by Auto Trader, helps you evaluate your stock against demand, supply, margin potential and speed of sale in your area. It provides you with a view of how your stock is performing in the marketplace, allowing you to automatically update your listings, saving you time and ensuring your forecourt is competitively priced. Find out how retailers have increased the desirability of their forecourt using i-Control.

What drives us is you CarDealerMag.co.uk | 37

FEATURE.

The INFLU How was 2015? How will things be in 2016? And what is your favourite coffee? Our influencers reveal all...

Julian Rance Paragon Page 59

Ken Ramirez Renault Page 40

Jeremy Thomson Mazda Page 41

Jeremy Hicks Jaguar Land Rover Page 47

38 | CarDealerMag.co.uk

Andy Coulthurst Trade Centre Wales Page 45

CAN it really be the start of another year already? Yes, itâ&#x20AC;&#x2122;s time for our annual date with the Automotive Influencers. Or, in other words, the people who shape the car market. We have a slightly smaller and more exclusive

Ian Simpson The Warranty Group Page 51

David Shapiro AutoProtect Page 53

PICTURES: JONATHAN FLEETWOOD WITH THANKS TO THE RAC CLUB, PALL MALL ROYALAUTOMOBILECLUB.CO.UK

UENCERS group than in previous years – but their views on the events of 2015 and what 2016 has in store make compelling reading. As you can see from the line-up on these pages, we have manufacturer bosses, dealer group chiefs

Tony Whitehorn Hyundai Page 43

Nick Horton Supagard Page 57

and key executives from some of our leading and best-known automotive suppliers. It’s sure to be another eventful year for the UK car market – so without further ado, turn the page and find out what they have to say...

Peter Smyth Swansway Page 48

Paul Philpott Kia Page 44

Nigel McMinn Lookers Page 46

Victor Coutin GardX Page 55

Kevin Griffin Ford

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FEATURE.

Ken

Ramirez

Consumers are visiting dealerships far less frequently today

RENAULT: Looking forward to completing an entire C-segment transformation What opportunities are you most looking forward to in 2016? A full year of our all-new Kadjar sales! Our brandnew family-sized crossover has been lauded with praise since it arrived in the UK for the 65 plate, so having our first full year of sales with such a competitive vehicle in such a popular segment is a great opportunity for our brand and the dealer network. The arrival of all-new Mégane from the summer and, later in the year, an all-new replacement for Scénic will complete an entire transformation of our C-segment offering in the space of just a few months. Were you glad to see the back of 2015? If so, why? Not at all. In 2015, Renault Group UK significantly outpaced the market growth for the third consecutive year with more than twice the growth rate of the market and group sales up more than double from 2012. All before a full year of sales in the most popular family car segment with our all-new Kadjar – a model that joins our crossover family, alongside Captur, with best-in-class residual values and already receiving awards and five-star press reviews. After the most successful ever start for a new car brand in the UK, Dacia continued to grow its sales in the UK and the award-winning allnew Trafic helped boost our LCV sales, growing by more than twice the rate of the van market growth. Do you think the emissions scandal will do long-term damage to our industry? I don’t believe that consumer confidence in the industry as a whole will suffer as a result. Although an isolated corporate scandal, it has raised focus on vehicle emissions and fuel economy and therefore offers an even greater opportunity for ultra-low emission vehicles such as our 100 per cent electric range of vehicles. If you were a car dealer, what would be the one thing you would be focusing on this year? Above everything else – delivering excellence in customer satisfaction. Consumers are visiting dealerships far less frequently today than in recent years, but with a much greater knowledge of what they are looking to buy thanks to extensive internet research. Ensuring that every visit into the dealership – be it before, during or after a sale – is as professional and hassle-free as possible is crucial in today’s highly competitive market and the key to breeding customer loyalty. 40 | CarDealerMag.co.uk

Job title: Managing director – responsible for Renault and Dacia operations in the UK, Ireland, Malta and Cyprus Age: 47 Lives: London Drives: Renault Kadjar and Zoe Favourite car: Renault Zoe Family: Married with one child Education: Degree in electrical engineering, Georgia Institute of Technology Career: Joined Renault in 2013 from Nissan, where he was MD for Latin America and the Caribbean, covering 37 countries; joined Nissan in 2002 from Motorola A night out: Cinema or theatre? Theatre Music: Pop or classics? Classics Coffee: Costa or Starbucks? Nespresso

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What will be the next big advance in our industry, do you think? Our industry is always evolving; it’s what makes it such an exciting challenge to work in. I think those manufacturers that maximise returns from industrial partnerships and alliances will see the best returns in the years ahead and be best placed to deliver the next generation of vehicles.

If there was one wish you could have come true for 2016 (business-related please!) what would it be? Our main aim is to deliver Renault Group UK’s mid-term growth plan – GO5+. It was deployed in June 2013, with a vision to deliver more than five per cent group market share in 2017 along with top-tier network profitability, above industry average, and top 10 rankings for quality and brand opinion indicators for the Renault brand. We’ve made huge progress on all fronts. Is there anything special you are particularly looking forward to? Continuing to deliver on our GO5+ plan.

Jeremy

Thomson

Our line-up is unrecognisable from just a few years ago

MAZDA: Consolidation in 2016 with a view to a high-technology future What opportunities are you most looking forward to in 2016? After launching five cars between March and September 2015, being title sponsor at Goodwood Festival of Speed and delivering sales growth well ahead of the industry, 2016 marks a period of consolidation before the next burst of productled excitement. At the heart of that will be our dealer network – I recognise that they have had an incredibly busy, demanding time too, and we should jointly focus on improving customer experience, dealer profitability and preparing for the next phase in our evolution. Were you glad to see the back of 2015? If so, why? Not at all. It was one of the most exciting years in Mazda’s history in the UK, with unprecedented car launch and event activity, near best-ever volumes, and with the launch of the iconic MX-5 in August we completed our line-up of sixth-generation Skyactiv models. Our line-up is unrecognisable from just a few years ago. Do you think the emissions scandal will do longterm damage to our industry? Not long-term damage as such – I think that will be relatively short-lived – but the longer term consequences will undoubtedly be a demand for a more transparent, real-world explanation of vehicle emissions and fuel economy. In the short term, the debate has damaged consumer confidence. If you were a car dealer, what would be the one thing you would be focusing on this year? Gaining a competitive advantage through outstanding customer engagement, customer experience and renewals. Get that right and advocacy and recommendation will build and conquest sales become a lot easier. What will be the next big advance in our industry? From a technology perspective, I think cars will quickly become as bespoke and personalised to the driver as an iPhone is today. I can see a future where advanced applications and services are tuned to the needs of every individual driver. These may be reactive to driver input, or anticipate driver and motoring needs, and go beyond the scope of today’s ‘infotainment’ systems. From a customer perspective, I think the evolving interest in ‘usership’ rather than ownership will continue.

Job title: Managing director Age: 49 Lives: Tunbridge Wells Drives: Mazda CX-5, Mazda MX-5 Favourite car ever: Impossible question! Family: Wife, Lianne Education: BSc psychology Career: Joined Ford UK in 1989 starting in customer service and then sales and marketing roles, culminating in manager; joined Mazda organisation start-up in 2001 as fleet director, then joined Mazda UK full time as marketing director, then sales director and since 2008 as managing director A night out: Cinema or theatre? Cinema Music: Pop or classics? Pop Coffee: Costa or Starbucks? Both

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Do you think we will see self-driving cars on our roads in the near future? Personally I hope not. Get a bus. If there was one wish you could have come true for 2016 (business related please!) what would it be? We showed a stunning new concept car at the Tokyo Show in 2015 – the RX-VISION sports car

concept with a Skyactiv-R rotary engine. It would be amazing if the incredible public reaction to that car brought it a little closer to reality. Is there anything special you are particularly looking forward to? Making the most of our new HQ in Dartford, Kent, which was opened in November. We have a fantastic new working environment but, more importantly, a branded space, showroom, heritage display and flexible meeting area that will allow us to demonstrate the passion we have in the brand and entertain dealers, media and customers in some style. CarDealerMag.co.uk | 41

FEATURE.

Kevin

Griffin

I am looking forward to the maturity and stability of the UK

FORD: Total mobility solutions will grow, as will connectivity choices What opportunities are you most looking forward to in 2016? The UK industry is very vibrant. Having spent most of 2015 looking after markets as diverse and as wide as Finland down to Greece and across to the Russian border (with Ford of Europe, before rejoining Ford of Britain in August 2015) I am looking forward to once again working in the maturity and stability of the UK. Were you glad to see the back of 2015? If so, why? No. I am never glad to see the back of any particular period of time. As most of my time was engaging with many markets, different people and economies, it was a great year – maybe the odd late flight on a Friday night was challenging, but other than that 2015 has been great. Do you think the emissions scandal will do longterm damage to our industry? No, long term I believe the industry will take on any issues that arise from this, accept the challenge and deliver products that both consumers and legislation demand – just look at the progress that the industry has made over the past 10 years. If you were a car dealer, what would be the one thing you would be focusing on this year? Investing in Ford – well, I would say that wouldn’t I?! If I’m not being partisan, customer service and consumer connectivity. We must all make sure that the shopping, buying and ownership experience of vehicles meets the changing demands of all of us. This really is a fantastic industry that delivers exciting and dynamic products that increase customer mobility, connectivity and safety. What will be the next big advance in our industry? I think that total mobility solutions will grow versus the need for ownership. Urban living, in particular, will present different challenges for our industry. Connectivity choices will grow and we need to ensure that manufacturers and retailers offer the consumer the mobility solution that is right for them. If there was one wish you could have come true for 2016 (business related please!) what would it be? That every passionate driver gets to drive a Ford GT, Mustang, Focus RS and a Transit in 2016 regardless of what they own. We are really lucky 42 | CarDealerMag.co.uk

Job title: Sales director Age: 57 Lives: Suffolk Drives: Everything Ford Favourite car ever: My Focus 4x4 RS – which could be superseded if my bosses allow me a Ford GT! Family: Married with two great children, Lisa and Dan Education: Lots of life, a few academic badges but really being in this industry for more than 30 years Career: Ford of Britain sales director from August 2015; Ford of Europe marketing, sales and service regional director from February 2015; Ford of Europe commercial vehicle director from January 2013; Ford of Britain fleet director from 2003 A night out: Cinema or theatre? Theatre – always Music: Pop or classics? Both actually Coffee: Costa or Starbucks? Costa

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at Ford in that these fantastic brands and legacy products excite, delight and really make you smile – we all need more smiles in life.

Is there anything special you are particularly looking forward to? Oh, so much – so much to do and enjoy. New products and new innovations but, most of all, meeting new people from inside and outside the industry. We are all really lucky; the motor industry is full of great people and we create mobility products that people are equally as passionate and emotional about. I want to add to that and try to make a difference. From a Ford perspective, going back to Le Mans in 2016 is something I am really proud we are doing and want to enjoy this as part of the Ford family of workers.

Tony

Whitehorn

I’m looking forward to the challenge of change

HYUNDAI: Digitisation and a hydrogen fuel infrastructure are the ways forward What opportunities are you most looking forward to in 2016? I’m looking forward to the challenge of change; specifically, consumer habits of purchasing through digitisation and the change of customer preference in different methods of propulsion – which is of course being driven by emissions. Nintey-three per cent of new car buyers carry out extensive research before making the visit to the showroom, so it is only a matter of time until the car-buying journey can be completed online. Were you glad to see the back of 2015? If so, why? 2015 has been a great year for us, as the majority of our model range has been updated. However, 2015 hasn’t been without its challenges. This year has been particularly challenging due to the market overheating – the market declined in October, which verified this fact. Do you think the emissions scandal will do longterm damage to our industry? I certainly don’t think there will be any longterm damage, but I do think it will cause people to re-evaluate their chosen vehicle’s method of propulsion. With so many alternatives on the market now I think more people will now start to migrate towards electric and hybrid vehicles. Additionally, the hydrogen infrastructure in the UK is starting to grow as we are starting to see hydrogen-powered mobility become a reality. There’s so much more on offer to consumers now besides traditional diesel and petrol cars. If you were a car dealer, what would be the one thing you would be focusing on this year? With more and more customers doing their research before visiting the showroom, I would be focusing on making sure there is no sitting and waiting for the customer to come to me. There’s so much competition from other OEMs that it is crucial we take Hyundai’s product line-up and put it directly in front of the customer – we need to go to the customers, rather than expecting them to come to us. What will be the next big advance in our industry? The impact of digitisation. Increasingly, we’re seeing customers carry out their research online, and soon they will be able to complete the whole buying process online. Our digital store, Rockar

Job title: President and CEO Age: 55 Lives: Berkshire Drives: Hyundai Tucson Favourite car ever: Jaguar E-Type Family: Wife and three adult children Education: Cardiff University, BSc (Hons) economics Career: Joined Rover Group in 1982 as a sales analyst; Renault in 1984, becoming sales training manager in 1986; Toyota in 1989 as national training manager, progressing to sales director in 1999; joined Hyundai as managing director in November 2005 and was promoted to president and CEO in 2011 A night out: Cinema or theatre? Theatre Music: Pop or classics? Pop Coffee: Costa or Starbucks? Costa

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Hyundai, has already proven that a new way of buying is welcomed by some consumers. In its first six months, Rockar Hyundai had 100,000 visitors. If there was one wish you could have come true for 2016 (business related please!) what would it be? If I had one wish it would be for the government to really view hydrogen fuel cell vehicles, and

the accompanying infrastructure, as a priority for 2016. The future is here, so all we need now is a viable infrastructure in place. So far, we have four refuelling stations in the UK and more in the pipeline – we need to see investment if we truly want to see hydrogen stations become the norm. Is there anything special you are particularly looking forward to? It’s an exciting time for Hyundai – we are already beginning to see additional layers being added to the brand. We recently unveiled our new luxury ‘Genesis’ brand plus our ‘N’ performance arm. CarDealerMag.co.uk | 43

FEATURE.

Paul

Philpott

We need clarity on a revised emission test procedure as soon as possible

KIA: Powertrain proliferation is the next big advance heading the industry’s way What opportunities are you most looking forward to in 2016? New products and new powertrains! It’s going to be a really exciting year for the Kia franchise. In Q1 we will launch the new Optima saloon and the game-changing new Sportage. Then in the second half we will fundamentally change the Optima range with the addition of a new wagon bodystyle, an ultra-efficient plug-in hybrid and a highperformance GT, and we will also launch our new dedicated Hybrid Utility Vehicle called Niro. Were you glad to see the back of 2015? If so, why? No, why would I? It was a tough year for our industry but Kia enjoyed another record year with sales of almost 80,000 – not bad when you consider we only sold 29,000 new cars in 2007. The new Sorento has been a massive success, and the new cee’d, with its 1.0-litre ecoTurbo engine, has been really well received by both dealers and customers. Do you think the emissions scandal will do longterm damage to our industry? We need clarity on a revised emission test procedure as soon as possible. Then, as the industry has been requesting, we can all move on. If you were a car dealer, what would be the one thing you would be focusing on this year? Customer retention in workshops. Kia’s car parc is growing rapidly, and with our seven-year warranty, during 2016 we will have the fourthlargest warranty parc of all brands in the UK. This represents a massive profit opportunity for the franchise providing we deliver the right level of service to retain our customers. What will be the next big advance in our industry? Powertrain proliferation – for decades, customers have simply had to choose between petrol and diesel. In five years’ time, customers will need to choose which powertrain is right for them from a choice of petrol, diesel, hybrid, electric, plug-in hybrid, fuel cell and more. A much better choice for the environment but a tougher choice for customers, and a whole new challenge for dealer sales staff to fully understand the benefits and operation of each technology. Do you think we will see self-driving cars on our roads any time soon? 44 | CarDealerMag.co.uk

Job title: President & CEO Age: 49 Lives: Dorking, Surrey Drives: Kia Sorento Favourite car ever: Ferrari 458 Family: Married to Julia; two children, Georgie and Jonathan Education: Bsc (Hons) finance Career: Started automotive career in 1988 at Ford Motor Company; rose to sales planning manager and small car brand manager before moving to rival Toyota in 1997; became Toyota’s marketing director in 1999 and commercial director in 2002; then poached by Kia as UK managing director in 2007; then ventured to its European head office in Germany in 2009 as chief operating officer, returning to his current role in the UK in 2012 as the first non-Korean president of any global subsidiary A night out: Cinema or theatre? Theatre Music: Pop or classics? Classics Coffee: Costa or Starbucks? Costa (definitely!)

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I think this depends on what you mean by ‘selfdriving’ cars. Kia is already introducing a range of partially autonomous driving technologies like

smart cruise control, lane departure warning and autonomous braking, with many further advanced developments set to arrive before the end of the decade. Our first fully autonomous cars are expected to hit the streets by 2030. If there was one wish you could have come true for 2016 (business related please!) what would it be? England to win Euro 2016 – this is business related, given Kia is a main sponsor! Is there anything special you are particularly looking forward to? The new Sportage. It is very special!

Andy

Coulthurst

Our new superstore will more than double our business

THE TRADE CENTRE WALES: Preparing to expand the business into England What opportunities are you most looking forward to in 2016? We begin our first stage of significant growth in 2016 with the opening of our new superstore in Cardiff North. This will more than double our business and is an important milestone as we prepare to expand The Trade Centre across the border into England. Also, 2016 will be my first full year back in retail and I am keen to see significant growth year-on-year in the existing business. Were you glad to see the back of 2015? If so, why? No, not at all. I ended my role with Motors.co.uk in September with all KPIs at record levels and have enjoyed seeing that business further build on that since. I started my new role as CEO of The Trade Centre Wales in the same month. We too are setting new records and I am very lucky to have worked with two great teams in 2015. Do you think the emissions scandal will do longterm damage to our industry? No, I think it will help in the long term as an incentive for complete transparency. Even VW Group dealers could benefit in the long term as they will have many existing owners visiting their showrooms for recall, presenting opportunities for conversations around upgrading those cars. If you were a car dealer, what would be the one thing you would be focusing on this year? As a car dealer it would be easy just to point at getting the basics right, but my one suggestion would be to create a unique identity in your marketplace. Too many dealers are just following the pack, failing to stand out from the crowd and chasing the same customers with the same offers as everyone else. If these dealers thought ‘What can I do differently?’ rather than ‘I must do the same’ then great ideas will start to emerge. What will be the next big advance in our industry? I think long-term revolving lease agreements from car manufacturers will make their way to market, allowing car buyers to upgrade their car on a regular basis without the requirement to go through the process of doing a deal – simply logging on to their smartphone app, choosing an alternative car and potentially adjusting their payment, as required, with delivery the next working day.

Job title: CEO Age: 48 Lives: Royton, Oldham Drives: Range Rover Favourite car ever: Jensen Interceptor, coupé Family: Married with two grown-up girls Education: I went straight from school to working in a car accessory shop. Career: Began at 15 working in a Carcraft accessory shop, then with Nissan as sales manager; rejoined Carcraft in sales, remaining there until 2007; he joined JCT600 in 2008 as group sales and marketing director; became MD of Motors.co.uk in 2012; joined The Trade Centre Wales in 2015 as CEO A night out: Cinema or theatre? Theatre Music: Pop or classics? Pop Coffee: Costa or Starbucks? Starbucks

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Do you think we will see self-driving cars on our roads in the near future? I think we will see many elements of self-driving cars introduced as product features on standard cars, and then these products will start to build towards making everyday cars autonomous, with us building confidence in the technology over

time, rather than a huge instant uptake of the fully autonomous vehicle. If there was one wish you could have come true for 2016 (business related please!) what would it be? Simply a continuation of the gradually improving economy – we can take care of the rest. Is there anything special you are particularly looking forward to? Researching new products and technologies that will keep us ahead of our competition, make selling cars easier and buying them even more enjoyable. CarDealerMag.co.uk | 45

FEATURE.

Nigel

McMinn

We have got to become modern retailers

LOOKERS: Omni-channel retailing is expected by customers What opportunities are you most looking forward to in 2016? Integrating Benfield into Lookers and seeing it consolidate our position as the second-largest group by turnover and most profitable public motor group. We have done a lot of work to let people know that Lookers will offer the same level of service and the same culture as Benfield – we are the same but trading under a different name. Were you glad to see the back of 2015? If so, why? Not really – I enjoy the challenges every year brings! 2015 has been a transformational year for Lookers in many ways – acquisitions, technology, culture and profitability. Do you think the emissions scandal will do longterm damage to our industry? No. Not in the long term. I think it will change the mix of products that people buy. There was already a trend towards petrol and I think this will just accelerate that process. We will see more smaller, petrol turbo-powered, super-charged engines. The whole industry will have to sharpen up its act, as will the governments and testing agencies. People will remain passionate about their cars. They will just change what they buy. If you were a car dealer, what would be the one thing you would be focusing on this year? Structural and cultural change in the sales departments to slow down staff turnover and improve conversion rates and customer experience. What will be the next big advance in our industry? Omni-channel retailing. There is an increasing customer expectation that they can do any number of things online and then visit a physical store to finish the process or take delivery. They want that complete flexibility to do any aspect of research or purchase online or in the store, or any combination of that. They look at our industry and say, ‘If I can get that experience at, for example, John Lewis, why can’t I get it when I am spending £20,000 on a car?’ We have got to become modern retailers who can offer all of that. Do you think we will see self-driving cars on our roads in the near future? Well, it’s already here with a software download on the Tesla Model S, I understand. It may be 46 | CarDealerMag.co.uk

Job title: Managing director Age: 47 Lives: Newcastle Drives: Range Rover Sport Favourite car ever: Ferrari 458 Speciale Aperta Family: He has been married to Elaine for 17 years and they have a son Joseph, nine Career: Joined Lookers in 2013 from Benfield where he had been chief executive; before that was in various roles across 11 years at Reg Vardy, having started his working life as an accountant with Price Waterhouse after studying economics at university in Edinburgh A night out: Cinema or theatre? Cinema Music: Pop or classics? Pop Coffee: Costa or Starbucks? Costa

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against the law to drive with your hands off the wheel or your eyes off the road, but it is technically possible to do it now. I just think there will be a very slow, reluctant take-up from customers, and I think it will only be allowed under very controlled circumstances and strict controls, which to some extent will defeat the whole point of the exercise if you have to be in the driver’s seat.

If there was one wish you could have come true for 2016 (business related please!) what would it be? Continued strong £:euro exchange rate. The strong pound has allowed manufacturers that import vehicles or components from Europe – which is about 80 per cent of the market – to make more money or incentivise customers with more compelling offers. Over the past couple of years the cost of motoring has come right down as a result. Is there anything special you are particularly looking forward to? Benfield dealerships trading as an integral part of Lookers plc.

Jeremy

Hicks

I know that our Jaguar and Land Rover UK retailers share my optimism

JLR: Next wave of product launches will see us consolidate our position What opportunities are you most looking forward to as 2016 gets under way? Jaguar and Land Rover will continue to launch exciting new products at an aggressive rate next year. For Jaguar, the F-PACE is a fantastic opportunity to enter a growing market sector with a performance crossover that offers great design and performance attributes with outstanding value. In the fleet market I anticipate continued success with Jaguar and Land Rover products featuring our efficient and powerful new Ingenium 2.0-litre diesel, four-cylinder engines. Were you glad to see the back of 2015? If so, why? I’m always pleased to see a new year arrive – particularly at a time when our business is growing significantly. New products and enhanced strategies will help further establish Jaguar and Land Rover in the UK. Do you think the emissions scandal will do longterm damage to our industry? The automotive industry has made huge strides in reducing emissions from engines. The latest diesel cars are the cleanest in history, with high-tech filters capturing hydrocarbons, carbon monoxide and 99 per cent of all soot particles. This has allowed emissions of nitrogen oxides to be reduced by 84 per cent since EU3 (beginning in 2000). If you were a car dealer, what would be the one thing you would be focusing on this year? All of us must focus on the needs and experiences of our customers. Jaguar and Land Rover UK retailers will be carefully managing growth as the range of products in both brands increases. This means they will need to optimise their new and used car sales, aftersales and customer service functions on an ongoing basis. What will be the next big advance in our industry? Advanced connectivity systems in cars. Innovative new technologies are being developed to make the experience of driving more enjoyable yet safer and with the added bonus of being able to integrate many applications appropriate to an individual’s preferences. If there was one wish you could have come true for 2016 (business-related please!) what would it be? In order to maintain business growth, the market

Job title: Managing director, Jaguar Land Rover UK Age: 53 Lives: North Buckinghamshire Drives: Range Rover Sport Supercharged Family: Married, three children Education: St Peter’s School, York, and then the University of Central Lancashire Career: Joined Vauxhall in the UK, performing a range of roles; spent a short period in automotive consultancy before joining VW Group UK, holding a number of senior roles; became managing director of Audi UK in 2005 and stayed in that position for six years; UK managing director at Jaguar Land Rover since November 2011 A night out: Cinema or theatre? Cinema Music: Pop or classics? Both Coffee: Costa or Starbucks? Costa

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needs to see increased employment, low inflation and low interest rates. Is there anything special you are particularly looking forward to? We are fortunate at Jaguar Land Rover to be seeing the fruits of sustained investment in product development and manufacturing facilities in recent times. The next wave of product launches, including Jaguar F-PACE and Range Rover Evoque Convertible, will see us further consolidate our position in the market. I know that our Jaguar and Land Rover UK retailers share my optimism. CarDealerMag.co.uk | 47

FEATURE.

Peter

Smyth

Improving your data will improve your results

SWANSWAY: Car leasing will continue to grow and grow in the coming years What opportunities are you most looking forward to in 2016? This may sound a little perverse, but I’m looking forward to the Volkswagen Group service action kicking in. I see it as a massive opportunity for data capture, as undoubtedly we will see customers in our centres whom we’ve never seen before. The quality of data in the auto industry is suspect, to say the least. The simple reality is that good data leads to good sales and, perhaps more importantly, to improved after sales. Just having the information and contact details to inform customers about servicing, MOTs and the rest makes a big difference. Those who are good at acquiring and using customer information in the right way will see the benefits. Were you glad to see the back of 2015? If so, why? Not particularly. To be fair, I see 2016 as very much following the same path as 2015. Do you think the emissions scandal will do longterm damage to our industry? No, not long-term damage per se, but I do think that it could sound the death knell for dieselpowered cars. If you were a car dealer, what would be the one thing you would be focusing on this year? Getting obsessive about data! Capturing the right data at the right time is crucial. It means you can communicate with your customers at the right time, it saves money and increases results. If you do nothing else, improving the quality of your data alone will improve your results. It is true to say that the auto industry is not that different to any other in its ability to use data properly. What will be the next big advance in our industry? It’s already starting but I believe it will grow and grow and that is private customers leasing cars online and paying the VAT. I see this as a growth market for some time to come. Do you think we will see self-driving cars on our roads in the near future? I’ve just been in Barcelona and experienced the Audi A7 self-piloted car firsthand and I have to say it was pretty amazing. That said, the ‘near future’ is pushing it, as there would need to be the correct infrastructure in place to allow that to happen. 48 | CarDealerMag.co.uk

Job title: Director Age: 51 Lives: Wilmslow, Cheshire Drives: Audi RS6 Favourite car ever: The DeLorean from Back to the Future Family: No thanks! Education: O-levels at a comprehensive school in Bolton Career: Started with Lex at 17 selling Metros and Maestros at an Austin Rover dealership; joined the family business in 1985, which at one time was Toyota’s largest European dealership, working alongside his brothers David and John A night out: Cinema or theatre? Theatre Music: Pop or classics? Pop Coffee: Costa or Starbucks? Hate coffee!

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If there was one wish you could have come true for 2016 (business related please!) what would it be? That all manufacturers would get their heads together and realise that the market is NOT 2.6 million, it’s two million, and target accordingly. It would put an end to the whole pre-reg glut in one stroke. The manufacturers are all chasing market share – it’s become an obsession with them. But

the market is not as big as they think it is. I believe they are taking advantage of a favourable exchange rate with massive over-production. They need to find homes for all these cars, and the western European market, and the UK market in particular, is pretty sophisticated. But the market is not as big as the figures say it is, and that is all down to preregistration, which squeezes retailers’ profits. Is there anything special you are particularly looking forward to? The opening of our first new-build Fiat brand centre and breaking ground on our first Jaguar centre.

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FEATURE.

Ian

Simpson

The Warranty Group is very well placed as we move into 2016

THE WARRANTY GROUP: Emissions scandal will have no long-term effects What opportunities are you most looking forward to as 2016 gets under way? TWG has undertaken a massive investment in products and customer journey infrastructure that will start to bear fruit in 2016. We are introducing new, hybrid solutions based on rethinking existing offerings in the marketplace. For these innovations, our focus has been very much on customer retention, aiding dealer growth and powering OEM success. Were you glad to see the back of 2015? Yes and no. It was an interesting year with regards to the FCA consultation into add-on products, in particular GAP and how it should be sold to customers. Having come through that process it is clear that GAP remains an essential part of the aftersales product portfolio. The main point to stress is that, in our experience, the vast majority of dealers were already selling GAP in a responsible fashion, so most had little to make in the way of changes. However, one thing the consultation achieved was to remind us as an industry to place the consumer at the very centre of our activities, and I believe that The Warranty Group is very well placed as we move into 2016 to continue to deliver first-class products to our clients and their customers. Do you think the emissions scandal will do longterm damage to our industry? No, we don’t believe so. As an industry, we excel at creating opportunities out of challenges and I’m sure that this will be no exception. After a possible short-term effect on residual values, the market will steady and there will be no long-term impact. If you were a car dealer, what would be the one thing you would be focusing on this year? The consumer proposition should be the key focus. If I were a car dealer, I would be considering how to make my dealership stand out from the competition. How can I retain more customers for aftersales and generate future car sales? It really is that simple – listen to your existing and prospective customers, deliver what they are looking for and your business will grow. What will be the next big advance in our industry, do you think? As telematics become more part and parcel of new cars, new products will be designed based

Job title: European managing director – automotive Age: 51 Lives: Kenilworth Drives: Lexus Favourite car: Land Rover Defender Family: Married, two children, two stepchildren Education: University of Life Career: Has worked in the automotive industry since 1983, holding numerous positions within OEMs, captive financiers and motor dealers; joined The Warranty Group in 1990 when it was known as Pat Ryan Associates, and has held a number of senior roles within the organisation; now, as European managing director – automotive, is responsible for the growth of warranty and associated products across automotive OEMs, dealer groups and independent retailers A night out – cinema or theatre? Cinema Music – pop or classics? Pop Takeaway coffee – Costa or Starbucks? Starbucks

MINI CV

on real-world usage of vehicles. In the future, this will have an effect on how products are made and developed. Possibilities include pay-on-use warranties and reduced GAP premiums. Do you think we will see self-driving cars on our roads in the near future? Not in 2016 but there is little doubt that they are coming and could revolutionise vehicle use. If there was one wish you could have come true for 2016 (business related please!) what would it be?

Again, it all comes back to the customer. As a business, our key drivers are exceeding customer expectations and delivering products that will delight, so my wish would be to continue to make improvements to the customer journey – and by that I mean the whole purchasing experience. Is there anything special you are particularly looking forward to? Having been through a period of significant investment, I am just very excited about the proposition we can now present to our clients and their consumers. CarDealerMag.co.uk | 51

Measurable support and service so you can build on your profits

Isn’t it better when you can measure your success? At AutoProtect we work hard to understand your goals and the way you work, so the added-value products we know you’d like to offer your customers can be integrated with your approach and customised to fit. Add our sales support and training, plus AutoProtect’s sophisticated IT systems – giving you up to the minute management information and sales reporting – and you have a powerful set of tools in your hands.

For more on how we can help you grow your revenue and measure your profits, call Mike Macaulay on 01279 456600 Alternatively email us at sales@autoprotect.co.uk

@autoprotect 52 | CarDealerMag.co.uk

www.linkedin.com/company/autoprotect

www.autoprotect.co.uk

FEATURE.

David

Shapiro

There is only one way to approach change and that is to embrace it

AUTO PROTECT: Expecting evolution and not revolution in the year ahead What opportunities are you most looking forward to in 2016? The growing trend towards digital pre-purchase research and emerging changes in the regulatory landscape are both reshaping car retailing within new and used sales sectors. Showroom traffic may be down but customers arriving in the showroom are more likely to be buyers and, as a result, having often pre-qualified themselves, conversions are up. Dealers need to embrace this change and work towards satisfying the demand for relevant information. There is only one way to approach change and that is to embrace it. Dealers who are looking to make more from market changes in added-value products need to look to AutoProtect. Were you glad to see the back of 2015? If so, why? No. It was a good year for us at AutoProtect, with growth in sales, even closer dealer relationships, improved consumer rankings and product development, plus key innovations in claims management with a drive to move more processes online via smartphone apps and web-based warranty claims submissions. 2015 was certainly a year of change and the FCA’s review of GAP kept the industry on its toes. Do you think the emissions scandal will do longterm damage to our industry? People will forgive a service failure if it is handled well. In the short term, some players will clearly have to weather the dissatisfaction, but if they manage it well (even if this is costly) it could provide a great platform to demonstrate customer care and a commitment to product excellence. If you were a car dealer, what would be the one thing you would be focusing on this year? I’m sure dealers will have many things on their minds, which may vary depending upon a wide range of variables from franchise to geography and much more. From our own area of expertise, I do think many dealers will be looking at their current income model. The review of remuneration by the FCA due to be published in Q1/2 has the potential to redefine things. What will be the next big advance in our industry? I know it is popular to talk about market ‘disrupters’ but I think we will continue to see evolution rather than revolution. Technology in

Job title: CEO Age: 67 Lives: Essex Drives: Mercedes-Benz S Class Family: Two children and six grandchildren Education and career: After leaving school went to work for an insurance firm and was placed on a fast-track training programme; moved to Lloyd’s of London; in 1982 set up own company, which was sold in 1994 to Oriel Group plc, and was appointed director of the holding board plus the operating companies; one of the founder shareholders of AutoProtect, formed in 2004 A night out: Cinema or theatre? Theatre Music: Pop or classical? Classical Coffee: Costa or Starbucks? Green tea

MINI CV

cars will evolve, CO2 emissions will become more important, usage rather than ownership will grow and digitisation of the buying process will continue – multi-channel retailing will certainly evolve. The one advance that I think will grow is market consolidation by retailers and the emergence of major groups and supermarkets as consumer brands to rival manufacturers.

If there was one wish you could have come true for 2016 (business related please!) what would it be? For consumers to recognise that car dealers actually work on very small margins and are largely doing a great job for their customers. Is there anything special you are particularly looking forward to? I always look forward to a new year. I see it as a chance to recharge the batteries, set some new goals and focus on the opportunities and challenges with renewed vigour. The year ahead is no different and I’m looking ahead with real optimism. CarDealerMag.co.uk | 53

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54 | CarDealerMag.co.uk

FEATURE.

Victor

Coutin

Maximise every opportunity when a salesman has a customer in front of them

GARDX: Building on a great year and aiming to go from strength to strength in 2016 What opportunities are you most looking forward to in 2016? We are delighted to announce, after a full commercial tender by BMW AG and intensive testing programme by BMW UK, GardX has been appointed the official sole supplier of paint and interior protection products to BMW Group UK. This is an outstanding achievement for GardX and well deserved. Our new Protect X is launching in January and I can also announce we are launching our new Ad-Vantage professional online media product. We have also agreed a further year’s joint sponsorship of the West Surrey Racing, BMW, British Touring Car Championship team. Were you glad to see the back of 2015? If so, why? No. 2015 has been a fantastic year with continued success. The GardX brand has gone from strength to strength. We have expanded GardX Assure, our insurance business. We won the BMW UK tender, secured further major dealer acquisitions and recruited some important new team members. Do you think the emissions scandal will do longterm damage to our industry? No. The public has short memories and the VW product is too good. Remember the Toyota recalls of a couple of years ago? A short-term problem, but despite the bad press a few years ago Toyota has regained the top spot as the world’s number one vehicle manufacturer. If you were a car dealer, what would be the one thing you would be focusing on this year? Incremental profit opportunities. Maximise every opportunity when a salesman has a customer in front of them. Also, digital marketing – invest in media product presentation including video and make your phone ring first. Concentrate on innovative products like cosmetic repair and complete wheel insurance products, bringing customers back into the dealership. What will be the next big advance in our industry? All in all, 2015 has been a fantastic year for us with continued success. The GardX brand has gone from strength to strength. We have expanded GardX Assure, our insurance business. We won the BMW UK tender, secured further major dealer acquisitions and recruited some important new team members.

Job title: Managing director Age: 60 Lives: Flansham, West Sussex Drives: BMW X5 Favourite car ever: 1973 E9, BMW 3.0CSL (Lightweight) Family: Five children Education: Chichester College and Henley Management College Career: Established Viking in 1975 at the age of 19, which grew over 24 years into a leading franchised dealer group for Toyota, Lexus, Chrysler Jeep, Subaru, Lada, Proton and Suzuki; sold in 1999; one of the pioneers of the Japanese grey import business until 2003; GardX Protection launched in 2003 and is now one of the world’s largest providers of paint and interior protection products A night out: Cinema or theatre? Theatre Music: Pop or classics? Pop Coffee: Costa or Starbucks? Neither

MINI CV

Do you think we will see self-driving cars on our roads in the near future? I don’t think so in the near future, but long term it is a very real possibility.

If there was one wish you could have come true for 2016 (business related please!) what would it be? There would be two wishes and they have already been granted! Being appointed as the official sole supplier to BMW Group UK for paint and interior protection products and extending our British Touring Car Championship joint sponsorship! Is there anything special you are particularly looking forward to? Getting back to work after the Christmas break. I am raring to go. 2016 is going to be a bumper year with our new products as official supplier to BMW and the BTCC! CarDealerMag.co.uk | 55

We have worked with Supagard for over 15 years and now run at 40% penetration across the Group, with many of our dealerships running much higher. This makes a substantial contribution to our bottom line.

Glyn Hopkin have been working with Supagard since 1993 and we now run in excess of 40% penetration across the Group, which has benefitted bottom lines considerably.

Weâ&#x20AC;&#x2122;ve used Supagard for more than 25 years and still believe their overall offering to be market leading as we currently achieve around 40% penetration across all new and used car sales. Customer satifaction is also very high.

John Sampson, Director of Finance & Insurance, John Clark Motor Group

Fraser Cohen, Managing Director, Glyn Hopkin Ltd.

Sandy Risk, General Manager Business Development, Eastern Western Motor Group

56 | CarDealerMag.co.uk

FEATURE.

Nick

Horton

Customer experience is the vital ingredient

SUPAGARD: Enhanced portfolio will offer new choices to clients What opportunities are you most looking forward to in 2016? At Supagard we are most excited about the new products and services we will be bringing to market. Over the next few months our product portfolio will be enhanced in order to provide our current and prospective clients with unrivalled choice. During this period, we will shift a few paradigms within our sector in order to deliver additional value and profitability to our existing and prospective client base. We are also excited about the development of two digital platforms, which will provide dealerships with innovative ways to drive an optimum sales performance. Were you glad to see the back of 2015? If so, why? Not at all. Although we are looking forward to 2016, we are able to reflect on 2015 with positivity. 2015 was another progressive year for Supagard. Our progress can be evidenced on several key fronts, including financial growth, new client acquisition, new product developments and technological advancements. Do you think the emissions scandal will do longterm damage to our industry? While I appreciate the relevance of the question, as a supplier to organisations that have been implicated and/or affected, we feel a neutral position is the most appropriate and would therefore prefer not to pass comment. If you were a car dealer, what would be the one thing you would be focusing on this year? Customer experience. As we find ourselves within an unforgiving market that shows no sympathy for inadequate customer experiences, increasing the focus has to be a corporate priority. Whether viewed from a sales or aftersales perspective, customer experience is the vital ingredient that will drive the end result. What will be the next big advance in our industry? 2016 provides the opportunity for organisations to continue to embrace the digital age. One of the next big advances will be the provision of online retail environments that allow the consumer to complete their entire car-buying process from the comfort of their home or office. Recognition of changes in the buying process (and consumers’ willingness to complete their purchase online) has

Job title: Head of UK sales Age: 47 Lives: Nottinghamshire Drives: Volvo XC60 Favourite car ever: My first car, Ford Escort Popular Family: Married, two sons Education: National Business Diploma at Clarendon Academy Career: With the Civil Service before joining the motor industry in 1992 as a sales executive; promotions to business manager and sales manager followed before moving into the training and development sector; with Supagard for the past seven years A night out: Cinema or theatre? Cinema Music: Pop or classics? Pop Coffee: Costa or Starbucks? Starbucks

MINI CV

encouraged one major manufacturer to recently launch their ‘Retail Online’ function. No doubt, other manufacturers will also participate. If there was one wish you could have come true for 2016 (business related please!) what would it be? My one wish would be for the automotive industry to continue inspiring corporate prosperity and

growth. As a consequence, the manufacturers, suppliers and retailers that enable fulfilment of the automotive supply chain will be able to enjoy a prosperous year. Is there anything special you are particularly looking forward to? We are looking forward to further developing key aspects of our sector. Such developments will drive increased quality, value and profitability to our existing and prospective client base. The first phase of our product- and technology-based developments will be during Q1 2016, with a second phase scheduled for Q2. CarDealerMag.co.uk | 57

My current finance providers satisfy the needs of most of my customers but Iâ&#x20AC;&#x2122;m always on the lookout for access to better rates and improved service...

A good deal better Paragon Car Finance is highly competitive within the new and used car marketâ&#x20AC;Ś talk to us today and weâ&#x20AC;&#x2122;ll explain how. Our highly competitive rate and commission packages balance the needs of both the dealer and customer, giving a fair deal whilst ensuring commercial benefit. We carefully structure our packages to make sure our products are transparent; all aimed at helping you sell more cars.

0345 149 7777

pcf@paragonbank.co.uk

www.paragoncarfinance.co.uk 58 | CarDealerMag.co.uk

FEATURE.

Julian

Rance

A growing number of consumers value flexibility over ownership

PARAGON CAR FINANCE: Personal contracting and leasing will grow What opportunities are you most looking forward to in 2016? We’re expecting it to be an exciting year with good opportunities to increase our market share in new and used car finance. The election’s out of the way, the economic outlook looks relatively positive for the UK and interest rates are expected to stay low well into 2016. Opportunities to grow used car finance should be particularly strong. Were you glad to see the back of 2015? If so, why? 2015 was an exciting year for us. Following our re-entry into the car finance market in 2014 we’ve been moving at quite a pace, building out our distribution, re-establishing relationships with old friends and building new partnerships. We’ve been able to tailor our products ever more closely to the needs of the consumer. Do you think the emissions scandal will do longterm damage to our industry? The industry will recover and come out the other side in a much stronger position. The scandal puts the spotlight on the value of current testing in a much broader context and will intensify calls for testing that matches road conditions – tests that tell consumers how their vehicle will perform in ‘real-life’ driving on a whole range of measures from emissions and fuel efficiency through to mechanical handling. If you were a car dealer, what would be the one thing you would be focusing on this year? Online retailing is only going to get bigger and dealers need to get their digital marketing totally integrated. Sales staff need to be working across digital channels to engage the widest audience, highlight their stock and respond to customer inquiries within digitally acceptable timescales. What will be the next big advance in our industry? For finance, I think there’s going to be more interest in personal contract hire and personal leasing products, where the customer pays a regular monthly payment but never expects to own the vehicle outright. Research tells us that a growing number of consumers value flexibility over ownership. Across a range of products, consumers are increasingly at home with a rental or subscription model, so why own a depreciating asset like a car when you don’t need to? The

Job title: Head of Paragon Car Finance Age: 53 Lives: Solihull Drives: BMW 520d Favourite car ever: BMW 320i convertible Family: One son and one daughter Education: Watford Grammar School For Boys and University of Hull Career: More than 25 years’ experience in the car finance market, 11 years spent with Forward Trust Group and 18 with Paragon; management experience in all aspects of the car finance market, including consumer, corporate and wholesale funding A night out: Cinema or theatre? Cinema Music: Pop or classics? Pop Coffee: Costa or Starbucks? Starbucks

MINI CV

growth of PCP finance has helped drive this trend, with most customers expecting to exchange their vehicle rather than buying it outright. However, PCP does carry risk for the lender, as a rational customer would only return their vehicle if the market value was below the amount due at the end of their finance contract. Contract hire and personal leasing products neutralise this risk.

If there was one wish you could have come true for 2016 (business related please!) what would it be? A clear steer from the FCA on how best to review customer affordability and structure commission incentives when selling financial products. The development of different practices by different lenders is confusing for distributors. Is there anything special you are particularly looking forward to? I’m looking forward to leading further product development at Paragon Car Finance, making further inroads into distribution and delivering further growth. [CD] CarDealerMag.co.uk | 59

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0845 6838795 contactus@mapfre.co.uk www.mapfreabraxas.co.uk 60 | CarDealerMag.co.uk

FOCUS ON.

10 for 2016

Firms to work with in the year ahead Get the lowdown with our special products and services guide

hatever the size of your business, you’ll need to find suppliers who really bring value to your company and this can be hard to achieve. With this in mind, we’ve put together this ‘10 for 2016’ guide to 10 companies that provide products and services we think you should be working with in 2016. Whether it’s used or new cars, finance is a pivotal part of the car-buying process for customers and MotoNovo Finance provides an innovative solution. The Self-Serve financing process lets customers complete their own online finance proposal inside the dealership. MotoNovo CEO Mark Standish compares it to fuelling one’s own car, as opposed to the now-arcane practice of having a petrol pump attendant. The iVendi Platform brings the best online motor finance systems into the showroom. With a comparator that shows the finance products and risk options from the dealer’s own panel of lenders, iVendi allows the customer to choose the finance solution that best suits them. Insurance might not be the most glamorous part of the motor industry but it’s one of the most critical. Plan Insurance is a family-run broker that aims to bring the same level of shopping around to company insurance that consumers already have with home and car insurance. WMS Group is a leader in extended dealer warranties and already provides a range of products to 3,500 dealers. Its flagship ‘Safe and Sound’ used car scheme is a seven-element motoring package supplied free to customers. Part of the customer satisfaction experience is a high-quality finish when the car leaves the

by ANDREW EVANS @snavEwerdnA

FEATURED SUPPLIERS MotoNovo Finance Finance provider, with a Self-Serve product putting customers in control of their finance.

P63

iVendi Market leader in digital motor finance, used by finance providers, dealers and car portals.

P65

Plan Insurance Independent brokers, sourcing competitive premiums from a select panel of insurers.

forecourt and Gtechniq aims to provide that. A Gtechniq Platinum-protected car outperforms more traditional dealer-applied protection systems, with the Crystal Coat paint protection. Seventy-three per cent of customers who have bought a car from the RAC Approved Dealer Network were attracted by the brand. RAC BuySure sees dealers commit to an 82-point preparation standard on every vehicle, a car data check and a minimum of three months’ warranty. With products and services across the motor industry, GardX is one of the leading providers of protection solutions. Already well known for paint and interior protection systems, GardX also provides fuel and oil additives and aircon treatment. More recently, GardX Assure Insurance services have been added to the portfolio. Delivering informed and ready-to-buy customers direct to the dealer’s doorstep, CarGurus – started by TripAdvisor co-founder Langley Steinert – is a leading online shopping portal in the USA. Here in the UK, CarGurus already stocks 200,000 vehicles, listed for free by dealerships, on its UK site. GForces is best known for providing website support for manufacturers and large PLCs, but for 2016 it’s bringing its NetDirector web platform to the small- and medium-enterprise sector. More than 12,000 personal CitNOW videos are watched every day. These individualised sales videos boost inquiry and conversion rates by building a rapport with prospective customers.

P67

WMS Group Warranty Provider of the Year 2015, with extended warranty, GAP and 24hr recovery.

P69

Gtechniq Creator of a range of car care products, primarily protective coatings.

P71

RAC Joining the RAC Approved Dealer Network gives a badge of quality that generates leads.

P73

GardX Protection A range of protection products, from paint and interior trim to insurance services.

P75

CarGurus A leading website that helps to connect great dealerships with great customers.

P77

GForces The leading provider of automotive web software and full service marketing.

P79

CitNOW UK’s largest provider of video presentation services to the automotive industry.

P81

CarDealerMag.co.uk | 61

IN 2012 WE SET OUT ON A MISSION TO HELP RE-DEFINE DEALER FINANCE $ $BS%FBMFS BS%FBMFS

CreditToday

2014

Credit Today Awards Overall Sponsor

2013 WINNER

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Car Finance Provider of the Year MotoNovo Finance

WINNER

Hundreds of dealers have sold more vehicles since embracing the MotoNovo Difference. From providing FCA regulatory support, to innovative digital finance solutions; from a comprehensive range of finance products, to expert local support. As we stated at our new brand launch in February 2012 our mission is:

â&#x20AC;&#x153;to lead the industry in adopting a new and sustainable customer and dealer centric model that embraces the power and reach of the digital channelâ&#x20AC;?

Helping you

Sell more vehicles

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Email us at marketing@motonovofinance.com and discover just how our multi-award winning approach can help your business.

MotoNovo Finance, a division of FirstRand Bank Limited (London Branch). Registered in England (Branch Reg. No: BR010027) at Austin Friars House, 2-6 Austin Friars, London, EC2N 2HD. FirstRand Bank Limited is authorised and regulated by the South African Reserve Bank. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. FirstRand Bank Limited (London Branch) is a branch of FirstRand Bank Limited, a public limited company with the Companies and Intellectual Property Commission in South Africa (Reg. No. 1929/001225/06) Head office: 4 Merchant Place, Corner Fredman Drive and Rivonia Road, Sandton 2196, South Africa. 62 | registered CarDealerMag.co.uk

FOCUS ON.

10 for 2016

A fresh new finance option MOTONOVO

W: motonovofinance.com T: 0844 770 4438

CA regulation has caused many dealers to think again about finance. Now, there is a totally new opportunity for dealers from MotoNovo Finance, including those who were thinking about ceasing to offer finance altogether. Finance is an integral part of the car-buying process for many buyers of new and used vehicles. For some dealers it is a useful profit centre, but for many it is largely a means of helping a customer to make a buying decision. Consumer credit regulation by the Financial Conduct Authority (FCA) means that some dealers are thinking carefully about the way forward. They want credit to be available, but candidly could do without the challenge that regulation brings. Now, it seems, all that is possible. ‘Self-Serve’ – a new concept in dealer finance In what is yet another industry first, MotoNovo Finance is launching its all-new Self-Serve financing service. In dealer showrooms, customers will be able to complete their own online finance proposal and benefit from an all-new level of transparency. Dealers don’t need to be directly FCA-authorised to offer it. ‘Self-Serve’ is the brainchild of MotoNovo CEO Mark Standish, who observes: ‘The way we access financial services is undergoing a massive change. This is clear from the growth of mobile banking as people embrace the convenience and control that technology can now facilitate. In dealer finance, we cannot ignore this trend. ‘In the 1970s, the petrol station experience typically involved a petrol-pump attendant. Today, many consumers, it seems, find the idea of someone filling their vehicle to be very odd; they like the capacity to control their own refuelling. The same trend is now developing for banking. ‘People are used to filling out online forms. They value the control. Going further, from a data security perspective, many do not want to disclose the increasing level of personal data now required in a loan application in a showroom. We are making that possible.’ The Self-Serve process means that in the showroom dealers will continue to input the car and price details. This creates a code that enables the customer

to continue their loan application on a tablet or PC there and then. The customer can still expect to get an efficient decision with acceptance levels in line with traditional dealer finance. Competitive interest rates are agreed at the outset with the dealer, who is then rewarded courtesy of an innovative new merchandising payment, itself linked to the effectiveness of the dealership as a distribution point for finance. Self-Serve is available to dealers who are both authorised by the FCA and those who are not directly authorised, with clear controls for the latter on the level of dealer engagement in the financing process. Facilitating this latest innovation from MotoNovo is a new digital platform built to MotoNovo’s specification that supports the process in the showroom and online. This unique approach, developed entirely by MotoNovo, will utilise state-of-the-art technology and provide dealers with the opportunity to develop a new income stream. The new car-buying journey – it’s customer-led Today’s showroom sees less traffic, but those who visit are often interested in buying. Self-Serve finance meets a customer desire to control their own purchase. MotoNovo Finance’s unique online and in-showroom approach is helping more dealers to make finance accessible to more customers. Now it’s time to find out more! Interested? To date, more than 100 dealers have signed up to the pilot. Dealers can email marketing@ motonovofinance. com for more information.

Mark Standish is CEO of MotoNovo Finance

GAINING AN EDGE THE type of secured finance facilities provided by MotoNovo can give dealers an edge in the sale of cars. When compared with unsecured loan options, dealer finance is often far more attractive for buyers. The advantages are still available to car dealers offering MotoNovo’s Self-Serve approach. l Dealer finance can be efficient and convenient. l Typically, dealer finance enjoys far higher acceptance levels than unsecured personal loans, when applying on the same financial terms. l When using dealer finance, customers can feel assured that the quality of the dealer and the quality of the vehicle is guaranteed by MotoNovo Finance as the lender. And, of course, the offer is highly competitive.

JOIN THE SELF-SERVE REVOLUTION In brief, dealers can enjoy: l Finance in their showroom, with or without direct FCA authorisation. l The comfort that all of the finance procedures, marketing and compliance are taken care of by MotoNovo Finance. l The opportunity to enable customers to self-serve their own finance. l The chance to be at the cutting edge of consumer finance. l The benefit from an all-new revenue source. And for car buyers – Self-Serve eases the buying process: l Customers can find the car they want online or in the showroom, with finance to demonstrate affordability. l They can use the Self-Serve system to quote and apply for finance in the showroom. l MotoNovo’s team is on hand to communicate directly with the customer on the finance process, supporting the dealer. l Once approved, the customer can drive away in their new car. CarDealerMag.co.uk | 63

Giving customers control over motor finance, giving you new ways to create leads Car Finance Checker is the UK's first motor finance micro-comparator. It's designed to let customers browse and compare offers from your panel of lenders - and then have complete visibility of their likely eligibility. For car portals, dealer web sites and car showrooms, it's a groundbreaking way to create the highest quality leads. Want to know more? Contact iVendi now.

0845 226 0503 info@carﬁnancechecker.com www.carﬁnancechecker.com 64 | CarDealerMag.co.uk

FOCUS ON.

10 for 2016

2016 kicks off with the new iVendi Platform IVENDI

W: carfinancechecker.com T: 0845 226 0503

here’s a strong argument that the best online motor finance systems now completely outstrip what is available in the showroom. So wouldn’t it make sense to bring the best of the internet into the dealership? That’s the aim with the latest generation of the iVendi Platform, launched this month. It builds on previous versions, which were designed to manage all dealer online motor finance activities, by also including sophisticated showroom finance options.

James Tew, CEO, explained: ‘At the heart of the new version of the iVendi Platform is a comparator that shows the finance products and risk options available from the dealer’s panel of lenders. As part of the in-dealership process, the sales person can sit down with the customer and use this comparator to look at a range of different finance products and offerings for those with varying risk appetites. ‘It provides a very structured, convenient and FCA-compliant way of presenting motor finance and is so intuitive that the sales person can even leave the customer with a tablet, PC or laptop to decide on their own preferred finance solution. We already have dealers on board who are using the product in this way.’ Overall, the Platform is intended to bring together all the different elements of each dealer’s online motor finance offering so that they can be managed in one place. For example, key enhancements mean that it will automatically

aggregate all types of online and showroom inquiries against a prospective customer and record all the quotations presented against each vehicle, while it also integrates with all of the major dealer website providers and leading motor finance lenders. Tew said: ‘The initial response from dealers and lenders to the product has been very strong, encouragingly so. We believe that it represents a genuine innovation. Certainly, it delivers probably the most effective and intuitive way to present motor finance to the customer in the showroom available today.’ He added that the iVendi Platform was just one of a number of new products that the company was planning to bring to market during 2016. The company has recently tripled its development capacity to cope with this ambitious launch programme. Tew said: ‘We will also be updating several of the most popular products in our existing portfolio, something that the investment in development and several other key areas has made possible. ‘2016 will prove to be a key year for iVendi, we believe, following on from the major growth achieved in the previous 12 months as the result of several major new deals. You can feel the momentum behind the business growing all the time. To give some idea of the progress that we have made, our products are now connected to around 6,000 dealer locations, more than double the number from the start of last year. We are now comfortable in claiming to be market leader in our sector.’

‘‘

We are now comfortable in claiming to be market leader in our sector. CarDealerMag.co.uk | 65

Plan Insurance Brokers have specialised in arranging motor trade policies for over 25 years. As independent brokers we are not tied to any one provider or network. We combine advanced I.T. with tailored cover and a determination to provide outstanding service. Our approach turns risk into peace of mind.

Motor Trade Insurance Experts

Exclusive rates from leading motor trade combined insurers 25 years experience of tailoring high quality policies for motor trade businesses Gold standard service independently accredited by Feefo

Keeping your business motoring 66 | CarDealerMag.co.uk

planinsurance.co.uk

0333 003 0609

FOCUS ON.

10 for 2016

Getting the cover you may need PLAN INSURANCE BROKERS

ompany insurance is not a glam subject and is an area of sometimes considerable expense to which many car dealers and traders do not devote sufficient time. But as a specialist in the sector, Plan Insurance Brokers is well placed to offer competitive premiums as part of a bespoke service, says managing director Ryan Georgiades. ‘For us, it comes down to doing the basics really well,’ says Georgiades. ‘It’s about providing good cover, competitive rates and great service – get those three things right and people tend to migrate towards you. ‘We arrange good-quality cover with named insurers, and brands do matter with insurance – if a name comes up that you don’t recognise you might not be sure of them.’ Established in 1989, Plan Insurance Brokers is the very definition of a family business. Started by Peter Georgiades and his eldest son Scott, they were joined by the middle son Ryan in 2000 when they moved towards non-standard specialist niche commercial motor product lines. Grant, the youngest son, joined the family firm in 2006, bringing expertise in online marketing, and the company has continued to evolve and grow. ‘What we are keen to do more than ever is just let people know we are here,’ said Ryan Georgiades. ‘As a small family business, we have started to grow, and grow organically with lots of referrals and recommendations, but we are now in a position where we can deal with more inquiries and so are keen to promote ourselves more heavily. ‘Hopefully people will give us a try and be really impressed.’

W: planinsurance.co.uk T: 0333 003 0041

Georgiades accepts that insurance and all that goes with it does not find an eager audience, despite its mission-critical significance when the chips are down, and that there is an inclination for auto dealers and traders to stick with what they know. ‘There’s also probably a perception that it’s a great deal of aggravation to change provider, which in our opinion it’s not,’ he says. ‘We have streamlined processes and our IT is second to none in the market, so we can make it as painless a process as possible while doing a really good job of finding our customers a competitive, highly tailored and comprehensive policy that will provide all the cover they currently have, and maybe highlight some they don’t have.’ Georgiades points to the fact that while many people look around for home insurance when it comes up for renewal, and even more when it comes to their car insurance, company insurance doesn’t attract the same level of activity. The reality, however, is that it is hardly any more complicated, with Plan Insurance Brokers practised at simplifying the whole process. ‘It’s just a perception that it’s a great deal of aggravation that has to be tackled,’ said Georgiades. ‘If people have the information to hand, we can offer a full indication of what our rate would be in about 20 minutes. It’s a pretty slick process, and when you think about the kind of money people are paying for their premiums, it’s time well spent. ‘It may well be that their current insurer offers the best rate, but every relationship needs some checks and balances, and opportunities investigated.’ Georgiades acknowledges that the industry in all its aspects is becoming increasingly digital, and Plan Insurance Brokers is keeping pace with an everevolving landscape.

‘The industry is changing and constantly shifting and it can be difficult to keep up. We are lucky as we have grown significantly but we are still fairly dynamic in the sense that we can react to things.’ To prove the point, the company is launching online webforms, allowing people to submit all the necessary information and data to get a quote. Not revolutionary, Georgiades agrees, but a move to meet changing demands from an increasingly digital customer base. ‘We will have to talk to them at some point to refine some of the finer details,’ he says, ‘but it at least gives them an indication without them having to talk to anyone if they are busy. ‘It’s all about having multiple ways to get in touch. Some people prefer the phone, some just want to send off the details and get a quote, look at the policy details and the premium. ‘I think car dealers probably do prefer a personal relationship and do want to pick up a phone rather than do everything online, but for those that do, we can provide that service.’ Ultimately, in a competitive marketplace it comes down to value. Saving car dealers and traders some money on a significant overhead without compromising on cover is what Plan Insurance Brokers is all about.

‘‘

We have streamlined processes and our IT is second to none in the market. CarDealerMag.co.uk | 67

Introducing the Used Car Product of the Year

If you want to generate more customers, improve retention and increase profitability, apply to offer the UK’s leading used car scheme, as endorsed by motor racing legend Sir Stirling Moss. Voted Used Car Product of the Year. Safe and Sound includes: Wear & tear warranty 24 hour rescue and recovery Vehicle safety inspection Provenance and mileage checks 24/7 operation so your customers can receive service at any time Regular contact and visits from our dedicated account management team Simple and quick claim submission, with all authorised claims paid within one working day – the industry’s fastest turnaround! Free and unlimited sales training Free point of sale and display materials, with the option of own-branded materials subject to volume Wide range of incentives for your customers What

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Request a dealer pack at SafeandSound.co.uk or call our dealer helpline on 01844 293817. 68 | CarDealerMag.co.uk

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FOCUS ON.

10 for 2016

Customers come first all the time WMS GROUP

W: wmsgroupuk.com T: 01844 293 810

new year can only mean a new beginning; a fresh approach to managing our time, how we work with customers and the way we run our businesses. Since 2015 has been a pinnacle year in advancing the evolution of digital communication and futuristic innovation in the automotive industry, 2016 is set to be yet another game changer. That’s why, to kick things off to a good start, it’s important to make sure you’re developing your dealership with the companies that will help you squeeze every ounce of success from your business in 2016. As a leader in providing extended dealer warranties, the WMS Group currently supplies a range of products to 3,500 dealerships across the country, designed to minimise vehicle downtime, improve retention, boost cash flow and create additional profit streams. One of these products is the ultimate used car scheme, Safe and Sound. Endorsed by motor racing legend Sir Stirling Moss OBE and voted Used Car Product of the Year 2015, Safe and Sound encompasses a seven-element motoring package, which is supplied to customers free of charge. ‘We have established an award-winning programme, and this year we aim to continue developing and pushing this further,’ said Eric Stone, business development director at WMS Group. ‘Safe and Sound is our flagship used car warranty scheme. We’re currently working with 250 handpicked dealers nationwide, including a growing number of the largest franchises across their used stock, and we hope to expand this network to 300 in the coming months. Research has revealed that 35 per cent of franchised car sales are used vehicles, which means our product is even more relevant now than before.’ Safe and Sound incorporates a 60-point safety inspection, a full provenance check that ensures the vehicle doesn’t have a hidden past, a six-month allmechanical and all-electrical wear-and-tear ultimate car warranty protecting customers against expensive repair bills, and a six-month UK breakdown cover package, which includes 24-hour home and roadside repairs and recovery. On top of that, customers receive peace of mind with a mileage verification to ensure it’s genuine, an independent valuation, which shows the dealer

is asking a fair price and, finally, an exclusive buy-back promise, meaning dealers will guarantee to buy the vehicle back as a part exchange, regardless of its age, mileage and condition. ‘Our motto and key value is to treat customers fairly, while also fulfilling our commitment to our dealers by helping to increase profits and cash flow. With Safe and Sound, you can make a profit without a fee. We aim to ensure that our policyholders remain satisfied long after the vehicle handover, delivering the best possible service at every stage – whenever they need their dealer.’ Looking to the future, the WMS Group also recognises the importance of digital media and the influence it has on the modernday car-buying process. The firm also understands the importance of retaining customer value in order to generate aftersale leads, which is where its new app comes into play. My Motor Manager is an advanced CRM suite, designed to help dealerships retain customers for life. It allows customers to manage all of their vehicles from their smart device while ensuring that the dealer never misses out on another aftersales opportunity – and it’s free. ‘We believe that the advancements in mobile technology and social media are key to helping dealers sell more cars. This is why we launched the app, which benefits both the dealer and their customer,’ says Stone. Customers can safely store all of their vehicle information on the app and manage multiple vehicles, providing each has at least one policy with the WMS Group. Information entered by the dealer on the Group’s administration system is automatically uploaded to their customer’s device, including the dealership’s details and warranty documentation. They can also view maintenance due dates and set up a series of notifications, reducing the need for dealers to canvass and the risk of vehicle service check-ups lapsing. What’s more, if the customer needs assistance,

the app can find an approved repairer, store important documents such as their driving licence or insurance paperwork, locate parking and petrol and even find their car when they’re out and about. ‘This is a great example of social innovation and utilising every aspect of digital media to help our dealers and their customers in 2016,’ Stone continued. ‘The My Motor Manager suite is provided free of charge, potentially saving dealers thousands of pounds in CRM per year.’ Keep an eye on TV screens in 2016, too, as the WMS Group will also be featured in a oneoff documentary by ITN, which focuses on the workings of The Institute of the Motor Industry (IMI). ‘By invitation, we will be starring in ITN’s new documentary, which is set to showcase the great and the good of the motor trade. We are extremely excited and proud to have been asked to take part in this project, which will be shown at the annual IMI dinner in March. There is a lot of negativity surrounding the industry – this documentary is designed to look at the best in the business and reveal the good side of the motor trade.’ Stone added: ‘It all comes down to how you train your staff to treat customers and demonstrate your business’s key values.’ CarDealerMag.co.uk | 69

70 | CarDealerMag.co.uk

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10 for 2016

Gtechniq launches revolutionary new car protection system GTECHNIQ

W: gtechniq.com/platinum T: 01423 860022

id-2015 saw high-tech paint protection manufacturer Gtechniq launch a revolutionary new car protection system aimed exclusively at automotive manufacturers and dealerships. With some top names in franchise and independent dealerships jumping on the bandwagon with the new system, 2016 is set to be the year for Gtechniq Platinum. Rob Earle, Gtechniq managing director, said: ‘We’ve been producing surface protection products here at Gtechniq for master detailers, using the latest science and technology, for over 10 years. Now we are transferring our expertise to raise the standard of dealer-applied paint protection – which frankly doesn’t have the best of reputations, but 2016 is the year for change.’ Crystal Coat, the paint protection included in the Gtechniq Platinum nano-scientific system, forms a chemical bond with a car’s surface, making it scratch-resistant, UV-resistant, high-gloss and easy to maintain. Gtechniq is also the first to market offering cars interior antibacterial protection with added BioCote antimicrobial technology – all of this protected with a fully supported five-year guarantee. Chris McDonald, CEO at Reep Automotive – the exclusive UK distributor of the Gtechniq Platinum dealership system, said: ‘A Gtechniq Platinum-protected car outperforms the more traditional dealerapplied protection

WHAT IS GTECHNIQ PLATINUM? systems hands down. In our view, it’s certainly the best sealant-based system on the market and is guaranteed to improve customer satisfaction and retention. This is our first year as exclusive distributors of the system and already we have a number of new dealerships keen to adopt Gtechniq Platinum to help improve their bottom line and provide customers with a system that really works.’ Gtechniq Platinum is not a product for the fainthearted. The system has been designed specifically for those dealerships that want to improve the service they offer their customers and the quality of the finish of the vehicles that leave the forecourt. McDonald added: ‘We are under no illusion that Gtechniq Platinum will suit the needs of every dealership in the UK, but it certainly will suit the needs of those who are looking for the best sealant solution out there. ‘Platinum is also a product that the valeting teams will be able to apply easily without any incremental increases in time of application.’ Unlike existing paint protection systems, Gtechniq Platinum focuses not only on outstanding products, but also better preparation. Every dealership that signs up to Platinum is offered full training to finish a car’s paintwork to a higher specification. For more information visit gtechniq.com/platinum, send an email to platinum@gtechniq.com or, alternatively, call Reep Automotive on 01423 860022.

Paint protection Unlike other coatings, Platinum forms a chemical bond with a car’s paintwork, so it becomes the functional surface of the car. Crystal Coat, the Platinum paint protection, gives unrivalled UV and dirt repellency, keeps swirl marks at bay and makes all cars a dream to maintain. Glass protection As part of the Platinum system, all external windows are treated with a hydrophobic coating that is durable, optically clear and easy to clean. Rainwater is repelled from the windows, improving visibility in wet weather and inevitably making driving safer. Interior protection Platinum offers protection for leather and fabric, and with added BioCote antimicrobial technology microbes are reduced by up to 99.99 per cent. This makes the surface of a car more hygienic and defends it against degradation, odours and staining. On top of the antibacterial properties, Gtechniq Platinum leather protection will reduce wear and make dye transfer from clothing easier to remove. And on fabric – including carpet – soiling can be reduced dramatically, as with Platinum protection, liquids will roll off the surface and can be wiped away with a damp cloth. Wheel protection Platinum wheel protection makes wheels dirt- and brake-dust-repellent, as well as easier to clean. The coating also gives wheels an active resistance to stains and contamination. Comprehensive aftercare kit On top of all that, every customer who chooses the best protection for their car will be given a complimentary aftercare kit worth more than £100.

CarDealerMag.co.uk | 71

Becoming an RAC Approved dealer means you have access to the power of one of the UKâ&#x20AC;&#x2122;s most respected motoring brands. With over 8.2 million members, Approved Dealer status can help drive more customers to your dealership. Experience the power of Approved Dealer status now

0330 100 3807

Call: Email: dealernetwork@rac.co.uk Visit: rac.co.uk/getapproved 72 | CarDealerMag.co.uk

FOCUS ON.

10 for 2016

RAC seeks ‘the right dealers’ RAC

W: rac.co.uk/getapproved T: 0330 100 3807

aving doubled in size last year, the RAC Approved Dealer Network is looking to recruit further customer-centric dealers to continue its expansion in 2016. Sean Kent, RAC account director, said that the 200-strong network had seen substantial growth in the previous 12 months and that more was possible – but only if ‘the right dealers’ could be identified. ‘Our approach with the RAC Approved Dealer Network has always been to put quality first. The success of the network is based on the trust that consumers place in the RAC name, so we must ensure that the same high standards are maintained,’ he explained. New research has shown that 73 per cent of customers who have bought a car from the RAC Approved Dealer Network were first attracted by the brand. ‘Essentially, the dealers that we work with are already great dealers. What we do is allow them to use the RAC name in recognition of that fact while providing a very high level of support.’ At the heart of the RAC Approved Dealer Network is RAC BuySure, a unique used car proposition that is designed to meet consumer expectations of the RAC brand. Kent said: ‘RAC BuySure has been developed specifically to provide customers with a used car proposition, available nationally, that is open to all kinds of dealers and sets very high standards.

‘Being part of the scheme means additional work for dealers but they are rewarded with leads and customers who are prepared to pay a little more for a vehicle of this quality. Our research indicates additional unit chassis profits of £200-300 while there is also reduced pressure to discount.’ A key element of the RAC Approved Dealer Network’s expansion in 2015 was a concerted marketing push from the RAC, including national advertising, competitions in daily newspapers, extensive PR, new dealer collateral and the creation of a sophisticated central dealer marketing portal. Kent said: ‘The RAC has huge marketing resources at its disposal and we will be doing much more work in this area in 2016. For example, all RAC Approved Dealers are now highly visible on the rac.co.uk website, which has more than a million unique visitors every month.’

ABOUT RAC BUYSURE

THE DEALER VIEW

RAC BuySure sees dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a car data check and a minimum of three months of RAC Warranty cover. In support of this, the RAC will provide 12 months’ RAC breakdown cover.

Anthony Betts: ‘RAC BuySure has made selling cars easier for us. Customers are coming from further afield because of the RAC brand, and they have confidence in the car they are purchasing.’ Adam Newman: ‘The product offers customers a great level of cover to give them confidence in their purchase. Our affiliation with the RAC has certainly attracted customers to the dealership.’ CarDealerMag.co.uk | 73

Welcome Aboard! We are proud to announce GardX Protection as the ofďŹ cial product supplier of paint and interior protection to BMW Group UK. Award Winning. . . Forward thinking. . . GardX Protection. Talk to us!

e: info@gardx.co.uk t: 01243 376 426 w: www.gardx.co.uk

74 | CarDealerMag.co.uk

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10 for 2016

Join GardX for the journey this year GARDX

W: gardx.co.uk T: 01243 376426

MW Group UK, Kia Motors UK, Inchcape, Lookers, JCT600 and Perrys… If you knew of a supplier that worked with manufacturers and dealership groups of that calibre, wouldn’t you want to get involved? Well, now might be the time to do just that. The supplier we’re talking about is GardX – and although you are probably familiar with the name, you might not be fully aware of the company’s everexpanding range of activities. The firm has built a hugely successful global empire using a simple but effective approach: providing market-leading products to dealerships of all shapes and sizes, and acting as not only a supplier but as a valued business partner too. Car Dealer recently caught up with GardX managing director Victor Coutin, who recalled the early days of his operation. He told us: ‘When GardX launched, we had some specific core objectives – set by me and based on my experience of running my own dealer group. ‘Number one, we asked our chemists to develop a paint and interior protection product that incorporated the latest technology and could compete with the best in the market. They delivered. We believe our paint protection product is the only UK product to achieve British Standard ISO 2812-5: 2007. We then added some tangible benefits that added value to our protection system during the customer’s ownership of the car. If a customer sees value in a product he has purchased, the chances are they will buy it again when they change their car. And thirdly, we made the products easy for sales people to sell.’ Coutin added: ‘Our core premise is we are not just a product supplier but a business partner. Our objective is to integrate our account management

team into a dealership’s sales team to maximise every opportunity. ‘We support our dealers with professional account management with monthly or bi-monthly visits to their dealerships.’ It is this level of commitment to the dealer and the performance of our product that was instrumental in Gardx recently being appointed the official sole supplier of paint and interior protection products to BMW Group UK replacing BMW Seal & Protect. As we’ve said, GardX is known principally for paint protection, but there’s a lot more to the business now. Under its GardX Maintain umbrella, for instance, it offers a range of products such as fuel additives, engine flush, oil enhancer, anti-bacterial air conditioning treatment products and a diesel particulate filter cleaner. Coutin explained: ‘All these products are typically ones that would be sold on an aftermarket basis in a workshop/service area. We teach disciplined processes to service advisers so they can promote these products to their customers successfully.’ But perhaps it’s GardX Assure Insurance Services where the most exciting opportunities are presenting themselves to Coutin and his team. He was keen to explain... ‘GardX Assure was set up four years ago and we have recently achieved full FCA authorisation,’ he said. ‘Our customers were saying to us that if we provided the same level of account management, support and training on insurance products, and

they were competitively priced with good levels of cover, then they’d be interested in talking.’ To cut a long story short, GardX developed a smart insurance product called C.A.R.S.: Cosmetic Accident Repair Solutions. Coutin told us: ‘The reason we got involved with smart insurance – which, incidentally, is probably one of the fastest-growing products within the auto sector – is that we are in the business of protection. ‘We recognised that if we went to market with a total protection offer, combining our existing exterior and interior offerings with a product that covered dings, dents, scuffs and scratches, we would have something very powerful to say. ‘We also added GAP and Tyre and Alloy Wheel Protection. These products have proved very successful with our dealers. They resonate very nicely with consumers. Why? Because most car owners have experienced minor bodywork damage, a kerbed alloy or a puncture.’ The company’s most recent addition to its portfolio is GardX AD-vantage, which is a professional advertising solution. It can be used across all departments, new, used cars, aftersales and bodyshop. It is a cloud-based integrated software and hardware package, which provides brochure-quality vehicle static images and video. It professionalises a dealer’s online presence and significantly increases lead generation. There’s no doubt that in 2016 GardX will be going places – why not join it for the journey? CarDealerMag.co.uk | 75

Smarter Shoppers. Better Buyers.

At CarGurus, we aim to make the online car shopping process more transparent, helping consumers find great deals and connect with great dealerships. List your stock on CarGurus today and start receiving quality leads from our informed, ready-to-buy shoppers. Sport Research Great Dea

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10 for 2016

High performance, more profit CARGURUS

Email: dealers_UK@cargurus.com T: 0800 808 5557

arGurus may be the new kid on the UK car sales block, but it’s keen to make its presence felt, riding on to our shores on a wave of success from the US. Offering a unique online shopping model that helps consumers easily search for cars and connect with dealers, CarGurus is able to drive high-volume traffic and conversions for dealers. In the US, the company has 12,000 independent and franchise dealerships successfully enrolled in its programme. Dealerships in the UK can list their stock on the CarGurus UK site for free, and later this year, CarGurus will introduce optional subscription packages. In essence, CarGurus will help dealers sell cars in higher numbers than their competitors. How? As president of international dealer operations Sam Zales puts it: ‘By providing a shopping experience that drives an educated, readyto-buy consumer to the doorstep of a dealer.’ CarGurus currently receives 16 million unique monthly visitors to its US site and those visitors return at rates two to three times higher than that of the competition; it is the second-largest carshopping site in the US by user traffic. Although relatively unknown in the UK at the moment, CarGurus is using all aspects of digital media to build consumer interest among UK shoppers and, more importantly, is already sending customer leads to dealers. Currently, CarGurus has stock of 200,000 cars on the UK site. When consumers search for a car online, CarGurus envisages being at the very top of the search results. As Zales puts it: ‘We’re going to be right there at the top of a consumer’s search results, and because of the unique experience CarGurus provides, these shoppers are educated and ready to buy when they submit a lead to a dealer through our site.’ Dealers looking to gain potential buyers need look no further than CarGurus, it seems. Ever been recommended a dealership by a friend or relative, or received advice on whether a car is a good deal? CarGurus integrates this type of experience into its online service. The site’s data analytics provide users with market value guidance on the best deals available to them at any given time for any particular model. This means consumers can quickly

see if they are getting, as Zales says, ‘a fair deal, a good deal or a great deal.’ Dealers are also rated by customers on the experience they give, allowing consumers the ability to see the very best dealers to work with. Not only this, but it also gives dealers the ability to see how they fare against competitors, giving them areas to improve on in the sales process. CarGurus was established by Trip Advisor cofounder Langley Steinert, and this enterprise hopes to utilise the popular travel site’s personal approach to customer feedback. A consumer now has access to all of the information they need to make an informed decision on a car – and will be put in touch with dealers who are eager to help them buy. Potential buyers are wielding more information than ever. Rather than see this a hindrance, CarGurus believes this creates opportunity for dealers to sell more efficiently and build better relationships with their customers. Rather than just blending into the background, CarGurus is at the forefront of a potential buyer’s car search – a technique that has worked well in the States.

CarGurus CEO Langley Steinert

How will CarGurus know how dealers work in the UK? A newbie to the scene, it’s doing what every newcomer to a school knows they have to do – make some friends. Partnering up with some of the key influencers in the market, CarGurus is investing in knowledge and relationships. ‘We’re working with the major players in the industry, be they digital marketing agencies or other shopping portals, and that’s a great opportunity for us to partner directly with companies who are saying, “Our dealer clients are looking for an alternative, they’re looking for the next comparison shopping portal that can really provide a return on investment,”’ says Zales. Rather than going into the market cold, CarGurus is stocking up with valuable information so that it can provide that alternative experience that both dealers and consumers are looking for. CarGurus is looking to provide the very best experience for consumers, as well as a highperforming, profitable investment opportunity for dealers. By seeing both sides of the market as one whole, there’s little to stop CarGurus being just as successful on this side of the pond as the other. Dealers wishing to feature their stock on CarGurus for free can contact the company at dealers_UK@ cargurus.com or by phone on 0800 808 5557.

CarDealerMag.co.uk | 77

More top automotive retailers choose us for digital than any other PRovideR

0844 846 4767 info@gforces.co.uk | www.gforces.co.uk

78 | CarDealerMag.co.uk

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10 for 2016

Providing flexibility and function GFORCES

W: gforces.co.uk T: 0844 247 4523

ith the digital world a clear and present reality for even the most modest of car dealerships, getting a helping hand from a leader in the business is an opportunity that could pay dividends. GForces is, perhaps, best known for its work in the digital arena among some of the bigger beasts of the automotive franchise world, having established strong relationships with the likes of Vauxhall, Mazda, Nissan and IM Group. Now the company has taken that hard-won experience and refined an offering that is directly aimed at the SME sector. ‘Working with a wide cross-section of the market has given us some great insights into what dealers of all shapes and sizes really need,’ said Tim Smith, GForces’ group strategy director. ‘It is something we have taken on board, and one of the key things is the new version of our web platform NetDirector Auto – which we have called NetDirector Auto Lite and is aimed solely at single franchises at up to three locations, and also the independent market. ‘It is basically distilling our main product, which can be used by manufacturers and big PLCs, and giving smaller dealer groups the same functionality at a price point that is more likely to suit them. ‘It’s exciting and we have a number of dealers who are going to go live on the platform early in 2016,’ he added. The ‘Lite’ in the title of the new product should not be mistaken for an abbreviation of lightweight, though, says Smith. It is based, he asserts, on the industry’s ‘best software platform’, and includes numerous standard features that help it stand out from the competition. Smith argues: ‘It is a very powerful piece of software that uses all the experience we have had working, for example, with large dealer groups over many years, and distilling that into a product which is now an affordable package for independent dealers and single franchises ‘When it is installed and they are using it, there are real gains to be made. That’s the key thing.’ The GForces offer doesn’t end there, however, and the company is proud to be one of only two automotive Google AdWords Premier SME partners,

as well as having effective partnerships with a host of industry suppliers. While many of these third-party products come as standard with the software and are part of the package, there is full scope to ‘bolt on’ others, making NetDirector both flexible and scalable. As Smith puts it: ‘Flexibility is at the heart of the platform. Dealers can try new products and, if they don’t work for them, they can turn them off again. Effectively, they have all the same added value products available to them that the big guys can use, but tailored for their business needs.’ GForces has other products lined up for release in May or June but is choosing to keep its powder dry for the time being, with eyes on the Car Dealer CDX16 for some big reveals. In the meantime, GForces is working at reinvigorating its marketing section and expanding services in that area. Another sector that offers significant opportunities, though admittedly posing potential difficulties, is managing and making use of the streams of data that have become a feature of the digital landscape to enhance sales opportunities.

Smith said: ‘One of the things we want to communicate, and is a challenge for us and the dealer groups we work with, is that with people interacting online there is a lot of data being created. ‘Everyone still looks at Google Analytics as the be-all-and-end-all, but we are increasingly looking into the vast swathes of data that we have available to us as a result of the clients and companies we work with, to inform how we develop our products – so they are developed and driven by data, not the whim of a designer. ‘A website may look pretty, but if it’s not working, if it’s not converting people, then it’s not helping your business.’ For GForces, using available data is a guiding principle. It’s about helping dealers make the most of the information they already have but don’t know what to do with, in turn using it to inform their online and, indeed, offline business decisions. ‘It’s an on-going challenge, and it’s not one that’s new,’ concedes Smith, ‘but I think it’s one we are getting towards cracking.’

CarDealerMag.co.uk | 79

The FD5 was not a Thunderbird. But it was still FAB! Mavica, (magnetic video camera) was a brand of Sony cameras which used removable disks. The MVC-FD5, launched in 1997, was the first digital camera to use 3.5 floppy discs (another Sony invention) for storage. Each disk could store a maximum of 55 images even if there was space left for more. It proved to be an ideal companion for any dealership who wanted to add images to their web site in a timely fashion. CitNOW Web and Request, stores 30 images a second and integrates with your Used Car Locator. ‘Walkaround’ videos can be instantly added for any car in stock. ‘Browsers’ can also request their own personal video presentation. Requests are sent straight to your Sales app ready to respond. We copy in your Sales Manager too. Visit: www.citnow.co.uk/demo to experience the power of personalised video

0118 997 7740 | reply@citnow.com | www.citnow.co.uk

80 | CarDealerMag.co.uk

FOCUS ON.

10 for 2016

Personal, timely and relevant CITNOW

W: citnow.co.uk/demo T: 0118 997 7740

• Where have all my walk-ins gone? • How do I do a ‘meet & greet’ when no one’s here? • How come everyone’s an expert now?

ack in 1997 when the FD5 was launched, things were a little more predictable. Pretty much every lead you had walked through the door. Most customers relied on your product knowledge. They popped in for a brochure; they left with a car. Life was so much simpler then! Fast-forward almost 30 years and it’s all change. Suddenly every man and his dog are experts – when they show up. Today, most customers spend more time online than in a dealership. And on average they visit fewer than two dealerships. It’s clear that the competition for new customers is no longer in your dealership. So how can you stand out and make more sales and profits in a crowded, competitive marketplace? The answer is simple. This is still a people’s business. Absolutely. You still need to make connections, just like you always did. But how do you do that successfully when they aren’t standing on your forecourt?

• My diary is full, just full of no-shows! • How do I return to winning ways? Sound familiar?

More than 12,000 personal CitNOW videos are watched every day. And the numbers continue to grow fast. Customers are not only surprised when they receive a CitNOW video, they’re starting to expect it! A personal sales video instantly builds rapport with your prospective customer. CitNOW also boosts inquiry and conversion rates. Customers really appreciate the opportunity to view the vehicle without being on site. Convenience and service go a long way to delivering a great experience and making the sale.

Quick and simple to use, most videos only take a couple of minutes to watch but they leave a lasting impression – an impression that will also improve your CSI. And it’s so important to build trust and loyalty. Your customers will feel empowered and able to make informed decisions with confidence. CitNOW videos are personal, timely and relevant. They guarantee that your sales execs make the most of every lead, and that leads to more sales as a result. [CD]

CitNOW has the answer. We’re the automotive video presentation leaders. We are trusted internationally and adopted by many UK manufacturers and dealer groups. Our video apps immediately enable you to make more sales and profits. It’s easy and simple. CitNOW is integral to your business and every customer’s journey with you.

CarDealerMag.co.uk | 81

DASHBOARD. FEATURE.

Ask Lawgistics

She’s talking nonsense or has buyer’s remorse

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

I have received a claim from the small claims court. A consumer wants to reject a vehicle I sold them. What should I expect from the court process, as this is the first time I have ever had a claim made against our company? If you wish to admit the claim and give your customer a refund then you can fill in the admission form (Form N9A) which will be enclosed with the claim form pack. If you wish to defend the claim you should complete the defence form (N9B) which will be enclosed in the pack and file a defence with the court. You must do this within 14 days of the date on the claim form. If 14 days is not long enough then you can fill in the acknowledgment of service form within 14 days and send this back to the court. This will then give you 28 days from the date on the claim form to complete your defence and return this to the court. You must remember that the defence is a separate document to the above forms that you have to fill in and it is vitally important you also enclose a defence when you return the above forms. If you need help with writing a defence you can seek advice from a solicitor or other legal professional. If you wish to make a counter-claim against the consumer to whom you sold the vehicle, perhaps for storage charges or hire car charges, you will have to file a defence as above and include the counter-claim in

the defence. After you have defended the claim you will receive a Directions Questionnaire from the court. This is a simple questionnaire that asks, among other things, whether you would be interested in mediation and also whether you have any dates you would be unavailable to attend court. Once the form is filled in, you should return it to the court within the time allocated. If both parties have expressed interest in mediation, it is likely that the next step will be a telephone mediation appointment. This is your chance to try to settle the claim before it goes before a judge and can be very useful in resolving disputes. A trained mediator will oversee the process and attempt to get both parties to come to an agreement. If mediation fails, the next stage in the process will be a hearing before a judge. The small claims process is designed so that parties can appear at hearings unrepresented without the need for a solicitor or other representation. However, some people feel that they are not confident enough to present their case effectively by themselves and instruct a professional to represent them. It is really down to individual choice. At the hearing, the judge will listen to all available evidence and make their judgment. If the decision does not go in your favour then you may be able to appeal against it, and you should seek advice as to whether this will be possible in your case.

.com

Customer wants a refund as car is ‘dangerous’

I sold a 2012 Fiesta in September 2015. It passed its MOT the day before delivery and was a category C write-off, which we made clear in the advert, and it was priced accordingly. However, the buyer has come back to say she wants a refund as the car has been in an accident and her local mechanic has told her it’s dangerous. What do you suggest? Firstly, as the car was sold in September 2015 the relevant law is the Sale of Goods Act 1979,

as the Consumer Rights Act 2015 only applies to sales from October 1, 2015. Your customer can only have a refund if the ‘goods did not conform’ at the time of delivery. In regard to the accident damage, as you clearly advertised and priced the vehicle as a cat C, she cannot use the accident damage as a reason to reverse the deal, as the vehicle was as described. We would need to know more about her claim that

it is dangerous, so you could ask for a written report from the mechanic or ask to see the car yourself. It may just be that she didn’t really understand what cat C means and/or failed to tell her mechanic she purchased it as a cat C. As you had the vehicle MOTed at the point of sale, then she will have difficulty proving it was dangerous and so I suspect your customer doesn’t have much of a case.

ADVICE

I read all your advice about the Consumer Rights Act and have been using your PDI pads to ensure my vehicles are retail-ready. I have also been putting a new MOT on each vehicle as you recommend. This has reduced complaints and made the complaints I have received much easier to resolve. However, I have a customer who is saying that the vehicle should not have passed its MOT and so wants a ‘no-quibble refund’ as she has had the vehicle less than 30 days. The MOT station I use is well established and reputable so I believe she is talking nonsense and is either mucking me about or has buyer’s remorse. Firstly, there is no such thing as a ‘no-quibble refund’. The 30-day shortterm right to reject is not a licence for customers to reject a vehicle on a whim. There has to be a good reason and the customer has to prove that any fault they complain about was present at the point of sale. Your pre-delivery checks have made it very difficult for the customer to give a legitimate reason to reject the vehicle. In this case, I would remind the customer that it is for her to prove that the car should not have passed its MOT and refer her to DVSA (formerly VOSA), which will recheck the vehicle for free as long as she reports it to them within 28 days of the MOT (or three months if her issue is corrosion-related). Hopefully that should bring an end to the matter.

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH

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Complaining customer who demanded refund went silent after help with wording of response WITH a career in the automotive industry spanning more than 25 years, Jeremy Nicholson understandably has a lot of experience when it comes to trading cars. The 49-year-old set up Proveeda in May 2005, which soon established itself as a market leader in the sourcing and supply of vehicles for sporting professionals. After many years of hassle-free operating, when faced with an issue last summer Nicholson asked around and found that the suggestion of Lawgistics’ legal advice was repeatedly cropping up. The vehicle in question

was a 2001 Mitsubishi Evo, which had been sold ‘as seen’ via dealer-auction.com, and Nicholson, below left, said: ‘We’d sold a car and the buyer had come up and looked at the car, examined it, taken a road test, came back and paid for it. A week later, he rang up and said that he’d had it in the workshop and found substantial work that needed carrying out, which would cost him £1,000, and so he wanted his money back.’ Despite being confident in his planned response to the complainant, he signed up to the Car Dealer Club and used his free Lawgistics phone call to verify his response. ‘Lawgistics were very knowledgeable, very prompt and knew all the answers to my questions,’ he said. ‘They asked me if I was going to write a letter – which I already had done. I read the letter out over the phone and they suggested I change a few words that I’d written, and then advised me to send the letter.’ One of the points that the legal advisers suggested Nicholson change was the use of the terminology ‘extremely well’. ‘In the letter, I wrote, “On the day before posting the auction listing I personally drove the car and can confirm that it drives extremely well,”’ he explained. ‘They said that using the terminology “extremely well” was something I shouldn’t do, because it was an opinion and not fact.’ With these comments taken on board, Nicholson amended his letter and sent it, dated August 25, 2015. Despite offering the buyer the chance to ‘discuss the matter further’ via a written response within seven days, he hasn’t heard from them since. ‘The thing about being an independent car dealer is that if we’ve got to go to an independent law company that specialises in consumer law it will cost us a lot of money,’ Nicholson said. ‘However, with Lawgistics we just pay a small subscription and if we have got a query we’ll be able to get it answered fairly quickly.’

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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.

EASY STEPS TO JOIN CAR DEALER CLUB

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FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND 4 HIT SUBMIT WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN OR THE POST PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER CLUB TEAM

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MARKET INSIGHT.

..in association with ASE-global.com

Share prices increase in a relatively quiet month leading up to Christmas Continuing fallout from the VW emissions scandal will make 2016 interesting, says Mike Jones

isted motor retailers reported positive share price performances during December, with only Caffyns reporting a decrease. There were few regulatory announcements and only a handful of businessto-business transactions in a traditionally quiet month for the industry. It will be interesting to see how the industry fares over the coming year, particularly as the customers affected by the Volkswagen emissions scandal start to revisit retailer showrooms. The FTSE100 finished the year down on the start of the year despite significant increases during the first half of 2015. The UK market is growing at a steady rate, but there are fears that falling commodity prices will leave inflation stagnant, influencing the timing of consumer purchases with customers deferring purchases in the hope of getting a better deal. This will be something for the motor industry to keep an eye on in 2016. Share price performance December saw continued increases to share prices on the whole, against the backdrop of a poorly performing share price market across all listed businesses the UK. Only Caffyns’ share price dipped in December. Pendragon, Inchcape and Cambria saw increases with no regulatory announcements made in the month. Vertu also saw their

Share price movement from Jan 1 to December 31, 2015

Share price movement from Jan 1 to November 27, 2015

Pendragon

143.8%

133.1%

Vertu

128.2%

127.4%

Lookers

142.3%

130.8%

Inchcape

108.3%

107.8%

Cambria

170.2%

153.2%

Caffyns

98.2%

102.7%

Marshall*

114.2%

110.5%*

*since admission to AIM on April 2, 2015 shares rise in price in the absence of regulatory announcements; likely due to the acquisition of AceParts, completed mid-month, and the continued earnings benefit of the South Hereford acquisition in October. The FTSE 100 continued its slide amid falling commodity prices, stalling inflation and the concern over consumers deferring purchases. Pleasingly, this does not appear to be having a

negative impact on the motor retail businesses as evidenced by the share price rises above. However, some caution must be taken when considering the impact of low inflation as it is often larger luxury purchases that are deferred first, such as new vehicles. Financial performance There were no financial results reported by the listed motor retail companies this month. Generally the industry is reporting a lower ROS compared with last year because of a number of factors, a significant one being increased manufacturer targets. Transactional activity December transactions included Lookers disposing of three of the Toyota/Lexus businesses that were acquired from Benfield in autumn. Lookers has limited exposure to the Toyota and Lexus brands as a group. The businesses were sold to Meridian, for a total consideration of £12.7m. Lookers’ chairman Phil White has a 30 per cent holding in Meridian and therefore the deal was disclosed to the stock market as a relatedparty transaction. Vertu Motors continued their acquisition strategy with the purchase of online parts retailer AceParts in a deal worth £2.2m, including £1m goodwill over a five year earn-out period for the founders of the business.

Lookers disposed of three of the Toyota/ Lexus businesses acquired from Benfield in autumn

Who is Mike Jones? He’s the chairman of dealer profitability specialist ASE plc. You can read ASE’s column here every month CarDealerMag.co.uk | 85

Turntable Pro

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www.turntablepro.co.uk 86 | CarDealerMag.co.uk

TAKING STOCK. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that are important to dealers for the months ahead

So far, 2016 has been VERY busy – and now the hunt is on for the best quality cars Buying the right stock at a good price, and in a timely fashion, is crucial, says BCA UK’s chief operating officer, remarketing, Simon Henstock

ollowing the record level achieved in November, average used car values fell slightly in December to £8,046, according to our latest Pulse Report. A change in market sector mix contributed to the decline in the headline value as a larger percentage of dealer part-exchange cars were sold in December compared to the previous month. This also resulted in average mileage and age rising over the month. Despite the month-onmonth fall, however, December’s average value was the third highest on record and remains ahead year-on-year. The average value of a used car sold at BCA in December decreased by £80 (0.9 per cent) to £8,046, with performance against CAP Clean improving to 96.4 per cent. Year-on-year, average values were up by £39 (0.5 per cent), with age static and mileage down by some 2,000 miles. Performance against CAP was up 0.4 per cent compared to 2014. While average values for fleet/lease and part-exchange cars both fell back slightly over the month, nearly-new values improved to their highest point in 2015. December is a short month for trading and both the market sector mix and model mix tend to change quite significantly. Fleet and lease stock is typically in more limited supply in December, while dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity. There is still a competitive trading environment in December as professional buyers look to source the most attractive, retailready stock to meet on-going customer demand, while also keeping an eye out for stock suitable for the January upturn. The early days of trading in 2016 have been exceptionally busy and with the new plate on March 1 only weeks away, we are entering one of busiest periods for the motor trade.

Sourcing and securing those bestquality retail cars will be critical for professional buyers in the weeks ahead and buying the right stock at a good price and in a timely fashion is crucial. Fleet and lease car values averaged £9,588 in December, a fall of £190 (1.9 per cent) compared to November’s figure of £9,778. Retained value against original MRP (Manufacturer’s Retail Price) was down slightly at 40.21 per cent, with age and mileage broadly static. Compared to December 2014, average fleet and lease values were up by £462 (5.0 per cent), with both performance against CAP Clean and retained value up on 2014.

Average value of a used car sold at BCA:

£8,046

Average values for dealer part-exchange cars declined for the second month running, down by £66 (1.5 per cent) to £4,248 over the month, with performance against CAP Clean static at 96.5 per cent. Year-on-year values remain ahead by £135 (3.2 per cent), with CAP Clean performance ahead by two percentage points compared to a year ago. Nearly-new values improved by £671 (3.1 per cent) to £22,074, the highest value recorded in 2015. As we always say, model mix has a significant effect in this very low-volume sector. The final thing to note is that CAP Clean performance improved marginally to 99.4 per cent over the month.

Year-on-year values ahead by

£135

CarDealerMag.co.uk | 87

AUCTIONS.

Henstock AUCTION STATIONS

Clarity and objectivity thanks to Dealer Pro

Autorola appointed to help Kia dealers shift part-exes and old stock ‘Both the supply of, and demand for, used cars continues to grow’

ia has appointed Autorola as its online remarketing partner to support its dealer network in selling unwanted part-exchanges and duplicate or over-age stock. It will also act as the portal to enable the 188-strong Kia network to trade cars between dealers and for repatriating used Kias back into the franchise. Kia has around 15,000 used cars in its network, including a comprehensive selection of models ranging in age from a few months to four years. This includes stock from the award winning Approved Used Scheme which offers a seven-year manufacturer warranty on used cars up to 18 months old. Cars have already been bought and sold by Kia dealers with online set to

offer another dimension to the network’s remarketing approach. David McCluskey, Kia Motors UK national used vehicle sales and remarketing manager, said: ‘Our partnership with Autorola will provide an additional remarketing option that enables our dealers to further refine their focus on used cars. The early signs are that the dealers have embraced online and as the brand continues to grow they will be able to use the portal to fine-tune their used car businesses.’ Jon Mitchell, Autorola UK’s sales director, said: ‘The Kia franchise has seen fantastic growth and both the supply of, and demand for, used cars continues to grow. Online is a very dynamic way of helping dealers sell or buy used cars and quickly balance their stock when required.’ Kia Motors (UK) Limited recorded a new annual sales record of 78,489 in 2015 in the face of increasing competition in the new car market.

he March plate-change period inevitably sees volumes rise substantially in the wholesale markets and stock levels traditionally remain high until at least early May. This typically means an influx of part-exchanges for dealers. How can they get best value from their disposals? From the dealer’s perspective, now is a great time to appraise any over-age stock and get it sold, clearing the decks, as it were. There is no quicker or more profitable route to market for your part-exchanges than auction and, more importantly, it frees up cash to invest in retail-ready stock. While there will always be plenty of demand for the best, retail-quality cars, vehicles that are in poorer condition, lower spec or higher mileage must be valued to sell in line with market sentiment. To maximise the profit from part-exchange vehicles, it is critical to appraise them consistently and accurately, ensuring the selling customer feels confident both in the process and the valuation. BCA’s Dealer Pro tool can help, bringing clarity and objectivity to the appraisal and valuation process. Dealer Pro also improves the customer’s experience, increasing confidence with a professional appraisal process that they can see and understand, and giving credibility to the partexchange value they are quoted. BCA Dealer Pro allows retailers to be transparent with customers as they capture the condition of the incoming part-exchange car via an iPad, with auto grading to NAMA standard and real-time BCA Market Price valuation data. Incoming part-exchange vehicles can be processed fluidly, and allocated to retail or trade as appropriate. It also integrates with other dealer systems, such as lead management and provenance systems, to improve overall dealer efficiency, and enables all data captured to be used in any sales channel. When market conditions are changing, it is always better to be ‘in the know’, rather than hoping for the best!

Who is Simon Henstock? ‚

He is BCA UK s Chief Operating Officer – Remarketing. Visit british-car-auctions.co.uk or call 0845 600 6644.

MAJOR CORPORATE FLEET & MANUFACTURER CAR AUCTIONS 3 100’s of Professional buyers every Thursday 10am – 300 fleet vehicles at Rockingham and Belfast 3 Live Bid 2 online technology available from smartphone and tablet 3 Buy with confidence - corporate vehicles subject to mechanical health check and 20+ digital images 3 Competitive buyer fees - buy five cars or more and qualify for Platinum rates

ENTRIES INVITED FROM CORPORATE VENDORS WORLD CLASS FACILITIES – FIRST RATE SERVICE Click www.cityauctiongroup.com for vehicle details, images and NAMA inspection reports 88 | CarDealerMag.co.uk

Skoda left red-faced by ‘Ocatvia’ advert in Daily Mail. bit.ly/skoda-95

Campaign focusing on stock funding facility attracts buyers

RESTORATION

Students’ work helps charity

Joint Aston Barclay and NextGear Capital initiative proves popular

ncreasing the number of active buyers is central to Aston Barclay’s growth plans and the business has teamed up with stock-funding expert NextGear Capital to deliver a smart new initiative giving incremental sales and a platform for further growth. Aston Barclay has worked with NextGear Capital since June 2014, benefiting from the capacity to offer dealers stock-funding for the auction hall and for online. At a recent auction at Aston Barclay’s Chelmsford centre, the two businesses delivered a joint campaign focusing on signing up new dealers to a

stock-funding facility. The impressive results show how NextGear Capital can help add a new edge to the remarketing process. For one day, dealers buying stock through their NextGear Capital facility were able to do so without the normal loading fee. Five new accounts were opened and three existing NextGear Capital dealers funded vehicles at Chelmsford for the first time in 2015. Twenty-four units were funded. Aston Barclay’s southern remarketing director, Martin Potter, explained the impact, saying: ‘We have had some good traction with

buyers by offering them the NextGear Capital Stocking plan. At the recent Oktoberfest-themed sale we had existing buyers buying more cars and new buyers visiting the auction and buying stock for the first time. It provides a positive situation for both buyers and our sellers.’ One dealer, Les Pauls, had never bought from a physical auction before. Encouraged by Aston Barclay’s marketing, he opened a stock funding facility, then bought and funded four vehicles. ‘It was a great experience, and my eyes were opened to the potential to increase the quantity and quality of stock I can hold,’ he said.

racing events while going about the business of buying and selling cars – what could be more enjoyable? James Edwards, CAG-R’s marketing director, said: ‘We have built a fabulous line-up of corporate vendors and our trade customers now rely on the stock that we present for sale every fortnight at Rockingham. In 2016, we plan to grow both vendor 10:53 Page 1 numbers, and and trade customer

the professional team at CAG-R is expanding to enable us to do this effectively in a competitive market.’ CAG-R’s operational team has also strengthened in the past 12 months, with Assured Group – whose other customer is Aston Martin – providing its vehicle preparation skills, and a partnership with Gefco enabling CAG-R to provide a ‘one-stop shop’ remarketing and auction service.

One year on and Rockingham venture is going from strength to strength for CAG CITY Auction Group’s Rockingham operation is almost a year old. When the team rolled into Rockingham Motor Circuit last year to set up for the inaugural event of 2015, the weather was very similar to what it is now – dull and raining. This did not dampen the team’s spirits, though, and the first 450-car sale went with a bang. Since then, CAG-R has gone from strength to strength, combining the ethos and excellent customer service of City Auction Group with Rockingham’s iconic venue. Vendors and to see exciting Carcustomers dealerget May 2015 24/4/15

No cowboys. Just Just trade trade professionals. professionals.

A CLASSIC Rover expertly restored by students at a Newcastle college has been sold by BCA to raise money for the automotive industry charity BEN. The 1960 Rover P100 in two-tone green was offered for sale at BCA Measham in December and attracted a large crowd of buyers. Despite being offered as a non-runner, it sold for £3,150 following some very competitive bidding, with all proceeds going to BEN. The car was restored to a high standard by Newcastle College students studying on the bodyshop repair course. Finished in light green over dark green, the car had benefited from a full cosmetic restoration to the bodywork and had been resprayed. Jo Jones, partnership development manager for BEN, said: ‘BEN is very grateful for the support that BCA has provided to help make the project such a success.’ BCA’s head of PR, Tim Naylor, added: ‘We were delighted to offer this beautifully-restored 1960 Rover to raise funds for BEN. ‘Well done to the students at Newcastle College on a fantastic job in bringing this British classic back to life.’

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

CarDealerMag.co.uk | 89

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90 | CarDealerMag.co.uk

KEY NOTES

..in association with Traka

Get smart with social

‘Digital comfort zone’ is a great way to keep in touch with customers, says Paul Smith

he customer remains king and the internet is increasingly where they exercise their ‘royal prerogative’ – especially when it comes to buying cars. It makes sense therefore for ambitious car dealerships to look far more closely at how their customers and prospects are interacting with them via social media channels. They must use these new channels to develop a better understanding of them and ultimately to build customer loyalty and satisfaction. Aligning Customer eXperience Lifecycle Management – or CXLM – with social media programmes to engender a ‘customer-centric’ model is, according to sector analysts such as Ernst & Young and Tata Consultancy Services, both an opportunity and a challenge for the automotive retail sector. This isn’t just IT-inspired hype; we believe there is a genuine opportunity for dealers to align CXLM with their social media interactions with customers, but they must approach it with two-way communication in mind for concrete success. First up, they need to buy in to the CXLM premise and agree that a customer retained in the long term will be worth significantly more (through several cycles of repeat business and servicing) than tracking down and winning brand-new customers. Automotive OEMs may well be running digital advertising campaigns online, but regular ‘online sociability’ by dealers offers many more ‘touch points’ with the customer, as management consultancy McKinsey has pointed out. The appeal of social media is that

car dealers can converse with their customers inside a ‘digital comfort zone’ that they are very unlikely to unsubscribe from. Dealers grounded in traditional soft-sell/ hard-sell models of customer engagement, for whom the intricacies of social media are not natural, will need to think again. The view that social media interaction can contort and weaken sales messages needs to be junked also. Even dealerships that have established social media plans will probably need to revise them to bring them into line with CXLM goals. There is work to do here: social media big-hitters such as Facebook, LinkedIn and Twitter are constantly being

refreshed. New features are being added by each channel and new links to other channels are being forged all the time. Dealers will need to keep abreast of their chosen channels and have a plan to take advantage of new features as they go mainstream. Social marketing can support dealers’ efforts to build market awareness relatively cost-effectively. It doesn’t cost much for dealers to invite customers to become friends and contacts on social networking platforms, or to create interest groups that connect them into relevant interest groups such as car restoration in Porsche’s case, localised traffic reporting – tapping into preferences that target customers express in their social media profiles. People reveal a great deal about themselves in their chosen social media channels. New additions to family, a new job, adopting new outdoor pursuits or moving to a new area are all goods triggers for you to be in touch. CXLM is predicated on taking the longer view, and should recognise that a customer’s attitude toward their recently purchased car will change over time. They may immediately like some of the new car’s driving characteristics but be indifferent about others extolled by OEMs and dealers alike. Again, customers may share this information through their social media postings, providing near-real-time ‘field data’ on satisfaction levels associated with a new model. OEMs may well be running their own sentiment-based data analyses based on what people are saying about new models via social media, so get them to share their findings with you. But remember that customers are likely to be wary of interaction that seems impersonal, inappropriate, or pushy.

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.

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RECRUITMENT.

Exchange and Mart starts new era with two key appointments Pair aim to develop famous brand’s profile with a younger audience

xchange and Mart has appointed Jim MurrayJones as its general manager, alongside Thom Coupar-Evans as sales director, marking a new era and renewed investment for its used car classified advertising and trade portal, exchangeandmart.co.uk. Murray-Jones, on the left in our picture, joins from News UK automotive, where he led the strategic and product transformation of the classified listings and editorial sites sunmotors. co.uk and driving.co.uk. Previous roles include overseeing the digital leadership team at Haymarket, where among other things he managed the acquisition of Pistonheads and product development for titles including Whatcar? and Autocar.

Prior to that, he led product development for autotrader.co.uk as part of the senior management team during a seminal time in Auto Trader’s digital growth. Coupar-Evans joins Exchange and Mart from AA Cars, where he was national sales manager. He also gained experience at Auto Trader as

MMG careers advert_Layout 1 26/07/2012 15:29 Page 1

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A fantastic job move for Carl CARL HOUGH, 36, has been promoted to new car sales manager at Stoke Audi. Hough is delighted with his new role and said: ‘I just can’t wait to get stuck in!’ He steps into the position vacated by George Masters, who recently retired. Having begun in sales in the consumer goods sector, selling frozen food into supermarket chains, Hough moved into the motor trade 15 years ago and hasn’t looked back. He said: ‘I feel fortunate to have found an industry and a role that I genuinely enjoy; I’ve been a sales executive at Stoke Audi for four-and-a-half years and have achieved Audi accreditation to sales manager level. ‘To be promoted to the new car sales manager role is just fantastic.’

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an account director, where he was responsible for maintaining and growing its trade customer product portfolios, ultimately supporting customer growth plans and strategy. Commenting on his appointment, Murray-Jones said: ‘Between us, Thom and I have witnessed many of the key developments in automotive publishing over the past 18 years. ‘Much of Exchange and Mart’s brand awareness is biased to older car buyers, which means the site generates an especially strong response among buyers with a high disposable income. ‘The opportunity now is to use that brand strength and SEO footprint to build the Exchange and Mart profile with younger car buyers, ensuring we fully exploit mobile and social channels.’

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

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#CDX16

THE BIGGEST UK AUTOMOTIVE EXPO OF ITS KIND Silverstone, May 24, 2016 For more information go to

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HOT PROPERTY

..in association with Rapleys LLP

Opportunity knocks Geoff Sayer looks at changes on the way to the business rates regime this year

he new year is up and running and hopefully full of promise for the automotive sector – but as new opportunities present themselves, others will be lost. Any readers who occupy commercial properties will be only too aware of the business rates regime – however, 2016 has some changes in store not least because the current rating list, dating from 2010, was extended from 2015 to 2017. Unpopular as that was in many quarters, the government then decided to eat their cake as well by behaving as if the current list only ran for five years. Therefore your agent, if you have one, had to make an appeal by March 31, 2015, for any savings to go back to 2010 – after that date the change and any benefit only took effect from April 2015. However, the Valuation Office gets an extra

year so the opportunity exists, but only to the end of March 2016, to invite the VO to do their statutory duty of amending the list where there is a factual error or inconsistency. So why is this an issue now, and where do the opportunities lie? Well, because the list is still live, there remain relatively large volumes of appeals being dealt with, each one of which has the potential to alter both the Rating List and the basis upon which the Rateable Values are calculated in a given area. You may have 40 display spaces on your site and because you agreed your assessment in 2012 at £400 per space you won’t know that there were two appeals after yours which resulted in a rate of only £250 per space. Maybe you agreed front spaces at full rate and the second row at 75 per cent but other appeals have resulted in 50 per cent? It may even be that the display areas

have been treated at a rate per square metre instead of ‘per space’. Don’t forget that you may also have made changes to your site. Any which may have reduced the Rateable Value should be looked at and checked. So here are a few things to do. Firstly, check the calculations or get an agent to do so quickly. Secondly, make an appeal if you find something as this will at least secure your position back to 2015, and thirdly, invite the VO to do their statutory duty by altering the list to correct the inconsistency, in which case the savings can potentially go all the way back to 2010. You should get your proposals in as early as possible in February to have any chance of success. Remember, the VO will need time to alter the list and the door closes after March! Specialist advice is strongly recommended.

Who is Geoff Sayer?

Geoff is a Partner in the market leading Automotive & Roadside Team at Rapleys LLP, providers of specialist property advice for over 30 years

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

CarDealerMag.co.uk | 95

THE FLEET.

LATEST FROM THE FLEET... Second report:

Second report:

Fourth report:

CitroenCactus

HondaCivic Tourer

Mazda2

I took the relationship to the next level – but how did things go?

Load-lugger and mile-muncher doubled up as Christmas sleigh.

The much-lauded i-stop system was the only seasonal niggle.

TWO months in, and, thanks to a lengthy Christmas break, I’ve had some much-needed time to get to know the wee Cactus (or should that be the C-petit-four?) a bit better. So much so, in fact, that I thought it was time to take our relationship to the next level. That’s right: the terrifying introduction-to-the-parents stage. In reality, though, the Cactus had it pretty easy. As an avid reader of Car Dealer magazine – and, frankly, name me a 60-something-year-old woman who isn’t – Mrs Reay had already spotted the Cactus in last month’s mag. What’s more, as the owner of a first-generation C4 powered by the same 1.6-litre engine, she’s already a bit of a Citroen fan and is now at the stage of eyeing up a replacement. So how did the Cactus fare? So-so. The eye-catching exterior and funky interior got a resounding thumbs-up, as did the ride quality and – curiously for a cheaper car – the consensus was that it seemed more refined, too. Rear leg room got a definite mark down though, and the fact that the Cactus’s panoramic roof has no blind was also mentioned as a potential deal-breaker (I do hope you’re writing all this down, Citroen). Despite that, the Cactus behaved well enough to get Mother Reay’s overall approval. Would she buy one? Apparently not, but that’s fine by me… Jon Reay (@JonReay)

MY COMMUTE from home to office isn’t exactly conventional. I live 312 miles away from Car Dealer Towers, so when someone announces that we have a 70mpg+ car on the fleet, it’s a challenge to get the keys off me. The Civic Tourer isn’t quite as frugal in the real world, however. With the cruise control set at 70mph for a long plod up (or down) the country, nearly 55mpg isn’t to be sniffed at, especially compared to the 35mpg of my own car. The fuel gauge does seem to drop at an alarming rate, but then the tank can only hold 11 gallons. One minor bugbear is that the engine isn’t quite torquey enough in sixth gear to maintain the 70mph requested by the cruise control and the speed will often dip two or three mph. Winning the Civic over Christmas also meant that it was pressed into action as a sleigh. The variable boot floor was great for preventing particularly heavy presents from sliding about, while a wee cubby on the right-hand side provided refuge for some more fragile items. There’s loads of room under the rear seats too – though the fact that the seat bases fold down into them when you drop the backs nearly spelled disaster for a box of Lego. It’s put in a good shift this month as a milemuncher, load-lugger and family car and the keys are back in the pot. Of course, I have another 624 miles to do this weekend... Andrew Evans (@snavEwerdnA)

AS I picked up the key to VU65UAT once again, I did a little internal air-punch, because make no mistake, this is a joy of a car to drive. My big test of how good a car is, is a simple one: how quickly do I feel at home in it? And the Mazda2 is instantly welcoming. Plus it ticks all my boxes for a supermini – it looks good, it handles well, and it has a superb range of spec. And what I really love about it is its gears. More precisely, the way they slip confidently into place with what can only be described as a reassuring and satisfying ‘clunk’ that goes with fine engineering. Oh, the thrills that I experienced! (Hey, I’m a man of simple tastes. Don’t judge!) One niggle, though – the much-vaunted i-stop system. It may well improve fuel consumption, but there were occasions when the engine chose to remain stopped when I really needed it to start again – preferably before the person behind me at the lights moved off and straight into me. I could sense their frustration each time. Fortunately, that was the only sensation; there weren’t any shunts from behind, but it would surely only take one over-eager motorist to demonstrate rather expensively what happens when an unstoppable force meets an immoveable object… That aside, it was with great reluctance that I returned VU65UAT’s key, and I sincerely hope it’ll be finding its way back into my eager palms before too long. John Bowman (john@blackballmedia.co.uk)

THE KNOWLEDGE Model: Citroen C4 Cactus Flair 1.6 BlueHDI 100 Price: £18,765 Engine: 1.6-litre turbocharged diesel Power: 97bhp Max speed: 114mph 0-62mph: 10.7 seconds Emissions: 89g/km Mpg: 83.1mpg Mileage this month: 921 THIS MONTH’S HIGHLIGHT It’s always a relief when mother approves – so that was nice. 96 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Civic Tourer 1.6i-DTEC SR Price: £24,940 Engine: 1.6i-DTEC Power: 120bhp, 300Nm Max speed: 121mph 0-62mph: 10.5s Emissions: 103g/km Mpg: 55 (combined) Mileage this month: 1,844 THIS MONTH’S HIGHLIGHT Feeling like I was Santa pulling his sleigh after a long trip north...

THE KNOWLEDGE Model: Mazda 2 1.5D SE-L Nav Price: £16,395 Engine: 1.5-litre turbodiesel Power: 104bhp Max speed: 111mph 0-60mph: 10.1sec Emissions: 89g/km Mpg: 83.1 (combined) Mileage this month: 782 THIS MONTH’S HIGHLIGHT The thrill of the gears – and not getting shunted at the lights.

LONGTERMERS

Fourth report:

Sixth report:

RenaultTwingo

MitsubishiL200

Ford FocusST

I got over my twinge and I’d be happy to see la petite one again.

This truck helped me to have a merry and masculine Christmas.

Fun on winding B-roads, effortless cruising on the M4.

IT WAS with a certain twinge of sadness that I saw my name wasn’t next to the Mazda2 on the list for our Christmas and new year break. I’d grown quite attached to the supermini, you see, and had secretly hoped to spend more quality time with her. But it was soon a case of ‘Twingo all the way’ (well, it was the festive season after all), thanks to Renault’s impressive city car. How fickle am I? This smart, nippy motor proved to be a real pleasure to drive, with her no-nonsense handling. Not being confronted with a dashboard and display worthy of a space mission was also immensely pleasing – not to mention a relief. Give me basic and straightforward anytime. Among my journeys was a day trip to Bournemouth, and its manoeuvrability came into its own when I had to do a quick U-turn to avoid being fleeced by one particular car park operator. True, the windscreen demister is loud, a footrest would be a boon, and surely in this day and age a sat nav could – nay, should – be included as standard, but apart from that I can’t really fault the French filly. Particularly gratifying were the admiring looks and comments that the Twingo drew wherever I turned up. Natty inside and out, it’s a car whose colour-co-ordinated design oozes élan effortlessly. From twinge to Twingo… Yes, I’ll be more than happy to take custody of la petite one again. John Bowman (john@blackballmedia.co.uk)

THERE’S something about the L200 that makes me feel more manly. It’s probably something to do with the fact it’s a truck and reminds me of redneck Americans who shoot things out the back of them. Over the festive season I was bored with eating, and found myself strangely not drunk on one day (liver had decided it really needed a break), so I decided to do some manly stuff with the L200. The Mitsubishi is, after all, a working vehicle for men who wear high-viz jackets and visit petrol stations for copies of red-top newspapers and sausage rolls at very strange times of the morning. OK, I’m generalising a bit there, but you know what I mean. Anyway, first up was carting away a shed-load of bricks and rubble that had been smashed out of the fireplace in my front room. I wasn’t prepared for quite how hard this would be but thankfully the covered load area in the back of the L200 coped admirably. While at aforementioned designated refuse area, I noticed a large number of unwanted wooden pallets too and decided they’d make excellent (free) fuel for my new fire. Deal done with garbage man, I packed the now empty-ofrubble load bay with wood. And then repeated the process five times. Result? A drive empty of rubble and a shed full of drying wood. Told you I’d been manly – and it’s all thanks to the L200. James Baggott (@CarDealerEd)

AT LAST it was my turn to take a turn in our Ford Focus ST. As my colleagues have already indicated on these pages, we were all granted lengthy spells in particular cars over Christmas, so for two weeks, EO15KWT was mine. Seldom has any car on the fleet come more highly recommended. A few issues ago, our operations director described the ST as the best hot-hatch on the market, while el Presidente described it as entertaining and comfortable a month or two back. So what would I think? Well, it was just fantastic to have something so exciting and exhilarating to drive. I headed up to Gloucestershire quite a bit during the festive season and had great fun on some winding Cotswold B-roads, with the electronic torque vectoring control system delivering grip and precise handling characteristics in spades. Andy took the car on our annual Bangers4BEN charity rally last year. Hundreds of miles of autobahn cruising left him feeling well impressed – and although a few dozen miles I did along the M4 is chicken feed by comparison, I found the ST’s electronic transitional stability system a boon – it’s designed to help to maintain precision and control when changing lanes or overtaking. It’ll be a bit late for new year resolutions by the time this appears in print but I’ll definitely be aiming to get my hands on the keys to the ST a bit more often in 2016. Dave Brown (@CarDealerDave)

THE KNOWLEDGE Model: Renault Twingo Dynamique S Energy TCe 90 Price: £12,545 Engine: 0.9-litre petrol Power: 98bhp Max speed: 103mph 0-60mph: 10.6sec Emissions: 99g/km Mpg: 65.7 (combined) Mileage this month: 450 THIS MONTH’S HIGHLIGHT Avoiding a pricey car park in Bournemouth.

THE KNOWLEDGE Model: Mitsubishi L200 Warrior Double Cab (manual) Price: £27,658 (commercial vehicle list price, excluding VAT, is £23,049) Engine: 2.4 litre MIVEC diesel Power: 178 bhp Max Speed: 111 mph 0-60mph: 10.3s Emissions: 173g/km Mileage this month: 355 THIS MONTH’S HIGHLIGHT Realising I can actually cope with manual labour.

THE KNOWLEDGE Model: Ford Focus 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: 889 THIS MONTH’S HIGHLIGHT Finally getting behind the wheel of a car I’d heard so many good things about. CarDealerMag.co.uk | 97

BAGGOTT.

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

2016 could well be the year of the EV – and my other predictions I

t’s at this time of year that thoughts turn to plans for the months ahead, to ringing in new starts – or, for those of us who can’t be bothered with either, to sticking their oar in and predicting what might happen to everyone else during the next 12 months. I bet you can guess which camp I reside in... As I sit here realising the Christmas over-indulgence has made my trousers tight, the thought of giving up booze is making me frown with Olympic levels of precision and a mistimed medical has warned me three days into the new year that my cholesterol levels are at artery-worrying levels, let my grumpy mood and cheese hangover help predict some automotive milestones that we may, or may not, see in 2016. I’ll start with Volkswagen. Battered and bruised from an emissions crisis that shocked the world, I don’t think it’ll be long before the manufacturer sees customers returning to its showrooms. Yes, it screwed up with a BFG-sized own goal when its engineers fiddled software to trick its way through emissions tests, but at the core of the maker are some very good, serial-award-winning cars. There’s no doubt the pounding from the press will continue – especially as fines and court cases ensue – but this will soon become old, boring news only affecting old cars no longer in showrooms, and it won’t be long before buyers flock back to the German maker. Just as it has done during 2015, the SMMT will refuse to admit that pre-registrations are misleading the public into thinking the new car market is more buoyant than it actually is. I asked for a comment on the statement in this issue’s interview with Gary Savage, Mercedes-Benz MD, where he openly admitted that pre-registrations were taking place (see page 14), but the SMMT said it was ‘too busy to comment’. Too busy, it seems, presenting the annual new car sales figures a day early to the national press and a clutch of automotive media. Was Car Dealer invited? Of course we weren’t. We’re the ones that ask the awkward questions and we know the SMMT likes nothing less than awkward questions. I’d love to see 2016 be the year the trade body finally explained exactly how pre-registrations are skewing the true state of the market, but can’t see it happening. I hope I’m proved wrong. On a more positive note, I think this could be the year electric vehicles start to win more market share – but it won’t be easy. From March, the government green car grant is slashed in half to £2,500 for plugin hybrid vehicles, a segment that has seen sales boom in the past few years. This will push buyers

Who is James Baggott?

James Baggott AGAINST OUR BETTER JUDGMENT, WE GIVE OUR MD THE LAST WORD EACH MONTH

towards pure EVs that still benefit from £4,500 of government cash, as long as the range is more than 70 miles. Electric cars have been around five years too – and the batteries many worried would fail are still performing perfectly well. However, EV sales will come up against stiff competition from ultra-efficient conventionally powered cars. With the cost of fuel dropping to under a £1 a litre and diesel predicted to fall to as low as 90p per litre, buyers may still need some convincing that electric cars are the solution. Conspiracy theorists say oil producers are purposefully bringing the cost of fuel down to kill off EV tech, only to then ramp up the price again. Stranger things have happened. Despite this, I think more electric vehicles will find homes in 2016 than ever before. OK, that’s the deep stuff out of the way. Now for some quick-fire predictions. The new Ford Focus RS will be billed as the ‘best car ever to wear the legendary badge’ by everyone who drives it, waiting lists will form and they’ll exchange

‘We know the SMMT likes nothing less than awkward questions.’ hands for more than list price in the first few months. The new Honda NSX will be good, but won’t be good enough to beat its more established rivals. The plug will finally be pulled on the think-hard-and-you’ll-remember-it brand Proton, which last year registered a woeful 10 cars, a whole ONE less than in 2014. Meanwhile, the Geneva motor show will go Bugatti crazy as the wraps finally come off the Chiron, the replacement for the Veyron. The first car will be delivered to Dubai and will be all sorts of hideous in its specification. And Jaguar Land Rover’s world domination will continue as it attempts to better its outrageous press stunts yet again – this will result in the brand finally landing an Evoque Convertible on the Moon. Probably. At this point I’m running out of the miserly space that production ed Dave allows me. So I’ll leave you with some final – Jerry Springer-style – thoughts: New car sales will continue to rise (moderately); motor trade businesses will continue to grow, new cars will consistently be more brilliant than their predecessors; and as Big Ben rings out the end of 2016, we’ll all be very glad once again that we were along for the ride.

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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