Auto Retail Agenda: 3 June 2024
02 June 2024
- NFDA MANIFESTO TO LAUNCH THIS WEEK
- CAZOO CUSTOMER GETS £1k BILL AFTER COLLAPSE
- COULD WORK EMAILS BE BANNED AFTER 5PM?
- RETAILERS STILL UNDERPRICING IN-DEMAND STOCK
- KIA ACCUSES US RETAILER OF $500k FRAUD
- NISSAN: US UPTURN ON THE WAY
- STOCKWATCH: Auto Trader shares hit all-time high
- COMING UP: SMMT May new car registrations
- INSIDER: ‘HMRC IS BROKEN’
- AVERAGE TAX REFUND UP 6.1% ANNUALLY
NFDA manifesto to launch this week
The NFDA will this week launch its election manifesto for the next government. The aim is to secure support and see the next government work with the sector and offer robust support on key issues.
The NFDA will have seven key ‘asks’ from the next government. Top of the list is restimulating the private EV new car market, while overhauling the “flawed” apprenticeship levy is another target. The NFDA also wants mandated annual public chargepoint targets, and for the next government to bring down business rates.
“The next few years will be crucial for our industry,” said NFDA chief executive Sue Robinson, “and it is essential that the next government works with the sector and offers robust support on these key issues.’
In announcing the manifesto, Robinson points out that auto retailers employ 78% of the 758k people working in UK automotive, which has a turnover of £100bn.
* What would you like to see the next government do for auto retail? Let us know and we will amplify your requests!
Cazoo customer gets £1k bill after collapse
A customer who bought a car from Cazoo says she has been left with a £1k repair bill after the company went into administration. She purchased the £10k Peugeot in February and a fault was found in May, costing the four-figure sum to fix.
As she was still in the 90-day Cazoo warranty period, she reported the fault, but administrators Teneo said Cazoo was now unable to process any claims. Although she paid for an extended warranty, with The Warranty Group, the extended warranty hadn’t kicked in and therefore didn’t cover the faults.
Ellie Rylands was told she could apply to be a creditor and possibly get some of the money back, but “I suspect I’ll be at the back of the queue, and it may reach a point where there’s no money left for people like me.
“I heard really good reviews online for Cazoo and thought it was a reputable company.”
Could work emails be banned after 5pm?
Contacting staff out of hours is banned in 17 countries. The UK could become the 18th under Labour’s planned ‘right to switch off’. Alongside bans on zero-hours contracts and the practice of fire and rehire, the party will seek to introduce legislation “so working from home does not becomes homes turning into 24/7 offices”.
Portugal introduced ‘Right to Disconnect’ legislation in late 2021. Any companies with more than 10 employees can be fined up to £8,500 for contacting staff outside their normal hours of up to eight hours a day or 40 hours a week.
Labour’s own law would be modelled on rules in Ireland and Belgium, which both have much less onerous ‘right to disconnect’ legislation. They are both codes of conduct rather than formal legislation.
Retailers still underpricing in-demand stock
Around 9k retailers are advertising 70k cars in very high demand below their market average, says Auto Trader. This is eroding retailer margins and potentially costing around £35m – or £4k per retailer.
The latest data from Auto Trader shows high demand continues, with the used car market “displaying remarkable resilience, says NFDA chief executive Sue Robinson. “It’s reassuring to see cars are selling quickly, whilst retail prices remain stable.”
WORLD NEWS
Kia accuses US retailer of $500k fraud
Kia America has accused New England retailer Dan O’Brien of racketeering, fraud and related wrongdoing for a scheme that allegedly cheated the OEM out of hundreds of thousands of dollars in unearned sales incentives. Kia estimates the loss at more than $500k (£390k) between January 2019 and July 2021.
The retailer submitted hundreds of “fraudulent” retail delivery reports of purported new Kia vehicles: on-site audits at two stores in June 2021 found more than 20 vehicles on lots that previously were reported as retail sales.O’Brien’s lawyer says he will move to have the suit dismissed.
Nissan: US upturn on the way
Recovery is coming for Nissan retailers in the US who are currently sitting on 112 days of inventory – the highest of any major OEM. Nissan Americas boss Jeremie Papin says facelifted cars, products-focused advertising and supply better aligned with demand will turn things around. “We will continue to be competitive and listen to what dealers need to make sure the throughput increases.”
STOCKWATCH
Closing prices on 31 May 2024 and weekly change
Auto Trader shares hit all-time high after it reported strong full year profit and revenue results
Auto Trader Group 816.2p (+68.4p / +8.7%)
Caffyns 500.0p (n/c)
Halfords 153.6p (-0.4p / -0.2%)
Inchcape 796.0p (-26.5p / -3.2%)
Motorpoint 141.0p (-2.0p / -1.4%)
Pinewood 355.0p (+13.0p / +3.7%)
Vertu 79.7p (+1.0p / +1.2%)
COMING UP
Tuesday, BRC sales monitor
Wednesday, SMMT May new car registrations
Friday, Halifax house price index
MONEY MATTERS
Insider: ‘HMRC is broken’
An insider from HMRC says the government department has been malfunctioning for years. They describe the system to the Sunday Times as “broken, and taxpayers are suffering as a result”. Customer service is at an all-time low and an antiquated system means staff are required to manually print out and post letters to taxpayers – something that flexible working has made more cumbersome.
Average tax refund up 6.1% annually
In the 2023/24 financial year, the average taxpayer could be owed as much as £1562 by HMRC, says tax specialist RIFT. The total has increased 6.1% in the last year alone. Taxpayers can back-date claims for up to the last four years – and the average four-year refund now sits at just over £3k. The most common reason for a tax refund is for expenses incurred while working, says RIFT.
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