Car Dealer Magazine: Issue 99

CDX16: PLAN YOUR DAY WITH OUR HANDY HOUR-BY-HOUR GUIDE

2 M

Business Publication of the Year

Issue 99 | June 2016 | CarDealerMag.co.uk | £3.50

LEAD GENERATION: THE EXPERTS WHO ARE READY TO HELP YOU MAKE MORE PROFIT

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IGNITION.

EDITORIAL PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

FEATURES EDITOR Sophie Williamson-Stothert

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

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

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surprises me just WELCOME. IThowOFTEN open and honest some people in this business can be, but it’s been a long time since I was as pleasantly surprised as I was this month.

Joining us on the TradePlates.TV sofa for our recent live broadcast was Lookers managing director Nigel McMinn – and he bowled me over with his candid chat about a huge variety of areas of his business.

For those of you who haven’t caught up yet, Trade Plates is our online video channel for the motor trade. As well as a host of interesting features and films, we broadcast live with different members of the automotive industry twice a month – and McMinn, pictured above, was the most recent guest to join us on the red car seat sofas.

He spoke openly about Lookers’ purchase of his old firm Benfield and revealed it has been the most seamless acquisition he’s ever been involved in.

He talked openly about pre-registrations, about his love for his new company car (you’ll have to watch to find out what it is) and about how he believes new car registrations are going to top three million a year in the not-too-distant future.

McMinn and his team have carried out extensive research on new car sales over the decades and have charted the rises after recessions.

He believes there is still a huge amount of pent-up demand following the 2008 crash and that we could be in for an incredible 15 years of growth.

It’s a fascinating interview and can still be seen now – head over to TradePlates.TV/live where you can watch it in your own time.

We’ll be hosting many more interviews like this in the coming months, so keep an eye out on our website and TradePlates.TV for news of what’s happening and when.

You can read more about McMinn on p24.

AS YOU can see from our dramatic cover, we’ve been out playing in the new BMW M2 this month. Unfortunately that power-sliding picture isn’t me – I was dispatched to Wales to shoot three iconic M cars with the team.

Prising the keys from the fingers of the BMW press team wasn’t easy – especially in their 100th anniversary year – so when the cars arrived at our favourite B&B in North Wales I was simply glad they’d turned up.

I drove each of them in turn and every one is special.

My favourite, though, has to be the M3 CSL. This 23k-mile example was stunning and still drove in a way that set the hairs on the back of your neck on end.

It probably helped that I drove the very first CSL in the country back in the days when I worked at a weekly car magazine. It’s amazing that more than a decade on it still feels as fresh and as fast as it did back then. Read our M car special from p40.

WE’RE counting down the days now to CDX16 and it’s looking likely to be the retail automotive industry event of the year. We’ve got brilliant keynote speakers from Twitter, Facebook and Google plus many more reasons to attend Silverstone on May 24. Tickets are free and you can register right up until the day before, so clear your diary and head on down. You’ll find me hosting the Car Dealer Live stage so come and say hello. You can read the latest news on the Expo on p18. Enjoy the issue.

James Baggott CEO, Baize Group CarDealerMag.co.uk | 03

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INSIDE. ISSUE 99 I JUNE 2016

Dashboard Feedback Kia Genius training

40

Car Dealer Power Focus on West London VW The launch of the new BMW M2 got us thinking... how about a celebration of all things ‘M’? A rather special road trip was in order...

16 A new era for a well-known Portsmouth dealership

22

The appliance of science sees Shell unveil a clever concept car

New era for Prestige Diesels CDX – just a few days to go!

Rolls-Royce extremes Around the UK Around the World Finance Big Mike

54

‘‘

How paint protection can help deliver more aftersales profit

Mini JCW Convertible Ford Edge

Big change equals uncertainty and the retail public does not like uncertainty.

James Litton

Forecourt

82

Feature BMW M Division special

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

87

Key Notes Money Talks

Another long-termer arrives...

But our new Ford Mondeo Estate leads to a spot of motorway bother

Hot Property Long-termers James Baggott

06 10 12 14 16 18 20 26 29 30 35 36 38 40 70 72 75 76 79 81 82 84 85 86 87 90

OUR EVENTS...

As voted for by dealers, the Car Dealer Power Awards are unique.

Got a product or supplier you really like working with? Turn to page 12 to make a nomination.

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 18-19 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

Two hours of my life I HAVE just spent the best part of two hours – yes, two hours – with a ‘customer’. This chap turned up this morning and after a very thorough examination of the car he was interested in (he brought a kneeling pad and blanket), he asked if he could see the paperwork.

He went through all the old MOTs and service history in great detail while at the same time boring me with information about every car he has owned since passing his test some 30 years ago. He also told me about virtually every repair he has done to each car.

He asks to go on a test drive. He wants me to drive for at least five miles so he can ‘feel the ride’. Apparently, this is the only way to know if there are any problems.

He liked playing with all the controls while I was driving. I really appreciated the hot air blowing in my face while trying to explain how the sat nav works.

He then took over as pilot and drove at about 35mph in a 60 and I could see the queue of car building up behind me... still telling me about all the cars he has owned.

We get back to the ranch and he says, ‘is the price negotiable?’ OK, we are getting somewhere.

After another boring chat in the office for half an hour and a bit of to-ing and fro-ing with the price he finally says it: ‘I have got one more to look at.’

At least the sun is out!

Max Branning This actually made me laugh out loud. We all get them. Never mind, the next one will just come in with his hands up, saying: ‘I’ll just take that, no need for a test drive!’ jimreidvehicle Thing is, do you really want to sell a car to that kind of person? They will be back in 18 months expecting you to replace the tyres free of charge ‘under warranty’. . . or suing you for misrepresentation on your FSH car because said car was 1,500 miles overdue a service in 2010.

I’ve never been able to get my head around the

Picture of the month The Car Dealer gang were out and about at BCA Blackbushe during April, lining up a great feature for the 100th edition of the magazine next month. While we were there, we also took the chance to shout about CDX, which takes place at Silverstone on May 24, as you MUST know by now! Those in charge of spreading the word were advertising account manager Jon Hickey and marketing and events co-ordinator Amy Duff. They certainly seemed to be enjoying their work! ones that go over the (faultless) car with a fine tooth comb, negotiate a price and then suddenly have one more to look at. I mean, do they actually want to buy a car, is it just a cheap day out for them, or do they have no social life whatsoever and are desperate for an hour of someone’s time? bestprice4cash That sounds like the exact same bloke we sold a car to three weeks ago, he’s been in four times since. He brought some pictures in of some of his old cars on Friday and bored us to tears for an hour. He pulled up today and I kid you not and this is the first time I have done this – it was a panic reaction – I locked the office door and hid in the toilet.

Jack Regan Some customers come in, look at a car for all of five minutes, don’t take a test drive and buy, then you get the time-wasters who have nothing better to do than spend ages tearing a car apart and walking away. I usually tell them Haynes motor museum is down the road if they want to just ‘look at cars’.

TML Cars Limited Hazards of the job, I’m afraid. As a (very) small business (10 cars), I always ask them to let me know. And mostly, they do. I don’t see them as

time-wasters. Just boring old farts (there’s plenty round here!) that help me pay my AutoTrader bill.

Rosemotors We all have them, some of them have shocked me in the past and come back to me to buy as the sales guy down the road wouldn’t give them the light of day. justina3

Early Easter: Good or bad news?

Do you believe that April benefited from Easter coming early and at the end of March – leaving a clear full month of April?

Philip Nothard March was good for us, April really poor. I do think school holidays have an impact though.

Steve92 Yes, Philip. April was our best month since starting. Start and end of month both busy but a bit quiet at times in the middle. We also did the most finance business we have done.

RS Car Sales Qashqai arrived today 3pm sold 6.30pm! Not even photographed it! Wish they all went this quickly.

TML Cars Limited

When it comes to advertising, what is most effective?

MY brother and I are opening a car sales business within the next month – don’t sweat, it’s not in our back garden or on the side of the road, it’s a proper forecourt. We have identified our market but the thing that is throwing up some hurdles is the advertising cost and deciding where to spend our money.

Slowly, we will work up to stocking 30 vehicles and we are based in Peterborough, which is quite a busy place for car traders. The

cars will all be sub-£5k with most between £2,750-£3,500 so my question is: which platforms do you find most effective?

Shane @ Park View EBay seems to do well for people selling in that price range. Motors is cheap compared to AT but brings in too few inquiries for me. Saying that, my location and stock is the opposite to yours. Local papers are good if cheap enough

as they let locals know you are there. I do OK with local papers but get a great deal.

Gavin@Rousdon I stock around 20 cars at your price range and some months I barely break minimum wage – and that is just me taking wages. If there are two of you needing a wage, it will be hard work unless you can bang out some real high volume.

Max Branning

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

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Forum: CarDealerMagazine.co.uk/forum

I’ll never get back...

Tweets of the month Top tweet Best of luck to Keith Williams, parts adviser at Ford Cheltenham, who has retired after 20 years with the group.

BristolStreetMotors @BristolStMotors

We gave EMTs, doctors & firefighters a real-life demonstration of the newest safety tech from Nissan. #SafetyToday @NissanUSA

Been a busy morning here at GH! Hope you all had a brilliant #BankHolidayWeekend?

HAGD! #Nissan Glyn Hopkin Group @GlynHopkinGroup

Vertu Volks customer Tanya Barai described our sales team as ‘very approachable and dealt with the sale very quickly and professionally’.

Vertu Volkswagen @VertuVolkswagen

First-class accommodations begin with the extra legroom in the #Infiniti #Q70L. Stretch out and enjoy the ride.

SouthMotors Infiniti @SouthInfiniti

The #Mitsubishi stand @bhorsetrials looking fabulous, even if I do say so myself.

Lance Bradley @Lance_Bradley_

What do we think about these substantial investments?

FEEDBACK

Emails I don’t like receiving...

I HAVE been inundated with emails lately, all of which seem to be asking the same thing: ‘What’s the best price you can do on this car?’

When replying, unless I am prepared to knock stupid amounts off the price, they just do not seem interested.

I have always had these type of emails but lately seem to be getting them every day. Is anyone else experiencing this?

I wonder if it is just a sign that there is no money around at the moment and maybe this so-called slowdown in the economy is really starting to bite people?

Sales seem to be dropping off of late. The inquiries are coming in thick and fast, only they all want something for nothing!

Max Branning I have seen this also, I just reply, ‘you’re more than welcome to pop down and make us an offer.’ Seven times out of 10 times, they don’t bother. The price starvers I can do without anyway, so no loss. justina3 As a private seller, this is even worse – last time I sold a car in the UK it was the cheapest in the country for spec, age and miles and sold in two days – but I still got 18 calls and texts from people offering 50 per cent of the asking price. I strongly believe this is what has driven

Suing car dealership for giving me a Toy Yoda instead of a Toyota. #Unlikely Litigation Damn, Daniel! @wickedfedora

the growth of the likes of WBAC – dealing with these types of idiots takes so much time and energy, it isn’t worth the hassle.

Don’t confuse them with genuine buyers, most are just trying their luck and will only respond if you accept a stupid offer which would allow them to run the car for six months and sell it for a profit after that.

Jamie Edmonds I ignore them because otherwise I find I get even more spam from them asking silly questions when all the detail is already in the advert. I’ve yet to make a sale to an idiot, am I doing something wrong? s and b Why is it that nearly all of these ‘inquiries’ (separate debate about definition needed) end up going nowhere? It’s got to the point where I don’t even reply to the obvious timewasters any more; it’s just not worth it. Remember the Golden Equation of Motor Retailing (and there are some of you out there who should pay attention here): Maximum Profit = Minimum Aggro. The reverse of this is also sadly and painfully true.

Green Giant

EVERY day we hear of another big dealer group buying up another business or investing millions building new sites for franchises.

What are your thoughts when you see these massive investments in the motor trade, especially when you hear of how little margins are left on new cars when customers are buying from the likes of carwow? Plus, with the pressure to perform every quarter with targets and preregistrations, how/when does it become viable to invest these vast amounts? Your thoughts? umesh I am sure there is someone behind the calculator that knows a lot more than me so it must add up somewhere. Not so much these days, but back in the day with the various brands emerging, it was often the way for a group to take over another group to allow them access to a brand they didn’t have on their books which allowed them to move the new brands across their existing network.

Maybe there is value in the land they are purchasing – and with commercial properties making a slight recovery, it must add up to a [better] overall percentage instead of the alternatives such as leaving money in banks etc. justina3 I have often pondered the same points.

Having spent £5 million to £10 million on a new showroom, does that not put customers off, thinking that dealers can waste money on building a huge fancy showroom, with the prices inflated because of it? I wonder if customers would rather see less spectacular dealerships and cheaper cars?

Velicular

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DASHBOARD. NEW OUTLET

Suzuki appoints Dorset dealer SNOWS Poole Suzuki has been appointed the new franchise dealer for the brand in the town. It’s the third Suzuki outlet to open in Dorset, and brings the number of sales locations in the UK network to 154.

The new site on Blandford Road in Hamworthy will be operated by the familyowned Snows Motor Group which adds the Suzuki marque to its portfolio for the first time. The dealership houses Suzuki’s entire range.

WESSEX GARAGES

Loyal Steve’s 25 years of service AN EMPLOYEE at a car dealership in Gloucester is celebrating 25 years of service.

Sales executive Steve Brinn is the longest-serving team member at Wessex Garages on Mercia Road and was recognised for his commitment to the company at a special ceremony.

He was presented with a thank-you card and £100 worth of Tesco vouchers

by Paul Edwards, general manager at Wessex Garages.

UNBEATABLECAR

RAC products boost sales CAR supermarket Unbeatablecar has reported a substantial increase in warranty and GAP sales since adopting RAC products.

With branches in Portsmouth, Crawley and Billingshurst, the company has also implemented the RAC BuySure used car programme and is offering service plans from the RAC’s partner, The Warranty Group.

Mark Sopp, of Unbeatablecar, said: ‘By choosing the RAC we are putting our customers in safe hands.’

08 | CarDealerMag.co.uk

‘Wheeler dealer’ leaves £1.5 million to hospital that cared for him bit.ly/hospital99

PA Group steps in to invest as Blackball is reorganised ‘It’s been an incredible journey and we will go from strength to strength’

B

lackball Media has secured a significant investment from PA Group and has embarked on a major rebranding.

PA Group — which encompasses the Press Association, the UK’s leading multimedia news agency, and a range of specialist media companies — has taken a 25 per cent stake in Baize Group, the new top company formed from the reorganisation of Blackball Media.

The growing PR and video arm of Blackball Media has been hived off to form a new PR agency, OnCue Communications.

The moves see Andy Entwistle promoted to the position of managing director and he will continue to focus on growing the award-winning Car Dealer Magazine and its burgeoning events, establishing Workshop Magazine, SuperUnleaded.com and TradePlates.

TV, while also growing the company’s hugely successful motoring editorial services.

James Baggott takes up the position of chief executive officer of Baize Group and will oversee both Blackball and OnCue.

“

Clive Marshall, chief executive officer of PA Group, has been appointed Baize Group chairman.

James said: ‘I am absolutely thrilled to announce this investment from PA Group and some exciting changes for the company I started eight years ago in my conservatory. It’s been an incredible journey so far and, with the help and support of such an established name as PA, I am sure we will go from strength to strength.

‘We have exciting plans to expand all areas of the business and now we have the right management and structure in place to make them a reality.

‘I started my career in local newspapers and know just how well-respected PA is in this industry.

‘To have them as an investor in my business and a partner to take this business forward is a real honour.’

Clive Marshall, chief executive officer of PA Group, added: ‘We are delighted to have the opportunity to invest in Baize Group and to support the founder James Baggott and his colleagues as they look to capitalise on the huge demand for their products and services.’

James Baggott, chief executive officer of Baize Group

Andy Entwistle, managing director of Blackball Media

We are delighted to have the opportunity to invest in Baize Group and to support the founder James Baggott and his colleagues.

Clive Marshall, chief executive officer of PA Group

Flanagan moves to Groupe Renault from Ford GROUPE Renault UK has announced the appointments of Paul Flanagan as managing director and Nick Tame as sales director.

Flanagan joins Groupe Renault UK from Ford Motor Company where he worked for more than 25 years in finance, sales and marketing roles. Flanagan set up the Ford Sales Company in Romania in 2010 and worked in a global sales role during 2011/2012. In 2013, he was appointed managing director, Ford Belgium and

Luxembourg and became president of Ford France in 2014.

He will report to his predecessor, Ken Ramirez, who was appointed senior vice-president, sales and marketing for 34 countries in the Europe ‘G9’ region. Flanagan will be responsible for the markets of the UK, Ireland, Cyprus and Malta.

Nick Tame is promoted to sales director succeeding Darren Payne, who is promoted to the new position of sales director at Nissan Motor GB

within the Renault-Nissan Alliance.

Tame has worked for Groupe Renault UK for 22 years.

Ramirez said: ‘I am delighted to welcome Paul Flanagan to the group and Nick Tame to his new role. I would like to thank Darren Payne for his achievements with the group.’

Paul Flanagan said: ‘It’s a very exciting time to join Renault. I can see tremendous growth has been achieved in the last three years and I’m sure there will be more to come.’

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DASHBOARD. ACQUISITION

Business as usual at Wessex after VT Holdings deal VT HOLDINGS, the Japanese-based listed automotive group, has purchased Wessex Garages for an undisclosed sum. The news follows VT’s acquisition of CCR Motor Company in 2012 and Griffin Mill Garages in 2014 and takes the firm’s representation in the UK to 18 sites and an estimated turnover of £300 million.

Tim Bagnall, MD of VT’s UK operations, said: ‘We are delighted to announce the acquisition of Wessex Garages. This is a perfect strategic fit for us in terms of location and franchises and will form a strong regional group able to take advantage of further opportunities.’

Keith Brock, MD at Wessex Garages, added: ‘Wessex Garages was established by Steve Patch almost exactly 30 years ago with one site on Feeder Road in Bristol. Since then, the business has grown into what it is today – a modern, progressive and awardwinning dealer group.

‘It is the intention for Wessex Garages to continue in its existing format for the foreseeable future. It will be business as usual for all our staff and customers.’

Wessex Garages operates seven sites in South Wales and the south-west.

PHOTOGRAPHY

Top exhibition at Motor Village UK MOTOR Village UK, Fiat Chrysler Automobiles’ flagship dealer showroom in Wigmore Street, London, has once again been chosen as the venue for a top exhibition, this time a display from photographer Terry O’Neill. The event, in partnership with Ransom Gallery and Monica Colussi, also provides an opportunity to focus on the Alfa range, in particular the new Alfa Giulietta. Terry O’Neill’s work hangs in art galleries and private collections worldwide.

10 | CarDealerMag.co.uk

Sorry, Barack – VW chief’s personal apology to US president over Dieselgate bit.ly/barack99

Pure genius! Kia reacts to a changing sales environment Training sets up new employees to back sales team with expert knowledge

by ANDREW EVANS @snavEwerdnA

A

s the behaviour of the carbuying public shifts, aided by an increasingly informed and connected population, those in the car sales sector are faced with new challenges.

Kia is adapting to these changes with its Genius scheme. This opt-in programme puts a new member of staff with specialised product and brand knowledge with a participating dealer to act as a bridge between the online experience and the traditional salesperson.

For most people, their first encounter with a Genius will have been in an Apple store, where Geniuses exist not to sell products but to provide expert help with the hardware and software. Trained in the functions and features of the products, they provide insight that dedicated salespeople may not offer.

Kia has realised that it needs more sales resources to cope with demand, alongside improving the sales process itself. With the increasing complexity of vehicles, offering functions limited to luxury cars five years ago and unheard of even a decade ago, the new people coming in would need to be experts in information technology.

The trainee Geniuses face an eLearning course followed by an intensive five-day training course at the Kia Academy in Nottingham, which we observed. The course is part academic and part vocational, with

the Geniuses learning all about the Kia brand, along with their role within the sales process. They’re taught product-presentation skills, how to conduct test drives and final vehicle handovers and how to deal with — and explain to customers — all the technologies within the Kia vehicles, including smartphone connectivity, multimedia and navigation.

Alongside these seminars is roleplay, as the Geniuses learn about the requirements of hypothetical customers and help them decide on their ideal Kia vehicle by considering their lifestyle, interests and needs.

They film short video presentations on aspects of the cars — the reversing camera, adjustable seats or navigation system — which will be e-mailed to prospective customers. The Genius will conduct the final vehicle handover.

But the Genius isn’t a salesperson.

These first participants — the 12 trainees we saw take the number of Kia Geniuses to 20 — are only employed at dealerships where the culture is right.

The Genius provides a first point of contact for customers, both in the showroom and responding to digital inquiries, but doesn’t participate in the sale. Kia has found that, with an expert to explain and demonstrate the gadgets, more vehicles of a higher specification are sold, thanks to customers understanding how the technology will benefit them and how to use it.

A new class of Geniuses graduates from the Kia Academy

An online buying journey your customer’s won’t be able to resist

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CarDealerMag.co.uk | 11

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SURVEY.

You’ve got the Power. Use it!

We already have hundreds of responses to our survey – but it’s a case of the more the merrier, so let us know who YOU like doing business with

L

ast month, we caught up with the guys at Dealer-Auction Ltd who told us how pleased they were to have been serial award winners in Car Dealer Power.

And recently, we chatted to Dragon2000, who have also triumphed in previous years – and no doubt will be hoping to do so again.

Mark Kelland, the commercial manager at the dealer management specialists, told us: ‘We strive to provide innovative products that meet the needs of the modern motor dealer, and focus on giving exceptional customer support.

‘The Car Dealer Power awards are extraspecial to us because they are voted for by the dealers themselves, so to win the DMS of the Year award two years in a row is a fantastic achievement that we are immensely proud of – and shows how highly our customers rate our products and customer service.’

It all goes to show that your views really do count!

As we have explained before, 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. If there is someone you think has provided you with a sub-standard product or service, this is the perfect opportunity for you to have a moan – all opinions will be taken into account. And it’s anonymous so be as honest as you like. The names of the winners will be revealed at a dinner at the Spinnaker Tower in Portsmouth on Thursday, July 28.

Complete the survey online at cardealerpower.com

12 | CarDealerMag.co.uk

CarDealerMag.co.uk | 13

DASHBOARD.

A statement of intent after turbulent times A stunning new dealership has put smiles back on the faces of UK VW bosses, reports SOPHIE WILLIAMSON-STOTHERT

A

fter months of negative headlines thanks to the Dieselgate scandal, Volkswagen finally has something to celebrate in the UK – a stunning new showroom that takes the customer experience to a whole new level.

The dealership, just off the A4 in West London, instantly became the new flagship retailer site for the German car brand in the UK when it opened its doors in April – and it represents a nononsense statement of intent from the company after what has been a difficult spell.

We spoke to director of Volkswagen UK, Alex Smith, who told us: ‘West London Volkswagen sends a clear message out to the public and the industry that the brand here in the UK is continuing to gear up for growth.’

Developed in partnership with Inchcape — the multinational automotive retail and services company based in London — the new multimillion-pound site is capable of displaying up to 90 new and used cars on Capital Interchange Way, Brentford. It extends over four floors with full sales, aftersales, service and repair services offered by a team of around 70 trained Volkswagen staff.

The purpose-built showroom has space to display an example of every model in the growing Volkswagen range — from the Up! city car to the commanding Touareg SUV. The site has been designed to be a welcoming and inviting space that enables customers to consider their choice of new car in a modern, relaxed and comfortable environment — much like buying a house or booking a holiday.

West London Volkswagen’s offering is bolstered by a huge stock of approved used cars.

Two floors are dedicated to ‘Das WeltAuto’, with 30 pre-owned cars on each level. Meanwhile, webenabled touchscreens allow customers to search Inchcape’s 2,000-strong nationwide stock of used Volkswagen vehicles.

The new retailer, built on a prime 1.6-acre site, benefits from a state-of-the-art service area on the ground floor, which features 28 bays equipped with the latest diagnostic and servicing technology, not to mention well-trained and specialist service staff. West London Volkswagen uses the latest technology throughout the site to provide the best-possible customer experience on every step of the journey. From the use of 14 | CarDealerMag.co.uk

“

Volkswagen is continuing to gear up for growth

The new premises in west London bring the servicing and sales operations together tablet computers to surf the customer our customers, and exceed their website to the provision of free wi-fi expectations,’ explained Smith. to allow customers to stay connected ‘A key part of this is the Aftersales during their time on site, the Digital Reception. We use tablet intention is to make a visit as easy technology and online explainer and enjoyable as possible. videos to give Volkswagen customers ‘Volkswagen West London a relaxed and straightforward showcases the very latest technology experience when they call in to that is being adopted across our service their car. retailer network. It reflects the fact ‘While completing the service, Volkswagen UK director Alex Smith that our customers use smartphones the service technician puts and tablet computers every day, together a video that points out and so we’re excited about bringing any recommended work, such as this technology into our showrooms. As worn brake pads, and then sends that video to digital developments continue at a rapid pace, the customer who can then make an informed Volkswagen will always strive to use them in decision about whether to go ahead with any innovative ways in order to engage better with work. Overall the customer is more involved in

the process and that’s the advantage of adopting this technology.’

That’s why West London Volkswagen boasts a number of 140-inch video walls, which allow sales staff to project images directly on to a big screen. The aim is to immerse the customer more fully in the experience and bring the cars to life in a truly innovative way.

A key design feature of the showroom is an eye-catching vertical garden that sits near the customer entrance. This 230-square metre ‘living wall’ is irrigated using on-site rainwater collection and, in combination with the use of solar panels that help to generate the retailer’s electricity, maximises the energy efficiency of the building.

Smith added: ‘Opening the largest Volkswagen retailer site in the country in such a high-profile location, with the support of Inchcape, is not only good news for customers in that area who will now have a state-of-the-art facility on their doorstep, it also points to the ongoing strength of Volkswagen in the UK.’ West London Volkswagen has helped to bring together operations previously run on two separate sites, adding the convenience of sales and service in one place.

So, how did Volkswagen perform in the SMMT’s (Society of Motor Manufacturers and Traders) most recent new registration table?

A stunning living wall dominates the approach to the new state-of-the-art building Well, although figures year-on-year were down almost 10 per cent, the German carmaker was still the second biggest brand in the UK during the month: UK registrations totalled 16,877, delivering a market share of 8.91 per cent, with strong sales to both private and fleet customers.

This followed a very strong March — a peak month for the UK new car market — when the brand beat its own previous record for sales in that month.

The Golf — which remains the core of the

Volkswagen range — attracted increasing numbers of UK buyers by becoming the second best-selling car in April for the fourth consecutive year.

The Polo was sixth in the list of the UK’s top-selling new cars, both for the month and for the year so far. ‘The good results reflect the high level of confidence within our UK retailer network,’ explained Smith.

‘New customers continue to be attracted to our award-winning, great-value cars and this will be boosted by the new Tiguan SUV.’ [CD] CarDealerMag.co.uk | 15

DASHBOARD. OUTPUT

More cars made in March – SMMT BRITISH car manufacturing continued its strong growth in March with output increasing 9.8 per cent to 159,074 units, according to figures released by the Society of Motor Manufacturers and Traders.

Overseas demand showed the biggest gains, up 14.3 per cent in the month. It was a trend reflected in first-quarter figures, with exports for the first three months growing 11.1 per cent to 329,653 units.

ENTERTAINMENT

An extra insight for Top Gear fans THE new series of Top Gear will launch with a BBC Three sister show called Extra Gear.

The programme will be presented by Top Gear host Rory Reid in the show’s studio and will feature new footage, interviews, special films and behind-the-scenes insights from the set.

It will be available to view on BBC Three’s live page and BBC Three on iPlayer straight after Top Gear finishes on BBC Two. Reid said: ‘Extra Gear is hugely exciting.’

PROVENANCE

Three checks per vehicle, says RAC THE average used car dealer is carrying out three provenance checks per vehicle over the course of a sale, according to data compiled by the RAC. Looking at typical usage of the recently-launched RAC Passport for dealers, it appears that a check is made when they are considering acquiring a vehicle, another one when it is put on sale and again before it is delivered to its buyer. RAC Car Passport for Dealers was introduced in March.

16 | CarDealerMag.co.uk

Average values of alternatively-fuelled used vehicles grow year-on-year. bit.ly/values99

A new image and a new era for a prestigious dealership ‘We decided to rebrand because we didn’t want to just be diesel specialists’

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restige Diesels Portsmouth is known for its attention to detail and the pride the team takes in ensuring customers get the best service available. The fact that the business has managed to accumulate an impressive haul of accolades from Car Dealer Magazine’s Used Car Awards speaks for itself.

As we all know, though, trouble can spring from the most unlikely sources. For the Prestige team, its problems started with the Volkswagen emissions scandal last September.

As co-owner Alexis Cassey freely admits, it was not a good time to be a diesel specialist. ‘We set up the business back in the recession and we chose to specialise in diesels because they were being encouraged by the government at the time,’ she said.

‘But when the scandal broke, we felt pushed into a corner as major cities started talking about banning diesels and consumers were being warned against buying them.’

That may have died down now, to an extent, but it’s still understandable that the team at the business wanted a fresh start to focus on the success they have enjoyed. For that reason, they’ve rebranded with the name Prestige Diesels & Sports Limited, a new logo and a new website.

Cassey said: ‘We decided to rebrand because we didn’t want to just be diesel specialists any more and this will open the doors to more cars.

‘We had started stocking petrols, but our name would make people doubt they actually were!

‘They’d call up to confirm that the

A LUXURY FEEL THE name and new look might have been vital to the relaunch, but for the team at Prestige Diesels & Sports Limited, the website was the most important factor.

‘Our website is almost always our first contact with potential customers,’ explained Scott Shilcock.

The new website went live late last month and has received a great reception. Shilcock explained: ‘While we were trying to come up with ideas, we looked at luxury boat and yachting websites. We didn’t want to have a website that was like anybody else’s and we had some very specific ideas about what we wanted to include.’ cars definitely weren’t diesels.’

The dealership has been up and running for five years now, celebrating its birthday last month. Alexis Cassey and her business partner Scott Shilcock, pictured in the smaller of the two images above, explained that because of that, now felt like the

right time to change their image and expand into a different market.

‘We moved into this site five years ago and we had to clear the whole place out,’ Shilcock explained. ‘These buildings are old ammunition stores, but when we moved into ours, it was filled with contact lens cases!

‘We spent about a month taking everything apart and then weeks painting. The whole thing has been a labour of love.

‘We’ve put our heart and soul into this business and having the relaunch party where we could get our best customers, other businesses we work with and our family together has been a great way to celebrate.’

Vantage becomes a patron of the Prince’s Trust VANTAGE, the fast-growing motor retailer with 25 dealerships across the north and midlands, has become a patron of The Prince’s Trust.

The UK’s leading youth charity – which celebrates its 40th anniversary this year – has helped more than 825,000 young people into work, education or training.

As well as providing financial support to the organisation, the initiative will see Vantage Group and

its workforce becoming involved in programmes and schemes run by the trust. Vantage represents eight manufacturers – Toyota, Lexus, Kia, Skoda, Citroen, Mazda, Honda and Hyundai, has 600 staff and an annual turnover of more than £200 million.

As a further part of the relationship, the group’s founder and managing director, Mark Robinson, has joined the trust’s regional development committee for Yorkshire and Humber.

He said: ‘The Prince’s Trust does impressive work with disadvantaged young people across the country, helping them into work, education or training to improve their lifechances. Many young people even go on to start their own businesses. It is something very close to my heart.

‘I look forward to the entire group and our teams working closely with the trust to make a difference to the lives of young people.’

It’s time to stop viewing warranty as a cost

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Take advantage of our FREE, no obligation dealer review and feedback report and you’ll see how you can turn warranty from a cost to something that brings your business genuine financial rewards.

Find out how we can help: 0845 6838795 contactus@mapfre.co.uk CarDealerMag.co.uk | 17

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

Enjoy fascinating Facebook insights on the Live Stage BRAD LITTLE of Facebook has joined the ever-growing list of big names at CDX16.

Little, pictured below, holds the title of group head of fast-moving consumer goods (FMCG), entertainment and automotive, and is set to talk us through the world of digital communications and how the social media giant can help dealers improve their businesses’ online presence.

He joined Facebook London in 2013, where he leads client teams and works with agencies and partners to drive business results on Facebook and Instagram.

He said: ‘FMCG are some of the world’s biggest advertisers and working on their brand initiatives has a lot of relevance to automotive as well.

‘Facebook and Instagram combine an unrivalled daily scale and the ability to use precision in effectively targeting people likely to be in-market.

Traditionally, we have worked closely with OEMs on their branding and leadgeneration initiatives.

‘More recently, our local capabilities have evolved to deliver exceptional leads at scale for dealers and groups. The combination of scale, precision, mobile, accountability and ease of implementation create the right ingredients for Facebook and Instagram to be the next key channel to deliver significant results for the auto industry.’

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

18 | CarDealerMag.co.uk

Auto Compliance Auto Group Autoidoc AutoSLM Autotech Recruit Auto Trader Autovolo Autoweb BCA

It’s the final countdown!

A whopping 1,700 sign-ups and counting! With just days to go, there’s still time to register to attend our fantastic trade event

T

he waiting is almost over! With just one week to go, we’re celebrating 1,700 signups to the largest motor trade event of its kind. And there’s still time to get involved! We don’t want anyone to miss out on CDX16 and that’s why we’re leaving registration open to the very last minute.

We’ve also announced the official timetable of events (right), so you can start planning your day.

So, if you haven’t booked already, here’s a reminder of why you have to be there.

This year, we’ll be welcoming around 100 exhibitors to The Wing at Silverstone, including big names such as Lawgistics, iVendi, GForces, BCA and Auto Trader. We’ll also be spoiling you with 20 hours of innovative and educational workshops, insightful question-and-answer debates and one-of-a-kind breakout sessions over the course of the day, including our famous Twitter Top 140 and popular Women in the Motor Industry events. CDX16 is also THE place to secure your spot on the 2016 Bangers4BEN run, which will be launched at the conference on a strictly first-come first-served basis.

You’ll even be able to listen to inspirational contributions from manufacturer MDs, social

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

by SOPHIE WILLIAMSON-STOTHERT @1Sophie_W

media gurus and publishing giants, including Google, Haymarket Automotive and the SMMT, on the Car Dealer Live Stage.

CDX is designed to improve your business by giving you top tips and insider advice to take back to your dealership and implement immediately, and a number of industry bodies, including Lawgistics, will be on hand all day to answer all your questions and provide advice on your legal issues and rights.

Tempted? Well, it doesn’t end there; delegates will have the opportunity to scrutinise hundreds of show-only products and services, of which 50 per cent are exclusive to CDX16 – that means you’ll be one of the first to check out suppliers’ latest technological innovations and offerings.

Thanks to you fellow tweeters, CDX16 has received a staggering 348,096 hashtag impressions across Twitter. There’s nowhere to hide! CDX is coming and it’s going to be huge! To register for your FREE tickets, visit cardealerexpo.com.

We’ll see you there!

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 GForces

Book your free tickets at CarDealerExpo.com

CDX16 timetable A full guide to CDX16 will be available for every delegate on the day – but you can start planning your schedule right now!

Time Event 08:00-17:00 CDX – Expo open!

Doors to expo open at 8am and close at 5pm 09:00-12:00 RAC Dealer Conference RAC BuySure dealers or by invitation only

(includes private Google presentation) 09:00-09:20 Live Stage: SMMT Question-and-answer session, open to all 09:30-09:50 Live Stage: Google Question-and-answer session, open to all 10:00-11:00 Career speed networking Invitation-only event 10:00-10:30 GForces Workshop Open to all delegates 10:00-10:30 BCA Workshop Open to all delegates 10:00-10:30 Perrys Workshop Open to all delegates 10:00-10:20 Live Stage: Haymarket Question-and-answer session, open to all 10:30-11:00 Independent Dealer Panel Question-and-answer session, open to all 11:00-11:30 CitNOW Workshop Open to all delegates 11:00-11:30 CarKeys Workshop Open to all delegates 11:00-11:30 CAP HPI Workshop Open to all delegates 11:30-12:30 Women in the Motor Industry Open to all female delegates 11:45-12:15 Manufacturer Panel Question-and-answer session, open to all 12:15-12:45 Auto Trader Workshop Open to all delegates 12:15-12:45 CarGurus Workshop Open to all delegates 12:15-12:45 First Response Workshop Open to all delegates 12:30-14:00 CarKeys VIP lunch Invitation-only VIP lunch 13:00-14:00 IGA / VOSA Workshop Open to all delegates 13:30-14:30 Twitter 140 Awards Invitation only 14:00-14:30 Franchised Dealer Panel Question-and-answer session, open to all 14:15-14:45 iVendi Workshop Open to all delegates 14:15-14:45 Lawgistics Workshop Open to all delegates 14:15-14:45 Phoenix Training Workshop Open to all delegates 14:45-15:05 Live Stage: Twitter Question-and-answer session, open to all 15:15-15:35 Live Stage: Facebook Question-and-answer session, open to all 15:40-16:10 Live Stage: Brexit Debate Question-and-answer session, open to all * Timings subject to change; space at some events may be limited

Glass’s Guide IGA IM Group IMI Instant Feedback iVendi Judge Service Kärcher Key Tracker

Lawgistics Liquidline Manheim Martec MDF Database Solutions Ltd Moneypenny Motorcodes Motors.co.uk Movex

Mussay OTT (On Target Telemarketing) Pentana Solutions Phoenix Training Plan Insurance Pro-Align Progress Recruitment Quid Car Ads

Take it from the top execs at Auto Trader DEALERS are being given a golden opportunity to talk to top figures from Auto Trader at CDX16.

Brand director Marc Thornborough and director of insight Nick King will be holding one-to-one sessions throughout the day, which means dealers have got an amazing chance to sit down and chat with two of Auto Trader’s most senior figures about the UK’s biggest automotive classified advertising site.

This will be the only place for dealers to have such a direct meeting with top Auto Trader executives, so it really is a fantastic opportunity and a unique bonus for those attending CDX16.

The one-to-ones will take place on the VIP mezzanine level in Hall 1 of The Wing at Silverstone, which Auto Trader is taking over.

Also on the VIP mezzanine level, Auto Trader will have a golf simulator with a prize for the longest drive.

In addition, it will be offering coffee and free charging for phones, as well as a ‘chill-out’ area where delegates will be able to check e-mails.

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 ... and many more!

CarDealerMag.co.uk | 19

DASHBOARD.

You can have any colour you like – but don’t change the audio system Rolls-Royce customers have long been able to have more or less whatever they want when personalising the cars they buy from the world-famous manufacturer. With the imminent arrival of the Rolls-Royce Black Badge, heralded as the most exciting edition yet, Rolls-Royce Motor Cars London has compiled some other extremes from the company’s history.

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Three at once Receiving a new Rolls-Royce is always special. One customer will have a red-letter day in June as they take delivery of three Rolls-Royce Dawns — this is a first for Rolls-Royce Motor Cars London.

Precise pink Rolls-Royce offers limitless possibilities for personalisation — your car can be any colour. One customer’s red exterior and bubblegum pink interior was matched to a T-shirt he brought in.

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All about timing When a car is sold through Rolls-Royce Motor Cars London, it is treated with the utmost care. Before it is deemed ready to be handed over, it is thoroughly prepared. It takes five hours to valet each car and get it just right.

A special occasion When a customer receives their new car, it is not just a handover of the keys.

Rolls-Royce Motor Cars London takes about three hours to take the new owner through every aspect of their car and adds a gift.

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Carefully painted To achieve a mirror-like finish, robots at the plant where the cars are made apply five layers of paint. Experts tackle the hard-toreach spots. The application takes seven days and uses more than 100lb of paint.

Stars above The Starlight Headliner, a popular feature, comprises 1,340 hand-woven fibre-optics and 2km of cabling in the interior roof. Customers can specify their constellation, which will be verified by a local observatory.

20 | CarDealerMag.co.uk

Find the lady The Spirit of Ecstasy is the elegant finishing touch on every bonnet but the mechanism that moves her up and down is far from simple, with 24 unseen links and bearings working together to tuck her out of sight.

Starting early A Rolls-Royce is not within the reach of most 21-year-olds but that’s the age of the youngest customer to buy a car from Rolls-Royce Motor Cars London — and it was the one-off Rolls-Royce Inspired by Film.

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Finely tuned Much of a Rolls-Royce can be changed but the 1300-watt, 18-speaker bespoke audio system is so exhaustively tuned that permission must be sought from the engineer who created it before making alterations.

The Rolls-Royce Black Badge will be making its first appearance in the Rolls-Royce Motor Cars London showroom in July. To find out more about the Black Badge and the Rolls-Royce range, head to hrowen.co.uk/rollsroyce.

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CarDealerMag.co.uk | 21

DASHBOARD.

Cutting-edge tech is at the heart of Shell concept car Innovative three-seater vehicle delivers major reductions in energy use

S

hell has unveiled a concept city car which, if it were to go into production, could deliver significant reductions in energy use.

The company says the threeseater car is tangible proof of energy efficiency improvements that can be achieved by using cutting-edge technology through a process of ‘co-engineering’ whereby vehicle body, engine design and lubricants are all created together.

Independent testing and a rigorous life-cycle study shows that Shell’s Concept Car would deliver a 34 per cent reduction in primary energy use over its entire lifecycle when compared to a typical city car available in the UK. The Shell Concept Car would use around half the energy required to build and run a typical

small family car and 69 per cent less than that of a typical SUV. The Shell Concept Car is a total rethink of the Gordon Murray Design T.25 city car produced in 2010 for which Shell manufactured a prototype oil.

The new car is the result of a coengineering collaboration between leading vehicle, engine and lubricant designers, with each of the three elements of the vehicle tailored to

work optimally with each other.

It takes a holistic view on energy reduction focusing on design material selection; reduced energy demand via aggressive downsizing; and streamlining while enhancing the efficiency of energy delivery through innovative engine design and lubricant formulation.

The car’s petrol consumption has been measured using a range of vehicle testing protocols.

Sample test results include a steady state consumption of 107 miles per gallon at 45mph and an improvement of 4.67g CO2/km on the New European Driving Cycle (NEDC).

Mark Gainsborough, executive vicepresident of Shell’s global lubricants businesses which backed the project, said: ‘This is a significant automobile engineering milestone.’

WEALTH

Revealed: UK’s richest dealers SIR Arnold Clark has become the ‘first billionaire car dealer’, according to the 2016 Rich List published by the Sunday Times. The 88-year-old’s family is reported to be worth more than £1bn, having risen £350m in the past year.

The Glasgow-based firm, Arnold Clark Automobiles, was founded in 1954 and profits reached a record value of £107.2m in 2014 on sales of £3.2bn. Other family assets include the yacht Drum, once owned by Simon Le Bon. Sir Arnold was knighted in 2004.

He’s not the only dealer on the rich list – Sir Arnold and his family are worth twice as much as Lord Edmiston, 69, the second-wealthiest car dealer. Edmiston is followed closely by Geoffrey Warren and Jack Tordoff.

List of the UK’s wealthiest dealers at bit.ly/richest99

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

22 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 23

DASHBOARD.

Scale for scale’s sake is not our driving force Lookers boss Nigel McMinn was our guest on Trade Plates TV recently. He had plenty to tell show host BECCA CHAPLIN 1. New car market could hit three million The average market of every 15-year period grows by about half a million registrations. We talk of normality being 2.4 million between 2000 and 2015 but in the previous 15 years it would’ve been 1.9, and 1.4 before that. This will probably average out to 2.5m by 2030 – but it could hit three million.

2. Pre-reg cars are good for business If you look at our website and others you’ll see few adverts for cars with a big cash saving — you see them with a deposit contribution and an attractive monthly payment, often with additional incentive. Having a discounted nearly-new or delivery mileage car gives us another angle for people who aren’t payment orientated.

Eighty per cent of our new cars are sold on PCP, so another option is good.

5. Industry faces technological challenges Technology is one of the biggest challenges for the motor trade. There’s going to be a greater proportion of the process, if not the whole purchase, online. Customers will expect that to be omni-channel and this will take a lot of sophisticated technology around single customer view databases and intelligent websites that read customer behaviour and can connect all the offline systems.

6. Customers won’t stop visiting dealerships I believe that on anything that’s a significant purchase people want some human interaction. We’re seeing a trend over the past five years where there are fewer dealerships but they’re bigger, they’re brand experience centres.

Nigel McMinn 7. This isn’t a narrow margin industry 3. It’s not all about new car finance People talk about this as a narrow Thirty-seven per cent of our used car margin industry because we obsess, and in my finance is now PCP. It’s growing rapidly. Five view overfocus, on the return on sales and so years ago it was five per cent. Seven years ago the many different things feed into that. Ultimately, percentage of new car finance was 45 to 50. all that matters is return on investment and we’ve been in excess of 20 per cent return on capital for 4. £4bn club several years now.

Scale for scale’s sake is not our driving force but this year it takes us into a club of three, 8. Fresh faces in the industry with Sytner and Pendragon, all with over £4bn More than half of our recruits to sales are fresh to turnover. Our Audi or JLR division would be in the industry. That percentage has been growing. the top-20 motor groups in their own right.

I think it will reach two thirds. In March, six or seven of our top 10 salespeople have come through our trainee programme — these are people who have only been in the industry for a couple of years but they’re outselling people who have the benefit of a load of repeat business.

9. Pricing could change day-to-day I can see a day when we have more dynamic pricing, where you would vary the price of a car depending on how much demand there was on internet searches and how much supply we knew there was. You could change that pricing daily.

10. A race to the bottom just doesn’t work Carwow tried to set up a system to direct customers to the nearest dealerships and those that offer the best service. Unfortunately, because they don’t have full dealer support nationally, it tends to be a dealer from out of territory that puts up a ridiculous discount. We’re partly to blame as dealers, but it’s become a race to the bottom.

DIFFERENT TYPE OF STUDIO! THIS month we took the show on the road and relocated to Ian Cook of Popbangcolour’s studio in Coventry.

Cook then joined Rebecca and Umesh Samani, owner of Specialist Cars Stoke, on the sofa to talk about his experiences with the motoring industry. Watch online!

ALSO ON TRADE PLATES TV Workplace pension auto enrolment The new workplace pension auto enrolment scheme was introduced in 2012, but all businesses will need to have this in place by 2017 at the latest. Luckily we had Lawgistics legal adviser Stephanie Ball on hand to explain what needs to be done.

Making the most of your recruitment company Recruiting staff can be a bugbear and a hassle, but those who engage and give it the time it needs will reap the benefits. That was the advice from Ed Steele, managing director of automotive recruitment company Steele-Dixon, when he spoke on Trade Plates TV. ‘It’s about how you engage with people,’ he told us.

Go to TradePlates.tv now to see our latest videos 24 | CarDealerMag.co.uk

CarDealerMag.co.uk | 25

26 | CarDealerMag.co.uk

GLOUCESTER: Bristol Street Motors Ford has welcomed a new general manager to its awardwinning team. Having kicked off his career as a trainee technician in 1980, Rob Lewis has developed a great deal of experience working in the motor industry. Over the past 30 years, Lewis has taken on a number of roles within the trade, working across dealership departments such as sales, aftersales and servicing. Lewis said: ‘It’s great to be welcomed to the Bristol Street Motors family. The company has a fantastic reputation.’

A new role for experienced Rob

WEST YORKSHIRE: A manager who spent nearly a decade at Farnell Land Rover has returned to take the helm at the company’s Guiseley retailer.

Craig Roberts, right, has been welcomed back to Farnell Land Rover Guiseley, part of Vertu Motors plc, having previously worked his way up from sales executive to head of business over an eightyear period. Roberts re-joins the team at an exciting time for Farnell Land Rover as Vertu recently announced a £7.5m investment in the construction of a new dealership in Leeds to accommodate the company’s growing team.

Craig is welcomed back to Guiseley

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

LINCOLN: An eight-month redevelopment programme to transform the Audi showroom in Lincoln into an enlarged energy-efficient dealership, representing a £2m investment, has been completed by JCT600. Located on Doddington Road, work began on the two-acre site last summer. The new sustainable dealership features one of the most advanced building management control systems in the motor industry with energy usage able to be controlled and closely monitored.

Major redevelopment at Audi showroom

LEEDS: Vertu Motors has announced the acquisition of Leeds Jaguar from Inchcape Retail Limited for £650,000. The business, which is the fifth largest automotive retailer in the UK, will operate from its current premises in the short term and will then relocate to a newly developed site alongside the group’s existing Leeds Land Rover operation. The deal, which includes £500,000 of goodwill, is estimated to total at £650,000 and further extends the Farnell brand.

Vertu and Inchcape in Jaguar deal

ABERDEEN: Peter Vardy launched the new Jaguar F-Pace at its Jaguar retailer on Lang Stracht on May 6.

The event was a celebration of Jaguar’s new SUV. The launch party was the public’s first chance to feast their eyes on the new F-Pace, Jaguar’s first performance SUV, and to book a test drive. The F-Pace is the first crossover Jaguar released to compete in the BMW X3/ Audi Q5 class. The bodywork is 80 per cent aluminium, giving it exceptional performance in road trials.

Peter Vardy celebrates new Jaguar F-Pace

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 27

‘MG will complement us’ SUFFOLK: Brandon Car Centre has joined the expanding MG network. Already wellestablished in its local area, MG’s newest dealer has predominantly focused on selling used cars to date. After director Daniel Freeman decided to utilise his team’s extensive franchise dealer experience, he chose MG to be the first manufacturer they brought in. Freeman said: ‘We saw MG complementing us perfectly.’

New Lotus showroom at flagship HQ LONDON: London car dealer Hexagon has opened a new Lotus showroom at its flagship headquarters on Great North Road in East Finchley. Lotus CEO Jean-Marc Gales joined Hexagon chairman Paul Michaels to open the new showroom, which features the full range of new Lotus cars from the Elise right up to the incredible 3-Eleven, Lotus’ fastest production car ever.

New dealerships are energy efficient

EXETER: Snows Group is relocating its Exeter Toyota and Lexus dealerships to a new site. Snows Toyota and Lexus Exeter are now located at Snows House, 4 Matford Way, Matford, Marsh Barton. The dealerships have been built using a range of energyefficient measures, including supplemental natural lighting at Snows Toyota. Meanwhile, the design of the Lexus showroom ‘befits the craftsmanship of the models it hosts,’ says the dealer group.

OXFORD: It’s 15 years since the first new BMW Mini rolled off the production line at Plant Oxford. The BMW Group, which is marking its centenary year in 2016, acquired the Cowley-based plant in 1994 and relaunched the brand in 2001 with the debut of the new Mini Hatch. Since then, more than 2.5 million Minis have been produced in Oxford – the three-million milestone is expected to be hit later this year – with 80 per cent of the cars made there exported to more than 110 countries.

2.5m Minis over 15 years at Plant Oxford

CWMBRAN: A South Wales car salesman has been handed a seven-month jail sentence after being found guilty of acting in a violent and threatening manner towards female customers. Robert Knight, 41, owner of RK Transport Trade Centre Ltd in Cwmbran, was taken to court after several women complained about his behaviour. Knight, of Mountain Road, Cwmbran, is reported to have been charming and calm when selling a car, but his manner changed after customers brought their vehicles back with complaints, Cardiff Crown Court was told.

Salesman imprisoned for seven months

28 | CarDealerMag.co.uk

DASHBOARD.

Around the world Dealer news from somewhere other than here

GERMANY

DRIVERS who buy electric cars in Germany are to have their purchases subsidised by the government. The authorities want to boost lacklustre growth in the sector and hit targets that have been set in relation to climate change and zero-emission mobility.

Car buyers will receive £3,170 when they choose a purely electric vehicle and £2,380 for a plug-in hybrid.

AMERICA

SUBARU dealers in the States have been praised for their passion and dedication after the company posted its best April sales figures ever.

The manufacturer shifted 50,380 vehicles, a 6.6 per cent gain over April 2015. The recent surge in sales has led to SOUTH AFRICA the launch of a second phase of Subaru’s ‘Fixed BRITAIN’S new car market might be booming at the moment, but the same isn’t true the world over. April sales Operations Expansion’ figures in South Africa were particularly dismal, with total programme under new vehicle sales declining 9.2 per cent year-on-year. South which dealers apply for Africans are coping with rising interest rates and higher fuel funding to expand their Proalign Ad 2016 Car Dealer 190x142_Layout 1 16/03/2016 12:57 Pagemotors.

1 prices meaning more buyers are opting for used service facilities.

CHINA

THREE in four car dealers across China were either unprofitable last year or just managed to break even, according to figures from the China Automobile Dealers’ Association.

And that’s despite the fact that the country has set six straight annual records for the most new vehicles bought by any country in the long history of the automobile, according to the website Bloomberg.

One observer said: ‘It’s getting more difficult for dealers to stay in business, as new car sales are not making much profit any more with all the competition on price.’

AUSTRALIA

PRIME Minister Malcolm Turnbull isn’t exactly flavour of the month with car dealers in Australia at the moment. He wants to relax the rules around private vehicle imports, which traders fear will hit the high-end luxury market in particular and lead to an influx of ‘lemons’. Mercedes-Benz Sydney general sales manager Keith McArdle said: ‘It is uncharted water for every dealer.’

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FINANCE. BCA

Experienced Drew will aid expansion

Korean manufacturer hoping to tempt buyers with new offers SSANGYONG is continuing the drive to maintain its sales momentum by introducing a zero per cent interest offer on selected models.

The Tivoli SE is available from £108 per month, the Korando SE from £133, the Turismo SE from £158, the Rexton SE from £192 and the

Korando Sports SX pick-up from £125 per month.

Paul Williams, CEO of SsangYong Motor UK, said: ‘Already known for their great-value proposition, we have just made our cars even more tempting to new car buyers. Koreanbuilt and comprehensively equipped

with a warranty no other brand can match, we are confident that people will be seeing many more SsangYong cars on the road this summer.’

The finance programme offers purchasers realistic deposits and highly competitive monthly payments.

Dealers need to back up their FCA data, says iVendi Sloppy attitudes are an accident waiting to happen, warns company boss

D

ealers are failing to take seriously their responsibilities to record and back up essential FCA compliance motor finance data, says iVendi. The company says that a significant minority of dealers are simply using a spreadsheet to record basic information – and then don’t even back it up.

James Tew, CEO, said: ‘A large number of dealers that we visit have an Excel spreadsheet that is open to all users and simply type in a few details. It is very haphazard.

‘There is no central control over the

30 | CarDealerMag.co.uk

document, often a sloppy attitude to recording the data and no formal back-up process.

‘It is an accident waiting to happen.

The data could easily be corrupted or lost and attempting to rebuild the audit trail would be extremely difficult or impossible. If you were then investigated by the FCA, you’d have serious questions to answer.’

At no extra cost, iVendi is adding an automatic FCA compliance data backup tool to its latest generation of the iVendi Platform, which is designed to manage all aspects of dealer motor finance activity.

Tew added: ‘We have added this feature in response to the data issues that we have seen at a wide variety of dealers. For users of our platform, it provides a complete FCA-compliant data back-up to our secure servers without the dealer having to do anything. It can also be adopted by dealers who do not use the Platform for all of their motor finance activity, although in these circumstances, more of the data has to be added manually.

In this case, it still provides a complete data infrastructure and back-up.’ iVendi recently gained full authorisation from the FCA.

BCA has appointed Drew Hodgson into the new role of finance director for BCA Partner Finance.

Hodgson joined BCA Marketplace in May 2015 as financial performance controller and played a key role in the acquisitions of SMA, Automotive Logistics and Ambrosetti.

In this new role, Hodgson will support Malcolm Thompson, MD of BCA Partner Finance, with responsibility for financial performance reporting and monitoring.

The innovative service helps independent car and van dealers secure incremental funding to allow them to expand their retail operations.

It was the first finance product specifically designed for the UK remarketing sector, helping independent dealers buy from the UK’s largest pool of used vehicles.

Tim Lampert, BCA Marketplace CFO, said: ‘Drew brings with him a wealth of experience, which will prove invaluable in helping us achieve our growth aspirations for this rapidly expanding division.’

IN ASSOCIATION WITH

Family buyers: Treat them well and enjoy repeat business

A

s we willingly dive into summer celebrations, most of our customers (and us, too) are thinking about holidays and what fun things to do over the coming months.

We all know that summer can be a quiet time for car sales but there are ways to keep the traffic flowing through the showroom doors.

I’ve got to hand it to a couple of dealers who are taking the bull by the horns and being proactive in overcoming the imminent downturn. I have already seen a number of air-conditioning re-gas adverts for cross-selling at my local dealers and the cabriolets have been moved to the front rows on the forecourt.

Ben

Garside

‘Summer can be a quiet TIME IS time for car sales, but MONEY there are ways to keep traffic flowing through the showroom doors...’

Hopefully you’re already planning a summer bonanza yourself. But if not, here are a few ideas to assist in your preparations. A year or two ago we did a few family days at dealerships. Now this may not be everyone’s idea of fun, but families are emotional buyers and great for repeat business, if you service them correctly.

On one in particular, we had a number of people carriers and bigger vehicle photos in the advertising, we sent communications via email and post to the dealer’s past customer database. These contacts were who we felt would fit within family demographics, or had purchased similar vehicles to what we were trying to sell.

They were personalised communications informing

them of the day we had planned. When the family day arrived we moved the same vehicle types to the most prominent positions on the pitch.

We had some children’s games in the showroom and an ice cream van onsite all day for all to enjoy.

Although this may be an extreme amount of planning and resource for some dealers, the outcome was remarkable and far outweighed the cost and effort.

An ongoing stream of customers arrived and viewed the vehicles, the dealer’s sales were one of his highest of the year and the response online far greater than expected. Now this may not be your favourite idea but thinking outside the box, what would your customers like? A barbecue day perhaps? Whatever it is make sure you enjoy whatever summer we have.

Now over the last few years I have enjoyed writing for Car Dealer Magazine and sharing my knowledge;

Turn over page for more finance stories mainly on marketing, car finance and regulations. In a few weeks, I will be doing a workshop at the CDX16, where I have chosen ‘social proof’ as a subject matter, as this area is becoming more and more prominent in online buyer behaviour, an area that is constantly growing in the motor trade.

We also have a stand at the, where my colleagues and I will be on hand to offer advice on various subjects as well as being free to talk through First Response’s role in the car finance market.

We will, as with every other company, be dishing out goodies and but also cheat sheets and informative guides. So, make sure you come over and say hello at stand number 115.

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 | 31

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . .

ESTATE CARS BMW 3 SERIES TOURING

AUDI A4 AVANT UPDATED for 2016, the Audi A4 Avant is an award-winning estate model. The A4 Avant Sport ultra 2.0 TDI is currently available on an attractive three-year finance deal with a fixed interest rate of 4.8 per cent and an APR of 4.9 per cent. The deal, inclusive of metallic paint, is kicked off by a customer deposit of £5,499.31, to which the participating Audi centre adds a further £2,500.

Thirty-five monthly payments of £329 follow, which add up to £11,515. Including the deposit and contribution, so far, £19,514.31 will have been paid for the £33,045 car.

Following the payments, the customer has the option to return the car or pay a final payment, plus an option-to-purchase fee. The former is £16,490.80 and the latter £10, which take the total amount paid to £36,015.11. Minus the dealer deposit, the customer will have paid a total of £33,515.11, £470.11 more than the vehicle’s OTR price.

ALSO UPDATED for 2016, the BMW 3 Series Touring retains many of its classic features. In its new guise, the German carmaker’s 318d M-Sport Touring is currently offered on a 48-month finance contract, with APR and interest rates of 4.9 per cent.

The deal is kicked off with a customer deposit of £4,799, which is bolstered by a dealer deposit contribution of £3,100.

Forty-seven monthly payments of £369 equate to a further £17,343. By the end of this term, the customer will have paid £22,142. Should they wish to purchase the vehicle outright after the four years, an optional final payment of £11,240.60 is asked for, plus an option-to-purchase fee of £1. In total, over the 48 months, the total amount paid for the 3 Series Touring is £36,483.60: £33,383.60 by the customer, £413.60 more than the vehicle’s on-the-road cash price of £32,970.00.

Insurance industry set for restructuring thanks to autonomous cars ‘We need to get these cars on the road and start saving lives’

T

he multi-billion-pound motor insurance industry faces a period of radical restructuring as a result of the advent of autonomously driving cars, with the number of crashes set to drop by 80 per cent by 2035 and insurance premiums set to plummet.

Research released earlier this month calculated that autonomous drive technologies could wipe £14 billion off insurance premiums globally by 2020 alone.

At present, motor insurance generates 42 per cent of all non-life gross premiums, the largest single slice of global premiums.

Volvo Cars believes that the insurance industry will have no choice but to react to these seismic challenges to its existing business model.

Hakan Samuelsson, president and chief

32 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

executive of Volvo Cars, said recently: ‘The medium- to long-term impact on the insurance industry is likely to be significant. But let’s not forget the real reason for this – fewer accidents, fewer injuries, fewer fatalities. Autonomous drive technology is the single most important advance in automotive safety to be seen in recent years.

Peter Shaw, chief executive at Thatcham Research, said: ‘Vehicle manufacturers are predicting that highly autonomous vehicles, capable of allowing the driver to drop ‘‘out of the loop’’ for certain sections of their journey, will be available from around 2021. Without doubt, crash

frequency will also dramatically reduce.

‘Research in the US predicts that by 2035, as a result of autonomous and connected cars, crashes will be reduced by 80 per cent. Additionally, if a crash unfortunately can’t be avoided, then the impact speed will also drop as a result of the system’s performance – reducing the severity.’

Volvo is committed to maximising the safety benefits of autonomous cars – and will start the UK’s most extensive autonomous trial, entitled Drive Me London, in 2017.

Samuelsson added: ‘The automotive industry cannot do this on its own.

‘It is essential that car makers work with the government to put in place laws and regulations that allow us to get these cars on the road as soon as possible and start saving lives.’

IN ASSOCIATION WITH

MERCEDES C-CLASS ESTATE THANKS to an attractive finance offer from the German brand, Mercedes-Benz’ new C-Class estate can be had for £329 per month.

The finance offer, with an APR rate of 4.9 per cent and an interest rate of 4.8 per cent, is available on the C200 Sport, with manual transmission and metallic paint. It is commenced by a customer deposit of £5,499, which is boosted by a retailer deposit contribution of £2,501.71.

Following this, the £329 monthly payments are due over 36 months and equate to £11,844 in total.

By the end of the term, the driver will have paid £17,343 and should they wish to purchase the vehicle outright, an optional purchase payment of £14,425, plus a purchase activation fee of £10 are asked for.

These payments take the total amount paid to £34,279.71, £2,501.71 of which will have been provided by the dealer. The customer will have paid £31,778, which is £2774.71 more than the car’s OTR price of £31,505.00.

CLOSE BROTHERS

PRIORITIES

Two new managers will People put gym help dealers as company payments before continues to expand car commitments CLOSE Brothers Motor Finance has appointed a new operations manager and an account manager to support dealers in its Leicester and Peterborough branches.

Dale Phillips has joined the business as branch operations manager in Leicester, having worked in the financial services sector for 14 years. During this period, he has held positions predominantly in the banking and insurance fields.

Tom Stones has also joined the business as an account manager, where he will be supporting and developing strong relationships with dealerships around the Peterborough and Cambridge areas.

Stones has over 15 years’ experience in finance and account management having worked for HSBC as a commercial manager and most recently for Western Business Solutions as a key account manager.

Phillips said: ‘This is a fantastic opportunity to join a company that continues to grow exponentially.’ Stones added: ‘I look forward to meeting with all our dealers.’

GYM memberships, phone bills and new clothes are seen as bigger financial priorities than making car leasing or finance payments, according to new research.

The poll, conducted on behalf of The Money Shop, quizzed respondents on which financial commitments were most important after payday and found that drivers are failing to understand the serious consequences of not making car finance payments on time.

Just three per cent of those polled said their car finance or leasing instalment was their most important payment to be made after payday, while six per cent said they pay their phone bill first. A higher percentage of respondents also viewed new clothes or shoes and gym memberships as more pressing.

CarDealerMag.co.uk | 33

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BIG MIKE.

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

A new source of stock that’s turning out to be quite lucrative

I

don’t know about you, but I’m finding it harder and harder to find good stock.

By that, I don’t just mean cars that have been well cared for and properly maintained.

I also mean cars that have any kind of margin attached to them at all. I think it’s because we’re heading back to the ways of our pre-recession throwaway society, where the enticement of affordable finance utterly outweighs the genuine value that people attach to things.

Cars, by and large, are people’s second biggest investment, coming second only to the house in which they live. While I wouldn’t think twice about investing stacks of cash into the latter (an Englishman’s home is, after all, his castle), throwing loads of cash at a car is actually a pointless extravagance. Rather than tie yourself into a finance deal that parasitically sucks a couple of hundred quid a month out of your bank account ad infinitum, you can spend a year’s repayments on a second-hand motor that, unless you’re really unlucky or lazy with its servicing, will do exactly the same job for a decent period of time before it wears out completely, and will save you a wad of cash into the bargain.

I am, of course, biased. As many of you know, I work in the largely sub-£5k end of the motor trade, where I have an interesting cross-spread of buyers. The desperate, who turn up with £500 they cobbled together from this month’s pay packet and a loan from a family member because they need wheels to get to work, to the genuinely comfortably off.

The side-effect of this return to a throwaway society is this: perfectly good cars are being thrown away. Thanks in no small part to the type of company that says it will buy cars, any of them, and I won’t name names, the public are led to believe that their older-model used cars have virtually no value attributed to them at all.

That, and the lack of a desire to spend £1,000 or so in garage bills repairing a car worth £2,500, when just £95 down and nothing to pay until the next academic year will get the haplessly misled behind the wheel of a South Asian box on wheels with a warranty as long as the finance agreement attached to it (see what they did there?).

In turn, it means that I have resorted to the most unlikely source to generate good stock, and it’s proving to be fairly lucrative, not only for me, but also for the guy that supplies the cars.

The man in question is Scrapyard Dave, so called because his name is Dave, and he works in a scrapyard.

We’re original, us folk in the motor trade. Dave, for a long

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

while, has had a thing going where he keeps back any popular models that come through the gates with good bodywork and reasonable chunks of service history.

More often than not, it’s some form of mechanical failure, deemed economically unviable when you factor in the garage labour, which has led the owner to dispose of the car and buy a replacement. Some of them even come in direct from main dealers as part-exchanges, as it’s cheaper and easier to scrap them than it is to deal with all the auction paperwork and associated fees when the low value of scrap means they’d only claw back a few quid anyway.

Dave, with my help, then finds out what the problem is, and using the gigantic pile of similar cars behind him that are awaiting their turn in the baler, he sources what’s needed to put them back together again. There’s the odd one that ends up being crushed as we can’t work out

‘The side-effect is that perfectly good cars are being thrown away.’ what’s wrong, but nine times out of ten, these automotive Lazaruses (Lazuri?) make their way onto my forecourt.

And we’re not talking old rubbish, here, either. With main dealer labour, a car can be scrapped when worth over £2,000, because with main dealer labour, the clutch, brakes or catalytic convertor required to repair it would push the bill north of its proposed value – especially when the ‘friendly’ car-buying service has already convinced the owner that their motor is worth bog-all.

As an example, last month I sold a 55-plate Volvo S60 that was binned off by its owner as the Volvo agent had decided four discs, four tyres, some brake pads and an air mass meter would set him back £2,400.

We bought new brake bits for it from a factor, found an identical car with similar alloys and four nearly new Hankooks on it in the yard, and also robbed the same vehicle of its air mass meter. Total outlay? £132 for the brake bits, £120 for the tyres, the air mass meter fell into the toolbox and the car itself owed us £150 by the time we’d convinced Dave’s boss not to do the end-of-life paperwork. We fitted the bits ourselves, and with a good valet, I flogged it for £2,395 – not a bad return on a £402 investment. When it comes to sourcing new stock, then, I think I’ve hit breaking point…

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 | 35

FORECOURT. ENGINE

2.0-litre unit produces 228bhp

ROOF

Can be lowered and raised in just 18 seconds

Mini JCW Convertible

RIDE

Firm is an understatement – Very fidgety around town

Jack Evans takes the new JCW for a spin on a sunny spring day and finds it much more grown-up than its predecessor WHAT IS IT? The Mini Convertible has been popular since its first incarnation in 2004. The John Cooper Works Convertible is a more serious affair, throwing top performance and a more involving ride into the mix.

Maintaining that important fun factor is at the heart of the Mini ethos, but has the big-boy power outputs taken that away? We find out.

WHAT’S UNDER THE BONNET? The John Cooper Works Convertible uses a 2.0-litre turbocharged petrol engine, taken from the Cooper S. It produces 228bhp and can power the convertible to 62mph in 6.6 seconds — three tenths of a second slower than the hatch. That’s down to added strengthening to maintain rigidity.

Combined consumption is 43.5mpg and CO2 emissions are 152g/km.

of bells and whistles. Sport seats and a large central display with a chequered flag effect distinguish the JCW from the standard hatch. These seats are supportive and comfortable, though the same can’t be said for those in the rear. Only small children will fit here — even the slightest of passengers will have squashed knees. Another fault is the main arm rest — when changing gear your elbow bashes it whether it is raised or lowered. A Union Jack design can be specified for the soft-top, which takes 18 seconds to raise or lower. It feels like a premium product — but it should for £26,630 without options.

WHAT’S IT LIKE TO DRIVE?

Minis have always traded on the go-kart feel of the handling and it’s pleasing this hasn’t been lost in the JCW. Yes, it’s easy to feel the car’s additional weight at times, especially WHAT’S THE SPEC LIKE? when getting on the brakes at speed.

It’s also firmer than the standard Sitting at the top of the Mini range, the JCW Convertible gets a smattering Cooper S, so it tends to crash into 36 | CarDealerMag.co.uk

potholes. Despite these foibles, the sense of fun is still there. The engine note is addictive, with all the pops and crackles you’d want in a hot hatch and, with no roof, it’s even easier to enjoy. How do those two front tyres deal with all the added power, though? Not brilliantly, as the added grunt causes them to squirm under hard acceleration.

WHAT DO THE PRESS THINK?

THE KNOWLEDGE Model:

Mini John Cooper Works Convertible Price: £26,630 Engine: 2.0-litre four-cylinder turbocharged petrol Power: 228bhp 0-60mph: 6.6seconds Max speed: 150mph MPG (comb’d): 43.5mpg Emissions: 152g/km

TARGET BUYERS: Young couples, professionals, summer-time drivers

THE RIVALS:

Auto Express said: ‘The hottest open-topped Mini is a little costly, but for small-car thrills on a sunny day it’s hard to beat.’

DS3 Performance Cabrio, Mazda MX-5

WHAT DO WE THINK?

1. Excellent fit and finish 2. High levels of performance 3. Involving driving experience

The JCW Convertible is pricey but its sense of quality and desirability shouldn’t be undervalued. It’s a much bigger and more grown-up car than its roofless predecessor and so appeals to a more mature audience.

It may not be as good value as rivals, but it’s got that all-important smile factor that convertible drivers seek.

KEY SELLING POINTS:

DEAL CLINCHER: More expensive than others, but does feel like a high-end product

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www.blueskyinteractive.co.uk CarDealerMag.co.uk | 37

FORECOURT. TAILGATE

Touch-free entry on Titanium cars and above

FOUR-WHEEL DRIVE

All models are four-wheel-drive, with an intelligent AWD system

ADAPTIVE STEERING

Ford Edge

Sport models gain speed-sensitive steering system

Andrew Evans drives the Blue Oval’s big new beast with its American styling and finds it’s a bit hefty for British roads WHAT IS IT? Ford’s new large SUV, the Edge is a big, chunky crossover that looks American with good reason. It’s from the One Ford school of producing cars to slip into any market. The Edge joins the Mustang as an American market vehicle now offered to European customers.

WHAT’S UNDER THE BONNET? The European choices are diesel or diesel. Although Ford doesn’t offer a diesel Edge in its home market, this side of the Atlantic we can choose between the 180PS and 210PS versions of the 2-litre ‘Duratorq’ TDCI diesel engine. The lower-powered version has a six-speed manual gearbox, while the 210PS model gets a six-speed dual clutch automatic. All models have Ford’s intelligent fourwheel drive system.

WHAT’S THE SPEC LIKE? This is where the Edge majors. From the entry level Zetec model, every 38 | CarDealerMag.co.uk

Edge gets automatic lights and wipers, keyless start, DAB radio with a colour touchscreen and reversing camera and safety assists like lanekeeping, emergency city braking and traffic sign recognition. Ford reckons only around two per cent of buyers will go for the £29,995 Zetec, with a near 50:50 split for the Titanium and Sport models. These gain goodies like acoustic glass and a touch-free tailgate, with sports suspension and active steering on the Sport grade.

WHAT’S IT LIKE TO DRIVE? Big. Very, very big. On normal roads it’s sobering, with a few sharp intakes of breath when the going gets tight.

The weight counts against it and with only 208bhp to hurry you along there’s little sense of acceleration — though the 177hp manual alternative loses only half a second on the 60mph ‘sprint’ (9.4s to 9.9s). With the Sport, adaptive steering is standard but we prefer the more natural feel of the ordinary model. Off-road the car’s

intelligent all-wheel-drive system coped with a little light mud duty but on the large 20-inch wheels and road tyres it moved about enough to suggest that harsher terrains might be best left alone.

WHAT DO THE PRESS THINK? Autocar says ‘it’s bigger, more refined and better equipped than its rivals’.

AutoExpress remarks: ‘Edge looks the part and is packed with kit, but you need much more than that to challenge in this competitive class.’

WHAT DO WE THINK? It’s not terrific to drive thanks to the weight and size. As a cruiser it’s comfortable and you get plenty of room and equipment for the money — you might buy an X3 for the same price but you’d need to throw thousands at the options list to match the Edge. It’s a good-looking beast, but whether you can admire it on your driveway depends on whether it would fit there.

THE KNOWLEDGE Model: Ford Edge Titanium

Sport 210PS Price: £36,750 Engine: 2 litre, 4-cylinder

diesel Power: 208bhp, 400Nm Max speed: 131mph 0-60mph: 9.4s MPG (combined): 47.9mpg Emissions: 152g/km

TARGET BUYERS: Families who need more room than the Kuga offers

THE RIVALS: BMW X3, Volkswagen Touareg, Kia Sorento

KEY SELLING POINTS: 1. So much equipment 2. It’s really rather handsome – in our view, at least 3. Full time four-wheel drive on all models

DEAL CLINCHER: Probably the best-looking car in the class

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CarDealerMag.co.uk | 39

FEATURE.

FIRST DRIVE

BMW M2 Can the BMW M2 live up to the exclusive 1M Coupe that came before it? Jon Reay finds out WHAT IS IT? One of the most keenly awaited cars of the year – and with good reason. Take the formula for BMW’s potent M4, boil away a few brake horsepower, mix in the pint-size 2 Series Coupe and sell it for £13k less – what’s not to like?

Feeling the deja vu yet? We’ve been here before: Back in 2011, BMW pulled off the same trick with the previous-generation car, and the result – the 1M Coupe – is regarded as one of the purest M cars ever made, and used examples have a price tag to prove it.

Where the 1M was a limited-run car though, with just 500(ish) ever sold in the UK, BMW isn’t feeling quite so restrictive about the M2. Make no mistake, with only 700 hitting the UK this year, these won’t be piling up out the back, but potential buyers are now in with a fair shot at owning a miniature M car before production ceases.

WHAT’S UNDER THE BONNET? It’s a 3.0-litre turbocharged straight-six, so very much like the M3 and M4 – albeit with one turbo instead of the bigger cars’ pair. Strictly speaking it’s based on the engine from the M235i, but with various internal bits like the pistons robbed from its bigger M car brothers.

There’s less power than you’ll find in an M4 – 365bhp compared with 425bhp – but in a drag race it’s just a fraction behind in terms of acceleration, hitting 62mph in 4.3 seconds against the M4’s 4.1 when both are fitted with the DCT seven-speed automatic gearbox.

Joyfully though, the standard £44k car comes with a six-speed manual – just like the 1M – and it’s a goodie too, having been fettled specifically for the M2.

Beyond that, there’s a whole host of pretty serious chassis tweaks that separate this from the standard 2 Series – various bits of the front and rear suspension are modelled on those from larger M cars and made from strong but lightweight forged aluminium, while the brakes are borrowed from the M4 too.

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You get the obligatory Active M Differential at the back as well, fearlessly negotiating with the rear wheels as to which can handle the bulk of the M2’s heady 465Nm of torque (500Nm with overboost) at any given moment.

WHAT’S THE SPEC LIKE? Probably not what you’re expecting from BMW: there’s one trim level, and almost everything from the 2 Series options list is bundled in for free.

Bluetooth, Professional (bigger screen) Navigation with online services, leather seats, 19-inch alloy wheels... it’s all there. Even the four paint choices are all no-cost options – including the captivating Long Beach Blue that is likely to make up 50 per cent of sales.

Beyond the DCT automatic gearbox at an eye-watering £2,645, there’s only a handful of additions left to pick from – keyless entry, reversing camera, heated seats and so on, all at pretty reasonable prices. Unlike the Audi RS3 and Focus RS, there’s no option of any racier bits like

Recaro shell seats from the factory, but certain interior and styling add-ons can be ordered though BMW’s M Performance parts catalogue and fitted by a dealer.

We’d be tempted to stump up for an Alcantara steering wheel if nothing else – apart from some forgettable carbon-fibre trim, you could well be sitting in a 220d M Sport as far as the M2’s standard interior goes, which is a bit of a shame.

WHAT’S IT LIKE TO DRIVE? In a total non-shocker, it turns out that it’s very good indeed. Let’s start with the engine: being a delicious and oh-so-BMW straight six, it’s a far more characterful unit than those of its less

THE KNOWLEDGE

Model: BMW M2 Price: £44,075 Engine: 3.0-litre turbocharged petrol Power: 375bhp Torque: 465Nm (500Nm with overboost) 0-62mph: 4.5 seconds Top speed: 155mph (limited) Economy: 33.2mpg (comb’d) Emissions: 199g/km

TARGET BUYERS: Those who missed their chance at buying a 1M

THE RIVALS: Porsche Cayman, Audi RS3, Mercedes-Benz A45 AMG

KEY SELLING POINTS:

1. Most accessible M car for driving on normal roads 2. Substantially cheaper than the M3 and M4 3. Unlike the Cayman, it’s still got a tuneful six-cylinder

DEAL CLINCHER: The most affordable M car, and probably the one to have

power when you fancy performing a swift overtake.

The ride, it must be said, isn’t punishingly bad either.

We’ll reserve final judgment until we get it on a UK road, but it’s hard to imagine Audi’s or Mercedes’ set-ups being any better damped. And even if they are, we’d trade some comfort for the BMW’s poise and balance in a heartbeat.

The steering is a typical BMW affair too: nicely weighted (more so in ‘Sport’ mode), direct and with a pleasingly quick ratio. The manual gearbox isn’t bad either – robust enough to use in anger, but light enough for day-to-day driving – while the seven-speed DCT automatic is faultless.

Interestingly, BMW says that PAGE 42 25 per cent of sales so far have been for the manual – a much higher proportion than on any other current M car.

BMW M2 IN DETAIL

WHAT DO THE PRESS THINK? cylindrically-endowed rivals, and combined with a trick exhaust it makes for a pretty soulful soundtrack. There’s less power on tap than the M4, but at no point do you really find yourself asking for any more.

This is a quick car, and having access to big lumps of torque from as low as 1,450rpm – thank the twin-scroll turbo for that – means you never really find yourself in the wrong gear.

The flip side of all that power at such mundane

RPM means you need to have your wits about you before you casually plant your right foot.

This isn’t an RS3 or even a Cayman: much like its bigger M brothers, the M2 demands a little more thought before you so much as tickle the accelerator pedal, particularly on wet roads.

The trade-off is worth it, though. It’s a manageable car to have fun in – sideways or not – and driving around day-to-day you’ll be thankful of all that instantly available

Autocar said: ‘There’s a very real chance – as we hoped there would be – that the cheapest M-car might also be the best.’

WHAT DO WE THINK? Given the demand for the 1M five years ago, dealers should have no issues finding buyers for its 2016 successor.

It looks, sounds and drives brilliantly, and it’s every bit as good as an entry-level M car should be.

CarDealerMag.co.uk CarDealerMag.co.uk | 41 | 41

FEATURE.

IN DETAIL

BMW M2 POWER

ENGINE 3.0-litre engine is based on that of the M235i, but with various internal bits either uprated significantly or just plain robbed from the M3’s powerplant. Twin-scroll turbo keeps engine hungry for action even at low revs.

365bhp and 465Nm of torque mean M2 can hit 62mph in 4.3 seconds, going on to a limited 155mph top speed. That’s just a few fractions of a second behind its bigger brother, the M4, and quicker than the upcoming Cayman S.

BRAKES Brakes are suitably performance-biased: 380mm front discs and 370mm rears, with four- and two-piston calipers respectively. As the M2 is the entry model to the M range though, no carbon ceramic option is available.

GEARBOX Buyers can have a seven-speed DCT automatic gearbox borrowed from the M3 and M4, or a sixspeed manual re-engineered specifically for the M2. The latter comes as standard, and around 25 per cent of buyers have picked it so far.

PRICE

DRAG

WHEELS

The M2 starts at £44,070 – just under £13,000 less than the M4, BMW UK’s current biggestselling M car. M235i buyers will need to find another £9,000 if they want to make the step up, though M2 gets more standard kit.

Despite the additional cooling required by the gigantic brakes, the M2’s aerodynamic tweaks have actually reduced drag by five per cent over the standard 2 Series. Lift has been minimised by 35 per cent too for extra high-speed stability.

There’s just one choice of wheel: the 19-inch forged aluminium ones seen here. They’re very lightweight, and wrapped around them are Michelin Pilot Super Sport tyres designed specifically for the car.

42 | CarDealerMag.co.uk

1,900

INSIDE

Unlike the exclusive 1M Coupe before it, BMW isn’t limiting the M2’s numbers. Around 1,900 are destined for the UK in total, with just 700 of those arriving this year. There’s already a considerable waiting list built up, mind.

Interior is immediately recognisable as belonging to a 2 Series, though some open-weave carbonfibre trim and sports seats with adjustable bolsters mark out the M2 as the performance model of the range.

OPTIONS Personalisation doesn’t end at the factory options list: BMW has a catalogue of dealer-fit parts for buyers who want to make the M2 more trackfocused. Even lower suspension, sports steering wheels and various carbon-fibre exterior parts are all available.

COLOURS Just four colours are available: Alpine White, Black Sapphire, Mineral Grey and Long Beach Blue. The last option is likely to make up 50 per cent of sales – hardly surprising, given how good it looks – and all are no-cost options.

CHASSIS There are no complicated adaptive dampers here, but the M2’s chassis has plenty of uprated bits to make sure it handles like an M car. Rear suspension design is borrowed from the M3 and M4, and control arms have been forged from lightweight aluminium.

EXHAUST

DIFFERENTIAL Active M differential is another carry-over from further up the M range and can send between zero and 100 per cent of the M2’s power to each rear wheel, depending on which driving mode is engaged.

BURNOUTS ‘Smokey Burnout’ mode lets drivers showboat a little with no extra effort – allowing the rear tyres to spin up dramatically while the M2 crawls along at low speeds. It’s a neat party trick, if you can afford to replace the bespoke Michelin tyres…

M Quad sports exhaust system gives the M2 a fantastic soundtrack, and thanks to an electronic flap, it quietens down a bit when the car is in ‘Comfort mode’. An even more hardcore trackready exhaust is a dealer-fit option.

WE SPEAK TO BMW UK BOSS ABOUT M BRAND PAGE 45

CarDealerMag.co.uk | 43

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FEATURE.

INTERVIEW

Paul Ferraiolo Marketing director, BMW UK

How important a market is the UK to the M brand?

Actually really important. If you look at global sales for BMW, for all cars the UK is ranked fourth – China, then America, then Germany, then the UK. But for M cars, we’re the second biggest market, and I think that really speaks a lot to the strong automotive enthusiasts community that we have in the UK. I think it’s the great roads we have, and there’s a lot more car enthusiasm in the UK. So for the M business, it’s a great market for us.

What makes an M car an M car?

There are a few key elements, I think – one of the beautiful things about an M car is that these are cars you can use every day. If you want to go to motorsport events at the weekend, it’s perfect for that. And that fantastic duality – to excel in a track environment, to have this daily usability – to me is one of the key strengths of the M car. Then it’s just everything that make a great track car great – the balance, the rigidity… the handling characteristics, the performance – and most importantly that it’s fun to drive day-to-day.

Do you see elements of the M2 that hark back to the older M cars?

Definitely. Being our entry model, it’s a little more simple and maybe doesn’t have the ultimate extremes of performance that the larger M cars have, but for something you can explore a little bit more on public roads, it’s really well suited for that – and that’s something where it’s closer to the M cars that came before it.

Can you see demand outstripping supply, as was the case with 1M? Well it’s not limited like the 1M Coupe was, although we don’t have a lot of volume compared with the overall business, but the M2 will probably be the number one or number two selling M car – the M4 being our biggest seller in the UK. So although there are limited numbers, within the M community I’m hoping we can meet demand – or certainly come very close to doing so.

How’s demand been so far?

There’s been a tremendous amount of interest.

So the reaction to the concept, the car, has been

good, and our retailers are reporting a high level of interest.

Is there a danger of diluting the M brand by having too many performance models in the range?

Well, if you look at M sales overall versus our total BMW sales it’s a very small portion, it’s still very exclusive. What I love is that the M cars have their own different characters, and the character is appropriate for the segment that it’s in. I think what we’ve done is given the enthusiast a lot of choice.

How important is the rear-wheel-drive layout to M? A great question… We have some great engineers, and we always establish certain performance targets. The engineers do what they’ve got to do to make each car work in the segment it’s competing in. That’s as vague as I can be!

Can you see there being a four-cylinder M car on the horizon?

I don’t look after strategy so I’m not that close to what’s happening in the future, but I’ve never heard anyone talk about that.

WE DRIVE THREE M LEGENDS IN WALES PAGE 46

CarDealerMag.co.uk | 45

FEATURE.

BMW M

After getting to grips with the mighty M2, we headed to Wales to find out how it stands up against its forebears.

SOPHIE WILLIAMSON-STOTHERT reports.

F

or more than 40 years, the iconic ‘M’ has become something of a legend. Born in 1972 for the race circuit alone, ‘M’ stood for ‘Motorsport’, helping to power BMW’s already successful, rear-wheel-drive tin-top machines of the ’60s and ’70s to victory lane. It wasn’t until 1978 that the very first M-badged road car was revealed to the public at the Paris Motor Show, enabling a lucky handful of drivers to enjoy the performance and virility of ‘M’ every day – it was the oneand-only M1 stand-alone supercar, and only 456 examples were ever made.

This powerful letter, in the capable hands of the German giant that is BMW, has helped bring the thrill and flair of motor racing to the road. And BMW’s sporting arm has grown to become one of the most successful 46 | CarDealerMag.co.uk

high-performance divisions in the automotive world.

To celebrate 100 years of BMW and 44 years of M Division, we drove into the depths of north Wales and through the winding roads of Snowdonia behind the wheel of what are arguably thee of the most important M cars to ever leave the production line.

Our line-up consisted of the M635 CSi, the third M-badged car to be built between the years of 1984 and 1989, the E46 M3 CSL, one of four E46 special models, the CLS was a limited edition of the M3 with only 1,400 cars produced in 2004, and the monstrous M4 of 2015.

We’ve delved through history and spoken with some of the UK’s longest-serving BMW dealers to find out why these cars will always remain at the heart of M power and why the modern M4, alongside its baby sister the M2, will continue the legacy.

PHOTOGRAPHY: JONNY FLEETWOOD LOCATION: NORTH WALES

CarDealerMag.co.uk | 47

FEATURE.

BMW M635 CSi Not the most agile, perhaps, but certainly the fastest.

In fact, it uses the same engine as the M1 supercar...

W

hat you’re looking at here is the was comparable to the contemporary Porsche first true series production ‘M car’ 928’s 5-litre V8 and the Ferrari 400i’s 4.8-litre V12. and the fastest series production Road tests of the era put the M635 CSi on the car that BMW has ever made. same sort of pace as the Porsche 911 Turbo and The M brand was born in the 1970s as an the Lamborghini Countach – heady company. internal division of BMW that supported the Paul Michaels, the chairman of the Hexagon factory’s racing efforts. Already pretty successful, group, started as a BMW franchised dealer in the BMW Motorsport took the team to a higher 1960s and was part of the genesis of BMW M. level. With the 3.0 CSL – famously dubbed ‘the With the M635 CSi he agrees that it’s all about Batmobile’ – the team won the European Touring that powerplant. ‘They weren’t known as an M Car Championship and took a class win at Le car at the time, but they became one.

Mans in 1973.

‘What made it such an iconic M car is its As performance road cars became midspectacular engine. I sold quite a few of them but engined – with obvious racing implications they were never really a super-popular car – BMW became determined to make of their time.’ It’s hard to see why, really, KEY FACT a mid-engined car of its own for considering how much you’d need to The M635 CSI homologation in the new Group 4 spend to even keep up. Perhaps it was used the same regulations. Handbuilt by BMW M, due to the shock value of it – as Dan engine as the M1 this car – the M1 – became the first Norris, MD of Munich Legends, points supercar ‘M car’. However, it was the M635 out. ‘If you look back at BMW, there CSi (that’s ‘Coupe Sport Injection’, not was no precedent for them to bring out a ‘Crime Scene Investigators’) that was the first car like this. They broke the mould and were example of a full series production M car – and it fairly highly priced,’ he said. owed more than a little to the M1.

‘But BMW pitted them against the Ferraris and Using a wet-sumped version of the M1’s the Jaguar XJS and it more than held its own.’

3.5-litre straight six, and electronic fuel injection Nonetheless, even as the oldest car in our rather than the mechanical injection of the M1, group by far, it’s still an entirely civilised affair. the M635 CSi actually produced more power than In this company it could be considered an its race car sibling, with an additional 10hp and enthusiast’s car rather than a driver’s car.

10Nm of torque. This pushed the M635 on to While there’s nothing wrong with the ride or a top speed of 158mph – 3mph more than the the handling – and bear in mind that this was electronically limited cars, making it the fastest a pretty heavy car in 1984, it’s an entire person series production BMW ever! This 282hp monster lighter than the modern M4 – how it goes and

48 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Price as new: Value now: Engine: Power: Max speed: 0-60:

BMW M635 CSi £37,000 £20,000 (approx) 3.5-litre, straight six 282hp 158mph 6.4 seconds

stops are, at least objectively, not quite at the level of the more recent M cars. The slowest car here, the M635 often had to run at the front as the brakes are markedly less effective. The steering is rather meaty too, but that’s nothing compared with the clutch – all things considered, you get a proper workout driving the M635.

Still, it does give the feeling that you’re doing everything yourself and, unlike the over-assisted and far-too-capable newbies, it is arguably the driver’s car of the group and the most stylish.

BMW E46 M3 CSL It’s one of four special models based on the iconic E46 M3 and it’s regarded as the pinnacle of M power...

T

he E46 M3 CSL; it’s a beast, to say the cars – like the M4 – have slowly lost their purity.’ least, and has become one of the most To enthusiasts’ delight, M Division agreed to desirable and sought-after M cars of all build four special models of what had become time. The base model 3-Series E46 M3 the beloved E46 M3. The Model M3, M3 CSL, M3 was introduced in October 2000. Powered by the GTR V8 and M3 CS have become legends in their beloved 3.2-litre six-cylinder S54 M-tuned engine own right, but there’s one in particular that stole – known by many as the straight six – which our hearts, and that’s the CSL – the Coupe Sport produces 388bhp, it appeared across the globe in Lightweight. Limited to a production run of 1,400 coupe and convertible variants. cars, the M3 CSL was born for the E46’s 2004 For its time, the E46 M3 was staggering. This model run. It was only available in two colours – modest-looking coupe could not only power from Black Sapphire Metallic and Silver Grey Metallic.

0-60mph in 5.1 seconds and go on to reach a The clue to the reasoning behind the M3 CSL top speed of 155mph, it was also a looker with a lies in the name, with an emphasis on reducing bold interior and muscular stance – exactly weight. Shaving 110kg off the regular what you’d expect for a near-£40,000 E46 M3, the CSL model weighed in at KEY FACT car, which you can now pick up for a 1,385kg and featured weight-saving The E46 M3 CSL bargain price of £7,000. technologies taken from BMW’s can shift gear in It is, therefore, no surprise that the Formula 1 racing applications. The less than a tenth E46 turned out to be a huge hit with focus was strategically on reducing or of a second BMW M enthusiasts. These menacing, moving the weight to retain the E46’s rear-wheel-drive M cars sold like hot 50:50 weight distribution qualities. The cakes, with 85,744 examples rolling off the straight six unit was also retuned to produce production line between 2000 and 2006. an extra 17bhp, pushing total horsepower to Paul Michaels, who was a BMW-franchised 405bhp. Unlike the standard E46 M3, which was dealer in the 1960s and is now chairman of offered with a standard six-speed Getrag gearbox Hexagon, the prestigious classic car showroom in or an optional SMG drivelogic transmission, the London, said BMW built the E46 M3 during ‘the M3 CSL was only available with the latter. This best time for M Division’. featured an electro-hydraulically-actuated clutch He said: ‘M cars are built for a very select pedal – more technology derived from Formula audience. In the 1970s and ’80s, M cars were 1 back in the early Noughties, enabling it to shift regarded as the ultimate drivers’ cars and, in gear in less than a tenth of a second. ‘The M3 those days, they were what I call “pure”.

CSL will become a classic car par excellence in ‘Today, although they are very good cars, the M the future,’ said Michaels. ‘It’s based on a proper doesn’t stand for what it did before. As BMW has, M product, not to mention the iconic 3.0 CSL of inevitably, widened the market, the modern M 1972, and it does everything it says on the tin.

THE KNOWLEDGE Model: Price from new: Value now: Engine: Power: Top speed: 0-60mph:

3-Series E46 M3 CSL £58,455 £90,000 (approx) 3.2-litre straight six 405bhp 155mph (limited) 5.1 seconds

Drivers love them because they can head out for a drive and take the family, too. Considering their limited run, it’s no surprise they’re fetching up to £88,000 today – I think this could increase to £100,000 in the next three years.’

Driving the M3 CSL ‘sensibly’ is somewhat out of the question, and in terms of car and driver working as one, it’s bang on the mark. And if their market value is likely to hit £100k in the next five years, now is the time to be sourcing them.

CarDealerMag.co.uk | 49

FEATURE.

BMW M4 Can the M4 live up to the reputation established by its predecessors, or is it ‘too modern’ for its own good?

T

he Bavarian brand somewhat broke the inline engine, which red-lines at 7,500rpm and mould with this one. was built specially for the M3 and M4 models. It’s While the old-school folk would deem also available with the six-speed manual gearbox the M4 as a bit of a souped-up 4-series or a seven-speed M-DCT transmission. Mated to rather than a pure M car, this modern machine the M-DCT, the power unit enables the M4 to resembles that of its performance predecessors sprint from 0-60mph in four seconds and, like its more than you might at first imagine. It’s two older siblings, will climb to a limited top speed years old now and the big brother to the spritely of 155mph. Unlike the classics, which sound a new M2. It even reintroduced the 3.0-litre glorious, raw engine note from the tail pipes, straight-six engine configuration to the M range, the M4 features Active Sound. This means a live replacing the E90 M3’s 4.0-litre V8, which was the amplification of the engine’s natural sound is first mainstream M3 to house the monster unit. inducted into the cabin via the speakers. BMW The M4 is a top performer from every angle says this is because the car’s well-insulated cabin and it all comes for a reasonable price. can weaken the M power grumble and, The key feature on this car is the little therefore, this helps the driver to hear KEY FACT tell-tale button on the steering labelled it more clearly. However, this is not to The M4 brought ‘M1’, which transforms the car from a everyone’s taste. the 3.0-litre inline laid-back coupe into a fully-blown GT ‘If you jump behind the wheel of engine back to racer – which is why we kept pressing a modern M car, like the M4 or the the M range it. A long left-hander followed by a M2, you’d find very little to criticise swift right flick of the steering wheel and – they’re extraordinary cars,’ explained you remember why this car has been dubbed Dan Norris, MD of the world’s leading with the mighty M badge on the rear. independent BMW dealer Munch Legends in Replacing the iconic M3, the M4 could be West Sussex. ‘That’s until you start comparing described as a 4-Series on steroids, boasting a them with classic M cars. powerful twin-turbocharged engine, improved ‘Take the M635CSi, for example. The monstrous handling, upgraded brakes and suspension, and M88 V8 made it the fastest production M car enhanced aerodynamics. The weight has also of all time, and it still is today. It’s not the most been significantly reduced, with a stiffer chassis nimble of M cars, but if you learn how to handle and extensive use of carbon fibre – much like the weight of the car properly, it’s quick and a the M3 CSL. BMW previewed a basic version of great little car to drive. the M4 to the world in August 2013, but it wasn’t ‘These days, one man in a white coat can set until September that same year that the brand up the engine and the note it produces in a revealed the official technical specifications. studio, whereas in the past, old M cars were pure, The M4 is powered by an M-tuned 3.0-litre untouched by human intervention.’

50 | CarDealerMag.co.uk

THE KNOWLEDGE

Model: BMW F82 M4 Price from new: £56,650 Engine: 3.0-litre, twin turbocharged Power: 425bhp Top speed: 155mph (limited) 0-60mph: 4.0 seconds

Since the introduction of stricter safety regulations, not to mention manufacturers’ goals to lower emissions, performance cars are, inevitably, becoming a little more ‘sensible’.

‘There’s no doubt the M4 will go on to become a future classic one day,’ said Norris. He added: ‘It’s everything you’d expect from a modern performance car, proudly following in the wake of its predecessors.’

We’d gladly shake the hands of the folks who built the M4 because, despite following the rules and regulations, it’s still a cracking car. [CD]

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Gearing up for growth and helping your customers . . .

PARAGON CAR FINANCE

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t’s just over two years since Paragon Car Finance re-launched into the UK vehicle finance market. During that time, new car sales have rocketed, dealer finance has become ever more popular and the FCA has taken full charge of consumer credit regulation. With the pace of change showing no signs of easing up, we highlight the finance issues that will matter most to dealers seeking to optimise their future growth.

A flexible approach on used car finance: First and foremost, dealers need finance products that offer flexibility on key terms including deposit, term and monthly repayments.

New car registrations reached a record 2.6 million in 2015, with more than 81 per cent of purchases funded through dealer finance up from 52 per cent in 2010.

As more and more of these vehicles are returned into the market at the end of their term, used car finance is enjoying a similar boost.

Dealers looking to maximise their used car sales need to find ways to help customers buy the best possible car for their budget. For highvalue used cars, specially-adapted PCP and lease purchase products can be particularly suitable, allowing for a deferred lump sum payment at the end of the deal to match the still substantial value left in the vehicle.

Against this background, Paragon’s own, innovative range is proving particularly interesting to introducers at the moment.

W: paragoncarfinance.co.uk T: 0345 149 7777 dealers an almost immediate ‘yes’ or ‘no’ answer back from a lender on a finance proposal.

However, whilst online systems are essential, dealers can also benefit by choosing a lender who runs a relationship-focused underwriting team alongside the technology.

At Paragon, our underwriters are always on hand to explain case decisions and will regularly work with introducers to propose an alternative deal structure – perhaps with adaptations around the deposit level or contract term – to arrive at a funding arrangement that’s acceptable both to the customer and the lender.

On key accounts, we’ve also adopted mobile underwriting, encouraging our team to spend time on-site with introducers, working together to improve productivity.

built up firepower are still looking to spend.

With this in mind, alongside straightforward consumer vehicle finance, dealers looking for growth should consider finance products aimed at business customers and more specialist consumer vehicles.

For our part at Paragon, we’ve already established a strong finance product for LCVs for growing businesses, we’ve introduced a flexible product for prestige vehicles, and we are planning to introduce specialist finance for motor homes over the coming months. [CD] For further information, contact Julian Rance, Head of Paragon Car Finance at Paragon Bank, pcf@paragonbank.co.uk

Finance for specialist needs: Finally, although the UK economic outlook is perhaps a little more uncertain than it was 12 months ago, with interest rates still at an all-time low it’s fair to say that many businesses are still looking to expand and that consumers who’ve

Fast but personal: Online application systems are now the norm, giving

‘‘

Dealers need finance products that offer flexibility on key terms CarDealerMag.co.uk | 53

FOCUS ON.

Paint protection

You’re in safe hands with SUPAGARD

W: supagard.co.uk

M

anaging Director Jean Quinn explains why Supagard is regarded as the UK’s number one in professionally applied paint, fabric and leather protection: We’re a family-owned business and we’re very proud of what we stand for. It’s more than just selling a product, it’s about providing treatments for our customers’ vehicles which enhance their lifestyle by making them easier to clean and visually maintaining or improving their appearance.

From humble beginnings in 1988, we’ve grown to become the leader in our field, with 16 OEM partners and more than 3,000 franchised dealer customers.

More than three million vehicles have been treated with Supagard and our extensive national team of Account Managers provides a range of comprehensive training programmes tailored to individual businesses. These not only cover product information and benefits, but also a proven sales process to ensure success and high penetration rates. Figures in excess of 40 per cent are not unusual among Supagard customers.

We’re committed to a research and development programme which ensures that we offer only market-leading technology that is proven to make a demonstrable difference.

This is recognised by our many industry accreditations including ISO 9001, NQA, PRA, VBRA Approved and IMI Approved Centre along with our Car Dealer Power Awards in 2011 and 2014.

Our business continues to expand both in the UK and internationally and we consider eco-friendly and sustainable practices essential to being responsible members and supporters of our global community. We believe that businesses have an accountability to the future – a special role and a special responsibility in

‘‘

We’re committed to a research and development programme which ensures that we offer market-leading technology.

Supagard Managing Director Jean Quinn

54 | CarDealerMag.co.uk

T: 0141 633 5933

confronting the challenges of climate change and environmental sustainability.

To this end, all of our boxes are made from recycled material and we use delivery trucks with low-emission Euro 6 engines.

As the UK’s leading provider of paint and interior protection products, we continually strive to offer innovative product and marketing solutions to our dealer and manufacturer partners. We know that your chosen paint sealant provider is just a part of your wider business, but we aim to be with you all the way and I can say with confidence that you are in safe hands with our team.

International expansion The last 12 months have seen a massive influx in global interest in the Supagard brand and product range to such a degree that the business has now created a new head of international sales position which has been filled by Alan Graham. He first joined the business in 2000 and more recently again in January 2014, having spent two-anda-half years prior to that in a similar role with another coatings company.

Graham is based at the company’s HQ but spends much time travelling and managing the company’s international team across multiple continents. Appointments have already been made in some key markets for the business with major supply contracts following on.

Graham said: ‘The Supagard brand is viewed as market-leading in the UK in all ways. However, it’s fantastic to learn that we have a much wider global fan base than we ever realised.

‘While not yet as established, the brand is still recognised in many markets globally and translates well.

‘The British heritage and manufacturing facilities are very highly regarded and it’s something we’re really proud of. The efficacy of our product range is such that climatic extremes present no challenge, meaning that we do not need to compromise on our model or guarantee offering in any market as a result.’

2016 will see the business consolidating with existing global partners and embedding new staff into the culture of the company; however, there is a massive appetite to further develop internationally and progressive discussions continue with a number of other potential

opportunities, although a number of open points do still exist.

With regional facilities being created across the world, Supagard’s Glasgow HQ has already transformed to become a Global hub for the business with record growth forecast for next year.

New environmentally friendly product ranges After another exceptional year of growth for the UK’s market leader, Supagard’s technical and purchasing director, James Smyth, announced that 2016 will see some radical changes that the rest of the market will have to follow.

Supagard

Jean Quinn

Alan Graham

James Smyth

‘Health and safety is paramount,’ he said.

‘And with the introduction of our ‘‘new green range’’, we want our clients to be aware that all our new products target everything from the professional application to the customer take-home kit – there is no compromise!’

As Supagard build their brand internationally, they want products that are safe to deliver to any country in the world and further increase their customers’ experience of quality.

Twelve new formulas have been introduced into Supagard’s customer aftercare range and these environmentally-friendly solutions will offer much better value for money as well as some ‘wow factors’ on the results after

application. Smyth continued: ‘Our unsung heroes, the valeters who professionally apply the products, are also going to benefit.

‘We offer a choice of two paint protection systems: Supagard Plus which is polymer-based, or Supagard Xtra which is polysilazane based and protects against birdlime for up to seven days, along with our unique Leather Preserver which guarantees against dye transfer from clothing – and with so much emphasis on green products, we are currently introducing an alternative upgraded fluorocarbon fabric protection system.

‘This fast-drying formula is touch-dry in 90 seconds and allows vehicles to be occupied and

driven away after five minutes, which frees up valet bays much sooner and allows customer handovers to be quicker.’

Supagard are also working to convert their boxes to have Chain of Custody Certification in conjunction with the Forest Stewardship Council (FSC). This means that all the paper comes from a sustainable source and that for every tree used, another three are planted.

So it’s not just new products from Supagard to look forward to this year, but a refreshing new outlook in this market sector – maybe it’s time to ask your existing supplier what they are doing to help the environment.

CarDealerMag.co.uk | 55

WINNER Paint Protection provider of the year 2015 GardX Vehicle Protection System (V.P.S.)

an award winning formula award winning F&I and add-on solutions provider award winning support for your dealership award winning profit maximise your potential with GardX

visit us

follow us contact us t | 56 | CarDealerMag.co.uk

01243 376 426

e | info@gardx.co.uk

w | www.gardx.co.uk

FOCUS ON.

Paint protection

A winning combination to boost your bottom line GARDX INTERNATIONAL

N

ever let it be said that GardX International is a company that’s content to rest on its laurels. The firm has had a storming start to 2016 – and many of its dealers have, too.

GardX is a real success story, branching out from its original awardwinning paint and interior

W: gardx.co.uk protection system into a full suite of F&I and insurance solutions, aftermarket products and their new exciting, professional video and still image product, AD-Vantage.

But paint protection remains at the heart of its operation – and justifiably so. The company offers some of the most innovative products in the industry and backs them up with first-class account management and sales processes.

They go a lot further to ensure they deliver the GardX promise, increased profit and customer satisfaction every time.

It’s a combination of award-winning products, dedicated dealer support and determination to improve their dealers’ profitability that makes the GardX offer so powerful. The company has a very impressive list of dealers who think the same way.

Lookers, Inchcape Retail, Perrys, JCT600, CarShop, Cargiant and Vindis are just a few.

And in fact, John Tordoff, the CEO of JCT600, recently applauded GardX’s performance by saying that switching to GardX had doubled the income his company was achieving compared with their previous paint protection partner.

GardX operates in several major global markets with some of the world’s leading manufacturers and dealer groups – true testimony to the quality of its products.

A huge accolade for GardX this year was being chosen by BMW UK as their official paint and interior protection supplier replacing BMW’s previously approved paint and fabric product.

This contract was won after intensive testing and commercial evaluation was carried out by BMW UK to ensure the best product was sourced for their retailers and customers.

Looking back more than a decade, GardX began trading back in 2003 – and the current GardX account management team have a huge amount of industry expertise between them.

Well schooled within the industry, many have held senior level positions within dealer groups, manufacturers and insurance providers.

Need more incentive to get involved with GardX? How about the fact that you’d be able

T: 01243 376426

‘‘

We instil disciplines and processes which ultimately drive increased sales and therefore profitability. to tell your customers you’re offering them an award-winning paint & interior protection system?

GardX International won two awards last year at the Car Dealer Power Awards: Paint Protection Supplier of the Year and Product Innovation of the Year for its cosmetic repair insurance offering, C.A.R.S. So can working with GardX help a dealership become more profitable?

The company is in no doubt. ‘Most definitely,’ we were told. ‘One of our key strengths is our ability to integrate within a business to instil disciplines and processes which ultimately drive increased sales and therefore profitability.

‘In a recent case study, GardX was shown to have increased a dealer group’s sale of paint protection by 68 per cent. And that’s nothing unusual for the majority of clients!’

It’s not just car dealers who love GardX products – car owners do, too. ‘We have received many customer testimonials praising our products and a lot of repeat purchasers,’ Car Dealer was told.

‘Key strengths are the durability and up-todate technology of our products. All products are manufactured in the UK and our paint protection system has also achieved British Standard ISO 2812/5. We are the only UK paint protection company to achieve this.’

So to sum up, here’s what GardX can deliver, in the company’s own words: ‘We offer a complete profit solution to our dealers through our innovative range of paint protection, niche insurance, aftermarket and advanced vehicle imaging products – all of which are supported by industry-leading professional account management. No surprise that we have experienced such meteoric growth.’

Maybe it’s time you joined the GardX success story.

CarDealerMag.co.uk | 57

Profits from other vehicle protection systems look dull by comparison.

Carbon Shield TechnologyTM Fuses liquid carbon to vehicle paintwork to create an impenetrable barrier against harsh contaminants and the elements.

LifeShine’s new Carbon Shield Technology™ outlasts other vehicle protection systems to give your customers a superior product and put the shine back into your profits.

Research shows that on average a dealership’s penetration rate increases by 13% when they switch to LifeShine*.

What’s more, with a lifetime guarantee from the most recognised and respected name in car care, it really is the easy choice for customer satisfaction.

That’s the Autoglym way. Always has been.

For a free demonstration of Carbon Shield Technology™ and to see how our unique support materials can benefit your dealership, please call 01462 677766 or email Lifeshine@autoglym.com. *

Swift International Research 2014

www.lifeshine.com 58 | CarDealerMag.co.uk

FOCUS ON.

Paint protection

Sealing in the value with LifeShine from Autoglym AUTOGLYM

E: lifeshine@autoglym.com T: 01462 677766

W

ith ever-tighter margins on new car sales, dealers have a golden opportunity to boost profitability and add value to customers at the same time. When it comes to vehicle protection systems (VPS), independent research shows that dealers achieve, on average, increased penetration rates of 13 per cent when switching to LifeShine by Autoglym.

Some dealers have seen a boost in penetration of as much as 80 per cent.

Why? Autoglym is the most established and recognised premium car care brand among consumers and the holder of two royal warrants.

After 50 years of experience, the company continues to push the boundaries of pioneering technology to create tangible benefits for consumers and the opportunity for dealers to secure a highly profitable extra revenue stream.

LifeShine’s unique Carbon Shield Technology formula fuses liquid carbon molecules to vehicle paintwork. A result of intensive research and development, Carbon Shield Technology delivers even more durability, providing an impenetrable barrier against all road contaminants – tar, salt, mud – and the weather.

A leading independent specialist in surface and coating technology recently verified a controlled durability test, in which LifeShine Carbon Shield Technology outlasted competitor systems by a minimum of 10 fold.

Increased durability does not mean increased preparation time though, as Autoglym has ensured that LifeShine remains the frontrunner in the VPS market when it comes to ease and speed of application. For vehicle

preparation teams, this is a crucial consideration so that productivity is maintained. The single application process can be carried out in just 30 minutes, complemented by a rapid curing time.

Further research also found that 94 per cent of technicians described LifeShine as ‘easy to apply’, which outperformed all other brands.

For sales personnel, LifeShine’s Carbon Shield Technology provides a dynamic opportunity to seal in the value for customers and boost incremental dealer profit.

A new car is generally the second largest purchase a consumer will make, so it makes financial and practical sense to protect this investment, which will help maximise the vehicle’s residual value in the longer term.

Autoglym’s nationwide dealer support includes the LifeShine App, a simple-to-use interactive tool, enabling sales staff to present the features and benefits of LifeShine to customers, which can be presented in person and emailed to them.

For dealer customers, LifeShine affords ultimate peace of mind that their car is protected with one of the most cutting-edge VPS available.

As well as guarding the paintwork and interior, LifeShine includes an all-important glass treatment, meaning customers will not have to spend valuable time or expense on continual cleaning. Every VPS comes with the LifeShine

aftercare collection, for remedial cleaning with a range of complementary products that will enhance and lengthen the protective qualities of Carbon Shield Technology.

The PDI kit also features a best-in-class interior protectant that has hydrophobic properties, proven to be more effective than competitor products. It is more repellent to different types of oil and alcohol-based liquids, as well as water, fizzy drinks and milkshakes!

There’s the added reassurance of a lifetime guarantee, for as long as the owner keeps the vehicle, something that Paul Caller, Autoglym’s Chief Executive, is keen to highlight: ‘LifeShine Carbon Shield Technology has proven to deliver the complete and most profitable VPS solution for dealers. With a lifetime guarantee from the most recognised and respected name in premium car care, LifeShine presents a compelling proposition.

Autoglym’s unrivalled sales, technical and customer support is backed up by significant investment in consumer advertising to raise awareness of LifeShine, so we help drive demand.

'This will help more dealers build LifeShine into the overall sale and achieve increased profitability. LifeShine is endorsed by brands including Jaguar Land Rover, Audi, Volkswagen, Seat, Skoda, Vauxhall, Kia and Honda, as an approved VPS for their dealer networks.’

To learn more about how LifeShine can boost your profitability, call 01462 677766 or email lifeshine@autoglym.com. To find out more about LifeShine’s Carbon Shield Technology visit www.lifeshine.com.

‘‘

With a lifetime guarantee from the most recognised and respected name in premium car care, LifeShine presents a compelling proposition.

Paul Caller, Autoglym Chief Executive CarDealerMag.co.uk | 59

FOCUS ON.

Paint protection

Get closer to your customers W: autoprotect.co.uk

AUTOPROTECT

P

aint protection is a profit, customer service and retention opportunity for every dealer, so is your business realising its potential?

The product fits naturally at the point of sale; it helps customers to sustain that new car look and feel throughout their ownership, which in turn can help future values.

The combination is a virtuous circle. Add in a brand synonymous with leading-edge performance in the Formula 1 environment, plus great service and training, and success is all but guaranteed.

So how valuable is paint protection to your business today? And what impact could a new, fresh approach make?

Alex Youngs, national sales manager for paint protection at AutoProtect, which markets the Williams-branded paint protection portfolio in the

T: 01279 456600

OUR dealer partners find that working with AutoProtect adds significant value – in terms of the way their business operates, the pace at which it grows and ongoing levels of customer satisfaction and retention.

Every service we offer is easy to monitor, measure and, if need be, modify – in UK, said: ‘Customers want to sustain that new car feel for as long as possible.

‘In providing a service that fulfils this need, the dealer develops a closer bond with their customer.

This simple rationale can be embedded into the sales process, ensuring a product that is good for everyone is promoted consistently.’

Every year, millions of pounds are spent on car cleaning. What better opportunity than at the very moment the customer buys their car to offer a

consultation with you of course. We help with business development, sales team training, compliance, claims management, marketing and customer services.

We also provide responsive integrated technology delivering real-time M.I. – not to mention class-A underwriting. product that saves money, time and effort and will keep their vehicle in tip-top condition?

The key is ensuring they know the option is available to them. If it is never offered and explained, then the sale and retention opportunity simply will not be realised and this is all too often what can happen. ‘Customers want ease and convenience; this is absolutely true about car maintenance, yet too often the opportunity is overlooked,’ added Youngs. [CD]

LIFETIME GUARANTEE*

“ STAY ON TRACK WITH THE BEST PRODUCT ” NIGEL MANSELL. CBE. FORMULA ONE WORLD CHAMPION - 1992

Like Nigel Mansell, your customers expect the best from their cars. They also like to keep them in showroom condition; so it’s time to look at the outstanding paint, wheel and interior protection offered by Ceramic Coat.

Licenced by Williams and endorsed by Nigel Mansell, Ceramic Coat delivers a flawless, tough finish. Unrivalled in the sector, this vehicle protection system also comes with a lifetime guarantee.

Ceramic Coat impresses customers and boosts margins, and AutoProtect is the sole UK distributor. So to understand how your business stands to benefit, please call 01279 456600 or email: sales@autoprotect.co.uk

WATCH THE VIDEO PRESENTATION www.autoprotect.co.uk

The Williams name and logo are trademarks of Williams Grand Prix Engineering Limited and are used under licence.

Williams Images © 2016 Williams Grand Prix Engineering Limited. All rights reserved. Ultimotive Ltd is the worldwide licensee of Williams car care products. Ultimotive Ltd, 4 Altbarn Close, Severalls Business Park, Colchester, Essex, CO4 9HY, UK. *Terms and conditions apply.

60 | CarDealerMag.co.uk

12729 NM Williams Press Ad.indd 1

28/04/2016 12:49

SuperUnleaded.com THE GRID

Top stories, accelerated by you...

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

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Daily motoring news where you help choose what’s important. From the makers of award-winning @CarDealerMag straight out of @BlackballMedia

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Farmer Gets Blocked In By Car, Improvises With Tractor

New Bugatti Rolls Off Truck In Vienna, We Like Look Of It

When faced with a car parked across his driveway, an innovative famer took matters into his own hands and used a tractor to move it out of the way. superunleaded.com/?p=14342

The arrival of Bugatti’s new Chiron is on the horizon, replacing the incredible but ageing Veyron. However, by the look of this new Chiron, we won’t stay sad for long. superunleaded.com/?p=14333

Thanks, Lego! You’ve Given Us A Porsche We Can Afford

YouTuber Leaves Ferrari’s Bonnet Unlatched... Oops!

The Porsche GT3 RS is one of the ultimate sports cars in the world, as it’s pretty much a racing car with a licence plate. And now Lego is releasing its own homage to it. superunleaded.com/?p=14308

When YouTuber Marchettino was lent a garish Ferrari 458 Italia to test by a friend, no doubt there were strict instructions not to hurt it. You can pretty much guess the rest. Ouch… superunleaded.com/?p=14255

Canines In Cars… It’s The Furry Automotive Future!

Want To Make Your Car Even Better On Snow? Here’s How

With all this self-driving car revolution malarkey, maybe it won’t just be humans enjoying time behind the wheel. Our footage shows a golden retriever ‘driving’ a Tesla. superunleaded.com/?p=14223

Track’N’go has created a way of attaching snow tracks to conventional wheels, turning any SUV into a snow-eating monster. Check out how they work on this Jeep Cherokee. superunleaded.com/?p=14199

Biker Says Bye Bye To The Police In Crazy Getaway

A McLaren P1 Bites The Dust In China, Watch And Mourn…

When an officer tries to stop a motorcyclist at a set of lights in the USA, the biker’s fight-orflight instinct kicks in. Unfortunately, he is sent into an uncontrollable wheelie. superunleaded.com/?p=14118

With just 375 McLaren P1s built between 2013 and 2015, there aren’t that many of them on the road. And unfortunately, that number’s just got even smaller. Find out why online! superunleaded.com/?p=14181 CarDealerMag.co.uk | 61

The percentage of people that chose to buy a car from one of our Approved Dealers because of the association with the RAC

Extra profit RAC Approved Dealers can expect to make per car

Being an RAC Approved Dealer gives you greater customer

Complimentary Breakdown Cover for each vehicle you sell

RAC 82 Point Approved Preparation Standard

Use of the RAC Brand to give your showroom added impact Our RAC Approved Dealer scheme can help drive more customers to your dealership.

To apply for Approved Dealer status, contact us today

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.

62 | CarDealerMag.co.uk

FOCUS ON.

Lead generation

Hundreds of dealers using the RAC brand to generate leads RAC

E: dealernetwork@rac.co.uk

W: rac.co.uk/getapproved

I

n a highly competitive used car market, how do you differentiate yourself and create leads that have a high chance of converting into sales?

More than 200 dealers around the country have now harnessed the power of the RAC brand to make their business stand out.

Almost three-quarters (73 per cent) of used car buyers who purchased a car from a member of the RAC Approved Dealer Network said the RAC brand first attracted them to the dealership.

There are plans to appoint a further 150 dealers to the network this year, explained Sean Kent, director, corporate and independent dealers.

However, finding the right dealers continues to be more important than outright quantity.

He said: ‘Our approach from the launch of the network has been to place quality first, ensuring RAC BuySure sees dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a car data check, and a minimum of three months of RAC Warranty cover. In support of this, the RAC will provide 12 months’ RAC Roadside breakdown cover. that dealers share our commitment to a customerfocused approach. Even though we doubled the number of dealers in the network during 2015, we will only ever expand at a rate defined by finding the right dealers with which to partner.’

At the network’s heart is RAC BuySure, a unique used car initiative that is designed to meet consumer expectations of the RAC brand.

Kent said: ‘RAC BuySure has been developed specifically to provide used car customers with a used car proposition, available nationally, that is open to all kinds of dealers and sets very high standards. Being part of the scheme does mean commitment from dealers but they are rewarded with leads and customers who are prepared to pay a little more for a vehicle of this quality.

‘Our research indicates additional unit chassis profits of £200-300 while there is also reduced pressure to discount.’

For further details contact dealernetwork@rac.co.uk or visit rac.co.uk/getapproved

Eight million members and one million visitors monthly ONE of the advantages of being part of the RAC Approved Network is that the strength of the brand delivers customers from further afield.

Sean Kent explained: ‘When a customer is browsing used cars online, having the RAC name next to the vehicle is a major selling point.

‘Most dealers struggle to attract customers from beyond a radius of 20 miles or so but, with RAC BuySure, we regularly hear of people driving from across the country to see a dealer.

‘They rightly believe that the RAC would only put its name to a used car programme of the highest quality and so are willing to travel

hundreds of miles for the right car prepared to our standards. In a sense, RAC BuySure turns all of our dealers into national companies.’

Another key advantage of becoming part of the RAC Approved Network is that it plugs you straight into the unrivalled marketing power of the RAC with its eight million members.

For example, your dealership will be listed on the RAC website and route planner, which attracts more than one million visitors a month.

You will also be given access to brand assets to maximise the impact of the RAC name and access through our unique online marketing portal.

CarDealerMag.co.uk | 63

Put the industry’s most

award-winning mobile marketing at your fingertips.

Search Optics, the world’s leading digital marketing innovator, has arrived in the UK. As Google’s reigning mobile champion*, our class-leading technology powers thousands of automotive dealer campaigns internationally.

Reach more customers with our proven digital marketing solutions.

Mobile Champion Award Winner Industry Leader in Certifications

Stop by Stand 316 in Hall 3 for your complimentary digital assessment and start maximising your online leads. searchoptics.co.uk | info@searchoptics.co.uk | 0800 868952 * 2015 Google Premier SMB Partner – North American Mobile Champion Award Winner

64 | CarDealerMag.co.uk

FOCUS ON.

Lead generation

Deliver the right message to achieve the right results SEARCH OPTICS

W: searchoptics.co.uk T: 0330 001 7688

T

he digital marketing landscape is fast-moving and to many it can seem complex and unassailable.

Search Optics believes that helping businesses understand the benefits of online marketing and how it can simply be integrated into a company’s strategy, will help them develop intelligent marketing campaigns that reach their customers at the right time, with the right message and with the right results.

Its core ethos is to offer the latest technology combined with a human touch. David James, managing director of Search Optics’ recently-launched UK office, says: ‘We believe that speaking our customers’ language and understanding their challenges, enables us to provide appropriate digital marketing services that ultimately help them generate more sales.’

Search Optics, a global digital marketing company, was co-founded in 1998 by a party of four and currently operates in seven countries.

Although the business serves other industries, it does specialise in the automotive sector, and has developed digital marketing solutions that not only meet the demands of the market, but keep ahead with technological advances.

These advances are predominantly driven by the growth of the internet and how it is used.

Eighty per cent of the population in Western Europe are regular internet users and more than half of this is through mobile penetration.

This progression is stimulated by the increasing popularity of smartphones and with over 76 per cent of adults in the UK owning a smartphone, which means that today’s consumers are connected now more than ever.

‘The market is there and ready,’ says James.

‘However, it’s about how you engage with the

‘‘

Not understanding the true value of digital marketing could mean losing sales to your competitors and even failing as a business.

individual businesses.’ He points out that there are more than 5.4 million SMEs in the UK and according to government statistics, more than two million don’t have a website. Of those that do, 31 per cent lack basic digital skills.

‘Talking to UK OEMs, dealer groups and dealers, the reason for this can be down to resources, budget, complacency and perhaps a simple lack of knowledge and confidence.’

Not understanding the true value of digital marketing could mean losing sales to your competitors and even failing as a business, believes James.

Search Optics has already proved in North America that its solutions can increase sales leads by as much as 20 per cent.

James has more than 15 years’ experience in the automotive industry working for, amongst others, EurotaxGlass’s, 2nd Byte and most recently Manheim Retail Services.

He knows what is needed for businesses to stand out amongst the competition in a very

crowded digital market place. ‘It’s much more than how good your website looks, you need to ensure your business has adopted a ‘‘mobilefirst’’ strategy and ensure the consumer can find you when they are shopping and researching.

Just having a responsive website isn’t enough for today’s consumer.

‘Consumers are now using their mobiles to shop for their next car, more often than they use a desktop or laptop, with mobile consumers embracing mobile paid search at a faster rate than organic search. Owning the mobile paid search space will be crucial for advertisers in 2016 and beyond.’

Building optimised websites suitable for various devices and platforms has always been one of Search Optics’ principal offerings, through its flagship Blueprint solution.

However, Search Optics provides a whole portfolio of online marketing services that ensure its customers are seen and get the best results.

CarDealerMag.co.uk | 65

FOCUS ON.

Lead generation

Technology provides total visibility over online leads IVENDI

W: ivendi.com T: 0845 226 0503

N

ew technology means that dealers are now able to track the entire customer journey online, providing complete visibility over web leads, says iVendi.

Tools have become available in the last few months that can monitor the customer from first website visit all the way through to their motor finance application being finally approved and the car delivered.

James Tew, CEO of iVendi, said that the development provided a hitherto unavailable view of the ways in which customers behaved both individually and as a group. He said: ‘Dealers IVENDI is the UK’s market leader in digital motor finance, providing solutions used by the leading car portals, thousands of dealers and many major finance providers.

We deliver a connected digital journey that provides both dealers and customers with an unprecedented degree of control over motor finance, completing the gaps so that the entire car-buying experience can be completed online. have always been able to view certain aspects of customer behaviour but we are now in a situation where the missing links of the process have been completed and we can produce a comprehensive picture.

‘Within one screen, dealers can look at all the key points in the customer journey. It is quite an advance and something that has definite value. It turns anonymous leads into real people

66 | CarDealerMag.co.uk

with identifiable behaviour patterns as early as possible. Dealers can then use this intelligence to move much closer to completing a sale and driving their profitability forward.’

Tew, pictured below, said that data for the complete customer journey could be viewed through the new generation of the iVendi Platform, which was launched earlier this year, and is designed to manage all aspects of dealer motor finance activity.

‘Our view is that what dealers want in 2016 from a provider like iVendi are motor finance tools that help to maximise the potential of both online and in-showroom leads – and the new platform does just that.

‘So, for example, one of its key innovations is an in-showroom finance comparator. This may sound like a contradiction but it is designed to bring all of the

advantages of an online motor finance offering into a real-world sales environment.’

Tew explained that, as part of the showroom process, the salesperson could sit down with the customer and use the comparator to look at a range of finance products and offerings for those with varying risk appetites.

‘It provides a very structured, convenient and FCA-compliant way of presenting motor finance and is so intuitive that the sales person can even leave the customer to decide on their own preferred finance solutions.’

Whether your lead has emerged online or in-showroom, or zigzagged between the two, the iVendi Platform provides complete visibility, even automatically aggregating all types of online and showroom enquiries against a prospective customer and recording all the quotations presented against each vehicle.

Tew added: ‘However a lead now presents themselves to you, the technology is available to ensure that you have the very best chance of meeting their needs.’

CarDealerMag.co.uk | 67

FOCUS ON.

Lead generation

www.t4media.com

t supports 27 dealerships

Local advertising that works!

st-effective communication T4 MEDIA

W: t4media.co.uk T: 020 7233 9777

zzle campaign from Peugeot saw 27 of the emember that old saying ‘Nobody which reaches exactly the part from around the UK. Alice Bowden is Account counts the number of ads you run; right people and provides they just remember the impression you best bang for your the media specialist for Peugeot. She comments:

R

make’? If you don’t, now is the ideal advertising buck!’ time to become acquainted with it.

AdNozzles are a highly credibly popular with the Peugeot dealerships as Trying to build your business in a local accountable way to target y targeted and cost-effective communication with community isn’t always as easy as it sounds. How motorists every time they fill local canarea.

Due to the flexibility AdNozzles you ensure your adverts are drawing attention that up at petrol stations across and from the right people? the UK, enabling ership can run a bespoke creative with their dealers own to Businesses big and small often spend target motorists in a specific ntact thousands details, ensuring that they achieve positive region, postcode or town. of pounds on advertising, without ‘Our coverage is huge, understanding its market penetration or the e afterfully time.” consisting of 4,200 forecourts business it may or may not be building.

72 per cent of all UK So how can you make your ads are main pumping was supported bysurePeugeot brand, which fuel volume. These include noticed by your target audience, are st in being AdNozzle advertising, because it is now a locations such as Total, helping to generate enquiries and sales, and ’ format on cash? their for all BPrelevant Esso and fuel forecourts for minimal The media answer is T4schedule Media’s Sainsbury’s, well-proven AdNozzles. looking forward to working with T4plus Media onTesco theand Morrisons supermarkets, T4 Media is a 25-strong team led by CEO Greg currently being planned.” with Moto Hospitality, Anyon from its offices in Waterloo. The firm Roadchef and Welcome comprises sales, marketing, operations and Break motorway forecourts,’ finance teams who work together to deliver said Anyon. unmissable advertising campaigns for a variety of ‘Dealers tend to start with a clients, including the motor trade. four-week run, which allows T4 Media has been working with major brands, their target market to absorb motor dealerships and retail outlets to deliver the message, offer and brand. accountable and impactful campaigns since 1995, Independent research shows helping to generate new and used car sales for THE latest AdNozzle campaign from Peugeot saw 27 of its that it takes approximately dealerships across the country. dealerships from around the UK taking part. Alice Bowden, two to three minutes for a The company’s aim is to help local dealers 020 7233 9777 account director at Rapport, the media specialist for Peugeot, driver to fill up their car and, shout louder about their business than they could said: ‘AdNozzles are incredibly popular with Peugeot within that time, they will if they were advertising using traditional media. dealerships as they enable highly-targeted and cost-effective make a minimum of nine Working with manufacturers such as Nissan, communication with motorists in their local area. This latest visual connections with the BMW/Mini and Peugeot, large independent burst was supported by the Peugeot main brand, which AdNozzle – for an average of groups, independent dealers, auto centres and continues to invest in AdNozzle advertising because it is now a 52 seconds. even workshops, T4 Media customers firmly proven ‘‘must-have’’ format. We look forward to working with ‘The tyre company believe AdNozzles are the most effective T4 Media on the next burst which is currently being planned.’

Bridgestone ran an AdNozzle form of advertising. campaign and were amazed ‘When you buy into AdNozzles, you’re at the results. Independent guaranteed a 100 per cent motoring audience – or go for a fixed year. It’s in your hands.’ research reported that after filling up and paying this means out of 48,000 fill-ups, your ad will be AdNozzles give dealers the flexibility to choose for their fuel, 59 per cent of drivers checked their seen by 48,000 drivers,’ explained Anyon. ‘There their campaign location and how long it runs tyres as a result of seeing the advertising – that’s is no wastage. Dealers have a bespoke message for but what’s more, they are one of the most two-in-three drivers carrying out a check because and a spectacular artwork designed by our team, competitive forms of advertising, costing less than of direct contact with the AdNozzle.’ a penny per supermarket campaign of four weeks Anyon added: ‘A four-week run gives you in duration that delivers 48,000 motorists – and a really noticeable impact in your target you always get all the nozzles on the site. market. Eight weeks helps you drown out your ‘We pride ourselves on the quality of our competition by being the loudest and proudest We stand up under the harshest campaign execution and like nothing better than dealer in town and in 12 weeks you achieve scrutiny. Our products do exactly a challenging brief to get us thinking. local legend status – you might as well be ‘We stand up under the harshest scrutiny the only dealer in town because you own the what we say on the nozzle. and our products do exactly what we say on the consciousness of all the local motorists.

Greg Anyon nozzle, not on the tin.’ [CD] ‘After that, you can advertise in 12-week bursts

‘‘

68 | CarDealerMag.co.uk

CarDealerMag.co.uk | 69

DASHBOARD. FEATURE.

Ask Lawgistics .com

Q

What can I do if there is a mistake when a car is handed over to a customer and they have knowingly paid less for their car than they should have?

This happens more frequently than you would think. Quite often the customer, knowing there was a mistake, pays 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 the £1,000 he was missing from the deal.

A

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

Q A

Someone has posted a bad review of my garage online. Can I take them to court for defamation?

We get asked this on a regular basis and in answering it, we need to go back to the very basics of this area of law. Defamation is the placing of something in the public domain which is both false and which causes the reputation of a garage to unfairly diminish in the eyes of others. However, bear in mind the following: l Subjective statements of opinion – as well as insults – are generally not defamatory. So, if a customer says, ‘the mechanic was very rude to me’ or ‘the garage was very unhelpful,’ these are not comments that are going to be considered ‘against the law,’ no matter how much you disagree with them. l You cannot, however, make a defamatory comment and claim it to be an allowable opinion by simply writing ‘I think’ in front of it ! l A customer criticising a car they have bought from you is different to criticising you as a garage. So, ‘the car they sold me had numerous faults’ is unlikely to be sufficient to harm your business and again could be seen as a subjective opinion.

The best way to react is as follows: Where possible, write a response and give yourself some good

publicity at the same time. If someone says you were rude, write a reply explaining what you did to help them. If they say you were ‘unhelpful,’ explain that perhaps you were not able to agree to replace all four tyres because the customer had driven 10,000 miles in the car since taking possession.

Or, for example, explain that you cannot be expected to give a refund on a £1,000 car just because, after four months, the bulb in the glove compartment has failed. Responses like these will, of course, make the complaining individual look somewhat silly. So be it! It makes you look very reasonable. Turn the negative into a positive.

If this is not possible, ask for genuinely defamatory statements to be removed by contacting the webhost. Similarly, if a person is placing a bad review when you know them to be non-customers – reply by stating it’s a fake review – or again ask the web-host to remove it.

Going to court is unlikely to ever be worthwhile. It is very time-consuming, very expensive, very difficult to prove reputational damage and only adds fuel to a fire that would otherwise be extinguished very quickly – either by responding suitably or getting the web host to remove.

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.

I’ve repaired it – but now they want a refund!

Q

I’ve repaired a vehicle as my client complained of a fault. They now wish to reject the vehicle.

This often happens. The Consumer Rights Act 2015 will be the applicable legislation if the vehicle was sold after October 1, 2015 and the 30-day (short-term right to reject) will begin from the day the consumer accepts the goods into their possession.

Whether a fault renders a vehicle of unsatisfactory quality is decided on a case-by-case basis. If you have offered to carry out a repair as a goodwill gesture and the consumer has accepted this, and you have then carried out the repair in a reasonable amount of time, the customer is not entitled to a refund.

However, the Consumer Rights Act 2015 does make it clear that, should a repair take an unreasonable amount of time, the consumer can request a full refund instead.

The above is only applicable within the first 30 days of the sale. It alters slightly beyond the 30-day mark.

A

WHY I JOINED CAR DEALER CLUB

Tajinder Singh has found Lawgistics’ help incredibly useful lately. He explains why...

WITH his Sheffield-based dealership, Winchester Car Sales, celebrating its 20th anniversary this year, Tajinder Singh knows a thing or two about the motor trade.

However, when he joined Car Dealer Club a couple of years ago, he almost immediately signed up for Lawgistics’ Small Business Membership.

And despite only having had to rely on the company’s advice a handful of times, Singh says the service they provide is invaluable for smaller car dealerships which may not have the finances or time to resolve problems themselves.

Singh contacted Lawgistics when he was sold a Volkswagen Golf with finance outstanding.

Faced with the prospect of going to a small claims court in order to recoup his money, he asked the legal solutions company for some guidance.

‘They helped me with letter-writing and explaining exactly how to pursue things all the way through to the small claims court,’ he said.

‘And thanks to their advice, I was successful. The other person ended up paying in the end, and the case was settled only a few months ago.’

While Lawgistics have helped Singh with other minor issues he has faced, he believes that their support in court is the biggest benefit of membership.

‘If you have to go to court, with Lawgistics you know what your maximum outlay will be.

‘So you just pay the membership fee, whereas if you go to a solicitor you can end up paying a lot of money for things.’

Singh also makes use of the company’s excellent selfadministered dealer warranties, finding them to be more professional than those the dealership used previously.

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

n

SMMT Sales Data

n

Taking Stock

Fleet and business sectors lead April’s ‘modest’ growth ‘Confidence remains high as buyers capitalise on attractive finance deals’

N

ew car registrations in the UK made a modest gain of two per cent in April, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).

A total of 189,505 cars were registered in the month – the most in April since 2003, when 194,312 new vehicles found homes.

As in March, the market growth in April was led by the fleet and business sectors, where respective increases of 6.1 per cent and 2.8 per cent counterbalanced a 2.5 per cent fall in private registrations.

Meanwhile, demand for both petrol and diesel models remains high.

Registrations of petrol cars increased 3.4 per cent in April, while diesel saw a slight 0.6 per cent decline.

Following the trend set in the first three months of the year, uptake of alternatively-fuelled vehicles jumped by more than a quarter as buyers looked to reduce emissions and running costs.

April’s performance puts registrations

for 2016 to date 4.4 per cent up on the same period last year.

It follows a bumper March in which more than 518,000 cars were registered – the second-biggest month on record.

Demand for cars has been running at a high level, after 43 consecutive months of growth in the market led to an all-time high of 2.63 million car registrations in 2015.

Mike Hawes, SMMT chief executive, pictured, said: ‘After such a strong March, April’s steadier performance was to be anticipated.

‘Consumer confidence remains high as buyers continue to capitalise on

attractive finance deals, although this could be affected by political and economic uncertainty in the coming months.’

Ian Gilmartin, head of retail and wholesale at Barclays, said: ‘We saw another very solid performance from the new car market in April.

‘We’ve been expecting more moderate growth for some time, so it’s reassuring to see that the industry has simply shifted gear rather than gone into reverse. The dip in private sales is something manufacturers and sellers will have to keep an eye on, but there shouldn’t be any undue cause for concern, especially considering the strong numbers posted for both fleet and business registrations.

‘We might now observe a run of more measured numbers, but as long as the industry remains focused on the fundamentals such as ensuring good margins for sellers and adapting to changing consumer demands, it remains on track for an excellent overall result in 2016.’

Jeep riding high as Renegade sells well JEEP marked another record month in April. The SMMT figures revealed that Jeep enjoyed a market share of 0.69 per cent – the best in any single month for the brand since 1997.

Jeep registered 1,303 new cars in April, compared to the 605 units registered in the same month the previous year. The 4x4 brand is also the UK’s leading manufacturer in terms of growth, with an increase in new car registrations of 115 per cent – the largest 72 | CarDealerMag.co.uk

year-on-year growth of any car maker.

The Jeep Renegade, right, continued to be the firm’s most popular model with 1,058 sales, followed by the Grand Cherokee with 104 units, Cherokee with 122 units and the Wrangler with 19. Damien Dally, head of brand, Jeep UK, said: ‘2016 is a very special year for Jeep. Not only are we celebrating our 75th anniversary, we are also celebrating some truly fantastic sales milestones for the brand.’

SMMT sales data April/year to date

5

Top

Most-improved manufacturers in April

Jeep +115% Jaguar +108% Infiniti +91% Bentley

+89%

Abarth +80%

5

Bottom

Worst-performing manufacturers in April Chrysler -100% Lotus -48% Aston Martin -42% Maserati -36% Citroen* -28%

LEXUS -20%

HONDA +35%

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

April 2016

2016

287 345 41 13,668 195 10,980 0 0 4,639 1,898 902 3,890 23,311 3,353 7,183 335 2,405 1,303 6,866 6,482 835 24 94 2,314 12,077 272 3,994 1,392 10,029 6,804 1,361 5,196 3,500 6,617 900 257 272 2,303 6,644 16,037 16,877 3,324 80 219 189,505

% market share 0.15 0.18 0.02 7.21 0.10 5.79 0.00 0.00 2.45 1.00 0.48 2.05 12.30 1.77 3.79 0.18 1.27 0.69 3.62 3.42 0.44 0.01 0.05 1.22 6.37 0.14 2.11 0.73 5.29 3.59 0.72 2.74 1.85 3.49 0.47 0.14 0.14 1.22 3.51 8.46 8.91 1.75 0.04 0.12

April 2015

2015

159 299 71 13,264 103 10,891 0 10 6,458 2,320 0 3,695 25,018 2,471 6,628 175 1,151 605 6,143 5,549 1,044 47 148 2,614 10,082 308 3,938 1,470 9,844 7,498 1,322 4,140 3,525 6,688 701 165 223 1,819 6,634 16,538 18,690 3,056 95 179 185,778

% market share 0.09 0.16 0.04 7.14 0.06 5.86 0.00 0.01 3.48 1.25 0.00 1.99 13.47 1.33 3.57 0.09 0.62 0.33 3.31 2.99 0.56 0.03 0.08 1.41 5.43 0.17 2.12 0.79 5.30 4.04 0.71 2.23 1.90 3.60 0.38 0.09 0.12 0.98 3.57 8.90 10.06 1.64 0.05 0.10

% change 80.50 15.38 -42.25 3.05 89.32 0.82 0.00 -100.00 -28.17 -18.19 0.00 5.28 -6.82 35.69 8.37 91.43 108.95 115.37 11.77 16.81 -20.02 -48.94 -36.49 -11.48 19.79 -11.69 1.42 -5.31 1.88 -9.26 2.95 25.51 -0.71 -1.06 28.39 55.76 21.97 26.61 0.15 -3.03 -9.70 8.77 -15.79 22.35 2.01

2016 1,314 1,953 315 61,048 653 57,475 3 0 25,993 9,351 6,186 22,555 117,208 23,062 32,551 859 11,085 5,049 31,028 30,600 5,172 111 421 19,505 59,316 1,264 20,172 7,977 53,872 37,795 4,687 29,155 16,890 27,039 3,737 1,640 1,257 13,848 37,432 91,069 74,320 14,832 249 1,237 961,285

Year-to-date (YTD) % market share 0.14 0.20 0.03 6.35 0.07 5.98 0.00 0.00 2.70 0.97 0.64 2.35 12.19 2.40 3.39 0.09 1.15 0.53 3.23 3.18 0.54 0.01 0.04 2.03 6.17 0.13 2.10 0.83 5.60 3.93 0.49 3.03 1.76 2.81 0.39 0.17 0.13 1.44 3.89 9.47 7.73 1.54 0.03 0.13

2015

687 1,737 335 58,183 510 50,915 2 106 31,716 9,849 0 21,744 119,822 19,635 31,494 407 6,103 3,327 28,408 26,154 4,730 135 523 17,344 50,393 1,167 18,899 9,440 56,091 40,411 4,052 24,733 17,683 25,419 2,011 787 1,173 12,009 36,844 91,714 79,078 13,647 261 688 920,366

% market share 0.07 0.19 0.04 6.32 0.06 5.53 0.00 0.01 3.45 1.07 0.00 2.36 13.02 2.13 3.42 0.04 0.66 0.36 3.09 2.84 0.51 0.01 0.06 1.88 5.48 0.13 2.05 1.03 6.09 4.39 0.44 2.69 1.92 2.76 0.22 0.09 0.13 1.30 4.00 9.96 8.59 1.48 0.03 0.07

% change 91.27 12.44 -5.97 4.92 28.04 12.88 50.00 -100.00 -18.04 -5.06 0.00 3.73 -2.18 17.45 3.36 111.06 81.63 51.76 9.22 17.00 9.34 -17.78 -19.50 12.46 17.71 8.31 6.74 -15.50 -3.96 -6.47 15.67 17.88 -4.48 6.37 85.83 108.39 7.16 15.31 1.60 -0.70 -6.02 8.68 -4.60 79.80 4.45

*Citroën’s monthly registrations included DS until May 2015. As the Citroën result for April 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

Independent Inspections, give customers trust, in the quality of your vehicles.

Improve Trust Improve Profitability Protect your business Deliver more leads, convert more sales

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

Strong buyer demand leads to new records being set But seasonal pressures are expected to make themselves felt during May, says BCA UK’s chief operating officer, remarketing, Simon Henstock

U

sed car values rose across the board in April, according to BCA’s Pulse report, with record average monthly values achieved in the fleet & lease and part-exchange sectors. Nearly-new values also improved in April as buyer demand increased significantly in the wholesale sector.

Reflecting this demand, the headline average value of a used car rose to its highest point on record in April, improving by £317 (four per cent) to £8,155. Year-on-year, the headline figure was up by £283, equivalent to a 3.6 per cent rise.

Despite the Easter bank holidays typically heralding a slowing in the marketplace, buyer demand was strong across the range of vehicles on offer at BCA in April, reflecting an underlying confidence from the trade to acquire stock.

Average values reached record levels for fleet/lease vehicles and dealer part-exchange cars, despite buyers having plenty of choice.

The nearly-new sector – despite being relatively very small – also saw average values rise.

The better-grade cars are selling strongly and making good money, while vehicles with a high mileage or requiring work need to be priced in line with market sentiment to sell first time.

However, we are expecting seasonal pressures to make themselves felt during May as volumes rise and demand typically softens. This is very likely to put pressure on price and conversion rates for volume vendors and means sellers should pay attention to remarketing processes and disciplines in the weeks ahead.

This again underlines the importance of accurate appraisals and realistic valuations to generate buyer interest for sale stock.

A typical snapshot of condition ratings would show that less than 10 per cent of cars entered for sale are genuinely Grade 1, yet a far greater percentage are reserved at CAP Clean or above.

Unless sellers are pricing in line with condition and market sentiment, we may start to see a build-up of unsold stock across

the remarketing sector. Looking at the average price performance by model shape, values generally rose in April compared to March, with hatchbacks rising by 5.6 per cent, MPVs by 3.4 per cent and the typical spring rise for convertibles resulting in a 2.6 per cent improvement over the month. Coupes and roadsters experienced some very minor price pressure, with values falling by 0.8 per cent and 0.2 per cent respectively.

Fleet & lease car values reached record levels at BCA in April, averaging £9,899, an increase of £158 (1.6 per cent) compared to the March figure of £9,741 and the third consecutive month-on-month rise.

Retained value against original MRP

Headline average value of a used car

£8,155

(Manufacturer’s Retail Price) was broadly static at 42.1 per cent, with age and mileage steady.

Compared to April 2015, average fleet & lease values were up by £199 (two per cent), with retained value down by 0.3 of a percentage point.

Both average mileage and age when sold declined compared to 2015.

Average values for dealer partexchange cars improved for the second month running, rising by £92 (2.1 per cent) to £4,474 in April, the highest monthly value on record.

Year-on-year values remain ahead by £126 (2.9 per cent), with age relatively static and mileage declining.

Nearly-new values also improved in April, rising by £803 to £20,063. Model mix has a significant effect in this very low volume sector, as we always say.

Average value for dealer part-exes

£4,474

CarDealerMag.co.uk | 75

AUCTIONS.

Henstock AUCTION STATIONS

Changing market will sort wheat from chaff

W

BCA Wolverhampton holds auctions every Monday, Wednesday and Friday

BCA Wolverhampton gets off to a good start with successful sales Delight at opening of ‘superb and modern’ facility

B

CA Wolverhampton is officially open for business, as the former SMA centre became the second to be rebranded as part of the expanded BCA UK network of 23 remarketing locations.

BCA Wolverhampton is a modern remarketing facility, with two auction lanes and undercover viewing for 300 vehicles.

The centre is located on the outskirts of Bilston and can be reached via junction 10 of the M6.

The centre is managed by Jim Wilson, who has been with BCA for nearly 30 years and formerly managed BCA’s Walsall and Birmingham centres.

The centre staged the first in a new programme of LCV sales on April 11.

It featured a comprehensive selection of stock from Lex Autolease, UKCGR Commercial, Activa Contracts, Peugeot

UK, Hertz, Van Monster Multi-Vendor and more. A strong turnout of buyers saw an excellent conversion on the day, with plenty of activity from Live Online buyers.

BCA Wolverhampton holds auctions every Monday (LCV and general sale), Wednesday (general sale) and Friday (fleet sale).

BCA operations director Stuart Pearson said: ‘BCA Wolverhampton is a superb, modern remarketing facility that will play a key role in the expanded BCA network.

The opening sales have been very well attended, with plenty of activity from BCA Live Online buyers, generating high conversion rates and strong price performance.

‘Congratulations to manager Jim Wilson and the team at BCA Wolverhampton for ensuring these opening sale events under the BCA brand have been so successful.’

e are going to experience a potentially significant change in the market dynamics over the coming months.

Consistently strong new car sales over the last four years mean supplies of used cars across the broadest range of makes and models are more readily available at every age, mileage and condition figuration than they have been since the onset of the recession in 2008.

Used car buyers have almost accepted as the norm the fact they will have to battle and scrap for every single car. In contrast, volume vendors have generally enjoyed demand across the board, high conversions and strong values on the vehicles they remarket. As volumes rise, however, expect those market dynamics to change. Buyers will have more choice and will almost certainly become more ‘picky’.

For anyone operating in the remarketing sector, this is when the wheat is sorted from the chaff. It is one thing to sell vehicles when demand outstrips supply – another altogether when those positions are reversed.

When volumes rise, you need the capacity, the footprint and the integrated service provision to deliver orderly remarketing into a swiftly changing marketplace.

Customers need complementary services such as collection and delivery, refurbishment and preparation, appraisal and presentation that mean every vehicle has a chance to reach its potential.

Buyers want choice, accurate vehicle appraisals, good clear images and access to catalogue information well in advance of the sale. They want consistency in terms of trading environment and someone to talk to if a dispute arises, along with the knowledge they will be treated fairly. Anyone and everyone can sell the nice cars in small volumes. Only the best operators can handle the good, the bad and the ugly in volume, day in and day out, and still deliver market-leading results.

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

Online configurations hit 60,000 for Ford Edge in UK. bit.ly/fordedge99

Talented trio congratulated on becoming fully qualified Young auctioneers graduate from firm’s intensive training programme

SILVERSTONE

Very special Impreza is a knockout!

M

anheim, the only organisation in the UK with a dedicated programme for training the next generation of auctioneers, has seen three of its trainees graduate to become ‘masters of the gavel’.

Charlie Lawton (24), James Nutt (22), and Steven Ruff (25) successfully graduated from the Manheim Auctioneers’ Academy in April, following an intensive seven-month training programme that included working with experts, both from around the business and outside, to learn the art of auctioneering.

Andy Conde, general manager of Group Auctioneers at Manheim, said: ‘I am absolutely delighted for Charlie, James and Steven. They are all now fully qualified auctioneers and I very much look forward to seeing them in action soon.

‘I would like to thank all of our team members from across the business – and from organisations like RADA in Business, which provided vocal coaching – who have supported the Auctioneers’ Academy and provided us with a fantastic framework to develop our talent of the future.’

Tim Hudson, managing director of Manheim Remarketing, added: ‘It’s great to see the development of talent from within the business and I congratulate Charlie, James and Steven on their achievement.

‘Ultimately, the benefit for Manheim and our customers is that more effective auctioneers help to sell their vehicles more efficiently, for the best possible prices.’ new strip ad 3/16 Car dealer Lawton, who has been with

Fully qualified: James Nutt, above left with Charlie Lawton; below, Steven Ruff

Manheim for almost three years, said: ‘Training to be an auctioneer is what I’ve wanted to do since I first joined the company in a temporary role in 2013, and the new Auctioneers’ Academy gave me that opportunity.

‘Being told that I had passed the final assessment was the proudest achievement of my professional career. I used to be quite shy and didn’t like addressing even a small group of strangers, but now I can get up on the rostrum confidently 7/3/16 13:27andPage 1 sell vehicles to crowds of buyers

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in our auction halls.’ Nutt has also worked at the company since 2013, and added: ‘I chose to enrol in the Auctioneers’ Academy as I saw it as a great opportunity to progress my career within Manheim. I was excited about the idea of communicating with buyers from the rostrum in order to sell vehicles.

‘I gained so much confidence from the Auctioneers’ Academy, and learned how to have real presence in front of a crowd of people – helping to make a bid, rather than merely take a bid.’

Ruff, who has worked at Manheim’s Mansfield auction centre since January 2015, concluded: ‘My reason for joining the Auctioneers’ Academy was my long-held interest in auctioneering. The training has not only helped develop my abilities as an auctioneer, but also my knowledge of the job and the market, my confidence and assertiveness, and my ability to think on my feet.’

A RARE 1998 Subaru Impreza 22B STi, one of the most sought-after Japanese performance cars, will be auctioned by Silverstone Auctions on May 20.

This car has a mileage of just 2,500 miles and only one registered owner from new, the British boxer, Prince Naseem Hamed.

This very special example is one of only 400 made globally, all of which are believed to have sold in just 30 minutes, and is presented in excellent condition, offered at an estimate of £60,000 to £70,000. The famous 22B model was introduced in 1998 to commemorate Subaru’s 40th anniversary, as well as the third consecutive win in the FIA World Rally Championship.

Nick Whale, managing director of Silverstone Auctions, said: ‘We’re delighted to be offering such an iconic car in the May sale.

‘These Imprezas come to market exceptionally infrequently and very few exist in the UK. The lucky new owner will have a lot of fun driving it as well as a very secure investment.’

Purpose built 12 acre auction complex Central UK location Fixed cost buyers premium Fleet Car Sales every Monday & Thursday at 10am Collection of vehicles 24 hours a day, 7 days a week Excellent variety of weekly stock from premium sources Regular Top Car Sales. Vans, Truck & Plant every week Enclosed and heated auction halls and viewing area All new website & stock locator. On-line bidding The UK’s finest auction restaurant Call for account application

The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com CarDealerMag.co.uk | 77

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MARKET INSIGHT.

..in association with ASE-global.com

Share prices fall amid increasing uncertainty over June’s vote on EU membership It seems the markets don’t believe the growth in the industry is sustainable, says Adam Cottam

T

he uncertainty over the UK referendum on EU membership and stalling manufacturing activity have given rise to fears of weak economic growth in the UK, although the FTSE 100 remained fairly strong against this background.

Motor retail groups listed on UK exchanges have not been as robust with regard to share price, all falling in April except for Caffyns.

Generally, the UK motor industry had a strong first quarter, with March breaking records on new vehicle registrations and dealer profitability.

Transactional activity was minimal but Marshalls sold two Toyota dealerships and one Nissan site to private dealer groups. Caffyns purchased three pieces of land to continue their planned relocation of their Worthing Audi outlet.

The FTSE 100 index has recovered to its early 2016 levels but against an increasingly uncertain economic background.

The markets are extremely nervous about the upcoming UK referendum on EU membership and this has been made worse by the US’s recent comments on its stance should the UK leave the union.

Commentators are also concerned that UK economic growth is stalling, fuelled by news such as the release of poor manufacturing data for

Share price movement from January 1 to April 29, 2016

Share price movement from January 1 to March 31, 2016

Pendragon

72.7%

78.1%

Vertu

75.6%

83.1%

Lookers

75.2%

85.6%

Inchcape

86.3%

92.2%

Cambria

85.6%

96.9%

Caffyns

107.3%

107.3%

Marshall

80.8%

89.4%

April seeing activity contracting for the first time in three years.

Listed motor retail groups’ share prices performed poorly in April, with the exception of Caffyns whose share price has been robust.

It seems the markets don’t believe the growth currently seen in the industry is sustainable, even after a record-breaking first quarter in terms of new vehicles registered and dealer profitability.

While retailers don’t see the growth in new vehicle sales continuing indefinitely, underlying aftersales and used retail activity is deemed

to be in good shape suggesting the growth is maintainable even if new registrations are slow.

Financial performance There was very little in the way of financial announcements from UK listed motor retail groups in April. Pendragon released commentary on their already-available year-end results to December. Looking at the wider picture, March was a record month for new vehicle registrations, and for average dealer profitability.

Transactional activity Only a handful of transactions involving the listed groups occurred in April. As we’ve mentioned, Caffyns continued with their plans to relocate their Worthing Audi site, purchasing three pieces of land for a combined £2.3m consideration. The group is in the process of appealing a refusal for planning permission for the new location.

Marshalls disposed of three of its dealerships, two Toyota and one Nissan. Their Toyota sites at King’s Lynn and Peterborough were sold to Steven Eagell, the UK’s largest independent Toyota franchised dealer group, for £2.0m.

In addition, Marshall’s Nissan site at Bury St Edmunds was bought by A W & D Hammond Limited, for a total of circa £1.1m.

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

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RECRUITMENT.

To Infiniti and beyond! New country director starts work

APPOINTMENT

Ray Sommerville joins GardX team

RAY Sommerville is joining GardX International as nonexecutive chairman.

Sommerville has an extensive background within the automotive industry.

His experience includes 10 years with Lex Retail, whom he left as group operations director to join Quicks Group as regional director.

He took Quicks’ poorest performing division to profit through innovation and improved process.

Sommerville then went on to join Perrys Group in 2001, growing this business substantially. In 2013 an internal infrastructure he received the lifetime achievement award at the to support both retail and fleet Car Dealer Used Car Awards. sales channels. I am seriously Victor Coutin, MD of GardX looking forward to tackling this new International, said: ‘We are challenge with Infiniti. There’s a lot to absolutely delighted at be excited about.’ the appointment of such a Previous country manager Carl recognised industry leader as Bayliss has become network strategy Ray Sommerville.’

MMG careers advert_Layout director at Nissan Motor (GB).1 26/07/2012 15:29 Page 1

‘Customers must continue to receive high levels of service as volume grows’

I

nfiniti has announced that Barry Beeston, new country director for the UK, has taken up his position.

Beeston is responsible for all sales and marketing activities in the UK and will report to Francois Goupil de Bouille, vice-president of Infiniti Europe, Middle East and Africa.

Beeston moves to Infiniti from Nissan, bringing with him a wealth of experience accumulated from working in many different areas of automotive, from aftersales to regional retail sales and most recently corporate fleet sales at a board director level. He said: ‘I am very excited to be joining Infiniti at a time the company is recording significant growth, not only in the UK but across the world.

‘The introduction of the Britishbuilt Q30 earlier this year, and the

soon-to-arrive QX30, are game-changers for the company. They provide a stylish, active compact into a segment where there is a high potential for increased sales.

‘Alongside these, further new products are arriving, such as the stunning Q60 coupe, due later this year with its new 400hp V6 engine.’

Beeston, above, added: ‘As any company grows, it brings with it new challenges. We clearly need to expand our centre network, ensuring our customers continue to receive high levels of service as our volume grows.

‘We also need to further develop

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CarDealerMag.co.uk | 81

DATA FILE.

James Litton TRADER TALES

Finally, a big political issue we can agree on

T

here is always one subject in any marriage which is strictly off-limits.

Mostly, this dangerous ground relates to a former partner or perhaps sporting allegiances, but in the case of my wife and I, politics is definitely a no-fly zone.

My wife is an English teacher in a state secondary school, the location of which will never be found in one of those ‘ten most desirable places to live’ league tables you see regularly in the Sunday papers. I was born in 1978 and without question label myself as a Thatcherite child.

You can see, therefore, that when strike ballot papers appear on the hall mat or another global corporation gets pilloried for paying minimal tax, that we just agree to keep our thoughts to ourselves and keep the good people at Relate out of it.

However, I predict one day in the very near future that our political paths will cross like some once-in-a-lifetime astronomical phenomenon.

The subject that unites us is Brexit.

My wife, a champion of human rights, equality and fairness, supports the stay vote.

As a lover of money, opportunity and commercial advantage, I also will be voting to stay.

There were more than 1.5 million cars made in the UK last year. Whilst moving these plants to other parts of Europe would take years, car manufacturing represents one of the few production industries in which we are seen as a global power. If Europe breaks up as an economic entity, car manufacturers will move much further afield.

The retail motor industry also has a lot to lose.

Consumers are a fickle bunch. Big change equals uncertainty and the retail public does not like uncertainty.

Car changes will get pushed back a year. Services will be pushed back a few months. People could start using partworn tyres. Cost-saving measures will be employed until the sense of normality returns.

The cost of borrowing will no doubt rise given the likelihood of the national credit rating taking a tumble.

Given the gearing of many dealer groups, reduced demand coupled with increased borrowing costs could lead to some casualties.

Whilst immigration is often the poster child for the Brexit campaigners, there are many hard-working Eastern Europeans who are employed within our industry.

The skill and work ethic these people demonstrate are not easily replaceable. And no, this article was not paid for by any political party…

‘The retail motor industry has a lot to lose.’

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

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Coffee calamity left me totally floored

T

he saying goes ‘if the customer doesn’t know, then it can’t hurt them’. Even if the proverb doesn’t go quite like that, it makes sense when you take into consideration a dance with the devil that I had while on the dealership floor recently.

When a customer arrives at a particular car, you get the sense that they’ve already made their decision. Poking buttons, opening and closing the doors and checking boot space is part and parcel of a car purchase, but when the options list comes out, things can change.

At the premium dealership I work at, very little is given away for free. My customers in question – let’s call them Mr and Mrs John – were keen to obtain a set of floor mats. Alas, they weren’t keen to stump up the extra, and I wasn’t in a particularly budging mood.

However, Mr and Mrs John ended happily leaving the extras out, and wandered away from the dealership ready to collect their lovely – but mat-less – new car in a week’s time. It was already out on the forecourt ready for preparation, but I’d promised it would have the utmost attention paid to it before they took ownership.

I chose to volunteer myself to move the car around from the front of the dealership into the workshop. I’d also taken the time to prepare myself a coffee beforehand, and decided that I owed it to the couple to make sure the cup holders in the vehicle were in full working order. It’s a difficult job, but someone’s got to do it, right?

Now I’ve driven a reasonable number of cars in my job, but every now and again I get caught out by a new button or handbrake position. This particular car had a new style of switchgear, one that I hadn’t encountered before.

Placing the gearstick into what I believed to be drive, I pressed the accelerator and sent the car flying backwards and into a low kerb. Thankfully, there was no damage to the exterior, but my macchiato had taken on the role of skydiver, leaping heroically across the car.

With a cream interior, the stain was obvious. I did my best to clear the mess, but even the entire contents of our cleaning cupboard couldn’t help me out.

A few days later, the couple returned to collect their pride and joy.

Checking it inside and out, they appeared happy at the car’s spotless interior. They were equally impressed by the inclusion of an extra that they hadn’t seen coming – cream-coloured floor mats.

‘I’ve driven a reasonable number of cars in my job...’

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

Being female-friendly Dealers need to think carefully about the way they sell to women, says Paul Smith

D

ealerships have long known women car buyers approach purchasing decisions differently from their male counterparts, and that some femalefriendly customisation of traditional showroom layouts and sales patois might help secure more sales. There are degrees of separation here. For couples, a new car is often for joint or family use, so both parties will have input into the purchasing decision.

For family cars in particular, savvy sellers have already recognised that women often have the casting vote. Brave (or foolhardy) is the husband who decides on a shared family motor without seeking his spouse’s counsel. However if women are buying for themselves, the dynamics are different. The evidence is that dealerships could do a better job of being more female-friendly.

Good Housekeeping magazine ran a poll last year which found that 66 per cent of female readers said that car dealerships could improve in this area.

Worse, nearly half (49 per cent) found car sales staff patronising and 36 per cent felt vulnerable and lacked confidence visiting car dealerships.

And a worrying 25 per cent described the tone used by car sales staff as disrespectful.

How best to respond? Gender-specific sales targeting is worth thinking about if figures suggesting that women are claiming a higher proportion of new vehicle sales are to be believed.

Arguably in the past, the snag with attempting to do things differently for female customers was that dealers were not sure if the effort would be rewarded. Very few took the plunge to redesign dealerships or train in adjustments to sales agent/customer interactions to suit women.

However, we began to see improvements in

dealerships’ look and feel to make these places more female-friendly at the prestige end of the market more than 15 years ago.

Will this trend go more mainstream or will the focus of change in mid-market brands instead be on targeting online marketing campaigns to appeal more to women?

According to recent figures from Buyacar, women constituted the fastest-growing segment of the online-only car purchasing market last year, with the growth in the number of women buying new and used vehicles without visiting a dealership, twice that of males. Moreover, Buyacar saw a 58 per cent increase in the number of women making a car purchase online, compared to just 29 per cent of men.

Marketing in a more targeted way to women is also forcing innovations on car manufacturers.

Last year, Ford joined forces with the Home Shopping Channel to offer viewers the exclusive opportunity to purchase models from its Fusion, Escape and Edge ranges at advantageous nonnegotiable, pre-set prices which included a two-year complimentary Ford Protect Premium Maintenance Plan.

We don’t know if the automaker stumped up

any dosh for the privilege of showcasing its wares to HSN’s 95 million US viewers in prime afternoon slots, nor do we know the number of transactions closed; and although the broadcaster is open to any gender of shopper, Ford made it clear it partnered with HSN in order to reach a predominantly female market.

‘HSN offers us a unique opportunity to reach a close-knit community of women, and to provide them with a simple, meaningful car-buying experience,’ commented Ford’s US marketing director, Chantel Lenard. ‘We know our female car buyers appreciate our quality, safe, and efficient vehicles but the car-buying process can be intimidating.’

This remark illustrates both a reality and an opportunity. The scope to sell more cars to women buyers exists if some simple inhibitors can be addressed while applying some sensitivity in execution. One concern might be that, by treating females differently from males, dealerships could be accused of sexism, potentially alienating the audience they hoped to engage with. Second, by adapting the sales process to women’s supposed dislike of drawnout negotiations over price, extras and terms, dealerships might leave themselves open to accusations of gender discrimination.

Is now the time to begin thinking about how to remodel the in-dealership experience better to suit women? Or will you hard-target them with online offers; or perhaps restyle smaller-footprint dealerships in retail centres alongside high-street brands that are likely to be frequented by more women than men?

Groups will be adopting different plans but there is no doubt that change is under way.

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

Final payment facts . . .

Useful answers to some of the most common questions customers ask you

I

t’s important that dealers understand the options available to customers as they prepare to make the final payments on their finance deals.

Customers with PCPs and lease purchase agreements need to allow sufficient time to make sure things run smoothly. Here we provide the answers to your customers’ most commonly asked questions: Do all contracts end with a large lump sum?

There are three common types of car finance contract: hire purchase, lease purchase and PCP. For hire purchase contracts, each monthly instalment is set at the same amount throughout the life of the contract so there is no increase in the amount of the final payment.

However, for lease purchase and PCP finance contracts – after a set period of equal monthly instalments – customers face the prospect of a substantial lump sum payment at the end of the deal. This final payment, known as the ‘balloon’

payment for lease purchase agreements and the ‘guaranteed future value’ payment in the case of PCPs, will have been explained to the customer when they took out their contract, but it’s always helpful to get a reminder of the amount to be paid and to run through the funding options again as the end of the contract approaches.

Do customers always have to pay the lump sum? Hire purchase and lease purchase customers always have to make the final payment on their finance contract.

For PCP customers, the situation is slightly different. If a PCP customer decides that they don’t want to keep their car at the end of the contract, they can simply return it to the dealer and avoid the final lump sum. This option gives PCP customers a lot of flexibility.

What methods can customers use to fund the final lump sum? As the end of their finance contract approaches, some customers will take the opportunity to look around for a new car.

If they see something they like, they can sell their existing car privately or in partexchange to a dealer, using the proceeds to settle the final payment.

For customers who want to keep their car, there are a couple of different options. One option is to fund the lump sum out of savings.

Alternatively, the customer might opt for a bank loan, using the funds advanced to pay off the car finance.

Finally, Paragon Car Finance dealers can offer a re-financing package that sets up a new hire purchase or lease purchase deal designed to repay the final lump sum on the current finance contract and structure a new deal, matching repayments to the remaining value of the vehicle. The lease purchase option can be particularly interesting for customers with high-value cars as it allows for another balloon payment at the end of the contract, keeping monthly payments affordable.

I need a finance provider that will give me an instant lending decision Need it now?

Paragon Car Finance offers dealers direct access to our fast online application system so you can get a lending decision in seconds.

With our quick turnaround, you’ll have more time to sell cars to your customers, safe in the knowledge that they know exactly where they stand.

Get in touch with us to arrange a meeting with one of our Regional Sales Managers to see a demo.

0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/local BPCF12563 (04/2016)

CarDealerMag.co.uk | 85 BPCF12563 - Half Page Advert for Car Dealer Magazine - June.indd 4

27/04/2016 12:26

HOT PROPERTY

..in association with Rapleys LLP

When it’s good to talk Geoff Sayer explains how communication can lead to wealth accumulation ...

W

hen it comes to the professions, there’s often a deep suspicion between those who practise across different areas of expertise... at least, that’s probably the traditional view.

However, there is perhaps less room for that attitude these days. In fact, co-operation and collaboration between different groups of professional advisers is now a key driver in delivering value to operators, with readers’ businesses standing to benefit greatly as a result.

It does take a little bit of effort to reap the rewards, though. Let me give you an example.

The automotive sector is one which uses property assets as a means to facilitate the sale of new and used vehicles.

Particularly where new cars are concerned, regular works need to be undertaken to keep the showroom fresh and to enhance the customer

experience. Now, I’m pretty sure that at the time the works are planned, very few operators will be thinking about the treatment of those works in the year-end tax return for the company.

And at the outset, advice may be taken from a building surveyor or architect but the tax return may be considered months after the works have been completed, at which time a general invoice from the main contractor is presented for payment. That may well be fine, however, an opportunity will have been missed and it’s an opportunity which could result in a significant element of the cost of your refurbishment being allowed against the company tax bill.

So what is the key to unlocking this opportunity? Well, simply, a bit of collaboration and some thinking ahead.

The key issue is being able to relate various items of expenditure and work done to the

payment made by the company. In a restaurant, you’d ask for an itemised bill and the same principle applies here.

This doesn’t mean a lot of extra work.

Many projects will start with a cost plan and a specification (ie, an itemised list of materials and works), so the detail is usually there from the start. All that’s required is for the invoice to be similarly itemised so as to match as far as possible and your tax adviser will do the rest.

If that means your project manager, contractor and accountant need to have a chat, then there’s a big incentive for them to communicate effectively because thousands of pounds worth of savings on a tax bill has a habit of creating happy clients.

Similarly, you, as the happy client, have a role to play in bringing these people together. It’s good to talk!

Who is Geoff Sayer?

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

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

86 | CarDealerMag.co.uk

THE FLEET.

LATEST FROM THE FLEET...

Welcome report:

FordMondeo If you were stuck on the M4 one evening in April, blame our man...

T

ruth be told, I’ve not looked forward to driving a long-termer quite so much as I have this one.

As a kid, we were a Ford family – save a brief dalliance with Peugeot – getting through a Mk1 Mondeo, an XR2i (yes, my 51-year old dad bought an XR2i in 1990) and, later on in my youth, a Desert Violet (purple) Ford Explorer and even a V6 Ford Probe. A few years ago I took ownership of an almost brand new Mk3 Mondeo ST220 – one of my favourite ever cars – so this new Mondeo – which has replaced the Ford Focus ST we had on the fleet – is something I’ve wanted to try for a while.

It’s a lot to live up to, so perhaps it isn’t the Mondeo’s fault that I’m a little less enthused by the end of the month. The Mondeo has grown a lot since I was last in one – in fact this car is so big across the mirrors that I can’t even get it into my garage, and you can get the aforementioned Ford Explorer into my garage (if you don’t mind the fact you’ll have to stay in it). It’s lost some of the dynamism too – there’s a sense of aloofness to the steering and suspension that’s less like a Mondeo of old and more like a mid-range German premium car.

To be fair, this does make it fabulously relaxing as a long-range vehicle. The Mondeo just soaks up miles, particularly in this form with the Powershift automatic gearbox, which

seems to be the equal of the famed Volkswagen DSG for smoothness. I covered around 700 miles over the course of a week recently and unlike some cars where I’d get out and know I’ve done a long drive, I’m not really very sure where the miles have gone.

My fuel receipts have the answer to that query. Seventeen gallons of the black stuff tell me I’ve averaged around 44mpg, while the trip computer says 45.5mpg.

Take into account the fact that I’m the light right-footed member of the Car Dealer team – that’s 20 per cent better than what it was reading when I got in it – and the Mondeo doesn’t seem like our most frugal option for my legendary weekend commute...

THE KNOWLEDGE Model: Ford Mondeo Titanium TDCI Auto Price: £29,375 Engine: 2.0-litre, 6-speed automatic Power: 208bhp, 450Nm Max speed: 142mph 0-60mph: 8.1sec Emissions: 134g/km Mpg: 54.3 (combined) Mileage this month: 1,220 THIS MONTH’S HIGHLIGHT Pretending it’s an emergency vehicle and closing the M4 with it

However, it does seem to generate its own space on the roads. Much like our black ST220, it seems that people see a brand new, dark blue Mondeo estate and immediately assume it’s an unmarked police car. With the cruise control set to exactly 70mph on your GPS, an awful lot of traffic seems to simply melt away from in front of you and there’s always someone willing to let you move across into their lane. I’ve never had such a clear run home!

Bizarrely this characteristic came to the fore during the week when I was amongst the very first on the scene at a crash on the M4.

A motorcyclist and car had come together at a relatively low speed, resulting in the biker ending up in a heap in the middle of the carriageway underneath his machine.

Despite this – and the witnesses already out and attending to him – several motorists were doing their best to squeeze their way past the scene (some filming it too, of course). It turns out that all you need to close a motorway is a car that looks quite like a police car, and parking it up across the carriageway between the traffic and the stricken biker was enough to restore a bit of order before the HATOs turned up to cone it off properly.

So if you had a bit of difficulty getting out of West London that night... sorry.

by Andrew Evans (@snavEwerdnA)

CarDealerMag.co.uk | 87

THE FLEET.

LATEST FROM THE FLEET...

Second report:

Third report:

Fourth report:

KiaSportage

MitsubishiOutlander

SkodaYeti

Chris Evans didn’t seem that impressed, but there’s plenty to like about the latest version of Kia’s SUV

Decent but dull? That’s a bit unfair on WO65BBV...

A calm and collected cruise to the midlands

WITH an 800-mile round trip to Scotland on the cards, it was a good chance to get to know the Mitsubishi Outlander a bit better.

While the Outlander PHEV might be hogging the limelight, the diesel is a decent, no-nonsense SUV with the added bonus of a third row of seats that you don’t get with the hybrid. And if, like me, your job involves hundreds of miles traipsing the country’s motorways, then the diesel probably makes more sense.

The 2.2-litre diesel engine boasts 53.3mpg, and I was comfortably in the high 40s on my trip.

While the look of the Outlander has been revamped, this journey was all about what’s on the inside, where there are some real improvements. The interior has been spruced up with some chrome and gloss black detailing and the Multi Communication System has undergone a refresh, designed to make it easier to use. Mitsubishi has also added a few extra touches, like a sunglasses folder and an autodimming rear-view mirror.

Some say the Outlander is decent but a bit dull. I think it’s quietly stylish with bags of substance.

Gareth Bethell @GarethBethell

WHO remembers the Talbot/Matra Rancho from the 70 and 80s?

Am I the only one who thinks that the Yeti is its younger, betterlooking brother? (Probably.)

I always admired the rugged Rancho and even had a Dinky toy version that is probably still in my loft somewhere. One could even argue that it was ahead of its time.

Sorry, I digress.

Up until recently, all my journeys in the Skoda had been relatively short, so when I picked up the keys for a trip to Birmingham’s NEC, I did wonder how well it would cope.

Although Skoda clearly didn’t design the Yeti for long motorway hauls, it performed all day long without complaint. OK, it takes some time to get up to speed, but when it does, the 1.2 TSI engine happily cruises along. The gearbox performs as you would expect.

I agree with Sophie, who said last month that the engine ‘isn’t quite torquey enough’ but all other grumbles were minor – but I am still trying to fathom why a car with such a high specification wouldn’t have sat nav. That said, the Rancho didn’t have sat nav either!

Cliff Culver @CarDealerCliff

I’M not much of a Chris Evans fan really. Sure, I’ll be tuning in to see what all the fuss has been about when the first episode of Top Gear airs this month but I tend not to agree with much of what he says about the cars he reviews for a certain Sunday newspaper.

Before writing this piece, I read my colleague Gareth’s review of the long-term Mitsubishi Outlander he’s currently driving. It’s just to the right.

He mentions that his car been accused of being dull – and that’s exactly what Evans said about the new Kia Sportage the other week. He even dubbed it the Sunday Dullster!

I prefer the take another colleague of mine had about LD65ZYS when we chatted recently. Office manager Leslie told me: ‘I need a Sportage in my life!’ I’m with her. Sure, it’s never going to be a car to deliver heart-stopping thrills to its driver or passengers but that’s not its job. And instead of ‘dull’ I prefer ‘accomplished’.

It just has so much going for it and it’s hard to disagree with Kia’s UK boss Paul Philpott when he says it’s a ‘handsome, modern and high-quality product.’ And not for nothing did it grab a place in the top 10 best-selling new cars in the UK shortly after its arrival earlier this year.

One thing I wasn’t expecting when I grabbed the keys from Andy Entwistle, who penned the welcome report for the Sportage last month, 88 | CarDealerMag.co.uk

was that the car would be such fun to drive. That is no doubt due to the stiffer body shell, measures that have been taken to revise the suspension and a new steering system.

All this helps make Sportage even more precise and stable on the UK’s twisty country roads (there are plenty of those near Car Dealer Towers) and more comfortable and refined on highways and motorways.

The outgoing Sportage was a huge success for Kia in Europe, and even more so in the UK. In 2014, the last year for which full figures are available, Kia sold more than 96,500 Sportages in Europe, claiming a 7.3 per cent share of the sector. In the UK, the Sportage is Kia’s best-selling model, claiming close to 30 per cent of the company’s sales.

I’m sure this latest iteration of the car will only lead to that success continuing – despite Chris Evans!

Dave Brown @CarDealerDave

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: 2,101 THIS MONTH’S HIGHLIGHT Simply getting behind the wheel !

THE KNOWLEDGE Model: Outlander GX4 2.2 DI-D (man) 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: 1,602 THIS MONTH’S HIGHLIGHT Enjoying the drive through the Lake District on the way to Scotland

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: 1,088 THIS MONTH’S HIGHLIGHT Bombing up to Brum for an important business meeting

LONGTERMERS

Sixth report:

Sixth report:

Eighth report:

Eighth report:

CitroenCactus

HondaCivic Tourer

Mazda2

RenaultTwingo

She can see clearly now.. thanks to a 3 Series!

TradePlates TV has a new company vehicle

We keep saying it, but this car hates using fuel

Maybe the best things do come in small packages!

CLIMBING into the Cactus after being thrown the keys, I was reassured by its familiar technology.

The Cactus was to be my carriage to Stansted Airport, where I would leave it to jet off to (slightly) sunnier climes to test Audi’s new SQ7.

After neglecting the C4 over the bank holiday weekend, I hopped in on Monday evening to begin the drive only to find that the awkward infotainment system refused to accept the airport as a location.

Finally setting off on the journey, I found myself driving during what photographers call the ‘golden hour’. With the sun sat low in the sky, it caught the windscreen at just the right angle to illuminate all the muck on the windscreen – and then I ran out of washer fluid. My unlikely saviour came in the form of a rude BMW 3 series driver. After cutting in front of me on the M25, he started enthusiastically washing his windscreen, with a significant amount of the spray missing his windscreen and hitting mine.

The automatic wipers on the Cactus mobilised at the slightest speck of water, and I had the clean windscreen of my dreams.

Laura Thomson @lauramayrafiki

I HATE to repeat myself… but this month I’m going to anyway, since the Civic has turned out to be an even better van than I’d anticipated.

Some renovation of the TradePlates set this month meant a trip to B&Q to collect a few sheets of that ultra-sophisticated cosmetic upgrade: chipboard. Presenter Becca and I had factored in the cost of hiring a gigantic Transit to get it back to the studio, but a bit of seat origami and our five slabs of ground-up tree were safely stowed lengthways in the Honda.

In fact, it’s become our designated video truck for when TradePlates hits the road. Flipping up the bases of the back seats means even the tallest boxes can slide in cosily, and more valuable bits and pieces can be tucked out of sight in that hidden boot compartment.

It’s proving to be a really solid long-distance cruiser too. Our car even has the optional Adaptive Damper System, each setting of which seems to make no difference to the handling whatsoever, but there we go. So, nothing much to report, beyond the fact that the Civic is as practical as it was last month.

Jon Reay @jonreay

THE Mazda 2 is our undisputed fuel champion. Thrash it to within an inch of its life, and you’ll still see at least 60mpg. Although, going from a 4.0-litre twin-turbo V8 Mercedes into our resident little hatch takes a little adjusting to – and visits to the pumps are few and far between.

I recently took the little Mazda on a run up to Gatwick, and was pleased to only have to put £7 in the tank after a return trip to Portsmouth. Impressive? Just a little. It also feels much larger and composed on the motorway than its size would allow you to think – it settles down to a 70mph cruise much more easily than cars twice its size. During cornering it does tend to roll about a bit, but then it’s not a hot hatch – it’s a decent daily A-to-B commuter.

Even the infotainment system is on par with much pricier rivals, connecting easily to my phone without the merest hint of a fuss.

Something that Mercedes, it’s interesting to note, didn’t manage.

Thanks to cruise control and an engine that manages to keep revs low at higher speeds, it’s far more relaxing than you’d think.

Jack Evans @Jack Evans

BY THE looks of things, the British summer has finally arrived.

This is good news for the Twingo, which, in my opinion, is better suited to dry weather.

We all enjoy sticky Tarmac and, in the right place at the right time, the nifty Twingo is pretty handy in the corners.

Much to my delight, this was the case only a week ago when I took our speedy city car out to lunch.

My tediously boring trip to Waitrose was injected with a bit of spark. I had the windows down and the wind was breezing through my hair as we passed across the marina bridge and, well, the local chippy.

Having, of course, easily manoeuvred in and out of Waitrose’s small car park like a plug into a socket, I made a beeline for the coast and some twisty roads.

Hitting the apex and powering through the corners, I was having a glorious time in the little Twingo.

Since I hadn’t been at the wheel of my long-termer for quite some time, it was a welcome reminder that you can have just as much fun with a small engine, as you can with a big one.

Sophie Williamson-Stothert @1Sophie_W

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: 1,088 THIS MONTH’S HIGHLIGHT Being able to see where I was going!

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: 1,260 THIS MONTH’S HIGHLIGHT Saving £15 an hour on van hire thanks to that clever interior

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: 986 THIS MONTH’S HIGHLIGHT Enjoying a surprisingly relaxing and refined drive

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: 764 THIS MONTH’S HIGHLIGHT Having some fun in the sun CarDealerMag.co.uk | 89

BAGGOTT.

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

Tesla Model 3: A high level of interest... even higher levels of stress I

could use many words to describe Elon Musk, the ultra-ambitious boss of electric car specialists Tesla, but many of them have been ruled out owing to the fact he’s a multisquazillionaire with enough lawyers to tie me up in court for the rest of my working life. And to be honest, having spent many hours with lawyers recently, the last thing I want to see any time soon is another one. Especially an angry one.

Musk — these days worth an estimated $14.2 billion – has had an interesting career. He co-founded PayPal, which was eventually flogged off to eBay, in what I can only assume was the highest ever Buy It Now price ever of $1.5bn. With that money, he probably had a pretty good party, after which he looked at the world and decided he was the man to change it.

Now I’m all for a bit of ambition, and when you’ve got as many crisp notes under your mattress as Musk has, the sky is quite literally the limit. In fact, such was the might of Musk’s bank balance, the sky wasn’t quite high enough — he wanted to colonise Mars. As you do. So he set about building SpaceX, a company that aims to make space travel a reality.

With space ticked off the list, Musk got bored again and set about launching Tesla. He then went on to help start SolarCity, now a leading solar panel producer in the US, and he’s mooted the concept of Hyperloop, a high-speed transportation system that uses tubes and pressurised capsules to transport people around on a cushion of air. I can’t help thinking the man has watched too many Bond movies and now, scarily, has the capital to act them out.

Google Musk’s name and you’ll be treated to hundreds of thousands of articles – not all positive. It helps that he’s good for a quote or two and not afraid to speak his mind. In recent weeks those articles are being added to at an exponential rate – and that’s down to one thing: The Tesla Model 3.

I’m not sure if even Musk realised quite how this car would take the world by storm. No firm date has yet been announced for the car – Tesla will only suggest ‘late 2017’ — but Musk’s magic helped secure 325,000 orders for the car in a week. Yes, you read that right, 325,000 people handed over a $1,000 deposit to get themselves onto the waiting list.

Few would deny the new, affordable Tesla looks pretty cool. It’s set to cost from $35,000 — half the price of a Model S — and it’ll have a range of 215 miles, hit 60mph in under six seconds and offer space for five adults. There’s talk that despite its small dimensions, it’ll rival the Skoda Superb for legroom too, thanks to the front passengers being

Who is James Baggott?

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

able to sit further forward as the batteries will be under the floor.

Whatever finally emerges from the factory, the car industry has been left in a state of shock at this start-up’s ability to entice so many people across the world to part with cold, hard cash to get their names on a list for a car that they’ve never even sat in, let alone driven. Tesla says that if – and there’s a big if here – they sell every car that’s been reserved, the Model 3 launch will become the ‘biggest one-week launch of any product ever’.

If that isn’t impressive enough for you, take stock of the fact Tesla managed to do all this without any advertising or paid endorsements – the hype surrounding the launch was all it needed. So with $325,000 sitting in the bank the company now faces a new challenge – actually making the cars. And it’s this that’s causing Musk a big headache.

Many will be waiting for him to fall flat on his face. It’s all very easy to make promises, they say, but actually turning them into reality is a very different story. And it appears Musk is feeling the heat – at a recent press event he moaned it was more efficient making a baby than a Tesla.

Someone clearly needs to explain how babies are made, but like I said, Musk’s always good for a quote…

Tesla will need to ramp up production from the current annual tally of 90,000 cars to 500,000 a year – look at the numbers and you can see why Musk’s venture has been labelled ‘a tad ambitious’ by almost everyone, everywhere.

Tesla is currently on the hunt for engineers to help make Musk’s dream come true. While the man himself is taking things rather seriously too. On a recent press call he said his desk had been moved to the end of the production line so he can keep an eye on things. He even admitted he’s got a sleeping bag at the office for when he pulls a really late one.

And there’s nothing more dedicated than a car boss sleeping on his own production line.

I can’t imagine the stress Musk is under right now, but my guess is he won’t have to worry for too long. With that many orders in the bank he’ll be a ripe target for an ambitious company desperate to make an electric car and struggling themselves. Oh, I don’t know, maybe one based not too far away from his offices that is already sucking up all his castoff reject engineers for their own project.

The Apple i Model has a certain ring to it, don’t you think? Then maybe Musk can move on to his next project with even more money in the bank. Now that is a scary thought…

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

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