Auto Retail Agenda: 23 January 2023
20 January 2023
- RETAILERS IN CONFIDENT START TO 2023
- VERTU TARGETS CAZOO STAFF
- UK RETAIL ‘3rd LEAST CYBER-SECURE IN UK’
- RETAILER FABRICATES DISMISSAL PAPERWORK
- NFDA DISCUSSES AGENCY WITH MPs AND LORDS
- BYD FOCUSES ON GLOBAL PUSH
- GM RETAILER COMMUNITY EV CHARGING GOES LIVE
- STOCKWATCH
- COMING UP: Auto Retail Live Agency Conference
- UK CONSUMER CONFIDENCE NEARS RECORD LOW
- 5m TO BE DRAGGED INTO HIGHER RATE TAX BAND
Retailers in confident start to 2023
Both retail prices and consumer confidence have performed strongly in the first weeks of 2023, according to latest Auto Trader data exclusive shared with Auto Retail Agenda.
The average used car now costs £18,268, the highest-ever value since the Retail Price Index was launched in early 2011. This represents a 2.8% year-on-year increase.
Prices of electric cars have softened, with a 0.9% fall marking five consecutive months of decline. Even so, the average used electric car still costs £36,445. Used EV supply has also rocketed. In June, they represented 2% of all cars advertised on Auto Trader; EVs now account for more than 6% of advertised cars.
Tesla Model 3 stock levels surged 208% year-on-year in Q4, while the average advertised price fell £5,000.
Auto Trader is warning retailers the negative price adjustment of over-supplied premium models is distorting the overall picture of EV market health; Peugeot e-2008 prices rose 11% and the Citroen e-C4 rose 7.7% in January.
“The market is incredibly nuanced, said Auto Trader director of data and insights Richard Walker, “so a broad brush rarely reflects the true picture. Retailers need to resist thinking all EVs are in decline, as the data simply doesn’t support that.”
Vertu targets Cazoo staff
Vertu is urging Cazoo staff facing redundancy to get in touch because “we have so many fantastic opportunities across the UK”. There are positions with immediate start dates in sales, aftersales, accounts and more.
Recruiter Jess Saunders hopes Cazoo staff will contact her directly – and Vertu CEO Robert Forrester reposted the LinkedIn call for Cazoo staff to get in touch.
Cazoo is considering closing its Southampton customer centre barely two years after investing £1m in the premises: a consultation process with the Millbrook team is to be started. Cazoo is also consulting with staff at its Ipswich customer centre; 23 employees have received a letter advising they are at risk of redundancy.
UK retail ‘3rd least cyber-secure in UK’
The UK retail sector has the third highest number of data breaches of any UK industry, with more than 180k cybersecurity breaches in the last year alone. Only (ironically) the IT industry and finance and insurance have a worse cybersecurity record than retail.
The main cause of online security breaches can largely be put down to human error, say experts at scams.info. Employees should opt for the longest passwords possible, and not open any emails they do not recognise in order to stay safe from phishing.
* Read the latest Auto Retail Profit for more advice on how to stay safe from cybercrime. Sign up here for a free two-month trial
Retailer fabricates dismissal paperwork
Used car dealer Baytree Car Sales of Spalding, Lincolnshire dismissed an employee without notice, pay or reason, and was found to have fabricated documents to suggest a fair process was followed. An employment tribunal awarded the employee £38,230 in compensation for unfair dismissal, breach of contract and unpaid wages.
The award included a 25% uplift because the retailer did not follow the ACAS code of practice for disciplinary procedures. “Their behaviour is nothing short of reprehensible,” said the judge.
NFDA discusses agency with MPs and Lords
The NFDA “constructively discussed” with MPs and Lords the major issues retailers face from agency models at its executive meeting at the House of Lords last week. Chief executive Sue Robinson reminded politicians auto retail is a sector that employs more than 540,000 people, with a turnover of more than £200bn.
WORLD NEWS
BYD focuses on global push
Chinese EV giant BYD is embargoing on a rapid global expansion to challenge Tesla: sources say it is the EV brand’s single most important strategic focus. This includes strengthening its European push and setting up a distribution network in the US, although management has yet to give this project a final green light: US-China political tensions mean it is taking a cautious approach.
* Learn all about China’s new brands with the Auto Retail New Entrants Report
GM retailer community EV charging goes live
1 in 4 GM retailers have enrolled in the firm’s Dealer Community Charging Program which aims to expand EV charging across underserved rural and urban areas. Participating retailers are eligible for up to ten 19.1kW charging stations. The OEM aims to install up to 40k Level 2 chargers across the US and Canada, doubling the number of public Level 2 chargers.
Nearly 90% of the US population lives within 10 miles of a GM retailer.
STOCKWATCH
Closing prices on 20 January 2023 and weekly change
Auto Trader Group 583.6p (+43.8p / +7.7%)
Caffyns 500.0p (n/c)
Halfords 182.10 (-35.9p / -17.9%)
Inchcape 925.0p (+28.5p / +3.1%)
Lookers 83.7p (+3.1p / +3.7%)
Motorpoint 144.5p (-0.5p / -0.3%)
Pendragon 19.5p (+0.3p / +1.5%)
Vertu 56.8p (+1.0p / +1.7%)
COMING UP
Thursday, Auto Retail Live Agency Conference
Thursday-Sunday, NADA, Dallas
MONEY MATTERS
UK consumer confidence nears record low
Consumer confidence has fallen to -45 at the start of 2023, according to the GfK monthly index. The index for big purchases fell six points to -40.
“With inflation continuing to swallow up pay rises, and the prospects of some shocking energy bills landing soon, the forecast for consumer confidence this year is not looking good,” said GfK director Joe Staton.
1.5m to be dragged into higher rate tax band
Around 1.5m people will be dragged into paying higher-rate tax over the next five years due to chancellor Jeremy Hunt’s freezing of thresholds, according to government figures. 1.1m will be bumped up to the 40p rate and 300k will move into the 45p tax bracket for salaries over £125k.
What’s more, freezing the personal tax allowance threshold for six years will also cost the typical full-time earner, on a salary of £39,300, an extra £750 a year by the end of the decade.
Tags:
agency, Auto Retail Live, Auto Trader, BYD, Cazoo, Consumer confidence, Cybersecurity, GM, HMRC, New Entrants Report, NFDA, tax, Vertu 
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