• VERTU TO LAUNCH NEW GROUP-WIDE PRICING SYSTEM
• USED CAR PRICES IN ‘UNUSUAL’ MAY INCREASE
• SMART UK AGENCY MODEL UNDERWAY
• INDEPENDENT RETAILERS HIT BY HIGH-VALUE THEFTS
• TESLA AND EV NEW ENTRANTS COST US RETAILERS $910m
• CAR INSURERS SUE HYUNDAI KIA OVER HOT-WIRING
• STOCKWATCH: Vertu up 5.7% on £4bn turnover and second-highest profit
• COMING UP: UK unemployment
• PENSION TIPS: FILL GAPS, CHECK FOR ERRORS
• UK ECONOMY ‘STAGFLATION’

Vertu to launch new group-wide pricing system

Vertu Motors is set to implement a new group-wide used car pricing system called Vertu Insights. It will not only provide real time used car valuations but also track each dealership’s pricing against the group strategy and divisional valuations.

While local business managers will still be able to determine forecourt pricing, the new software will also be able to update prices at the press of a button.

Revealing the system Robert Forrester, Vertu CEO, said: “Obviously this means price boards on cars are gone and now we’re using QR codes which customers can scan with their mobile phones. This also helps capture customers because it directs buyers to our website.”

The new software also shows each business manager which cars are above, at or below the divisional value and flags overage stock.

Vertu Insights will be “live within 60 days”, Forrester added.

The new system was revealed by CEO Robert Forrester at the NFDA Driving Digital conference last week. Forrester also described several other systems that have led to, or are leading to, significant efficiency gains within the group.

A full report on the event will be available in the June 2023 issue of sister publication Auto Retail Bulletin.

 

Used car prices in ‘unusual’ May increase

Used car prices are up 0.6% month-on-month so far in May, latest Auto Trader data exclusively shared with Auto Retail Agenda has revealed. “This is unusual for this time of year, when prices typically dip,” said data and insights director Richard Walker.

It presents retailers with an opportunity to boost margins. “With trade values not in line with retail, this further strengthening in retail prices is providing robust margin potential.”

The May increases come after used car prices grew at their fastest pace for 17 months in April.

They are up 3.6% year-on-year.

Electric car prices have also risen in May, up 0.2%, after eight consecutive months of decline. They remain 17.3% down year-on-year but “there are early signs of EV prices beginning to level off as the supply and demand balance improves”.

 

Smart UK agency model underway

Smart has opened reservations for the new #1 small electric SUV, which will be sold through a combination of direct-to-consumer and retailer agency sales. Lease and PCP programmes are being handled by ALD, in a system that requires no paper contracts.

22 Smart retailers are currently operating the agency model, with further expansion planned.

“In combining a quick, convenient, direct-to-consumer model with the expertise and guidance of a nationwide retailer network, smart really is offering customers the best of both worlds,” said David Browne, Smart UK CEO.

He added Smart is soon to begin a tour of UK retailers to give both new and existing customers the chance to see the new #1.

 

Independent retailers hit by high-value thefts

Thieves have stolen a number of high-value vehicles from SJC Cars in Market Drayton. The raid comes days after five cars worth a total of £90k, including a Range Rover Velar, were stolen from Tern Valley Cars near Market Drayton.

On Twitter, Vertu CEO Robert Forrester sympathised with the independent retailers, adding: “Last week, a chap to tried it on us got send down in Yorks for five years!”

https://bit.ly/3O4j0x2

 

 

WORLD NEWS

Tesla and EV new entrants cost US retailers $910m

California retailers lost out on $910m (£730m) in profit opportunity in 2022 due to direct-to-consumer EV brands. It averaged $700k (£560k) in lost profit opportunity per retailer.

The EV brands make more money on each car sale, too: between $5,300 (£4,250) and $6,700 (£5,400), compared to an average franchise gross profit per new vehicle of $4,700 (£3,800).

https://bit.ly/41AnO07

 

Car insurers sue Hyundai Kia over hot-wiring

Widespread theft of older Hyundai and Kia models not equipped with an immobiliser could cost the US insurance industry up to $600m (£480m). Insurers have now filed a lawsuit and want Hyundai and Kia to reimburse them for funds paid to owners for replacement or repair of damaged or stolen vehicles.

The ease of hot-wiring Hyundai and Kia vehicles was first shown in a TikTok video last year, which went viral. It has now turned into a nationwide epidemic.

https://bit.ly/3BmRmnm

 

 

STOCKWATCH

Closing prices on 12 May 2023 and weekly change

Vertu up 5.7% on £4bn turnover and second-highest profit

Auto Trader Group 631.0p (-12.0p / -1.8%)

Caffyns 550.0p (n/c)

Halfords 198.6p (-6.4p / -3.1%)

Inchcape 775.0p (-12.0p / -1.5%)

Lookers 85.3p (-0.7p / -0.8%)

Motorpoint 133.0p (-2.0p / -1.4%)

Pendragon 17.62p (n/c)

Vertu 59.0p (+3.3p / +5.7%)

 

 

COMING UP

Tuesday, UK unemployment

Friday, GFK consumer confidence

 

 

MONEY MATTERS

Pension tips: fill gaps, check for errors

Gaps in national insurance and admin errors could see millions of pensioners miss out on the full state pension, experts have warned.

It costs £17.45 to fill in a missing week of national insurance contributions; that’s £907.20 for a year. But doing so could boost the state pension by £303 a year, or more than £6k over a 20-year retirement. Those considering finning in NI gaps are advised to contact the Future Pension Centre.

Pensioners are also urged to check for DWP errors. They were underpaid £580m due to errors by DWP in the last financial year alone. Errors mostly affect women. Those who suspect an error should contact the Pension Service but DWP says it is also proactively correcting cases and contacting those affected.

https://bit.ly/3I5rGzm

 

UK economy ‘stagflation’

Last week’s GDP figures confirm the UK economy is experiencing stagflation – economic stagnation and high inflation – says one commentator. The best hope for a return to growth is an easing of the cost of living crisis as inflation comes down. “The growth figures are running a little behind more upbeat business surveys.”

https://bit.ly/3Mqx1DY