Car Dealer Magazine: Issue 98 by Blackball Media

CDX16: MORE THAN 1,000 SIGN UP FOR OUR HUGE AUTOMOTIVE EXPO

Business Publication of the Year

Issue 98 | May 2016 | CarDealerMag.co.uk | £3.50

INSIDE: NEW CAR MARKET MARCHES ON...

MAZDA

E Z E E CX-FR AY) NORTH W G N LO Y R E V (A D A E H MONKEYS OUR VERY OWN ARCTIC

REMARKETING

L : DIGITAL OR TRADITIONA TO TALK TO OUR EXPERTS TIME BOOST SALES AND SAVE

FIRST DRIVE

JAGUAR’S COMPACT LUXURY CROSSOVER IS PUT TO THE TEST

Drive More Sales with CarGurus Join the fastest growing auto-shopping site and start receiving quality leads from our informed, ready-to-buy shoppers

List your stock for free on CarGurus

Call 0808 164 1484 or visit www.cargurus.co.uk/signup/issue98 02 | CarDealerMag.co.uk

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

BLACKBALL MEDIA HASLAR MARINE TECHNOLOGY PARK, HASLAR ROAD, GOSPORT, PO12 2AG T: (023) 9252 2434 W: CarDealerMag.co.uk

FREE iPAD APP

7,270 PEOPLE HAVE IT – HAVE YOU?

IGNITION.

EDITORIAL PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

FEATURES EDITOR Sophie Williamson-Stothert

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

SENIOR STAFF WRITER Andrew Evans

andrew@blackballmedia.co.uk Twitter: @snavEwerdnA

STAFF WRITER Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

JUNIOR STAFF WRITER Laura Thomson

laura@blackballmedia.co.uk Twitter: @lauramayrafiki

ADVERTISING ACCOUNT MANAGER Michelle Searle

michelle@blackballmedia.co.uk

ACCOUNT MANAGER Jon Hickey

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

SUITS CEO, BAIZE GROUP James Baggott james@thebaize.com Twitter: @CarDealerEd

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Tim Naylor, Nick King, Nigel Swan, Jon Reay, Jonny Fleetwood, John Bowman, Ben Garside, Big Mike

Subscriptions £39.99 per year (UK) £59.99 (EU) £79.99 (rest of the world) You can pay by credit or debit card on our website – visit CarDealerClub.com

Distribution Car Dealer is distributed to a database of up to 12,000 franchised car dealers, independents, service and repair sites, car manufacturers and suppliers. Advertisers are supplied with a print certificate every month.

Awards Winner of Best Business Publication, Headline Auto Awards 2012 & 2014

Company No. 6473855 VAT No. 933 8428 05 ISSN No: 1759-5444 Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright. Nothing may be reproduced wholly or in part without permission.

very excited here at WELCOME. We’re Car Dealer Towers at the moment. We think we’re on the brink of something really special – and we want as many of our readers to be a part of it as possible. You’ve probably guessed what I’m talking about by now – yes, it can only be CDX, which is taking place on Tuesday, May 24 at Silverstone. Shortly before Easter, our online registration service let us know that 1,000 delegates had signed up for the event, and, as you might have seen online, the 1,000th person to do so – Nishad Panchal, of Charterhouse Garage in Godalming, Surrey – was rewarded with a giant Easter Egg as a prize. Cue lots of silly puns in the Car Dealer office, some of which were egg-cellent; some of which were egg-scruciating. Of course, by the time you read this, that number will have been exceeded significantly and will continue to grow until the day itself. A key element of the event will be the ‘Women in the Motor Industry’ session – and 120 delegates had signed up for that part of the day alone at the time this edition of Car Dealer went to press. With keynote speakers from Facebook, Google and Twitter, a fascinating range of educational workshops, panel discussion sessions featuring manufacturer and dealer group bosses, and, of course, the biggest expo of its kind in the UK, it’s an event not to be missed. And I haven’t even mentioned Bangers4BEN yet! Yes, our annual madcap charity rally across Europe will be taking place once again this year and the first chance to register will be provided at CDX. If you fancy taking part in ‘Bangers,’ it’s another good reason to join us at Silverstone. We opened registration for last year’s event at CDX15 and almost all the available places had been snapped up by the time the last stands had been dismantled and everyone was heading home. Anyway, all the latest CDX news and views – plus more information about this year’s Bangers4BEN trip – can be found on p10-12.

I’ve mentioned before that the fourth working day of the month normally finds me updating the Car Dealer website with the latest batch of registration statistics from the SMMT. (To be fair, Sophie stepped into the breach at the start of April, as I was my traditional five minutes late for work...) The figures released on April 6, of course, reflected what had gone on during the crucial month of March – and what a month it proved to be! The SMMT reported that the new car market grew by 5.3 per cent, making it the biggest ever month since the bi-annual plate-change began in 1999. As always in any business-based situation, there were winners and losers, but when you look at the grid of manufacturer statistics on p73, there are more green numbers than red, indicating that sales for the majority of manufacturers are heading in the right direction. We look at some of the key movers and shakers on p14-15. Mazda is one of the brands that is growing at the moment (sales figures up 16 per cent year-to-date) and the main feature in this month’s edition sees a Car Dealer magazine contingent join the brand on a trip to the Arctic Circle in a fleet of CX-3s. It proved to be an eventful journey and demonstrated the capabilities of the compact four-wheeldrive car. Find out how they got on from p46. As ever, if there’s something we should be investigating, don’t hesitate to get in touch. Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

04 | CarDealerMag.co.uk

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

INSIDE. ISSUE 98 I MAY 2016

Dashboard

Feedback Looking ahead to CDX16 Dealer interview: Hexagon

Laura Thomson got behind the wheel of this luxury SUV convertible, brought to us by Land Rover – what did she think?

Car Dealer Power Ask the AA New York Motor Show Trade Plates TV Around the UK Around the World

53 08

Finance

Consult our experts and aim high with your remarketing

CarShop notches up £5m profit – and reveals plans to expand

‘‘

Big Mike Six of the best from the New York Motor Show

Forecourt Jaguar F-Pace

There were bits on the 407 that were different from when I sold it, notably the front tyres.

Big Mike

DS 3 Performance Evoque Convertible

Feature An Arctic adventure with Mazda

Data File Car Dealer Club The Statistics Taking Stock Auctions Market Insight Recruitment

Suppliers’ Guide Key Notes

Latest on our long-termers

New Kia Sportage joins line-up – and Andy Entwistle has the first drive

Money Talks Hot Property James Baggott

06 10 16 20 24 26 28 30 33 34 39 40 42 44 46 70 72 75 76 79 81 82 84 85 86 90

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

Annoying features I was just talking to someone about the features on a vehicle we were looking at. We then started to discuss features in more detail – the best and worst ones. What are some of the worst features you have come across on cars and what are some of the best? For me, wiper sensors are the worst. I can see when it’s raining and can turn on my wipers if I want them on. I don’t need the car doing it for me. It is as bad as a certain German car I owned years ago that told me what gear I should be in when driving, just as annoying. The best feature I think is the head-up display. It helps drivers become more aware of the road as you do not need to look down at your dashboard to see how fast you’re going while trying to avoid the speed camera ticket! Do you think we have gone too far with features? Velicular Electronic handbrake and keys that don’t look like keys but you still have to put them into the dash and turn them. James Bush Adaptive cruise on Audis, and BMW auto high beam assist lights. Steve92 Steve, are they good or bad in your opinion? I love adaptive cruise as it makes motorway traffic jams so much easier. The best feature I’ve ever had on a car is electric memory seats, I think. I share the car with my wife who is 10 inches shorter than me and this is so much easier than having to adjust the seat every time I need to go somewhere. Stuff I hate – stop/start on automatics, I’ve yet to drive one which managed to re-start the engine before I had pressed the accelerator and expected it to move away. I’m also not a big fan of touchscreen controls for everything, especially when things like the heated seats are buried in a sub-menu. I can remember where a button is, and hit it without looking when on the move but with

Picture of the month Poor Jack Evans! You’d think he’d never seen a classic wintry scene before his recent trip to the Arctic Circle. He and snapper Jonny Fleetwood headed north with Mazda to drive the new CX-3 to the most northerly tip of Europe. You can read all about their adventures from page 46. Jack was the chap who put pen to paper, once he’d thawed out after shaking a tree and getting covered in snow. All together now, ‘freeze a jolly good fellow...’ (We’ll get our coat.) a touch screen I have to take my eyes off the road to find it and that’s a step backwards. However, by far and away the number one hate I have (and I admit this might be slightly personal to me...) is the wretched Hyundais which don’t let you pair a phone with the Bluetooth while moving. Why can my wife in the passenger seat not do that while I’m crawling out of Heathrow airport?! What a daft idea! Jamie Edmonds I love the active cruise, it’s just a shame you have to press resume once it’s come to a standstill. Heated massage seats in the S8 were nice too. Steve92 Any of these weird modern handbrakes or footoperated jobbies found in many Lexus models ... just give me a well-placed handle to pull please. Factory-fitted sat-nav is massively overrated and often a PITA on older cars. bestprice4cash

What would you do? I have been sat on a TT TDI S-Line convertible (12 plate) since August last year, and for one reason or another, it just gets no interest whatsoever. It’s not just mine either, I keep an eye on the others around the country. A big car supermarket group

has sat on theirs for six months and just lopped the best part of a grand off their asking price over the last couple of weeks. Mine’s very reasonably priced. So, what would you do ? j4ck100 Smoke around in it yourself for a bit to cheer yourself up! SC, Derby Trade mail. Send it to auction. Ring round a couple of local traders and tell them you just want to move it on and are they interested. Take new pictures, clean it again, re-write the advert, drop the price so you take a bit of a hit on it that won’t be as bad as the hit you may take at auction. Call around all the local hairdressers you can find to try to shift it... RS Car Sales If you’ve sat on it this long, surely you could wait another few weeks for the soft-top weather to arrive? Maybe take it off sale for a while, get it mint and ready to drive away and then as soon as the sun comes out, bang, ’ave it! sparky They seem popular cars –there are lots around on the road. My sister has one and she loves it. Velicular

So . . . in the middle of March, how was business going? Half way (ish) through the new month, how is business for everyone? We are a lot quieter than (a) I would like and (b) I ever expected. Last year from March onwards, we went very busy and saw some really strong growth. RS Car Sales

away from the used car independent dealers. Only time will tell. TD

Quieter than normal but done a fair bit though, so OK for now. TML Cars Limited

Quiet month so far. Although inquiries have picked up over the last couple of days so hopefully we can recover! See Cars Derby

We have realised 16 units so far this month. Last year in March we did 26. I’m 100 per cent certain that the PCP market is taking business

I’m speaking to a lot of dealers and it really is a bit hit and miss out there. Phil H

Six this week, could have been nine but someone wanted £14k for a Golf we could only go to £13.5k on; someone changed their mind on a Panamera; couldn’t get the figures to stack up on a Maserati unless we dropped it by £5k, and lastly, I couldn’t quite get someone to put a deposit on a BMW tonight. Steve 92

More and more of our readers are joining the debate – and it couldn’t be easier 06 | CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

we just don’t need Tweets of the month Top tweet I’m absolutely thrilled to see 120 guests sign up for #WITMI in its second year! Can’t wait to see you there #CDX16 @1Sophie_W

Leeds University has been given a £4.2m grant to develop drones that fix the UK’s infrastructure – how amazing! Sinclair SEAT @SinclairSeat

We’re excited to announce that we now offer free WiFi in our showroom/service waiting area! #HappyDays #WiFi #Lotus Lotus Silverstone @LotusUKDealer

Sorry to hear of the issue with your Citroen Picasso @chelseamamma. Thanks for contacting us, hope your problem is getting solved #heretohelp Motor Codes @MotorCodes

Sales of PHEVs/EVs up 12 fold from just ten years ago, lead by the #Mitsubishi Outlander PHEV. Lance Bradley @Lance_Bradley_

The Fat Duck is the Nissan GTR of restaurants. Jeremy Clarkson @JeremyClarkson

FEEDBACK

Looking for some finance answers Having worked for PLCs for the last 19 years and after losing my job last September, I set up on my own, selling from home. I am now at the point where I have agreed a lease for a small unit to stock 15-20 cars, selling for circa £5k. I’m VAT-registered and have a limited company. I have recently lost a few deals as I am unable to offer finance and being a small independent I am not currently regulated by the FCA. What are your opinions of becoming regulated, or is there any other path? Also, I have just purchased an iZettle chip and PIN reader. Anyone have any experience of these and the associated cost? Is there a more suitable company to use? I’m not tied in with a contract but their handling fees are 1.9 per cent as long as I take over £13,000 per month. Mat C Getting FCA-regulated is a hassle and an expense but worth it in the long run. In the past, certain brokers wouldn’t deal with you if you didn’t have a consumer credit licence, I don’t know if that has changed with the FCA regulations. Hopefully your experience in PLC land will mean you understand the wording when applying to the FCA, I found it a different language as I think did many car dealers! The money you can make from finance commission should outweigh the FCA fees, especially in the £5,000 market as you will be able to undercut

most of the online lenders who only offer great rates if borrowing over £5k. As for your chip and PIN rate, it seems very expensive to me. I pay less than that taking over 10 times more. Gavin@Rousdon Don’t be put off applying to the FCA. If you get stuck, give them a ring... I found them really helpful and they saved me a bit of money advising that what I was applying for wasn’t needed just to offer car finance. Get yourself an afternoon free and go for it, there’s good commission to be made, plus it will help you sell more cars. Like you, I had to opt for iZettle and never had an issue with them, it works well and two days later you have the money. You just have to work it a bit with the customer. James Bush For card processing, I use Worldpay (used to be Streamline). I get charged a set fee in pence for debit cards and a percentage for credit cards. I always pass on the charge if a customer wants to buy a car on a credit card and most people accept this. Gavin@Rousdon

Off-site event went a little quiet – oh well, @CarDealerMag it is. @willyblackshaw

We’re not scum of the earth, but polite and welcoming WHAT really peeves me off is the way everybody looks down on us in the motor trade as if we are the scum of the earth and would sell their mothers for a fiver. I’ve been speaking to a hell of a lot of dealers from various parts of the country and I have never spoken to so many polite, courteous, respectful and welcoming people. It’s amazing how many of them share the same views as me, but what I really find encouraging is they all say enough is enough and instead of fighting each other are prepared to stand shoulder to shoulder to protect their livelihoods before it’s too late. IMO the days of ‘A True Gentleman or Woman of the Trade’ aren’t dead but instead making a comeback and I look forward to having a close, prosperous working relationship with you for many years to come. Phil H I work in a small town with five car dealers – a bit overkill for the size of the town – and customers who come from far away always comment on how many there are and ask how we all survive. From day one, we’ve all worked together rather than going head to head with each other so all have a slightly differing stock profile, we all have a good chin wag when we see each other and will quite happily underwrite each others part exchanges or point customers in the right direction if they arrive at the wrong dealer which is quite different from the impression most folk have of the motor trade. I travel the country buying stock and I find most in the trade are polite, pleasant folk who enjoy there job and are not the type I started with in the motortrade 20+ years ago where sales staff would do anything to get the sale. James Bush

to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum CarDealerMag.co.uk | 07

DASHBOARD. ROLLS-ROYCE

Getting ready for the Black Badge THE all-new Rolls-Royce Black Badge series arrives at HR Owen’s London showroom in July. The Black Badge range is designed to appeal to self-made and highly driven customers and is a permanent bespoke addition to Rolls-Royce’s range of cars. The London dealership is the largest in Europe, and the showroom, on Berkeley Square in Mayfair, will be the first dealer in the UK to host the new range.

BIKE RIDE

Pedal power will help charity BLACKBALL Media advertising executive Cliff Culver has taken up the twowheeled challenge of joining a 100-mile cycle ride through London and Surrey on behalf of the automotive industry charity BEN. July 31 will see Culver, above, set off on the 100-mile challenge, known as the ‘Prudential RideLondonSurrey 100’, with the aim of completing it inside a sevenhour time limit. To donate, go to his Just Giving page: bit.ly/gocliff

MAZDA

New customer relations centre MAZDA UK has officially opened its new Customer Relations Centre. Housed within the company’s HQ building in Kent, the 20-strong team of customer executives will handle all types of contact with Mazda owners and potential purchasers. Andrew Beale, Mazda UK head of customer relations, said: ‘Our aim is to deliver a personal service that ensures everyone who deals with Mazda feels connected and is positively surprised throughout.’ 08 | CarDealerMag.co.uk

7,000 dealers now connected to iVendi finance products. bit.ly/finance98

CarShop records £5m profit with sales up 25pc this year Chief executive hails great result for firm that’s been on an exciting journey

ward-winning car supermarket CarShop achieved record profits of £5 million before tax in 2015 – representing an impressive 113 per cent year-on-year increase. And the company has seen strong growth continue into 2016, with sales for the first quarter of the year up by 25 per cent. Retail sales are forecast to reach around 24,000 in 2016, which compares very favourably against the company’s 2015 figure of 20,418. In his strategic review of the business, which has outlets in Cardiff, Doncaster, Northampton, Norwich and Swindon, chief executive Jonathan Dunkley said the success enjoyed by CarShop was largely due to developing four key areas: investment in data and insight; the firm’s vehicle acquisition strategy; the improved application of digital technologies; and embedding its core values into its operations. Speaking exclusively to Car Dealer, Dunkley described the 2015 figures as ‘a great result’ and said the company had been on an ‘interesting and exciting journey of evolution’ in the three years he has been CEO. He told us: ‘Data and digital is at the heart of what we do now. It’s well embedded into our culture. Our goal has been to ensure that we are the best car shop in town, and this culture is firmly embedded in to all of our behaviours and competencies. The way that we now listen to and look

after our customers has allowed us to develop and improve our customer journeys and processes. ‘Our colleagues have really bought into the best car shop in town vision, and it’s our 552 hard-working and dedicated team members that have brought this strategy to life. We’re very proud of our people and the transition that’s taken place.’ CarShop was established in 1999 and Dunkley told us: ‘There was definitely a need, around four years ago, to review our strategy, not only in terms of digital and customer experience but also in terms of supply. ‘Our unique business model means that around half of our stock comes from leasing company partners on a sale-or-return basis. The way in which these partnerships were working needed to be updated and we needed to be much more mindful of the mix and volume of stock that we were taking. We now have a more

diversified and stable supply chain in place that allows the business to operate in a much more profitable manner. Today, there is a real clear data-driven focus on our detailed ideal stock requirements for each store, which is different in each location. ‘Our pricing algorithms are much more advanced now and regionally based. We now have strong foundations on which we can continue to build and continue to grow. Our sales have already started very strongly this year, and it’s very exciting to see us continue to improve at such an impressive rate. ‘Our outlook for the business remains very positive, and we will be focused on continuing to grow unit sales to capacity in our five existing locations. We are also well progressed in considering a number of real estate options in order to open new store locations, and intend on opening our next location in 2017.’

RAC Cars and Motors.co.uk form new partnership RAC CARS and Motors.co.uk have joined forces to create a powerful new advertising partnership. The arrangement gives vehicle dealers access to RAC Cars’ and Motors.co.uk’s combined audiences through one relationship, providing dealers with an exceptional route to advertise their stock to a substantial in-market car buying audience. Together, the two businesses’ combined advertised stock increases to more than 400,000 cars from more than 8,000 dealers, with audiences of 4.2 million across the Motors.co.uk Network and 1.2 million visitors per

month across the RAC’s online brands. The Motors.co.uk network already includes major automotive websites such as Parkers, Sunday Times Driving, Motoring.co.uk and Carsite. Dealers will be able to access both brands’ consumers via a single Motors.co.uk stock feed. Customers will also easily be able to take advantage of the RAC’s marketleading range of products designed to inspire buying confidence. For RAC Approved Dealers that provide BuySure, there will be an enhanced package on RAC Cars giving them additional advertising

prominence in recognition of the fact that all their vehicles are prepared to this high standard. The first big development of the new partnership will be the launch of a new RAC Cars website in May. Phill Jones, managing director of Motors.co.uk, said: ‘In RAC Cars, we have a partner that shares our passion for becoming a trusted matchmaker for automotive buyers and sellers.’ Robert Diamond, MD of motoring services at the RAC, said: ‘RAC Cars has always had the ambition of shaking-up the used car market. We have certainly done this.’

Car retailing technology designed for today and tomorrow

www.codeweavers.net

contactus@codeweavers.net

0800CarDealerMag.co.uk 021 0888 | 09

10 | CarDealerMag.co.uk

DASHBOARD. Book your free tickets at CarDealerExpo.com

Milestone is reached as 1,000th delegate signs up for event Lucky dealer wins giant chocolate Easter egg as demand for our free tickets soars ever higher

he 1,000th delegate has signed up for CDX16 – this year’s must-attend automotive industry event. And lucky Nishad Panchal, of Charterhouse Garage in Godalming, Surrey, won our magnificent prize of a delicious giant Thorntons chocolate Easter egg in a competition we ran to find that milestone registration. All he had to do to register for the free event was click on our CDX16 link, which is given at the top of this page. The garage has been established for some 30 years and Panchal said: ‘It was a lovely surprise to find out I’d won! ‘I’m really looking forward to the event and seeing what’s out there and what other people are doing, what challenges other people have, and picking up tips for the business.’ Amy Duff, events and marketing coordinator at CDX16 organiser Blackball Media, which publishes Car Dealer Magazine, said: ‘Congratulations to Mr Panchal for winning the chocolate egg in our competition. We’re delighted for him and are sure that he’ll enjoy

by DAVE BROWN @CarDealerDave

it – just as we’re sure that he’ll thoroughly enjoy CDX16. The expo will have so much going on throughout the day that will be of huge use to car dealers in increasing their business.’ CDX16 is being held on Tuesday, May 24 at Silverstone in Northamptonshire – and it’s an event that you just won’t want to miss! There will be 12 workshops for dealers to attend, with hints and tips on how to improve business in a number of areas, as well as keynote speeches and panel discussions with some of the biggest names in the motor trade on the Car Dealer Live stage. Car Dealer Magazine will also be announcing the winners of its acclaimed Twitter 140 Awards – with the gongs handed out by Twitter – while the much-enjoyed Women In The Motor Industry session is back with a stellar line-up of panellists. Can you really afford not to be at CDX16 when your competitors will be?

SMMT chief executive Mike Hawes is one of our keynote speakers, and he will be talking about the current state of the UK automotive industry, as well as taking part in a questionand-answer session. As SMMT head, Hawes is in charge of the organisation that exists to support and promote the interests of the UK automotive industry at home and abroad, and his involvement with CDX16 gives another compelling reason why dealers should attend. He told us: ‘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.’ In addition, Blackball Media has joined forces with Haymarket Automotive to host a new-look 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.

CDX16 – Silverstone, Tuesday, May 24, 2016 CarDealerMag.co.uk | 11

DASHBOARD. CDX16 – Silverstone, Tuesday, May 24, 2016

WITMI signs up 120 guests and counting Key speakers at session will look at breaking down barriers and recognising a joint workforce

ar Dealer Magazine is thrilled to announce the 120th sign-up to its Women in the Motor Industry session (WITMI), which will take place at CDX16 – the largest automotive expo of its kind in the UK – on May 24 at Silverstone. This year’s WITMI breakout session will be hosted by Miriam González Durántez – founder of the campaigning charity Inspiring Women, which involves more than 20,000 successful British women going into state secondary schools to talk to girls about the range of jobs available to them, as well as the entry routes. Launched in October 2013, Inspiring Women has now seen female role models speak to more than 300,000 girls. This year’s WITMI panel of key speakers will welcome professional stunt driver and event manager Annalese Ferrari, pictured, World Touring Car Championship host Alexandra Legouix, MD of Gaia Innovation Ltd and UK Automotive 30% Club founder Julia Muir, plus GardX head of sales Amanda Massey. Ferrari said: ‘I am looking forward to being involved with the WITMI session at CDX16 because, despite many significant leaps forward for women in the automotive world, I still believe there are several barriers to break down and it’s important that women can support each other in their industry. ‘The automotive world might still be perceived as male-dominated but I think it’s important that we hear less of this statement and more about the recognition of the joint workforce – male and female – driving it forward.’ The UK Automotive 30% Club is a group of

JUST SOME OF THE EXHIBITORS WHO WILL BE AT CDX16 AA Cars Absolute Alignment AIS Group plc ASE sponsoring Auto Alert

12 | CarDealerMag.co.uk

Auto Ad Builder Auto Compliance Auto Group Autoidoc AutoSLM Autotech Recruit Auto Trader Autovolo Autoweb

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

CEOs and MDs who want to fill at least 30 per cent of key leadership positions in the industry with women by 2030, and 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 and have their say, participate in open discussions and generate ideas.’ Launched in 2015, the WITMI session sees four influential female speakers addressing women who work across all areas of the automotive and motorsport worlds, helping to inspire and encourage a new generation of talent and provide an open forum for those already working in the industry.

BCA BDM BEN Blackvue (NWX Ltd) Bluesky Interactive Buyacar CAP HPI CarGurus Carsnip

You could be one of our Twitter winners WE HAVE sought out the most active car dealers on Twitter to invite to an exclusive session at the industry-leading CDX16. Launched in 2013, the Twitter Top 140 is a highly anticipated annual event across the motor trade, with dealers clamouring to find out where they’re placed. Following a lengthy search through Car Dealer Magazine’s Twitter followers, we have ascertained this year’s 200 highestplacing dealers – according to Klout scores – and are contacting each one to invite them to the special CDX16 breakout session, where we will reveal the final 140. 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. Where Klout scores are the same, we will take into account numbers of followers. The highly prized awards will be presented by Lucy McHenry, head of agency sales at Twitter, and the titles include Most Influential Dealer, Most Influential Independent Dealer, Most Influential Franchised Dealer, Best Follower Ratio and Highest Climber. Do you think your dealership is in with a chance of winning? If you are on our Top 200 list then make sure you get your tickets to CDX16, because you could come away with one of the most acclaimed awards in the automotive industry.

Car Wow Catalyst Computer Systems CCKeys CitNOW Codeweavers Contact At Once Cooper Solutions Dealer Auction Dragon 2000

Drive Development eDynamix EMaC Enrol My Staff Euro Charts Evolution Funding First Response GardX Gemini Systems

Book your free tickets at CarDealerExpo.com

Ferrari frolics are on the horizon with Bangers4BEN 2016! A tour of the test track plus the chance to test your racing skills on F1 simulators – all this and more with our fantastic charity rally

t’s back! Yes, after intense planning at Car Dealer Towers for the wackiest – and arguably weirdest – event in the UK’s motoring calendar, we’re ridiculously excited to reveal the details for Bangers4BEN 2016. And it’s going to be a full-on, fantastic Ferrari-thon! B4B15 proved to be a phenomenal success, raising nearly £56,000 for the automotive industry charity BEN. And here’s the chance to be in on the action this year! Organise your teams and prepare your sub-£750 bangers, because registration for October’s four-day scenic road trip through France and Italy will be available to those at CDX16, which is being held at Silverstone on Tuesday, May 24 and is free to attend. And with only 50 slots available for B4B16, we predict it’ll sell out there and then. This year’s rally will follow a similar plan to the Ferrari-themed trip of 2011, covering many miles of Europe’s best roads, with the ultimate goal of ending up at Ferrari’s home town of Maranello in Italy. And this time we’re also looking to arrange a personal tour of the Ferrari test track. How cool is that? There’s plenty of other cool stuff, too. In fact, it’s a Ferrari fanatic’s dream come true. And you’ll

GForces Glass’s Guide Haymarket Automotive IGA IM Group IMI Instant Feedback iVendi Judge Service

Cars line up for last year’s Bangers4Ben

by LAURA THOMSON @lauramayrafiki

be living that dream, because when we’re in Italy we’ll be staying at The Maranello Village – the only Ferrari-themed hotel on the planet – where we’ll be dining on Ferrari food at one of the two Ferrari restaurants there. We’ll also be visiting the newly renovated Ferrari Museum nearby where, as well as marvelling at the many exhibits, you can test your motor-racing skills on the museum’s pulsequickening semi-professional Formula 1 simulators. A guided tour of the Ferrari test track will be the cherry on top of the Prancing Horse cake, after which our tired but exhilarated teams will begin the long drive home. Notice we said ‘goal’ earlier. That’s because we realise that not all of the motors will necessarily make it there. But breaking down is arguably all part of the fun, and the AA support vans that we’ll have on hand will ensure that no banger and nobody is left behind. Once home, as many of the bangers as possible will be auctioned off at BCA Blackbushe to raise even more much-needed money for BEN.

Kärcher Key Tracker Lawgistics Liquidline Manheim Martec MDF Database Solutions Ltd Moneypenny Motorcodes

Motors.co.uk Movex OTT (On Target Telemarketing) Pentana Solutions Phoenix Training Plan Insurance Pro-Align Progress Recruitment

HERE’S THE ITINERARY Day 1: Saturday 8th October – Dover to Colmar, France Day 2: Sunday 9th October – Colmar to Maranello, Italy (aka Ferrari Heaven) Day 3: Monday 10th October – Maranello to Strasbourg Day 4: Tuesday 11th October – Strasbourg to Calais Sound like your kind of road trip? Then make sure you sign up at CDX16 on Tuesday, May 24. Entry per team of two will cost £500, which includes all ferry crossings, accommodation, dinner and museum entry.

Quid Car Ads RAC Reef Business Systems Response IQ Ridgeway Road Angel Rotary Lift UK Scotspeed Search Optics

Smart Insurance SsangYong T4 Media Titan DMS Traka Automotive Trusted Dealers 22PointSix WMS Zerolight

CarDealerMag.co.uk | 13

DASHBOARD.

Marching forward! Record figures delight successful manufacturers Car makers queue up to tell us about their triumphs – and who can blame them, after all?

s we report in our regular SMMT spread a little further on in the magazine (pages 72 & 73), March was the biggest month for sales of new cars in the UK since the introduction of the twiceyearly plate change. A whopping total of 518,707 new cars were registered, only the third time the market has surpassed half a million units in a single month. What’s more, March rounded off a record quarter, in which more than 770,000 new cars were registered – a 5.1 per cent increase over the first three months of 2015. Hardly surprising then that the figures put a spring in the step of those manufacturers who performed well. Fiat UK achieved its best monthly sales total in almost 12 years with 13,190 registrations in March, an increase of 10.62 per cent compared to the same month last year. Indeed, Fiat UK’s March registration figures were the strongest monthly figures it has posted since September

by DAVE BROWN @CarDealerDave 2004, when the brand sold 13,668 vehicles. Sebastiano Fedrigo, country manager for Fiat UK, said: ‘We were confident that 2016 would be a turning point for the Fiat brand in the UK and so far, this is proving to be the case.’ Sister brand Jeep is also enjoying growing popularity in the UK. Jeep registered 2,597 cars in March – the 31st consecutive year-on-year increase and the greatest single month in the brand’s UK history. The Renegade continued to perform exceptionally well, registering 1,794 sales in March, while Cherokee sold 497, Grand Cherokee 276 and Wrangler 30. ‘The sales figures are once again fantastic news not just for new Renegade, but for the Jeep brand as a whole,’ said Damien Dally, head of brand, Jeep UK. ‘There is still much to come from this exciting brand and I am looking forward to our

continued sales success in the UK.’ Ford continues to be the clear market leader. Blue Oval car sales were 60,349 in March, 8,447 registrations ahead of its nearest rival. The Fiesta remains the UK’s best-seller with 23,467 registrations in March, 6,099 sales ahead of its nearest competitor. The United Kingdom was Volvo Cars’ biggest and fastest-growing European market in March. The Swedish brand recorded sales of 7,488 cars, up 12.4 per cent on March 2015. The XC60 was the best-selling model in the UK, followed by the V40 and the XC90. Jon Wakefield, sales director at Volvo Car UK, said: ‘This is a tremendous result. For the UK to be the biggest market in Europe in March is testament to the incredible work done by our dealer network and everyone in Volvo Car UK.’ Meanwhile, SsangYong achieved 1,026 registrations (including LCVs), its highest figure in a single month, and the first time it has broken through the 1,000-units-a-month barrier.

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

14 | CarDealerMag.co.uk

Jeep

Ford

60,349

2,597

WHAT THEY’RE SAYING

‘Record-breaking result shows the industry has delivered again’

Fiat

13,190 Ssangyong

1,026 (inc. LCVs)

Volvo

7,488

HERE’S what the industry had to say about the March SMMT figures, which revealed a 5.1 per cent increase in new car registrations in 2016 Q1, fuelled by the 16-plate change. Sue Robinson, director of the National Franchised Dealers’ Association (NFDA), said: ‘Strong new car sales in the first quarter of 2016 continue to have a positive impact on the UK economy. The March sales, as a result of the plate change, have put the sector in a good position for 2016.’ Richard Jones, MD at Black Horse – one of the UK’s leading motor finance providers – commented: ‘These figures are very encouraging for the industry – with the new plate surge in March giving us a good indication of the outlook for the rest of 2016, which is even more

positive than we’d expected. ‘At the same time, we anticipate working even more closely with our dealers in the coming weeks and months to help with an increasing requirement to retail nearlynew cars and low-mileage stock through appropriatelystructured finance.’ Ian Gilmartin, head of retail and wholesale at Barclays, continued: ‘The recordbreaking result shows that the industry has again delivered when it matters.’ Derren Martin, senior editor at Cap hpi, added: ‘Concerns around oversupply do need to be tempered with the fact that retail demand for used cars remains healthy – consumers are still actively buying, interest rates are low and the economy remains strong.’

NOW CHECK OUT THE STATS IN DETAIL: PAGES 72 & 73

CarDealerMag.co.uk | 15

DASHBOARD.

The finest food, the finest coffee and the finest cars SOPHIE WILLIAMSON-STOTHERT talks F1, classic cars and business success with Hexagon chairman Paul Michaels

o what you love; love what you do. In other words, having a passion for your business and what it stands for is the key to success. As the new car market surges ahead, with record registrations recorded for the month of March, all eyes are understandably on modern motors much of the time. But what about the cars of the past that originally fuelled consumer demand? The Austin Mini, for example, played a crucial role in helping families get mobile after the Suez Crisis of 1956 led to five months of petrol rationing in the UK. The sales of 900-1,000cc cars, such as Issigoni’s Mini, quadrupled in the period from 1956 to 1957, while sales in the wider market slumped. The Mini, in all its variants, revolutionised the definition of the ‘small car’ and became the bestselling British motor in history, with a production run of 5.3 million units in its lifetime. Well, there is a place where these nostalgiainducing historic and modern classic cars – such as the Mini, the Jaguar E-Type and the Porsche 911 – are still very much alive, serviced and awaiting new ownership. From a small mews in north London, Hexagon quickly built a reputation for being passionate about road and racing cars and is arguably one of the UK’s leading traders of pre-2000 metal. Today, it’s well on its way to becoming a central destination for owners and enthusiasts alike. Founded in 1963 by chairman Paul Michaels, Hexagon became the official dealer of some of the most prestigious brands in the world, including Porsche, Alfa Romeo and Lotus, not to mention being London’s leading BMW dealer for more than 45 years. For more than 50 years, Hexagon has been run by a determined leader who has dedicated his life to his business and passion for old cars – a path than has taken him on some incredible journeys. ‘My first word was “cars”. My father was in the motor trade, but only to make a living. I, however, picked up the disease and was determined to set up my own garage,’ explained Michaels. ‘To say I didn’t do very well at school is a bit of an overstatement, so as soon as I passed my driving test – the day after my 17th birthday – I went looking for my first garage, which happened 16 | CarDealerMag.co.uk

“

I still play a big part in the day-to-day running of Hexagon

to be at Daleham Mews in Hampstead.’ Michaels’ first idea was to specialise in servicing and selling Jaguars, so he hatched a plan to make his garage the go-to place for anything ‘big cat’ related. ‘I commandeered two of the best mechanics from Henlys, which used to be a main Jaguar and Rover dealer, and started building the business,’ he said. As with any budding business, it wasn’t always a smooth journey, and Michaels had big plans for the future. ‘I wanted to branch out and start working more with performance cars like the Mini Cooper and Lotus Europa,’ he said. ‘At that point, we decided to name the company Hexagon Tune, which we had sign-written across our little Mini van – the only problem was, we started getting calls from people asking us to retune their pianos so, as you can imagine, we had to rebrand.’ During the early 1970s, Michaels also committed to motor-racing. He began racing D-Type Jaguars, competing in Formula 5000, and during the business’s most adventurous period, Hexagon entered into Formula One in the 1973 and ’74 seasons, with driver John Watson driving a Brabham BT44 and climbing his way up the grid to finish fourth in Austria and pick up a very respectable six points in the championship – making them the most successful privateer team to enter the championship.

‘It was always my ambition to do F1 before I was 30,’ said Michaels. ‘And I did it when I was 28 with John Watson at the wheel. John was contracted by Brabham but Bernie Ecclestone, who owned the team at the time, agreed he could take one of the cars and run in a semi-privateer team with Hexagon. In 1974, we scored six points in the championship. That was the end of my F1 career. It was short and sharp but I’m proud of what we achieved.’ Racing, with a particular emphasis on history, remains at the heart of Hexagon, evidenced by the purchase of a 1987 Porsche 962 that raced twice at Le Mans. It’s one of few original examples in the world and can be seen on display in the Modern Classics showroom in East Finchley. As the classic market continues to prosper and diversify, Michaels and his team – led by Jonathan Kaiser in the classics division and Jonathan Franklin in the modern classics division – believe that building strong relationships with customers and an environment where classic cars of all generations can be enjoyed will be their focus for the foreseeable future. The firm’s unrivalled contacts and reach across the world mean that if the car a customer desires isn’t in stock, they know where to go and whom to go to to get it.

Given that Porsche was one of the marques Hexagon sold new, it’s entirely possible that one day the same car will re-enter stock as a classic. Similarly, Hexagon’s recent partnership with Lotus, a franchise it last held in 1976, marks a return that fits with the ethos of the brand. ‘We are very much a family-orientated business,’ said Michaels. ‘I still play a big part in the day-to-day running of Hexagon and I wouldn’t have it any other way. ‘Modern dealers don’t seem to leave much room for the individuals who work in the business – it’s all about hitting targets, and that’s not my way of doing things. I always wanted to be in control of my business and I don’t regret that for one moment. I’m here with my colleagues every day.’ Following a complete overhaul, the firm’s new flagship headquarters – called The Hexagon – in Great North Road, East Finchley, can now house the finest examples of classic and modern classic vehicles, with room for more than 50 cars and a modern art collection overseen by Michaels’ wife. Michaels said: ‘Our showroom in East Finchley, which is home to our Lotus franchise and Modern Classics business, is currently under development and my plan is to make this site a destination for all classic car enthusiasts. ‘The service department here, for example, is

Paul Michaels, main picture, above, says that Hexagon is very much a family business

always busy. I always remind people who don’t expect their heritage investments to need any TLC that old cars needed fettling when they were new, let alone when they’re over 40 years old.’ Michaels wants people to enjoy their stay while they’re waiting for their car to be checked over, so the next phase in the redevelopment of the firm’s headquarters is the opening of a new coffee shop, which is to be finished within the next few weeks, while a restaurant headed up by a Michelin-starred chef will open in the old Mini showroom later this year, as will a design store. The aim of The Hexagon is to bring together classic cars and luxury lifestyle like no other location in London, while the company’s South Kensington mews showroom – Hexagon Classics – continues to operate alongside it. ‘It’s really pleasing to see The Hexagon take shape so quickly,’ said Michaels. ‘The new showroom looks sensational, and within the next eight weeks the coffee bar will open, with the restaurant and my wife’s design store following shortly after.’ Michaels added: ‘My vision is for The Hexagon to become a real destination – a place where you can enjoy the finest coffee, the finest food and indulge in your love of the finest cars. ‘Visitors can even meet my poodle, Aston, who comes to the showroom with me every day.’ [CD] CarDealerMag.co.uk | 17

18 | CarDealerMag.co.uk

CarDealerMag.co.uk | 19

SURVEY.

‘It’s the best accolade we could ever receive’ We chat to previous winners Dealer-Auction who have been delighted by their success in our important survey in recent years

ar Dealer Power needs you! Our annual survey is firmly up and running for 2016 and another crop of winners will be taking home their coveted trophies when our awards ceremony takes place in July. And there’s no doubt about it – the suppliers and manufacturers who triumph are over the moon when they win – proving that your votes are crucial when it comes to rewarding the people you do business with. Dealer-Auction Ltd has won the trade-to-trade remarketer award an impressive three times and operations director Kieran TeeBoon told us: ‘It’s confirmation from our customers that we are good people to do business with. We work really hard with our customers to make the whole digital auction experience a great one. ‘Receiving the award voted for by our customers is as good an accolade as we could ever expect to receive.’ Car Dealer Power aims to discover – and reward – the best manufacturers and suppliers, and as we reported last month, we have already had a LOT of responses. But we still want more! 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. 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

The Car Dealer Power awards ceremony is held at the top of the Spinnaker Tower each year manufacturers and suppliers to the skies or hanging them out to dry. Have no fear, though – the survey is completely anonymous. The Car Dealer Magazine team will only assess the answers, not the 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. 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. 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

Turntable Pro

360 Vehicle Photography

Turntable Pro : Automated Photography System (Operated by unskilled operatives) Programmable positioning Camera to website images in less than 10 minutes Like to improve image quality? Consistent branding important ? Join the on-line revolutiong

â&#x20AC;&#x2DC;Registration numberâ&#x20AC;&#x2122; referenced file for each vehicle Automatically takes HD still and HD Video at the single touch of a button Internal 360 degree imagery Our bespoke software controls both turntable and cameras in harmony with each other. We are UK manufacturers of photo booths incorporating our turntables for Car, Van and Motorcycle dealers. From a standard turntable to a full blown Studio.

Phone for quotation: 0800 612 4930 email: info@ukturn.com

www.turntablepro.co.uk CarDealerMag.co.uk | 21

DASHBOARD.

Government funding helps Dyson join the EV revolution . . . but company ‘never comments on products that are in development’

yson, the innovative British company wellknown mainly for its vacuum cleaners and other cleverly-designed electrical appliances, is developing its own electric car. Reportedly being worked on at its headquarters in Wiltshire, the vehicle will look to compete with those created by the likes of Google and Apple. It would appear that the news almost emerged by accident, thanks to the publication of a government document towards the end of March. The National Infrastructure Delivery Plan revealed: ‘The government is funding Dyson to develop a new battery electric vehicle at their headquarters in Malmesbury,

Wiltshire. This will secure £174m of investment in the area, creating over 500 jobs, mostly in engineering.’ An indication of the project was provided last year when The Guardian newspaper asked Max Conze, Dyson’s chief executive, if the firm was planning to develop its own electric vehicle. Conze told the paper: ‘We are

ruling nothing out. Like our friends in Cupertino [Apple], we are unhealthily obsessed when it comes to taking apart our products to make them better.’ With profits reportedly up by 15 per cent in 2015, perhaps it’s not surprising that Dyson is expanding into other areas of technology. The company also recently acquired Sakti3, a solid-state battery company, for $90 million. Soon after this, founder Sir James Dyson, pictured, reported that the company had ‘developed a breakthrough in battery technology’. This may have in part led to work beginning on the development of an EV. However, a Dyson spokesman said: ‘We never comment on products that are in development.’

CAP HPI

Small increase in used values CAP HPI says healthy demand saw stable used values in Black Book Live during March with a small average increase of 0.1 per cent. While the average threeyear-old/60,000-mile vehicle saw a minimal increase, some sectors saw stronger rises, with convertibles increasing by 1.6 per cent and city cars by 0.5 per cent. Derren Martin, senior editor of Black Book, said: ‘Supply and demand have been well matched in the used car market in 2016. ‘On the whole, trade values have been very stable since the turn of the year, with average reductions in Black Book Live since that time being less than one per cent. ‘In the case of city cars, values have actually been on the increase. This theme continued during March.’

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

22 | CarDealerMag.co.uk

MAKE YOUR USED STOCK INTERACTIVE.

NetDirector 360 NetDirector 360 enables you to give your customers an interactive, 360-degree experience of all your used stock. Created in minutes from your smartphone, this revolutionary app puts the customer in the driving seat for choosing their next car.

Visit gforces.co.uk or call 0844 846 4767 for more information CarDealerMag.co.uk | 23

DASHBOARD.

Diesel sales dip after emissions scandal ‘was just a blip’. bit.ly/justablip98

Ask the AA WITH ANDREW FERRETT

Make sure you refill the DPF additive tank

A new scheme to reward sales staff is being brought in

Peugeot rethinks incentive process to improve sales New focus created on long-term customer satisfaction

an the incentive process for sales targets be harmful to the long-term customer journey and lead to a poor customer experience? Peugeot thinks so, and in association with performance improvement agency P&MM it’s seeking to refocus dealer incentives to boost customer experience and generate brand loyalty. The UK is the third-largest market for Peugeot, and its UK operations consist of 650 frontline sales staff and managers across 217 UK dealerships. Peugeot is looking to encourage ‘changed behaviours’ among these staff, introducing more sophisticated techniques to enhance communication and improve lead conversion. A new incentive scheme dubbed ‘The Guild’ delivers a unique four-tier programme that rewards sales personnel for achieving in metrics beyond mere sales volume to create a new focus on long-term customer satisfaction in addition to the short-term goals of sales figures. Andy Hone, head of sales development at Peugeot UK, told us: ‘We divide performance into a number of different elements, one of which naturally is sales, but also a number of sales management topics to identify those dealer partners that perform well. ‘And that’s really the principle of The

24 | CarDealerMag.co.uk

by ANDREW EVANS @snavEwerdnA

Guild – to say well done for the results but also well done for doing the right things all of the time.’ So what are the right things? Hone says it’s all about the extended purchase journey that a customer goes through. ‘That starts with an initial telephone or e-mail inquiry, well before they’ve visited the dealership, all the way through to how well a customer is handled past the delivery point of their vehicle.’ Unusually, this also includes statistics on people who don’t eventually buy a Peugeot. ‘We ask those people what they felt the reception was like, how well their needs were qualified, whether or not the test drive was useful to them and we rank our dealers on their performance,’ said Hone. If the sales personnel have done a good job, it could lead to a conquest sale down the line. ‘As a final measurement area, we identify how satisfied those customers that actually went on to buy a car are with the first few weeks of vehicle ownership.’ Hone added: ‘We’ll also be putting together a Hall of Fame. We’ll identify the winners each year, and a little bit like World Cup-winning football teams, they’ll have little Peugeot Lions next to their name for each time they earn the award.’ P&MM director John Sylvester said: ‘It’s very common for businesses to focus their incentives on sales, but that’s looking at what’s already happened. If you focus part of your budget on behaviours, you’re focusing on what’s about to happen. It’s a much more forward-looking approach.’

rade 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. How do I check that the DPF additive tank is topped up and which vehicles are most likely to have one? Failing to check if the additive tank is low or empty is a known issue that can hit the customer in the pocket. Diesel particulate filters (DPFs) have been around for more than three decades, but since 2009, when the Euro 5 rule came into force, new diesel cars are required to have them fitted in the exhaust as standard. This is now checked during the MOT test and if missing will result in a failure. The DPF is designed to catch diesel exhaust fumes rather than allow vehicles to belch out a cloud of harmful black smoke. But AA patrols are regularly called to cars with the particulate warning light on, indicating a partial blockage of the filter. If action isn’t taken, there could be irreparable engine damage. DPFs don’t like stop-start city driving. They gradually get clogged up, but this can be prevented by ‘regeneration’ — the heating of sooty residue, which turns it into ash. There is a self-cleansing process, but if the journey is too short or you spend a lot of time sitting in congestion, the exhaust won’t have the chance to get hot enough and this automatic regeneration may not work properly. Yet normal regeneration can also be incomplete if the additive tank is low or empty. Some models across a wide range of manufacturers use a different type of DPF, which relies on the fuel additive Eolys, containing cerium(III) oxide. Cerium ignites at a lower temperature and sticks to the soot particles, meaning regeneration can occur at a lower temperature. The additive is stored in a separate tank, usually near the fuel tank, and is automatically mixed with the fuel whenever you fill up. Only very small quantities are used, so a litre of additive should treat around 2,800 litres of fuel – enough to cover 25,000 miles at 40mpg. It lasts about 70,000 miles and should be replenished during a service. It’s vital this tank is refilled as, without it, regeneration is unlikely to be successful and a new DPF may be needed – at significant cost. Many people are unaware of this extra tank and the fluid inside, so it’s likely many used cars wouldn’t have been checked and topped up. That could prove to be a costly mistake for the vehicle owner. But dealers also need to be aware, because although it might not mean a compensation claim, it could cost them customer goodwill.

‘That could prove to be a costly mistake for the vehicle owner.’

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.

CarDealerMag.co.uk | 25

DASHBOARD.

Best in show... check out stars of New York A

s the last major motor show in the West for a while, the New York International Auto Show is the final opportunity for manufacturers to get appetites whetted for their new products this year. With all of the major manufacturers

Genesis Hybrid Concept

Lincoln Navigator Concept

in attendance, quite a few of the cars on display were making their North American debuts, but a number of cars had their global unveilings at the event too. Andrew Evans looks at his six favourites to make their worldwide entrance in the Big Apple.

As Hyundai’s new luxury and sports brand, Genesis doesn’t have a great deal of recognition in the UK yet, with only a handful of dealers and just an eponymous £50k executive saloon to offer. If this concept is anything to go by, that ought to change. Pitched as a 3 Series/C-Class/ A4 rival, the concept is quite the looker. If it can bring these looks to the day-to-day range it could be a onto a winner.

Toyota Prius Prime

We might not be too familiar with Ford’s luxury arm Lincoln here in the UK, but its Navigator SUV is one of the icons of the class. After stealing the show last year with the Continental Concept, Lincoln made a good fist of being the headline act this year with this stunning Navigator Concept. The interior is pretty special but it’s those full-length gullwing doors and extending side steps that wowed the crowds.

A plug-in hybrid version of the new Prius, the Prime is claimed to reach 202mpg thanks to a pure EV mode with a range of 30 miles and at speeds of up to 84mph. With a larger 8.8kWh lithium-ion battery than the Prius and a full charge time of under 2.5 hours, the Prime’s electrics have been tweaked to avoid using the petrol engine as much as possible. The Prime also looks a lot nicer than the standard Prius.

Nissan GT-R

Another year, another update for the Nissan GT-R. It’s hard to believe that Nissan can still be finding ways to improve on its flagship performance car and indeed, outright figures haven’t changed from the 196mph top speed and 0-60mph time of 2.6 seconds of the previous car, despite a little increase in power output to 562hp. Instead the focus is on improved stability at speed and engine flexibility, with new aero details all round.

Audi R8 V10 Spyder

Get the second generation of Audi’s R8 supercar and take the roof off so you can hear that fabulous V10 behind you. The fabric roof can open or close in just 20 seconds at speeds of up to 31mph and sits underneath a rear panel on top of the engine. That does mean that you lose out on the glass engine cover, so you can’t ogle the V10, but otherwise the R8 Spyder is visually identical to the coupe.

Mazda MX-5 RF

It’s already World Car of the Year but Mazda’s added a new dimension to the MX-5, choosing New York to unveil the targa-topped RF. With the roof in place, the RF is a pretty spectacular miniature coupe, but then the centre-section of the roof can fold away – in 12 seconds and at up to 6mph – for an open-top experience. 26 | CarDealerMag.co.uk

THE NEW CAR DATA CHECK FOR DEALERS Reduce your HPI bill with our brand new car data check NO subscription fee SIMPLE online check with instant results FREE valuation FREE customer certificate to show vehicle history check FREE 90 day refresh

JUST £1 PER CHECK UNTIL 30TH APRIL 2016

SPORT PAS

FREE £10,000 guarantee

ALE R CHEC

TRY IT TODAY rac.co.uk/dealerpassport CarDealerMag.co.uk | 27

DASHBOARD.

What you missed on Trade This month on Trade Plates TV Live we’ve been covering a range of different topics. Here’s our snapshot of what you’ve missed, but head over to tradeplates.tv to see all of the shows in full. EPISODE 3 HOW DO YOU DEAL WITH A BAD REVIEW?

n the most recent episode of Trade Plates TV Live, we were joined by Jason Williams from Lawgistics who talked about what you can do if a customer leaves a review online that you don’t agree with or which is defamatory. Our guests in the studio were Alexis Cassey, from Prestige Diesels Portsmouth, and Giles Usher, from Cars of Portsmouth. When it comes to a negative review that you don’t agree with, Williams explained: ‘The best thing you can do if someone leaves a review that you’re not happy with is to respond, but in a way that leaves you in a very positive light. The worst thing you can do is respond in an aggressive way, because anyone who sees your response will think, ‘‘if this is the way they deal with a complaint I don’t want to be dealing with them’’. ‘Explain what you’ve done to help that particular individual and if you have a difference of opinion, explain why you disagree. When people then read those together, they should be able to see why the initial reviewer was wrong.’ This might seem like a simple way to handle an awkward customer but it won’t remove the comment. If the review is defamatory and damaging to your business, then Williams did have a second way to resolve the issue. ‘What you can also do is complain formally to the internet service provider (ISP). In legal terms an ISP is known as an innocent disseminator of information, which basically means that they sit there and display information to the world, but generally they don’t have a great deal of involvement with the content of that website. ‘However, what the law says is that an individual can sue the ISP for defamation if they do not remove an defamatory comment once their attention is drawn to it. They do have to be genuinely defamatory comments though. It can’t just be that you don’t like it!’ There’s another arm to defamation, and that’s something called malicious falsehood. If you’ve ever experienced a rival company leaving a fake

Twitter: @tradeplatestv 28 | CarDealerMag.co.uk

Rebecca Chaplin of Trade Plates TV, centre, with Alexis Cassey and Giles Usher

HOW DID YOU GET ON TWITTER? ALEXIS Cassey is well-known for her growing band of Twitter followers, but who is to blame for her addiction to the social media platform? Well, luckily, we had the lady herself and the person who encouraged her to start tweeting in the same room. ‘About four years ago Spidersnet put us on Twitter and we had an automated system where all of our cars would be posted there. You didn’t do anything, just review online, Williams’ next piece of advice could be very useful to you. He explained: ‘Malicious falsehood is a deliberate statement of ill-intent which has purposely set out to cause damage to a particular individual or business. If you can prove this, it doesn’t have to defame you, it just has to be false, to have caused you some sort of loss and to have been put there deliberately and maliciously. ‘If you can prove those things, you can go to

Facebook: Trade Plates

once every hour or something cars would appear there,’ Cassey explained. ‘Then around a year down the line Giles Usher came into the office and said ‘‘you’ve got to get on Twitter!’’ I remember the conversation we had where he was saying it’s really fun and I just replied, ‘‘140 characters? What’s the point in that? You can’t say a lot!’’ ’ So, why did Usher think it was such a great your ISP and say that person is putting on a false review. In theory, you can take legal action for compensation for malicious falsehood.’ Prestige Diesels’ Cassey mentioned that she had once had a customer who wanted to leave a bad review purely to damage her company’s reputation. And on the subject of false reviews, she said: ‘Customers have got brains and they can work out when it’s not a real review.’

Website: tradeplates.tv

Plates TV EPISODE 2 WE FIND OUT ABOUT USED CAR AWARDS WINNERS LAWRIES GARAGE BACK in December, Lawries Garage scooped the award for Best Used Car Dealer Under 50 Cars at Car Dealer Magazine’s Used Car Awards, but as a Volkswagen dealer, it hasn’t been the easiest time for people working with the brand. We caught up with sales manager David Henderson to find out how he dealt with the Volkswagen scandal and how customers have reacted to the news. ‘When the news first broke, there was a little bit of worry around it, but the good news was that the brands have put a lot out there to try to bring confidence back. With our used cars we can now offer a two-year Volkswagen warranty, which is a great offer. These kind of offers, deposit contributions and

servicing are working to bring customers’ confidence back.’ It doesn’t seem to have damaged Lawries’ sales though, as Henderson explained. ‘So far we’ve had our best numbers that we’ve ever achieved regarding Volkswagen, Skoda and Seat. The customers seem happy – they’ve enjoyed driving them for all this time, there isn’t anything wrong with the vehicles and so they’re still the cars they want to be driving.’ He added: ‘You do get the customers that mention the scandal, but in reality, if I was to think of the past two months, there have been very few. You just have to be positive and reassure the customer that it will get sorted. There’s going to be a fix in the very near future.’

EPISODE 1 platform? He replied: ‘What I found quite quickly when I followed people like Umesh Samani, Jim Reid and Caroline Shield was that there was a really nice group of dealers, all independents, who were all beginning to play on Twitter. I learnt a lot of good lessons and everyone was welcoming.’ He added that Twitter was never about selling cars for him, it was more about building his brand.

WHAT TO WATCH OUT FOR WITH THE CONSUMER RIGHTS ACT ARE you reading your contracts carefully? Well, you might want to check them twice after this cautionary tale from Nona Bowkis at Lawgistics. ‘For consumers, everything is now under the one act – the Consumer Rights Act,’ she said. ‘Arguably that gives consumers more rights, which means that the consumer has more rights with the finance house than the finance house does going back to the dealer because that’s a business-to-business transaction.’ It seems that to protect themselves, finance houses are introducing new clauses which will leave the dealer helpless if a problem occurs with the car. Bowkis explained: ‘Some of these clauses say that the dealer will indemnify the finance company, even for an alleged breach. We’ve found that some of the finance companies are a bit too quick to side with the customer, and that could mean that the

dealer has to give a refund because the finance company has decided to do so. We had one not so long ago when the company was trying to force our dealer to give the customer a refund before he’d even had a chance to look at the car. ‘We got involved, we argued for that and the independent inspection found that the customer had put petrol instead of diesel in the car.’ Neil Smith, operations director at Imperial Car Supermarket, explained what precautions his business has made. ‘We’ve never had anything like that, but obviously the new Consumer Rights Act has taken a bit of time to get to grips with,’ he said. ‘Luckily for us we’ve got a Primary Authority Agreement with Portsmouth City Council Trading Standards. ‘We work very closely with them and they support us in that area.’

Go to TradePlates.tv now to see our latest videos CarDealerMag.co.uk | 29

30 | CarDealerMag.co.uk

COUNTY DOWN: A Northern Ireland car dealer with over 100 years’ history has joined the MG Motor UK franchise. TM Martin & Son is a well-known dealership in Killyleagh, County Down. Back in 1907, the family-run business was first established as a cycle manufacturer. Since then, the business has been loyal to selling Longbridge-built vehicles, so it seemed fitting for the family to bring in the latest range of MGs. Dealer principal John Martin said: ‘To keep the tradition going, we wanted to get MG into our showroom again.’

Loyal to Longbridge, dealer joins MG

What has been hitting the headlines on the home front? Here’s a round-up of stories

WEST YORKS: Harrogate-based Vantage Motor Group has appointed John Barnes as market area general manager for West Yorkshire. The role has been created following Vantage’s acquisition of three dealerships in Leeds and Wakefield which increased its portfolio to 25 sites. Barnes has worked with the Toyota and Lexus brands for the last two-and-a-half years, formerly looking after dealerships in Cumbria and the Scottish Borders. He has 27 years of motor industry experience.

Key role for John following acquisitions

NEWCASTLE: Aston Martin has opened a new dealership in Newcastle – the first with partner Stoneacre Motor Group. The purpose-built state-of-the-art facility features a luxurious 14-car showroom for new and pre-owned Aston Martin sports cars, a separate ‘Q by Aston Martin’ lounge where customers can tailor their new car specification, a dedicated aftersales team and a workshop staffed by Gaydon-trained technicians.

Aston Martin arrives in Newcastle

DUNDEE: Volvo has opened a ‘VRE Concept’ showroom in Scotland as part of a £1million investment into its Dundee site. The state-ofthe-art showroom, which is right on the city’s waterfront, boasts a new Scandinavian-inspired layout, which sees 40 per cent of the showroom becoming a ‘living room’, whilst the remaining 60 per cent becomes the ‘street’. Customers wishing to relax can do so in the living room zone on Scandinavian-designed furniture, while enjoying Swedish treats and coffee.

Swedish treats on offer at showroom

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 31

New flagship HQ is in great shape LONDON: Classic car dealer Hexagon has moved into its new flagship headquarters on Great North Road, Finchley, following a huge redevelopment. Called The Hexagon, the site can now house the finest examples of classic and modern classic vehicles with room for more than 50 cars; not to mention chairman Paul Michaels’ collection of modern art. The next phase in the redevelopment of the firm’s headquarters is the opening of a new coffee shop. Interview, p16

Waxing works as a useful fundraiser

BRISTOL: Staff at a car dealership in Bristol have raised £220 for a dance charity in the city by getting waxed. Ollie Glossop and Mitch Clark, who both work at Wessex Garages on Hayes Way at Cribbs Causeway, had their chests and stomachs waxed in aid of Dance Voice, a dance movement psychotherapy charity based in Bedminster. Ugne Briedyte, data administrator at Wessex Garages, did the waxing free of charge as she took a body waxing course last year.

CAMBRIDGE: Infiniti has signed an agreement with the John Banks Group to open up a new Infiniti Centre in the city. The showroom is expected to be operational from mid-April and is set to have its full facility open by the end of the year. Located in Swann’s Road, the centre will use a short-term Infiniti showroom until full redevelopment work has been carried out.

John Banks Group joins Infiniti

WOLVERHAMPTON: MG Motor UK has welcomed Bunning of Wolverhampton as a new dealer. The family-run business, which is owned by Aaron Bunning and his grandfather, Dennis, was established in 1967. Since then, Aaron, operating as a sole independent trader, has worked incredibly hard with his team to build up the company. Aaron said: ‘We are really looking forward to representing a British brand that is so recognised.’

LONDON: Executives, business leaders and sports stars were among the 100 VIP guests hosted by Motor Village UK to celebrate the arrival of Jeep at Fiat Chrysler Automobiles’ flagship London dealer. Motor Village UK, just off London’s famous Oxford Street, is displaying Jeep vehicles in its stunning showroom for the first time this spring. The showroom has previously only sold Fiat, Alfa Romeo and Abarth vehicles.

Jeep is welcomed in fine style

NORFOLK: A King’s Lynn sales executive has been named a rising star after achieving record sales in just six months. Casey Mackenzie from King’s Lynn Volkswagen changed her career in September 2015 and has exceeded expectations by claiming the top salesperson title. Previously the 22-year-old had been the Volkswagen retailer’s receptionist and service advisor before turning her skills to sales. Having sold 61 vehicles in three months, Casey believes her success lies in her training.

BRADFORD: Bristol Street Motors Bradford, part of Vertu Motors, has renewed its support of Bradford Bulls for a second season. The Nissan, Renault and Dacia dealership on Thornton Road has announced it will continue to support the rugby league team in the new season of the Kingstone Press Championship. The renewed partnership will see the Bristol Street Motors logo continue to appear on the left sleeve of the club’s home and away playing shirts.

Representing a great British brand

Successful sales exec praises training

Dealership is a keen rugby supporter

32 | CarDealerMag.co.uk

DASHBOARD.

Around the world Dealer news from somewhere other than here

NETHERLANDS

SOMEONE had a bad day at the Porsche Centre in Amsterdam when a rare and very expensive 911 GT3 RS ended up partially submerged in a canal outside the building. The sports car had just been given new decals when the accident happened. It rolled off a ramp . . . and straight into the Oostwetering canal. A mechanic reportedly ‘made a mistake’ when moving the car, said to be worth in excess of £200,000.

CANADA

AN advertising flyer sent out by a dealership designed to attract buyers with the so-called ‘Canada Automotive Rebate Programme’ has caused controversy – because the programme doesn’t exist! The dealership, in the city of Surrey, British Columbia, has attracted the attention of advertising regulators – and even the boss of the business in question has called the promotion ‘a disaster’.

NIGERIA

ALIKO Dangote, said to be Africa’s richest man, has teamed up with two Nigerian states to bid for a majority stake in Peugeot Automobile Nigeria (PAN) Limited, a local joint venture with the French manufacturer. Peugeot top brass met President Muhammadu Buhari last year to discuss reviving production in the country.

CHINA

A DISGRUNTLED dealership customer decided the best way to solve his dispute with the Beijing company in question was to drive straight into into the showroom. The driver, a Mr Bai, is reported to have been unhappy with a car he bought last year and had started a legal case against the firm. He told reporters he was forced to drop the action, however, after his wife was allegedly threatened. Mr Bai also said he called the dealership to tell staff he was coming, and did not intend to hurt anyone, according to the Mirror website.

INDIA

INDIAN car manufacturer Mahindra is set to launch its e2o electric car in London soon. The move represents a move by the company to gain a foothold in an important car market away from India, where the compact all-electric city car has undergone extensive testing. The e2o, to be priced at around £13,000, is designed to rival traditionally-fuelled alternatives.

CarDealerMag.co.uk | 33

FINANCE.

Kia giving savings of up to £1,400 on certain models Customers don’t have to pay any deposit for any vehicle across range

ia Motors UK Ltd is continuing to offer a strong range of deals across the entire line-up. Customers can save up to £1,400 on selected models and enjoy 4.9 per cent interest across the Kia range, with no minimum deposit required and a generous selection of deposit contributions on most models. Zero per cent interest is also available on SR7 derivatives’ twoyear personal contract purchase agreements. Offers are available on Kia’s new models: the all-new Optima, all-new Sportage and the newly introduced Soul Urban. Kia’s superminis in particular continue to offer good value. The Picanto 1 can still be purchased at a great price, thanks to a £450 customer saving and a £1,000 deposit contribution when bought on PCP. The Rio offers a customer saving of £1,000 across the board and a deposit contribution of £600 available with 4.9 per

cent PCP. Offers are also available on mid-sized vehicles such as the new cee’d, which includes customer savings of up to £900 in addition to a £1,500 deposit contribution on every new cee’d financed on a 4.9 per cent PCP agreement. Kia’s popular SR7 range of vehicles, which includes the Picanto, Rio, Venga, cee’d and Carens, is available with zero per cent PCP and zero per cent deposit on PCP, lowering the entry to ownership level significantly. The zero per cent PCP offer on Picanto also includes a £500 deposit contribution, while Rio’s offer comes with a £250 deposit contribution. Kia’s new models also lure customers with strong offers. The all-new Optima is available

with a £1,500 deposit contribution on 4.9 per cent PCP, while the all-new Sportage boasts 4.9 per cent finance, with £500 deposit contribution on PCP agreements. The funky new Soul Urban made its debut on April 1. This model includes the Urban SUV styling pack seen on higher-grade models but for a more accessible price starting from just £15,500. The Urban comes with attractive offers too in the guise of a zero per cent APR on two-year PCP contracts as well as a Care-3 service package that covers the vehicle’s first three services for only £99. Kia’s popular Care-3 servicing plan will continue to be on offer for customers. This highly competitive service package deal means drivers’ first three services, which are normally due over the course of three years, cost only £99 for all SR7 grade customers. Similar rates are available for other model specifications.

iVendi launches online tool to boost eligibility factors IVENDI has launched an online tool that lets dealers and buyers look at detailed information about motor finance eligibility. Showroom Eligibility works for any dealer’s panel of lenders and focuses on credit rules, applicant rules and vehicle rules. Designed to be used by dealer and buyer together, it looks at a wide range of different finance products, with user control over the finance pricing. If an application might be turned down, Showroom Eligibility gives guidance about the rejection factors so that they can be potentially corrected or other products tried instead.

34 | CarDealerMag.co.uk

Chief executive James Tew, pictured, said: ‘On one level, this product is a new way for dealers and buyers to look together at motor finance offers in the showroom. ‘However, what we believe to be unique is the way in which this product creates, really for the first time, a means by which the dealer and buyer can dig down into the factors behind motor finance eligibility. This creates a level of insight and potential control over the motor finance process that has never previously been available.’

CARFINANCE 247

Tech firm celebrates rapid growth accolade CARFINANCE 247 was named northern England’s second-fastest-growing tech company at the Northern Tech Awards. Having increased turnover by 280 per cent in 2015 and with web visits surpassing the six million per year mark, the motor finance specialist is on track to smash its growth targets for 2016. Speaking after the prestigious ceremony at Liverpool’s Titanic Hotel, Carfinance 247 managing director Reg Rix said: ‘We’ve had some outstanding results this year so we were hoping to achieve a high ranking, but to be named as the second-fastest-growing tech firm in the north was beyond our expectations. We’re thrilled! ‘More and more people are seeing the benefits of what we have to offer. ‘We have momentum now and we are firmly stamping our authority on the marketplace as the UK’s number-one supplier of online car finance.’ The annual Northern Tech Awards, sponsored by technology investment bank GP Bullhound, identifies the fastestgrowing tech companies in the north of England and Scotland, showcasing the impact of digital talent across the region and highlighting its growing international importance.

IN ASSOCIATION WITH

You won’t achieve anything great in your comfort zone

ast month I talked about a piece of work that I had been initiating, and the negative responses I had received from a group of motor dealers. My main point was that the responses were based upon a range of assumptions and a feeling of fear. These included: the thought of trying something new and objections to leaving an advertising medium (even when we hadn’t tabled that idea in the first place). Some dealers had said they didn’t have the time to invest, and finally, a running theme was that there could be some negative responses on online mediums. So I want to carry on challenging these areas, in

‘Previously, when I asked dealers what their return on investment is, none of them knew!’ particular, trying something new and/or leaving an advertising provider. As someone who is largely focused on initiating change and innovation, these areas come easy to me, but not everyone is as easily swayed. Most humans hate change and will do anything in their power to stick with what or whom they know. Take bank accounts, home telephone, or gas and electricity providers. Once you have chosen one, the likelihood of changing to a new provider is so small that the government has put in place projects to switch people over to new providers. I recently read that between 40 and 50 per cent of all electricity customers are still with their original supplier

Ben

Garside TIME IS MONEY

and that 60 per cent of households haven’t switched gas and electricity providers in the past five years. Now this makes me wonder what the likelihood of a motor dealer switching from their motor advertising website is, or even just trying a new advertising channel? So, I challenge you to find out what your current Return on Investment is for your main advertising medium. Although we all know it is a simple thing to measure, many businesses still don’t do this regularly. Previously when I have asked dealers what their return on investment is, none of them knew and most had never even reviewed it! This measurement is obviously a simple one, but although it is simple, many businesses or marketers are not doing it and instead I get told numerous things, for instance: ‘Everything comes through it,’ ‘It’s the only way

Turn over page for more finance stories to get customers,’ or ‘I’ve always used them and I’m still here.’ This mindset is one that I want to change, as one day it is going to cost dealers either a lot of money or a lot of customers. The other area of exploration in this article is that as an industry we don’t want to try anything new. I am putting this down to fear of failure, as having read a number of books and articles regarding the fear of failure, it fits well. Deep down we all have a fear of failure, but most of us won’t admit to it. We all go through fear, either thinking we aren’t good enough or worrying about what would happen if something went wrong. It is a natural emotion. However, we need to challenge ourselves and understand that failure is a part of our lives, and that great things have never come from comfort zones.

Who is Ben Garside? Ben is marketing manager for First Response Finance. Call him on 07817 518739 or email ben.garside@frfl.co.uk

CarDealerMag.co.uk | 35

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . ROADSTERS AUDI TT ROADSTER

BMW Z4 THE second-generation BMW Z4 may have been launched back in 2009, but, facelifted in 2013, it is still proving popular. BMW is currently offering its Z4 sDrive18i Roadster on a four-year finance deal, with APR and interest rates of 2.9 per cent. A customer deposit of £5,114 is asked for, which is bolstered by a BMW deposit of £2,637.71. This is followed by 47 monthly payments of £299, after which the customer would have paid a total of £19,167. At the end of the term they have the option to either return the vehicle, or purchase it outright. Should they choose the latter, a final payment of £9,728.15, plus a £1 option-to-purchase fee is asked for. In total, £28,896.15 would have been paid for the vehicle, which is £798.85 less than the car’s OTR price of £29,695. However £2,637.71 of this figure is made up of the BMW deposit contribution.

THE TT is the most expensive of the trio of roadsters here. The German carmaker is currently offering its TT Roadster S line 2.0 TDI ultra model on a three-year finance agreement, with APR and interest rates of 6.8 per cent. A customer payment of £6,817.37, and a centre contribution of £4,000, combine to form the deposit of £10,817.37, which starts the deal. This is then followed by 35 monthly payments of £329, which add up to £11,515, and take the total amount paid by the driver to £18,332.37. At the end of the finance term, if the customer wishes to keep the TT Roadster, an optional final payment of £16,835.27, plus an option-to-purchase fee of £10 is asked. In total, the customer will have paid £35,177.64 for the car, which is £82.64 more than the vehicle’s on-the-road price of £35,095.

New appointment as Close Brothers looks at its strategic direction Director of strategy will be ensuring a ‘robust plan’ is in place

lose Brothers Motor Finance has appointed a new director of strategy to assist in shaping the business’s strategic direction. Chris Bosworth joins the business’s leadership team in a newly-created role. This appointment comes at a time when the motor industry is facing many changes such as increasing digitalisation, evolving technology and changing customer buying patterns. Chris will develop Close Brothers Motor Finance’s support for its dealer partners as well as focussing on the strategic direction of the company in terms of markets, products and routes to market. James Broadhead, CEO of Close Brothers Motor Finance, said: ‘Helping dealers grow and overcome business challenges is a crucial part of

36 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

our business and is something we will continue to be at the forefront of. ‘We are delighted to have Chris on board to work with us and our dealers to help re-evaluate our processes and to see how we can offer our dealers and customers the best service possible.’ Chris Bosworth, director of strategy, Close Brothers Motor Finance, said: ‘I look forward to working closely with James and the team to help shape Close Brothers Motor Finance’s business strategy so we can be prepared for the future requirements of the industry. The motor finance market is facing unprecedented change

and ensuring that we have a robust plan in place means we will be able to continue to help our dealers achieve success.’ Bosworth joins the board of directors having spent three years in the corporate development team at Close Brothers Group in London where he worked on a range of strategic initiatives as well as merger and acquisitions activity. He started his career in investment banking, working with Europa Partners and Hawkpoint (now Canaccord Genuity). Close Brothers are experts in motor finance and have been helping people buy vehicles for 25 years. Working in partnership with over 8,000 motor dealers, the company specialises in financing new and used cars, motorbikes and light commercial vehicles.

IN ASSOCIATION WITH

MAZDA MX-5 THE cheapest of the trio but not lacking in style, Mazda’s all-new, fourth-generation MX-5 has won no fewer than 30 awards since it was launched last year. All variants of the model weigh in at less than £30,000 on the road and the one to buy is the higher spec, 160PS Sport Nav. The Sport Nav is currently offered by Mazda on a three-year, 3.9 per cent APR finance agreement, with an interest rate of 2.01 per cent. A deposit of £3,312.50 kicks off the deal, followed by 36 monthly payments of £379, which add up to £13,644. So far the motorist would have paid £16,956.50. At the end of the three years, should they wish to purchase the vehicle outright, an optional final payment of £9,207.62 will apply, which includes interest charges of £1,799.12. In total the customer would have paid £26,164.12 for the MX-5, which is only £1,799.12 more than the vehicle’s on-the-road price of £24,365.

PARAGON CAR FINANCE

Firm’s three new major account managers will help business expand

Attractive offers for customers are continuing in April

PARAGON Car Finance, the vehicle finance arm of Paragon Bank, has appointed three new major account managers to expand business across the UK with large brokers and dealer groups. Heidi Liddiment joins as a major account manager for the south, bringing a wealth of experience in account management and new business development from her pervious role as area sales manager at Barclays Partner Finance. Steve Williams will cover the northwest. Williams is also a former area sales manager at Barclays Partner Finance where he successfully grew business amongst franchise and prestige dealers. Finally, Donna Hodgett will provide the link with dealers and brokers in East Anglia, introducing Paragon Car Finance to dealers in the east of the country. n Now turn to page 85 for ‘Money Talks’ – a great new column from Paragon Car Finance which will be appearing every month in Car Dealer Magazine.

IN THE first part of 2016, MG Motor UK ran an attractive range of offers for customers which are set to continue into April. Customers looking to get a new car need look no further than the super-fun supermini, the MG3. MG is currently offering the car for as little as £109 per month with a lower deposit of £1,859 when opting for the 3Time. The popular offer of free insurance can also be used with this deal. Those looking to go large in size and features, yet still keep the fun, can opt for the MG6 which is also available with a reduced deposit of only 20 per cent and a monthly payment of only £185 (based on an entry-level model with a deposit of £2,895). As an incentive to those who haven’t yet sat behind the wheel of an MG, a free gift is given for every test drive taken.

CarDealerMag.co.uk | 37

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

FIN A

DEALER RECOMMENDED

2016

MP A N I ES

AM DEALER RECOMMENDED FOR FINANCE 2016

UK - GAMECHANGER OF THE YEAR (MOTOR FINANCE) BLACK HORSE FINANCE

A better way of doing business.

Discover a better way at:

blackhorse.co.uk/dealerportal 38 | CarDealerMag.co.uk

BIG MIKE.

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

General public takes much more than the biscuit for dishonesty

y patience, along with my ‘no-quibble’ guarantee, have been sorely tested in the past couple of weeks. Why? Because I’m sick to the back teeth of the poor reputation that our industry has when it’s others that are taking the pee. Ask anyone in the street if they’d trust a car dealer and the answer you’ll get is ‘no’. In reality, though, it’s the general public that can’t be trusted, not us. And yes, I am absolutely fuming… A couple of weeks ago, I sold a very tidy Peugeot 407 HDi Station Wagon. Not my usual cup of tea, but a fairly honest workaday family car that’s always going to find a new home if offered at the right price. The car was in tidy enough condition, with just shy of 100k on the clock, smart half-leather trim, nearly-new tyres and a decent service history. It was easily worth the £2,350 I was asking for it, so I didn’t really bat an eyelid when a customer came on to the lot, had a cursory look around it and offered to buy it without even haggling. A test drive, he said, wasn’t required, as I offered all my cars with a three-month warranty and a seven-day noquibble full return guarantee. His last car was a 407 Station Wagon, so he knew exactly what to expect from the driving experience, and because he was currently without a car, he was happy to pay for it with his credit card and drive away that day. Hindsight, they say, is a glorious thing. And when I look back at the circumstances, I really could kick myself for not seeing this one coming. Yet, even when you’ve been in the trade as long as I have, it’s very easy to get sucked in by the promise of a quick and convenient sale. I sold the Peugeot on a Thursday morning. The following Monday afternoon, the buyer drove it back to me. It was running like a sack of you-know-what, black smoke pouring out of the back end and a curious vibration coming from under the bonnet. It was, the owner said, a complete disaster of a car, hadn’t been right since he got it, and he was returning it under the terms of my ‘no-quibble’ seven-day guarantee. In such circumstances, there’s not a huge amount you can do – it’s a risk you take if you offer a full service guarantee of the type I do, and the occasional car that comes back is usually offset by the fact that the vast majority of honest buyers take comfort in the guarantee, which is generally good for business.

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

Therefore, I did the decent thing and transferred the money back on to the bloke’s credit card, before driving the misfiring Peugeot round to the naughty corner, where I’d get my man to have a look at it. The following day, he did. And what we found wasn’t pleasant. First up, we had to boost-start it, which seemed a little odd seeing as I’d had it in stock for five weeks and never once encountered an issue getting it going. But then, there were bits on the 407 that were different from when I sold it, notably the front tyres, which were originally a nearly-new budget brand. In their place was a pair of once-expensive Goodyears, albeit now close to useless, as they were bordering on illegal. The battery, I suspected, was not the one it had on it when it left my lot – something I was subsequently able to prove when I looked at the images I’d taken of the car for my dealer listing on

‘I really could kick myself for not seeing this one coming’ eBay – unless, of course, it was a magic colour-changing battery, as the one on the car was white and the one in my pictures was black. The cause of the poor running, after a lengthy internet investigation, turned out to be the car’s injection ECU. Apparently, this isn’t uncommon on 407s. But what was uncommon was for a 2005 ECU to be found on a 2007 car – unless, of course, someone had been there before. And that was what the date stamp on the ECU was leading us to believe. Time, then, for some further investigation... That evening, my mechanic and I took a ride out to the buyer’s home, which turned out to be in one of the less salubrious parts of Birmingham. There, parked outside, was a black 407 Station Wagon, suspiciously wearing a pair of recently blacked-up, nearly-new budget tyres. I’d bet my bottom dollar that under the bonnet there was also a black battery where a few days earlier there would have been a white one… Of even more interest, this car was a 2005 example, not a 2007. Which means it would have left the factory with a 2005 injector ECU, which, if I were a betting man, I’d wager had recently developed a fault. But I’ve left that one in the hands of my lawyers…

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 | 39

FORECOURT.

Jaguar F-Pace Architecture chief engineer Simon Barnes discusses what the new SUV means for the manufacturer How important is this car for Jaguar? This, for me, is massively important. We have two great products out there already with XE and XF, and they’re two cars appealing to those in the sedan market. F-Pace is a no-holds-barred SUV that can do anything. It can go from a driver’s car to a family car to a towing car – it offers everything for the customer. This is, for me, the car that is really going to put Jaguar on the map. It’s going to help reduce the typical age point of those interested in Jaguar, as well as bring more families into the market. It’ll show more than anything that Jaguar builds good cars. Do you think the F-Pace will give UK dealerships a different angle on how they sell their cars? Yes, and we’ve spent a lot of time working with our dealers – let’s face it, we can’t sell cars without them – and there was a huge event previous to this international media launch where we engaged with the dealerships to tell them about the car and get their opinion on it.

We’re sure that the car sells itself as soon as you sit in it, though. Were there any immediate hurdles to jump when developing this car? We worked on the front and rear suspension quite a lot because the car sits quite high. The front subframe looks quite similar to that found on a sedan, but we needed to keep the rigidity between that and the body, which required a lot of work. We also wanted to make sure that refinement was right up there, even on the smaller-engined models. The customer will never complain if you make something better. We also wanted to make sure we had the right balance of ride comfort and sportiness. Did you still want to maintain a certain level of off-road usability with this car? We do offer rear-wheel drive on the smallerengined cars but that’s got a lot to do with price points. Evoque two-wheel drive has also done incredibly well, so we’ve taken some ideas from that. We absolutely wanted to protect the

all-wheel-drive capability with the car though, because it’s another USP for a Jaguar SUV. It is competent off road. We’ve used our expertise learnt with Land Rover and brought that to Jaguar. We’re all one company so we can work together. Do you think the F-Pace is going to push the popularity of the brand even further? It’s got to and I firmly believe it will. The huge publicity that we’ve experienced with XE and XF is excellent but it left us still limited to a particular audience. With F-Pace, as an SUV erring on the sporty side but also being very practical, it has to move the brand’s popularity on again. You can see the car when you drive past a Jaguar dealership and it’ll draw you in there. It’ll be interesting to see when people are brought into the dealership because of F-Pace whether they choose the car or another model. And once you get customers in there and the dealers are motivated and believe in the product – which they do – you’re going to sell cars.

THE KNOWLEDGE

Model: Jaguar F-Pace R-Sport Price: £40,175 (as tested) Engine: 2.0-litre turbocharged diesel Power: 177bhp Torque: 430Nm 0-60mph: 8.2 seconds Top speed: 129mph Economy: 53.3mpg (combined) Emissions: 139g/km

TARGET BUYERS: Families wanting more space in an attractive and functional package

THE RIVALS:

Porsche Macan, Audi Q5, BMW X3

KEY SELLING POINTS: 1. Truly involving driving experience 2. Good range of engines and specifications 3. Solid interior and exterior fit and finish

DEAL CLINCHER:

A good variety of engines will appeal to many different drivers, with a choice for anyone 40 | CarDealerMag.co.uk

on test

Jaguar’s compact luxury performance crossover was taken WHAT IS IT? The F-Pace is a landmark car for Jaguar. It represents a huge push forward for the brand, as for the first time it is offering a luxury SUV that maintains the firm’s sporting edge. With four strong engines, there’s a powertrain for each and every type of driver. The space frame is constructed almost entirely from aluminium, ensuring the large off-roader maintains rigidity while also remaining as light as possible.

WHAT’S UNDER THE BONNET? The F-Pace is offered with four engines to begin with – a 2.0-litre Ingenium diesel, 2.0-litre petrol, 3.0-litre diesel and a range-topping 3.0-litre petrol V6. While the 3.0-litre petrol certainly makes the best noise, the 2.0-litre diesel will undoubtedly be the most

popular, and thankfully it’s the one we’ve spent the most time in.

WHAT’S THE SPEC LIKE? The F-Pace is offered in five specifications: Prestige, Portfolio, R-Sport, S and First Edition. Such a wide variety of choices means that the F-Pace should suit a variety of budgets. Our car came in R-Sport form, but even in entry-level Prestige, the F-Pace includes an impressive amount of standard equipment. On the inside, the F-Pace R-Sport features an excellent 8-inch InControl navigation system, which incorporates Bluetooth connectivity and multimedia functions. Leather seats comes as standard in R-Sport trim, with the front two heated and electronically adjustable. On top comes dual climate control, R-Sport

REAR

Car can be opened at the boot with SmartKey wristband

WHEELS

FRONT END

21-inch wheels come on top-of-the-range models but we’d stick with the 19s

Flat Jaguar badge houses radar cruise control and safety systems

for a thorough spin by Jack Evans – and he was left suitably impressed by it branded multifunction steering wheel and sports pedals. Everything inside has a robust feeling to it, from the push-button controls surrounding the touch screen to the window switches. Outside, the R-Sport features 19-inch alloy wheels and custom front and rear bumpers. Also worth mentioning is the SmartKey wristband that takes the place of the key. Wave your wrist over the ‘J’ at the rear of the vehicle and it will magically open.

WHAT’S IT LIKE TO DRIVE? The car’s handling feels spot-on, and means you can place it accurately through corners. There’s very little feel, yes, but then we’ve come to expect this from modern steering systems. With the car in sport mode and gears selected

through the paddle shifters, the F-Pace is exciting and entertaining to drive, dealing with hairpin bends with minimal fuss and an impressively small amount of body roll. We also tested it off road and it shone even on the rough stuff. Despite the road tyres, the on-board systems made short work of steep inclines and deep water.

WHAT DO THE PRESS THINK? Autocar said: ‘The Jaguar is a car with keen steering, fine dynamism, a smooth ride, and is an easy SUV in which to find yourself in a comfortable driving rhythm.’

WHAT DO WE THINK? As far as releases go, this is a big one. Jaguar has

a lot riding on this car, so it’s pleasing to say that it’s a truly accomplished and well-rounded SUV. With space and comfort for five people, as well as enough driving poise to keep whoever’s behind the wheel happy, the F-Pace manages to achieve the rare combination of a sporting drive and usable size. You can even fit two bags in the back. Of course, it’s worth remembering that the £34,115 for the base-model car is no small figure, but it’s one that will surely attract new buyers and fresh customers to the brand. As a package, the F-Pace is truly impressive as it offers space and – in most cases – economy. There’s no doubt that this will be a truly popular car. There’s just one question: when can we pick up our keys? CarDealerMag.co.uk | 41

FORECOURT.

THE RIDE

The suspension is fidgety around town but makes sense when up to speed

BRAKES

Uprated front Brembo brakes provide excellent levels of stopping performance

DIFFERENTIAL

Makes all the difference when cornering hard, eliminating understeer

DS 3 Performance Citroën wants to bring the power back into its DS range and Jack Evans sees if the new hot hatch packs the right punch WHAT IS IT? Some of you familiar with the DS brand may remember the company’s last hot hatch, the DS 3 Racing. With wildly exuberant looks, the Racing didn’t get a huge amount of traction after launch. Now, DS is bringing the power back with the DS 3 Performance. Offering more power than the standard car, as well as Brembo front brakes and a limitedslip differential, the Performance is for people who want more punch when stepping on the accelerator.

WHAT’S UNDER THE BONNET? Powering the DS 3 Performance is a four-cylinder 1.6-litre turbocharged petrol engine that puts out 205bhp and 299Nm of torque. Driving the two front wheels through a six-speed manual gearbox, that unit allows the DS 3 Performance to reach 62mph in 6.5 seconds and onwards to a top speed of 143mph. A slightly fruitier exhaust system means the Performance pops and bangs like a 42 | CarDealerMag.co.uk

hot hatch should. Economy figures are good at a combined 52.3mpg and emissions a respectable 125g/km.

WHAT’S THE SPEC LIKE? There are three trim levels to choose from – Performance, Performance Black and Performance BRM Chronographes. The base level loses out on some extra touches such as a gold gear-change surround and Active City Brake, but in reality all three have a similar and decent amount of standard equipment. The cabin looks pretty similar to the standard car, with added plastic trim pieces to differentiate it. Outside, there are Performance badges on the flanks and nose, plus a few subtle touches on top.

WHAT’S IT LIKE TO DRIVE? From the outset, you notice slightly more heft to the steering compared with the standard DS 3. Another thing you feel immediately is the Performance’s ride. Around town

it’s jiggly and unsettled, and can be upset by even the smallest of bumps. However, pick up your speed and those worries soon slip away. It’s easy to gain speed quickly, and a shorter-throw gearbox makes quick work of shifting cogs, while cornering is flat and sharp.

WHAT DO THE PRESS THINK? Autocar said: ‘Handing is respectable, confidence-inspiring and it exudes more of an edge than something overtly accessible like Volkswagen’s Polo GTI.’

WHAT DO WE THINK? The DS 3 Performance is a truly respectable attempt by DS to create a hot hatch. It has decent levels of performance and handling, as well as a high level of included equipment and technology. Running costs aren’t sky-high, either. However, its price tag puts it in the same field as some serious rivals, which may make its life a whole lot more difficult.

THE KNOWLEDGE Model: Price: Engine:

DS 3 Performance £20,495 Four-cylinder turbocharged petrol Power: 205bhp 0-60mph: 6.3 seconds Max speed: 143mph MPG (comb’d): 52.3 Emissions: 125g/km

TARGET BUYERS: Drivers who like the stylish and quirky looks of the DS 3 but want a little more punch to go with it

THE RIVALS: Ford Fiesta ST, Mini Cooper S, RenaultSport Clio

KEY SELLING POINTS: 1. Decent levels of interior equipment and technology 2. Impressive on-road characteristics and handling 3. Spot-on driving position

DEAL CLINCHER: The DS 3 Performance offers everything you’d want in a hot hatch – good looks, hotterthan-standard performance and a solid cabin

CarDealerMag.co.uk | 43

FORECOURT. LOOKS

INTERIOR

Land Rover was brave to take the first step into the convertible compact SUV sector, and they’ve nailed the design.

The interior is luxurious, spacious and relatively noise-free – an impressive feat, we think.

POWER

The 2.0 litre Ingenium Diesel engine and nine-speed automatic ZF transmission could do with some refinement.

Range Rover Evoque Convertible Laura Thomson tests the world’s first luxury SUV convertible – brought to us by Land Rover. What does she think of it? WHAT IS IT? Four years after its controversial reveal at the 2012 Geneva Motor Show, the distinctive convertible compact SUV has become a reality – in the form of the Range Rover Evoque Convertible. Based on the same platform as its hard-top sibling, and featuring much of the same spec, the Evoque convertible looks almost too luxurious to take out of town.

WHAT’S UNDER THE BONNET? A choice of two powertrains are offered in the 4x4 – a 240hp Si4 petrol and a 2.0-litre turbocharged Ingenium diesel engine. The latter puts out 180bhp and 430Nm of torque through the car’s Efficient Driveline four-wheel-drive system. Impressive fuel economy of 49.6mpg and diesel emissions of 149g/km of C02 make the model one of the most fuel-efficient that Land Rover has to offer. As with the powertrains, the nine-speed automatic gearbox 44 | CarDealerMag.co.uk

is lifted straight out of the standard Evoque. The ZF transmission has suited the standard model up until now – however, we’re not sure it suits the heavier convertible quite so well.

added weight of the folding roof – 1,967kg compared to the coupe’s 1,690kg – is noticeable when heavily accelerating.

WHAT’S THE SPEC LIKE?

Auto Express says: ‘The Evoque Convertible won’t be to all tastes, but the SUV class is image-led and Land Rover is taking full advantage.’

The Evoque’s tablet-like 10.2-inch display responds to simple pinch and swipe motions, but can prove difficult to read and operate when the roof is down due to sunlight casting shadows and reflections across it. The roof can operated at speeds of up to 30mph (21 seconds up, 18 seconds down) and unlike some other convertibles, when it is folded down, it does not compromise on rear view or boot capacity which is a modest 251 litres.

WHAT’S IT LIKE TO DRIVE? The convertible’s powerful engine and impressive array of driver aids mean that it can perform well across a variety of roads. That said, the

WHAT DO THE PRESS THINK OF IT?

WHAT DO WE THINK OF IT? For fans of thoroughbred 4x4s, the Evoque convertible wouldn’t be the obvious choice. Practicality is limited in the four-seater soft top, and despite a clever ski hatch – which comes as standard on the higherspec LUX model –the model would only realistically provide a comfortable journey for two, making use of the rear seats as extra luggage space. However, drivers looking for the benefits of both a 4x4 and a convertible can’t go wrong with the Evoque.

THE KNOWLEDGE Model:

Range Rover Evoque Convertible 2.0-litre 4WD HSE Dynamic Price: £47,500 Engine: 2.0-litre turbocharged diesel Power: 180bhp/430Nm 0-60mph: 9.7 seconds Max speed: 121mph MPG (comb’d): 49.6mpg Emissions: 149g/km

TARGET BUYERS: Fans of luxury D-segment convertibles, looking for something a bit more.

THE RIVALS:

None yet. Other manufacturers might follow suit, though.

KEY SELLING POINTS: 1. Certainly not lacking in the style stakes. 2. Reinforced chassis promises strength of a coupe. 3. All-terrain progress control.

DEAL CLINCHER: The Evoque convertible boasts the best parts of both a convertible and a 4x4.

Saving you time, effort & money. Expert dealer finance solution with an extensive lending panel, offering same day prime and non-prime payouts. Effective DealerHub system & tools built in collaboration with dealers, specifically for dealers. A friendly, experienced team of ex-dealers & car finance experts on hand to help out. Time saving loan comparison service & access to a full underwriting department. Sell more cars to more customers & receive faster funding decisions.

Don’t just take our word for it... are an absolutely amazing team and great have sold more cars on finance which is due to the “ Dealerplus “ We to deal with. They are always in the know with any simple finance application process and the response

“

notifications Dealerplus offers on their online system.

Danny, Sales Manager at Basildon Car Sales

“

problems and they are always happy to help.

Shairaz, Director at Imiles

offers a wide range of lenders and finance far the best point though is that we have already “ Dealerplus “ By products, we’ve definitely seen an increase in sales managed to convert deals because of the Dealerplus

“

since using them. Their finance software is so easy to use and love the fact that we were able to get an instant lending decision.

system that would have otherwise walked away from the dealership to sort their own finance.

Lee, Sales Manager at Low Cost Motor Company

Matt, Sales Manager at Motor City Plymouth

“

Visit www.dealerplus.co.uk or call us on 0333 Mon - Thurs: 9am - 7pm Fri: 9am - 5.30pm Sat: 10am - 4pm

222 4070

Dealerplus, Waterloo House Fleets Corner, Nuffield Rd Poole, Dorset, BH17 0HL

Whichdeal Limited trading as Dealerplus is authorised and regulated by the Financial Conduct Authority. FCA No. 456327 | Co. Reg. No. 04997789 | DPA No. Z8890305 | Tel: 0333 222 4070 | Fax: 08712 370272. A full quotation to SECCI compliance is available on request. CarDealerMag.co.uk | 45

FEATURE. MAZDA CX-3: ICY ESCAPADES

On an Arctic roll... This small four-wheel-drive car deserves much respect, decides Jack Evans, as he goes on an epic journey to the northernmost tip of Europe.

hen you’re about to embark on a 500-mile Arctic Circle adventure through some of the harshest terrain that Mother Nature can throw at you, it’s always nice to have a few words of encouragement. Perhaps from a local who knows the territory. Maybe a taxi driver. ‘So, how are the roads further north? Not as bad as this, surely?’ ‘Oh no, worse. Much, much worse than this.’ It seems that a trip to test Mazda’s four-wheeldrive CX-3 on a journey from Luleå in Sweden to the most northerly tip of Europe – Nordkapp in Norway – shouldn’t be undertaken lightly. Designed to showcase the car’s off-road systems in the most gruelling way, the trip was there to let us know that the Mazda CX-3 AWD ‘isn’t a car that people vaguely consider to be a “soft roader” but in fact one actually capable of seriously more,’

46 | CarDealerMag.co.uk

as managing director Jeremy Thomson said. A luxurious point-to-point it wasn’t to be but a fullon adventure. Game on. Placed under the larger CX-5, the CX-3 has been a hugely successful car for Mazda, owing to its decent levels of equipment and usable size that sits well with families and young professionals alike. Combining crossover looks with a range of engines to suit a variety of customers, it’s easy to see why it’s been so popular. Although we’d been sent to see how the little Mazda coped with some seriously icy roads, we would also be treated to some of the most breathtaking scenery imaginable. Best get cracking then. After a reasonably long flight from Heathrow to Stockholm and then on to Luleå, we were allowed a quick blast in the car to get a variety of photos sorted. We’d been warned that the following day would be an all-out driving expedition so, eager to make the most of the time, we headed out on to a frozen lake. Having come straight from a damp

and soggy London to a frozen winterland in a matter of hours took a little getting used to, not least the immediate lack of traction when driving. A slightly startling image was a frozen lake in front of us, pristine and dusted with snow, being churned up by one MD hellbent on giving The Stig a run for his money. Thomson, it seems, isn’t afraid of pulling a couple of donuts. The only thing to say at the time was ‘How cool is that?!’. It’s not often you see a managing director pulling big slides in a crossover, but then maybe we should see that more. Those familiar with more in-depth off-roaders may think that the lack of rough-road specific buttons in the CX-3 mean it’s a less-than-capable 4x4. However, this really couldn’t be further from the truth, as the car’s systems are designed to be fluid and unobtrusive. Although we were driving on frozen roads with relative ease, the system was working overtime to keep everything on the straight and narrow.

PHOTOGRAPHY: JONNY FLEETWOOD

That and the heavily studded snow tyres. The four-wheel-drive system is meant to provide people back in Blighty with a little more traction in difficult conditions, and as Thomson puts it: ‘People may never feel the technology working, but that’s the point of it really. It kicks in in an almost seamless way that doesn’t become interruptive of your driving fun.’ It certainly seemed to be doing the trick for us. Though we’d jumped at the chance of driving on a frozen lake, it wasn’t long before travellertiredness kicked in and both photographer Jonny Fleetwood and myself were ready to head back to the hotel. After all, a six o’clock departure awaited the following day. That dreaded buzzer rang the next morning, signalling that the day had begun, and we had a dauntingly long drive before us. After a swift (but fantastic) breakfast, it was straight into the car and off. Next stop: the Nordkapp. With more than 3,000 CX-3s having been sold

in the UK since its launch in March 2015, it’s been an immensely important car for Mazda. Interestingly, it has bucked the trend towards diesel engines in that time, with 74 per cent of CX-3s being specified with a petrol engine rather than an oil-burner. Of these, 85 per cent have been two-wheeldrive, while just 15 per cent have had all four wheels driven. But as we headed further north after leaving the hotel in Luleå, I was glad that we had the minority vehicle. Driving on a motorway in snowy conditions is a challenge to begin with, before you take into account lorries that refuse to travel any slower than 65mph. Overtaking becomes a grin-andbear-it manoeuvre, with errant snowdrifts that have slipped into the outside lane the cause of

some rather hairy moments. Thankfully, the little Mazda took it all in its stride, settling down well on the motorway thanks to a nicely weighted sixspeed manual gearbox that seemed well suited to the car’s character. Like a terrier puppy, the CX-3 is a car that refuses to give up. I’ve driven cars three times the size and boasting an awful lot more ‘off-road’ technology that haven’t dealt with slippery conditions as well as the CX-3 did. The northern part of Sweden is definitely a closed shop during the winter months, with roadside attractions and restaurants boasting very little welcoming charm. It’s not difficult to see why – each and every road is a slippery nightmare, and not something you’d want to

CarDealerMag.co.uk | 47

FEATURE. MAZDA CX-3: ICY ESCAPADES

The Mazda CX-3 AWD proved to be a surprisingly easy car to drive in tricky conditions from Sweden all the way to Norway via FInland

NORWAY

Finish Nordkapp

Route Start Luleà

FINLAND

SWEDEN

be travelling down half-heartedly. The first 300-odd kilometres flew by, and before long we were heading into the Arctic Circle. You’d think that given the weight the area’s name carries, there’d be some sort of impressive structure or landmark. Unfortunately, a rather diminutive sign marked the occasion. A sign which, despite the friendly nature of the Swedish people, had been shot at by rifle-wielding passersby. Stopping just briefly enough to notice this, we got cracking once more with windows rolled up and doors locked. Just in case. As we carried on our journey through ever-dropping temperatures, it was easy to see why the CX-3 has taken off in quite such a big way back in the UK. It has decent levels of equipment inside and drives an awful lot better than a small crossover should. The steering is accurate and made it easy to place the car on slippery roads. But how to showcase this sort of thing to customers back home? Well, Thomson thinks dealers should be prepared to give those interested in four-wheel-drive Mazdas a more 48 | CarDealerMag.co.uk

interactive experience when buying a car. ‘We can get greater traction if we really demonstrate the qualities of the car beyond taking it on a traditional road route, and particularly with a 4x4 if we show the customer the way to get the most out of the car’s capabilities.’ A more dynamic approach to test-driving is certainly a way to attract a more off-road-savvy customer. The way the CX-3’s technology was working as we battled our way towards the border with Finland, you could see how a more immersive experience would better portray the car’s talents. Our stint through Finland was to be brief but it appeared that the weather was actually improving as we undertook the short 200-kilometre stretch through our second Nordic country. We’d expected the reality to be the reverse – heading north initially conjured up images of blizzards

and plunging temperatures, but in fact the sun made its way out and the country began treating us to some awe-inspiring views. Although the car’s fuel economy had taken a slight dive as a result of the larger tyres and snow spikes, the CX-3 still drank very little fuel. This didn’t worry us particularly, and neither does it appear to bother buyers back home. Thomson told us how ‘most people who take a 4x4 as an option already have a slight dip in MPG in mind.’ It’s true enough – the vast majority of people who want a four-wheel-drive aren’t going to be worried about a slight knock in consumption, especially if the car is capable enough on the rough stuff to make up for it. Although the petrol is the favoured layout of cars in Britain, our particular Mazda was using diesel. Despite lacking the free-revving nature of the petrol, it had plenty of grunt required to push through deeper areas of snow and ice. Driving on ice means a complete rethink of driving style. Short-shifting helps keep revs low and prevents the wheels from spinning too much, and mid-

INTERVIEW: Jeremy Thomson

corner adjustments have to be extremely subtle to prevent the car from becoming unsettled. Thankfully, the CX-3 is a surprisingly easy car to drive in tricky conditions, and the four-wheeldrive system it uses works with very little fuss. Although there aren’t any dedicated buttons for the technology, it’s ideal for owners in the UK. Even on a damp country lane the system will undoubtedly come in handy. Finland came and went without a hitch, with the roads surprisingly improving on those we’d experienced so far. A bond was definitely forming between car and driver, especially with the heated seats. These had been wisely specced in our chosen cars, and each venture outside was done so safe in the knowledge that there was a warm cabin to return to. That said, the CX-3 isn’t a large car, and the entire back

What was the reason behind this extraordinary trip? To show the abilities of the car in an unusual environment. About 15 per cent of people have opted for a 4x4 CX-3, and what we’re demonstrating is the general dynamics of the car. I certainly think trips like this demonstrate that this isn’t a car that is incapable of quite impressive driving ability. Having said that, neither do we pretend that it is a true off-roader. But for inclement weather in the UK or different conditions it’s a very capable car. The purpose of this trip was to refresh people’s thinking of our global sell, which has gained incredible traction in every single region, and we’re seeing strong customer demand for the car now. Our reason for highlighting it with this particular event is to create an interesting and engaging driving experience for a select few, as well as to refresh people’s thinking about the car about a year after its initial launch. The story was put around a car that people vaguely consider to be a ‘soft roader’ but is actually capable of seriously more because of the way we deploy the four-wheel-drive technology. It makes it a very seamless and easy-tolive-with specification. What do you think people are looking for when they buy an off-roader? People who are prepared to buy a four-wheel-drive want a seamlessly effective off-road system, and I don’t think they’d be worried about compromising on other areas such as MPG to get that. Most people who take 4x4 as an option already have that in their thinking. Is the all-wheeldrive system used

seats and boot were needed to take our travelling gear and camera equipment. It’s worth noting that a fully-specified CX-3 comes perilously close in price to its larger brother the CX-5, which offers significantly more interior space. After stopping off to capture photos of giant herds of reindeer (and narrowly avoiding a few collisions with them, too) we got well on our way travelling through our third and final country – Norway. Before we’d even set off we’d been told by Graeme Fudge, director for public relations

in the CX-3 different to those offered by other manufacturers? Our system is very intuitive, perhaps more so than others in the market. It’s a more effective use of the technology, too. People may never feel the technology working, but that’s the point of it really. It kicks in in an almost seamless way that doesn’t become interruptive of your driving fun. If anything, it opens up more driving fun, as we showed on a frozen lake! What’s the target market for the CX-3? Both CX-3 and CX-5 are selling very successfully in the UK and also globally. We tend to find that the demographic of our cars is very broadly spread. It’s often difficult to be too prescriptive for an immediate target audience. In terms of what we call our ‘consumption’ audience, they’re much more broadly spread. Could you see this car being sold differently to other Mazda vehicles? As much as we have worked to give journalists a unique view of the car, which gives you an insight into its capabilities, I think dealerships need to think very creatively about the way in which they conduct customer test drives. We can get greater traction if we really consider how we demonstrate the qualities of the car beyond taking it on a traditional road route, and particularly with the 4x4 how we show the customer how to get the most out of the car’s capabilities. We need to consider very carefully what the customer wants to get out of their test drive. It may be a test drive down one of their normal streets, while others may want a test drive that showcases the capabilities of the car in a different way.

at Mazda, that we’d be driving for roughly 10 hours ‘in glorious Arctic solitude and if you have to leave the road or become stuck, the stronger person in the car may need to eat the weaker.’ Although I could imagine our photographer served up with peas and new potatoes, it didn’t appear that we’d be having any trouble, thanks to the CX-3’s prowess on the ice and snow. Despite just 463 of the 3,026 CX-3s sold since its launch coming in four-wheeldrive layout, it’s easy to see that this CarDealerMag.co.uk | 49

FEATURE. MAZDA CX-3: ICY ESCAPADES

The Northern Lights provided an appropriately stunning big finish to Jack and Jonny’s journey to the northernmost part of Europe in the Mazda CX-3 AWD

number would continue to grow quickly should dealerships adopt a more interactive approach to test drives. As we headed further north and began to bear down on Nordkapp, it was difficult to see why someone wouldn’t want a CX-3 with all four wheels driven. Thanks to 27 individual sensors monitoring road conditions and driver characteristics, the CX-3 packs some serious technology into its diminutive size. By calculating how much grip each wheel needs at any given moment, it can accurately direct torque to just the right wheel at just the right time. Couple that with heavily studded tyres and it’s hard to see how anything short of a tank could do better. Before the drive took place, we’d been told that Nordkapp was one of the best places to see the Northern Lights. Although thousands of tourists visit it during the summer, just a handful arrive during winter months. Only accessible when following the snow plough, it was firmly within our sights. But although we’d hardly been hanging around during our journey, our in-car radio crackled into 50 | CarDealerMag.co.uk

life to let us know that we needed to step on it to get to the Nordkapp convoy, and so we pushed the Mazda even harder. Under pressure, the CX-3 did let slip a bit, with quicker-than-normal corners unsettling the car’s rear end. The onboard systems did well to keep things mostly in check, but as we approached Nordkapp and the temperature began to drop, it became more difficult for the car to cope. Luckily, we arrived just in time. Although we’d felt like we’d got there at a decent time, we found out that five other cars had yet to join the convoy and would miss the entire experience. As we arrived at our final destination, darkness was quickly approaching and visibility was getting worse. At the very end point of our journey there wasn’t the slightest flicker of aurora, just a chill wind rattling in from the ocean. With a slight amount of disappointment in the air, we climbed back into our battle-weary CX-3. Slowly navigating our way back down the slippery mountain road to the nearby town of Honningsvåg, the sky had the slightest tinge of light to it. On a whim,

we left the rest of the convoy and turned back towards a car park we’d seen earlier. There, we were treated to a full display of aurora borealis. Everything you’ve heard about the Northern Lights is completely true – and then some. Almost as quickly as they arrive the lights are gone – but not before Fleetwood captured the dazzling display on camera. One thing that our Arctic adventure proved is that the CX-3 is a small four-wheel-drive that deserves respect. Although the 4x4 option takes up a minority of sales in the UK, it’s a car that punches well above its weight. By taking us on this tour, Mazda showed that the all-wheel-drive technology applied to its cars has a real-world use and can help in almost every aspect of driving, especially in winter. Given that on the road in Britain you’d approach the CX-3 like you would a normal crossover vehicle, it’s hard to imagine that it would be capable of travelling more than 500 miles through snow and ice. But as this trip showed, it certainly is. [CD]

CarDealerMag.co.uk | 51

AutoTrust

Weâ&#x20AC;&#x2122;ll take care of you every step of the way.

Warranty for your business and your customers. Call us on 0344 573 8002 to learn more. 52 | CarDealerMag.co.uk

Administered by Car Care Plan, the UKâ&#x20AC;&#x2122;s leading warranty provider.

FOCUS ON.

Remarketing

Hit your targets with the help of the experts Digital or traditional? There are so many options to explore

he world of remarketing has significantly changed over the past five to ten years, with more and more companies opting to go digital. However, there are those who prefer the traditional approach. To find out how you can make the most of your stock, we’ve been speaking with some of the industry’s leading names who provide products and services that can help you do just that. First of all, we talk to the team at Dealer Auction. They believe the future is digital and say that there has never been a better time to go digital with your trade cars. With eight years’ experience of remarketing trade cars for almost 700 franchised dealers and selling their trade part-exchanges to more than 4,000 trade buyers nationally, they focus on providing a class-leading service. Dealers can load cars on to the firm’s auction, quickly and easily, by using the Trade To Sale app on their mobile. Next up is Cooper Solutions, who say retailers

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

could more than double their trade sales profits by moving from a physical to an online auction platform. Without too much effort, shifting from physical to online auctions could help to transform the profitability of many dealerships and erase unnecessary costs. Manheim is next on the list. With remarketing volumes increasing, the auction house has initiated a ‘lean’ approach to maximise the capacity of its remarketing network, revolutionising the way that vehicles are processed by creating state-of-the-art facilities at its auction centres, supported by an eightfigure investment from parent company, Cox Automotive. Impressive stuff! BCA is another familiar name to Car Dealer readers and no-one offers a greater selection of stock or more ways to source and buy, which is

why the firm is the first choice for many franchise dealers, independent dealers, LCV dealers, car supermarkets and used-vehicle traders. One of the newer kids on the block, Autoweb Design, was founded in 2004 and become known as ‘the home of free car ads’, paving the way for free car advertising in the motor trade. In 2009, the firm took on a new venture, which saw the company begin to grow into a leading provider of digital design services. Autoweb Design supplies solely the automotive industry with advanced web design and digital marketing solutions, designed to bring showrooms online. Last, but not least, is carwow – a rapidly expanding business branching out across Europe. The company’s new stock-car feature helps dealers increase stock turnover while reducing marketing spend. Through carwow, consumers get offers for factory orders, but the firm now allows its partner dealers to target consumers who have configured specific cars with their stock vehicles.

FEATURED SUPPLIERS Dealer Auction

Cooper Solutions

Manheim

BCA

Autoweb Design

carwow

An award-winning solution – and glowing testimonials from a pair of very satisfied dealers who use the service!

How going from physical to digital could lead to retailers more than doubling their trade sales profits.

‘Lean’ approach maximises capacity of remarketing network, and makes everything far more efficient.

Company’s comprehensive remarketing programme offers nationwide coverage and top facilities.

‘It’s our job to help dealers move with the times and maximise their business via the internet.’

New stock-car feature helps dealers increase stock turnover while actually reducing marketing spend.

P54

P57

P59

P61

P63

P65 CarDealerMag.co.uk | 53

FOCUS ON.

Remarketing

Go digital – it’s the future! DEALER AUCTION

W: Dealer-Auction.com T: 0116 2301444

here has never been a better time to go digital with your trade cars. That’s the message from the team at Dealer Auction. The site currently has nearly 700 franchised dealers selling their trade part-exchanges to more than 4,000 trade buyers nationally. We recently caught up with Dealer Auction’s managing director, Gavin Smith, to find out more. He told us: ‘At Dealer Auction, we have more than eight years’ experience of remarketing trade cars for franchised dealers. This is all we do, we don’t get side-tracked with other projects or businesses – we just sell a massive volume of trade cars to some of the best buyers nationally. ‘The number of cars sold by us has more than doubled in the last four years because we focus on giving our buyers and sellers a great service. This has resulted in us winning Car Dealer Magazine’s ‘Trade to Trade Remarketer of the Year’ award for the last three years running. ‘We have grown our business and become market leaders not by accident. ‘Franchised dealers find loading cars onto our auction is easy with our Trade To Sale app, it takes less than 10 minutes to appraise and list a car with as many pictures as you like, and even a video if you wish. ‘Buyers can bid and win cars 24/7 using our fully mobile web site that’s easy to use at your desktop or on your smartphone. 'They can search by make, model location or just swoosh through over 1,000 cars a day, with 500 fresh cars added most days.

54 | CarDealerMag.co.uk

‘‘

Dealer Auction seems really pro-active in making sure my cars are displayed to the largest possible audience. Simon Grosvenor, Brindley Why would a franchised dealer want to use Dealer Auction ? ‘Simple,’ said Smith. ‘It’s the easiest, simplest and most profitable way to sell trade cars. Trade didn’t used to matter, it was a line in the accounts not planned to make money, Now, with changes to dealers’ margins and reduced income from finance, dealers are always looking at ways to make some fresh profit. ‘There is no other area of the business you plan to just break even, remember, we are no contract, no minimum commitment, no sale no fee. ‘We have some of the best buyers in every corner of the country, we seldom get a car listed that we can’t get a bid on, but not just any bid, it will be the best bid!’ Why would a buyer want to use Dealer Auction? Smith said: ‘We have one of the biggest ‘‘conveyor belts’’ of fresh trade cars refreshed on a daily basis

from dealers all over the country, from Audis to Volvos from Truro to Aberdeen. It doesn’t matter where you are based, you are never far away from a Dealer Auction seller. ‘There’s no need to get up early and travel hundreds of miles to a windy auction hall, you can bid from the comfort of your own home or showroom. ‘On a busy day, you can use our intelligent bidding system so you never miss a car you want to buy. Just enter your maximum bid and the computer will automatically bid for you, it couldn’t be simpler. ‘View the pictures, watch the video, and check the appraisal and bid with confidence. ‘It’s cheaper to buy cars from our digital auction than a physical auction, because our cars don’t need to be processed, transported or stored. The car doesn’t leave the selling centre’s site. As a result we have just one really small buyer’s fee of only £25 plus VAT for all cars that have a hammer price of £1,000 and over. There is no charge for cars that sell below this. ‘We have one other special ingredient that helps make us market leaders, Everyone who works for Dealer Auction is from a motor industry background; we understand our customers and we know how to remarket trade cars. We are always looking for more buyers to satisfy our selling dealers.’ With such a compelling proposition from the team at Dealer Auction, maybe it’s time you joined the digital revolution. Go digital, it’s the future!

Testimonials

Simon Grosvenor, Brindley Group AS A group, for years, we disposed of our trade cars with a lane auction policy that we were happy with. The cars were collected and we normally got our money back. However, we soon realised that using Dealer Auction to offer our ‘trade-ins’ to a national audience paid great dividends. We trialled it at one site and soon realised the future was online. Now all part-exchanges from all sites are sold on Dealer Auction. We don’t ‘dispose’ of trade cars any more, we sell them. Loading cars is easy with the Trade To Sale App. I can simply load a car on to the live auction from my iPhone. It takes minutes. If a car doesn’t reach its reserve, within minutes of the auction ending, one of the team of knowledgeable and friendly negotiators is on the phone trying to close a deal between the buyer and me. Dealer Auction seem really pro-active in making sure my cars are displayed to the largest possible audience. I have never met so many traders, from all over the country. Some of them tell me they specifically look out for my cars. We’re based in Wolverhampton and most days, buyers from as far away as Carlisle and Portsmouth arrive to collect cars from us.

Dave Wright, CS Motors, Lutterworth USING Dealer Auction to buy stock is the easiest part of my day. I don’t have to spend any time in a draughty auction hall miles from home. I can bid and buy whenever I have a 3G or 4G connection, anywhere, and at any time of day or night. All I need is a smartphone in my hand and some connectivity. I normally use the intelligent bidding system. This allows me to place my maximum bid and then get on with the rest of my day. The Dealer Auction system then places bids on my behalf. There seem to be hundreds of fresh cars loaded daily. Most cars have lots of pictures and some even have videos so I can bid with confidence. If I need to know anything about a car that’s not mentioned in the description, just one call to the team of professional negotiators, who all seem to have motor trade experience, normally clears things up. The best things about Dealer Auction are the great variety of stock and the fact that it appears to be a level playing field with everyone having exactly the same chance of owning a car at the end of the auction. You just need to out-bid everyone else!

CarDealerMag.co.uk | 55

56 | CarDealerMag.co.uk

FOCUS ON.

Remarketing

Go online to improve profitability COOPER SOLUTIONS

etailers could more than double their trade sales profits by moving from a physical to an online auction platform. Cooper Solutions has undertaken a comparative analysis of transaction costs between traditional and online auctions, and it says that the results have found that dealers could be overspending on unnecessary costs at auction. Managing director Barry Cooper said: ‘The fundamental difference between the two methods of trade disposal are that physical auctions charge

T: 01926 855055 W: coopersolutions.co.uk buyers a considerable fee, generally around twothirds of the total transaction cost. Selling dealers pay the other third but will often be offered a volume rebate to bring this down below £100 per unit. It is the buyer’s costs that stand out and which will directly influence the price paid. ‘A regular buyer will pay more than £200 for a car worth £3,000 and £250 for cars over £5,000. Volume brands achieve average selling prices around £3,000 per unit for trade cars and prestige

brands up to double that. All retailer stock is, therefore, expensive to buy at auction and there is every probability the buyer will buy more in fees then the selling retailer will achieve in profit.’ Analysing more than 65,000 individual car sales, the research confirmed that physical auction fees are usually bigger than the profits selling retailers make. According to Cooper, that ratio can’t be good business. He said: ‘Savvy retailers are already using online auctions as part of their core disposal strategy, but the majority still sell to a small number of local traders or use physical auctions. Interestingly, Sytner Group, one of the biggest and arguably the most used car-focused of the large groups, has used its own online auction platform very successfully for several years. ‘The online auction model works. Buyers like it as they can bid on the move and do so with confidence, knowing they have access to stock with no buying costs. ‘As an example of the scale of the change in the market, our online auction site, FullAuction, has sold more than 50,000 franchised retailers’ trade cars since it was launched, without charging a penny in buyers’ fees. ‘Retailers using physical auctions are usually happy, as the results are better than they were used to getting when dealing with local traders, and the transaction is transparent and secure. What they don’t realise is that there is a stark difference in transaction costs between the physical and online auction route. The hard fact is that this will always reflect in the profits they make. He added: ‘Given their business model, the physical auctions need to charge high transaction costs to cover their overheads. Online auctions add as much value but with a much lower overhead. The business model is more efficient, and while it’s here today, it is also the future. ‘Without too much effort, shifting from physical to online auctions could help to transform the profitability of many dealerships.’

CarDealerMag.co.uk | 57





360° IMAGERY With our new 360° imagery you can now trust your own eyes and see the detail from every angle.

Start your search today manheim.co.uk ONLINE | IN LANE | MOBILE 58 | CarDealerMag.co.uk SP1087_206 15.03.16

FOCUS ON.

Remarketing

Revolutionising remarketing MANHEIM

W: manheim.co.uk

ost vehicle auction centres in the UK have a similar layout. After passing through the entry gate, vehicles are typically sent to different areas for washing and valeting, inspection and imaging, prior to entering an auction line-up. With remarketing volumes increasing, Manheim has initiated a ‘lean’ approach to maximise the capacity of its remarketing network, revolutionising the way that vehicles are processed by creating stateof-the-art facilities at its auction centres, supported by an eight-figure investment from parent company, Cox Automotive. ‘Lean’ is about minimising waste – in this case, vehicle movements and therefore time – in order to maximise value for the customer. For Manheim, allied with its ‘Swift’ process, it is about vehicles being processed and presented efficiently and consistently, giving buyers even greater confidence to buy, both in-lane and online; and getting vehicles on sale more quickly. Dean Walker, senior buyer at Motorpoint, said: ‘As Manheim’s ‘‘Swift’’ process gets cars on sale more quickly, it means we can get our hands on stock sooner. Technology such as the Simulcast bidding platform is helping to increase the amount of stock we acquire online, and detailed 360-degree imagery, along with the knowledge that inspections have been done in the best possible conditions, gives us the confidence we need to buy online.’ Manheim has incorporated a new ‘‘Swift’’ process at three pilot sites, with the result for its customers being that vehicles are processed in under one hour from

start to finish – including wash, valet, inspection, imaging and moving to the line-up. The process includes 360-degree imagery using an automated turntable, giving buyers the detail they need when viewing vehicles online. The new system also benefits Manheim’s team members, as all of the processes take place under cover, where valeting teams and vehicle inspectors are protected from the elements. The processes are more resilient to the challenges posed by poor weather, reducing any downtime. Tim Hudson, managing director for Manheim Remarketing, said: ‘The ‘‘Swift’’ process helps us put vehicles on sale more quickly and maximises the efficiency of our physical auction infrastructure. Our vendors’ stock is processed efficiently, presented consistently, and on sale sooner; our buyers get the best possible view of vehicles before they bid and buy; and our team members have the best possible working conditions.’ When a vehicle arrives on site, it is registered at the gate and immediately taken to a pre-wash area. The Vendor Support team gets all the relevant information to enable them to enter the vehicle onto the auction system. The valeting team gets to work in a dedicated, covered wash area, ensuring the vehicle is cleaned and dried to be in the best condition for inspection,

before it is moved to the pre-inspection area. The benefit of being under cover means that inspections are completed under consistent, highquality lighting, ensuring the greatest possible accuracy. The ‘Swift’ process means that Vehicle Inspectors spend less time moving vehicles and more time inspecting. Once the inspection is complete, the vehicle is moved to the imaging booth. All ‘Swift’ sites will have the latest 360-degree imaging booths, which automatically take pictures from multiple angles, providing buyers with a comprehensive set of images with zoom capability, to give them the best view, and the greatest confidence, before they bid or buy. The Yard Team then moves the vehicle, which is now ready for sale, from the imaging booth into the line, or storage if it is not going into auction. Manheim’s three pilot sites are already reaping the benefits of the new process, and the investment programme will see it rolled out at other auction centres throughout 2016. Manheim will lead the remarketing industry by having 360-degree imaging capabilities at all of its auction centres by the end of the year.

CarDealerMag.co.uk | 59

BCA Partner Finance A vehicle stocking service that helps you buy more, stock more, sell more.

• Get easy access to stock funding from a trusted partner who understands your business. • Buy vehicles in any of our auctions - physical and online. • We’ll finance the whole deal, 100% of vehicle price plus fees, transportation and even the VAT. • Covers not just cars but also LCVs purchased at BCA, with no age or mileage limits. • You can drive away on the day and you have up to 120 days to pay. • Improve cash flow, buying power, choice and profitability.

Helping you grow your business. bca.co.uk/partnerfinance 60 | CarDealerMag.co.uk

FOCUS ON.

Remarketing

Good value and easy to use BCA

W: bca.co.uk

CA helps dealers meet the needs of their retail customers with a complete range of vehicle buying and selling services. No-one offers a greater selection of stock or more ways to source and buy, which is why BCA is the first choice for franchise dealers, independent dealers, light commercial vehicle dealers, car supermarkets and used-vehicle traders. With 23 centres across the UK and more vehicles from more sellers, the company’s comprehensive remarketing programme offers nationwide coverage in the very best facilities. Customers can source graded and appraised vehicles online via Auction View, then bid with confidence, physically or digitally, via BCA Live Online, thanks to services such as BCA Assured, powered by the AA. Our specialist dealer products include the cloudbased BCA Dealer Pro to manage, appraise and remarket part-exchanges, and BCA Partner Finance, which is helping independent dealers to compete thanks to a flexible and customer-focused funding service for auction purchases.

BCA Dealer Pro – Profit from Part-Exchanges BCA Dealer Pro is a cloud-based and iPad solution designed by BCA to help retailers control and manage vehicle appraisals, provide accurate valuations and manage part-exchange inventory and vehicle disposals – and, as a result, sell more vehicles. Dealer Pro integrates with dealer systems to improve overall dealer efficiency, and enable all data captured to be used in any sales channel. To maximise the profit from part-exchange vehicles, it is critical to appraise them consistently

and accurately, ensuring the selling customer feels confident both in the process and the valuation. Undervalue and the prospective deal might simply walk away. Overvalue and the dealership may lose money when the vehicle is traded or remarketed. BCA Dealer Pro allows retailers to be transparent with customers as they capture the condition of the incoming part-exchange car via an iPad, with auto grading to NAMA standard and real-time BCA Market Price valuation data. It also integrates with other dealer systems, such as lead management and provenance systems, to improve overall dealer efficiency, and enables all data captured to be used in any sales channel. Dealer Pro also improves the customer’s experience, increasing confidence with a professional appraisal process that they can see and understand, and giving credibility to the partexchange value they are quoted. BCA Dealer Pro brings clarity and transparency to the part-exchange process, through an elegant and sophisticated technology-based solution. It is a unique package of tools for dealers within the remarketing sector, marrying best-in-class business practices with easy-to-use-technology that is

integrated within their existing systems, supported by robust data.

BCA Partner Finance for profitable trading The innovative BCA Partner Finance Service helps independent car and van dealers secure incremental funding to allow them to expand their retail operations. BCA Partner Finance was the first finance product to launch that is specifically designed for the UK remarketing sector. BCA Partner Finance funds the whole auction purchase, including fees and VAT where applicable and interest is charged at a competitive flat rate – equivalent on average to around £2.00 a day – with both cars and vans funded using the scheme. BCA works closely with customers to ensure they are maximising the benefits of the scheme. The key feedback is that BCA Partner Finance is both good value and easy to use. Customers value the simplicity of the service, which is helping them to purchase additional stock from the huge choice available at BCA. Dealers can use BCA Partner Finance to fund any auction purchase, whether they are making a speculative buy, sourcing a vehicle to order, or expanding the range and scope of their stock profile. Importantly BCA Partner Finance is not linked to the retail sale, allowing smaller independent dealers to free up funds to grow their business how they see fit. 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. It’s a simple solution to more profitable trading. CarDealerMag.co.uk | 61

62 | CarDealerMag.co.uk

FOCUS ON.

Remarketing

Sites built with mobiles in mind AUTOWEB DESIGN

o you prefer to wear a suit to work, or are you more comfortable in a T-shirt and a pair of jeans? Believe it or not, this decision could be the difference between selling a car and losing a lead. First impressions make all the difference. So, if you’ve got stock that’ll sell itself, a class-leading sales team and attractive prices, why not have the matching website to let your buyers know? Founded in 2004, Autoweb became known as ‘the home of free car ads’, paving the way for free car advertising in the motor trade. Founders Richard McCombe and Peter Fairfield had a vision to create a market place where the public could advertise their car at absolutely no cost and with no strings attached. Listing a vehicle for sale is all well and good, but how do you make it stand out from the rest? The answer is simple: a carefully-designed website that allows your business to flourish and extend

W: Autowebdesign.co.uk T: 01757 801926 your buyer reach across the country. That’s where Autoweb Design can help. In 2009, the firm took on a new venture, which saw the company begin to grow into a leading provider of digital design services. Autoweb Design supplies solely the automotive industry with advanced web design and digital marketing solutions, designed to bring showrooms online. Working with leading manufacturers, franchise groups and independent dealerships across the UK, the firm’s focus is to drag dealer stock and communications into the digital age to help ensure that sales teams never miss a lead. Autoweb Design specialises in providing products in stock management that are designed to streamline administration by integrating advanced CAP data, online marketing services to achieve measurable results in increasing online visibility, and lead generation, using features such as finance integration and online service booking tools to fuel conversions and aftersales. ‘We design bespoke, responsive websites, which are geared towards lead generation and optimised for conversion. Working with a dealer’s existing branding or creating a visual identity from scratch, our websites reflect business image and are tailored

towards individual needs,’ explained Fairfield. ‘From paid advertising to online reputation management, our products are engineered to increase web traffic, visibility and overall online performance.’ In four years, Autoweb Design has outgrown its premises with a team of highly trained and skilled design, sales and marketing gurus, and has taken control of more than 900 websites for clients including Suzuki, SsangYong, Ray Chapman Motors and CCR Motor Co. ‘2016 is a very exciting year for us,’ said Fairfield. ‘We’re growing at such a rate that we’re already looking into moving our headquarters so we can squeeze everyone in. We currently have a team of 32 and are well on our way to managing nearly 1,000 websites for both dealers and manufacturers across the UK. ‘We started working with independent used car dealers in 2004 and sometimes they are the most reluctant to embrace change. We feel very fortunate to be working in such an exciting and advanced industry and it’s our job to help dealers, who perhaps have arguably got a little stuck in their ways, to move with the times and maximise their business via the web. ‘We understand why dealers are interested in hearing the phone ring, but there are more leads to be secured digitally that you might be missing. At Autoweb Design, we look deeper at data-driven analytics and can help dealers to strengthen business online and mobile. People say mobile is the future – it’s not; mobile is the present.’ Autoweb Design understands that, while many customers still do business from their desktop, the power of mobile and the role it plays in helping consumers find their next vehicle is inevitably stronger. So, unlike its competitors, it designs client websites from the mobile up. ‘Dealers need to be able to capture leads and act on them quickly and efficiently,’ explained Fairfield. ‘That’s why we focus on designing websites that are built with the customers, and their mobile, in mind – every website we build converts from desktop to mobile to ensure that a view, inquiry or lead is always ticked off the list. Last year, in 12 months of taking on the project, we more than doubled the website traffic for SsangYong. ‘If we can do that for a manufacturer, we can certainly do that for our dealers.’ CarDealerMag.co.uk | 63

64 | CarDealerMag.co.uk

FOCUS ON.

Remarketing

Customers don’t want to wait – and that’s when carwow can help! CARWOW

W: carwow.co.uk

arwow’s new stock-car feature helps dealers increase stock turnover while reducing marketing spend. Consumers don’t want long delivery times – they will often sacrifice options or colour preference for a car that’s available immediately. We know dealers have a real problem with preregistered or fully-paid cars because they quickly become costly to keep in stock and need to be moved on as quickly as possible. Through carwow, consumers get offers for factory orders, but we now also allow our partner dealers to target consumers who have configured specific cars with their stock vehicles. Out of the nearly 10,000 vehicles purchased through our partner dealers in Q1, more than a third were stock cars. With 150,00 people configuring cars every month, there are often thousands of in-market consumers to target per model. Just recently, a dealer sent us a stock list of 20 pre-registered Qashqais. With these 20 cars promoted to the 12,000 people who had configured a Qashqai in the previous four weeks, 18

of them were sold in a single day. There’s no fee to list your stock cars – you only pay when you sell a car. So whether you have new, pre-registered or ex-demonstrator stock, you can target customers that have configured cars similar to yours either in your area or throughout the UK. About carwow: carwow provides highly qualified leads to dealers who are dedicated to providing excellent customer service. More than 1,000 franchised dealers are on carwow, with more joining every month. So far in 2016, carwow partner dealers have sold nearly 10,000 cars to carwow customers, more than 3,000 of which were stock cars. Despite what you may have heard, it’s not all about price: only 25 per cent of carwow buyers buy

from the cheapest dealer. The other 75 per cent of buyers choose their closest dealer, the highest rated dealer, or the first one to reply to their inquiries. In fact, besides dealership location, great customer service is the single biggest indicator of who a customer will buy from: 37 per cent of carwow buyers choose the fastest-responding dealer. Carwow customers know what they want. By the time they contact your dealership, they have compared not only brands and models, but also offers based on location, dealer rating, and offer price. So, when they do contact you, they’re ready to buy: 64 per cent of calls from carwow customers that are answered and dealt with convert to a sale. We promote the best dealers – improve your response time and conversion rate and we’ll send out more offers from your dealership. The better your dealership’s score, the more leads and sales we’ll send your way. There’s no sign-up fee, no minimum term, and you only pay for the cars you sell. [CD]

CarDealerMag.co.uk | 65

e n i l n nal o

o i s s Profe

e c n e pres

AD-Vantage delivers brochure quality vehicle images directly to your website

sales and service videos directly to your customer

One platform, complete solution Thatâ&#x20AC;&#x2122;s the GardX AD-Vantage 66 | CarDealerMag.co.uk

T: 01243 376 426

E: info@gardx.co.uk

W: www.gardx.co.uk

FOCUS ON.

GardX AD-vantage

Transform your online presence GARDX AD-VANTAGE

W: gardxadvantage.co.uk T: 01243 376 426

he internet has had a profound effect on consumer buying habits – especially in the last decade. More people are turning to the internet to search for and purchase products. This consumer buying trend has similarly translated to the motor industry and according to research, 90 per cent of vehicle inquiries now begin online. The use of digital tools such as videos and photo imagery on websites can help to convert these initial searches into sales. A video speaks a thousand words with 64 per cent of viewers more likely to make a purchase after viewing a video. GardX AD-vantage provides the answer to how dealers maximise this seismic change in how the UK public search for and buy their cars. AD-vantage is a professional vehicle advertising solution focusing on static imagery and videography. It is a simple point-and-shoot, software and hardware package, which aims to revolutionise the way dealers market and retail cars. It is proven to increase sales conversion rates by up to 25 per cent. It delivers a level of professional advertising with USPs not previously available to the industry, providing GardX dealers with a massive advantage! The product was initially launched in Ireland

where it has enjoyed huge success, and where more than 160 dealers are currently running the system with endorsements from Volkswagen Audi Group, Skoda and BMW Ireland. AD-vantage packages are tailored individually to

each dealership, with the dealers assigned a GardX account manager working closely with them to achieve maximum results, a unique offer to the UK sector. The Wi-Fi and 4G enabled cameras ensure that the videos are fed directly to the dealer’s website and photo images to their advertising mediums. In this way, personalised video can also be sent directly to prospective buyers by text or email. All dealers’ photographic images are quality checked by the GardX Quality Control team within 24 hours to ensure they remain consistent. And it’s not just in the sales department that AD-vantage scores. In a busy service department time is of the essence. Using the aftersales video module, technicians are trained to film short videos highlighting a vehicle’s faults or urgent repairs, building consumer confidence and increasing service sales. This video then arrives with the service advisor and can be inserted into an electronic vehicle health-check and delivered to the customer via text or email. GardX Protection was established in 2003, drawing from managing director Victor Coutin’s 35-plus years experience in the motor industry. The business has achieved incredible growth, branching out from the original award-winning paint and interior protection product that the company was famous for into a full suite of F&I and aftermarket products. AD-vantage will be featuring at CDX16, with demonstrations of how easy the hardware and software is to operate and how it can transform a dealer’s online presence. GardX believe that AD-vantage has the potential to follow in the phenomenal success of its current product range. [CD]

CarDealerMag.co.uk | 67

Becoming an RAC Approved dealer means you have access to the power of one of the UKâ&#x20AC;&#x2122;s most respected motoring brands. With over 8.2 million members in our network, Approved Dealer status can help drive them to your dealership. Call us today and harness the power of RAC Approved status.

0330 100 3807

Call: Email: dealernetwork@rac.co.uk Visit: rac.co.uk/getapproved 03 numbers are charged at national call rates and included in inclusive minute plans from landlines and mobiles. Calls may be monitored and/or recorded.

68 | CarDealerMag.co.uk

FOCUS ON.

RAC

Come and see us at CDX! RAC

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

DX is fast approaching and, with more than 1,000 delegates signed-up to attend and only three stands up for grabs across the Silverstone Wing’s giant halls, it’s the must-attend automotive industry event of 2016. Having found last year’s event so beneficial for business, the RAC says CDX is a great opportunity to touch base with its loyal dealer network and the perfect occasion to showcase its latest products. ‘We have a network of more than 1,000 dealers across the UK and CDX is the perfect opportunity to get them all in one place,’ explained dealer marketing manager of the RAC, Adam O’Neill. ‘There’s no other event in this country where getting all your dealers in one place is possible – it’s the leading event of its type and we need to take full advantage of what it’s offering us every year.’ This year, the RAC will be giving new and returning clients the opportunity to gain a deeper insight into what its latest products and dealer tools can do to help streamline business and make more sales. ‘Our key focus for this year’s event is to show dealers the developments we’re working on in 2016,’ said O’Neill. ‘To do this, we’ll be welcoming selected partners we work with to join us on our stand and inviting guests to come and speak with us to find out how we can better their businesses. ‘We’ll be talking through some key products at CDX, including our BuySure and Car Passport tools. Our aim is to support dealers as much as we can.’ More than 200 dealers signed up to the new RAC Car Passport, a new provenance vehicle check, in its debut week, which has been designed to provide a lower-cost alternative to competing products while offering high-quality data and the reassurance of the RAC name. Key features include customer-facing, downloadable RAC Car Passport documentation designed to maximise the credibility of the check,

The RAC certainly wowed delegates at CDX last year – and they’re set to do the same on May 24

a £10,000 guarantee that can be increased to up to £50,000 to protect higher-value vehicles, and a mileage-adjusted valuation that can be upgraded to a Glass’s valuation for an additional cost. RAC Approved Dealers are also the only dealers who can offer their customers BuySure. This means that all vehicles bought from an RAC Approved Dealer have been prepared to the firm’s approved 82-point vehicle inspection and data check as a standard procedure. ‘We exhibited last year and received some great

feedback from those who visited our stand,’ said O’Neill. ‘We want to make visiting us a worthwhile experience for dealers – they’re taking a whole day out of the office to be with us, so we’ve got to give them plenty to take away.’ He added: ‘I really enjoyed last year’s event and according to the Car Dealer team, it’s set to be even bigger this year, so I’m sure it’ll tire me out! ‘As for our stand, we’re upping our game this year and we’re confident it won’t disappoint. But you’ve got to see it to believe it!’ [CD]

CarDealerMag.co.uk | 69

DASHBOARD. FEATURE.

Ask Lawgistics .com

I sold a car and my salesman made a typo on the invoice that meant the customer paid £1,000 less than what was agreed. The customer refuses to pay the outstanding £1,000. This happens more frequently than you would think. Quite often the customer knows there was a mistake and they pay up, but not always. Two legal solutions come to mind: one is to deduct the loss from the salesman’s wages if, and only if, you have a clause in their contract allowing you to do that, or you can threaten to take the customer to court. That does prompt some to pay but in a case we dealt with recently for one of our members, the threat was not enough and the matter headed all the way to a hearing. The court preferred our evidence and our dealer got his £1,000.

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

I sold a car last September and the customer returned in January to complain that his clutch was on the way out and he wants me to foot the bill. The car was eight years old, had 85,000 miles on the clock and the customer paid £3,800. I told him that as it was due to normal wear I wasn’t liable and so wouldn’t be helping him. He has now complained to the finance company, which says I have to refund the entire amount! That can’t be right, surely? Unfortunately, we are dealing more and more with finance companies making soft decisions to the benefit of the consumer. They do so in the knowledge that they will be approaching you, the dealer, to reimburse them for any money they have lost. It’s a win-win for the finance company. They get the customer off their back and prevent a complaint to the Financial Ombudsman Service (which could cost them an investigation fee of £550) all while passing any loss on to you. Some finance companies are more reasonable than others and many will discuss the matter with you, listen to your version of events and, if necessary, agree to an expert report being carried out. However, some will simply take the easy option and give the customer whatever they want, whether or not the customer is legally entitled to a remedy, and then chase you to cover their loss.

Since the introduction of the Consumer Rights Act in October 2015, some finance companies have updated their terms and conditions to contractually oblige dealers to reimburse them for any payout they make. Terms such as ‘in our sole discretion’ have crept in, giving finance companies carte blanche to make decisions about your business and your money. Other terms we have seen specifically state that you will be liable for anything at all as your obligation goes beyond what consumers are legally entitled to and covers any complaint by a consumer, well founded or not. To our mind, that disadvantages the dealer and we would encourage dealers to look out for such terms and, where possible, stick with finance companies that make it clear they will treat you as fairly as the consumer. In your specific case, we agree the clutch is a serviceable item and so is not covered under the Sale of Goods Act 1979/Supply of Goods (Implied Terms) Act 1973 (Consumer Rights Act 2015 for sales made on or after October 1, 2015), and so there is no liability to the customer. The finance company should not have paid out and we would argue that if it wanted to effectively gift the customer some money then that is its prerogative but it cannot then make you pay for its gift. If it threatens court action, please talk to us and we can help you prepare a defence.

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.

70 | CarDealerMag.co.uk

Receive a month’s free management when you book a three-month pay-per-click campaign Autoweb Design has achieved exceptional results with automotive pay-per-click (PPC) campaigns and is a recognised Google Partner. PPC is a hugely successful way to advertise your business and stock online, targeting relevant customers and widening your digital reach. That’s why we’re offering Car Dealer Club members an exclusive deal of one month’s free management when they book a three-month PPC campaign with us. We’re sure you’ll see fantastic results.

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 price increase. (*subject to vetting)

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.

Must I make repairs to car ‘sold as seen’?

I sold a car on a trade invoice as it wasn’t good enough to retail as normal. The customer knew they were getting a good deal but they now want me to make various repairs. Surely if it’s a trade sale it’s sold as seen? You cannot take away someone’s consumer rights simply by using a trade invoice. And you should not use a ‘spares and repairs/unroadworthy’type invoice unless the car really is for spares and repairs or is unroadworthy. Cars sold to drive away still need to be of satisfactory quality (taking into account age, mileage and price), fit for purpose and as described. If you are selling at a trade price, list all the faults and ensure the customer is aware of exactly what they are taking on. Even then a court may rule that the customer didn’t really understand how the fault may affect the running of the car. Selling cars on the cheap may not only end up costing you money but could attract the attention of Trading Standards.

WHY I JOINED CAR DEALER CLUB

Wrangle over state of delivered Ford Focus could go to court – and a claim is all ready WHEN Ben Buey bought a car from a well-known motor group, he expected the deal to be done and dusted within the day. However, that was last August, and the director of Ely-based Criteria Cars is still embroiled in a legal battle with the firm after the 2008 Ford Focus arrived in a state far from how it had been described. Having spent around £3,500 on the car, Buey was shocked to find the paint on the bonnet and front bumper bubbling, scrapes and grazes across the rear bumper and rust spots visible on the tailgate. ‘This happens quite frequently, but it’s usually only little bits, and decent dealers are normally prepared to rectify their mistakes,’ the 39-year-old said. Initial contact with the group proved fruitless, with it telling Buey it was deemed he had accepted the car in the condition that it was in. At this point, he took the issue to Lawgistics, with whom he has been a member for the past five years, after signing up following an issue with a warranty

company. Lawgistics sent strongly worded letters in an attempt to recoup some, if not all, of the £720 that Buey had been forced to spend to repair the paintwork to sell it on. ‘If it wasn’t for Lawgistics, I would have knocked it on the head,’ Buey said. ‘All this letter writing had to be done properly, so being a member of Lawgistics really helped.’ With no response received, the next step is to go to mediation, and failing that a small claims court, for which Lawgistics has drawn up a claim, but this is something he hopes to avoid. As a result, Buey says he is definitely more cautious about whom he buys cars from. And he finds Lawgistics’ support invaluable, concluding: ‘The warranty is what got me involved in the first place, but having since had a couple of issues with customers, Lawgistics has really helped me.’

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.

EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM

AND ALL FOR JUST £39.99

2. HIT SUBSCRIBE

Discount on software and free health check app from Dragon2000

Get 10 per cent off App Creatives development costs for your exclusive app

Book an appointment with Paragon Car Finance and get £50*

Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

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 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.

At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.

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

* Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.

Dragon2000 CarDealerMag.co.uk | 71

DATA FILE.

Thestatistics

SMMT Sales Data

Taking Stock

Strong growth in March rounds off a robust first quarter Demand for alternatively-fuelled vehicles showed notable increase, says SMMT

he UK’s new car market grew by 5.3 per cent in March, making it the biggest month since the bi-annual plate change began in 1999. According to the latest SMMT figures, 518,707 new cars were registered in March – only the third time the market has surpassed half a million units in a single month. The month rounded off a record quarter in which more than 770,000 new cars were registered – a 5.1 per cent increase over the first quarter in 2015. Demand for alternatively-fuelled vehicles showed a notable increase of 21.5 per cent in the month, as consumers continued to favour lower emission vehicles with lower running costs. Meanwhile, registrations of both diesel and petrol cars increased, with respective uplifts of 4.8 per cent and 4.7 per cent. Growth was seen across all

sales types in March. Private and business registrations increased 3.8 per cent and 15.3 per cent, while in the fleet sector demand grew six per cent, reversing small declines seen in January and February as buyers sought to maximise residual values by opting for the new March number plate. Mike Hawes, SMMT chief executive, said: ‘The sector’s strong growth in March rounds off a robust first quarter, as British consumers continue to

demonstrate their appetite for new cars, especially ultra-low-emission vehicles. This consumer confidence should see registrations remain at a high but broadly stable level over the year but could be undermined by political or economic uncertainty.’ James Broadhead, the CEO of Close Brothers Motor Finance, said: ‘These figures from the SMMT are particularly impressive and underline the continued strength of the automotive industry. It is also encouraging to see growth across all sales types, with alternative fuel vehicles seeing a notable increase in sales, on top of diesel and petrol vehicles. ‘While this growth offers huge potential for dealers, it is important that they remain focused on investing sustainably to ensure that they are prepared for the future.’ Marching ahead, p14

Did you know...? Top ten fascinating facts TOP 10 facts about the biggest month since the bi-annual plate change began in 1999, courtesy of the SMMT: 1) Overall, the supermini is the most popular car type – a trend that is as true in March 2016 as it was in March 2006, with more than a third of all buyers preferring compact driving. 2) The rapid rise of the SUV continues, with more than 85,000 of them newly registered in March – 140 per cent more than in March 2006 and accounting for around one in six new cars last month. 3) Ten years ago in March, just 1,354 hybrid and electric cars were registered. In the same month this year more than 72 | CarDealerMag.co.uk

17,000 left the UK’s showrooms – a 12fold, or 1,173 per cent, increase. 4) More than a fifth of cars registered in March 2016 were white, following the trend set in 2015, with neutral tones black and grey second and third. 5) Not all Britons are as keen to follow the trend, with some 3,300 new cars specified in orange, 2,000 in yellow and more than 1,000 buyers choosing pink. 6) White was the favourite colour in March for superminis and small family cars, with larger executive models and sports cars more likely to come in black. 7) Londoners registered around a sixth (17 per cent) of all Britain’s new cars

in March 2016, followed by the West Midlands (13 per cent). 8) Drivers in London registered the most new cars of any body type in March, except executive motors, which were found to be most popular in the east of England. 9) Around 40 per cent more new cars were registered in Scotland and England during March 2016 than the same month five years ago. 10) Buyers of new cars in March can look forward to CO2 emissions of around 20 per cent lower than the average car on the road. In fact, average new car CO2 is at an all-time low.

SMMT sales data March/year to date

Top

Most-improved manufacturers in March

SsangYong +115% Abarth +105% Chevrolet +100% Smart

+88%

Jaguar +45%

Bottom

Worst-performing manufacturers in March Chrysler -100% Lotus -54% Mitsubishi -23% Citroën -18% MG -13%

FORD -5%

JAGUAR +45%

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

March 2016

2016

714 1,139 186 30,483 290 32,470 2 0 13,734 5,274 3,388 13,190 60,349 13,139 16,802 392 5,659 2,597 16,207 18,234 3,104 32 214 11,499 30,243 576 12,526 4,340 28,489 20,209 2,293 17,866 8,677 12,527 1,900 970 704 7,943 21,481 51,902 38,694 7,488 106 675 518,707

% market share 0.14 0.22 0.04 5.88 0.06 6.26 0.00 0.00 2.65 1.02 0.65 2.54 11.63 2.53 3.24 0.08 1.09 0.50 3.12 3.52 0.60 0.01 0.04 2.22 5.83 0.11 2.41 0.84 5.49 3.90 0.44 3.44 1.67 2.42 0.37 0.19 0.14 1.53 4.14 10.01 7.46 1.44 0.02 0.13

March 2015

2015

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

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

% change 104.58 5.56 -12.26 4.56 16.00 20.59 100.00 -100.00 -18.10 -1.24 0.00 10.62 -4.91 9.72 2.02 156.21 44.99 18.58 7.92 17.58 26.90 -54.29 5.94 14.03 13.63 -12.86 14.27 -22.62 -8.18 -7.40 18.93 12.59 -1.90 10.32 87.56 114.60 -4.48 7.77 4.58 6.60 0.02 12.40 13.98 108.98 5.26

2016 1,027 1,608 274 47,380 458 46,495 3 0 21,354 7,453 5,284 18,665 93,897 19,709 25,368 524 8,680 3,746 24,162 24,118 4,337 87 327 17,191 47,239 992 16,178 6,585 43,843 30,991 3,326 23,959 13,390 20,422 2,837 1,383 985 11,545 30,788 75,032 57,443 11,508 169 1,018 771,780

Year-to-date (YTD) % market share 0.13 0.21 0.04 6.14 0.06 6.02 0.00 0.00 2.77 0.97 0.68 2.42 12.17 2.55 3.29 0.07 1.12 0.49 3.13 3.12 0.56 0.01 0.04 2.23 6.12 0.13 2.10 0.85 5.68 4.02 0.43 3.10 1.73 2.65 0.37 0.18 0.13 1.50 3.99 9.72 7.44 1.49 0.02 0.13

2015

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

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

% change 94.51 11.82 3.79 5.48 12.53 16.17 50.00 -100.00 -15.46 -1.01 0.00 3.41 -0.96 14.83 2.02 125.86 75.28 37.62 8.52 17.05 17.66 -1.14 -12.80 16.71 17.19 15.48 8.13 -17.38 -5.20 -5.84 21.83 16.35 -5.42 9.03 116.56 122.35 3.68 13.30 1.91 -0.19 -4.88 8.66 1.81 100.00 5.06

*Citroën’s monthly registrations included DS until May 2015. As the Citroën result for March 2015 is for both brands, Citroën and DS registrations for March 2016 need to be combined when comparing year-on-year. CarDealerMag.co.uk | 73

The majority talk about being trusted partners but only the minority really deliver

At MAPFRE, we take time to get to know your business to make sure you get the tailored warranty programme you need. Take advantage of our FREE, no obligation dealer review and feedback report and youâ&#x20AC;&#x2122;ll see why we like being in the minority.

Find out how we can help: 0845 6838795 contactus@mapfre.co.uk 74 | 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

A strong used car market sees buyers very busy in the auction halls and online Headline value of a used car fell in March, and sellers need to pay attention to the basics, says BCA UK’s chief operating officer, remarketing, Simon Henstock

he latest BCA Pulse report shows that both fleet and lease and part-exchange values rose in March, with both sectors recording value growth over the year. Nearly-new values fell, although as we always point out, model mix has a significant role to play in this low-volume sector. Despite this, the headline average value of a used car fell in March as a result of changing volume mix. Compared to February, the headline value fell by £91 (1.1 per cent) to £7,838. This reflected a change in the volume mix over the month, as dealers sold greater numbers of part-exchange vehicles following on from the new registration plate on March 1. Year-on-year, however, the headline figure was up by £314, equivalent to a 4.1 per cent rise. BCA reported a strong used car marketplace in March, with buyers being exceptionally active

both in the auction hall and online. Reflecting seasonal patterns, the company saw greater volumes from dealer part-exchange sources and this shift in the market mix impacted the headline value. The plate-change period inevitably sees volumes rise substantially in the wholesale markets and stock levels traditionally remain high until at least early May. Any uplift in volume has the potential to change the balance in supply and demand and can impact on values as buyers are simply provided with more choice. As volumes increase, BCA is advising sellers to pay attention to the basics of remarketing. Presentation and preparation are a given, and it is vital to properly identify and declare the specification, particularly if there are a lot of base-spec models about.

Fleet and lease car values for March

£9,741

Providing the service history at the point of sale is also important and can have a real, tangible effect on the potential prices vehicles might achieve. Fleet and lease car values averaged £9,741 at BCA in March, an increase of £79 (0.8 per cent) compared to February’s figure of £9,662. Retained value against original MRP (Manufacturer’s Retail Price) improved to 42.2 per cent, with age and mileage broadly static. Compared to March 2015, average fleet and lease values were up by £71, with retained value marginally down. Having fallen in February, average values for dealer part-exchange cars improved by £127 (2.9 per cent) to £4,382 in March, the highest monthly value since the record value set last October. Year-on-year values remain ahead by £198 (4.7 per cent). Nearly-new values fell to £19,260 in March.

Average value for dealer part-exes

£4,382

CarDealerMag.co.uk | 75

AUCTIONS.

Henstock AUCTION STATIONS

The 1973 Aston Martin V8, above; and right, the Subaru Impreza P1 that went under the hammer

Biggest catalogue ever helps CCA hit £1m mark 1973 Aston Martin V8 barn find is the star of the show

record number of registered bidders at the Warwickshire Exhibition Centre helped Classic Car Auctions (CCA) achieve an 85 per cent sales rate and total sales of more than £1 million at its March auction. Headlining the results was a 1973 Aston Martin V8 barn find. The rare manual car covered in dust but presented as a running example was hard fought over by two determined bidders in the room, eventually selling for £64,350 – nearly £30,000 above its lower estimate. Not only that, but another rare Aston Martin barn find caught bidders’ eyes. A 1990 Aston Martin Virage, also with a manual gearbox, sold for £31,900 – more than £10,000 above its lower estimate. Both are now on their way to new homes awaiting restoration work to bring them back to their former glory. For Aston Martin enthusiasts looking for a newer example, a 2000 Aston Martin DB7 Vantage Volante with an impeccable service history sold for £41,250. Commenting on the results from the sale, CCA general manager Guy Lees-Milne said: ‘This was our biggest catalogue yet and our customers were clearly impressed by the great selection of classic and

modern cars we had on offer. It was great to see so many new and old customers join us for our first sale of the year. The atmosphere was fantastic.’ Fans of ‘80s hot hatches were well catered for with a number of special examples on offer, including a very rare 1987 Fiat Strada Abarth 130TC, believed to be one of just five UK road-registered examples. The car enjoyed lots of attention at the event and sold for £15,180 – almost double its lower estimate. A 1982 Talbot Lotus Sunbeam, one of the most exciting hot hatches of the period, sold for £17,050. Japanese performance car fans were clearly tempted by the prospect of owning an example of the iconic, limited-edition Subaru Impreza P1. One of only 669 believed to be still on the road, this 2000 example offered great value and sold for £14,080. A 1988 Porsche 911 Supersport Targa 3.2 M491, one of the rarest 911s available on the market, sold for £40,150. From Stuttgart to Blackpool and a very impressive 2001 TVR Tuscan 4.0 Speed Six sold for £25,300. Living up to its pre-sale publicity, a 2005 Maserati Quattroporte V first owned by Sir Elton John sold for £27,500.

Thinking like a buyer when selling will help

he plate-change period inevitably sees volumes rise substantially in the wholesale markets and stock levels traditionally remain high until at least early May. Any uplift in volume has the potential to change the balance in supply and demand and can impact on values as buyers simply have more choice. The wholesale markets naturally see a rise in partexchange volumes, and in the rush to clear non-retail stock, it is important to remember the basics of remarketing. Presentation and preparation are a given, and it is vital to properly identify and declare the specification, particularly as this gives your vehicles an edge if there are a lot of basespec models about. Don’t forget the paperwork when consigning vehicles for sale, either. Of course, not every part-exchange will have a full service history, but make the most of what you’ve got. If the V5C, MOT and service history are available, make sure they are present at the point of remarketing. The presence of the V5C means no delays in onward selling if the vehicle goes back into the trade, while a service history shows the vehicle has been well maintained by the previous owner and confirms that a warranted mileage is correct as declared. In fact, the service history can have a real, tangible effect on the potential prices vehicles might achieve. Building buyer confidence is hugely important, and even hardened trade buyers value the comfort of knowing their judgment is supported by a comprehensive history file. Missing sundries such as manuals, radio/audio codes and spare wheels are possibly less corrosive to values than a missing service history but definitely have an effect on buyers. Thinking like a buyer when you are selling will help you make the most of your part-exchanges when you send vehicles for sale. And that’s good news in an increasingly competitive marketplace.

Who is Simon Henstock? ‚

He is BCA UK s Chief Operating Officer – Remarketing. Visit bca.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 76 | CarDealerMag.co.uk

Another healthy month of growth for car manufacturing in the UK. bit.ly/growth98

BCA and JCT600 get together in new remarketing partnership Firms share a vision to be the best and deliver a high quality of service

BCA

Dominic lands leading role at new facility

CA has announced an exclusive two-year remarketing agreement with JCT600, the multi-franchise retail group that operates more than 50 outlets in Yorkshire, Lincolnshire, the East Midlands and the north-east. It will start a regular programme of sales for JCT600 at BCA Brighouse every Tuesday and Thursday and five days a week at BCA Leeds. All JCT600 vehicles will be presale imaged and catalogued on BCA Auction View and available to BCA Live Online bidders. Both cars and LCVs will feature in the sales programme. All vehicles will be pre-sale prepared by BCA and will be offered under the BCA Assured scheme. BCA Assured vehicles are independently mechanically tested by the AA to promote buyer confidence at the point of sale. BCA is providing full marketing support and brand awareness for the JCT600 sales with e-marketing and online awareness through BCA’s website, Auction View bulletins and its Showroom feature. BCA will also

John Tordoff: ‘At JCT600, we have a drive and a passion to be the best’ generate support for JCT600 with posters and point-of-sale material. John Tordoff, chief executive at JCT600, said: ‘At JCT600, we have a drive and a passion to be the best and that also applies to who we do business with. It goes without saying that BCA delivers a comprehensive remarketing programme, a substantial range of value-added services and the very best facilities, but just as importantly, there is a shared vision to be the best and deliver a high-quality

service to benefit our customers. We are confident that BCA will remarket our non-retail part-exchange vehicles quickly and efficiently.’ BCA sales director Craig Purvey said: ‘This deal will deliver a substantial range of attractive cars and commercial vehicles for our buyers at BCA. We are delighted that after a rigorous tender process, BCA has been awarded an exclusive two-year remarketing partnership with the group.’

Manheim goes above and beyond with its policy on staff wages AS part of Manheim’s ongoing commitment to its employees, the company has continued to pay staff members above the minimum level required by the government, and it introduced its new wages at the start of February – two months ahead of the introduction of the National Living Wage. Car dealer May 2015 24/4/15 Manheim also employs a number

of apprentices, who will benefit from a comparable percentage increase and will continue to benefit from support with their development during their apprenticeships. The commitment by Manheim underlines the importance that the business places on its employees, as well as positioning itself as an 10:53 Page 1 employer of choice.

No cowboys. Just Just trade trade professionals. professionals.

Michael Buxton, CEO of Manheim UK, said: ‘Our employees are our most important resource and are ultimately responsible for making Manheim a successful business. We recognise the positive impact that the National Living Wage will have and are proud to continue our commitment to pay our employees above the minimum level set out by the government.’

WITH construction well under way of the new 20-acre multi-channel remarketing and logistics facility at Perry Barr, Birmingham, BCA has announced that Dominic Burr, above, will assume the role of general manager. He will be responsible for managing the day-to-day operations at Perry Barr, developing a remarketing programme to complement BCA’s existing sales calendar and recruiting and developing the team. Burr, who has been with the company since 2002, will also become responsible for day-to-day operations at the current BCA Birmingham centre, as well as retaining responsibility for BCA Measham Commercials. Stuart Pearson, BCA operations director, said: Dominic will take a central role in creating a strategic sales programme for Perry Barr and building the team that will run the most modern remarketing centre in Europe.’

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 | 77

IT’S HE RE ... The most advanced web platform is now available for independent and single franchise retailers

NetDirector Auto Lite Rethink your expectations with NetDirector Auto Lite – the most powerful web platform ever built specifically for independent and single franchise retailers. With tools and features usually the preserve of large dealer groups and manufacturers, it’s a web platform without compromise.

Visit gforces.co.uk or call 0844 846 4767 for more information 78 | CarDealerMag.co.uk

MARKET INSIGHT.

..in association with ASE-global.com

A slow recovery for most after the falls of February Caffyns’ upcoming sale of Lewes Land Rover was the most significant activity, says Adam Cottam

ith the exception of Caffyns, listed UK motor retail businesses’ share prices were not yet back to January 2016 levels, although they have recovered slowly following the significant falls in February. The FTSE 100 is also behind its January 1, 2016 position, mainly because of the uncertainty caused by the imminent UK referendum on EU membership and low commodity prices. This has, however, been countered by the weak dollar, which is helping the equity market recovery. Inchcape and Marshall posted strong yearend results detailing growth in revenue and earnings year-on-year, although the majority of the Inchcape growth came from its emerging market ventures. Marshall expanded its like-forlike businesses and benefited from the November 2015 acquisition of SG Smith. Transactional activity was minimal, although Caffyns did agree to sell its Land Rover business to Harwoods Group as part of the Land Rover network reorganisation, subject to the approval of the ordinary shareholders later in April. Vertu made a further statement of intent, raising £35 million through the issue of ordinary shares. The capital has been raised to finance future acquisitions, so we expect to see its expansion continue apace. Share price performance The FTSE 100 index was still not back to its January 2016 level but was slowly recovering from the significant falls seen in February. The weaker dollar has helped UK share prices, but confidence is fragile given the uncertainty posed by the British referendum on membership of the EU. Listed motor retail groups’ share prices have yet to recover to levels seen on January 1 with the exception of Caffyns, whose share price has performed well, despite reporting the potential

Share price movement from January 1 to March 31, 2016

Share price movement from January 1 to February 29, 2016

Pendragon

78.1%

78.4%

Vertu

83.1%

84.7%

Lookers

85.6%

83.2%

Inchcape

92.2%

94.1%

Cambria

96.9%

100.6%

Caffyns

107.3%

103.7%

Marshall

89.4%

90.0%

disposal of its Land Rover business – a significant contributor to earnings looking at March 2015 results. There seems to be a general disconnect with the market and feedback from the industry itself, as another strong Q1 is expected across the board driven by the growing new car market. This optimism isn’t currently being translated into increasing share prices. Financial performance Inchcape released its final year results for December 2015, which were slightly ahead of expectations, mainly because of the strong performance in the non-UK businesses – in particular, its emerging market ventures. Revenue was up by 7.8 per cent on 2014, along with adjusted earnings before interest and tax, which were up 13.2 per cent. The final dividend declared was 14.1p, bringing the total for the year to 20.9p. Performance in the UK wasn’t particularly strong, as despite growth in revenues, margin pressures meant the extra business added relatively little to the bottom line.

Marshall Motor Holdings also posted final year results, showing strong revenue and earnings growth significantly assisted by the major acquisition of SG Smith in November 2015 for £24 million. Revenue was up 13.5 per cent, and adjusted profit before tax was up by 21.4 per cent. Growth in its existing business operations was also recorded, as like-for-like unit sales were up in both new and used (7.2 per cent and 1.5 per cent respectively), complemented by a 2.4 per cent growth in like-for-like aftersales revenue. Transactional activity It was a quiet month for transactions, with the only significant activity affecting Caffyns as it agreed to sell its Lewes Land Rover business to Harwoods. A deal of £5.7m plus an amount for vehicle and parts stock at transaction date (April 29) was agreed, subject to approval by the ordinary shareholders during the company’s general meeting on April 21. The company will retain the property and lease it to Harwoods while the new operator establishes a combined facility. Caffyns decided to sell the site before its Land Rover franchise agreement ends on May 31, 2016. Jaguar Land Rover has decided not to extend the agreement as part of its continuing network reorganisation favouring larger geographical groups representing franchises. Caffyns was not selected as this was its only point of representation and Harwoods already represents Land Rover across six sites in the surrounding territories, along with four Jaguar sites. To the end of March 2015, the Land Rover business accounted for 17.7 per cent of Caffyns’ revenue and 40.6 per cent of Caffyns’ underlying profit before tax. Vertu Motors raised £35 million via a share issue during the month to fund future acquisitions and continue its rapid expansion.

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 | 79

We have what you need. We have more candidates, more recruiters and fill more vacancies than any other UK automotive recruitment company. We have over 100,000 candidates only a phone call away from one of our 45 automotive recruitment specialists. Dealer Principals, Sales and Aftersales Managers, Vehicle Technicians, Service Advisors, Sales Executives – Fact is, there isn’t a vacancy in the motor trade we can’t fill.

Get in touch with us today to find your perfect placement.

UK’s No.1 automotive recruitment consultancy

PROUD SUPPORTERS OF

01603 701077

perfectplacement.co.uk 80 | CarDealerMag.co.uk

WINNER ‘Recruitment Agency of the Year ’

#CDPower

RECRUITMENT.

More than 50 jobs created at new Motorpoint branch

APPOINTMENT

New director at Lexus division

TOYOTA (GB) plc has announced the appointment of Ewan Shepherd as the new director of the Lexus Division. He moves to the role from his position as Toyota GB sales director, a post he has held since 2013 and in which he has led Toyota to three consecutive years of growth. He succeeds Richard Balshaw, who was recently appointed director of customer services, following the retirement of Steve Settle. Shepherd joined Toyota GB in 1999 and held a number of field-based roles before his first executive appointment as Peterborough and Widnes. general manager, operations In our picture, Wakefield mayor for Lexus in 2006. Cllr June Cliffe; Motorpoint Castleford In 2011, he took up responsibility for fleet and general manager James Faulkner, left; vehicle remarketing before Castleford Tigers head coach Daryl leading the sales operations Powell, centre; and members of the team in 2012. His promotion Tigers first team squad attend the to sales director followed in launch of the new £5m Motorpoint September 2013. MMG careers Castleford site.advert_Layout 1 26/07/2012 15:29 Page 1

Castleford site stocks 500 new and nearly-new low-mileage cars for sale

otorpoint has created more than 50 jobs with a new branch in Castleford. Wakefield mayor Councillor June Cliffe and players from the rugby league team Castleford Tigers welcomed customers to the official opening, following a £5m investment by the car supermarket in the nine-acre supersite in Whistler Drive, Glasshoughton, Castleford. It brings the total number of branches Motorpoint now has to 10. Customers at the opening weekend were able to put their driving skills to the test on a special 25ft Scalextric circuit used by the likes of Formula One champion Lewis Hamilton, as they aimed to record the fastest time. General manager James Faulkner said: ‘We’re absolutely thrilled to have finally opened our doors to

the public. It’s taken months of hard work to get to this point but it’s definitely been worth it seeing so many people coming through the door and experiencing for themselves Motorpoint’s awardwinning combination of choice, value and service in West Yorkshire.’ Motorpoint Castleford stocks 500 new and nearly-new low-mileage cars on site from 30 manufacturers, with instant access to a further 6,000-plus cars in group stock. The company also has branches in Birmingham, Birtley, Burnley, Chingford, Derby, Glasgow, Newport,

Only

Available on iPad

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.

FREE app download free subscription interactive content

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.

Search for ‘Car Dealer Magazine’ in the iTunes store Powered by

marshallweb.co.uk

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. 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

www.marshallcareers.co.uk

to find out more about the Group and see our current vacancies.

CarDealerMag.co.uk | 81

DATA FILE.

James Litton TRADER TALES

So what will the next eight years bring us?

he earthquake which created the catastrophic tsunami in 2004 was one of the few earthquakes on record that had been preceded by a foreshock. In November 2002 a smaller earthquake measuring 7.3Mw was then eclipsed on Boxing Day 2004 by a monster 9.1Mw quake. I have been writing for Car Dealer for almost eight years and only two seismic events in the retail motor industry have occurred during this time: webuyanycar.com and Carwow. These tremors have not created rubble-inducing chaos, but the rapid progression of both concepts has modified the retail landscape for dealers. So why such a dramatic analogy? Recently, The Guardian ran a story which said that government funding had been allocated to Dyson for the development of driverless cars. It was nothing new. In 2005, a team led by Sebastian Thrun won a £2 million prize for their driverless car from the US department of defence. At the start of March, Tim Cook, the Apple CEO, compared working on major projects to Christmas Eve and that one particular project ‘was going to be like Christmas Eve for a while’. Given the creativity within a company like Apple, this, of course, could refer to many ideas. Apple has also bought the domain names apple.car, apple. cars and apple.autos, but given their working relationship with car manufacturers, this too could be easily dismissed. The most illuminating evidence of Apple’s future automotive involvement lies in the appearance of a new kid on the block, Faraday Futures, a car-manufacturing start-up with $1 billion working capital. Tesla revealed their most affordable car yet last month, the Tesla 3. Tesla do not sell a driverless car (yet) but they have abandoned traditional retail networks. I live relatively close to their Cribbs Causeway store and it is like no other car dealership I have been to. Just a shop, a car and lots of inquiries. Still, no need to panic, right? Daewoo showed that expertise in shipping and a desire to change car-buying behaviour does not mean the customer is prepared to forego traditional franchised models. Wrong. Webuyanycar and Carwow have proven that there is appetite for change. What happens when new, sophisticated engineering giants like Apple and Dyson or consumer behaviour experts like Google start selling their cars using non-traditional platforms? And if you think that aftersales will be your salvation, think again. Your iPhone breaks, you have a new one the next day. We are talking low-cost cars with very little lubrication and remote diagnostics. I can’t wait to see what will happen during my next eight years with Car Dealer…

‘If you think aftersales will be your salvation, think again.’

Who is James Litton?

James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 82 | 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: bca.co.uk T: 0344 875 3480 E: customerservices@bca.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 couldn’t fool our detective customer

s anyone who has ever sold a car at a dealership knows, the importance of getting it out of the door on time for target is not to be underestimated – and the customer is occasionally cajoled into taking the car when it suits the all-powerful sales manager. For one handover we had recently, the customers, after being railroaded into collecting their new estate car on the last day of the month (for the best deal of course), decided to turn up early so they could get on with the plans we had made them change. Needless to say, I was nowhere near ready for them, and when they arrived, I was still mid-McChicken sandwich. Snapping into action, I got them settled and forced a load of paperwork onto them to buy the minutes I needed to get the car ready. In actual fact, the car was good to go all bar the fuel that had been promised. I played fuel-light roulette all the way to the nearest petrol station, my customers blissfully unaware of the panic behind the scenes. A generous £10-worth later, I was ready to head back, and just had to quickly whip round the outside of a dirty Transit that was at the pump in front. I can only assume that the dirt somehow camouflaged the van or made it look smaller, but in my haste to get back, I got it horribly wrong and caught the rear bumper of the Transit, mangling the rear quarter panel and passenger door of the new car. On my return to the dealership, I explained the issue to my sales controller and he took charge, telling the buyers that we had had a minor bumper scuff. He added that we had sent the car for immediate repair and would have it ready for them in no time at all. One of the customers – who, incidentally, was a police detective – decided we may just be hiding something. And so it was that he appeared at our favoured body shop to be confronted by his shiny new estate car being prepped for an emergency side of paint. Now any salesman worth their salt has a sixth sense for when an angry customer hits the forecourt and fortunately mine kicked in with just enough time for me to make a break for the hills (or the boardroom upstairs) as Mr Detective burst through the doors. After two hours of shouting and much cursing, the waters calmed and and he left. As I returned to finish my lunch, I realised that we had learned some valuable lessons, not least that a McChicken sandwich does not taste any the worse after a few hours in a desk drawer.

‘I can only assume that the dirt camouflaged the van.’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email dave@blackballmedia.co.uk CarDealerMag.co.uk | 83

KEY NOTES

..in association with Traka

The wonder of the web There’s money to be made as the online ‘man in the middle’, says Paul Smith

n Auto Trader-branded study from last year found that new and used buyers spend 75 per cent of research time online for their next car purchase. Google stats suggest that these customers take an average of 2.7 months to decide on a purchase. One might naturally think that a surefire approach to grabbing and qualifying online sales leads is to use Google pay-per-click (PPC) campaigns to provide leads against specific keywords. In 2012, Google tested an online sales lead generation service called ‘Google Cars’ in the Palo Alto and San Francisco areas. People searching for individual makes or models could compare prices and specifications of vehicles in nearby dealerships that had entered into agreements with Google. If the user found a car that met their desired specification they could, while still within Google’s platform, arrange a meeting with the dealership to test-drive the car and buy. However, it didn’t prove a great success and Google canned it. Judging by the rapid rise and aggressive expansion of the likes of US-based online sales lead generation and nurturing service Autobytel, there is a huge potential and big bucks to be made as the online ‘man in the middle’ between the search engine and the dealer or OEM. And it looks like the same trend is heading across the Atlantic if the successful £12m-plus funding round in January by Carwow is anything to go by. Carwow allows users to put details into its platform about the car that they want to buy, including the model, year and spec. The request goes to all dealers on the Carwow platform and

the user gets up to five offers from the best-rated dealers, whom they can then contact directly. The investment round will help Carwow fund advertising and cover costs associated with training dealers to use the platform. The money will also be used to build several new products and hire more people across the company’s sales team. Carwow co-founder James Hind said: ‘We’re excited to roll out our service even further on the back of strong growth in 2015. A new car is an important purchase, typically a person’s biggest after their home. ‘At Carwow, we enjoy working with the industry to make things simpler and more efficient for all involved. This new round of funding gives us the firepower we need to change the way the UK buys cars.’ The more established online sales platforms such as AutoTrader.co.uk are also seeing strong growth. Auto Trader chief executive Trevor Mather reported sales revenue up eight per

cent for the year ending in March 2015 and explained that it was benefiting from more dealers and manufacturers increasing advertising on the site to grab online customers’ attention. ‘Growth has mainly come from providing greater value to retailers in a marketplace where consumers are increasingly researching their next vehicle purchase online. It has also come from display advertising, where in particular manufacturers have increased their advertising spend on the marketplace in recognition of a growing and relevant audience for their brands.’ Where does all this leave car manufacturers themselves? Certainly, if you look at the likes of Land Rover they are entering the online fray by investing more heavily in lifestyle content that helps build brand engagement and delivers qualified sales leads straight into the laps of relevant local dealers. And where does all this leave car dealers trying to proactively optimise online new and used car sales lead generation right now? We think they are likely to be: l Improving their websites, adding more lifestyle and brand-specific content more quickly, as well as ensuring car inventories are posted online faster with flattering photos and appropriate tagging as quickly as possible; l Investing in building commercial relationships with some of the new breed of intermediaries such as Carwow; l Continuing with their engagements with established online players such as AutoTrader. co.uk and Carbuyer.co.uk; l Refining Google PPC campaigns.

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

84 | CarDealerMag.co.uk

MONEY TALKS

..in association with Paragon Car Finance

Spot the difference . . . Hire purchase, lease purchase or PCP – do you know the key features of each?

ack in 2010, just over half of new car purchases were funded with dealer finance. By 2015, this had grown to a massive 81.4 per cent. However, if asked to explain the range of dealer finance options to a customer, would you be able to do so? Here, we outline the differences, just in case you need a reminder or want to explain things to a new recruit! Hire purchase: Customers using hire purchase to fund a car will pay an initial deposit followed by equal monthly instalments throughout the term of the agreement. Once the last payment is made, together with a final option-to-purchase fee, the customer owns the car outright. Lease purchase: Lease purchase agreements are a bit more complicated. In this arrangement,

the customer’s payments are split into three different buckets: an initial deposit, fixed monthly repayments throughout the term of the agreement, and a large, lump sum payment at the end of the deal, which is often referred to as the ‘balloon’. This type of arrangement means that the fixed monthly payments can be set at a lower level than they would be under a hire purchase agreement, potentially allowing customers to choose a higher-value model. However, it’s critical for lease purchase customers to understand that they must make the final ‘balloon’ payment. They can choose to cover the payment using cash, selling the car and using the proceeds to fund the payment, or refinancing the amount with another loan or credit agreement. However, there is no option to simply return the car to the dealer.

Personal Contract Plan or PCPs: PCPs have really taken off since the early part of this decade and are now the most popular form of new car finance in the UK. At first glance, the PCP seems very similar to a lease purchase agreement, featuring a deposit, fixed monthly repayments, and a final lump sum known as the ‘guaranteed future value’. However, there is one important difference with a PCP: the customer can choose whether or not they want to pay the final lump sum and take ownership of the car. If they want to keep the car or use it as partexchange, then clearly they’ll need to make the payment. If not, they can simply return it to the dealer at the end of the term and walk away. PCP customers should, however, make sure that they keep within any mileage limits, as an over-run will incur penalties.

Any questions?

If you‘ve a burning finance question that you‘d like answered in a future Money Talks feature, send it to Paragon Car Finance at pcf@paragonbank.co.uk

I need direct access to underwriters for my trickier customers... Hard to place deals? Paragon Car Finance offers dealers direct access to our highly experienced underwriters ensuring that all deals are considered individually. Our highly competitive packages, as well as our on-hand team of underwriters, ensures the best experience for your customers, helping you to close the deal. Get in touch with us to arrange a meeting with one of our Regional Sales Managers to find out more.

0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/local BPCF12390 (03/2016)

CarDealerMag.co.uk | 85 BPCF12390 - Half Page Ad Car Dealer.indd 1

23/03/2016 16:23

HOT PROPERTY

..in association with Rapleys LLP

Beware the backstreets Going down the industrial unit road may not always pay off, discovers Geoff Sayer

re ‘old-fashioned’ forecourts dead? asked Chris in the Feedback section of last month’s Car Dealer Magazine, and following the various responses I was prompted to give the matter some thought. Have display forecourts, car sales pitches, car lots et al had their day? Are dealers really better served by taking backstreet units or should the roadside remain the place for car sales? It seemed to me that the case for moving away from the main roads is based primarily on cost, because roadside concrete is perceived to be expensive when you can create a large and effective virtual shop window on the web. But is that really the case? It’s true to say that an online presence has opened up many new opportunities that just didn’t bear thinking about in less tech-savvy days, and I’ve come across many car sales sites

Who is Geoff Sayer?

tucked away within industrial locations, but is it cheaper? The two largest property costs are rents and business rates, so I took a brief look at my home town, just outside Peterborough, and focused on four traditional car sales sites either on the main road or in the town centre. I compared the sizes of those sites, assessed the number of cars displayed (all possible online) and then looked at the cost of renting equivalent-sized warehouse space in the town. What did I find? Well, to replace the display area of three of the sites with an average industrial unit appeared to suggest increases of between seven and 17½ per cent in the rateable values, and believe me, rents are cheap in my town, at less than £3.00 per square foot. The one exception happened to be the best specified site in the town centre and on the face

of it there may have been a five per cent saving. It follows that in a town where industrial rents are double or treble that figure, then the cost base rises dramatically. Buildings get valued at a rate per square foot and those rates can fluctuate significantly, whereas car sales pitches get valued far more subjectively on a rate per space or at a rate per square metre. What of the pitfalls? Firstly, however suitable the building or land may be, in almost all cases you will have to obtain planning permission for a change of use for car sales, which may or may not be forthcoming. Secondly, beware the landlord who may be pleased to see a retail-type use ‘enhancing’ the value at the back of their industrial estate – and where will they look to get evidence of the rental value of display spaces? That would be to the ‘expensive’ display forecourt on the main road!

Geoff is a partner in the market-leading automotive & roadside team at Rapleys LLP. Contact him by mobile on 07769 671488 or email grs@rapleys.co.uk

86 | CarDealerMag.co.uk

THE FLEET.

LATEST FROM THE FLEET... Welcome report:

KiaSportage I

had high hopes for the new Kia Sportage. It’s no secret that here at Car Dealer we are big fans of the outgoing model. It’s a Used Car Award winner and we know how much dealers love them. So, can Kia improve it? What better way to get a feel for the new model than with a 2,000-mile weekend bolt down to Bordeaux and back? Two friends and I were heading there to see a good friend for a catch-up. We needed something comfortable, not too juicy and with enough room for our luggage plus sufficient space for a few extra bottles of wine on the way back. Although the Sportage is average size for its class, at 4,480mm long it’s shorter than a Kuga. However, its wider and clever packaging mean a larger boot at 491 litres that easily coped with three weekend bags, a large box of assorted ‘bits’ and three blokes’ worth of purchased wine. The car doesn’t look overly big, but legroom was more than acceptable both front and back, and despite a long seven-hour journey through France, no one complained about feeling uncomfortable in it. In fact, it delivered us to our destination feeling

just as relaxed as when we had done the same journey in a BMW X5. The interior is an evolution of the previous generation rather than anything too wild, which is a good thing. The build quality is excellent with high-quality soft-touch plastics all round and comfortable seats. Being a First Edition, Kia has thrown the lot at this car, though the First Edition stickers could be a little more stylish. Our car came with heated and cooled seats, heated steering wheel, cruise and comfort entry, along with what is now becoming the standard fare of xenons, touchscreen, sat nav, DAB and Bluetooth. This is one of the best cabins on the market now: a classy mix of high-quality plastics and

THE KNOWLEDGE Model: Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2sec Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 2,809 THIS MONTH’S HIGHLIGHT A Bordeaux run that really rocked

switchgear with a subtle and classy (if not overly stylish) look. This was the first time either of my passengers had been in a Kia and both are now seriously considering one as their next vehicle. Driving 2,000 miles gave us the chance to cram a month’s driving into just four days. Although it rides quite firmly, it’s a step forward in refinement over the third-gen car. The steering is improved and the ride quality is excellent, with very little road noise and surprisingly little body roll for an SUV. The 2.0 CRDi engine is largely carried forward from the previous car, and while it’s certainly quiet enough, it didn’t deliver quite the mpg we were hoping for – at a shade over 32mpg we were a little disappointed. However, carrying three people and all our baggage plus continental cruising speeds probably hurt the fuel economy. The next six months or so will give far more insight into the Sportage. However, based on four intense days, 2,000 miles and a variety of traffic, Kia has done what it needed to: taken the Sportage and improved it just enough. Andy Entwistle @CarDealerAndy

CarDealerMag.co.uk | 87

THE FLEET.

LATEST FROM THE FLEET... Second report:

Third report:

Fifth report:

MitsubishiOutlander

SkodaYeti

CitroenCactus

So much more than practical – with a large boot and a smooth, safe drive that’s perfect for families

Turns out Yeti is smarter than the average bear...

Shocks all the way right up to an avian tragedy

EVERY time I look at the Yeti I get a mental image of Yogi Bear. Why, you ask? Well, while it closely resembles a big softie (and its colour is wonderfully similar to Yogi’s green hat and tie), I think the reference is sparked more by its ability to make you feel cosy in any given situation. What I love most about this sprightly crossover is the fact that although it’s somewhat cute it’s also a rugged piece of kit. This mighty Skoda can handle me loading it up with a boot full of junk for the tip just as much as it enjoys me taking it down some boggy country lanes. And while leaping across potholes, the Yeti is so unnerved by the whole experience and the cabin remains so peacefully quiet, you could serve afternoon tea. It’s also very well equipped – there’s a full leather interior, a huge panoramic roof, heated seats, cruise control, automatic lights and automatic wipers, making it the perfect cruiser. I would argue the 1.2 TSi is a little too small and not quite ‘torquey’ enough for our little warrior. But I can learn to live with that. Sophie Williamson-Stothert @1Sophie_W

THIS month I made a selfdeprecating quip about how the Cactus looks. I think I must have hurt its feelings, as I’ve been paying for it ever since. It started *zap* with a surprising build-up *zap* of static electricity *zap*. It doesn’t matter how far or fast *zap* I drive it, it gives me a significant jolt right through the fingers *zap* whenever I get out and close the door. Closing the door was how things escalated. I’m still not sure how I managed to get out and leave my leg in the way, but apparently I did. And boy did that injury bleed, thanks to a door bottom corner that’s like a shuriken. The fist-sized bruise it left didn’t elicit much sympathy... The day after the Cactus stabbed me it killed a pigeon, which picked the wrong moment to fly out from a hedge. I expect the poor bird also received a static shock. And then I shut my fingers in the boot. On the positive side, I’ve been with the Cactus for 1,500 miles this month and averaged 64mpg, so I won’t hear a bad word said about it. Not least because I don’t want it to hurt me again. Andrew Evans @snavEwerdnA

THERE are a lot of things my wife and I don’t agree on and the appearance of Mitsubishi’s Outlander is one of them. She prefers the Outlander before its recent facelift, with the old front bumper, while for me the revamped model, with its ‘Dynamic Shield’ front is much more stylish. Obviously I’m right. Happily we both agree it’s a fine car. The recent improvements aren’t just on the outside, and while the Outlander’s PHEV sister gets all the attention, the latest model having been launched by Boris Johnson in Japan last autumn, the diesel is a good alternative to the more popular Honda CR-V, Kia Sorento and Hyundai Santa Fe. Among the latest changes, the latest Outlander diesel has had 40 noise, vibration and harshness improvements and as the dad of an eight-week-old baby, I can testify to what a smooth drive it is. I can often be found driving around our local Waitrose car park while the baby sleeps soundly in the back and my wife nips in to abuse their free coffee. 88 | CarDealerMag.co.uk

With precious cargo on board it’s also good to know the Outlander has a five-star Euro-NCAP safety rating. The ride and handling has been improved and the Outlander feels well made. The interior is much improved on the last model and there are seven seats plus a very large boot (in five-seat mode), which easily accommodates a double buggy and all the other paraphernalia kids come with. But to describe the Outlander as practical would be to do it a disservice. This latest model is now so much more than that. Gareth Bethell @garethbethell

THE KNOWLEDGE Model: Outlander GX4 2.2 DI-D (manual) Price: £31,499 Engine: 2.2-litre turbodiesel Power: 147bhp, 380Nm Max speed: 124mph 0-60mph: 10.0 seconds Emissions: 139g/km Mpg: 53.3 (combined) Mileage this month: 1,555 THIS MONTH’S HIGHLIGHT The baby dozing off in the back!

THE KNOWLEDGE Model: Skoda Yeti 1.2 TSI DSG SE L Price: £24,900 Engine: 1.2 TSI Power: 108bhp, 175Nm Max speed: 111mph 0-60mph: 11.2 seconds Emissions: 128g/km Mpg: 51.4 (combined) Mileage this month: 895 THIS MONTH’S HIGHLIGHT Stress-free motoring day and night – even on the M25 in rush hour.

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 0-60mph: 10.5 seconds Emissions: 89g/km Mpg: 83.1 Mileage this month: 1,533 THIS MONTH’S HIGHLIGHT Driving all day without refuelling.

LONGTERMERS

Fifth report:

Seventh report:

Ninth report:

HondaCivic Tourer

Mazda2

RenaultTwingo

FordFocus ST

Caution: Driving this may Size does prove to be add years to your life important – for stowage

Turbo leaves a lot to be desired in city runabout

Parting is painful sorrow on a number of levels

I’VE always feared I’d get old before my time and this confirms it: the realisation that I’d happily own a Honda Civic. It’s not without good reason, though – I reckon the Tourer is all the car most people would ever need. Let’s examine the evidence... For starters, it’s massive inside, with its ‘magic’ rear seats that fold every which way, and a suitcasesized compartment under the already cavernous boot. Happily, it’s not gigantic on the outside. It’s good to drive too, probably not as sharp as a Leon or Focus estate dynamically, but it rides well and there’s some fun to be had throwing the Civic’s stubby little gear lever around in anger. Probably more crucially, it’ll get 60mpg easily if you’re careful with the right pedal. Downsides? The driving position’s a tad high, thanks to 50 litres of diesel under you, and some will probably find the Civic’s array of LCD screens a bit perplexing at first. Get over these foibles, though, and the Civic Tourer makes a very credible case for itself. Now if you’ll excuse me, I need to top up my supply of Werther’s Originals… Jon Reay @jonreay

OUR little Twingo does have a tendency to be overlooked. A little too buzzy for longer journeys, it’s mostly used for short trips at lunch or the odd drive back home. I was graced with its presence for a few days this month and am happy to report it ain’t all that bad. Yes, it’s very small and has the tendency to take the characteristics of a kite during high winds. It’s also extremely boosty, thanks to a small capacity engine with a turbocharger bolted on. That means it’s not as easy to drive around town as you’d think. Press the accelerator, count to five and hopefully by that time the power has arrived. Sometimes it doesn’t. Boot room is hampered a bit, too, with the engine at the back. Thankfully, it isn’t all bad news. The Twingo is a fantastic car to park, thanks to each of its teeny wheels being placed right on all four corners of the car. The steering is light, but actually has a relatively good amount of feel to it, and the Bluetooth connectivity system is also one of the best I’ve come across. The Twingo would suit a turboless engine. As a little city runabout though, it does the job just fine. Jack Evans @jackrober

MY time with the ST was short but sweet: just one weekend, in fact. But once we got acquainted, it really came into its own and I praised its plentiful power. Wet roads on the Saturday night made me very grateful to the colleague who had replaced the balding front tyres – at the eyewatering cost of £200 each. Minimal tread coupled with 247bhp coursing through the front wheels on to greasy roads wouldn’t have made for a relaxing drive. After an uneventful Sunday for the ST, I felt a twinge of guilt as I began my commute to the office. The hot hatch had been on my driveway for most of the weekend, barely covering 50 miles – albeit an expensive 50 miles, as despite the ST’s claimed fuel economy of 41.5mpg, it had used £10 of fuel. Having hurt my big toe the night previously (a serious injury, might I add), the ST’s heavy clutch proved especially difficult as I made my way out of a traffic-logged Portsmouth and on to the motorway. A final blast along the M27 made handing the keys in when I reached the office all the more painful. Laura Thomson @lauramayrafiki

THE KNOWLEDGE Model: Civic Tourer 1.6i-DTEC SR Price: £24,940 Engine: 1.6i-DTEC Power: 120bhp, 300Nm Max speed: 121mph 0-60mph: 10.3s Emissions: 103g/km Mpg: 55 (combined) Mileage this month: 1,500 THIS MONTH’S HIGHLIGHT Learning that I’m actually an ideal Honda customer...

IN A surprising turn of events, I was actually allowed to use my assigned long-termer for most of the month… which was nice. As well as travelling all over the place for photo shoots, it’s also taken me up and down the country on adventures less work-related and ultimately more fun – most notably, practice with friends for the impending Snowboard Spring Break. And for the first time since the Mazda’s arrival, this proved more of a challenge than I’d expected. Snowboards are long and the boot isn’t, and with two extra passengers and their kit to pack as well, an awkward man-versus-car stand-off developed. This isn’t a problem I’ve faced before doing similar trips in my friend’s Golf, but then the Mazda is a smaller class. But after multiple attempts and abandoning everything nonessential as well as the chunkier board bags, everything was stowed. The Mazda has been so capable that it’s easy to forget it’s not a large car. It handles 99 out of 100 jobs without fault – but if you want to go snowboarding with friends then perhaps take something larger… Jonathan Fleetwood @jfleetwoodphoto

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: 946 THIS MONTH’S HIGHLIGHT Frugal sipping of diesel effectively paid for snowboarding. Win-win.

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: 592 THIS MONTH’S HIGHLIGHT Deceptively powerful performance.

THE KNOWLEDGE Model: Ford Focus ST-3 5-door Price: £27,730 Engine: 2.0-litre 6-speed manual Power: 247bhp Max speed: 154mph 0-60mph: 6.3sec Emissions: 159g/km Mpg: 41.5 (combined) Mileage this month: 1,083 THIS MONTH’S HIGHLIGHT The fresh grip of the new tyres on those wet, wet roads. CarDealerMag.co.uk | 89

BAGGOTT.

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

Here’s a question: Why do I dislike interviews so much?

hate interviews. For someone who has technically built their business on journalism, that’s not exactly a good thing to say, but I’m not talking about sitting in a room with a man in a suit talking about cars – I can get along just fine with that. No, what I’m talking about is nervous people, sweaty palms and stupid, utterly useless chit-chat about past careers. The problem is, I know if I want to hire someone within five minutes of them walking into the room. That means when I don’t want to hire someone, I have to drag it all out for another 30 minutes of boring conversation just to look polite. My business is built on personalities and talent. And if they haven’t got the first, then frankly I don’t really care about the second. I know that sounds like I’m talking myself out of hiring some brilliant people, but in a small business like mine, what matters most is getting along with the rest of the team. It’s about fitting in – if I think they’ll do that, I’ll then be much more interested in their ability to string a sentence together. I’ve interviewed some absolute lunatics over the years. There was one who clearly hadn’t showered for a week before turning up – either that or he’d used sewage for shower gel. Then there have been the swathes of sweaty palms and countless ridiculous answers to questions that have quite clearly been picked up from a book. Note to interviewees: Don’t read a book about getting hired first. Be yourself and answer honestly – with your own answers, not ones you think the interviewer wants to hear you say. The problem is, finding good people is hard work and it’s not just tough down here in sunny Gosport – I know it’s just as difficult out there for dealers all over the country. I often hear from dealers how difficult it is to fill positions – few people leave school with the ambition of being a car dealer, which is where I reckon your trouble starts. Yes, being a salesman might mean long hours and hard work, but the rewards are great if you’re good at it – and it can pay extremely well. The industry needs to work hard on getting that message across and then work out the best way to check whether they’re the right people for the job. I’m sure there are many dealerships out there

Who is James Baggott?

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

with brilliant ways of assessing candidates. There’s no golden rule or magic formula to getting it right, because every business is different. I’ve started to come up with a plan for mine. Firstly, I’ve decided to be a lot more honest in interviews – if there is no way I’m going to hire a candidate, I’ve decided to tell them at the end. Yes, that’s harsh – and can be a little crushing – but I make sure I tell them why and give them honest feedback C as to how they can better their chances next time. That way, hopefully, they’re not put off forever, they might M go on to try again and they’ll get far more out of their trip to Y the coast than a ‘sorry, you didn’t get it’ email. I’ve also begun trialling group interviews. CM OK, I know they’re about as welcome as a trip to the MY dentist, but I’m looking for outgoing, confident people who CY can get on with others and I have decided that throwing them into a room together might just be the best way to CMY do that. K I read a brilliant piece recently about how Google hires its talent and the importance it places on finding the best people. Hiring goes to the very core of what Google does and is ingrained not just in the managers’ responsibilities but of all members of the team. Everyone gets involved – even those who the hopeful candidate might be working alongside can be the ones asking the questions. And it doesn’t stop there – those first interviewers feed back their comments to an interview panel who ensure the process is fair and above all else that they’re staying true to Google’s values. Google says: ‘While involving Googlers in our process does take longer, we believe it’s worth it. ‘Our early Googlers identified these principles more than 10 years ago, and it’s what allows us to hold true to who we are as we grow.’ It seems to be working for them then, so will probably be good enough for us. What I take from the way the world’s search engine does it, though, is that hiring works better when you do it collectively, so from now on potential candidates can look forward to a chat with any one of my brilliant team. Delegation, you see, is the art of great management. And it means I don’t have to do it any more.

He’s the founder of Car Dealer Magazine and Chief Executive Officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. 90 | CarDealerMag.co.uk

CarDealerMag.co.uk | 91

EVERYTHING YOU NEED DO YOU NEED STOCK? DO YOU NEED FUNDING? DO YOU NEED TO BUY ON THE MOVE? DO YOU NEED STOCK COLLECTED OR DELIVERED?

DON’T JUST THINK BCA, DO BCA… bca.co.uk 92 | CarDealerMag.co.uk