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wasn’t until I was WELCOME. Itstripping down to my undergarments in the disabled loos that I realised that the meeting I’d biked into Westminster for could actually go one of two ways. There was a chance of some serious moaning, possible tea throwing and a rather large dressing down – the sort of which I was seemingly preparing for in aforementioned (very clean and tidy, it must be said) toilet. The other would be a more positive outcome with less tea throwing. I was hoping for the latter. So it was with some trepidation that I emerged from the SMMT facilities last month ready for my meeting with their head of communications. I feel at this point I should pass you the mind bleach and explain that I was in my smalls because I’d ridden into town on my BMW GS, not because I was preparing for some elaborate Fathers For Justice-style pant protest. Why, you may ask, did the SMMT want to meet me? After all, as one of my learned colleagues perfectly put it, I’d been ‘prodding them with a stick’ for months. Well, because as a grown-up organisation run by grown-up people, they understand that sometimes the press will have a different opinion to the one they hold – and that in such circumstances it is actually beneficial to sit around a table and have a discussion. Shame our friends in Luton aren’t of the same mindset. Anyway, we chatted about our differences on preregistrations, we talked about our upcoming events and theirs, and we spoke at length about the forthcoming Brexit vote. It was a constructive meeting and one which opened the lines of communication once again. So much so, that this month we’re delighted to have an exclusive piece written by SMMT chief executive Mike Hawes on why he feels an ‘out’ vote would be bad news for the car industry. You can read it on p22. What’s more, I’m even more delighted to announce that Hawes has signed up to be the latest keynote speaker at CDX on May 24.
If you haven’t already got your free tickets for the event, join the hundreds of others who already have, by visiting CarDealerMagazine.co.uk. This month, the team and I have been in Switzerland for the annual Geneva Motor Show, pictured above – and we’ve got many brilliant pages of coverage to prove it wasn’t a skiing holiday / chocolate run. Dave, Sophie and I (well, mostly the first two) grilled a number of manufacturer bosses about their plans for the years ahead and the new models they had whipped the covers off on their brightly-lit stands. Our comprehensive coverage starts on p32. The team has been busy refreshing our Car Dealer Club offering this month, too, and there are a host of new and exciting offers – the most popular of which is always the free legal advice. For just £39.99 a year, you get access to Lawgistics’ legal experts for a free phone call to put your mind at rest when the going gets tough. Hundreds of dealers have already signed up and used the service and now there’s even more reason for you to join them. See p26 for more on our new offering. And lastly, we’ve been busy launching yet another new project this month. Trade Plates TV is your online motor trade news channel where you’ll find weekly bulletins, a fortnightly live panel show and some brilliant features on cool dealerships and workshops. You can catch up on all the shows at TradePlates.tv now. They’re produced with you in mind and I hope you enjoy them as much as we’re enjoying making them. More details can be found on p30.
James Baggott Managing Director CarDealerMag.co.uk | 03
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INSIDE. ISSUE 97 I APRIL 2016
Dashboard Feedback Looking ahead to CDX16
32
Dieselgate investigation
26 pages of Geneva coverage From sensational supercars to more conventional SUVs, our reporters bring you news from the main manufacturers
Rybrook interview Car Dealer Power Europe: In or out? Car Dealer Club Trade Plates TV Geneva Motor Show Around the World Finance
14 22
So how has Dieselgate affected used VW prices?
SMMT’s Mike Hawes on the EU: Should we stay or should we go?
80
‘‘
Forecourt The new online sales portal that’s causing a bit of a stir
DS 3 Puretech Mini Convertible Toyota Prius
There will always be a market for old tat in the car trade’s dumping ground Big Mike
Hyundai i20 Active
Feature
69 Data File Taking Stock Auctions Market Insight Recruitment Suppliers’ Guide
74
Key Notes Hot Property Long-termers Laura Thomson got behind the wheel of the new Mini Convertible – but was it as much fun as she’d hoped it would be?
James Baggott
70 72 74 76 80
Tackling Tootle
The Statistics
06 10 14 18 20 22 26 30 32 63 64
96 99 100 103 105 106 108 110 111 114
OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique. In this issue of Car Dealer, we are launching the survey for 2016. Turn to page 20 to get involved.
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 be a part of it, turn to pages 10-12 to find out more about what is sure to be a great event. CarDealerMag.co.uk | 05
FEEDBACK. Your comments via email to dave@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
Are ‘old-fashioned’ What are everyone’s thoughts on the need for a roadside pitch now? Those of you with retail sites, do you still experience (and sell from) walkon enquiries, or are most of your enquiries internet-based? Being in the corner of a quiet, off-the-beaten-track business park, I’ve got to admit that I’ve missed the usual Saturday / Sunday timewasting / window-shopping types this weekend! Chris Fifty per cent of my sales come from walk-ins / drive-bys so yes, it’s a must. I’m on quite a busy road so it works very well. I’ve seen internetbased companies fold. You can’t rely purely on the web IMHO. TML Cars Limited
Picture of the month We’ve had a slight break with tradition for April’s Picture of the Month. Instead of taking the mick out of an unfortunate member of the Car Dealer team, we bring you this gem from the magazine forum, courtesy of contributor jamslug. He captioned it simply: ‘Customer forgot to remove valuables before leaving his pickup here for MOT this morning.’ Needless to say, the image prompted a flurry of sheep-based jokes from other members of the forum, aka the Baaa-my army...
I have sold one car in all the time I have been where I am to a walk-on. No passing trade here. RS Car Sales
away. Same goes for a lot of others, it’s 50/50. My forecourt is always open for people to view my cars any time they like. There’s too much competition online. TML Cars Limited
The days of the good, old-fashioned forecourt are dead now. The only dealers that really need it are new sales as they need to be seen. Most roadside pitches will attract a high rental price due to the location. It is possible to rent a yard or unit on an industrial estate for sometimes a quarter of the price of a roadside pitch and you often get more space. A lot of the time the ‘walk-on’ customers have actually already viewed your cars online. I have also noticed many more traders now operate on an appointment-only basis which I always thought was a bit daft as it’s in people’s nature to just turn up and view. However, I actually started doing this on Sundays only, and it’s going well so far. If no-one rings me by Saturday night, I get a day off but when people actually make an appointment and turn up on a Sunday, they seem to be buying rather than just looking. I am wondering if this could work seven days a week... time will tell. Max Branning
I tend to agree with TML. Well, I guess having an ex-filling station on a main road gives me no choice! Last year, I was thinking of putting a car wash on the front of my forecourt and shifting the cars around to the back compound, thus making them more or less out of sight from the main road. I then worked out how many sales I did from walkons and whilst it wasn’t what it was, it was still a decent amount (especially in the summer when the holiday parks are open) so I knocked that idea on the head. Not far from me, there are a couple of main-road forecourts on a busy road. Before the internet, they were the forecourts of milk and honey and nothing much has changed. When one did change hands recently, folk were fighting to get the keys. To answer the original question, no, you don’t need a roadside pitch, but it’s an extra piece of armoury worth having in my opinion. sparky
I disagree. A lady, for example, a couple of weeks ago, bought a car after seeing it as she drove past whilst visiting family and she lives 65 miles
I’m just about to move into an industrial unit after months of trying to find a pitch at sensible money. I’m renting a 2,500 sq ft unit £1,000 a month cheaper than the 1,500 sq ft pitch I was looking at.
I weighed up all the pros and cons and decided on the indoor unit because I believe the benefits are more, not just the £1,000-a-month rent saving and £0 business rates but the fact that it’s nice, dry and warm on cold winter days and anytime viewings can be done even in short winter months. I won’t have to clean the cars a couple of times a week. (I’m eight miles away from steelworks but still get horrible fallout if the wind’s wrong.) I gulp every time I see my advertising spend in my accounts, but at the end of the day it works and I believe I’m better off spending the £1,000-a-month saving on internet advertising, where the audience is unlimited, than the pitch in the hope that one of the hundreds of cars that pass a day will like the look of one of mine. I suppose it made my decision easier because it’s a nice, clean set of five units in the town centre so not a massive industrial estate, and there’s a very well-respected garage and bodyshop just down the road. James Bush Exactly this. Twenty years ago, it would not have worked but in the modern day, it is the way forward. Saving 12 grand a year plus is a no-brainer – even if you are missing out on a few walk-ons. If your cars are priced right, people will find you and the cars will sell, without doubt. Max Branning
So what’s the approach on the other side of the pond? A TREND that is growing in the USA is to have huge warehouses full of cars and do nothing other than internet sales. I visited a company in Colorado that is now one of the largest dealers in the USA with a huge turnover. Sorry, I can’t name them. As they say, we always follow the god old USA! This is one trend I hope we do not follow. Reports show that internet marketing for businesses is growing exponentially. This is resulting in more sales for those that follow the
rules of engagement. On the other hand, internet sales for products are actually down. It would seem that people as a whole like instant gratification and they cannot get this from buying a product from the internet and waiting for it to be delivered. People still like to touch, see and smell what they are purchasing. Internet marketing helps businesses push the customer in the right direction of the product they want to buy and who to buy it from. A
business that learns how to brand their business to the public and not sell to them is one that will rise above the competition. As for walk ins or drive bys (not the shooting kind) I would say they are still a huge factor. No-one can stop themselves from looking at a product that is well displayed and sharp to look at. It is like driving down the road and trying not to notice the beautiful looking young lady or handsome man. Velicular
More and more of our readers are joining the debate – and it couldn’t be easier 06 | CarDealerMag.co.uk
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Forum: CarDealerMagazine.co.uk/forum
forecourts dead? Tweets of the month Top tweet On the train to Newcastle for the @Honda_UK Northern Region Car Dealer Awards dinner. Looking forward to seeing who is top this year Philip Crossman @peeaycee You know the rent in San Francisco is bad when even the Lamborghini dealership loses its home and has to move in with a roommate. Mike McCaffrey @mikemccaffrey ‘Audi Partners’ – the perfect name for a German car showroom run by cowboys. Tony Cowards @TonyCowards
When you’re buying a new car and you let your potty training son play in one of the pristine showroom cars…oops! #RealMumMoments Amanda Noble @amandanoble
We’re making the #Tucson up to 20% more fuel efficient with a 1.7-litre turbo diesel engine. Watch this space! Hyundai Motor UK @Hyundai_UK
We want to take our mechanic on – but we have a question...
Hints and tips on social media What is the effectiveness of sharing cars for sale on Facebook and Twitter branded with your logo and colours? Prestige
Both are incredible social platforms for learning about your current and future customers. That being said, the worst use of Facebook as a car salesperson is to talk about specials, rates and promotions. If you put these online too frequently, people will unfollow you. I’d never directly promote my dealership or my provider on my personal profile page. Getting your page on local business listings promoted or hiring a professional SMM company might help more, I think, in developing and maintaining strong client relationships, while personal use of Facebook or Twitter is the fastest way to attract ready-to-visit prospects
Rock Car & Motorcycle Sales has taken a new 5yr lease at former Ford car showroom, Preston St, Kirkham. Robert Pinkus & Co. @robertpinkus
FEEDBACK
You have to be very careful with not only what you put on Facebook and Twitter, but also how much too. If you put a picture on there with a large logo or message in print, FB knows this and will not allow you to promote the post, so that’s worth watching. Also, in our opinion, if all you do is post cars on social media, it won’t be long before likers stop liking and following posts. They will start to block you from their timeline. It’s all about balance! jimreidvehicle
Posted this beauty on my Facebook page, 40 minutes later sold ! You can’t ignore it, it’s here to stay ! Multimedia ! Giles Usher @cars_portsmouth
and convert them in to recurring car buyers. diewhou Facebook is a great platform to interact with followers of friends as they like to call them. You need to think of some innovative ways to have friends share posts from your Facebook page. It’s a numbers game in many ways. If you have 10 friends who all share a post with their 10 friends and they share it with their 10 friends, you just reached 1,000 new people who might just come back and friend you. Never post anything political or religious. This is the fastest way to lose customers or Facebook likes. Velicular
I have my own mechanic that works for me. Up to now he has invoiced us and we provide a copy to the customer as part of supplied service history.But now we want to put the mechanic on the payroll. Can we effectively stamp a service book with our dealer details in order to vouch for the in-house service we carry out? The stamp will bear our company details identical to those on the vehicle sales reciept. I’m sure the answer is yes but wanted to make sure a law wasn’t being broken. Just wondered how many of you do it like this? I know Big Motoring World do it. Okay Dokay ‘Can we effectively stamp a service book with our dealer details in order to vouch for the in-house service we carry out?’ Yes. Reggaj
If you create a page for your car business on Facebook and put your cars on there – BEWARE. All you’re likely to get is little toe rags slating your business, offering you stupid amounts like £20 for a £2,000 car etc etc... that’s if you’re lucky, if not, then be prepared to have them find your personal Facebook profile and start posting pictures of your wife and kids with disgusting comments. Orchard Cars
We service every car and I stamp the service book for the customer on the date and mileage the car leaves our premises. RS Car Sales
to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum CarDealerMag.co.uk | 07
DASHBOARD. APAX
Auto Trader sale raises £853m EUROPEAN private equity group Apax has sold most of its remaining stake in Auto Trader — and increased the value of its original investment significantly. The 23.3 per cent stake raised £853 million and took Apax’s ‘realised return’ on Auto Trader to £1.7 billion. That equates to 4.8 times the money it invested in the company since it bought an initial stake from the owner of The Guardian newspaper in 2007, according to a report in the Financial Times.
SYTNER GROUP
Refurbishment at VW retailer SYTNER Volkswagen Leeds has been transformed into a state-of-the-art retailer after four months of refurbishment. Following a significant investment, the premises now includes the latest digital showroom with a 16-car display. John Steele, brand manager at Sytner Volkswagen Leeds, said: ‘We hope the redevelopment will significantly improve our customers’ experience while allowing us to feature more vehicles in the showroom.’
NISSAN
Dealership helps Scout auction A NISSAN dealership in Cardiff is helping a scout group’s fundraising auction. The 2nd Llandaff Scouts are raising £250,000 to buy their premises and Wessex Garages has given the group a signed rugby ball from the Cardiff Blues and two match tickets for the auction. Gareth Howells, general manager at Wessex Garages in Hadfield Road, said: ‘We are delighted we can help the 2nd Llandaff Scouts.’ 08 | CarDealerMag.co.uk
JCT600 celebrates ‘Best Companies’ status with lunch for 2,300 staff bit.ly/lunch97
Swapping fab pair of Ferraris is a traffic-stopping affair Dealer award brings F1 gloss to the glamour of a Knightsbridge street
H
R Owen Ferrari brought a touch of F1 glamour to the streets of London during a night in March, stopping traffic and temporarily dismantling a historic building in the process. The operation, which was carefully stage-managed and orchestrated, saw a 2015 Ferrari F1 car swap places with a Ferrari 488 GTB worth nearly £250,000. The HR Owen Ferrari Atelier is located in the Berkeley Hotel, in Knightsbridge, and allows customers to experience the Ferrari brand and to customise a car to their own tastes. Despite having several large windows, there is no door large enough to accommodate a car. Instead, all three panes of glass have to be taken out. The process started at midnight and lasted for two hours. It was so slick that the authorities didn’t even have to close the road. Unloading the car from the lorry only caused the late-night traffic to pause for a few moments. The whole affair cost around £8,000, which included the specialist lorry, the cranes, and the removal and refitting of the windows. HR Owen has been given the 2015 SF15-T Ferrari F1 car as a reward for being named Ferrari Dealer of the Year. The car is made up of genuine Ferrari parts, and is only missing an engine, so will be used for static displays around the country. James Champion, HR Owen’s Ferrari brand director, said: ‘Getting a car into the HR Owen Ferrari Atelier is highly complex, and the fact that we
were dealing with a very valuable F1 car made it an even more delicate process this time around. ‘It is really special to have such a rare car so soon after the end of the season in which it competed and it is great to be able to share it with the public.
‘In some showrooms you can simply open a door and drive a car in but the Atelier is unique in that it takes a little more effort. We tried to keep any disruption to a minimum by doing it all at night, and by getting the cars swapped as quickly as possible. We hope people enjoy the result.’
Mercedes is top scorer in dealer attitude survey DEALERS regard Mercedes, Lexus, Suzuki and Kia as the top four franchises to represent, according to the latest NFDA Dealer Attitude Survey. Jaguar, Volkswagen, Peugeot, Renault and Seat are the franchises valued least by respondents. The survey contains the input of 1,603 respondents from a potential 4,065 dealers registered to take part (a 39 per cent response rate). Sue Robinson, director of the NFDA, said: ‘Of particular concern are the
results for questions that involve new car targets and pressure to register vehicles. These answers show that some manufacturers are still pushing registration growth at the expense of dealer margin.’ Responses were on a 10-point scale, running from one, extremely dissatisfied, to 10, extremely satisfied. Dealers returned an average score of 4.8 when asked how satisfied they were with their new-car targeting process,indicating that, in general,
dealers were dissatisfied with their manufacturer’s targeting process. Mercedes remained the top-scoring franchise with 8.0 (down 0.6 on the summer survey) followed by Lexus, Kia and Suzuki. Renault, Vauxhall, Fiat and Jaguar scored the lowest for this question. When rating the profit return by representing their franchise, an average score of 5.4 was recorded. This score is down 0.2 points since the summer survey and 0.6 points lower than last winter.
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DASHBOARD. Book your FREE tickets at CarDealerExpo.com
Prestigious Autocar Awards to be held at CDX ‘The choice of the Home of British Motorsport as the venue could not be more appropriate’ by JAMES BAGGOTT @CarDealerEd
B
lackball Media has joined forces with Haymarket Automotive to host a newlook Autocar Awards at this year’s CDX. The gala dinner – which is set to attract the cream of the car industry – will take place directly after CDX in the stunning Silverstone Wing. The pinnacle of the Autocar Awards will be the Issigonis Trophy, which honours the individual who has contributed the most to the health, excellence and competitiveness of the European motor industry, and the Sturmey Award, named after Autocar’s founder in 1895, which salutes innovation and achievement in the motor industry. Autocar will also recognise every car that has achieved a coveted five-star road test result during the previous 12 months, while other gongs include the Reader’s Champion Award, which identifies Autocar readers’ best car on sale today, the Innovation Award, which recognises technical prowess, and the Used Car Champion, which is Autocar’s used car guru James Ruppert’s top buying tip. Autocar’s Design, Engineering and Motorsport
WITMI host announced as dozens sign up for special session 10 | CarDealerMag.co.uk
Heroes will also be revealed on the night. ‘Autocar’s status within the industry, and the longestablished prestige of our awards, guarantees an exciting evening for everyone attending,’ said Jim Holder, editorial director of Autocar. Holder will also be giving a keynote speech at CDX during the day. He added: ‘Our Awards events have always had a unique flavour, and the choice of the Home of British Motorsport as the venue for this year’s event could not be more appropriate to the values that underpin Autocar. It’s going to be a night of celebrations.’ James Baggott, managing director of Blackball Media, added: ‘I am delighted Autocar has chosen to host their prestigious awards ceremony in the evening of CDX. ‘It shows just how important our expo has become to the automotive industry and we are honoured Haymarket has chosen to work with us on this brilliant event.
‘Not only will the event add a sprinkling of glamour to an already action-packed day, but it will also attract some of the biggest names in the motor industry to what has already become the biggest motor trader expo in the UK.’ At the awards, Autocar will also recognise the industry’s Outstanding UK Leaders, who have made the most significant contribution to the industry in this country in the eyes of the judges, plus nominate its Game-Changers, the cars that have done the most to move the car industry, or their makers, forwards, in the past year. The Autocar Awards follow our announcement that SMMT chief executive Mike Hawes has joined the line-up of keynote speakers. He joins Twitter, Facebook, Google and Haymarket as part of our keynote speaker line-up. Tickets to the Autocar Awards are on sale now, with details available from Charlene Harry at charlene.harry@haymarket.com. Dealer groups or suppliers who wish to take a table at the event are also welcome to get in touch.
THIS year’s Women in the Motor Industry breakout session will be hosted by Miriam González Durántez, left – the founder of the charity Inspiring Women. The news follows the announcement that more than 70 guests have signed up to participate in the special session, which will take place at CDX16 – the largest automotive expo of its kind in the UK organised by Car Dealer Magazine
and sponsored by GForces. The Inspiring Women campaign involves more than 20,000 British women and was founded by González Durántez – the wife of former Liberal Democrat leader Nick Clegg – in October 2013. During the last two years the campaign has brought female role models to more than 300,000 UK girls at state secondary schools. News of González Durántez’ involvement comes after we revealed details of the panellists
CDX16 – Silverstone, Tuesday, May 24, 2016
Twitter Top 140 to be announced at CDX ONCE again, we’re on the lookout for the Top 200 most influential dealers on Twitter. That’s right, the highest placing 200, according to Klout scores, of Car Dealer Magazine’s Twitter followers, will be named and praised on these very pages, and invited to an exclusive session at the event, during which we’ll announce the final 140. Launched in 2013, the list of the most influential dealers is highly anticipated across the motor trade, with dealers clamouring to find out where they’ve been placed at our annual expo. Last year, Prestige Diesels took home the top prize, after climbing from second to the top spot with an impressive margin of four Klout points. Klout uses social media analytics to rank its users according to online social influence, and points are awarded on a scale of one to 100. For our Top 200, where Klout scores are the same, we will take into account numbers of followers. Lucy McHenry, head of agency sales at Twitter, will hand out the awards for our best-placed dealers, taking over from Georgina Parnell who did so last year. Initial investigations are under way into which dealers should be in our Top 200 and we’ll be revealing the data shortly. If you’re worried that you may be overlooked for the Top 200 list, tweet @CarDealerMag or drop us an email and we’ll be sure to consider you!
at the session. Joining professional stunt driver and event manager Annalese Ferrari and World Touring Car Championship host, Alexandra Legouix, on the panel of key speakers will be Julia Muir, MD of Gaia Innovation Ltd and founder of the UK Automotive 30% Club. The club is a group of CEOs and MDs who are committed to closing the gender gap through a ‘30-by-30’ strategy, working to fill at least 30 per cent of key leadership positions with women
SMMT chief joins keynote line-up ‘I look forward to offering a perspective on the wider industry’
T
he chief executive of the Society of Motor Manufacturers and Traders, Mike Hawes, has joined the line-up of keynote speakers at CDX. Hawes (pictured above) will be addressing delegates from the Car Dealer stage at the event, to be held at Silverstone on Tuesday, May 24. He will be delivering a speech about the current state of the UK automotive industry and taking part in a question-and-answer session. As head of the SMMT, Hawes is in charge of the organisation that exists to support and promote the interests of the UK automotive industry at home and abroad. He will be able to speak with authority and clarity about the prospects for the UK automotive sector for the year ahead – and much more besides. Car Dealer has already been delighted to announce that CDX will feature contributions from
Jim Holder, editorial director at Haymarket Automotive; Harry Melsom of Facebook; and Lucy McHenry of Twitter. Mike Hawes’ involvement gives another compelling reason why dealers should attend CDX, the biggest automotive expo of its kind in the UK. James Baggott, managing director of Blackball Media, the publishers of Car Dealer, said: ‘As excitement builds in advance of CDX, we are thrilled to announce the involvement of Mike Hawes. ‘The SMMT’s influence extends to all areas of the UK motor trade and we are sure everyone will be keen to hear what he has to say.’ Hawes said: ‘I am delighted to be speaking at this year’s CDX, following a period of unprecedented success for the UK’s new car sector. I look forward to offering a perspective on the wider industry including some of the challenges and opportunities in store over the coming months.’
by 2030. Founder members of the club include Jeremy Thomson, Mazda UK MD; Paul Van Der Burgh, Toyota GB MD; Robert Forrester, CEO of Vertu; Nigel McMinn, MD of Lookers; and Paul Philpott, president of Kia UK. Muir said: ‘Miriam and I are both keen to collaborate on an Inspiring Women in Automotive programme of events, through which women from all levels of the automotive industry commit to giving at least one hour per year to meet girls
and talk to them about life in automotive and their own careers. Car Dealer Magazine’s WITMI session is one of many events we’re keen to support and has proved to be a huge success in attracting women working across all sectors of the automotive industry to come along.’ Launched in 2015, the WITMI session sees four influential female speakers addressing women who work across all areas of the automotive and motorsport worlds. CarDealerMag.co.uk | 11
DASHBOARD. Book your free tickets at CarDealerExpo.com
Fascinating range of CDX workshops Be educated and inspired by our many special sessions GForces – Headline sponsors Browsers or buyers? Turn your website into the ultimate conversion tool We look at simple tips and ideas on how you can make your website the ultimate conversion tool by knowing the latest design trends, the must-have elements and the pitfalls to avoid. Convert clicks to web inquiries, calls and walk-ins.
BCA Maximise the value of part-ex stock With margins on car sales and associated upsales being squeezed, ensuring you get maximum value for any part-exchange you take in is becoming more and more important. We examine how you can make sure partexchanges add profit.
JudgeService Learning to love customer reviews We look at how you can make sure customers are singing your praises and even how you can turn a negative review into a positive situation. Our experts will also share tips on how to get more positive reviews as well as the best way to deal with unhappy customers.
CitNOW Does video work in the customer journey? The use of video is taking off throughout the industry, from initial sales inquiries to an important part of building customer trust in the service bays. This workshop will look at how some of the pioneers in the industry are using video to its best effect.
Car Keys Driving online performance and creating informed buyers The importance of online automotive content has never been more significant. Chris Smith will show you the wide array of content types and how content is integral to the success of an online presence, including the holy grail of SEO rankings.
CAP HPI Beating the unscrupulous Among the topics, we will cover how to look for telltale signs that a vehicle has a history that is not ‘as described’, the tricks of unscrupulous people in trying to pass off a problem vehicle and some easy-toimplement tips on how to stay within the law.
Auto Trader Great expectations and today’s car retailer A look at how the consumer adoption of media has changed the way we all interact with retailers. The growth in mobile usage and data accessibility means car-buyers are more educated than before. We will deliver insights and ideas to help you capitalise and win.
Brexit debate A look at the upcoming referendum on the UK’s membership of the European Union and potential effects of staying in or leaving the EU. With the vote taking place less than a month after CDX16, this is your opportunity to find out the facts and hear expert opinions on how the vote will shape the future of the UK motor industry.
First Response Harnessing value through social proof Getting your branding right can create confidence with consumers, deliver a unique corporate image and help you to think holistically when it comes to your marketing strategies. If you want to take steps to stand out from your competition then make sure you don’t miss this workshop!
iVendi Can your website replace your forecourt? In 2009, John Lewis launched a Click and Collect online retailing model. It now conducts 40 per cent of its business online. Can the automotive industry replicate this? We ask if it’s possible to sell cars fully online and examine changing trends in buying. 12 | CarDealerMag.co.uk
Lawgistics Consumer Rights Act 2015 – Keeping one step ahead of the consumer Last October saw the introduction of the Consumer Rights Act 2015, which brought a number of changes, including the 30-day right to reject. Nona Bowkis will discuss the key changes and bring you up to date with life after the CRA.
Phoenix Training Team development and sales maximisation Jo Wright will explain how to recognise and understand the different personalities of those you work with, manage and sell to, and how you can use this to improve communications between your team and your customers. Ensure your team connect with your customers.
JUST SOME OF THE EXHIBITORS WHO WILL BE PRESENT AT CDX16 A AA Cars Absolute Alignment AIS Group plc ASE Auto Ad Builder Auto Compliance Auto Group Autoidoc AutoSLM Autotech Recruit Auto Trader Autovolo Autoweb B BCA BDM BEN Blackvue (NWX Ltd) Bluesky Interactive Buyacar C CAP HPI CarGurus Car Keys Carsnip Car Wow CCKeys CitNOW Codeweavers Cooper Solutions D Dealer Auction Dragon2000 Drive Development Drivewise E eDynamix EMaC Enrol My Staff Evolution Funding G GardX Gemini GForces H Haymarket Automotive I IGA Instant Feedback iVendi
J JudgeService K Kärcher Key Tracker L Lawgistics Liquidline M Manheim Martec MDF Database Solutions Moneypenny Motorcodes Motors.co.uk Movex O OTT P Pentana Solutions Phoenix Training Plan Insurance Pro-Align Progress Recruitment Q Quid Car Ads R RAC Reef Business Systems Response IQ Road Angel Rotary Lift UK S Scotspeed Search Optics Smart Insurance SsangYong T T4 Media Traka Automotive Trusted Dealers 22PointSix W WMS Group Z Zerolight
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DASHBOARD.
T
he values of used Volkswagen Group vehicles have fallen by as much as 11 percentage points as a result of the ‘Dieselgate’ scandal, an investigation by Glass’s, the motor industry price analysis experts for used vehicle valuations, has discovered. Up to now, the focus of the scandal has been the new car market, with monthly figures from the Society of Motor Manufacturers and Traders (SMMT) showing severe drops in new sales across the Volkswagen brands – down against industry trends. With affected engines in the group being fitted to cars as far back as 2009, the effects of the scandal on the values of used Volkswagen and Volkswagen Group cars have been unknown until now. Working with Glass’s, we’ve investigated the relative values of like-for-like vehicles on used car forecourts, looking at individual models within the Volkswagen brand range and diesel models of the various brands in the Volkswagen Group against the performance of the rest of the used car market. Our data covers the period from July 1 2015, well before news of the scandal broke in September 2015, through to the end of February 2016. Although there was a mild market contraction over the period, Volkswagen Group diesels as a whole underperformed the market by one to two percentage points from November onwards, having previously retained parity. Looking at three specific models from 2009 to 2014 – 2.0 TDI 140 versions of the Tiguan and Passat and the 1.6 TDI 105 Golf – the figures suggest that like-for-like values of the Golf fell by more than nine percentage points at retail (11 percentage points at trade) by January when compared with July. The Passat model performed relatively well though and at retail actually outperformed the market by one percentage point throughout the period. Notably, the lack of consumer faith did seem to be limited to diesel models. Right through the murkiest depths of the scandal, Volkswagen brand and group petrol models were broadly on a par with the rest of the market’s petrol vehicles, even outperforming them by between half a percentage point and one percentage point in November 2011. The trough for Volkswagen brand and group diesel significantly deviated from the rest of the market figures, with the brand’s diesels falling by almost eight percentage points at worst in January 2016 – 3.1 percentage points below the rest of the market. Also bucking the trend was Porsche. The diesel engines found in the Cayenne, Macan and Panamera were not as heavily implicated, and although used values were quite variable over the period they showed no signs of the heavy slump that was seen elsewhere. Audi, though affected, was not as severely damaged either – it was only 1.2 percentage points down on the rest of market values. Skoda and Seat values suffered more than any others in the group, though. Seat values were incredibly buoyant in August – the month 14 | CarDealerMag.co.uk
INVESTIGATION
So... how far have used VW values fallen in the aftermath of Dieselgate? You could say we’ve carried out exhaustive research into the issue – with a lot of help from the experts at Glass’s. ANDREW EVANS reports before the scandal broke – outstripping the market by up to three percentage points at times but falling by 10 percentage points by January, while Skoda’s index fell to the lowest of all – 8.6 percentage points down on July values – but both brands have recovered far more quickly than the damaged Volkswagen marque.
Rupert Pontin, head of valuations at Glass’s, commented: ‘Things to remember are that the devil can be in the detail and that the volume of the supply also has an impact. The used trade market as a whole last year saw an increase of 8.1 per cent of stock into the auction centres, although there were some manufacturer
HOW THE MIGHTY ARE FALLEN The data below, provided by Glass’s, shows how far like-for-like values for used cars in the Volkswagen Group have fallen in percentage points. The figures are compared with the change across the used car market as a whole since July 1, 2015.
“
Retail asking prices will not see a recovery for some weeks.
Audi
Seat
Down
VW diesels
Down
1.2
Down
1.7
3.1
Volkswagen Group
Rupert Pontin
Porsche
Skoda
No
change
VW DIESEL MODELS COMPARISON
Down
Down
3.8
2.1
PETROL v DIESEL VW BADGE AND VW GROUP
105
102
102
100
100
100
98
98
96
96
95 90
92
92
80
90
90
2009-2014
VWVW GolfPassat 1.6L TDI 2.0L 105hp TDI 140hp 2009-2014 2009-2014
hp 2009-2014
VWVW Tiguan Badge 2.0L diesel TDI 140hp overall2009-2014 Rest of market VW Badge diesel overall
VW Passat 2.0L TDI 140hp 2009-2014
variances. I think looking at this as an index stabilises the general market increase. ‘While we are beginning to see a recovery here, the retail asking prices will not see a recovery for some weeks as the stock washes through. ‘We are also aware of large numbers of unsold trade stock belonging to both contract hire and
Rest of market
01 /0 7/ 15 15 /0 7/ 01 15 /0 7/ 12 15 /0 8 26 /15 /0 8 09 /15 /0 9/ 23 15 /0 9/ 07 15 /1 0 021 /15 1//0 107 / 0154/ 15 /017/ 1 01 /1155 18/0 /17/ 102 1/1155 2//08 1 26 2//115 16/0 5 /18 09 2//1155 30/0 /19/ 2 23 /1155 13/0 /09 1/ 027 /1165 7//1 001/ /15 1201/ 16 /010 2//15 04 16 /1 1/ 1 18 5 /1 1/ 02 15 /1 2/ 16 15 /1 2/ 1
94
/0 9/ 23 15 /0 9/ 07 15 /1 0 021 /15 1//0 107/ 0154/ 15 /017/ 01 1/1155 18/0 /17/ 102 1/1155 2//08 1 26 2//115 16/0 5 /18 09 2//1155 30/0 /19/ 2 23 /1155 13/0 /09 1/ 027 /1165 7//1 001/ /15 1201/ 16 /010 2//15 04 16 /1 1/ 1 18 5 /1 1/ 02 15 /1 2/ 16 15 /1 2/ 30 15 /1 2/ 13 15 /0 1/ 27 16 /0 1/ 10 16 /0 2/ 16
94
85
VW diesel
VW petrolVW diesel
VW petrol Rest of market diesel
Group diesel
Group Petrol Group diesel
Rest of market Group petrol Petrol
leasing companies and the VW Group, and these have yet to filter to the market.’ Although the used car market as a whole saw like-for-like values fall by up to 4.8 percentage points over this period of uncertainty, the dip in Volkswagen Group cars was notably larger, with values of the most popular cars suffering more
than double the dip in values. This could have severe effects on used car dealers, particularly those with larger numbers of VW brand vehicles, along with leasing companies that expect their cars to retain values at the end of their terms.
CarDealerMag.co.uk | 15
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‘Great customer service is natural, not forced’ SOPHIE WILLIAMSONSTOTHERT chats to Rybrook MD Henry Whale about the firm’s 79-year history – and finds out about the exciting plans for later this year
O
ne of the UK’s largest privatelyowned premium car retailers in the UK, with facilities representing most of the major supercar and luxury franchises, Rybrook Holdings Ltd’s roots date back to 1937 when Harry Whale founded the company as Ryland Motors. The firm has remained in the Whale family ever since. Interestingly, the group’s origins are in truck sales and coach building. But it was in the 1950s that Ryland became a limited company and its focus shifted from lorries to passenger cars. In 1994, the group, by now one of the UK’s largest automotive outfits, became a plc under the chairmanship of Peter Whale, grandson of the company’s founder. After nine years as a plc, however, Peter led a management buyout, returning the group to private ownership. Since then, concentration has been firmly placed on the specialist car sector, with the year 2006 witnessing the formation of Rybrook Holdings Ltd, and the new managing director Henry Whale confirming the group’s aims for future expansion in this sector. ‘It’s true that the origins of the Ryland Group were in truck sales and coach building,’ confirmed Henry Whale. ‘The 1960s saw us acquire our first passenger car franchise, Vauxhall, and 1971 saw the first prestige franchise, BMW. ‘We grew organically during the 1980s and rapidly during the 1990s, listing as a public company and representing most brands at around 60 sites. Today, we run 19 businesses from 14 locations across the country. ‘After the year 2000, we began to restructure, with our focus firmly on prestige brands and achieving a management buyout to return to private ownership in 2003,’ explained Whale. ‘In 2006 we judged the market to be near its peak so we made the decision to sell Ryland in order to return some funds to shareholders and alleviate the MBO debt while retaining some key strategic businesses to form Rybrook. This gave us a solid platform to build upon and look for suitable growth opportunities.’ 18 | CarDealerMag.co.uk
In 2010, Rybrook was named as one of the three appointed McLaren retailers in the UK. It was from that point that its expansion really began to take off, with a whole host of acquisitions. Rybrook grew into a national dealer group employing 800 members of staff and representing 10 manufacturer franchises – alongside its Specialist Cars outlet – with an annual turnover of approximately £500 million. Rybrook’s McLaren Birmingham showroom opened in Hockley Heath in July 2011 and is situated next to the Rolls-Royce Birmingham showroom, which also houses a Specialist Car showroom above on the first floor. The following year, Rybrook acquired Porsche Centre Chester. ‘Both the McLaren appointment and Porsche acquisitions were key milestones for the group as they extended our reach into the ultra-premium market,’ explained Whale. ‘Our culture centres on a degree of autonomy in the businesses with financial controls and support on all areas from head office. This allows our managers to focus on our staff, customers and the brands’ requirements and we find this an enormous help with recruitment, retention and development. Not to mention customer service – quite simply, happy, content and empowered
staff are best placed to delight customers.’ Rybrook Specialist Cars is regarded by many as the ultimate dealership for prestige, luxury and performance cars. The purpose-built 22-car showroom is part of the Rybrook Group and sits above the McLaren Birmingham and Rolls-Royce Birmingham showrooms in Hockley Heath, Solihull. Stocking a range of luxury vehicles from prestige marques including Rolls-Royce, Bentley, Ferrari, Porsche, Audi, Mercedes-Benz, BMW, Jaguar, Maserati and Lamborghini, dealer principal Giles Rowley and sales manager Gary Pugh have a reputation for being able to supply highly sought-after specialist cars and will endeavour to source vehicles they don’t already stock on request – a true family attitude of going the extra mile to please customers. ‘Our family has been associated with the group since it all began 79 years ago and a lot of hard work has been put into the development and day-to-day running of the brand,’ said Whale. ‘Rybrook is a true asset to our family and its success is testament to the sheer determination of each of its managing directors – all credit Managing director Henry Whale
Main image: Rybrook’s McLaren outlet in Birmingham. Above: showrooms in Shrewsbury, left, and Worcester goes to my father and current chairman Peter Whale, my grandfather Bill and great grandfather Harry. I’m incredibly proud of them all.’ Whale’s memories of Rybrook date back to the days when his father occupied the position he does now, and there was no doubt he wanted to step into his father’s shoes one day. ‘Quite often as a kid I would visit our local BMW or Vauxhall dealerships on a Saturday with my father,’ Whale reminisced. ‘I absolutely loved it – I can only describe it as something that resembles an Aladdin’s cave for a young lad.’ Whale had been working for the business since the mid-1990s in a variety of different roles before becoming MD in 2006. Of course, stepping up to the mark and continuing to build on the foundation laid out by his predecessors was always going to be a daunting task. Nevertheless, he took it into his stride and made his big ideas for the group become a reality. ‘I’d been in the business since the mid-90s, but you could say my journey as an authoritative figure officially began in 2006 when I became
the MD,’ explained Whale. ‘There were a few challenges to face and things that needed some attention, but the focus was on expansion. ‘We had retained a full team of experienced and skilful people at head office while creating Rybrook, so the first job was to quickly build the business to ensure the cost base was appropriate. That’s when we added three Mercedes-Benz, one Land Rover, two BMW and two Mini sites to our portfolio in our first two years.’ This year, Rybrook will open a new ‘ultrapremium marque’ showroom in Bristol this summer. The new facility will feature four of the most prestigious automotive brands: Bentley, Lamborghini, McLaren and Rolls-Royce, plus a specialist cars showroom. The state-of-the-art facility will be situated at The Laurels, Cribbs Causeway, and Rybrook in Bristol will serve customers from an area of more than 12,000 square miles from Land’s End, through Wales and up into the Cotswolds – extending its reach from the South-West. ‘The establishment of Rybrook in Bristol
demonstrates our desire to expand the business in the ultra-premium automotive segment and we continue to seek opportunities in the right place with the right partners,’ said Whale. ‘We’re delighted to have these four incredible brands in one state-of-the-art site with appropriate separation, of course. ‘From an aftersales perspective it obviously gives us synergies and efficiencies. We’re hopeful it will be a ‘‘destination’’ for anyone in the South West considering an ultimate luxury or performance vehicle.’ Many people often ask whether being a petrol head plays any part in running a successful dealer group. It’s not essential but Whale agrees passion for your cause is a key ingredient in connecting with customers. He says he certainly falls into the enthusiast category. ‘I’m a huge enthusiast and have many favourites,’ said Whale. ‘Empathy with fellow enthusiasts is useful to help understand their needs and, of course, it helps if you’re passionate about what you do. Truly great customer service is natural, not forced.’ When asked of his proudest moments working for the company, Whale said: ‘Without doubt, I’m immensely proud of the team we have in place today, whose attitude, skill and commitment are something to behold. ‘There have been many well deserved awards, none more so than Rybrook BMW Warwick which has retained its national aftersales crown for the fourth year and is number one in the world for BMW aftersales.’ [CD] CarDealerMag.co.uk | 19
SURVEY.
Have your say about all the people you deal with This year’s Car Dealer Power is under way, and there’s plenty of time for you to have your say about your business partners
W
e launched the 2016 Car Dealer Power Awards in the last edition of the magazine, and, once again, we have been bowled over by the number of replies we have received. The awards aim to discover – and reward – the best manufacturers and suppliers, and we have already had a LOT of responses. Many of them have comments from dealers about their choices, which is what we really appreciate. So please log on to CarDealerPower.com and complete the form. It’s a case of the more the merrier. The more entries we receive, the more confident we will be of making sure the winners really deserve their prizes. It’s not just about dishing out compliments, though. If there is someone you think has provided you with a sub-standard product or service, this is the ideal opportunity for you to have a bit of a moan, too – all opinions will be taken into account when we decide who takes home our coveted gongs. As well as being able to assess your relationship with any manufacturer you represent, categories where you can make nominations include warranty supplier; prime finance supplier; online advertising and paint protection – plus many more besides. There’s a posh dinner and awards ceremony at the Spinnaker Tower in Portsmouth on Thursday, July 28, where the winners will be revealed.
CAN I SAY WHAT I REALLY THINK? Absolutely. The whole idea behind the Car Dealer Power Awards is to allow the industry to be entirely forthright, whether that’s praising manufacturers and suppliers to the skies or hanging them out to dry. Have no fear, though – the survey is completely anonymous. So, we’ll be telling the suppliers and agencies what we found, but not who told us. The Car Dealer Magazine team will only assess the answers, not the envelopes, forms or IP addresses of those who enter online, and once we’ve gathered all the information we need, we’ll know who are the best of the best. And as we’ve said, we’ll hold a glitzy awards night to celebrate their achievements, a little later in the year.
SO HOW DO I ENTER AGAIN? Visit CarDealerPower.com to fill in the questionnaire online. It’s simple and it’s fast. So, please spare a few minutes to complete the form. We promise it won’t take any longer than 15 minutes – and the opinions you express could genuinely benefit all of us in the industry. We look forward to finding out what you think. Don’t delay, complete it today!
COMPLETE THE SURVEY ONLINE AT CARDEALERPOWER.COM 20 | CarDealerMag.co.uk
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CarDealerMag.co.uk | 21
DASHBOARD.
‘It is not a case of our sector wanting Europe or the rest of the world. We need both’ Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, gives his view on the EU in-out debate ahead of the June 23 referendum
W
ithout doubt, Britain’s membership of Europe is one of the most important issues facing the electorate. It is also a critical issue facing the UK automotive industry. Our relationship with Europe has many dimensions: 57 per cent of cars built in Britain are exported to the Continent, more than half the cars on sale here are imported from Europe, and we look first to the EU for talent we cannot find locally. With more than 5,000 manufacturing jobs currently vacant, according to the Automotive Council, similar challenges in retail, and brands seeking international experience, it is an important source of people. So the relationship is fundamental, and anything which alters it would cause any company to review its position. With Britain now preparing for the referendum, it is right that businesses assess the impact of remaining or leaving. Business does not, of course, have a vote – but employees and owners do, and the economic impact should be considered alongside political and social issues. Automotive accounts for 11.8 per cent of all UK exports, delivers £15.5 billion to the economy, and supports 800,000 jobs – some 200,000 in new car retail and 160,000 in manufacturing. Many livelihoods depend on our sector so it is right – indeed a responsibility – for this industry to set 22 | CarDealerMag.co.uk
out its position. UK Automotive has undergone phenomenal growth: A record 1.3 million cars exported; a new car market at a record 2.6 million; the highest manufacturing levels for a decade. And let’s not forget record levels of investment – some £2.5 billion in 2015 for new plants, models, retail and finance operations and more. Given this success, politicians and commentators have been quick to cite the automotive industry as either a firm advocate of
Mike Hawes: ‘We don’t want to jeopardise our success’
‘remain’ or relaxed acceptor of ‘leave’. We cannot be both. That’s why the SMMT wanted to set out clearly – with facts – exactly what the industry thinks of a potential Brexit. We therefore asked independent pollster ComRes to survey our members, who responded in significant numbers underlining the acute level of interest in this issue. Overwhelmingly, they said EU membership is best for their businesses. Seventy-seven per cent said they want to remain, with nine per cent choosing ‘leave’ and 14 per cent undecided. This overriding proEU sentiment was shared by 88 per cent of large firms, not one of whom favoured leaving – and 73 per cent of SMEs, who, making up 72 per cent of respondents, backed Britain in Europe. The EU is far from perfect; many respondents called for a more competitive focus, for red tape to be removed, and for better regulation. But members also recognised the benefits: Unfettered access to the world’s biggest single market; access to global markets through free trade deals worth some £15 trillion; access to skilled workers to supplement our home-grown talent base; and the ability to influence EU rules with which we would still have to comply even if we left. Europe remains our biggest trading partner, taking the bulk of UK car exports. It is growing too, up 11 per cent in 2015 and helping compensate for declines in markets such as China and Russia. It is not a case of our sector wanting Europe or the rest of the world. We need both.
‘DON’T SIT ON YOUR HANDS – HIT THE GROUND RUNNING’
The current situation is, however, one of uncertainty. No-one can say exactly what ’out‘ would look like. Prices, for instance, are a function of demand and supply, and the UK vehicle market has undoubtedly benefited from a strong pound; whether it remains strong depends on financial market confidence and we are already seeing nervousness. We also enjoy zero tariffs on vehicles and parts – tariffs that, in the event of a Brexit, could be as high as 10 per cent, a huge cost in an industry with notoriously tight margins. Some suggest we would quickly get a free trade agreement (FTA) in British interests given the interdependence of economies. Certainly, the UK is a large and attractive car market for most EU manufacturers, but FTAs take years to negotiate. They must also be agreed unanimously and, with 27 other member states all, like the UK, wanting to protect their own interests, this is far from certain. It is impossible to predict exactly what would happen in the event of a Brexit – there are simply too many unknowns. But, for our industry, the position is clear: UK membership of the EU is the best of all scenarios. In Europe we are competitive, productive and attractive to investors – and we are growing. We do not want to jeopardise that success which has been hard won. Ultimately, the British people will decide whether we stay or we go, but we believe we have an obligation to ensure people understand the benefits of membership to our sector – and all of those who depend on it. [CD]
IN THE event of a Brexit, the main difficulty we’d face is that no-one would quite know what would happen to the UK automotive industry outside of the EU. That’s according to John Leech, head of automotive at KPMG, who thinks that dealers should step back and take a look at the different possible scenarios they could face. ‘Let’s look at the more optimistic scenario: if we get full access to the single EU market, franchise dealers in particular will benefit from factors such as freedom of movement. This means that dealers such as Inchcape and Sytner, who run dealerships across the EU, will be able to transfer staff between businesses. ‘Access to the single market would also be good news for imports,’ said Leech. ‘Remember, 80 per cent of all cars sold in the UK are imported from Europe and this would continue, meaning good news for dealers. We’d also stick to EU regulations such as employment law and Block Exemption. ‘Europe’s Block Exemption essentially governs aspects of competition law as it applies to the automotive industry. It allows the carmakers to select the dealers who sell their products, which the larger franchises obviously benefit from – an exclusive market share.’ However, looking at it from another perspective, if we were to agree a free trade arrangement with the EU and the UK lost Block Exemption, it could be a boost to the independent dealer sector, said Leech. ‘It would allow independents to freely purchase cars from manufacturers and sell them – a huge change to the structure of the UK motor trade. But then
“
there’s the question of what would replace it. ‘With full access to the single market, new tax ratings and import tariffs would need to be put in place, resulting in additional costs and time delays. The extra paperwork could result in a oneto two-day delay at UK ports. But this would be more of an annoyance than a major setback. ‘If we leave the EU, one thing is for certain; the price of cars will increase – we just don’t know by how much. Leaving the EU would obviously mean introducing World Trade Organisation (WTO) tariffs, which could push the price of cars imported to the UK up by about 10 per cent – that’s on top of additional exchange rates and administration tax fees,’ explained Leech. ‘And we have to remember that, even if we leave the EU, we’ll still have to comply with their rules. That’s unavoidable.’ He concluded: ‘If we do leave the EU, there will be a two-year discussion and negotiation period before anything actually happens. In my opinion, dealers need to use this time to develop simple scenarios and work on what their responses to those situations would be. They have three possible outcomes: a free trade scenario, full access trade or no access at all. They need to put different levels of finance in place, change their inventory stock management levels or completely change the way they sell vehicles. ‘Don’t sit on your hands; think about how it could change your business and be ready to hit the ground running when the decision is made on June 23.’
It is impossible to predict exactly what would happen in the event of a Brexit – there are simply too many unknowns. Mike Hawes CarDealerMag.co.uk | 23
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SMMT video shows how cars have got cleaner and greener. bit.ly/SMMT97
Ask the WITH ANDREW FERRETT
Mechanical appraisals are the ones that count
W
A sense of occasion at Harold Wood Audi Dealership makes plate-change day very memorable
Y
ou don’t need us to tell you that plate-change day is always a busy time for car dealers. Many have exceptional opening hours for customers to pick up their new vehicles before they go to work – and many use plate-change day as an excuse to have a bit of a party. The arrival of the 16-plate has been no different, with dealers taking to social media to celebrate their dedicated clientele who chose March 1 to drive their new cars away. Harold Wood Audi, part of the Essex Audi Group, held a midnight launch party for its 16-plate buyers, with entertainment and refreshments for 80 guests. Dubbed ‘Sweet 16’, the evening events included a magician and a casino and, at midnight, a convoy of brand new Audis – 32 in total – leaving the dealership. The whole event was captured on video, including drone footage of the impressive train of new vehicles led out by a new Audi Q7 owned by model-turned-
bodybuilder Jodie Marsh – who tweeted ‘Amazing party at @HaroldwoodAudi last night & being able to drive my new 16-plate Q7 home at midnight!’ It was part of a string of events in the Essex Audi Group, which included a similar midnight launch at Southend Audi and 16-plate brunches at other outlets. Russell Wilderspin, head of business at Harold Wood Audi, said: ‘The idea of the event was to give a sense of occasion to the handover and make it a really special and memorable event for the customers.’ Lots more 16-plate news online at bit.ly/16-plate
Tozer to head up new division VERTU is strengthening its management structure with the creation of a new division within the group. It will be headed by Tim Tozer, former chairman of Vauxhall Motors in the UK, who has previously held senior roles with Mazda and Mitsubishi and in retail with Inchcape and Autobink in Europe. Tozer, right, will take on the position of group operations director with a place on the group’s main operational board. The new division will incorporate Vertu’s 24 | CarDealerMag.co.uk
Hyundai, Fiat Group, Mazda and Peugeot outlets with the potential for further franchises that are new to the group to be added in due course. The business comprises 25 sales outlets with a broad geography from Scotland to Devon and revenues of around £220m. The new division will also see a number of promotions. Rob Keenan becomes sales director and Ian Anderson will be aftersales director. Martin Welch will become finance director.
hat kind of faults should trade inspections be finding with my vehicles, and how can I make sure they’re identified each time? Trade inspections carried out for dealers will focus for the most part on the mechanics of the vehicle: the steering, suspension, brakes, engine, transmission and so on. Generally speaking, consumers tend to be less concerned with issues relating to the bodywork, because although appearance is important for lots of people, scratches or minor dents don’t pose any real safety risk and they’re relatively inexpensive to put right. Bodywork is also difficult to assess properly because it comes down to personal preference – it’d be hard to establish an official set of criteria. What’s more, listing minor blemishes can make a car that’s mechanically sound seem unattractive, when in practical terms it would make a reliable choice. It makes sense to stick with mechanical appraisals, which consumers rightly feel might save them considerable expenditure on future repairs. Pre-delivery inspections carried out by dealers can vary considerably, from small adjustments all the way up to removing the wheels and cleaning the brakes. Most dealers will run an MOT on any vehicle with fewer than six months left on its current MOT, which is a fair policy. It’s also a good idea to ensure inspections include a five-mile road test, which should reach speeds of at least 50mph. It’s crucial that the vehicle is tested at its normal working temperature, so that transmission faults or warning light indications are not masked. A recent survey by an AA-inspected dealership in Leicestershire showed that part-exchanged cars typically display more faults than vehicles which have been leased. Although MOTs are useful as static examinations, road tests are particularly key if you’re dealing in part-exchange cars. An inspection should also look out for tyre issues (I’d suggest you work to a minimum of 3mm as standard), which frequently crop up, and watch out for problems with light bulbs and air conditioning units. In terms of making the selling process smoother altogether, it’s worth noting that you no longer need to fill in and return your V5C to the DVLA when you make a sale: it can now be done online. Take-up on the electronic transfer has been very low among dealers, so make sure you’re doing away with the extra red tape and saving time by using the digital submission option.
‘Watch for problems with light bulbs and air conditioning units.’
Who is Andrew Ferrett? Andrew is the national manager of AA Vehicle Inspections, working closely with dealerships of all sizes to increase their business through a portfolio of AA products.
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DASHBOARD. FEATURE.
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ust in case the build-up to CDX16 and the Car Dealer Power awards aren’t exciting enough, you’ll be thrilled to hear that we’re relaunching Car Dealer Club, which means – as a member – you can get your hands on a host of new products that are worth thousands of pounds for free. That’s right, here at Car Dealer Magazine we’ve begged, borrowed and (considering the price tag) practically stolen to get you the very best benefits we could find. All you need to do is subscribe to Car Dealer Club for the next 12 months and you’ll be entitled to access the entire suite. Not only will you receive the very best legal advice from Lawgistics, discounted insurance
polices from Unicom, increased protection from HPI and much more from the list of familiar industry names below, the real clincher is the fact that subscribers will receive it all for just £39.99. Arguably the best of the freebies on the list is our Lawgistics legal cover, which is worth £195. As part of your membership, you’ll receive a free telephone consultation with Lawgistics worth £100, ensuring complete peace of mind. This means that when things turn a little sour between a dealer and their customer, instead of having to embark upon a timely and costly legal venture, members can take advantage of free and simple legal assistance from the leading automotive law specialists. Lawgistics’ director
of legal services, Dennis Chapman, said: ‘For Car Dealer Club members they have a first port of call – something that’s hugely beneficial.’ Car Dealer Club members also receive a full year’s subscription to this beautifully crafted glossy magazine that you hold in your hands, allowing you to keep up to date with the latest automotive news from the motor industry. Can you really afford not to sign up? Head over to www.cardealerclub.com and hit the subscribe button. After a few simple steps, you’ll be a fullyfledged member of the club – it really is that easy. n The regular Car Dealer Club spread, including questions answered by the Lawgistics team, will return in next month’s edition of the magazine.
JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ ‘Basic’ package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.
26 | CarDealerMag.co.uk
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Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a (*subject to vetting) price increase.
Exclusive five per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.
WANT TO UPGRADE? 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 really is a package for everyone with Lawgistics.
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Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and its team of the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.
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3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST 5. OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM
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Dragon2000 CarDealerMag.co.uk | 27
DASHBOARD.
Record-breaking Evoque hits production milestone Luxury compact SUV is the fastest-selling Land Rover ever produced
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and Rover is celebrating the production of its 500,000th Range Rover Evoque at its factory in Halewood, Merseyside, only four years after deliveries of the luxury compact SUV commenced. The Evoque is the fastest-selling and most successful Land Rover ever produced, having become the quickest to reach the half-a-million vehicle production landmark. One in every three Land Rovers sold around the world is an Evoque and strong global demand ensures the production line at Halewood is in operation 24 hours a day, with a new vehicle coming off the line every 80 seconds. Gerry McGovern, chief design officer of Land Rover, said: ‘Evoque has been a huge success for Land
28 | CarDealerMag.co.uk
Rover, winning more than 165 international awards, bringing new customers to the brand and evolving to stay ahead of the competition. With our bold new Evoque Convertible we have broadened the range and will attract even more new customers.’ The launch of the Evoque marked a major milestone in the transformation of the fortunes of the Halewood manufacturing plant, which welcomed £250m of investment to bring the model to
market. Its arrival at the site saw the plant’s workforce treble and production quadruple in just four years. The new Evoque Convertible made its world debut at the Los Angeles Motor Show in November 2015. When it goes on sale, it will be the only luxury compact SUV convertible in the world. Richard Else, operations director, Halewood, added: ‘The Range Rover Evoque has been a fantastic success for Halewood and for Jaguar Land Rover. We are very proud of our award-winning SUV and we are looking forward to welcoming the new Evoque Convertible to Halewood very soon.’ First UK customer deliveries of the new Evoque Convertible will be in June this year with prices starting from £47,500 for the HSE Dynamic.
EXPANSION
Tenth site for Motorpoint MOTORPOINT, one of the Sunday Times Top 100 Companies to Work For, is set to open its tenth site – in Castleford – in April. The car supermarket has invested more than £5 million in recent months constructing the purpose-built nine-acre supersite in West Yorkshire – creating over 50 new jobs. Motorpoint Castleford will stock 600 new and low- mileage nearly new vehicles from 35 different manufacturers together with instant access to a further 5,000 cars in group stock when it officially opens on Saturday, April 2. The opening of Motorpoint Castleford will complement the firm’s network of existing branches in Birmingham, Birtley, Burnley, Chingford, Derby, Glasgow, Newport, Peterborough and Widnes.
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DASHBOARD.
Lights, camera . . . action! Tune in to our great NEW online channel REBECCA CHAPLIN reports on an exciting venture from the team who bring you Car Dealer
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e’re bringing you a different way to find out what’s going on in the motoring industry with our new online video channel — Trade Plates. Every week we’ll present videos about dealerships and workshops, news updates and live discussion shows where viewers can join the conversation. Like no other motoring video channel before, viewers will be part of the story. Twice a month we’ll be holding live panel shows with members of the car trade talking about topics selected by the viewers. Even those who can’t join us in the studio will be able to join in the conversation through the discussion box on the webpage. We will also be screening videos about different areas of the motor trade. Some of the best car dealers and workshops in the country
Twitter: @tradeplatestv 30 | CarDealerMag.co.uk
have been telling us their stories and we’ll be taking viewers on a tour of their businesses and showing off their coolest cars. In our ‘hidden gems’ series you can take a look at the best supercar dealerships, rare cars for sale, ultimate workshops and specialist businesses. Satisfy your need for information on supercars, classic motoring, incredible machinery and the people behind them all on the Trade Plates video channel. This month we’ll be taking a look behind the scenes of Sam Thomas Racing’s workshop and speaking to Afzal Kahn about how he made it. We’ll be keeping you up-to-date with the latest car dealer news, too, every Wednesday morning with a round-up of the week’s news,
Facebook: Trade Plates
with exclusive features and interviews. You can subscribe to us on YouTube but, to catch all the videos, head first to tradeplates.tv. James Baggott, p114
Website: tradeplates.tv
This month on... News
Get your round-up of the week’s news first thing on a Wednesday morning. You’ll be able to watch or listen to our news show from 8am.
Supercars
Ever wondered what it takes to run a successful supercar dealership? We met British car designer Afzal Kahn at his headquarters and took a look at his supercar collection.
Ultimate workshops
This month we’re heading behind the scenes at Autofarm, a Porsche specialist tucked away in Oxfordshire. It specialises in the Carrera RS 2.7 built in 1972 and 1973 — luckily that’s when founder Josh Sadler started the business, so he has seen them from new to collector’s classic.
Hidden gems
Sam Thomas Racing’s workshop is filled with classic cars that are ready to race, and owner Sam is the man to race them. We find out how he got into this unusual line of work and check out the classics on display.
Trade Plates Live
Tune in to the second instalment of Trade Plates Live at 3pm on March 29. If you can’t tune in then, you’ll be able to watch later on the website. If you think we should be talking about something, let us know on the forum.
Car Dealer goes on air Twice a month we’ll be broadcasting live from Car Dealer Towers with a panel of dealers and industry figures. Already this month we have featured a panel including (from left) Imperial Car Supermarket’s operations director Neil Smith, the owner of Prestige Diesels Portsmouth, Alexis Cassey, and our own Rebecca Chaplin and Andy Entwistle. Although you’ll see them sitting on the sofa, you can join in the conversation, too. Our webchat system means you can join in the discussion. We’re pleased to bring you Lawgistics, live from their new offices in Peterborough. They’ll be on hand to answer your legal questions. Keep an eye on the Car Dealer Forum where we’ll be releasing details of future panelists and the topics we’ll be discussing. If you fancy taking part in the show, get in touch with the team.
Go to TradePlates.tv now to see our latest videos CarDealerMag.co.uk | 31
DASHBOARD. Celebrations and supercars as the curtain is raised on a busy year
Skoda Vision S
Czech carmaker Skoda took the plunge into the SUV market by showing off the Vision S concept. The company’s first attempt at a 4x4 is striking to say the least, with an edgy, modern design that peers into the future of what Skodas could look like. The concept will be powered by a hybrid power train, with a 1.4-litre petrol engine combined with a 54bhp electric motor.
by ANDREW EVANS @snavEwerdnA
W
hen it comes to motor shows, the annual exhibition at Geneva is more relevant than most. Effectively the spring curtain-raiser for the year ahead, manufacturers tend to bring along their latest and greatest models rather than the out-there concepts you’ll see front and centre elsewhere. There’s still room for concept cars though, but many of them will represent either full production vehicles or at least visions of the near future. This was neatly demonstrated by two VW group offerings at the show, with the Seat Ateca appearing in production form and the Skoda Vision S giving a preview of what the brand’s next SUV, one step above the wonderful Yeti, will look like when it comes along at the end of this year. If it’s SUVs you’re into, the showstopper was Maserati’s imposing Levante, unveiled at Geneva as a finished product – alongside opened order books. Others took Geneva as a celebration. Lamborghini marked its 100th anniversary with a suitably over-the-top Centenario supercar. In fact there were flagships everywhere, with Aston Martin bringing the stunning new DB11 along and – possibly the headliner of the whole event – Bugatti’s new 1,500hp Chiron. On the more affordable side, production versions of the new Volvo V90 Estate and the Renault Scenic also made their debuts.
Aston Martin DB11
The DB9 has been in service for 12 years now and as it enters its final year of production, its successor was shown off in Geneva. The DB11 – which is due to be on sale near the end of this year – will be launched alongside Aston Martin’s new V12 bi-turbo engine and will be the first of a new generation of the company’s sports cars, as many of the older models are gradually replaced. See p52
Stars of show In early March, the world’s motoring journalists headed off to Geneva – and that included the Car Dealer team as usual!
FORD Our customers and dealers love performance models! p34 32 | CarDealerMag.co.uk
Bugatti Chiron
Eleven years after the Veyron broke cover, Bugatti is trying to top the speed charts again with its new top-secret Chiron. Named after Bugatti’s most successful driver and pre-Grand Prix championship great Louis Chiron, the new model apparently has almost 1500bhp and a reported top speed of 261 mph. Even though it shares some similarities with its predecessor, the new car has been redesigned and should be another ground-breaking car from Bugatti. See p40
SEAT Ateca is a car that’s been a long time coming p42
IN ASSOCIATION WITH
Maserati Levante
After first showing off an SUV concept at Frankfurt in 2011, called the Kubang, the Levante is the first foray by Maserati into the premium SUV market. It will go up against Bentley’s new Bentayga and Jaguar’s F-Pace when released later this year, and after the positive reaction they garnered at previous events, Maserati attracted plenty of attention in Geneva.
Volvo V90
The new V90 joins the Volvo 90 Series range, as the estate version of the S90 and is built on the same ‘Scalable Platform Architecture’, which is also the base for the XC90. Like the S90, the estate will be available with a diesel engine, petrol engine or plug-in hybrid unit, with either an automatic or manual gearbox. The D5 diesel will only be available in an automatic and comes with all-wheel drive. See p48, p56
Lamborghini Centenario
Built a century on from the birth of the company’s founder Ferrucio Lamborghini, the limited-edition Centenario gives Lamborghini the chance to show off another dynamic supercar to the awaiting public. If you want one, it’s a bit too late, with all of the models sold before being shown at Geneva. It is rumoured the 6.5-litre V12 from the Aventador Superveloce will be fitted.
Jaguar F-Type SVR
Jaguar revealed its fastest production car ever in the F-Type SVR, a 200mph, 561bhp speed machine and the first to be fettled by JLR’s Special Vehicle Operations department. The SVR is lighter and faster than the F-Type R and is also £20,000 more expensive, with a £110,000 starting price. This version of the F-Type looks more aggressive than previous models, with extra aero parts and a deployable rear spoiler. An exciting prospect for 2016.
Audi Q2
Audi’s Q series will grow again with the addition of the Q2, which has been teased in social media posts. It will be the smallest in the German manufacturer’s SUV range, with entry-level models likely to be fitted with a front-wheel drive system. Higher-spec versions will have the world-renowned Quattro all-wheel drive system installed, so this baby SUV can perform off-road.
Renault Scenic
It may not be a supercar, but the new Scenic is very important. SUVs have overtaken the humble MPV in the popularity stakes recently, as families have moved across to the sportier designs of crossovers. The Scenic takes inspiration from those, by having a more dynamic body and 20-inch rims, taking the MPV and putting it in the future. Look out for an MPV revolution on the horizon.
Alpine Vision Concept
The French manufacturer Alpine looks to be returning with this Vision concept, which could lead the way for the full return of the sports car brand. This model will apparently break Alpine tradition by moving the engine from the rear to the middle. A reveal in Monaco also confirmed that the design is ‘80 per cent of the production car’. This looks very promising indeed.
HYUNDAI World’s first platform with three electrified powertrains p51
BMW M2 boasts sophisticated chassis technology p58 CarDealerMag.co.uk | 33
DASHBOARD.
Performance Fords: Our them and they’re easy to Deals are sealed for the unpriced all-new Focus WHAT’S in a name? Well, if it dates from the early 1970s and signifies a host of the world’s all-time favourite performance cars, the answer is quite a lot. If nothing else, the launch of the all-new Focus with the heritage RS badge, alongside the Mustang, has given buyers the ‘performance Ford’ bug and, without announcing pricing or even a test drive, deals are being sealed. ‘There has never been such a frenzy for one particular car,’ said Andrew Barratt, Ford UK MD. ‘So far, 65 per cent of all volume is pre-sold in the UK and demand is still strong. The RS is a niche car so you’d expect demand to be a little more relaxed. But that’s not the case. ‘Ford is renowned for its performance heritage and we’ve always sold more RS models in the UK than anywhere else in the world — it’s the pinnacle of the brand market and there’s more consumer understanding in the UK than anywhere else — our performance heritage is stronger than other brands.’ He added: ‘It’s highly likely that you will eventually see a waiting list appear for the RS because demand is so strong. Thousands of people have committed to buying one without even driving one or knowing the price. This shows how many people trust and know the brand.’
34 | CarDealerMag.co.uk
FORD: Line-up of new models at Geneva attracts plenty of attention and orders after good sales in January
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nyone who keeps an eye on the monthly SMMT figures will know that Ford is arguably unbeatable when it comes to topping the new, and used, car sales leader boards. At the Geneva Motor Show, the reason behind the brand’s success was illustrated by the line-up of models crowding the stand. It was bursting with key examples from the brand’s range, with everything from the Vignale Mondeo to the Focus RS attracting attention. The Vignale line-up extended from just one to four models in Geneva, with Ford unveiling the Kuga, Edge and S-Max additions to the premium range. According to Andrew Barratt, Ford UK MD, the brand is trying to push the Vignale line-up
The Fiesta ST200 was big news at the Geneva Motor Show
by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W to match the success of the performance range. ‘Vignale allows us to compete with the premiums and retain customer value,’ he said. ‘We’re retaining a good margin and building on future orders — the aim is to sell the product, not the price. Having introduced the Edge, Kuga and S-Max to the line-up, we’re confident demand and volume will increase throughout the next two years. January was a very strong month in terms of retail sales. We aren’t a pre-registration brand surrounded by low-mileage stock — we’re witnessing a good contrast between new and
IN ASSOCIATION WITH
customers love sell for dealers used car values, which have hardened up a lot. The Fiesta in particular has seen a great improvement in its used values, which helps us to sell new ones. ‘Our global sales forecast for 2016 was 2.8 million. We aren’t quite there yet but we’re ahead of the 2.6 million figure we were at this time last year. Exchange is volatile at the moment, which is due to a strong market push. Our order bank for the Fiesta in March is above last year.’ The signature Fiesta and Focus models in their standard guise continue to be best-sellers but add a performance spec and, rightly so, the performance brand enthusiasts go wild. That’s certainly the case for the Fiesta ST200, which
‘We’ve only just revealed this model and we’ve already sold 50 per cent of total volume’ the carmaker announced in Geneva. ‘We’ve only just revealed this model and, I can imagine, we’ve already sold 50 per cent of total volume — and that’s just by revealing images,’ said Barratt. ‘Not only do customers love performance Fords, our dealers do, too. They understand the brand and that’s what makes them so easy to sell. ‘Our performance models are great new cars to sell, great used cars to sell and
Mustang’s lure boosts sales of other models THE Mustang, one of the most highly anticipated cars arriving in showrooms this year, is also Ford’s key to introducing new customers to the rest of the range. That’s not to say the Mustang isn’t selling well itself. Three months into 2016 and the brand has hit 1,000 sales. ‘We have an order bank of about 2,500,’ said Andrew Barratt, Ford UK MD. ‘The demand is for the V8 and Fastback models, which are completely sold out through September. ‘Most Mustang customers are new to the brand. They’re usually business owners looking for an iconic car, and that’s exactly what the Mustang is. ‘This is a great opportunity for dealers to gain new customers and then sell them other Ford products.’
they retain their residual values.’ The sprightly Fiesta ST has finally been given the power upgrade it was desperately calling for. The ST200 pumps out 10 per cent more power and 20 per cent more torque than the outgoing ST, with 197bhp and 290Nm — big sums for a little hatch, especially from a 1.6-litre EcoBoost engine, which has been specially calibrated to generate the additional output. The ST200 is the most powerful production Fiesta ever, and it’s capable of sprinting from 0-62mph in 6.7 seconds. Production of the new performance model will start in June with first customer deliveries expected in the summer. Joe Bakaj, vice-president of product development at Ford of Europe, said: ‘The Fiesta ST is truly beloved by owners and critics. The ST200 takes this special drivers’ car to a new level of power and performance and I think it’s a future classic in the making.’ The Fiesta ST launched in 2013, delivering 180bhp and 240Nm of torque from a 1.6‑litre EcoBoost engine and 0-62 mph acceleration in 6.9 seconds — quickly becoming Europe’s leading compact performance hatchback. Ford has sold 30,000 Fiesta STs in Europe, of which over 19,200 were in Britain. CarDealerMag.co.uk | 35
FEATURE.
Toyota bosses are confident C-HR is a car worth waiting for
Knockout design is sure to attract many younger customers TOYOTA: ‘We’ll be building awareness of new crossover before we start conquesting 70 to 80 per cent of buyers’
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he star of the show for Toyota was the C-HR, which will give the brand a new presence in the growing C-segment crossover market – and appeal to a younger audience, too. We caught up with Matthew Harrison, Toyota Motors’ European vice president for sales and marketing. He told us: ‘The feedback has been very positive. The transition from concept to the real car has been very, very close. I remember a certain competitor walking onto our stand in Frankfurt to see the concept. They said, ‘‘the actual car will never look anything like this.’’ ‘But actually, it’s extremely close. I can’t tell you how important it is. I see it as a transformational moment for the brand. We’re strong, we have great loyalty with customers, but we know that our relevance is in the 50s and 60s age group. ‘We have a bit more of a challenge in terms of strengthening our appeal to a younger audience – and that’s because we have been stuck in the mainstream segments and not shifting into some of the crossover segments. ‘But I think with a knockout design like this, 36 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave and the TNGA [Toyota New Global Architecture] platform, we really have a combination that is unbeatable, so we are extremely confident about it. Seventy or 80 per cent of our audience for this will be new to Toyota. ‘We have set the markets a minimum 70 per cent conquest aspiration to head for. One of the benefits of unveiling the car now but not putting it on sale until Q4 is that we have quite some time to build awareness of the car, disrupt the market a little bit and create a little bit of hold-off before people proceed with purchase. ‘It really is a car worth waiting for and we believe we will be able to amass quite an order bank for it when it does go on sale. Then we can really begin to accelerate in 2017.’ So where will those conquest customers come from? ‘The C-class crossover segment has already shown that it pulls from many different places,’ said Harrison. ‘You get mainstream C-segment
The toughest just got even tougher TOYOTA’S new Hilux had its European debut in Geneva. An entirely new design, it is built on a new and even stronger ladder-frame and is equipped with an efficient 2.4-litre D-4D engine. Matthew Harrison told us: ‘Hilux is a brand icon – all the research tells you Toyota stands for quality, reliability and durability and those credentials are certainly embodied in Hilux. It’s an unbreakable, invincible machine. ‘Despite the proliferation of new competitors that have come into the segment, we have still maintained a strong leadership position and we have an incredibly strong loyalty from many, many customers. It’s our determination to build on that and keep our leadership position.’
customers upgrading, but also, with design and execution like this, you could pull from the premium segments also. You could have BMW 1 Series buyers, you could have Mini Countryman buyers, Jeep Renegade, there’s all sorts of directions we could pull customers from. ‘We try not to constrain our volume ambition by share of segment because I think the C crossover segment will just keep growing.’
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‘We don’t need people to like us – we’re seen as an alternative option’ LEXUS: LC500h will be a rival for the Mercedes-Benz C-Class when it arrives towards the end of 2016
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otor shows always spoil us with shiny new metal to admire. Nevertheless, it can often be overwhelming and difficult to decide which cars truly deserve your focus. Although you may not immediately associate it with performance and innovation, Lexus did, in fact, draw plenty of attention to its stand with the unveiling of its new hybrid performance coupe concept, which as well as being one of the more striking contenders, is also relevant. The LC500h is a hybrid derivative of the Japanese carmaker’s LC coupe and, equipped with the firm’s new Multi Stage hybrid powertrain system, is likely to rival the Mercedes-Benz C-Class when it arrives at the end of the year. The LC500h will be powered by a 3.5-litre V6 petrol unit, which is mated to an electric motor. In total, the combined system will pump out 354bhp, allowing the car to sprint from 0-62mph in under five seconds. The big news is that
LC500h features a four-speed automatic gearbox
by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W
the LC500h features a four-speed automatic gearbox in place of the usual CVT transmission – a first for a hybrid car and one that will allow the hybrid performance coupe to spin-up its rear wheels, allowing buyers to enjoy a ‘true driving experience’ that is often lost on green vehicles. ‘We’re not challenging the Germans directly,’ said Alain Uyttenhoven, head of Lexus Europe. ‘But in the segments we are, we do hold a significant market share. ‘We are the fourth luxury brand in the world and it’s our new brand design and distinctive styling that really separate us from the rest, because we don’t need people to like us – in Europe, we’re seen as the alternative carmaker, and we see this as a good thing – 95 per cent of
our hybrid cars are sold in Europe and Russia and 70 per cent of those customers didn’t know Lexus at all, allowing us to approach the market differently.’ He added: ‘Our range is getting wider very quickly. The LC currently sits at 40,000 sales in the EU, always sitting comfortably between 38,000 and 42,000 every year. ‘Lexus is focusing more on combining design, power and economy than it is on one particular segment. BMW is more serious about performance, while we appear to be more focused on styling and luxury. ‘But we’re building hybrid cars that can sprint to 60mph in five seconds or less, but only emit the emissions of the average saloon.’ Following the recession, Lexus is back up to 15,000 sales a year and, having witnessed a threeyear worldwide sales record, 2015 was the firm’s best year yet. ‘We see consistent growth and development in the market and the quality of our customer service at retailers is very important to ensuring that continues. We’ve got the products and it’s down to our dealers to sell them.’
‘We’re not challenging the Germans directly. But in the segments we are, we hold a significant market share’ CarDealerMag.co.uk | 37
FEATURE.
IN ASSOCIATION WITH
Leaf led the way, now we’re set for our next move NISSAN: Premium Concept crossovers joined IDS on brand’s Geneva stand by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W
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issan wasn’t short of products to show off at Geneva this year. The Japanese carmaker unveiled a range of new cars, plus its Intelligent Mobility system and invited its IDS Concept to the stand for its European debut. As a leader in building some of the industry’s most successful alternatively-fuelled and technologically-advanced vehicles, including the signature Leaf, it’s no surprise that the IDS represented Nissan’s vision for the future of electric vehicles and autonomous driving. The IDS stole the limelight with its evolved EV technology and advanced aerodynamic performance. ‘In 2015, we sold 5,300 Leafs, the majority of which were 20Kw sales. By the end of March, we’re predicting 2,000 sales, with the majority being the new 30Kw,’ said James Wright, MD of Nissan Motor GB. ‘There’s no doubting that this figure will continue to grow year-on-year and reaffirms the fact that more and more buyers are opting to “go green”. ‘In just two months, 85 per cent of EV customers are purchasing the 30Kw Leaf. Four years ago, people were very sceptical about the Leaf and EVs but that attitude has dropped since more carmakers enter the alternatively-fuelled market – one in four buyers would now consider buying an electric vehicle and this figure will only
increase.’ Pursuing a goal of zero-emission vehicles and zero fatalities on the road, Nissan’s Intelligent Mobility vision is designed to guide Nissan’s product and technology pipeline; anchoring critical company decisions around how cars are powered, how they’re driven and how they integrate into society. This Intelligent Mobility vision is borne out in Nissan’s IDS Concept, which is set to revolutionise the relationship between car and driver, proving that Nissan is once again at the forefront of automotive technology. ‘The IDS merges powertrain technology with connectivity, which are the key factors in driving customers to choose an alternatively-fuelled vehicle over a petrol or diesel,’ said Wright. The Geneva Motor Show was also the platform for Nissan’s debut of its ‘Premium Concept’ crossovers. The carmaker took this opportunity to showcase two special versions of its best-selling crossovers, the Qashqai, above, and X-Trail. Taking the current models as a starting point, Nissan has explored how a more premium and dynamic design interpretation
could enhance and extend the appeal of its crossover range in the future. Considering the concept of the urban explorer, each Premium Concept is designed to appeal to a very different customer. In addition, the Qashqai Premium Concept features Piloted Drive 1.0 autonomous technology. This technology allows cars to drive autonomously and safely in a single lane in heavy traffic conditions on highways and will be available on the Sunderland-built Qashqai in Europe from 2017 – becoming the first vehicle in Europe to feature autonomous drive technology. Nissan’s presence at the Geneva Motor Show comes after a year when Nissan recorded its sixth consecutive year of growth and best-ever sales in Europe, having sold 715,623 units by the end of 2015. ‘Maintaining our four per cent market share and growing sales in key countries including Spain, Italy, the UK and Germany, Nissan continues to set new heights,’ said Wright.
INFINITI: Luxury brand is delivering on its promises and making a name for itself INFINITI is on an incredible journey and very much in the middle of a product offensive. That was the message from the brand’s UK country manager Carl Bayliss in Geneva. He told us: ‘We made some promises in terms of the concept cars that were shown here a year ago – and here they are in the flesh. One of the true things that we have in our DNA is that, from concept to reality, they retain the majority of all the features and the detail that was shown in concept phase.’ The Q60 Red Sport coupe, QX30 premium active crossover and Q50 sports saloon shared the limelight on the Infiniti stand – but Q30, 38 | CarDealerMag.co.uk
launched in showrooms this year, was the one Bayliss was keen to talk about. ‘The car really is on lift-off,’ he told us. ‘Built in Britain is a strong message from us and it’s really starting to resonate with people who are new to the brand – they may have looked at Infiniti previously but now we have a tangible relationship with the UK, coupled with the quality of the product itself, we’re generating a lot of interest and sales are taking off.’
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Call 0808 168 5537 or visit www.cargurus.co.uk /signup/cardealermag CarDealerMag.co.uk | 39
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SHOWSTOPPER IN DETAIL
Bugatti Chiron After making its return to the world stage with the Veyron in 2005, Bugatti introduced its new model at the Geneva Motor Show. The Chiron, like its forerunner, has mindblowing facts surrounding it – here are just a few.
The design of the Veyron has been improved and refined to enhance performance. With styling pointers taken from the Gran Turismo Concept shown at the Frankfurt Motor Show last year, the Chiron is an improvement rather than a complete remodel. 40 | CarDealerMag.co.uk
Bugatti says that the top speed has been ‘roadlimited’ to 261mph, already eight miles per hour faster than the original Veyron and three miles per hour faster than the upgraded SuperSport. On the high-speed test run, it’s expected to reach speeds of more than 270mph.
It has more power and torque at its disposal: 1,500bhp and 1,600Nm! That’s a 25 per cent increase in power and 22 per cent rise in torque. With the 8.0-litre W16 engine and four turbos working together to maximise performance, it can sprint from 0-60mph in less than 2.5 seconds.
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Before its unveiling in Geneva, 180 of the 500 planned Chirons had already been ordered, with one customer ordering six in one go.
The Chiron takes up to a week to build, with the maximum output at 65 per year, and deliveries will start in the autumn. Its rarity teamed with its supreme performance gives the Chiron a price tag of £1.9 million.
Bugatti’s new model is named after one of Bugatti’s most successful drivers of the past century who, before World War II, was named one of the best drivers in the world. Louis Chiron was the only Monacoborn driver to win his home Grand Prix, when he crossed the line in 1931.
Like the Veyron, it uses four-wheel-drive, with the updated system using torque vectoring to ensure that each wheel gets the power it needs. It is heavier than the Veyron, but, with its futuristic interior and extra horsepower, we can forgive it.
Despite other companies claiming their cars can match the Chiron’s speed, with Hennessey’s Venom and the Regara from Koenigsegg beating the Chiron in some stats on paper, Bugatti’s new hypercar is expected to steal the crown for the fastest production car from its older sister and go down in history as one of the greatest cars of all time. CarDealerMag.co.uk | 41
DASHBOARD. Unmistakeably a Seat, the Ateca shares the design language of sister models
by DAVE BROWN @CarDealerDave
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y their own admission, Seat were ‘loud and proud’ at this year’s Geneva Motor Show. The reason for their good mood was obvious – the brand’s new SUV – Ateca – billed as a combination of distinctive design, driving fun, urban versatility and compelling utility. Car Dealer chatted to Richard Harrison, managing director of Seat UK, and he told us: ‘We’re excited. This is a car that’s been a long time coming. And the dealers are excited. You can feel the buzz in the network. ‘All the prices, the finance offers and the contract hire rates will be announced in May, so that people can pre-order. The car will be in showrooms at the beginning of September.’ Asked if buyers were registering their interest already, Harrison replied: ‘Yes – and that has blown me away. The level of interest is more than double what we were planning. ‘The car has got that right balance. You can see the Leon DNA in it – and Leon has been a great, great car for the brand. And we haven’t followed everybody else. It’s a car that will stand out well and it drives really well. It’s got that balance of dynamism and comfort that the Leon has.’ The array of technology options extends from full LED headlamps through a broad 42 | CarDealerMag.co.uk
‘We’re excited – this is a car that’s been a long time coming’ SEAT: UK’s managing director is impressed by Ateca, a welcome new arrival already attracting plenty of interest portfolio of assistance systems, such as Traffic Jam Assist and Emergency Assist, plus state-ofthe-art infotainment systems with eight-inch touchscreens and Full Link connectivity. ‘It’s got so much tech,’ said Harrison. ‘I’m addicted to the connectivity now.’ Sales-wise, Seat has had a positive start to the year so far and Harrison told us: ‘January was our biggest ever month for fleet orders, which is interesting. I’m delighted for the teams, both my team and the dealers, who have invested the time and the energy, and now it’s paying back with the cars
Seat says Ateca offers space, versatility and comfort
that we’ve got today – and that’s without Ateca.’ Turning to the thorny issue of pre-registrations, Harrison couldn’t have been clearer: ‘We’re not in that game. I’m quite prepared to lose a little bit of market share to not play that game because it’s not healthy for me and it’s not healthy for my dealers. This year, priority number one is finding real customers and real sales. ‘I will take whatever share comes with that providing I do good business and the dealers do good, profitable business. We’ve had long discussions with our dealer council. We both completely agree this is the right way to do it.’ And on Dieselgate, Harrison told us: ‘Our priority right now, in common with our dealer colleagues, is to make sure that we fix the vehicles which are affected in our brand, that we do it efficiently, professionally and with the least possible inconvenience to the customer. ‘We have a very robust plan which is ready to be executed as soon as we are given the fixes from our parent company in Wolfsburg and that’s it. That’s all we can do as a team in the UK.’
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SUV with six appeal as Skoda plans hybrid and EV offerings SKODA: Brand continues to develop at a rapid pace with clever tech that’s becoming more important to buyers
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eneva certainly wasn’t short of SUVs this year, and there was an interesting take from Skoda, who are hoping to build on the success of the Yeti with the new VisionS concept car, featuring three rows of seats capable of accommodating six people. The Skoda VisionS concept car gives an insight into the future SUV above the Yeti, which will be arriving in the second half of 2016. Besides the future SUV design language, the show car reveals the most important technological innovations that Skoda will be placing an emphasis on in the coming years. ‘Our brand continues to develop at a rapid pace,’ said Skoda CEO Bernhard Maier. ‘With the Yeti, Skoda has already made a big statement in the compact SUV segment. Our extensive 4×4 expertise is now feeding into an SUV production model above the Yeti. ‘In terms of design, overall package and everyday practicality, the Skoda VisionS already provides an insight into our new SUV. The show car also exhibits a variety of future technological advances that are becoming more and more important to our customers and therefore to Skoda. This is why we are also working on areas such as electromobility, automated driving and the comprehensive networking of car, driver and passengers with their environment.’ Over the course of its growth campaign, Skoda
by DAVE BROWN @CarDealerDave
has already extensively updated its model range, expanded into new segments and increased its international market presence. In addition to the brand’s proven functionality and new emotive quality, there is now also an increased focus on the use of technological innovations: the VisionS show car featured plug-in hybrid drive, a drive system similar to those that will be used in future production cars. Furthermore, Skoda is also working on a purely electric drive system. Two years ago, also at the Geneva Motor Show, Skoda presented the VisionC design study and showcased its new design style that underlines the brand’s emotive strength: the Fabia and Superb were the first production cars in this style. Skoda is now applying its modern design to the SUV segment. ‘The VisionS is designed in an expressive, attractive and dynamic way; the design has a balance – typical for Skoda – of rationality and
Future is electric for Czech firm SKODA is working flat-out to launch electric production cars: in future, a plugin-hybrid engine will be available, followed shortly afterwards by a purely electrically powered engine. The VisionS provides a glimpse into the Czech manufacturer’s electric future: with a power output of 165 kW (225 PS), the car on show at Geneva accelerates from 0-62mph in 7.4 seconds and has a top speed of almost 124mph. The ŠKODA VisionS can cover up to 31 miles in electric mode alone, and travels up to 621 miles with both systems combined. aesthetics,’ said Skoda head of design Jozef Kabaň. ‘The lines of the Skoda VisionS have been inspired by the tradition of Bohemian crystal glass art and a touch of cubism: all sections are precise, sharp and clean-cut. On the surfaces, the distinctive play of light and shade creates strong effects that are emphasised even further by the colour Iceland Green.’
The distinctive ‘Iceland Green’ paint job on the VisionS certainly attracted attention
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New Civic will be built at if Britain decides to quit Honda’s next generation Jazz sees sales boost
SINCE the launch of the third-generation Jazz in 2015 it has been a challenge to strengthen the appeal of the B-segment supermini but, according to Honda, it’s done exactly that. ‘Its new styling and heightened interior space coupled with a new chassis set-up and a range of power units, including the 1.3-litre i-VTEC, has transformed the Jazz into the car it should be,’ said Honda UK MD Philip Crossman. ‘Like the Civic Tourer, HR-V and CR-V, the Jazz is helping us to retain customers and attract new ones. We finally have a full range of cars successfully competing in each major segment of the market again.’ Philip Webb, head of cars at Honda UK, said: ‘Our two-year strategy to improve dealer profitability is getting results, too. We have been behind on customer service plans and PCP deals in the past but we’re on target to double dealer profitability by 20 17.’
44 | CarDealerMag.co.uk
HONDA: Wiltshire plant has strong future in car-making for many years to come, says manufacturer’s UK MD
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tanding at the centre of the Geneva Motor Show’s hectic halls, among all the new metal, it’s hard to miss the fact that the spotlights are picking out each manufacturer’s latest addition to the line-up of wild concept cars — and that many of them will probably never meet the tarmac. That’s why it’s refreshing to come face-to-face with a prototype that not only looks good but also resembles the vehicle that will eventually roll off the production line. The new Civic concept took pride of place on Honda’s stand and, speaking to Car Dealer, the brand has confirmed the new model will be built here in the UK — whatever the outcome of the EU referendum. The new five-door Civic, based on the popular two-door hatchback, is set to launch in October with an estimated production date of January/
by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W
February 2017. According to the brand, the car’s sporty looks and added versatility are designed to draw in younger buyers, while still catering for existing Civic customers. The
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Swindon, even Europe... Japanese carmaker has invested £200 million in its manufacturing plant at Swindon and, for the first time, will import the Civic to the USA from the UK. Philip Crossman, Honda UK MD, said the new C-segment family car will look very similar to its appearance in prototype guise and will allow the brand to compete in one of the most exciting segments in the market. ‘We refer to 2015 as our game-changing year; we launched a number of new models, including the new Jazz and the Type R, which placed Honda back on the map. ‘Already we’re sold out of Type R for the next six months,’ said Crossman. ‘So far, dealer response to the new Civic model has been great. It’s a different car to the current Civic but still caters to our existing customer base — dealers won’t have any trouble selling this car, to both new and returning buyers,
Supercar pricing is announced
Honda NSX especially with styling that closely resembles features from the Type R.’ Crossman added: ‘We’re proud that the new Civic will be built at Swindon. ‘There is uncertainty as to the outcome of the EU referendum but we’ve invested a lot of money into the plant and we’re confident the Civic will be built there, whichever way the vote goes.’ Across the Atlantic, the American market has a three-door coupe and five-door saloon version of the medium-size hatchback. However, under new global plans, the all-new five-door hatchback, which is usually reserved for the European market, is destined to head overseas. Phil Webb, head of cars at Honda UK, added: ‘Exporting to countries we’ve never exported to before sends out a strong message to our customers and reaffirms that Swindon has a strong future in manufacturing for many years to come. Leaving the EU could pose some uncertainty to the industry, but we’re trusting the government to do the right thing.’
The new Civic concept car is destined for export from the UK
IT’S almost five years since Honda announced the development of the new NSX and it wasn’t until last year that we got to feast our eyes on the final product. In Geneva, the Japanese carmaker revealed the official UK pricing for its highly-regarded supercar. The NSX won’t be offered as a limited run although it will be a built-toorder vehicle and customers will be able to spec and personalise their NSX to a much higher degree than on any other Honda, including a range of exterior and interior design packages, wheel options and a wealth of the latest technology to equip the cockpit. The NSX puts Honda back on course to rival the Audi R8, the Porsche 911 and the Mercedes-AMG GT. With prices starting at £130,000, it has been dropped in the deep end of the gene pool, putting it up against some tough competition when the first European deliveries arrive in the autumn. The NSX is nigh on £3,000 more expensive than the Porsche 911 Turbo, a whopping £19,500 more than a Mercedes-AMG GT S and it’s almost £25,000 more than BMW’s plug-in hybrid i8. Its key offering is its 2.9-second 0-60mph sprint time and a top speed of 191mph. Combining a complex hybrid powertrain, with a mid-mounted 3.5-litre twinturbocharged V6 and two electric motors, the result is 565bhp and 600Nm of torque, putting the NSX in supercar territory. It’s only when you compare the NSX to the likes of the £180,000 Ferrari 488 GTB — which boasts a similar 0-60mph time and a top speed of just over 200mph — that it begins to represent value for money.
‘Exporting to countries we have never exported to before reaffirms that Swindon has a strong future’ CarDealerMag.co.uk | 45
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SHOWSTOPPER IN DETAIL
Renault Scenic The Geneva Motor Show saw Renault unveil its all-new Scenic, 20 years after the original arguably changed the way we look at family motoring. Since 1996 the Scenic has gone from strength to strength, picking up its fair share of accolades along the way. The latest model will be available next winter.
All models of the new Scenic will feature 20-inch rims, which may seem out of place on an MPV, but are in fact a styling innovation. These large rims will be shod in special Michelin tyres, which will offer a high level of ride comfort. The alloys will also help to lower fuel consumption and improve aerodynamic efficiency.
46 | CarDealerMag.co.uk
As well as being a leader in safety, the new Scenic will also feature a best-in-class interior volume with a 572-litre storage space, which is significantly bigger than the Scenic 3. This means the new Scenic is one of the top three cars for interior space with the largest boot in its class.
The Renault Scenic is regarded as one of the safest vehicles around, boasting a five-star Euro NCAP rating on previous models. This model is no different and is the only compact MPV to offer Active Emergency Braking System (AEBS), with Pedestrian Detection as standard.
The Scenic will be equipped with Hybrid Assist when powered by the Energy dCi 110 diesel engine combined with a six-speed manual, which Renault says combines low fuel consumption with high levels of driving enjoyment. This innovative system makes use of a 48-volt battery and is able to recover energy from deceleration and braking.
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Higher end versions of the Scenic will feature the 8.7 inch multimedia R-Link 2 tablet, which is the same found in the Espace and the Talisman. The system, which also features voice recognition, can be used to change the navigation, makes use of the telephone function and controls the radio. One package also includes a free 12-month subscription to TomTom Traffic.
Renault’s full colour head-up display will feature in the new Scenic and is set to enhance safety and comfort by making the driving aids easier to read and use. This means that the driver can spend more time focusing on the road and less looking at the dashboard, creating a safer driving environment.
In order to create a comfortable, user-friendly cabin space, Renault has created a system that makes the rear seats fold down with just the press of a button and provides a flat floor configuration. The Scenic also adopts the clever front passenger front seat, which can be tipped forwards to make a table in certain models.
Renault will be offering the 4Control four-wheel steering system on the Scenic which will work with the Multi-Sense technology. This in essence means better low speed manoeuvrability and better handling at high speeds and can also be personalised to the driver’s requirements.
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The Volvo V90 took pride of place on the brand’s stand in Geneva
Buoyant dealers and award-winning cars... we’re really on a roll! VOLVO: Swedish brand wants to get to 60,000 units by 2020 – ‘and we haven’t sold that many for four decades’
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hatting to Volvo’s UK boss Nick Connor a few days before the start of the Geneva Motor Show, one of the main themes of our conversation was the sleek, smooth lines of the brand’s V90 estate – one of the two cars the manufacturer was planning to focus on in Switzerland. ‘I think it looks fantastic,’ Connor told us. ‘It’s very sleek, very stunning. It’s very Swedish and sophisticated – lovely. The interior is beautiful as well. We could go on and on about the technology and the driveability but I think it just looks very different from anything else on the market. It’s very understated, very stylish, and that certainly seems to be the feedback that we have had from the media thus far.’ Volvo’s other important car at Geneva was V90’s sister model, the S90 premium saloon, pictured right. Just a few days after our conversation, S90 won the Production Car Design of the Year award for 2015 thanks to panel of automotive designers. It was chosen from a list of 20 contenders, receiving praise for its great proportions, use of materials and timeless design. V90 and S90 are certainly a good-looking duo, then – but, as Connor explained, they’re not the most important models for the brand in the UK. 48 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave He told us: ‘To be frank, they won’t deliver a huge amount of volume for us this year, but what they do do is establish us in a bit of the market where we haven’t necessarily been particularly strong, particularly with S90. ‘V70, V70 Cross Country and XC70 have done really well for us, but S80 frankly is getting on and has never set the world on fire, so we have an opportunity to put down a marker and show that we can create and successfully sell a large premium saloon.’ Volvo is on a bit of a roll at the moment, having effectively relaunched itself last year with the arrival of the XC90 luxury SUV. Connor told us: ‘The mood certainly seems to be fairly positive in the dealer network. We took all of our dealers to Gothenburg back in January and gave them a glimpse of the future with Volvo. ‘The feedback after that was extremely positive. I think the dealers are genuinely feeling really buoyant about Volvo. We have had some very
Xxx xx We can work with likes of Carwow THE car-buying landscape is changng all the time with a number of web-based broker sites making their presence felt these days. Perhaps the most high-profile of these is Carwow. Connor acknowledged: ‘Carwow are one of many, and certainly one of the more prominent ones. We have no issues at all with these sites. ‘We’ve met with them – they provide another route to market for our dealers. It’s about working with all these broker sites in the right way. We want to protect our Volvo brand image and our dealers want to protect their margins, but I don’t see that they’re necessarily mutually exclusive. ‘Carwow are spending a lot of money promoting their services to the public at large. We have to respect that and work with them to everyone’s best advantage.’
good sales years recently which obviously helps, but I also think they look at the products that are coming and that is only going to continue. ‘We’ve put a stake in the ground that says that by 2020, we want to get to 60,000 units in the UK, which is a position we haven’t been in for four decades. We have broken that down into manageable chunks and demonstrated which car lines deliver which volume. They really get it.’ Showstopper in detail, p56
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Why Kia’s fab four are ready to clean up in crossover stakes KIA: And in the D-segment, too, Korean manufacturer is making good progress by diversifying Optima powertrain
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ia had a busy stand at Geneva this year – with a brace of European debuts and another model being shown for the first time globally. The model making its first appearance anywhere in the world was the Optima Sportswagon – and it’s a car that will help Kia make a lot of progress in the D segment. In Europe, two thirds of all sales in the D segment, and three quarters of all fleet sales in this class, are made up of tourers, so Kia know it will play a critical role in attracting new private and corporate buyers to the brand. Kia’s UK MD Paul Philpott told us: ‘In some markets, if you don’t have a wagon, you can’t really sell a D-segment car. Some of the Scandinavian markets are very big into wagons and in the UK, the wagon is really important too. ‘With only a four-door sedan, we’re really only playing in about a third of the market. Add on wagon and suddenly we’re in three-quarters.’ The Optima Sportswagon will be available with a choice of efficient and responsive powertrains, including a high-powered GT Model – and the Optima saloon will be available with a hybrid
by DAVE BROWN @CarDealerDave
powertrain towards the end of the year. That car, also on show at Geneva, is Kia’s first-ever plug-in hybrid vehicle, and will enable drivers to travel for up to 33 miles in electric-only mode before a 2.0 GDI engine kicks in. Kia’s development teams are targeting combined CO2 emissions of just 37g/km, which will ensure a low total cost of ownership for private and fleet buyers alike. It’s the evolution of the powertrain that Philpott is most excited by when he looks at the cars in the Kia line-up. He told us: ‘Optima has, for the last five years, sold with a 1.7 diesel powertrain. Now, suddenly we go to three powertrains, with a high-performance version and a plug-in, we’re starting to diversify.’ The third car Kia were showcasing was Niro, the brand’s all-new hybrid crossover. Philpott said: ‘This is our first dedicated hybrid, with a desirable product design. We’ve hit the market right. When
Sportage figures ‘very encouraging’ THE all-new Sportage is continuing to be a major success for Kia. The fourth generation of the compact SUV was launched on Friday, February 5, and, as Car Dealer has reported online, the manufacturer’s dealer network took more than 1,500 orders for the new car during the first weekend it was available. Fast forward a month, and with figures for the first three weeks of sales now in, more than 5,000 orders have been placed for the car. Paul Philpott told us: ‘When you consider that we sold 22,500 Sportages last year, the figures we’re seeing now are really encouraging. The design is really well-liked and the quality is much appreciated. And we’re also seeing some really good conquest sales, too.’ you look back to 2012, one in eight new cars sold in the UK car market was an SUV. By 2015, that was one in four. We’ve got Soul today, Sportage which is brand new, Sorento new last year and soon we’ll have Niro. We’ll have four SUVs in the most buoyant part of the market. That’s really exciting for the dealers.’
Optima Sportswagon GT (main picture) and Niro, far left
CarDealerMag.co.uk | 49
DASHBOARD. ‘We may look at opening more retailers over the next four to five years’
Hundreds of potential buyers expressed an interest in the new McLaren 570GT at Geneva
Performance plus practicality – McLaren’s winning combination MCLAREN: New 570GT set to double brand volume as strategy continues to launch 15 new cars by 2022
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CLAREN
has launched the latest model in its Sports Series line-up — the McLaren 570GT — which, the British carmaker told Car Dealer at the Geneva Motor Show, is tasked with doubling the brand’s volume. Practical enough for everyday use, the two-seater, mid-engined supercar is dubbed the most usable and road-biased McLaren ever built. Its focus on day-to-day usability and long-distance comfort is uncommon in performance cars. The McLaren 570GT joins the 570S Coupe and 540C Coupe in the Sports Series family and, with help from retailers, aims to attract a new customer base and double sales volume in the next 12 months. Jolyon Nash, executive director of global sales and marketing, said: ‘We started selling cars again in July 2011, opening our first retailer at 1 Hyde Park. We have six dealerships across the UK and, as volume increases, we may look at 50 | CarDealerMag.co.uk
by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W opening more retailers in the next four to five years. Demand for our cars continues to exceed expectations. The 570S went on sale in November and we are sold out for the next six months. It was the same story for our Special Operations Spyder — after launching a limited run in December, we were sold out within three weeks. Now it’s regarded as the most successful car we’ve ever built. The 570GT looks to be following the same trend — we have seen 300 potential buyers here at the show alone.’ As planned, McLaren is on target to launch at least one car every year until 2022, investing £1bn into the development of new products. To boost sales the brand is relying on its dealers to build connections with new and
returning customers. Nash added: ‘Our dealers need to generate healthy volume to get a good return on investment. The majority of our buyers are new to the brand — they like the desirability and performance of McLaren but are attracted to the usability we offer over our competitors. ‘We launched five cars last year and, under our new business plan — Track 22 — we’ll be launching 15 new cars and derivatives in the next six years.’ Talking about the EU referendum, Nash said: ‘Seventy per cent of our parts and components are imported from across Europe and we export 90 per cent of our products worldwide — we just need to see what happens.’
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Clever car that’s turned Tony Whitehorn into the Ioniq man HYUNDAI: UK MD is relishing the prospect of marketing an innovative model with three electrified powertrains
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yundai set out to electrify the Geneva Motor Show this year – and they certainly had plenty of people charging to their stand to inspect their innovative new Ioniq models. Ioniq is the world’s first car that offers three electrified powertrains, with the line-up consisting of hybrid, fully electric and plug-in variants. And chatting to the president and CEO of Hyundai Motor UK, Tony Whitehorn, it soon became clear what a crucial milestone the car represents for the company. It’s the first step in an intensive few years of powertrain innovations that will be delivered by Hyundai, too. He told us: ‘Looking ahead, there will definitely be a trend in the British consumer market for people to be a little bit more discerning about methods of propulsion. ‘Diesel is still very good and it’s still very popular, but people are starting to explore alternatives. And there are now, on the market, many more alternatives. Hybrid has come to the
by DAVE BROWN @CarDealerDave
forefront, EV is now coming to the forefront a little bit more, and plug-in is definitely an option.’ Ioniq isn’t in showrooms yet – but there isn’t long to wait. ‘Around about September/October time, we’ll be looking to launch the hybrid,’ Whitehorn told us. ‘Then, marginally later but at a similar sort of time, we’ll have the EV as well. Next year, the plug-in will arrive.’ Whitehorn points to a scenario in which customers will be able to choose their car’s method of propulsion in the same way as the model itself or the trim level. And he sees Ioniq as the start of that process. ‘Nobody has got anything like this, which is great. And Ioniq isn’t purely about eco, it’s about driveability,’ he emphasised. ‘Nothing has been signed off yet so I can’t give you an indication of what the CO2 is going to be – but that’s not
Hyundai’s Ioniq line-up had its world premiere at Geneva what the focus is. The focus is on how the vehicle drives, and that’s more difficult to communicate. ‘People will look at it and wonder what the CO2 is, naturally, but it’s not just about that – it’s about, how can you live with this car and what’s it like to drive. Other hybrid vehicles are fine but they’re not drivers’ cars. This is.’ Asked about sales forecasts, Whitehorn revealed: ‘Across Europe this year, we’re looking to sell 3,000 hybrids and 1,500 EVs. We’re looking to sell these mainly in the UK, Germany, the Netherlands, Norway and France. ‘They are the major markets in which we are going to be launching this car this year – and if you have a look at each of those, the mix will be different. Somewhere like Norway, that will be almost exclusively EV. ‘The UK will be much more hybrid. Customer behaviour is driven by the tax regime in each market. It’s a really interesting phenomenon. ‘And between now and 2020, Hyundai Motor Group is going to have 22 new eco-friendly vehicles. That’s the focus over the next four years.’
‘Ioniq isn’t purely about eco, it’s about driveability’ CarDealerMag.co.uk | 51
DASHBOARD.
SHOWSTOPPER IN DETAIL
Aston Martin DB11 The DB9 has been the flagship model for the Warwickshire-based company for 12 years, and has been one of the best GT cars of the 21st century. At Geneva its new replacement was officially shown off for the first time.
The DB11 is the tenth road worthy car in the ‘DB’ series, after the DB8 and DB10 were either scrapped or used in a James Bond film as a concept. Designed as a Grand Tourer line, the DB11 continues the trend with the 2+2 layout.
The wheelbase is also longer than the DB9’s, meaning there is more legroom in the back and accommodates a luxurious interior for both the driver and passengers. Also included is a Bang & Olufsen stereo system, a 360-degree camera and auto-park assist.
The new deliveries of the DB11 will begin towards the end of 2016, with the original price tag set at £154,900. The DB11 is also very customisable and has many variations to both the interior and exterior on offer. 52 | CarDealerMag.co.uk
With its 600hp 5.2-litre V12, it is going to be faster than it’s predecessor and is the most powerful DB ever. The top speed is expected to be in excess of 200mph and will accelerate from 0-62 in 3.9 seconds, with only a select group of Astons going faster.
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This V12 differs from others fitted to previous Astons because of the additional twin turbos, which are designed to increase power output and help to reduce emissions. Cylinder deactivation will also help to decrease the environmental impact and adds adaptability to the performance.
Much of the technology used in the car is adapted from Daimler AG’s systems, after the German company bought a higher stake in Aston Martin. This means that a 4.0-litre Mercedes AMG engine could be adapted and used later in the car’s production cycle.
Despite looking very much like every other Aston from the front, thanks to the distinctive grille, the DB11 is longer than its predecessor and also has a more aerodynamic rear. Under the newly bonded aluminium body, the structure has been strengthened and lightened to help keep weight down.
This new model is part of Aston Martin’s ‘Second Century’ project, which would revamp the entire range of Astons over the next few years, with other models such as the DBX crossover and new sports models slated before the end of the decade. CarDealerMag.co.uk | 53
DASHBOARD. Mitsubishi’s eX Concept will lead to the introduction of a car to slot in between ASX and Outlander
‘We’re a good brand to be part of – that’s the feedback we’re getting from dealers’
‘Grant reduction won’t hurt sales’ MITSUBISHI: Outlander PHEV will continue to be a success – and eX Concept shows brand’s direction
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itsubishi UK boss Lance Bradley doesn’t think that the government halving its grant for ultra-low emission vehicles will have any impact on sales of the firm’s popular Outlander PHEV. From March 1, the £5,000 bonus from the government was chopped to £2,500 – and despite Mitsubishi seeing a large increase in orders from customers looking to capitalise on the bigger bonus, Bradley doesn’t think the change will affect sales. He said: ‘You know £2,500 is a reasonable sum of money but this is a £40,000 car so on a monthly payment it’s going to make a difference of 10 per cent, It’s just not going to be enough to put somebody off. ‘I actually don’t think it will tail off. The people who are considering a PHEV will look at the price, spec of the vehicle and what it can do and they won’t even know there used to be a grant worth more than £2,500. They’re just going to think it’s brilliant that there is a grant. ‘We’ve taken a lot of orders in the run up to the grant changing so there will probably be a bit of 54 | CarDealerMag.co.uk
by JAME BAGGOTT @CarDealerEd a lull but after that I think it will start to pick up and within a month it will be back at the same sales rate that it always has been.’ Mitsubishi showcased its eX Concept on its Geneva Motor Show stand, following its global reveal at last year’s Tokyo Motor Show. Bradley explained this is a car that will fit in the line-up between the ASX and Outlander. Featuring a pure EV drivetrain, it can travel 250 miles on a charge and features twin motor fourwheel drive. The rear hinged doors and missing B pillar are unlikely to make production, but Bradley says the look is a strong indication of its final styling. ‘Mitsubishi has a strong track record of launching cars that look incredibly close to their concept cars and I have no doubt this will be the same,’ said Bradley. ‘The chances of the production version of this car looking like that on display here today are high.’
Mitsubishi is riding on a huge wave of success at present. It’s been the fastest growing brand for three years running now, growing 38 per cent in 2013, an incredible 75 per cent in 2014 and a further 44 per cent last year. Bradley’s plan is to continue that growth rising to 45,000 annual new sales. He says the firm will do that with new models – there are five coming in the next five years with a small SUV, mid-sized SUV, New Outlander, Shogun Sport and new Shogun all inbound. All of this combines to make his dealers very happy indeed. ‘We’ve got a very good dealer network,’ he said. ‘Over the last couple of years the profitability of the network has improved quite dramatically. ‘There’s always a bit more you can do in that respect and we’ve got some plans there, but you know when you have a range of cars that we have which is probably the best we’ve ever had and we’ve got the fastest growing brand in the UK for the last three years, well that’s a good place to be, we’re a good brand to be part of and that’s the feedback we’re getting from dealers.’
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Punchy and peppy, Baleno will surprise a lot of our buyers SUZUKI: With Celerio flying high after its troubled launch last year, manufacturer is geared up for another new arrival
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s car launches go, it wasn’t exactly a triumph. Sales of the then-new Suzuki Celerio were stopped in February last year after two of the cars suffered brake failure during testing by journalists from the magazines What Car? and Autocar. Fast forward 13 months, however, and the picture couldn’t be more different. With remedial work swiftly carried out to rectify the issue discovered at Millbrook Proving Ground, the city car has gone from strength to strength – and Dale Wyatt, sales and marketing director of Suzuki UK, couldn’t be more pleased. ‘Celerio has undergone a fantastic recovery after the unfortunate start we had,’ he told us at Geneva. ‘I’ve just come back from a distributors’ meeting where we received an award as European distributor of the year for Celerio sales. ‘So we’ve gone from the worst start you could imagine to becoming the biggest-selling Celerio country in Europe. It was always a good car. From bad things, good things often appear. ‘It’s a good car and the reason it’s a good car is that it delivers what the customer wants. Celerio’s got nice headroom, it’s got good space, it’s easy to get in and out of, it’s incredibly easy to drive, and has great visibility. What more could you want from a small car? It ticks every box.’ Next on the agenda for Suzuki is the Baleno hatchback, equipped with the manufacturer’s
by DAVE BROWN @CarDealerDave
newly-developed 1.0-litre Boosterjet direct injection turbocharged petrol engine. Wyatt told us: ‘We’re excited about Baleno. We know that people love Swift. ‘The only reasons not to buy a Swift are boot space and leg room. ‘If you want to drive a car that’s engaging and visually stunning, it’s the car for you but if you need something that’s a bit bigger, it isn’t. This car meets that, so in Baleno, we have a car that’s got class-leading boot space, class-leading leg room and will surprise people. ‘The Boosterjet engine it has is a slightly smaller output engine, but it’s the same technology, as the Boosterjet engine we have in the Vitara S. People will be very surprised at how punchy and peppy Baleno is to drive. It’s a traditional, straightforward, conservative car but with a really emotional engine which will be great.’ Explaining a bit more about the way Suzuki operates in the UK, Wyatt said: ‘One of the things about Suzuki is that we operate a business with guidelines rather than rules. We work with owner-driver dealers and we try and work in a
Ant and Dec in the driving seat SUZUKI have been working with TV stars Ant and Dec this year – and the relationship has had a dramatic effect on the brand’s profile. Their cars have been seen in commercial breaks during the show Saturday Night Takeaway, and during other prime-time slots on ITV. Dale Wyatt said: ‘Not only has it been entertaining, it’s been really effective. The spike we have seen in interest in Vitara and Swift has been fantastic. What we’re doing is taking the Ant and Dec likeability and having that as an umbrella over our brand. ‘We’re really proud. The guys are great to deal with and the other great thing about Ant and Dec is that they only ever work with one partner – it used to be Morrisons, now it’s Suzuki.’
bespoke way with each dealer. We try to give our dealers a bit of room to breathe so they can express themselves. ‘Often, a Suzuki dealer is an established brand name in its own right in the town or city in which they operate. If we can combine their own family brand strength with our brand strength, we can achieve great things. I think some brands try to dilute that – but we’re more about personality than we are about process.’
Baleno took pride of place on Suzuki’s stand at Geneva
‘Often, a Suzuki dealer is an established brand name in its own right’ CarDealerMag.co.uk | 55
DASHBOARD.
SHOWSTOPPER IN DETAIL
Volvo V90 After its original release in mid-February, Geneva gave us the opportunity to get a closer look at the new Volvo V90 estate, the latest addition to the Swedish manufacturer’s premium range. Here’s an insight into the new V90 and what it has to offer…
The T8 hybrid engine has three modes to suit different situations, ‘Hybrid’, ‘Power’ and ‘Pure Electric’. Pure electric mode gives you up to 25 miles of range on a full charge, ‘Hybrid’ mode gives efficient driving for the everyday, and ‘Power’ combines both the electric and petrol power to optimise performance. 56 | CarDealerMag.co.uk
This will be one of the first cars in the UK to be offered without a key and instead can be opened and started remotely with an application on your smartphone. You can opt for the standard key, but if you choose the application route, the code to get in can be shared so multiple people can use the car.
As is normal with Volvo, safety is a key part of the V90’s makeup. Included in the standard features is the latest Pilot Assist semi-autonomous systems, large animal detection, lane keep assist and many other features. Optional equipment includes a blind spot monitor, rear collision warning and Park Assist Pilot software.
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The V90 joins the S90, the saloon version, and the XC90 SUV, both part of the upmarket range offered by Volvo. All three are setup on Volvo’s ‘Scalable Platform Architecture’, with the V90 providing a large amount of boot space on the adaptive SPA format.
To match the S90, the estate will come with a choice of petrol, diesel or hybrid power, with the hybrid unit joined to a petrol engine. Both the petrol and hybrid models will come to the UK after the diesel options, which will be available from release.
The diesel-powered models will be the first to drive on British roads, with the D4 and D5 engines offering superb economy. Both diesels use Volvo’s eightspeed automatic gearbox to maximise efficiency, which for both means good miles-per-gallon statistics.
Features supplied as standard include leather seats, sat-nav, a nine-inch touchscreen infotainment system and LED running lights. Only two trim levels will be available in the UK, Momentum and Inscription, but as the V90 is a premium estate, both are well equipped.
Estimated prices for the V90 start at around £33,000, slightly more than the S90 saloon estimates. Sale dates are yet to be confirmed, with late 2016 the likeliest time. It may be slightly pricier than its market rivals, but thanks to its increased safety features and premium finish, the V90 will justify the extra expenditure. CarDealerMag.co.uk | 57
DASHBOARD.
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Much-anticipated M2 heralded as latest in long line of legends BMW: German company aims to set the benchmark in the compact high-performance sports car segment
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isitors to BMW’s stand weren’t short of cars to lust over and, being the brand’s centenary year, it had every right to brag. To mark the occasion, the German carmaker used this year’s Geneva Motor Show to present the world premiere of the new BMW M760Li xDrive, debut the iPerformance model range and introduce the much-anticipated M2 to potential customers. The iPerformance cars – which from July 2016 will highlight the transfer of technology from BMWi to the BMW core brand – include the BMW 740e, 740Le and 740Le xDrive saloons, equating to five plug-in hybrid variants in the 2 and 7 Series model ranges. The BMW M760Li xDrive, the flagship of the freshly launched BMW 7 Series model range, also underlined its range-topping status with an M Performance TwinPower Turbo 12-cylinder petrol engine under the bonnet, redefining the state of play in the luxury saloon segment. However, it was the M2 that attracted the most attention, taking to the stage with a host of M Performance components. According to BMW, the new M2 sets the benchmark in the compact high-performance sports car segment in terms of dynamics and performance and is M division’s
58 | CarDealerMag.co.uk
by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W answer to the Mercedes-AMG A45 4Matic and Audi’s RS3 Sportback. The M2, the successor to the 1 Series M Coupe, is the latest compact sports coupe in a long line of legendary road and racing BMWs, following in the footsetps of the 2002 Turbo, E30 M3 and 1M Coupe. Cast in a similar mould, it brings the model up to date with the latest in motorsport-derived technology. The result is a powerful performer both on the road and on the race circuit. Powered by a new, specifically developed, 3.0-litre straight-six engine with BMW TwinPower Turbo technology, the latest product from BMW M GmbH produces an impressive 370bhp, enabling an electronically limited top speed of 155mph. When equipped with the optional seven-speed M DCT dual clutch automatic gearbox, the M2 can sprint from rest to 62mph in just 4.3 seconds. The new two-door will be priced from £44,070 when it goes on sale in April 2017 — £12,250 cheaper than its more powerful big brother, the M3 – the former entry car into BMW’s M range.
Xxx Top performance xx with economy Xxx
THE BMW M engineers have reduced weight where possible, improved rigidity and honed the M2’s responses through chassis technology and electronics. The selection of BMW M Performance Parts enables customers to choose from an array of motorsport-inspired components. The new 3.0-litre, six-cylinder M TwinPower Turbo engine pumps out 370bhp at 6,500rpm and will rev to 7,000rpm, while peak torque of 465Nm is on tap between 1,400 and 5,560rpm. Economy figures are strong, boasting a combined fuel consumption of 33.2mpg with a six-speed manual gearbox, or 35.8mpg with the M DCT transmission. [CD]
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NORTHERN IRELAND: A car dealer in Killyleagh is the latest to join the MG Motor UK franchise. T M Martin & Son was established in 1907 as a cycle manufacturer and the business has always been loyal to selling Longbridge-built vehicles, so it seemed fitting to bring in the latest range of MGs. Dealer principal John Martin said: ‘We’ve had an association with cars built in Longbridge for many years, so to keep the tradition going we wanted to get MG into our showroom again.’
MG franchise deal keeps tradition going
What has been hitting the headlines on the home front? Here’s a round-up of stories
STOCKTON-ON-TEES: Jennings Motor Group has opened the doors of a new Subway store at its Kia dealership at Preston Farm. Nine jobs have been created, marking the beginning of a new business venture. The sandwich bar is one of two Subways to open within a dealership, following the launch of Skipton Ford’s in North Yorkshire in November last year, and will be run by Natasha Khan, the 26-year-old daughter of Jennings Motor Group manager Nas Khan.
Food for thought at dealership
GLASGOW: A stellar contribution to Isuzu sales and customer service has earned Eaglesham Garage the accolade of Isuzu Dealer of the Year for 2015. An Isuzu specialist since 1989, the showroom was able to count on its extensive experience and expertise since it ranked among the best dealers in the United Kingdom on sales alone. The Scottish team sold 112 of the multi-award-winning D-Max pick-ups throughout the year – a 17 per cent increase on its 2014 total.
Sales expertise leads to award joy
DUNDEE: Barnetts Volvo has opened a ‘Volvo Retail Experience Concept’ showroom as part of a £1m investment for its Dundee site. The state-ofthe-art showroom right on the waterfront boasts a new Scandinavian-inspired layout, which sees 40 per cent of the area becoming a ‘living room’, while the remaining 60 per cent becomes the ‘street’. It has been opened in Barnetts Motor Group’s 50th year of representing the Volvo brand.
Scandi concept in showrooms opens
News from around the UK DASHBOARD.
CarDealerMag.co.uk | 61
Honda and Higginson – ‘Peas in a pod’ HERTFORDSHIRE: A family of Honda fans have bought an astonishing 30 cars made by the manufacturer from the same dealership. Since 2004, Debra and John Higginson – and a number of their family members – have been regular visitors to the Brayleys Honda showroom in St Albans. They’ve owned almost every model in the line-up and sales executive Perry Clive, who has looked after them all this time, said: ‘The names Honda and Higginson are like peas in a pod.’
Honda UK MD has three cars stolen
WEST MIDLANDS: Three cars have been reported stolen from the home of Honda UK managing director Philip Crossman. The news was announced by Crossman on Twitter after ‘uninvited scum’ targeted his home. According to his tweet, the thieves stole three cars, two of which were Honda CR-Vs, as well as his passport, iPads, watches and wallets. Responding to best wishes from industry members, Crossman, who was out at the time, said: ‘It’s just a real pain chasing everything up.’
CHESHIRE: Stratstone Aston Martin Wilmslow has been crowned the world’s best-selling Aston Martin dealership for 2015. Christian Marti, global sales director at Aston Martin, said: ‘This is a great achievement for Aston Martin Wilmslow. The Stratstone group of dealerships form a vital part of our global dealer network.’ Phil Cole, dealer principal for Stratstone Aston Martin Wilmslow, said: ‘We’re extremely proud to be crowned the biggest-selling Aston dealership in the world.’
Sales glory for Aston Martin team
WIRRAL: Five vehicles were stolen from a dealership after thieves raided the premises and took the keys. The crooks targeted Bromborough Road Car Sales in Bromborough by apparently cutting through a padlock to the gates before gaining entry to the showroom. According to the Liverpool Echo, they took the keys to a silver Ford Fiesta, a grey Ford C-Max, a green Ford Focus, a white VW Transporter campervan and a silver Lexus is200. The Lexus was later found.
LONDON: A second-hand-car trader has been jailed for 16 months after selling two vehicles that had tens of thousands of miles wiped off their clocks – and making fun of customers who dared to complain. Direct Car Sales owner Farman Tayebi, from Putney and with branches in Croydon and New Malden, was jailed at Kingston Crown Court, having earlier admitted winding the cars’ clocks back by 30,000 miles in one instance and more than that on the other.
Trader jailed for selling clocked cars
PETERBOROUGH: SsangYong has appointed MT Cars as a dealer. The franchise will be run from its premises in Eastrea Road, Whittlesey, and dealer principal Mark Twigg said: ‘We are delighted to have been appointed to represent SsangYong and greatly look forward to playing our part in its continuing success. SsangYong has a great range, and with very competitive pricing and a five-year limitless mileage warranty on every car, we believe it will do extremely well in our area.’
STOCKPORT: H R Owen is set to strengthen its Maserati representation with a new showroom in the town. The new outlet will join the existing Maserati site in St Albans and long-established flagship showroom in South Kensington, London. Located alongside the existing Lamborghini Manchester site, H R Owen Maserati South Manchester will become the newest Maserati dealership in the UK. Construction has begun, with completion planned for mid-April.
Vehicle thieves hunted
MT Cars appointed as SsangYong dealer
Maserati strengthens its presence
62 | CarDealerMag.co.uk
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Around the world Dealer news from somewhere other than here
NETHERLANDS
BENTLEY Motors has reopened its showroom in the city of Leusden, about 30 miles east of Amsterdam. The premises have undergone an extensive upgrade and substantial investment. Robert Engstler, regional director, Bentley Europe, said: ‘Our customers will enter an exclusive world of unparalleled design, personalised service, automotive passion and unmatched attention to detail.’
AMERICA
AN intruder caught searching offices and desks at a car dealership in West Park, Florida, was shown the door – literally. CCTV footage showed the man – distinctively clad in a plastic poncho – going through various desks at a dealership called Benji Auto Sales. His work was interrupted when a maintenance worker heard the ‘ding’ of a cash register and instructed him to leave.
BRAZIL
CAR sales in Brazil are expected to fall for the fourth consecutive year during 2016. The gloomy prediction – not a great surprise in the recession-hit South American country – comes from dealership association Fenabrave. Brazil was, until recently, one of the world’s five biggest automotive markets but economic woes have deterred potential buyers.
AUSTRALIA
AUSTRALIANS will be able to bypass car dealerships and import cheaper new and nearly-new cars from Japan and the UK under changes recently announced by the federal government. Legal restrictions will be removed to allow drivers to buy a new car in this way once every two years, as long as the vehicle they want is no more than 12 months old and has no more than 500km on the odometer, reported the Guardian.
INDIA
LAST month, Car Dealer reported on the solid progress Audi is making in India – but it isn’t the only German manufacturer doing well there. Mercedes-Benz recently opened its 83rd Indian dealership, in Pune, a city in the state of Maharashtra. MercedesBenz India MD and CEO, Roland Folger, says the manufacturer will be inaugurating 10 new outlets across the country this year.
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FINANCE.
CrushWatch scheme helps finance firms reduce losses Uninsured vehicles are reunited with their legal owners under scheme
H
PI CrushWatch helped finance and leasing companies recover more than £67 million of uninsured vehicles in 2015. The initiative helps lenders both reduce their losses and contribute to road safety by reclaiming their assets from the police. Uninsured vehicles which would have been returned to the road, sold at auction or worse still, scrapped, are reunited with their legal owners under the scheme. Shockingly, this figure, which compares to £56 million in 2014, suggests that the number of cars that are being driven illegally on the UK’s roads is on the rise. Working under the umbrella of the Finance & Leasing Association’s vehicle recovery scheme and the National Police Chiefs’ Council, HPI CrushWatch from vehicle history check expert, HPI, assists law enforcement agencies with identifying if vehicles confiscated from uninsured drivers rightfully belong to a finance house. Prior to the introduction of the HPI
CrushWatch scheme, these vehicles would have been disposed of without the knowledge of finance houses. The latest figures reveal that the top five models most commonly recovered were the Vauxhall Astra, Ford Focus, Vauxhall Corsa, BMW 3 Series and Volkswagen Golf, with over 2,000 of these vehicles avoiding the possibility of the scrap heap. The Vauxhall Vectra entered the top ten for the first time, replacing the Ford Transit. Interestingly, owners of supercars are also found to be driving without
valid insurance. Lamborghini held five places in the ‘top ten recovered by value chart’, with two Aventadors and a Huracan LP taking the top three positions with a total value of £615,400. Three Ferraris also appeared in the top ten along with a Bentley Flying Spur and a Mercedes-Benz GT AMG. The Metropolitan Police alone reunited finance companies with £26.8 million worth of assets in 2015. Terry Hunt, director of frontline services at the Metropolitan Police, explains: ‘By clamping down on uninsured drivers, we are not only protecting legitimate motorists from the trauma of being involved in an accident with someone who won’t be able to provide any financial recompense, we are closing the net on organised criminals by denying them use of the road.’ Neil Hodson, deputy managing director of cap hpi, pictured, added: ‘The total value of the cars recovered really does illustrate the crucial role that HPI CrushWatch plays in the process of clamping down on uninsured drivers.’
John moves to Moneybarn for new managerial role MONEYBARN has appointed John Lay, right, to the newly created role of head of business development. He will be responsible for optimising and expanding existing business acquisition channels and developing new ones, as well as driving the growth agenda to increase new business volumes. Previously the commercial and sales director at Genworth Financial, Lay has more than 20 years’ experience in the financial services industry, specialising in business development, customer acquisition and channel strategy. He said of his new role: ‘I very much look forward to helping drive forward Moneybarn’s
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ambitious growth programme by building on existing channels, introducing new acquisition platforms and continuing Moneybarn’s heritage of service and product innovation.’ Shamus Hodgson, Moneybarn’s commercial director, said of the appointment: ‘We are delighted to welcome someone of John’s experience and calibre to the team. The head of business development role will be central to continuing the growth of our new business and further strengthening relationships with our distribution partners.’
IVENDI
Quick Quote ‘opens up a world of possibilities’ A MOTOR finance tool believed to be the fastest and easiest to use has been launched by iVendi. Quick Quote, which works on smartphones, tablets and PCs, only needs registration, mileage and a cash price to create quotes. The company believes that it could become an invaluable showroom tool, allowing dealer staff to quote on a car while the customer is looking at it or on a test drive. James Tew, chief executive at iVendi, said: ‘This is a fully-featured finance quoting tool that works with the dealer’s full range of finance products from their panel of lenders but is much, much simpler to use than anything else on the market. ‘Its portability – the fact that you can quote for the customer as they walk around the showroom looking at different vehicles – opens up a world of possibilities. You can underline the affordability of a car on the move. ‘Dealer staff can even propose via their phone or save quotes and other information to the central iVendi Platform.’ Quick Quote forms part of the new generation of the iVendi Platform. ‘The Platform is designed to manage all of a dealer’s motor finance activity. We are seeing some very exciting and thoughtful developments,’ added Tew.
IN ASSOCIATION WITH
Online reviews: Why it’s time to banish assumptions and fear A
t the start of 2016, we decided to focus some of our time on helping motor dealers with online marketing. During our investigations we visited a large number of motor dealers to ask their views on a specific piece of work my department was concentrating on. The results were inconclusive. But, if I offered to give you some marketing tools or advice for free that would sell you more vehicles, would you accept my offer? I asked a similar question to the dealers we visited and, to be honest, I was shocked to hear some of the responses. Some motor dealers were just not interested in
Ben
Garside
‘More than 90 per cent TIME IS of online consumers MONEY use online reviews in making their final buying decision’ the ideas and that’s fine. However, a high number of the motor dealers had put barriers up immediately, and the majority of those barriers were based on assumptions. For instance, a lot of the objections were just at the thought of trying something new. Others objected because of the thought of leaving another advertising medium (even when we hadn’t tabled that idea in the first place). Some dealers challenged having time to invest, and finally, a running theme was that there could be some negative responses on online media. All of these objections are based on assumptions, doubt and fear. This whole area was a great learning curve for me, someone who loves to try new things and
take risks. However, sitting back and reflecting on these areas provides me with some important discussion areas. Here, I would like to discuss ‘negative responses on online media’. This was in relation to having a Facebook page. Although I have found that many dealers are still of the opinion that any online reviews will be to the detriment of their business, this thinking is incorrect and needs changing as soon as possible in my eyes. Many studies have taken place over the past five years, and all have shown that the majority of consumers check online reviews during their decision-making process. Another thought process should be what happens if I don’t have an area for online reviews? The customer who wants to write a review cannot do so but still might tell their friends in the pub, at a football match or on the school run. Any of those options mean
Turn over page for more finance stories you’re in trouble, for several reasons. Firstly, you are not aware of your wins or failings. Secondly, you cannot change your behaviours or processes. Thirdly, you cannot respond and show other consumers that you want to make your customers happy. There are many more positive reasons than there are negative ones to having reviews online. More than 90 per cent of online consumers use online reviews in making their final buying decision. I’ll discuss the other areas in the following months, as they’re all of importance. My advice is get a Facebook page or a review page, set up a complaints procedure and treat your customers fairly. Then take the plunge, because if there is nowhere for consumers to review you, they may never even visit your dealership.
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 | 65
DEALFINDER.
FINANCE. YOUR ESSENTIAL GUIDE TO... THREE DOOR HATCHBACKS CITROEN DS3
MINI COOPER MINI’S iconic Cooper is now in its third generation since the model’s revival by parent company BMW in 2001. Offering a fun, stylish way to get around, the three-door hatch is currently offered on a four-year finance deal, with a 5.9 per cent APR and fixed interest rate. The offer is kicked off by a customer deposit of £2,277.91, which is bolstered by a dealer deposit contribution of £1,000. This is followed by 47 monthly payments of £179, coming to a total of £8,413. So far the driver would have paid £10,690.91. At the end of the finance term, should they wish to purchase the vehicle outright, a final payment of £6,056.90 will apply, along with an option-topurchase fee of £1. At the end of the four years, the customer would have paid £16,748.81, £1,123.81 more than the vehicle’s OTR price.
THE Citroen DS3 was first released by the French carmaker 2010. The latest model is using everything at its disposal to cement DS as a standalone brand. The supermini features latest-generation technology and pleasing dynamic driving. The DS 3 PureTech 110 S&S manual is now available on a three-year finance deal, with fixed interest and representative APR rates of 2.9 per cent. A customer payment of £2,914, and a dealer contribution of £500 combine to form the deposit of £3,414, which starts the deal. This is then followed by 36 monthly payments of £189, which come to £6,804, and take the total amount paid by the driver to £9,718. At the end of the finance term, an optional final payment of £7,064 is asked for. In total, the customer will pay £16,782 for the car, which is only £387 more than the vehicle’s OTR price.
Independent provider Alphera looks to future as it celebrates its past Tenth anniversary for firm enjoying double-digit growth
A
ward-winning independent finance provider Alphera Financial Services UK is celebrating its 10th anniversary this year with a programme of high-profile partner activities. Culminating in an invitation-only gala event at the end of this year, it will see Alphera deliver bespoke industry research, speak at renowned conferences and distribute engaging video and social media content – all as part of its commitment to further share and develop best practice with its dealer and broker partners. Spencer Halil, pictured, director of Alphera Financial Services UK, said: ‘This year is pivotal in our development. Celebrating 10 years in the UK, through recession and boom times, is a great achievement and we want to share our thanks with the partners who have been with
66 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave us during the past decade. However, we won’t just be celebrating past success, we also want to use this opportunity to look forward. We will be producing a comprehensive report into financing the car of the future, launching the project in late spring and delivering the final results at our endof-year birthday celebrations, so please do let us know if you would like to be involved. ‘We will also be investing in our operations across commercial finance, premium captives and product development in order to provide an even greater offering to our partners, whatever their needs. We have ambitious growth targets and look forward to an exciting and successful 12 months in 2016.’
Based in Farnborough, Hampshire, Alphera operates across the F&I sector with franchise dealers, independents and brokers for all marques except BMW, providing wholesale and retail finance packages and insurance products for new and used vehicles. Established in 2006 as part of the BMW Financial Services Group, it operates independently of the German car marque and is able to offer the best of both worlds. The financial backing and industry expertise of a premium manufacturer, combined with the agility and flexibility of being an independent finance provider, has seen Alphera enjoy double-digit growth for successive years. Dealers and brokers can get involved in the celebrations by visiting its website and following the activity via Alphera’s social media channels.
IN ASSOCIATION WITH
VOLKSWAGEN BEETLE THE Volkswagen Beetle has been a staple of motoring since it first hit the roads in 1938. A lot has changed since then, but one thing that has remained is the ‘Bug’s’ appeal as a cheap and cheerful family wagon. The German carmaker is currently offering its Beetle Hatch 1.2 TSI on a four-year finance deal with an APR of 6.7 per cent and a fixed interest rate of 6.8 per cent. A deposit of £4,415.05 is asked from the customer, which is then followed by 47 monthly payments of £169, coming to a total of £7,943. By this point the driver will have paid £12,358.05, and should they wish to purchase the vehicle outright, a final payment of £4,996.53 is due, plus a £10 option-to-purchase fee. In total, the customer would have paid £17,364.58 for the car, which is £2,104.58 more than if they had bought it outright, at £15,260.
FINANCE & LEASING ASSOCIATION
CLOSE BROTHERS
Point-of-sale market sees a substantial rise as 2016 gets under way
Ryan rises from underwriter to sales manager
NEW figures released from the Finance & Leasing Association show that the point-ofsale consumer new car finance market saw new business grow 20 per cent by value and 14 per cent by volume in January 2016, compared with the same month last year. The percentage of private new car sales financed by FLA members through dealerships reached 81.7 per cent in the 12 months to January, up from 81.4 per cent in the 12 months to December 2015. The point-of-sale consumer used car finance market also reported new business growth in January, of 15 per cent by value and 12 per cent by volume. Geraldine Kilkelly, head of research and chief economist at the FLA, said: These figures show a strong start to 2016. ‘The recent growth in this market has, to a large extent, mirrored a reduction in the use of unsecured personal loans, while also reflecting changing attitudes towards car ownership. The increase in personal contract purchase and hire purchase means that the majority of car finance taken out by consumers is secured against the car.’
CLOSE Brothers Motor Finance has appointed Ryan Bellinger as a sales manager at its branch in York, which supports customers and dealers throughout Yorkshire, Teesside, Tyneside and Cumbria. He joined the business in 2012 as an underwriter in the Dealer Support Unit then joined the sales team, initially as an account manager in Manchester before moving to the Hull and East Yorkshire area, where his dedication to helping local dealers expand their businesses was instrumental in transforming the region into one of the topperforming areas in the UK. James Broadhead, chief executive of Close Brothers Motor Finance, said: ‘Ryan has made a real difference to our network of dealers in the Hull and East Yorkshire region and his ambition and drive will be of great value to our largest branch in York.’
CarDealerMag.co.uk | 67
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BIG MIKE.
All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike
Why I’ve found myself dealing with the thick end of the market E
ver since I started out in this industry, I’ve been a regular at car auctions. The noise, the fumes, the butterflies in my stomach at the thrill of chasing down the bargains and outbidding my rivals, all of these give it an addictive buzz. And like all addictions, it’s one that’s very hard to give up. But, in the same way that I spend half my day puffing away on a little metal robot, it’s another of the pleasures in my life that circumstances mean I’m about to set aside. Unless there’s something really special in a sale that tugs at my emotional, rather than my business, sense, there’s really no point bothering with general sales any more. For sure, the theatre and the drama are still there. The tips and winks to the auctioneer, the adrenalin buzzing through my veins, the pure skill and risk aversion that comes with evaluating a used car in 30 seconds flat. It’ll never lose its appeal, except in one sense. And that, simply, is that buying cars at auction has become too expensive, at least for the little man. Historically, I’ve bought maybe five or six cars a month from my local big-name auction house. Up until last year, it was a good arrangement. I’d pay a buyer’s premium, but that was often very easily offset by the saving I’d make against book. By the time a car had left my forecourt, valeted, serviced and warranted (which all add cost, of course), I’d still struggle to not make at least a drink out of it. But recently, things have changed. The big-name houses are pandering more and more to the whims of the big dealer groups, who, in turn, are using their might to bring down the cost of entering cars into a sale. And that means they’ve loaded up the prices at the other end of the sausage machine. So, unless you’re deliberately after a dog’s dinner (after all, they don’t want to put the minicab companies off…), you’re now looking at paying a much higher buyer’s premium to get any purchases out the door. Spend £1,200, say, and you’re often paying as much as 50 per cent again just for the privilege of the auction house carrying out an HPI check and paying for the stamp to the DVLA. And that’s with a trade card. So who buys these cars, then? If a trader has to pay a stack-load of coin for the ‘exit’, it’s sure as hell not the private punter. At least not the private punter ready to spend more than £500. There remains, and always will be, a market for dishevelled old tat in the car trade’s dumping ground, after all…
Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...
For ‘quality’ stock, look no further than the big used car chains, who use their buying power to bring down the buyer’s premium, too. Whereas I save 15 per cent by being a regular auction house punter on 50-60 cars a year, they can save as much as 40 per cent by buying cars by the thousand. Money talks, clearly. It’s making life hard at the cut-throat end of the trade, though, as I can’t operate a business on part-exchanges alone. Simple economics suggest that for every car I substitute for a lower value px-er, the value and margin in my stock goes down. And I can’t even punt them out through the auctions any more, as nobody can afford to buy them… Nor can I, sadly, afford to buy decent quality cars in. I have, though, found the answer. It’s called illiteracy. No, I haven’t turned into a dribbling idiot with no real grasp of the English language (regular readers of this
‘Buying cars at auction is now too expensive, at least for the little man’ column may, of course, disagree), but I have started to do business with them. And to do so, I’ve had to join the 21st century. Just recently, I joined my local ‘Cars for Sale’ group on Facebook. It appears to be full of ‘lost keys’ and ‘lost V5s’, making cars ‘cheap for a quick sale’, but in among all the clearly stolen goods there are a few minters, being sold by people who think ‘Mek me an offa M8’ is actually a wellconstructed sentence. Bearing in mind their last sentence was probably spent in Winson Green, it’s probably still an improvement. But the great thing is, these people are often so thick that they can’t get any kind of two-way conversation going, meaning that the first person to turn up with a wad of twenties will probably get to drive away in whatever they’re selling, because they often either need the cash or, as is so symptomatic of non-working class Britain, simply can’t be arsed. Don’t get me wrong. You have to be careful, you have to trust your instincts, you have to be sure a car is kosher and deal with some pretty dodgy individuals in order to seal the deal. But you know what, that’s what auctions used to be like – innit M8?
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 | 69
FORECOURT. INTERIOR
PRACTICALITY
Unique metal pedals present a robust and high-quality appearance
Silver roof rails will appeal to go-anywhere outdoorsy types
Hyundai i20 Active
APPEARANCE
Reverse treatment of hexagonal grille in gloss black is eye-catching
Dave Brown tested the Hyundai i20 Active – a foray by the Korean manufacturer into the small crossover market. What did he think? WHAT IS IT? We certainly love our crossovers here in the UK – but while we’re attracted to their chunky, go-anywhere styling, not too many of us actually go offroad. That certainly seems to be the thinking behind the new Hyundai i20 Active, which the manufacturer can fairly state combines a new, rugged design with the space, style and quality of the i20 five-door. So, it’s small and smart, designed to appeal to a booming sector of the market – and it’s got a new downsized and turbocharged engine.
WHAT’S UNDER THE BONNET? The i20 Active is only available with Hyundai’s new three-cylinder 1.0-litre T-GDi 99bhp engine. The car offers reasonable performance with modest running costs and boasts combined fuel economy of up to 58.9mpg and CO2 emissions of just 110g/km. And the car has been designed to be fun to drive too – its three-cylinder unit features direct petrol injection and 70 | CarDealerMag.co.uk
a compact turbocharger matched with an electrical wastegate actuator, helping the engine and turbo work as efficiently together as possible.
WHAT’S THE SPEC LIKE? There’s certainly lots on offer. Key to the Active’s appeal will be its outdoorsy exterior appearance. External features include front and rear bumpers with integrated skid plates, circular fog lamps front and rear and a good-looking rear spoiler. There’s plenty inside to make life convenient and comfortable too, such as a DAB radio, parking sensors, cruise control and Bluetooth with voice recognition.
WHAT’S IT LIKE TO DRIVE? We thoroughly enjoyed testing the i20 Active on a range of Cotswold A and B roads. The engine is responsive and ready to do whatever’s required of it. There’s a bit more body roll than on the standard i20 and the suspension has
been firmed up a bit. The seats are comfortable and supportive, visibility is excellent, the tech is found easily to hand and the whole package feels very accomplished.
WHAT DO THE PRESS THINK? The Mirror said: ‘The i20 Active is a handy addition to Hyundai’s catalogue, but what the company really needs is a proper crossover that costs around the same money.’
WHAT DO WE THINK? The B-segment is a notoriously crowded part of the UK car market, and the i20 generally isn’t short of rivals – and well-established ones at that. But Hyundai’s profile is increasing all the time in the UK. It’s been lacking a crossover-based offering and this car could be just what the doctor ordered. It should do well for the brand – and you – if your customers want SUV looks but don’t want to spend the earth or actually drive over it.
THE KNOWLEDGE Model:
Hyundai i20 Active 1.0 T-GDi Price: £15,225 Engine: 1.0-litre, 3cyl petrol Power: 99bhp/171Nm Max speed: 109mph 0-60mph: 10.7 seconds MPG (comb’d): 58.9 Emissions: 110g/km
TARGET BUYERS: Active and possibly cost-conscious 20- and 30-somethings
THE RIVALS:
Kia Soul, Renault Captur, Suzuki Vitara
KEY SELLING POINTS: 1. Chunky crossover styling 2. Hyundai five-year warranty 3. Efficient new 1.0-litre engine
DEAL CLINCHER: Rugged good looks plus affordability
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CarDealerMag.co.uk | 71
FORECOURT. HEIGHT
Taller passengers may struggle to get comfy in the back of the DS 3
LIGHTS
LED running lights are standard on all models, bringing a fresh face to the DS 3
WHEELS
DS 3 Puretech
Higher-spec cars run on 17-inch wheels and road noise is raised as a result
With better interior materials and a more premium-looking exterior, is the latest DS 3 any good? Jack Evans tries it out WHAT IS IT? The latest DS 3 builds on the previous model’s reputation by adding more standard equipment and a more premium-looking exterior. Despite using a lot of the previous car’s architecture, it’s a heavily revised car featuring better interior materials and an updated range of engines. DS (which should be pronounced déesse, meaning goddess) is working hard to put its stamp on all its cars, which is why there’s such a heavily redesigned front end and more brand-aware styling touches, such as the logos in the headlamps.
WHAT’S UNDER THE BONNET? We tested the Puretech 130 engine, which is a first for the DS 3. This little three-cylinder unit manages to produce 128bhp and reach 60mph in 8.7 seconds, which isn’t bad for a small capacity engine. Economy is decent, at 62.8mpg combined, and emissions are respectable at 105g/ 72 | CarDealerMag.co.uk
km. Linked to a six-speed manual transmission, it does well – though diesel engines are offered for those looking for even better economy.
WHAT’S THE SPEC LIKE? With three core trim levels to choose from – Chic, Elegance and Prestige – there’s something for everyone. Even base trims benefit from air con and alloy wheels. Our Prestige trim had rear parking sensors and an upgraded stereo. There’s larger 17-inch alloys on all four corners, too. Our test car came in at a hefty £21,275, though, putting it perilously close to other more premium rivals.
WHAT’S IT LIKE TO DRIVE ? Really quite likeable. It’s not meant to be a ‘hot’ hatch – we’ll have to wait for the Performance model for that – so the handling is completely in line with what you’d expect from a little four-seater. There’s a touch of body roll in faster corners, though not enough to trouble the average
driver. The engine has enough power for town and motorway, though the steering does have a little trouble settling down when at higher speeds. The ride is just about spot on, while the gearshift’s action isn’t razor sharp but it’s far from the worst we’ve seen.
WHAT DO THE PRESS THINK? Auto Express said: ‘The DS 3 may be six years old, but it doesn’t feel remotely dated to drive, while the visual changes freshen up the exterior look and cabin design nicely.’
WHAT DO WE THINK? With this latest incarnation, it appears DS has done enough to put its own stamp on the car, bringing it more into line with rivals. Although it won’t be long before the DS 3 needs a complete redesign – its main layout has been in use for six years now – this refresh should be enough to bring it back into the public eye, right where it deserves to be.
THE KNOWLEDGE Model:
DS 3 Puretech 130 Prestige Price: £18,795 Engine: 3-cylinder turbocharged petrol Power: 128bhp 0-60mph: 8.7 seconds Max speed: 127mph MPG (comb’d): 62.8 Emissions: 105g/km
TARGET BUYERS: Those who see a car as a fashion item rather than a mode of transport
THE RIVALS: Mini Cooper, Fiat 500, Audi A1
KEY SELLING POINTS: 1. Decent levels of standard equipment 2. Wide range of engines to choose from 3. Choice of either hatchback or cabrio layouts
DEAL CLINCHER: Buyers have a huge amount of customisable options, which will help make a car truly theirs
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FORECOURT.
Mini Convertible S Nicholas Griebner, head of products for Mini UK, chats to Car Dealer about the new Mini Convertible How different would you say the latest model is to the previous one? I’ve been with Mini since the brand was relaunched in 2001 and so I’ve seen all three generations of the new Mini Convertible. I would say that the biggest step we made with this version is in terms of product substance and quality. This convertible that we’re launching in 2016 is very much based on the three-door hatch as in the past, but the current three-door hatch – which was launched in 2014 – has made a bigger step in terms of all of its features and its quality and substance. All hatchback Minis are built on the BMW UK1 platform, which is a platform we’ve had since 2014. UK1 is a German abbreviation for the B segment in the UK, and this new platform has allowed us to have the flexibility to offer the fivedoor Mini on a 7cm extended wheelbase. What problems did you address in the construction of the latest model? Well, I wouldn’t say we had any issues with the previous model, but what we looked at was customer feedback that we’ve received across the years, and we have improved every single area of the car. So, for instance, the Mini Convertible
now has far more practicability. Knee room has been improved by 4cm in the back and it has about 40 litres more boot room, which takes it to 215 litres with the roof closed – the same as the two-door hatch. The rollover hoops have also been fully integrated to improve visibility and give that nice clean side-line of the car. This design does not compromise at all in terms of safety, because as soon as certain parameters are met the pyrotechnics pop the hoops up, making sure that the occupants remain safe. Even if they pop up by accident you can reset the pyrotechnics, and hopefully that’s the smallest thing that has to be addressed. The key thing is for the occupants to be safe in case of an accident.
before market introduction, so we’d actually started development on the new convertible before the hatch was launched, and the hatch had been in development long before that.
Cabin noise levels were high in previous models. Have these been decreased? Yes they have. So the new platform too has led to the reduction of interior noise, not only in the hatch but also the convertible.
Obviously Mini is unique in the market. What would you say the biggest competitors for the convertible are? The convertible has a unique positioning because it is the only small, four-seater convertible, so I think conceptually the closest is the VW Beetle Cabriolet, but from my point of view the Mini Convertible is a car that is one of a kind and it is almost defining its segment.
How long went into developing the latest convertible? Typically, series development starts three years
Do you have any predictions on sales figures? Not yet, no. What I can say is that the Mini Convertible over the past 11 years has been the best-selling convertible in the UK, and with all the improvements in quality and substance and features we will hopefully keep it that way. It was entering UK showrooms in early March, with the first test drives towards the end of March. We’re very much looking forward to having the new convertible in the UK market just in time for the spring,
THE KNOWLEDGE
Model: Mini Cooper S Convertible Price: £22,430 Engine: 2-litre 4-cylinder turbo Power: 192bhp Max speed: 143mph 0-60mph: 7.0 seconds MPG (comb’d): 47.1 Emissions: 139g/km
TARGET BUYERS: Previously favoured by the ‘young and fun’, this should attract a more mature crowd
THE RIVALS:
VW Beetle Cabriolet, DS3 Cabrio
KEY SELLING POINTS: 1. Boot capacity is up by 25 per cent 2. Maximum Go-Kart feel in sport mode 3. Rev-matching function allows cornering without losing speed
DEAL CLINCHER:
JCW Chilli package will be available for those wanting a sportier look 74 | CarDealerMag.co.uk
on test
Laura Thomson has fun, fun, fun as she tries the new Mini WHAT IS IT? This is the third, and arguably most practical, generation of the Mini Cooper convertible. It is based on the same platform as the three-door hatch and shares the same drivetrains, and while the soft top may not be suited to the British climate, its timeless style and reliability will ensure that it remains in position as the UK’s top-selling convertible.
WHAT’S UNDER THE BONNET? It will be available with a variety of the German car-maker’s trusted drivetrains. We tested the frontwheel S convertible, which boasts a 192hp, two-litre four-cylinder turbo engine. Capable of 0 to 60mph acceleration in 7.0 seconds, the Cooper S tops out at a modest 143mph. Power is transferred to the road via a
six-speed manual transmission, although a six-speed Steptronic is also available.
WHAT’S THE SPEC LIKE? As with the previous model, the rear view is extremely limited when the roof is down and only improves marginally when the roof is up. However, the generous wing mirrors more than make up for this and a capable reversing camera ensures that all angles are covered. It retains the popular ‘Openometer’ – now called the ‘Always Open Timer’ – which measures for how long the roof has been open in the car’s lifetime, The interior quality has been improved over the previous guise, giving the cabin an overall premium feel. The most significant improvement, however, is the increase in space. Rear
LOOKS
The timeless style will help ensure that this convertible is a surefire winner
INSIDE
ENGINE
Sport mode makes things even more fun, thanks to the ‘Maximum Go-Kart feel’
There’s more of a premium feel plus extra headroom at the back (we mean when the roof is up!) and more boot capacity
Cooper S Convertible for size and enjoys its premium feel plus bigger boot space passengers are afforded more headroom, while the 25 per cent increase in boot capacity means that two small suitcases can fit comfortably side by side.
WHAT’S IT LIKE TO DRIVE? The Cooper S is significantly more powerful than its standard sibling, and definitely more fun. Flick it into Sport mode and it becomes even more so, with ‘Maximum Go-Kart feel’ flashing up on the centre console – a promise that doesn’t disappoint. The plentiful power is matched by the
car’s grip on the road, and the firm steering lends a sense of security when travelling at high speeds. Lift off the accelerator and not only will the rev-matching function kick in, but extra pops will come from the exhaust as well. The fabric roof can be raised or lowered at speeds of up to 18mph, and can sit in either an open, closed or semi-retracted position. The former wouldn’t be advised on motorways however, as despite the wind deflector – now much easier to install and remove than previously – the cabin is somewhat gusty and noisy.
WHAT DO THE PRESS THINK? AutoExpress says: ‘There’s a new champion for those who love the cheeky Mini image and want the feel of the wind in their hair. The convertible is more sophisticated than ever, with high-quality fittings, increased space, a better canvas roof and plenty of on-board technology. Mini hasn’t forgotten the fun factor, though.’
WHAT DO WE THINK? A sporty, capable soft top, the Mini Cooper S Convertible is a lot of fun both to drive and to look at. It may not win awards for its boot capacity in the B segment, but this has vastly improved on the previous model and now matches that of the three-door hatch. CarDealerMag.co.uk | 75
FORECOURT.
INSIDE
POWER
Wave goodbye to the old car’s sea of grey plastics and say hello to a stylish new look
Familiar 1.8-litre petrol and CVT gearbox remain but there’s greater economy
PLATFORM
The new TNGA platform means a lower centre of gravity and improved dynamics
Toyota Prius
Can the new Prius right the wrongs of the frumpy old car? Jon Reay heads to Spain to find out WHAT IS IT? If ever there was a car trying desperately to make some new friends it’s this one. The Prius has always found favour with owners for its exceedingly low running costs but it’s never been a car to stir your soul. With this fourth-generation one, though, Toyota is hoping that a new platform and some sportier design will lure in new customers.
WHAT’S UNDER THE BONNET? As before, you’re looking at a 1.8-litre petrol engine hooked up to an electric motor and a CVT gearbox. It’s not just lifted out of the old model and into the new one, though: the petrol engine, battery and electric motor have all been redesigned or heavily tweaked to make this the most efficient Prius yet – and that is sort of the point, after all. Spec the smaller 15-inch alloys and the Prius can hit a faintly ridiculous 94.1mpg on the combined cycle and 70g/km CO2, meaning no vehicle 76 | CarDealerMag.co.uk
tax and, perhaps more crucially, no congestion charge in London.
WHAT’S THE SPEC LIKE? Starting at £23,295, the Prius isn’t particularly cheap, but you do get plenty thrown in – adaptive cruise control, LED headlights, keyless entry, dual-zone climate control, a reversing camera and a touchscreen stereo with DAB are all standard. Hand over more cash and, depending on the trim level, you’ll find sat nav, an upgraded JBL speaker system, intelligent park assist and even a wireless phone charger. The big improvement is on interior quality. It all looks and feels pretty smart and is lifted pleasantly by white gloss bits – miles better than the sea of grey plastic in the old car.
WHAT’S IT LIKE TO DRIVE? Spoiler alert: it’s still definitely a Prius. The Atkinson cycle petrol engine hasn’t improved much in terms of soundtrack and the CVT
gearbox means it still drones away in front of you under hard acceleration. Aside from that, the Prius is actually pretty good to drive. The new platform is a bit of a revelation – a much lower centre of gravity and more natural driving position mean this Prius feels far less MPV-like.
WHAT DO THE PRESS THINK? Autocar said: ‘This is a Prius better in every way than its predecessors ... and borders on being fun to drive.’
WHAT DO WE THINK? Ultimately, the Prius still isn’t a car set up for sheer driver enjoyment – quelle surprise – but this newgeneration car isn’t half bad. We like the way it looks, both inside and out, and it’s arguably a more interesting ownership proposition than the average diesel hatchback, and a vast improvement on the old car. If you’re after an easyto-drive medium-sized car that sips fuel, the Prius is hard to beat.
THE KNOWLEDGE Model: Price: Engine:
Toyota Prius 1.8 Excel £27,450 1.8-litre petrol, electric motor Power: 121bhp (97bhp petrol, 71bhp electric) Torque: 142Nm petrol, 163Nm electric 0-60mph: 10.4 seconds Max speed: 112 MPG (Comb’d): 85.6 Emissions: 76g/km
TARGET BUYERS: Fleets and business customers, family-of-four Londoners
THE RIVALS: VW Golf Bluemotion, Ford Mondeo Hybrid, Hyundai Ioniq (late 2016)
KEY SELLING POINTS: 1. Much more impressive to drive than previous generation 2. Futuristic interior with plenty of toys 3. Low running costs and congestion charge exemption
DEAL CLINCHER: It’s impossible to get more mpg for less money
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Do you want to sell more cars?
Is your stock the most Are you pricing Do you regularly desirable locally? it correctly? re-price it?
“By learning more about i-Control I found I was quickly able to manage every part of the process from pricing accurately to presenting stock effectively online and managing our forecourt intelligently.� Chris Killen Georgesons
Learn more at trade.autotrader.co.uk/i-Control 78 | CarDealerMag.co.uk
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 | 79
FEATURE.
Tackling Tootle Can the new online sales portal really shake up the industry? LEON POULTNEY reports
I
t is fair to say that the internet has made the human race pretty lazy. We can no longer be bothered to pop to the library to help with the kids’ homework; Wikipedia has got that one covered. We rarely quiz friends for holiday recommendations, TripAdvisor sorts that out. And car dealers are currently experiencing a sharp decline in showroom footfall thanks to the wonders of the worldwide web. We’ve witnessed numerous online car sales portals spring up, from the reinvention and astonishing success of WeBuyAnyCar to offerings from the national newspapers, which recently muscled in on the action. But now, there’s a new site in town that promises to cut out the middleman and offer customers better prices for their cars, while dealers receive a better price on stock by avoiding the auctions. Tootle, which is headed up by former London auto trader Mike Bishop, claims to be the first online marketplace that allows dealers to source the used cars they want directly from private sellers. Cutting out the cost of auctions and the fees typically connected with car-buying services ensures the customer gets the fairest deal, while the dealer enjoys margins that haven’t been consumed by auction charges and multiple delivery costs. ‘I’ve been working on Tootle for the last 12 months,’ Mike explains. ‘It has taken a long time
HOW TOOTLE WORKS PRIVATE sellers head to tootle.co.uk and create their car profile, which requires punching in the reg, make and model and takes a few minutes. Sellers then provide photos of the car and its service history (which can be easily taken and uploaded using a smartphone) and details of any damage. Tootle will additionally supply an HPI report and MOT history on all vehicles. Dealers can view sellers’ profiles and make offers on cars they would like to purchase. These offers are relayed to the private sellers, who will then contact their preferred dealer directly to complete the sale. Tootle will charge a small commission fee to dealers for each car purchased through the service but the customers don’t pay a penny. 80 |80 CarDealerMag.co.uk | CarDealerMag.co.uk
to build up a network of garages and get the idea of the site off the ground. ‘Of course, we’ve had to make a few changes to the business model along the way.’ Tootle Mark 1, as Mike refers to it, allowed customers to choose whether the car was sold to other private buyers, for a fixed commission fee, or was offered to the dealer network. ‘The original model was jut too complicated,’ says Mike. ‘Selling a car privately meant we had to involve DEKRA, who offered a mobile vehicle inspection service and would thoroughly check the cars over. It meant the listings were extremely accurate and honest but it was expensive and time-consuming,’ he adds. As a result, Tootle were forced to take a large cut of the sales fee to pay for the DEKRA inspection and to fund classified adverts on sites such as AutoTrader and Motors.co.uk. ‘The original business was simply un-scalable,’ Mike admits. ‘We moved towards the dealer business because the market was just screaming for a service that gets stock directly to dealers. ‘We think we have the advantage over an outfit like WeBuyAnyCar because their business model knocks around 15 per cent off the initial agreed price and then they charge a set fee on top of that. We offer a fair price to the customer in the first place. ‘The dealer also benefits because the logistical costs involved in transporting a vehicle from the seller, to an auction and then to a dealer really add up. We cut this out.’ Despite the lure of savings and increased stock availability, not all industry experts are keen on Tootle’s business model and particularly the subsequent message that has appeared in
recent marketing material. A recent press release sent out by Tootle’s PR firm stated that 61 per cent of people ‘dread the thought of selling their car’ and ‘over a third of people fear being ripped off when selling their car’. Al Taylor, Tootle CEO, is also quoted in the release, saying: ‘The prices offered by dealers on a car can vary dramatically depending how desirable that particular model is to their customer base – and it’s this inconsistency in pricing that can make consumers feel like they’re being ripped off.’ It’s not exactly the best way of attracting prospective custom and some dealers have been
Tootle boss, Mike Bishop
EXAMPLE SALE VIA AUCTION 1. Customer gets £8,000 through partex or car buying service
2. Car buying service or part-ex dealer takes £550 margin
£
3. Car auction takes £350 margin
4. Dealer buys from auction for £8,900 plus delivery
‘I’m sick of online companies peddling the perception that selling a car in this manner is best for the consumer.’ Alexis Cassey, Prestige Diesels, Portsmouth
thoroughly aggrieved by the message. ‘I’m sick of online companies peddling the perception that selling a car in this manner is the best for the consumer,’ explains Alexis Cassey, partner at Prestige Diesels in Portsmouth and one of Car Dealer’s 150 most influential dealers on Twitter. ‘Stating that dealers are ripping off customers is dragging us back into an era that many modern car sales businesses have been working so hard to move away from. ‘You just can’t be a bad or untrustworthy dealer in this day and age – you have to earn the customer’s trust to be successful. ‘We need the part-exchanges from the customers, we want to give them a fair price because it saves us from going to an auction and it protects us from buying fees.’ However, not all customers are looking to partexchange and in today’s economic climate it is
not uncommon for families to part with a second vehicle in order to raise some vital funds or an expecting parent to sell a soon-to-be superfluous sports car. ‘There are always going to be people that don’t like what we’re doing,’ explains Mike Bishop. ‘But we’re not here to take away part-exchange opportunities, we are simply offering dealers a chance to buy a car for a better price and customers a quick and easy way to get rid of a car. ‘Plus, the part-exchange process can be an issue for dealers. They may not want the customer’s vehicle but they want the custom, so they take stock they don’t really need and make little or no profit,’ he adds. Whatever your opinion on the subject, it is clear that a greater proportion of custom is turning to the internet to buy and sell cars. Bishop believes that modern buyers have lost the ability to negotiate and want a hassle-free
method of buying and selling. ‘Footfall in main dealers has dropped by around 50 per cent in the last eight years,’ he explains. ‘People are now much happier to buy online and this trend is slowly creeping into selling.’ As a result, dealers are finding it tough. ‘I honestly think that we could see the death of the independent dealer in the very near future,’ explains Alexis Cassey. ‘We’re getting squeezed from every angle and for a little company like us to do things right, it directly impacts our profits. If we choose to put two new tyres on a car, it might mean we don’t get paid that week. ‘We need to start painting a positive light on the car industry and change the negative perception of dealers that isn’t helped by Tootle and their press release. Not all customers want an online service and some need the personal touch that we provide,’ she adds.
EXAMPLE SALE VIA TOOTLE
5. Dealer pays £900 more than the seller receives (plus delivery to dealership)
1. Customer gets £8,400 by selling through Tootle
2. Tootle takes £150 margin
3. Dealer payes £8,550 by buying through Tootle
4. Dealer saves
£350 verus buying from auction. Seller gets £400 more
CarDealerMag.co.uk | 81
FOCUS ON.
Top technology
Expertise and support to make your business better The companies represented on the following pages are all ideally placed to help you in future
T
he way in which car dealers and their customers interact with each other has changed for ever – thanks largely to the internet, of course. And that doesn’t just apply to car buying. Think of almost anything you might want to purchase – and you can do it at the click of a button, 24 hours a day, seven days a week. In many ways the old nine-to-five trading hours are dead in the water – and that’s because customers expect to be able to communicate with you whenever it suits them, and not the other way around. In other words, they are using technology to its best advantage – and you can too, with the help of the experts featured on the following pages. First of all, we talk to the guys at Reef Business Systems. The company could become an invaluable ally of yours in terms of getting deals over the line and overcoming any obstacles or problems that stand in the way of transactions going through. And it can do so quickly, too, without the need for any delay that might lead to a deal hitting the buffers. Reef Business Systems owner Garry Cuthbert told us: ‘Our specialism is very different to other players out there – we have a much more in-depth involvement with our dealers.’ Next up is BCA, who feature regularly within the pages of Car Dealer of course, with our regular contribution from Tim Henstock and the monthly Taking Stock feature, which this
by DAVE BROWN @CarDealerDave
month can be found on p99. We take a close look at BCA’s Dealer Pro product which means that dealers can quickly and easily manage the part-exchange process, share information within dealership groups in real time and ensure profit opportunities are maximised every step of the way. Clever stuff! DCML are next on the list – and can offer dealers the chance to get hold of some precious ‘sales gold dust’ – thanks to the way things are changing in the area of unaccompanied test drives. It’s all thanks to telematics, and MD Vince Powell tells us: ‘Let’s say a customer test-drives a vehicle predominantly on A roads and at low average speeds. This is gold-dust for a salesperson
who now knows comfort and fuel economy are important priorities, along with practicality. ‘Alternatively, if average speeds are much higher and the customer is driving more aggressively, performance and driving pleasure are more likely to be deciding factors.’ As the march of technology continues, paperless businesses are finally becoming a reality and Gemini Business Systems are experts in this area. They have a superb new system called TechMate – and it really is a vision of the future – find out more on p89. Our final featured supplier is Bluesky Interactive and the multiple Car Dealer Power award winner builds bespoke websites for its clients based on its own in-house-developed platform. You can be sure that your site will be tailored perfectly to your brand and will be unique – not an off-the-shelf template.
FEATURED SUPPLIERS Reef
BCA
DCML
Gemini
Bluesky
Take advantage of a clever system that can overcome any obstacles standing in the way of deals going ahead.
Learn about Dealer Pro, a cloud-based appraisal and valuations programme that helps things run smoothly.
The unaccompanied test drive landscape is changing – and dealers can use this to learn about their customers and close sales.
TechMate is the latest innovation from Gemini Systems that delivers incremental efficiencies and technological benefits.
The cornerstone of any successful dealership is a strong and effective website. So contact the experts at Bluesky Interactive!
P83
P85
P87
P89
P91
82 | CarDealerMag.co.uk
Solving problems, saving time REEF BUSINESS SYSTEMS
T
here’s a well-known saying on the website of Reef Business Systems: ‘The easiest car to sell the customer is the one they want to buy.’ And with the software and technical support provided by the Harrogate-based company helping your dealership to succeed, that’s exactly what you’ll be able to do. Reef Business Systems is already well-established and looking to attract new business partners in 2016. The company’s main focus is on transaction management and owner Garry Cuthbert explained: ‘Some people like to call it deal optimising – and whilst the expression has been around in the industry for a lot of years, not many people know what it really means. ‘When I’m asked what our software does, I try to explain it on the basis that traditionally, all the different calculations that take place to work out the
W: myreef.co.uk
T: 0845 017 8266
best way of putting a deal together in a dealership can take significant amounts of time but our software speeds up that process. ‘If a customer wants to buy a car based on the deal our software puts together, it produces all the paperwork necessary with the minimum of fuss. ‘But if there’s a problem, we can overcome that by suggesting alternatives. The system can overcome obstacles that might otherwise have prevented a deal going ahead. ‘The key feature here is that it can do so immediately, without the customer having to leave the dealership, or, if they’re on the phone, without hanging up and waiting to be called back.’ That instant way of doing business is clearly a great feature of the offer from Reef Business Systems – and it’s a point Cuthbert is keen to get across to dealers of all shapes and sizes.
‘When they see that our emphasis is being able to do business with people there and then, they get a very different perspective on our operation,’ he said. ‘Our specialism is very different to other players out there – and we have a much more in-depth involvement with our dealers within the sales process because the transaction and the sales process are inextricably linked together.’ Beyond its transaction management function, Reef Business Systems captures customers’ data for the purposes of CRM. And Reef’s software puts all the information that would otherwise be scattered around, on one screen – ‘some of it might be on an F&I machine; some might be on a DMS; we pull everything together,’ explained Cuthbert. ‘We look at the whole transaction and manage it from one place. It saves loads of time, and, as we know, time is money.’
A Wolf in Sheep’s Clothing Customer: Vehicle: R33FBS
Mr Jamie Pearson - 0345 017 8266 Audi A3 Sportback 1.2 TFSi SE 5Dr VAT: M Date 1st Reg: 11/10/2012 DIS:
Vehicle Retail Price:
12704.36
Part Ex Allowance:
5600.00
Settlement:
3194.68
Extras & Warranty:
928.00
GAP & Insurance:
189.00
Monthly Payment:
278.97
Weekly Equivalent:
64.38
Finance Term: APR (%)
9.90
Total Cash Input:
Optimiser
Final Payment: Vehicle
35
Extras
278.97 3750.00 Mfr. Bonus
OTR: 28
£13821.47
0845 017 8266
Amount Financed: Representative APR (%):
£11,137.18
Current VAT Rate (%): VAT Liability:
20.0 £428.74
Vehicle Profit:
£1037.05
9.9
Accessories Profit:
£247.50
Warranty Profit:
£205.50
GAP & Insurance Profit:
£98.27
Intro Commission:
£556.86
Finance Contribution:
£0.00
Dealer Contribution:
£0.00
House Charge / PDI:
£25.00
TOTAL DEALER PROFIT:
£2120.18
Reef Finance 9.9% APR (PCP) Annual Mileage:
Max Profit
powered by
9000
Save & Exit
REEF
telephone: 0345 0178266 info@reefbs.com www.reefbs.com CarDealerMag.co.uk | 83
BCA Dealer Pro Increase retail sales and profit retention
•
Ensures the delivery of a consistent and professional part exchange process
•
Provides instant visibility of all vehicle details, including condition, images, value and location
•
Includes inventory management tool to manage used vehicles within group
•
Delivers real-time vehicle valuations from Europe’s largest auction network with industry figures
•
Integrates seamlessly with existing dealer sales systems and processes
•
Helps to increase retail sales and profit retention
bca.co.uk/dealerpro 84 | CarDealerMag.co.uk
FOCUS ON.
Top technology
Streamlining the part-ex process BCA
W: british-car-auctions.co.uk T: 0344 875 3480
D
ealer Pro is a cloud-based appraisal and valuation package from BCA. Designed to be easy to use, the iPadready application means that dealers can quickly and easily manage the part-exchange process, share information within dealer groups in real time and ensure profit opportunities are maximised at every step of the process. With fewer customers stepping through dealership doors these days, it’s important for dealers to be able to offer a quick and efficient valuation process on a part-exchange vehicle. Guy Thomas, head of product development at BCA, told us: ‘It’s very important that dealers present to their customers a professional, transparent and trustworthy process when managing the part-exchange process. Dealer Pro is designed to help dealers achieve those goals.’ The entire system is there to help dealers provide the smoothest possible service. As Thomas puts it: ‘It’s important to make sure that customers think and appreciate that they are getting the best value for their car. There’s a huge amount of competition in pricing, and customers are walking into dealerships far better armed than they ever have been, too.’ Thomas comments: ‘Going back to when I was in dealerships around 20 years ago, we used pieces of paper to appraise cars – and it’s fair to say quite a lot of dealers still do. With this in mind, it’s important for them to see that the whole process can be quickly and effectively streamlined with the BCA Dealer Pro application.’ Dealer Pro is intuitive and simple to use, with users given a step-through online tutorial before use. However, for those who are used to an iPad, the system will come as second nature. Using Dealer Pro, sales staff can efficiently appraise incoming part-exchange vehicles, creating a packet of data that can be shared within the dealership or wider group. The application utilises the iPad camera, meaning users can instantly relay pictures back to the rest of the group. Once the car’s information is entered into the system, BCA Dealer Pro generates condition-adjusted market values for the vehicle, allowing the sales team to relay accurate and dependable prices back to the customer.
‘‘
For those cars that don’t fit the retail profile, vehicle details can be sent direct for online cataloguing in Auction View, BCA’s award-winning stock locator. The system is constantly monitored by a support team, who research with customers to ensure Dealer Pro is delivering consistent data. The team at BCA check with dealers as well as on forums as to any aspects of the system that could be improved or changed. These changes can then be made and are sent as automatic updates directly through the app. As well as making the customer experience as fluid and transparent as possible, Dealer Pro is there to make a sales person’s job more straightforward. Thomas explains: ‘In reality, what are we doing this for? The real reason for Dealer Pro, as far as I’m concerned, is to help dealers sell cars.’ With cars entered into a dealer-to-dealer stock system, the application ensures that every possible retail profit opportunity from each part-exchange vehicle is explored. Should another dealership
There’s a huge amount of competition in pricing, and customers are walking into dealerships far better armed than they ever have been.
within the group spot a car that has been uploaded to Dealer Pro, it can get in touch and offer a deal – all in real time. This means that while the customer is still in the building, two deals can take place. The customer gets a fair price for their car, and the resulting nonretail part exchange is quickly and efficiently traded with another dealership that can sell it. Dealer Pro from BCA not only makes dealers’ lives easier it also helps them retain customers by offering a quick and easy appraisal service. Already rolling out to dealerships across Europe, it is quickly and easily downloaded direct from the App Store, and includes integrated tutorials for new users. BCA Dealer Pro is there to make the whole process of appraising a car more stress-free, and as Thomas puts it: ‘What the system does is help the dealer retail a car. From a BCA perspective it helps us and it helps the dealers. It’s a win-win process.’ Enough said. by Jack Evans (@jackrober) CarDealerMag.co.uk | 85
dcml.co.uk
Vision Control Protection DCM Connected has blended its fleet management and insurance solution with leading edge telematics, DVLA licence checking and intelligent anti-fraud checks.
To try DCM Connected in your vehicles free of charge, contact us. 86 | CarDealerMag.co.uk
08444 152 400 info@dcml.co.uk
FOCUS ON.
Top technology
Get hold of some sales gold dust DCML
W: dcml.co.uk T: 08444 152 400 A skilled sales executive will be more than capable of using test-drive information to help secure a deal
D
ealerships are fast adopting new technology – and it looks as though the test-drive process will be the next area to benefit from this. It’s becoming more and more clear that the unaccompanied test-drive landscape is shifting. Current trends in emerging technology are shaping the direction of the sales process and changing how dealers operate. The vast majority of dealers still consider the test-drive process to be a vital factor in securing a sale – the rise of special test-drive programs and extended trials is proof. However, DCML says that the modern test-drive process will need to change even more. Test drives of the future will begin to involve a comprehensive debrief of the customer’s test drive experience even before they return the vehicle. Dealership sales staff, through integrated telematics, will routinely be provided with comprehensive information about the customer’s test drive to help close sales. Vince Powell, managing director of DCML Ltd, said: ‘The provision of test drives has been much the same for years but it is now undergoing something of a revolution. Dealerships have more technology at their disposal now than ever before.’
DCML, known for its insurance and fleet management solutions, has spent years perfecting a product that makes the lives of dealer fleet managers easier. DCM Connected is their new offering, which blends its existing solutions with leading-edge telematics, live DVLA licence checking and intelligent anti-fraud checks to offer a complete demonstrator/courtesy solution. How telematics can boost test drive conversion rates The predicted revolution has already begun with a number of intelligent test-drive schemes running with DCML. Reports indicate that sales staff are now equipped with the relevant information to tailor their closing sales pitch, following an unaccompanied test drive. Let’s say a customer uses the vehicle predominantly on A-roads and at a low average speed. This is gold dust for a salesperson who now knows comfort and fuel economy are important priorities, along with practicality. Alternatively, if average speeds are much higher and the customer is driving more aggressively, performance and driving pleasure are more likely to be deciding factors.
‘UNACCOMPANIED test-drive programs and extended trials represent a significant investment for any dealer,’ explained Vince Powell. ‘By having a full understanding of what the customer used the vehicle for and how it was driven, the dealer is able to tailor their sales approach ready for the vehicle’s return.’ The sophisticated tool monitors and records the driving traits of every demonstrator or courtesy car driver – measuring acceleration, braking, rpm and speeding, allowing dealerships to understand their customers and manage any associated risks. Looking after business-critical assets like a dealership’s fleet of cars is imperative. The advanced features of DCM Connected also include driver behavioural profiling and accident reconstruction, which almost eliminates potentially-damaging liability disputes by analysing the moments just before, during and after an accident. ‘Advanced features like driver profiling, fault detection and accident reconstruction give fleet managers even more visibility,’ Powell said. ‘This visibility is crucial. ‘It allows you to pre-empt potential mechanical issues, highlight drivers that pose a risk, and clarify any liability disputes.’ The system also integrates DCML’s day rate insurance solution, and does so with one of the biggest players in the market. DCML has worked in partnership with Aviva since 2000. Modern dealerships are embracing technology more rapidly than ever in an attempt to answer the age-old questions: how do I sell more and reduce costs? The answer lies in using the right technology to maximise existing opportunities.
CarDealerMag.co.uk | 87
Paperless isn’t the future of aftersales. It’s now!
...introducing
Customer ‘Meet & Greet’ with full booking details Digital job card with customer signature capture Mobile technician clocking system Photo and video capture Full integration with Gemini Systems’ class leading eVHC and Dealer Management System +44 (0)1522 698911 88 | CarDealerMag.co.uk
enquiries@gemini-systems.co.uk
www.gemini-systems.co.uk
FOCUS ON.
Top technology
It’s time to go paperless GEMINI
W: gemini-systems.co.uk T: 01522 698911
Y
ou might argue that dealers’ interaction with customers is slowly declining. With the digital age gradually taking over the car-buying and vehicle-servicing process and the internet allowing potential buyers to research, buy and sell cars or book them into a workshop from the comfort of their sofa, there’s no denying the fact that many dealers will see the development of Android apps as an enemy. But they’re actually your friends. Take the latest innovation from Gemini Systems as an example. Christened TechMate, the new system is an Android-based app which is fully integrated with the Dealer Management System (DMS) and delivers incremental efficiencies and technological benefits over traditional workshop clocking solutions, making the paperless workshop a firm reality. ‘TechMate really is our vision of the future,’ said Jon Skinner, Director of Business Development. ‘The days when workshop technicians need to wade through an endless paper-trail to file jobs or analyse bookings are long gone, improving efficiency and management. ‘All staff members can use the static clock function, which can utilise fingerprint technology for security and accuracy, to clock in when arriving to work and clock out when leaving the business.’ Using the new app, technicians use a digital job card to clock on and off the operations of a job sheet with a tap of the screen. Other productive and non-productive tasks, such as road tests, workshop clean-ups and breaks are also handled on the tablet. Workshop control and service advisers can also assign operations to a technician, with start times and durations, presenting a clear order of work to the staff. Technicians can also view and clock on to unassigned jobs by simply entering either a registration or job number.
‘TechMate allows its users to take photos and add notes to each operation,’ said Jon Skinner. These can be sent instantly to the service adviser as a pop-up, creating seamless and effective communication between the workshop and service reception.’ Digitalising workshops not only saves on
paperwork, it also saves a great deal of time when it comes to updating vehicle job details, enabling technicians to work more efficiently and get to work on vehicle repairs immediately. ‘Helping to cut time expenditure, emerging work and eVHC upsells can be added to a repair order by the service advisers, these are instantly visible on the technician’s tablet, allowing them to start work as soon as the work is authorised, rather than waiting for another job card to be printed or produced,’ said Skinner. The use of mobile 3G and 4G networks allows technicians to work remotely while still giving workshop control full visibility of the technicians clocking status and progress for each job and any additional work lines required can be sent instantly to their device. ‘The workshop controller view allows for quick reallocation of jobs to other technicians via drag and drop, as well as an area displaying live KPI’s such as efficiencies, productivity and any work that is over-running along with other management information,’ said Skinner. In terms of working with the customers, the app comes in handy there, too, with its meet and greet feature. The service advisor view allows for a checking-in process, which can happen with the customer away from the desk. The customer can be walked around their vehicle checking fuel level, mileage and recording any damage directly on the tablet. The customer contact information can be recorded or confirmed and the customer can sign the digital job sheet to agree the state of the vehicle and confirm the work. Skinner added: ‘Everything is handled real-time creating a seamless and efficient flow of work and communication between service reception and the workshop. We have designed the TechMate system to be as easy to use as possible while still featuring the very latest technology to bring advanced features and functionality to workshops.’ by Sophie Williamson-Stothert (@1Sophie_W)
CarDealerMag.co.uk | 89
AUTOCHART LEAD PROFILING
FINANCE INTEGRATION TYRES
ONLINE DEPOSITS
CAREERS RESPONSIVE WEBSITES
DYNAMIC NUMBERS
OFFER DISTRIBUTION
DATA
Bespoke Dealer Websites
Cutting-edge Technology & Unique Design
LIFESTYLE SEARCH
ECRM
360° IMAGES LMS SOCIAL WALLS
CAP VALUATIONS
0845 415 4853
www.blueskyinteractive.co.uk 90 | CarDealerMag.co.uk
FOCUS ON.
Top technology
Ensuring websites do the business BLUESKY INTERACTIVE
W: blueskyinteractive.co.uk T: 0845 415 4853
W
hatever your position on technology in the workplace is, there’s one thing no business can do without these days: a strong website. That’s where Bluesky Interactive comes in. The Warwickshire-based company, which also has offices in Sheffield and Burgess Hill, builds completely bespoke websites for its clients based on its own in-house-developed COG Platform, ensuring that your site is tailored to your brand and unique, rather than a simple template. As part of its commitment to bringing the functionality that dealers want to their websites, Bluesky conducted ‘The Big Dealer Survey’ earlier this year, speaking to dealers across the board – not just Bluesky clients – about what technology they’re using and what they’d like to use in 2016. 2015 was the year of the responsive website. Although Bluesky’s survey reveals that eight per cent of dealers still report having only a desktop website, more than half of all dealer traffic is on mobile devices. Responsive websites, which detect the device the user is browsing with and adapt their layout accordingly so that it is optimised for the device, are increasingly vital then, and nearly 70 per cent of the dealers replying reported having a fully responsive website. So what of 2016? Bluesky thinks that the most important move will be the ‘omnichannel’ experience. This builds on the ethos of the responsive website – giving you the same functionality whether you’re on mobile, tablet or desktop – and merges it into the real world. By creating a customer profile, collecting data on the kinds of cars they are viewing and shortlisting and
attaching it to an identifier (an e-mail address or even just a customer name), potential buyers can have the same interactions in the showroom or on the forecourt as they do on their computers. Bluesky’s Autochart integration has this capacity, so when the customer arrives at a dealer website their profile is already being built. When they enter the showroom, the dealer need only access this profile to know what cars the customer is interested in, so neither needs to start their interactions from scratch. Although Bluesky’s own numbers suggest that three-quarters of people wouldn’t consider buying a car unless it was in person, the virtualisation of the showroom is increasingly important too. One third of dealers surveyed reported that their sales team used tablet devices in the showroom, right down to tablets by the cars displaying vital information. Another of Bluesky’s products, COGcast, can be used by dealers to find pertinent stock even across a number of sites and send them directly to a customer’s mobile phone. This also has out-of-hours implications – a customer can simply send a text containing the car’s registration plate to a specified phone number and receive a text back with all of the car’s details. Indeed, out-of-hours is an important function for many customers, who may be looking for cars
WINNING WAYS ARE PAYING OFF Bluesky Interactive is so well thought of in the industry that it was a previous award winner at the annual Car Dealer Power awards – the only industry awards voted for by car dealers themselves. Bluesky took home the award for Best Web Design for Franchises and the ‘Extra Mile’ award, open to any company in any category that goes beyond its clients’ expectations. The Drum Independent Agency Census puts it as the top-rated agency of its size for client rating. outside their normal working hours – and yours! Live chat may be something particularly useful, too, and this is something that dealers can outsource without having to increase their resources or have staff available 24/7. A strong website then is no longer just about a flashy online presence to show to customers, but a complete lead-to-sale component of the car dealer itself – and Bluesky’s software helps to keep you at that leading edge. [CD] by Andrew Evans (@snavEwerdnA) CarDealerMag.co.uk | 91
FOCUS ON.
Autovolo
Unique trading approach AUTOVOLO
W: autovolo.co.uk E: dealers@autovolo.co.uk
A
utovolo was established in July 2013 and launched at the end of August 2015. It is privately owned and run, with a management team that has more than 30 years of experience in creating successful businesses. Autovolo’s approach is to be very different from the rest of the other online digital providers that have come to market, thanks to its unique marketing plan, which will be looking to drive more visitors to its website, which in turn should lead to more inquiries for its dealers who are displaying content. Autovolo will be building a brand presence with a very strong consumer offering to advertise online with it, driven by ongoing promotional pricing that will be made available to the motorist in everyday locations that they frequent on a daily and weekly basis. An example of this unique approach is the recent announcement that it secured a partnership agreement with Waves car wash across the UK, which is the exclusive partner to Tesco and cleans more than 3.5 million cars a year across its 240 locations around the UK. Each car will get an Autovolo-branded air freshener, paper mats and a promotional discount voucher for the private seller to use when advertising their car for sale on Autovolo. The car washes are located within the supermarket car parks, which attract around five million shoppers a week, so it is a massive opportunity for the brand to be seen and get recognised on a regular basis, and over time when the motorist is in the market to replace their car then the Autovolo brand should be the one to consider visiting and using. This is the first of the key partnership agreements to be introduced and there are several others being worked on and will be announced over the coming months, which will increase customer traffic to their website. Supporting all of this offline activity, the company is investing heavily in both outdoor and online marketing. You can see some examples of our activity on these pages: n Bus rear advertising across the UK n 48 sheet and digital billboard campaigns n Six-sheet street panels 92 | CarDealerMag.co.uk
is proving a massive hit The highlight of the advertising activity so far has to be the use of the new digital advertising screens (pictured) in Manchester via JC Decaux. These state-of-the-art electronic billboards really add some credibility to the development of the brand and there will be more campaigns around the UK as the company continues to develop its presence From a dealer/trade perspective Autovolo is a relatively new and unknown name to many in the industry but we are confident that this will change over time as people begin to see the name and news stories appearing around our development. The company has appointed Frank PR to help it drive forward and increase its awareness with both trade and consumers alike. So far, the company has been developing its relationship with a number of companies such as GForces, Bluesky, Spidersnet and several others by putting in place the backend systems required in order to display the dealers’ stock. It offers dealers a choice of three low-cost monthly packages that start from under £1 a day for featuring up to 25 cars per month. Dealers get full log-in access to their own personalised dashboard through the portal, where they can manage their stock and also monitor the activity and performance on their adverts. Another nice feature and one that is unique is that the dealer is given access to purchase stock through the platform that is being sold by the private sellers. So far, around 80 per cent of private sellers have opted to receive offers from local dealers for the purchase of their vehicle when listing their car for sale. When the private seller selects this option, their car will appear on the dealer dashboard under “view cars available for offer”, which can then be priced and you submit your best offer to the seller. If the offer is accepted, they will disclose their contact details directly and arrange to finalise the deal. Buying in just one car at an advantageous
price and saving you money from buying at auction could pay for your whole 12 months’ advertising with Autovolo! The platform is fully HTML-responsive, works across mobile and tablet and has been developed in-house, and there are a number of new features and pieces of functionality to be unveiled during 2016 that will make the user experience even better. The expansion continues with the introduction of commercial vehicles/vans to be featured, and other categories will follow. The site offers users a clear and easy navigation process and it has some unique features – the main one is being able to search for multiple makes and models all at the same time for a more efficient browsing experience, which no other competitor offers currently. Autovolo visited CDX15 last year and was
impressed and decided then that this would be a great event to be involved with, and it is looking forward to being part of CDX16 to meet and develop new partnership agreements. In addition to exhibiting at the event in May, the company has also taken the exclusive sponsorship package for hosting the pre-event dinner at Whittlesbury Hall, which is a byinvitation-only event. So, with more than 100,000 cars now available via around 2,000 dealers and all achieved within six months of going live, the future is looking bright and Autovolo welcomes all dealers who are looking for value-for-money exposure and working with a growing brand that has a different approach to generating business. For further information you can make contact via dealers@autovolo.co.uk [CD]
CarDealerMag.co.uk | 93
FOCUS ON.
Autocashback
Customers love cashback! AUTOCASHBACK
W
ith customers being smarter about which deals they choose, wouldn’t it be great to provide a cashback opportunity of £1,000 to £10,000 on each car sold but at a tiny cost to you, the dealer, of just five per cent? Autocashback does just that and, as can be seen from promoter testimonials on their site, the promotion can double inquiries and sales for participating dealers in a matter of weeks. If you require this kind of service, to help boost sales, then Autocashback is the service you need. After more than 23 years in the cashback business, Autocashback is the first automotive arm of the Charter Trust, and dealership consultant Adrian Roman said: ‘We’ve used this promotion before with Klaussner, formerly the world’s largest furniture company, and we doubled their sales within a matter of weeks, which is quite a feat with their 50 superstores, and also tripled their sales in one August bank holiday weekend.’ The Autocashback service offers each customer the opportunity to receive a pre-agreed amount (between £1,000 and £10,000) back, at a tiny cost to the participating dealer. All the customer has to do is complete a short customer survey, and multi-choice questionnaire on a general motoring topic to win the agreed cashback amount. There is a master list that the customer needs to match in order to unlock the cash amount, with the list order provided by PromoVeritas, the UK’s leading promotional verification service. Each customer submits a free entry to the displayed questionnaire every day until
94 | CarDealerMag.co.uk
W: autocashback.uk they get a match, or stop. It’s that simple. Every received entry attracts a reply from Autocashback confirming how many correct answers they gave, so they always know how close they are to receiving their money back. Roman added: ‘There is nothing to stop anyone continuing to submit entries until such time that they get a match. Could be today, tomorrow, whenever, but if they stop, then they lose the opportunity.’ As a dealer, there is unlimited use of the cashback promotion, which can be used as a ‘lead generator’ and as a way to close the deal. The results from the customer survey can be used as an advertising tool in brochures and online.
TRY BEFORE YOU BUY You don’t even have to commit straightaway, there is a 30-day trial before you choose to stay involved in the programme. If you choose not to continue after the trial, there will be no charge and every voucher you issued will be honoured, as if you had paid, without question. As an additional Autocashback launch offer, participating dealers that choose to continue after the 30-day trial will pay just five per cent of the value of all issued cashback vouchers/codes, with no extra fees to add on. After the launch period, this will be 7.5 per cent, so get in quick to take advantage of this special offer. Participating dealers are not liable for any of the payments, or other programme costs. When handing out the vouchers, the dealer logs onto their Autocashback.uk business
account and registers a ‘live cashback code’ and ‘cashback amount’ (£1,000 - £10,000), with both written on a voucher for the customer to redeem. Multiple vouchers can be issued in a single sale. If you haven’t heard of a service like this, that is because ‘it is completely unique’ and Roman said: ‘So far we’ve heard from lots of people using the old adage ‘‘If it seems too good to be true, it probably is’’. Then they come back to us saying they genuinely can’t find anything wrong with the service. ‘Dealers also love the fact that Autocashback is administered by a 70-year-old firm of accountants.’ Despite not having launched a trade exclusive cashback promotion before and with Autocashback being open for just two weeks, Roman is confident that this new service will be attractive to multiple dealers and customers around the country. Roman said: ‘There are dealers out there who are saying ‘‘Well, we’ve got nothing to lose’’, and during our research consumers absolutely loved the idea. After 23 years working with cashback I believe that Autocashback will be extremely popular with dealers and their customers.’ The consumer side of the Autocashback site can be accessed by visiting Autocashback.uk. The dealer presentation can be viewed by clicking the dealer tab at the top of the page. by Jack Healy @jack_healy19
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CarDealerMag.co.uk | 95
DATA FILE.
Thestatistics
n
SMMT Sales Data
n
Taking Stock
Another excellent result, despite the challenges we face ‘Positive performance is encouraging and puts the sector in a good position’
N
ew car registrations continued the positive start to 2016 in February, growing 8.4 per cent compared with the same month in 2015, according to figures released by the Society of Motor Manufacturers and Traders. A total of 83,395 new cars were registered in the month, marking the biggest February since 2004. Demand was up across all fuel types, with diesel and petrol registrations growing by 5.6 per cent and 10.7 per cent respectively, while alternativelyfuelled vehicles enjoyed an uplift of 19.9 per cent. Fleet demand dipped slightly compared with the private sector, but still retained its 53.1 per cent majority share of new vehicles. Mike Hawes, SMMT chief executive, said: ‘February is typically one of the quietest months of the year, ahead of March’s plate change, but this positive performance is encouraging and puts the sector in a good position for the coming 12 months.’ Sue Robinson, director of the National Franchised Dealers’ Association, described the figures as
‘extremely positive’. She added: ‘Consumers appear to be less reluctant to commit to new vehicles as employment prospects improve and interest rates and fuel prices remain low. Increased sales are supported by strong manufacturer deals and low-cost finance offers that are encouraging consumers to buy. ‘We anticipate the market will continue to grow, and have strong expectations ahead of the figures for the plate-change month of March, where customers will be likely to take advantage of a range of substantial discounts and savings, in addition to a variety of low-rate finance packages being made available.’ Ian Gilmartin, head of retail and
wholesale at Barclays, added: ‘This was another excellent result for the new car sector, which once again posted a big increase in registrations despite facing a number of macroeconomic challenges. ‘However, February doesn’t ever make or break the year and 2016 is no exception, so the industry will now be fully focused on delivering strong sales in March and ensuring that plenty of new-plate models roll out of the showrooms. ‘As we look further ahead, it’s probably too early to say what future registration numbers might be. Last year’s rapid growth was in part due to the strength of Sterling encouraging manufacturers to push product in the UK so the recent weakening of the pound may contribute to registrations reaching a natural peak. However, this data indicates that there are lots of reasons for the recent optimism amongst car sellers to continue. Steve Jackson, chief car editor at Glass’s, said: ‘Private customers have been incentivised back in to the market with low interest rates, deposit incentives and a selection of new models on offer.’
And still Ford’s Fiesta heads the sales charts! THE Ford Fiesta reigns supreme so far in 2016. A total of 4,507 examples of the Blue Oval’s supermini were sold in February, bringing its total for the year so far to 12,860. The rest of the top 10 best-sellers for the month were the Volkswagen Golf (2,574); Nissan Qashqai (2,486); Vauxhall Corsa (2,408); Ford Focus 96 | CarDealerMag.co.uk
(2,369); Vauxhall Astra (1,626); Audi A3 (1,619); VW Polo (1,585), Kia Sportage (1,521) and Vauxhall Mokka (1,506). The Fiesta has now been the UK bestseller for seven years. Andy Barratt, Ford of Britain chairman and MD, said: ‘Ford’s strong sales start to 2016 has resulted in our highest February total vehicle sales
since 2007. This is the result of our investment in exciting products and industry-leading technologies that has provided the foundation for our ‘‘Unlearn’’ marketing campaign. That challenges consumers to take a fresh look at the brand, using the Mustang, Edge and GT as prime examples of bold and surprising new models.’
SMMT sales data Feb/year to date
5
Top
Most-improved manufacturers in February
Lotus +680% SsangYong +212% Jaguar +208% Aston Martin +171% Abarth +143%
5
Bottom
Worst-performing manufacturers in February Chrysler -100% Chevrolet -100% Maserati -46% Vauxhall -17% Toyota -16%
MASERATI -46%
JEEP +76%
Figures supplied by SMMT
Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen* Dacia DS* Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Peugeot Porsche Renault SEAT Skoda smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total
February 2016 2016
112 165 19 5,384 48 5,760 0 0 3,046 512 807 1,917 11,513 2,050 2,685 27 769 345 2,889 1,275 232 39 31 1,411 5,196 103 1,721 710 4,634 3,469 206 1,948 1,594 2,902 234 153 74 1,248 2,478 7,868 6,694 1,030 15 82 83,395
% market share 0.13 0.20 0.02 6.46 0.06 6.91 0.00 0.00 3.65 0.61 0.97 2.30 13.81 2.46 3.22 0.03 0.92 0.41 3.46 1.53 0.28 0.05 0.04 1.69 6.23 0.12 2.06 0.85 5.56 4.16 0.25 2.34 1.91 3.48 0.28 0.18 0.09 1.50 2.97 9.43 8.03 1.24 0.02 0.10
February 2015 2015
46 123 7 4,412 28 5,091 1 12 3,074 569 0 1,941 9,858 1,580 2,602 18 249 196 2,334 794 234 5 58 1,306 4,347 63 1,756 553 4,145 3,917 172 1,709 1,176 2,260 105 49 47 923 2,958 9,552 7,710 920 24 34 76,958
% market share 0.06 0.16 0.01 5.73 0.04 6.62 0.00 0.02 3.99 0.74 0.00 2.52 12.81 2.05 3.38 0.02 0.32 0.25 3.03 1.03 0.30 0.01 0.08 1.70 5.65 0.08 2.28 0.72 5.39 5.09 0.22 2.22 1.53 2.94 0.14 0.06 0.06 1.20 3.84 12.41 10.02 1.20 0.03 0.04
% change 143.48 34.15 171.43 22.03 71.43 13.14 -100.00 -100.00 -0.91 -10.02 0.00 -1.24 16.79 29.75 3.19 50.00 208.84 76.02 23.78 60.58 -0.85 680.00 -46.55 8.04 19.53 63.49 -1.99 28.39 11.80 -11.44 19.77 13.98 35.54 28.41 122.86 212.24 57.45 35.21 -16.23 -17.63 -13.18 11.96 -37.50 141.18 8.36
2016
Year-to-date (YTD)
313 469 88 16,897 168 14,025 1 0 7,620 2,179 1,896 5,475 33,548 6,570 8,566 132 3,021 1,149 7,955 5,884 1,233 55 113 5,692 16,996 416 3,652 2,245 15,354 10,782 1,033 6,093 4,713 7,895 937 413 281 3,602 9,307 23,130 18,749 4,020 63 343 253,073
% market share 0.12 0.19 0.03 6.68 0.07 5.54 0.00 0.00 3.01 0.86 0.75 2.16 13.26 2.60 3.38 0.05 1.19 0.45 3.14 2.33 0.49 0.02 0.04 2.25 6.72 0.16 1.44 0.89 6.07 4.26 0.41 2.41 1.86 3.12 0.37 0.16 0.11 1.42 3.68 9.14 7.41 1.59 0.02 0.14
2015
179 359 52 15,766 157 13,099 1 69 8,488 2,189 0 6,125 31,338 5,189 8,396 79 1,049 532 7,248 5,097 1,240 18 173 4,646 13,695 198 3,999 2,361 15,221 11,088 802 4,725 5,313 7,376 297 170 213 2,820 9,669 26,487 21,703 3,929 73 186 241,814
% market share 0.07 0.15 0.02 6.52 0.06 5.42 0.00 0.03 3.51 0.91 0.00 2.53 12.96 2.15 3.47 0.03 0.43 0.22 3.00 2.11 0.51 0.01 0.07 1.92 5.66 0.08 1.65 0.98 6.29 4.59 0.33 1.95 2.20 3.05 0.12 0.07 0.09 1.17 4.00 10.95 8.98 1.62 0.03 0.08
% change 74.86 30.64 69.23 7.17 7.01 7.07 0.00 -100.00 -10.23 -0.46 0.00 -10.61 7.05 26.61 2.02 67.09 187.99 115.98 9.75 15.44 -0.56 205.56 -34.68 22.51 24.10 110.10 -8.68 -4.91 0.87 -2.76 28.80 28.95 -11.29 7.04 215.49 142.94 31.92 27.73 -3.74 -12.67 -13.61 2.32 -13.70 84.41 4.66
*Citroën’s monthly registrations included DS until May 2015. As the Citroën result for January 2015 is for both brands, Citroën and DS registrations need to be combined when comparing year-on-year. CarDealerMag.co.uk | 97
98 | 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
Plenty of interest in retail ready cars; buyers more wary of poorer condition vehicles Professional appraisals that adhere to NAMA standards are key, says BCA UK’s chief operating officer, remarketing, Simon Henstock
O
ur latest Pulse report shows that the headline average value of a used car sold at BCA rose in February 2016 compared with January – with year-on-year values also going up. The headline average value of a used car sold at BCA in February climbed by £52 (0.6 per cent) to £7,929. Year-on-year, average values were up by £115 (1.4 per cent), with both age and mileage declining. There were strong levels of demand in February, with plenty of interest in retail-ready cars, but buyers were rather more wary of poorer condition vehicles. Buyers have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. For cars with cosmetic damage, SMART repairs are a cost-effective option for sellers, meaning their vehicles can be quickly processed and presented in the best possible condition.
The market is anticipating increased partexchange business and greater volumes from fleet and contract hire sources over the coming weeks. With Easter imminent – often a watershed in demand – this could impact on residual values in the weeks ahead, and BCA is recommending that volume vendors appraise their sale stock closely to ensure that it is valued in line with market expectations. The importance of professional appraisals that adhere to NAMA standards cannot be over-emphasised, as this builds buyer confidence and delivers benefits for buyers and sellers alike. BCA continues to innovate in this area, investing in training for staff and developing new tools such as the BCA Branch Appraisal App that generate reliable data for the search engine powering Auction View.
Average value of a used car sold at BCA:
£7,929
Fleet and lease car values averaged £9,662 at BCA in February, an increase of £222 (2.3 per cent) compared with January’s figure of £9,440. Retained value against original MRP (manufacturer’s retail price) improved by a percentage point to 41.56, from 40.48 per cent in January, with age and mileage broadly static. Compared with February 2015, average fleet and lease values were virtually static – down by just £11 – with retained value down by nearly threequarters of a percentage point. Average values for dealer part-exchange cars fell by £61 (1.4 per cent) in February, compared with January. However, year-on-year values remain ahead by £214 (5.2 per cent). Nearly-new values were virtually static at £20,451, down by just £19 over the month. Model mix has a significant effect in this very low-volume sector.
Year-on-year values ahead by
£115
CarDealerMag.co.uk | 99
AUCTIONS.
Henstock AUCTION STATIONS
Creating level playing field for independents
Sale delivered a great result for BMW and Manheim
Record is smashed as 1,012 cars sell for £15.5m Four used BMWs and Minis are bought EACH MINUTE!
M
ore than 1,000 used BMWs and Minis were sold for a total of £15.5 million in just four hours at Manheim’s auction centre in Colchester. The total value of the 1,012 cars sold makes it a new record as the UK’s biggest sale for a single manufacturer, beating the records set by previous 1,000-car BMW sales at Manheim Colchester of £12.4 million in 2014 and £14.7 million in 2015. Eight of Manheim’s expert vehicle auctioneers presided over the rostrums for four hours, selling every BMW and Mini offered at the auction, which was held on behalf of the BMW Group. It attracted nearly 600 buyers, with more than 380 joining in remotely via Manheim’s Simulcast online bidding platform.
Tim Hudson, managing director of Manheim Remarketing, said: ‘I am incredibly proud of the team involved across the business for working together to deliver another fantastic result for BMW and Manheim. The team on site at Colchester went the extra mile to deliver a faultless sale on the day.’ Tony Wilson, general manager for BMW used cars and internal sales, said: ‘Manheim delivered yet another exceptional sale for the BMW Group, with great results in terms of both conversion rate and sales performance. ‘The Manheim team, including the staff on site at Colchester, clearly worked incredibly hard to put on what was a fantastic and well-organised event.’
BCA purchases specialist preparer Ambrosetti BCA MARKETPLACE plc has bought Ambrosetti, the market leader in the specialist preparation of new and used vehicles. Ambrosetti operates vehicle defleet, refurbishment, logistics and storage facilities in Northamptonshire and Kent, with a footprint of over 100 acres and handling around 100,000 vehicles annually. Established in 1979, Ambrosetti has
technical and administrative expertise in reconditioning, conversion, PDI, servicing, storage and onward logistics movements. The company’s customers include vehicle manufacturers and importers, major fleets and dealer groups. Ambrosetti will be integrated into the BCA services division, BCA Automotive, led by Mike Pilkington.
L
ack of finance is still a major concern for a lot of independent dealers. Many of our customers – with whom we have worked for many years and know to be strong, profitable businesses – still cannot get funding because traditional lenders do not fully understand the specific requirements of the motor trade and underwriters are wary of the exposure. This is where BCA Partner Finance can help. By funding the whole auction purchase, including fees and VAT where applicable, with both cars and vans funded using the scheme, independent dealers can compete on a level playing field and bid for the vehicles they need. Importantly, the BCA Partner Finance stocking facility isn’t linked to the dealer’s retail financing activities, allowing dealers the freedom to choose how best to use their funding and develop their business as they see fit. It’s easy to apply for Partner Finance as well. It’s all online at bca.co.uk and there’s a handy calculator that works out the profit opportunity. Once they have been approved, our customers can buy vehicles in any of our auctions – physical and online – and drive away on the day. They also have 120 days to prepare and market the vehicle before the payment is due, freeing up capital and improving cash flow. The finance on the average purchase is competitively priced as well – less than the cost of a cup of coffee daily. BCA Partner Finance customers have used the financial freedom it delivers to expand their retail sites, uplift their stock profile or invest in IT development, for example. Each customer has a dedicated account manager they can talk to about their stocking facility and a personal funding service tailored to their individual needs. Customers value the simplicity of the service, which is helping them to buy extra stock and freeing up funding – simple, effective and efficient.
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 100 | CarDealerMag.co.uk
Used car values went up in February, according to CAP HPI. bit.ly/values97
BCA’s significant investments in buildings, logistics and tech Major enhancements are under way across four sites in England
B
CA has announced a series of major enhancements to its UK remarketing network over the next two years, covering the midlands, north, south and the M1 corridor, in addition to the acquisition and integration of the Scottish Motor Auction Group (SMA) business. Simon Henstock, BCA’s chief operating officer UK remarketing, commented: ‘We are investing in the physical footprint, logistics, technology and process to deliver a comprehensive remarketing service. In addition to the network enhancements, BCA is integrating the SMA business, aligning remarketing systems and processes across 23 auction centres nationwide to create a cohesive physical and digital marketplace.’ Construction of a new 20-acre multichannel remarketing and logistics facility at Perry Barr is under way. This purpose-built site, due to open later this year, will deliver a range of de-fleet, inspection, preparation,
A new remarketing centre is being built at Perry Barr in Birmingham refurbishment, appraisal post-valet and logistics services. Remarketing facilities will include three auction halls and a digital auction suite. In the south, at the UK and Europe’s largest remarketing centre at Blackbushe, BCA has planning permission to utilise a further 36 acres of the site for de-fleet, storage and appraisal post-valet facilities. Work has begun on phase one of a
24-month development programme. In Belle Vue, Manchester, BCA has acquired a 6.5-acre site adjacent to the existing 32-acre auction facility to develop a new purpose-built commercial vehicle remarketing centre. At BCA Bedford, BCA has acquired a 10-acre site adjacent to the existing facility for the construction of a defleet and vehicle storage compound.
Mercedes-Benz Evolution sells for world record figure of £292,500 SILVERSTONE Auctions achieved strong results in three days of auctions at Race Retro with total sales of £4.7m – more than £1.3m up on last year. A 1990 Mercedes-Benz 190 E 2.5-16 Evolution II with just 1,723 miles on the clock set a new world record price of £292,500 – more than double its lower estimate – while setting another world record price, a 1987 Ford Capri 280 ‘Brooklands’ with an even lower Car dealer May 2015 24/4/15 mileage of just 936 sold for £54,000.
Fast Fords proved popular, with a 1995 Escort RS Cosworth Lux selling for £52,875 and a 1972 Escort Mexico selling for £43,875 – more than £16,000 above its lower estimate. Silverstone Auctions managing director Nick Whale said: ‘I’m delighted we have achieved these fantastic prices on behalf of our vendors. Once again we’ve been able to10:53 host a highly auction Pagesuccessful 1 with both happy sellers and happy
No cowboys. Just Just trade trade professionals. professionals.
buyers, and have broken world records by offering some of the finest cars available in the market, with a special combination of auction atmosphere and customer service.’ As well as classic road cars, more than £580,000-worth of competition cars were also sold in the first separate race car auction at Race Retro in February, including a 1958 Aston Martin DB2/4 Mk III saloon that went for £208,125.
AWARDS
Remarketing trophy won for second year BCA has won the Overall Remarketing Supplier award at the 2016 LeasePlan Supplier Excellence Awards. It is the second year in a row that it has triumphed. BCA Remarketing Services, based in Peterborough, won the award in recognition of the continued support to LeasePlan’s remarketing team based in Slough. BCA Remarketing Services achieved the highest possible accreditation of Platinum for three out of four quarters during 2015, maintaining excellent levels of service when handling terminations, stock management and smart allocations. It also introduced a new process to handle vehicle service history for LeasePlan, which has resulted in an uplift in average sales price and a 75 per cent reduction in end-of-contract dehire complaints for missing service histories. Craig Purvey, sales director at BCA, said ‘We are proud to be recognised for our work in partnership with LeasePlan to deliver a highly successful remarketing strategy using physical and Live Online auctions, driver sales and digital channels. ‘We are delighted that one of our new initiatives for 2015 has helped address the issue of missing service history, resulting in a notable contribution towards LeasePlan’s record year.’
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 | 101
102 | CarDealerMag.co.uk
MARKET INSIGHT.
..in association with ASE-global.com
Share prices struggling amid concerns over the global economic recovery And there’s a new worry to face, says Adam Cottam: will the UK stay in the EU or leave it?
N
one of the listed UK motor retail groups has shown rises in share prices since the turn of the year. Pendragon’s share price rallied following healthy final results for 2015 but is still significantly down when compared with January 1. Similarly, Lookers has shown gains in February but has not yet recovered to the level seen on January 1 despite also releasing healthy end-of-year results. There was a recovery for the FTSE 100 in February, although it was still below the level seen at the start of the year. Hopes of a Chinese economic stimulus and the release of strong US factory data have helped improve the confidence of investors. However, the commodity price concern still exists along with a new worry, namely, the uncertainty of the UK’s membership of the European Union. Vertu continued its expansion of its premium brand offering with the purchase of Greenoaks Mercedes-Benz. In non-listed motor retail transactional activity, the US-owned Group 1 Automotive significantly improved its UK footprint by acquiring Spire Automotive. Share price performance Pendragon’s share price lifted briefly on the announcement of strong 2015 results midFebruary, but the price has fallen since then, which doesn’t seem to reflect these results and
Share price movement from January 1 to March 11, 2016
Share price movement from January 1 to January 31, 2016
Pendragon
76.8%
84.9%
Vertu
85.7%
89.9%
Lookers
88.4%
85.4%
Inchcape
89.0%
90.9%
Cambria
98.8%
102.5%
Caffyns
99.1%
100.5%
Marshall
90.0%
91.6%
the operating conditions. Perhaps this is because the market believes the results will not be sustainable in 2016. Lookers’ share price has risen during February and continued to rise in March following the release of the final results. The share price still hasn’t recovered to the January 1 level, however, which seems to be more a reflection of the equity market overall rather than the motor retail industry or Lookers itself. Since the end of January, the FTSE 100 has recovered but not quite to the level it was at the turn of the year. This rise has followed positive news from the Chinese and US economies, both of which were
Vertu bought Greenoaks Mercedes-Benz for £22 million
causing uncertainty among investors in January. Financial performance Pendragon released its final full-year results to the end of December 2015 and they were very positive. Earnings were up 19 per cent, gross profit up five per cent and operating profit up 10.6 per cent. The group also revealed it had invested £53.1 million in its retail facilities in the period, and added nine retail points in addition to enhanced architecture of its online offering. Lookers also announced its final results to the end of December 2015, which were similarly strong. Revenue increased by 20 per cent, boosted by the major acquisition of Benfield, and profit before tax also rose by six per cent to £62.8m. Shareholders will have been pleased to see the adjusted EPS increasing by 12.7 per cent in the year. In addition, the accounts revealed the company’s funding had been renewed and extended, providing secured funding until 2020. Transactional activity There was only one transaction involving the listed groups in February, as Vertu continued its expansion by buying Greenoaks Mercedes-Benz for £22 million. The deal included £13 million goodwill for the Reading, Ascot and Slough representation points and represents Vertu’s first exposure to the Mercedes-Benz franchise. Outside of the listed groups, there was a significant sale of a large private group as American-owned Group 1 purchased Spire Automotive. Spire, founded in 2006, had grown organically over time and the transaction adds four Audi, three BMW/Mini, two Seat, one Skoda, one VW Commercial and one Jaguar dealership to the Houston-based group’s UK portfolio. It brings Group 1’s UK presence to 29 sites and is likely to put it in the top 10 UK groups when ranked by turnover. This is a noteworthy transaction as it may be an indication of the US automotive industry looking to other countries to provide growth amid concerns the US market is reaching its peak. Michigan-based Penske Group is also a major player in the UK market through its representation by Sytner Group.
Who is Adam Cottam? He’s corporate finance executive at dealer profitability specialist ASE plc. You can read ASE’s column here every month. CarDealerMag.co.uk | 103
A PERSONALISED APPROACH At Mallard, we believe in offering a personalised tailored service when it comes to vehicle finance. This means whenever you process an application with us, an underwriter will review each proposal in depth rather than relying on a credit score or a computer. The result? We can deliver a service that treats customers as human beings, not statistics, and often help where other lenders can’t.
Our customers are individuals and companies ranging from those with exemplary credit records to those who have good credit but may fail an autoscore. We can also help customers whose credit record fails the prime score.
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Mallard Vehicle Finance is a trading name of Mallard Leasing Limited. Registered Office: Hophouse, Maltings Park, West Bergholt, Colchester CO6 3TJ Registered No. 2770231 Mallard Leasing Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 300352, Interim Permission Number 354478)
104 | CarDealerMag.co.uk
RECRUITMENT.
New head of trading takes Carwow’s payroll past 60 Experienced Alex Rose will be instrumental to future growth, says founder
C
arwow has announced the appointment of Alex Rose as its new head of trading, taking the number of employees at the London-based company past the 60 mark. Rose, who brings with him more than a decade’s worth of experience in the automotive sector, is the latest recruit at the rapidly-growing firm, which is taking over another floor of its current office premises in Holborn, London, in order to accommodate everyone. Prior to joining Carwow, Rose was the marketing director for Who Can Fix My Car, where he was responsible for all B2B and B2C marketing for the car repair quote comparison site. Earlier in his career, he was an industry manager and analyst for the automotive industry at Google UK
and held marketing roles within BMW. As head of trading, Rose will be something of an ‘all-seeing eye’ within the business, ensuring Carwow generates a customer mix that’s aligned with their member dealers’ businesses, in terms of make and model mix, geographical coverage and more.
MMG careers advert_Layout 1 26/07/2012 15:29 Page 1
Only
More support for dealers MITSUBISHI Motors in the UK has appointed a new dealer support manager because of the growth of the brand. Trevor Schindler has been appointed to the role, having worked as an area manager for the company for the past seven years. Schindler joined Mitsubishi in 1998 and has vast experience in a number of roles, including product manager (sales) and sales planning/analysis manager (sales). He said: ‘I’m really excited about the new role. ‘Network development and franchising are great teams, and while I’ve worked for Mitsubishi for 18 years, it’s an area of the company I haven’t worked in before. ‘I’m looking forward to working with them, while still working closely with the dealers, which is what I enjoyed as an area manager.’
Reach new heights... need apply!
Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size. At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly. With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date.
marshallweb.co.uk
The appointment takes the company’s head count to 61, following the site’s recent milestone of reaching a million users and its latest funding round in which £12.5m worth of investment was raised. James Hind, founder of Carwow, said: ‘It’s very important to me that we recruit the right talent; people who are really going to buy into what we’re trying to achieve here at Carwow. ‘Alex has fantastic automotive experience and I know he will be instrumental to our future growth. I think 2016 is a really exciting year for us and we’re glad to have Alex on board for the ongoing journey.’ Rose added: ‘I’m delighted to be joining Carwow as head of trading. I look forward to playing my part in the team.’
MITSUBISHI
We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to
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...with a career at Vertu Motors
Welcome to Vertu Motors PLC, the largest growing motor retailer in the UK Whether you’re starting your career or changing jobs, it is important that you apply to join a company that is right for you, one that shares your values, will appreciate your work ethic and reward your achievements. It is not that different from buying a car. Get it right and you’ll feel good every time you make a journey. Get it wrong, however, and you’ll never feel satisfied. Choosing an employer is similar but, considering how much time we spend at work, it is far more important to get that choice right. After all, this is a decision that will literally change the course of your life. You need to know, however, that we are equally choosey when deciding who will make this journey with us. You would expect no less.
to find out more about the Group and see our current vacancies.
To apply or to explore all our exciting career opportunities, visit...
www.vertucareers.com
CarDealerMag.co.uk | 105
DATA FILE.
James Litton TRADER TALES
Emissions scandal fuels petrol demand
T
here is no shortage of plaintiffs in the various legal actions against VAG, but you may shortly be able to add other car makers. Ever since the news broke, we have seen a huge upturn in petrol engine interest – to the point that we have stopped ordering anything up to V70 with diesel engines. It is fair to say that with the growth of hybrid offerings, there was some organic move away from heavy oil, but the VAG scandal has greatly increased the consideration for petrol engines. Given that many hybrid or EV models in small and medium car segments still have a limited appeal, the return to popularity of petrol derivatives is to some degree unexpected – particularly with such force. We are not the only ones. A source within the Renault network told me that their dealership has stopped ordering Captur with diesel engines, a car which for most of its early life was ordered in mainly diesel variants. I also noticed a television advert over the weekend for a rival manufacturer who was offering a very generous finance deposit contribution with a small asterisk of ‘diesel variants only’. There is no doubt that car makers have been caught out. With potential additional support for diesel engine models, huge supply chain issues and residual realignments, this culture change could cost the industry dearly. The potential knock-on effect on residual values has me thinking back to the dark days of 2008. Consider that around 70-80 per cent of all new cars in the past three years have been sold on a PCP or PCH contract. Add the idea that the majority of these cars will have been diesel, then you have a recipe for a bloodbath for the finance book of lenders, owners and most selfishly, car dealer used car stock. Now of course it makes total sense for low-mileage customers to be buying petrol, it always has. But could they be persuaded away from the low tax and high (reported) mpg? No. Our next challenge is converting used car customers who will only consider petrol even though there will be many more diesel cars to choose from!
‘You have a recipe for a bloodbath for the finance book of lenders, owners and most selfishly, car dealer used car stock.’
Who is James Litton? James is general manager – director of Volvo Cars Poole, and no longer at Mercedes-Benz of Taunton, as we mistakenly said last month. 106 | CarDealerMag.co.uk
Suppliers’ If you’re looking for a motor trade supplier you can find App Development
Finance
Key Control
AppCreatives
First Response
Keytracker Ltd
Approved Schemes
Finance
Lead Generation
RAC BuySure
MotoNovo
Autoweb
Auctions & Trade-To-Trade Sales
Finance
Lead Generation
Aston Barclay
Paragon
Codeweavers
Auctions & Trade-To -Trade Sales
Insurance
Lead Generation
Auction Buyers 4u
AutoProtect
iVendi
Auctions & Trade to Trade Sales
Insurance
Legal & Compliance
BCA
DNA Insurance
Lawgistics
Finance
Insurance
Paint Protection
Dealerplus
Plan Insurance
AutoProtect
W: appcreatives.co.uk T: 020 7544 8636 E: enquiries@appcreatives.co.uk Info: A leading mobile app development company that specialises in automotive mobile apps for all platforms.
W: rac.co.uk/buying-a-car/rac-approved-dealers/rac-buysure T: 0330 1591111 E: dealernetwork@rac.co.uk Info: Being authorised to use the RAC name as a badge of quality creates strong consumer confidence and increases profitability.
W: astonbarclay.net T: 01245 450700 E: info@astonbarclay.net Info: Aston Barclay delivers national coverage through its four auction centres, together with proven online remarketing channels.
W: auctionbuyers4u.co.uk T: 07836 777268 E: info@auctionbuyers4u.co.uk Info: We have more than 30 years’ experience, providing a first-class service whether you’re a small concern or a large retail operator. We deal with motor trade only.
W: british-car-auctions.co.uk T: 0344 875 3480 E: customerservices@bsa.com Info: BCA’s remarketing programmes deliver volume, choice and availability for buyers, and speed, efficiency and marketleading returns for sellers.
W: dealerplus.co.uk T: 0871 310 3444 E: sales@dealerplus.co.uk Info: Dealerplus is a motor finance broker that offers an extensive panel of lenders to a nationwide network of dealers.
W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an award-winning UK finance company providing simple financial solutions. Get in touch and let us help increase your profits.
W: motonovofinance.com T: 0330 159 1895 E: marketing@motonovofinance.com Info: Our heritage, rich in passion, knowledge and success, has driven our commitment to ensure that our dealers get the best possible service and value.
W: paragoncarfinance.co.uk T: 0345 149 7777 E: pcf@paragonbank.co.uk Info: We offer finance through dealers and brokers with our innovative proposition, backed up by our knowledgeable and experienced team.
W: autoprotect.co.uk T: 01279 456500 E: sales@autoprotect.co.uk Info: A provider of warranties, GAP, SMART repair insurance, Foresight Service Plan, and many other sources of income to manufacturers and retailers.
W: dna-insurance.com T: 0844 282 0138 E: mail@dna-insurance.com Info: Save money! Low-cost insurance for road risk and/or combined. Number 1 provider for motor traders in the UK.
W: planinsurance.co.uk T: 0333 003 0042 E: info@planinsurance.co.uk Info: Leading motor trade insurance specialists. We combine expertly tailored policies, advanced IT solutions and gold-standard service.
W: Keytracker.com T: 0121 559 9000 E: sales@keytracker.co.uk Info: Established in 1996, Keytracker is a leading international key and asset management solutions provider.
W: autowebdesign.co.uk T: 01757 211700 E: marketing@autoweb.co.uk Info: We provide the industry with first-class digital marketing and web design solutions, from responsive websites to PPC campaigns.
W: codeweavers.net T: 0800 021 0888 E: marketing@codeweavers.net Info: Codeweavers has a proven track record of delivering solutions to websites that helps dealers sell more cars online.
W: ivendi.com T: 0845 226 0503 E: info@ivendi.com Info: Award-winning vehicle-retailing technology and highly qualified lead generation. See why more than 6,000 dealers now work with us.
W: lawgistics.co.uk T: 01480 445500 E: sales@lawgistics.co.uk Info: Leading provider of legal services and advice to the UK motor trade. Helping our members comply with current and future legislation.
W: autoprotect.co.uk/ceramic-coat T: 01279 456500 E: ayoungs@autoprotect.co.uk Info: Ceramic Coat is the most advanced paint and interior protection system available. AutoProtect is the sole provider to the UK’s motor manufacturing and dealership networks.
To have your details included here call (023) 9252 2434 and ask for Suppliers’ Guide listings
guide
Confessions
YOUR REAL STORIES
the details of selected companies here Paint Protection
Vehicle Logistics & Delivery
Warranty
GardX
Movex Logistics
Centurion Warranties
W: gardx.co.uk T: 01243 376426 E: information@gardx.co.uk Info: GardX manufactures a range of innovative products that are approved by motor manufacturers and used by motor dealers worldwide.
W: movex.co.uk T: 020 8551 1060 E: daren@movex.co.uk Info: The UK’s leading online vehicle logistics platform, easing vehicle movements for trade-only customers, with a network of 600plus approved transport providers.
W: centurionwarranties.co.uk T: 0800 368 7420 E: enquiries@centurionwarranties.co.uk Info: Protection for the road ahead. Are you protected? More than 35 years’ experience in the industry.
Paint Protection
Vehicle Preparation & Cleaning
Warranty
Gtechniq
National Car Cleaning
Warrantywise
Paint Protection
Vehicle Remarketing
Warranty
Supagard
CarGurus
WMS
Parts
Vehicle Remarketing
Website Design & Digital Marketing
Euro Car Parts
Friday-Ad
GForces
Stock
Video
Website Design & Digital Marketing
Maguires Garage
CitNOW
Goldsand Digital
W: gtechniq.com T: 01327 811015 E: platinum@gtechniq.com Info: In 2004, scientists at Gtechniq created a superior line of products aimed at perfecting all car surfaces, and these products have been continually improved.
W: supagard.com T: 0141 633 5933 E: info@supagard.co.uk Info: The UK’s number one since 1988 and the preferred choice of the AM Top 100 and major vehicle manufacturers.
W: eurocarparts.com T: 020 3474 0500 Info: The UK’s number one distributor of car parts for all makes of cars and light commercial vehicles. Door-to-door delivery service six days a week.
W: maguiresgarage.co.uk T: 028 9061 3141/07718 780343 E: info@maguiresgarage.co.uk Info: New car and van imports in stock and available to order. Contact Stevie or Jim. First-class customer service and very competitive pricing.
W: nationalcarclean.co.uk T: 01268 565050 E: info@nationalcarclean.co.uk Info: Over the past 30 years we have grown from a family business to a national enterprise, providing a complete valeting service.
W: cargurus.co.uk T: 0800 808 5557 E: dealers_uk@cargurus.com Info: Leading car shopping website that brings transparency to the car search process, helping consumers easily find great deals.
W: fridaymediagroup.com T: 01273 837855 E: MotorsTeam@fridaymediagroup.com Info: An automotive classified site that exposes used car dealers to more than 200,000 unique car buyers a month. Detailed search functionality helps drive leads.
W: citnow.com T: 0118 997 7740 E: reply@citnow.com Info: CitNOW is the UK’s largest provider of personalised video presentation services to the automotive industry. More than 3,500 live installations worldwide.
The UK’s Best Used Car Warranty
W: wisedealer.co.uk T: 01254 355104 E: dealers@warrantywise.co.uk Info: Provide your customers with the UK’s best used-car warranty, designed by Quentin Willson.
W: wmsgroupuk.com T: 01844 293 810 E: dealers@wmsgroupuk.com Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA registered dealerships.
W: gforces.co.uk T: 0844 247 4523 E: info@gforces.co.uk Info: The leading provider of automotive web software and full service marketing, working globally with OEMs and more than half of the UK’s top 200 dealers.
W: goldsanddigital.com T: 020 7287 9233 E: info@goldsanddigital.com Info: Build a high-quality pool of hot leads, avoid fatiguing your database and create marketing your customers will love.
Vehicle Inspections
Warranty
Website Design & Digital Marketing
AA Cars
Car Care Plan
Spidersnet
W: theAAcars.com T: 01920 252054 E: enquiries@theaacars.com Info: The AA is a trusted brand, so let us help you expand your business with vehicle inspections, AA branding and advertising on our used car site.
W: carcareplan.com T: 0344 573 8000 E: salesinfo@carcareplan.co.uk Info: The market-leading supplier of warranty, asset protection and cosmetic repair products protecting 1m customers every year. We work with manufacturers, dealer groups and independents across the world.
W: spidersnet.co.uk T: 01273 837560 E: support@spidersnet.co.uk Info: Award-winning website solutions plus services to help drive leads to dealers’ doors. The specialist team are dedicated in assisting new and used operations reach their full online potential.
We made headlines after advert cock-up
T
he world has moved on a bit since this particular episode, what with the march of the worldwide web and all, but at our dealership a year or two ago, we were still in the habit of advertising our best offers in the local weekly rag. It was something our DP was keen to do but the rest of us were far from convinced that it was having any kind of meaningful effect. Anyway, one week, we supplied the paper with our usual mixture of Ford Focuses, Renault Meganes, Astras and Golfs etc., and waited for the results to appear in print – before the deluge of customers came through the doors at the weekend as a result (not). Anyway, on this occasion, to cut a long story short, the paper cocked up. Big time. The Golf words were next to the Astra picture, the picture of the Ford Focus that was published was completely wrong – and in one picture slot there was even an image of a bleedin’ house! Goodness knows where that came from, the property supplement the previous week, we imagined. Anyway, our DP was not happy and rang the paper to complain. To say he was less than satisfied with their reponse was something of an understatement. They didn’t care one bit – although they did promise to knock a bit off the following week’s bill. DP Dan (not his real name) wasn’t in the mood to take this lying down and his mind started whirring. As it was a Friday night – and at the end of the month – we were planning our ‘pay day pub crawl’ visiting several hostelries between our dealership and the housing estate where a few of us lived at the time. The route also passed a few newsagent shops – with those old-fashioned A-boards outside containing headlines from the paper. So thanks to a few large sheets of paper, and some quick work with a few marker pens, Dan and the rest of us set about amending the news that night. ‘Man injured in crash’ was out, ‘Man buys ham roll’ was in. ‘Huge row over housing plan’ was removed, ‘Newspaper editor gets the sack’ was in. And so on. You get the idea. We don’t know if there were any repercussions at the paper, but it gave us all a giggle.
‘Our DP wasn’t in the mood to take this lying down and his mind started whirring.’
Tell us your story
Have you something to confess? We’d love to hear your tale of woe. Email us (you can find our details on page three) or post them on our new forum – simply type cardealermagazine.co.uk/forum into a web browser and get confessing! CarDealerMag.co.uk | 107
KEY NOTES
..in association with Traka
Data deluge is coming ...and a new breed of scientists will have an important role to play, says Paul Smith
H
ow will dealership sales staff cope when their legendary sex appeal is challenged by new dealership hires with a penchant for selling the joys of statistics rather than sleek saloons? These red-hot recruits are the techies soon to be tasked with analysing the huge amounts of data that automotive retailers will have to scrutinise as emerging omnichannel sales models become the norm. The new breed of data scientists, as the heralded byte-crunchers are known, will serve as the interfaces between web searchbased data and showroom sales agents. Before you scoff at the suggestion that these next-generation techies can also have sex appeal, have a read of the influential Harvard Business Review, a publication not known for relying on clickbait headlines to gain attention, which recently heralded the data scientist as ‘the sexiest job of the 21st Century’. These specialists are already among us. Vacancies for data scientists are advertised in business and technology magazines and on jobsites (albeit with scant reference to the libidinous benefits that apparently go with the occupation). The techniques of data analytics – the data scientist’s stock-in-trade – are the subject of multiple conferences and seminars this year. Right now, most of the vacancies are in wellheeled sectors such as financial services and luxury retail but, according to Nick Gill, a senior VP at Capgemini and chairman of its automotive council, the automotive market is set to join the ranks of the early adopters. According to Gill, dealerships should be getting ready for their own version of the ‘data deluge’
that’s been flooding other retail sectors for some time now. There is a growing realisation that massive ‘big data’ sets may prove key to developing reliable and consistent new and used car sales opportunities in the 2020s and beyond. Such opportunities will be achieved by mining big data sets to profile car buyers, and predictively reveal characteristics that will inform courses of action that dealers can leverage to win loyalty, boost customer experience satisfaction and, most importantly, close more sales. ‘Data scientists start with a hypothesis – such as people living in a certain area, and of a particular demographic, are more likely to buy an electric car,’ Gill explains. ‘They will then ‘‘mine’’ data from a wide range of sources to substantiate the theory, and if it stands up, they identify the people to target with that particular message.’ There are various definitions of data analytics knocking around. One that will probably be of
most use to car dealerships is explaining it as ‘the process of examining large data sets containing a variety of data types to uncover hidden patterns, unknown correlations, market trends, customer preferences, and other advantaging business information’. Delving into their data would enable dealers to answer key questions such as ‘which of your customers and prospects will be buying a car in the next three to six months?’; ‘what types of vehicle are they considering?’ and ‘what price are they prepared to pay?’ The ability to gain predictive insight would naturally enable dealers to focus their sales and marketing strategies on demographic categories likely to yield greatest success. Gill predicts that, initially, dealer groups will commission data science services ‘from specialist providers’. Who knows, perhaps they will call on Capgemini itself! But he thinks that within five years, dealers will be employing their own data scientists. For the appointment to work, however, dealers need to change their view of data, Gill warns, and recognise it as ‘a genuinely scientific approach to communicating with car buyers’. Whatever approach they adopt, car dealers will have no dearth of data to mine. CRM solutions, omnichannel platforms, and online customer inquiry systems are already generating petabytes of the stuff. But it is the connected vehicle revolution that many market-watchers see as unlocking masses of commercially-actionable car usage-based intelligence. Smart dealerships will position themselves to ensure they are qualified to exploit this rich seam of intelligence.
Who is Paul Smith?
ASSA Abloy recently purchased the electronic key management software provider eTag Solutions. eTag was founded by Paul Smith, who now heads Traka Automotive, part of the ASSA Abloy Group brand Traka. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.
Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive POWERED BY
Email sales@etagsolutions.com or call 0845 225 2910
108 | CarDealerMag.co.uk
SuperUnleaded.com THE GRID
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Daily motoring news where you help choose what’s important. From the makers of award-winning @CarDealerMag straight out of @BlackballMedia
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This Electric Corvette Shows That The Future Is Bright
Holy Cow! This Rally NearMiss Is Un-bull-ievable…
‘The Green Car Company’, aka Genovation Cars of Maryland has modified a C6 Generation Corvette Z06 to make it the fastest street-legal EV in the world. superunleaded.com/?p=13843
In rallying you should always expect the unexpected. And it’s fairly safe to say that Sébastien Ogier and co-driver Julien Ingrassia weren’t expecting cattle during Rally Mexico. superunleaded.com/?p=13831
Ken Block’s Back – And He’s Better Than Ever
Comedian Disrupts VW’s Geneva Presentation
We all love Ken Block, don’t we? He’s back with Gymkhana 8. This time he’s in Dubai throwing his customised Ford Fiesta through dunes, and doing donuts surrounded by the city’s police. superunleaded.com/?p=13819
No matter how much Volkswagen wants to make a fresh start, Dieselgate just won’t go away. At the recent Geneva Motor Show, a prankster ambushed their press conference. superunleaded.com/?p=13811
Lamborghini Huracán Spyder shown off in 360° video
We Want These Ten Amazing Cars Revealed Recently
The latest way to show off you car on the Internet is with a 360° video and this recent upload is one of the coolest we’ve seen, courtesy of an American car valuation firm. superunleaded.com/?p=13796
The Geneva Motor Show is the glitzy opening to the motoring year. Check our SuperUnleaded’s take on all the top offerings from the most prestigious manufacturers. superunleaded.com/?p=13755
Clarkson Says Sorry To The Producer He Punched
Bernie Ecclestone Says He Wouldn’t Pay To Watch F1
Almost 12 months after his infamous punch, Clarkson has officially apologised to Oisin Tymon – and it would seem that a line has been drawn under the whole affair. superunleaded.com/?p=13736
All the cars have been launched, testing is underway but Bernie Ecclestone says F1 is the worst it has ever been. Yep, you read that right, that’s the verdict from the man in charge of F1. superunleaded.com/?p=13721 CarDealerMag.co.uk | 109
HOT PROPERTY
..in association with Rapleys LLP
Preparing for the future Get ready to grab opportunities and minimise risks, advises Geoff Sayer
T
he question of whether to stay or go is one most businesses face at one time or another. It was The Clash who had the same dilemma in 1981. It’s a similar question for the UK with the EU referendum: Are we prepared to commit for the foreseeable future (shall we stay?) or have we fallen out of love with the continent (shall we go?). I’ll leave readers to decide that point, but in business, the general question of whether we stay as we are or whether we go somewhere else – move on, as it were – is a matter of timing and opportunity and risk. Readers operating in the franchised sector may face that decision when being required to fall in with the latest investment in brand CI. It may be because the current site is too small or it may be because of the arrival of an unsolicited offer. Independents may receive
interest from other businesses or groups, or even alternative users. But whereas The Clash saw the answer as the lesser of two evils and the EU referendum is seen as an all-or-nothing, win-orlose scenario, that need not be the case as far as we are concerned. The offer appearing in your mailbox need not exclude either party from significant benefit. Consolidation is a word synonymous with the march of the larger dealer groups. However, it can also be the route to comfortable retirement, release from burdensome obligations and the gateway to new opportunities. In a market where there are few vacant motor dealership properties readily available, it is business-led, corporate acquisitions that tend to dominate the expansion plans of dealer groups, but with those acquisitions often come a host of property-related matters for both the
vendor and for the purchaser. Unfortunately, those same matters sometimes receive too little attention too late in the day and can become a headache. Having a property strategy is a means of identifying such issues well beforehand so that any pitfalls are avoided. These may include lease structures, valuation advice, repairs and dilapidations, environmental matters, planned works and the like. Such pieces of work are often called ‘exit strategies’ but that is only half the story as the incoming operator or group will also have a new situation to contend with and may even require a relocation, substantial refurbishment or have a significant development to undertake. Having such advice to hand is the hallmark of an operator who is thinking ahead, so that when the time comes they’re able to take full advantage of any opportunity at minimal risk.
Who is Geoff Sayer?
Geoff is a Partner in the market leading Automotive & Roadside Team at Rapleys LLP. Contact by mobile: 07769 671 488 or email: grs@rapleys.co.uk
www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller
110 | CarDealerMag.co.uk
THE FLEET.
LATEST FROM THE FLEET... Sixth report:
Mazda2 James enjoys a few relaxing days in the Cotswolds – and supermini copes well with a family weekend away
Mrs B and miniature B enjoyed their time with the Mazda 2 – and tested its boot capacity to the limit
M
azda’s cheeky little 2 supermini has already established itself as a firm favourite of the office fleet thanks to its chiselled good looks and its seeming ability to use absolutely no fuel whatsoever. But I must admit I’ve spent very little time with the white pearl since she arrived. Why? Well mostly because CD Dave Brown always has the keys firmly lodged in his pockets – and no matter how nicely he asks I’m not rooting around in there to get them back. However, with a Valentine’s weekend trip to the Cotswolds planned I could see little reason than to convince CDDB to let me have a go in his much-loved long termer. As we were heading away for two days there was a distinct lack of willing volunteers for babysitting duties so miniature Baggott was to come along for the ride too – including all the ‘essential’ kit a five-year-old travels with. By essential I’m obviously talking a farmyard’s compliment of cuddly toys, enough craft materials to worry Morph and a scary amount of tiny, tiny horses. With small person paraphernalia and large female person’s assortment of bags, the Mazda
2’s boot was certainly tested to capacity. I’ve often wondered why car manufacturers don’t use female bag needs instead of litres to describe boot space, but that’s a different story. Everything packed in, Mrs B and Miniature B took up residence in the back, as is customary if we’re to keep the farmyard-carrying one quiet for any longer than the end of our road. Sadly there wasn’t that much room back there, meaning much of the journey was spent with a small Converse prodding my spine. However,
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: 1,117 THIS MONTH’S HIGHLIGHT Realising you can transport a farmyard of cuddly toys to the Cotswolds
with the front passenger seat pulled forward the wife could relax (a little). After three days nipping around the Cotswolds I learned a few things about our Mazda too. Firstly, the diesel engine is just as good as I remember it and coupled with the manual gearbox it’s actually good fun to drive. It’s comfy and feels remarkably solid on the road too. However, there are a few niggles. I found it impossible to set the heating to a temperature that was anything other than Arctic or Saharan and the sat nav system is infuriatingly chatty. On the motorway it told me not to come off at every junction rather than simply tell me which one to leave at – it was like it was reminding me to breathe. That said, overall, I was impressed at how it coped with a family weekend away despite its relatively small dimensions and I still think it’s the best-looking supermini on the market. In fact, I can see why CDDB keeps the keys stored deeply in the pockets – it’s either the looks he loves or the fact a woman talks to him all the time. I’ll let you come to your own conclusions on that one. James Baggott (@CarDealerEd) CarDealerMag.co.uk | 111
THE FLEET.
LATEST FROM THE FLEET... Welcome report:
Second report:
Fourth report:
MitsubishiOutlander
SkodaYeti
CitroenCactus
An alarming episode brings both reassurance and embarrassment
Sluggish gearbox is enough to make a light-red mist descend
Borrow by all means – but keep your hands away from the presets
NOW, I was aware that my new Outlander had an alarm, it’s just that what with one thing and another, after being handed the key I hadn’t gone to the trouble of sussing out the system. So it was both reassuring and slightly embarrassing to return to the SUV after a quick dash into a shop to hear its horn blasting and see the indicators blinking merrily away. Reassuring (of course) because it meant the alarm was doing its job. Slightly embarrassing because as I exited the shop I was vaguely aware of the kerfuffle and assumed another vehicle was responsible. It was only as I got nearer to WO65 BBV that I realised it was my 4x4 causing all the fuss – thanks to a friend’s dog inside that I was taking for a walk and who was now leaping around, barking away like mad on the back seat, having unwittingly set the thing off and leading to a vicious circle of alarm/canine consternation. To my embarrassment now add guilt for causing the hapless hound such anxiety, however brief... With thousands of miles covered in less than a month I’ve quickly grown attached to the stylish crossover. It’s pretty nippy for its size, while fuel consumption is pleasingly impressive and the road-hugging rides are supremely comfortable. The cabin is cosy, too – the temperature controls thankfully being quick in heating up the inside and clearing windscreen and windows after subzero nights. Yes, a veritable transport of delight. John Bowman john@blackballmedia.co.uk
MINOR road rage is probably a good way to describe my driving style. It’s not that I like to shout out of the windows at people or drive right on their bumpers, it’s just that I can get wound up behind the wheel. You need to know this if you’re going to understand why the Skoda Yeti and I don’t get on. There’s absolutely nothing wrong with the Yeti, it’s a fine car. In fact, the weighting on the steering is perfect, the ride height means you get a clear view of the road, the seats are comfortable and the interior is as well made as you’d expect from any VW group car. When I went to pick up my excessive weekly shop from Tesco, it almost yawned at how little impact it had on the boot. The fuel economy is a little bit disappointing from the petrol engine, currently achieving an average of 35.5mpg, but it’s not bad. It’s the DSG gearbox that drives me mad on my daily commute. It’s not quite on the ball enough to respond when you want to make a quick getaway. If you’re waiting for a gap to pull away at a junction and put your foot down, the results are fairly embarrassing. There’s a pause between your action and the car realising what you actually want to do before it madly revs up. It’s a small bugbear from what is otherwise a very pleasant car to drive, but first thing in the morning when I’m in need of coffee it drives me a little bit mad. Rebecca Chaplin (@believebecca)
AFTER a few years of sharing cars with your colleagues, you learn one or two things. Hop in something after bossman Baggott’s had it for a day and you’ll need to check each footwell for 2030 discarded cans of Red Bull, for example. One eventuality I had forgotten about was just what happens if you let video monkey and full-time Scouser Nigel near your car. He didn’t kerb an alloy or deplete the tank before handing it back, though: oh no, a far more destructive act was perpetrated. He committed the heinous crime of changing my radio presets to talkSport. As gravely as I take having all 15 of them swapped to my least favourite station in the entire world, though, it did highlight that the Cactus’s infotainment system isn’t quite as easy to use as I’d thought. As it turns out, stupid touchscreen scrolling menus don’t feel very intuitive when you’re desperate to stop Stan Collymore jabbering on about whether Leicester can ‘keep it together’ or not. With that sorted, and not a peep about the Premier League to be heard, it’s been a fairly unremarkable month in the Cactus. It’s still dividing opinion. Many of our officedwellers still can’t get on board with how it looks or drives, but the select few (myself included) find a car focused around comfort rather than Nürburgring lap times quite refreshing. So, lesson learned – I’m not letting go of the keys again… Jon Reay (@jonreay)
THE KNOWLEDGE Model: Outlander GX4 2.2 DI-D (manual) Price: £31,499 Engine: 2.2-litre turbodiesel Power: 147bhp, 380Nm Max speed: 124mph 0-62mph: 10.2 seconds Emissions: 139g/km Mpg: 53.3 (combined) Mileage this month: 3,749 THIS MONTH’S HIGHLIGHT The rapid de-icing and clearing of windscreen and windows. 112 | CarDealerMag.co.uk
THE KNOWLEDGE Model: Skoda Yeti 1.2 TSI DSG SE L Price: £24,900 Engine: 1.2 TSI Power: 108bhp, 175Nm Max speed: 111mph 0-62mph: 11.4 seconds Emissions: 128g/km Mpg: 51.4 (combined) Mileage this month: 427 THIS MONTH’S HIGHLIGHT A boot that’s capacious enough to more than cope with my weekly Tesco shop
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: 750 THIS MONTH’S HIGHLIGHT Finally getting my beloved BBC 6 Music back on the stereo.
LONGTERMERS
Fourth report:
Sixth report:
Eighth report:
HondaCivic Tourer
RenaultTwingo
Ford FocusST
The ‘saddle’ needs to go lower on this dependable workhorse
A trip to London, and the city really does become a playground
Still a five-star hot hatch despite the audio system’s randomness
THE Civic Tourer has become a faithful workhorse here at Blackball HQ. Always there when you need it, it’s been used to trawl up and down the country – and sometime sideways too – getting everyone there safe and sound. I don’t usually get much of a chance in it, but recently I’ve had the Honda’s keys safely in my grasp. On a quick storm up to London for a car launch, it was comfortable and relaxing on the motorway. My only criticism is the seating height. For me, you can’t get quite low enough. When you do put the seat in the lowest setting, it then blocks the speedometer. I do tend to sit like a bit of a boy racer, but this was a little annoying. It also lacks any baffles in the fuel tank, so after you’ve topped about you can hear a few litres of diesel sloshing around. When you stop, it’s a little unnerving. But that fuel tank does take a long time to empty – and thankfully isn’t too expensive to fill up when it does. It’s a very efficient car, and that’s good for a workhorse. You could say it uses very little hay for the amount of ploughing on it does. Apart from that, the Civic ticks all the boxes. It’s good on fuel, refined at motorway speeds and has a decent amount of storage compartments. It does everything that you could want a car to do. Of course, it isn’t as exciting as a Porsche or Ferrari, but can you fit a dresser in one of those? Didn’t think so. Jack Evans (@jackrober)
NOW I’ve never claimed to be the sharpest knife in the drawer so when I realised the screen washer on our long-term Twingo needed filling up, I was a little perplexed. In fact I had to count on the help of a colleague (thanks, Jack) to work out how to access it. (I could have checked the manual, to be fair...) You kind of have to lift out a couple of bits of the honeycomb grille, one on each side, than use a pair of red buttons to release the bonnet and slide it towards you. It sounds straightforward enough and in actual fact is no trouble at all. Anyway, able once again to clean the windscreen and see where I’m going (always handy, I find), it was up to the smoke for my usual bit of moonlighting. (Well, Baggott’s pay rates barely cover my champagne and dry cleaning...) It was in the traffic-clogged streets of Hammersmith, Fulham and Chelsea that HY65RJJ really came into its own. A quick glance at the Twingo website reveals that the marketing tagline is ‘the city is your playground’ and it’s a claim that’s fully justified. With a turning circle that a Black Cab driver would kill for, and the ability to squeeze past everyone turning right while I want to press on (anyone who’s driven down Putney High Street will know what I mean), piloting the Twingo towards the congestion charge zone was a breeze. Dave Brown (@CarDealerDave)
WITH the best part of 250bhp going through the front wheels and a wonderful propensity to allow a bit of spin – just like hot hatches of old – before the traction control kicks in, I’m impressed how kind the ST has been on its tyres. A shade under 20,000 miles and the tyres are just getting to the point where replacements will be needed. Not that I need one, but it’s another reason why I’m considering putting my hands in my pockets and buying Ford’s latest hot hatch. Soon to be returned, we’ll be sad to see the ST go. The audio system has started randomly turning itself off, so we need a trip to Hendy’s for it to be looked at, but this hasn’t dulled our view of the car one bit. It’s still a five-star hot hatch. As regular readers will know, it’s served us well in a whole range of environments – acting as a support vehicle for last year’s Bangers4BEN rally ranks as a standout performance, for example. Covering 2,000 miles in four days was a genuine pleasure – in fact, it seemed to thrive on it, thanks to the ST’s light clutch and smooth driving style. And as if that weren’t enough to send me into paroxysms of delight, Ford’s ingenious engineers come up with nifty lightbulb ideas such as the ST’s automatic door edge protectors as well. I make no apology for singing their praises again for that particular device, because it’s saved me a small fortune by preventing chips and other damage. They should be standard on all vehicles. Andy Entwistle (@CarDealerAndy)
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: 600 THIS MONTH’S HIGHLIGHT It might not be a Porsche but I save enough money on fuel to buy a new pair of shoes.
THE KNOWLEDGE Model: Twingo DynamiqueS Energy TCe90 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: 628 THIS MONTH’S HIGHLIGHT Working out how to open the bonnet to fill the washer fluid !
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: 1,000 THIS MONTH’S HIGHLIGHT Only now are the tyres heading for, er, ‘retyrement’. (Sorry – bad pun.) CarDealerMag.co.uk | 113
BAGGOTT.
Have you got our FREE iPad app? Download it here bit.ly/CDMiPad
Dancing pandas... and a new way for you to get the latest news
T
he internet is a wonderful thing, isn’t it? Want to know the difference between a stew and a casserole? It can help. Need directions to the nearest Burger King? No problem. Need to be entertained by sneezing pandas and men being knocked over by exercise balls? Again, the worldwide web’s at your service. I have to whisper it quietly in the Car Dealer office these days, but I’m just about old enough to remember a time when questions actually went unanswered. A time when if you didn’t know a capital city, you had to ask another human being or, wait for it, consult an actual, real-life book. A time, believe it or not, before we were connected to the oracle of things courtesy of a tiny screen stashed in our pockets. At my first journalism job – writing about the mighty Dorking and Leatherhead football clubs in Surrey – I remember the lengthy, month-long argument my editor had with IT to get me an email address. I also remember the joy of being able to send and receive my own digital messages – and the relief of cutting and pasting copy onto a page rather than spending hours transcribing it from a fax or, worse still, a letter (remember them?). I know I’m making it sound like I was born in the dark ages, but this was only 2001. Newspapers never were the fastest to adopt new technology and looking back now it’s little surprise they’re going the way of the dinosaurs. These days the internet is so ingrained in our daily lives it’s impossible to imagine what life would be like without it. Information is mainlined into our brains from social media, from news outlets and from videos every minute of every day. The pace has been so fast, businesses and traditional media have had to drastically rethink their traditional models. Take car-buying as an example, and as I’m rambling in Car Dealer that makes perfect sense. Punters these days don’t pick up a Free Ads or local paper and scour for deals in the back pages, they look nationwide on a variety of classified advertising portals, the numbers of which are constantly ballooning. They find a deal, send an email and arrange a visit – normally without even speaking to you or your team. But before they’ve even got that far, they’ll have spent hours, days, weeks even, researching their potential purchase. Reviews are everywhere online and everyone is an expert. Forums are visited, social media consulted and YouTube videos watched. In fact, by the time that customer gets to you, they’ve already made their decision – they know the car you have is the car they want, they simply want you to give them
Who is James Baggott?
James Baggott
AGAINST OUR BETTER JUDGMENT, WE GIVE OUR MD THE LAST WORD EACH MONTH
a decent price. All this makes me wonder if the art of traditional car ‘selling’ is a dying profession – with customers so well informed surely it’s only a matter of time before sales people become ‘transaction engineers’? Who knows? What I do know is this isn’t going to change. The importance of a decent web presence has long been known, but the surge in online video is rapidly making the medium just as vital. In an attempt at writing a proper column, I even did some research – well, a colleague did and I stole it, but it sort of counts. They found that viewers retain 95 per cent of a message on video compared to text. What’s more, videos are 1,200 per cent more likely to be shared than links and text combined. Online videos now account for an incredible 50 per cent of mobile traffic – and it’s not all ‘that’ sort of video... but most probably is. While 78 per cent of people watch video every week and an astonishing 55 per cent watch online video every day. See what I mean about video being important? That’s why the Blackball Media team has decided to innovate once again and launch an online video channel for the motor trade. Called ‘Trade Plates TV’ the channel features a weekly motor trade news show, a fortnightly live panel show and regular features that take you inside some of the coolest dealerships around the UK and inside the most amazing workshops. Hosted by Rebecca Chaplin, Trade Plates is a hugely exciting new project for the team and I and it’s one I know you’re going to love. We’ve already broadcast two live shows, which featured brilliant debate from dealers just like you and were incredibly popular with viewers. It helps that you can get involved with them while they’re happening too, by tweeting us or commenting in the chat box under the live video stream. And if you want to be on the sofa live with us, just get in touch. Oh, and if you missed them and want to watch again, head to TradePlates.tv where all our shows can be found neatly arranged in beautiful compartments. Just as the way your customers research and buy cars is changing, we realise that the way you want to consume your motor trade media is changing too. Don’t worry, that doesn’t mean this magazine is going anywhere, but what it does mean is you’ll be able to get more of us in many more ways in the future. I just can’t promise you won’t end up watching sneezing pandas five seconds after tuning out of our show…
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. 114 | CarDealerMag.co.uk
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