17 March 2019

• SHOPPING CENTRE CAR SALES EXPANSION
• JLR TRIALS ‘TO YOU’ HOME SALES
• DEMO PROTECTION OFFERS UPSELL OPPORTUNITY
• STOCK AND PRICE CARS FOR YOUR LOCAL MARKET
• AUDI TO AXE SPORTSCARS?
• BMW IN COST-CUTTING DRIVE
• STOCKWATCH – Gains for BCA, Caffyns, Marshalls
• LAUNCH DIARY – Skoda Scala, Toyota Camry hybrid
• COMING UP – Consumer price inflation, BoE interest rates
• MONEY MATTERS – £1,000 cost to Make Tax Digital
• OUR BLOG – Infiniti collapse, lessons to be learnt?

Shopping centre owner set for car sales expansion

Shopping centre owner Hammerson has claimed more than 2,000 cars were sold from its stores last year and plans to expand this business, possibly even offering service and maintenance while customers visit retail outlets.

The developer owns shopping centres and retail parks across the UK including the Bullring in Birmingham, Brent Cross in London, and Westquay at Southampton and has let space to brands such as Mercedes-Benz, Porsche, Tesla and even Rolls-Royce.

Hammerson said the draw of car stores has helped offset reduced footfall elsewhere and sees good potential growth for expansion, possibly using empty space for maintenance and MOT workshops.

It already offers test drives to potential buyers and even driving lessons for younger customers on rooftop courses at some of its centres.

Mark Bourgeois, managing director for UK & Ireland at Hammerson, said: “We expect this to be a real growth area for us over the coming years.”

JLR trials ‘To You’ home sales

Jaguar Land Rover is trialling a home sales initiative under the banner ‘To You’ where, by appointment, showroom staff go to the customer’s house or place of work.

The project is being tested by a handful of retailers and is a formalisation of a service that some retailers for the premium brand already operate, particularly for regular or more wealthy car buyers.

Commenting on the service to Auto Retail Agenda JLR’s UK managing director Rawdon Glover said: “To You is on new cars at the moment and just a small number of retailers are offering it. It’s a ‘we come to you and we go through the sales process with you’ initiative. It’s like a concierge service.”

Demo fleet protection offers upsell opportunity

A car tracking provider which already works with retail groups such as Sytner, JCT600 and HR Owen has warned retailers need to protect their demo fleets from increasing numbers of relay thefts.

AX, formerly Accident Exchange, said retailers need to look at other security apart from CCTV and points to a recent theft when 15 prestige cars were fired up and driven away in an overnight raid. It also points to the potential to upsell the security to customers.

Scott Hamilton Cooper, AX director of sales and operations, said: “We know that vehicle thefts affect our dealer partners as much as it affects the end user and the ability to recover vehicles as quickly as we have demonstrated is possible could be key to significantly reducing premium, saving excess expense and managing risk.”

Stock and price cars for your local market

Retailers stocking cars most suitable for their local market area can sell three to every two which aren’t and realistic rather than optimistic pricing from day one gives significantly faster stock turn and less discount.

At a presentation this week Auto Trader said its data can produce a local Retail Rating which blends local consumer demand within a 50 mile radius, pricing and supply. Taking a Ford Fiesta 1.25 Zetec and figures from Q4 last year and this January, it showed that in Northern Ireland which has an LRR of 65 it took 43 days to sell; in Scotland, with a rating of 99, it took 30.

It also said its data proved that cars sold within 30 days are discounted by around £150 whereas those sticking for up to 120 need more than £1,100 off to shift them.

WORLD NEWS

Audi to axe TT and R8 sportscars?

Audi’s TT and R8 sportscars may be at risk of an EV-focused product realignment as the company looks to find cash for the huge investment in electric. Company insiders say its internal combustion engine models are under review with a question mark over the sportscars. Audi will reveal its corporate turnaround plan in full on May 23.

https://bit.ly/2CllSQC

BMW in cost-cutting drive

BMW will prune its model range as cost cuts begin to bite and it focuses on building a war chest to fund investment in EVs. Announcing a drop in operating profit of almost 8%, Nicolas Peter, chief financial officer, predicted a tough year ahead and said: “In view of current developments, we intend to further broaden and significantly intensify cost-cutting efforts.”

https://reut.rs/2TBTrIJ

STOCKWATCH

Closing prices at 15 March and weekly movement

Gains for BCA, Caffyns, Marshalls

BCA 209.5p (+6.5p)

Cambria 62.5p (-1.0p)

Caffyns 395.0p (+10.0p)

Inchcape 570.5p (+2.5p)

Lookers 104.0p (+0.4p)

Marshall Motor Holdings 165.0p (+6.5p)

Motorpoint 195.0p (n/c)

Pendragon 26.6p (-0.2p)

Vertu 33.4p (-2.1p)

LAUNCH DIARY

Skoda Scala. Mid-size hatchback fitting between Fabia and Octavia. From £16,595

Toyota Camry Hybrid. Self-charging 2.5 petrol/electric. On sale from April 1, first deliveries due in July. From £29,995

COMING UP

Wednesday: Consumer price inflation index

Thursday: Bank of England interest rate decision

3 April: Auto Retail Live Profit Briefing Used Cars

MONEY MATTERS

£1,000 cost to Make Tax Digital

Complying with the Make Tax Digital policy from April 1 will cost businesses with a turnover of £1 million-plus an average of more than £1,000 in the first year.

The figure from the Federation of Small Businesses spells out average year-one cost of buying software to meet the new HMRC regulations.

It said that despite government claims the initiative will make it easier to report, only one in ten small firms believe MTD will have a positive impact on tax reporting and financial management processes; more than a third believe it will have a negative effect.

Tags: Audi, Auto Trader, AX, JLR, Santander