15 November 2017

 

 

 

 

• FACEBOOK TO ADVERTISE USED CARS
• BREXIT BOOST FOR FRANCHISED AFTERSALES?
• KEYNOTE SPEAKERS ANNOUNCED FOR DEALERSHIP OF THE FUTURE CONFERENCE
• UK STRONG AMONG EUROPEAN DEALERS
• UPGRADE FOR BOLTON’S HONDA DEALERSHIP
• NEW JARDINE JLR SPACE IN WOLVERHAMPTON
• WORLD NEWS – VW launches German used car finance platform
• STOCKWATCH – Drop for Inchcape
• LAUNCH DIARY – BMW’s new X2
• MONEY MATTERS – Plea to keep interest rates unchanged
• COMING UP – Thursday – Interest rate decision
• OUR BLOG – Retailers must cover all the bases

BREAKING NEWS

Facebook to advertise used cars

Facebook is pushing into the car listings space via its Marketplace section.

The move, which is happening initially in the US, is aimed at connecting buyers to cars in their localities and allows them to filter search results by year, make, model, mileage, transmission and vehicle type.

Facebook has linked with a small number of US car sales sites including Edmunds, Cars.com, Auction123, and Socialdealer. Estimated values are also shown, provided from the Kelley Blue Book.

Users have access to a chat facility, allowing them to speak directly to dealership employees via the Messenger app.

According to Facebook product manager Bowen Pan, Messenger integration is a key part of the proposition: “People have found messaging to be the most natural way for them to engage on mobile. Instead of filling in a form, people are now able to have a seamless experience and real-time conversation about a car they might be interested in before going to the next spot of visiting a lot or sending their information.”

Facebook’s Marketplace launched in October 2016 and search volume has grown three times globally since 1 January, with some 550 million people visit formal “buy and sell” groups on the site. Marketplace is also now live in more than 20 countries.

Facebook has said that Marketplace differs from other listings sites because it holds so much identity data and so it can provide a more relevant and personalised experience.

http://bit.ly/2yTQ2tp

 

DEALER DIGEST

Brexit boost for franchised aftersales?

Brexit could mean a major business advantage for authorised dealerships if the government fails to secure a ‘Right to Repair’ agreement as part of its negotiations.

A report from the IMI claimed some 40,000 independent repairers could be prevented from trading if there is no Right to Repair scheme.

The scheme allows independent repairers access to technical data necessary to conduct the work and is currently in place to ensure adequate market competition.

The IMI said that manufacturers will not be obliged to share data and information with independents if there is no agreement and without one, there could be “massive repercussions” for the market.

The institute added it was further concerned by new immigration laws, which could result of a shortage of individuals with the necessary knowledge to work in the servicing and repair sector.

http://dailym.ai/2yRUfhx&lt

 

Dealership of the Future keynotes announced

HSBC’s Simon Thomson and Jon Robbins from Dick Lovett have been announced as keynote speakers for ARN’s flagship conference, the Dealership of the Future.

The event takes place on 29 November at the Jaguar Experience, Birmingham B35 7RA.

Simon is global head of digital commerce for HSBC and his presentation is called: Treat me like you know me. It will show data, third party partnerships and digital channel capabilities can reach customers via their mobile phones.

Jon Robbins is group CRM and modern retail manager for the Dick Lovett Group. His presentation, ‘Moments that matter’ will focus on how retailers can connect with time-pressed customers and suggest different ways to reach them.

To check out the agenda and for more details including the booking form, click here or call Ros on 01572 724 687.

 

Monthly payment search for Auto Trader

Auto Trader will launch a new pricing tool which will allow car buyer sto search by monthly payment.

The new facility will go live on 20 December. Jason Biffin from Auto Trader said: “We wanted to give our customers a competitive advantage with the opportunity to promote their own offers much earlier in the buying process when consumers are making their key decisions.”

Auto Trader allows any FCA-regulated retailer to show their finance offers within their advertisements, with the monthly cost shown alongside the purchase price. Mr Biffin added those that are not FCA authorised are able to offer finance options on their Auto Trader adverts provided by trading partner, Zuto. Over 210,000 adverts on Auto Trader already include finance options, with that figure expected to increase further over the coming weeks.

 

UK strong among European retailers

British dealerships make up 10 of the top European 25 in research from analyst Aumacon.

The research covers the 100 biggest dealerships in Europe covering sales, management, ownership, group history, brands and outlets.

Clem Dickmann, Aumacon’s CEO, said: “The short time future will bring many developments in car retail. Size does matter when it comes to becoming and remain successful.

“This particular group of 100 top dealers do their ultimate best to stay in the business by improving their market position and processes. Mergers and acquisitions are common in car retail, but these groups also grow autonomously by gaining market share.”

http://bit.ly/2iJr21I

 

Upgrade for Bolton’s Honda dealership

Bolton’s Honda retailer, Swansway Motor Group, Is undergoing a £500,000 makeover, which will be completed by the end of the year.

The site, formerly Gordon’s Honda, was purchased in 2015 by Swansway’s owners, the Smyth family, who come from Bolton.

Company director, David Smyth, said: “We’ve been working hard on lots of areas, starting with re-branding used car sales, now under our Motor Match umbrella.

“We now have around 40 Motor Match used cars on display and this has led to a trebling in the number of used cars we sell.

“Now we’re looking at the environment for our customers and are completely refurbishing the showroom area. We believe that customers will appreciate the new more relaxed environment and the investment really shows how committed we are to staying in the town.”

Swansway’s franchises include Abarth, Alfa Romeo, Audi, Citroën, Fiat, Honda, Jaguar, Land Rover, Peugeot, Seat and Volkswagen, The group has more than 20 dealerships located across the North West, Midlands and North Wales.

http://bit.ly/2xv9ZTz

 

New Jardine JLR space in Wolverhampton

Jardine Motor Group is building a new showroom in Wolverhampton for its Jaguar Land Rover franchise.

Construction of the multi-million pound development is underway on former industrial land and will be completed towards the end of next year. It will include a showroom with a combined space for 18 Jaguar and Land Rover vehicles, a workshop and service area and reception.

Steve Pettyfer, group property director for Jardine Motors Group, said: “Our new dealership facilities for the Jaguar Land Rover brand will be the largest in the group.

“The showroom will provide a boost to the local economy by redeveloping an old industrial site which has sat unused for more than 10 years, as well as creating new jobs in addition to the 48 staff who will move over from Wolverhampton’s existing JLR dealership.”

Jardine is also represented in Wolverhampton with its Audi dealership. The group has in excess of 70 dealerships throughout the UK, holding franchises for some 23 manufacturers.

http://bit.ly/2lovOTe

 

WORLD NEWS

VW launches German used car finance platform

VW Financial Services has launched an online platform to grow used car sales in Germany, as the manufacturer seeks to do more credit, leasing and insurance policies.

The platform, called HeyCar, lists higher margin used cars in Germany. It already lists 50,000 vehicles and aims to triple that amount by next year. Currently some 95% of sales are transacted through the rival mobile.de and autoscout24.de platforms.

Unlike the other platforms, HeyCar, will be free of advertising and will also be opened to non-VW brand dealers. Meanwhile, through its five main brands VW, Audi, Porsche, Skoda and Seat, the VW group already accounts for about 40% of used-vehicle sales in Germany.

VW Financial Services accounted for 14% of the group’s 2016 operating profit of €14.6 billion and some pundits have suggested the new move is a signal that VW Is seeking to diversify away from diesel to boost earnings.

http://reut.rs/2gRc2yo

 

STOCKWATCH

End of week share prices

(As at market close, Friday; prices for previous week in brackets)

BCA Marketplace 199.75p (-5.75p)

Caffyns 455.00p (no change)

Cambria Auto 66.75p (+1.00p)

Inchcape 771.00p (-49.50p)

Lookers 106.50p (-1.25p)

Marshall Motor 156.00p (-6.00p)

Motorpoint Group 147.75p (-1.00p)

Pendragon 25.75p (-3.25p)

Vertu Motors 45.25p (+2.75p)

 

LAUNCH DIARY

BMW’s X2 crossover will cost from £33,980 and is available to order from mid-November.

Citroen’s new compact hatchback, C4 Cactus, launches Q1 2018.

Mercedes-Benz has announced pricing for S-Class coupé, starting from £103,715 for the S560.

Vauxhall’s Zafira Tourer now offers integrated Navi 4.0 IntelliLink Infotainment system, compatible with Apple CarPlay and Android Auto.

 

MONEY MATTERS

Plea to keep interest rates unchanged

Businesses have urged the Bank of England to keep interest rates unchanged when the decision is made this Thursday.

They say that weak rates and high borrowing could be hugely damaging and push retailers in particular into insolvency. There has been widespread speculation that a rise in now likely.

However, he British Chambers of Commerce (BCC) argued that a rate rise could be the “tipping point” for some firms’ survival. “It is pretty extraordinary, given that economic conditions are slowing, that we are talking about interest rate rises,” said Suren Thiru, a BCC economist.

http://bit.ly/2gSUMJ2

 

COMING UP

Wednesday – PMI Manufacturing

Thursday – BoE Interest Rate Decision

Friday – Halifax House Price Index

 

OUR BLOG

Retailers must cover all the bases

Where do you stand on opening hours? For those running retail businesses, it’s difficult issue to grapple with. Stay open late and for the maximum possible on Sunday boosts customer convenience and may mean an edge over the competition, but it can also incur steep costs in terms of labour.

One option may be to look at live chat, which is already something more auto retailers are now using. This can be particularly useful for potential buyers browsing cars when they get home from work or when they are on a work break.

There is no doubt that retailers need to make sure they are ready to maximise every opportunity to communicate with customers. The latest retail figures are a stark reminder of this and were disappointing to say the least, tumbling almost 0.8%.

This meant that third-quarter retail growth slowed to a year-on-year rate of 1.5%, the lowest since the second quarter of 2013.

So better use of technology combined with the most engaging and well-trained people should result in an effective suit of armour. It was interesting to read Debenhams new strategy is to take away stockroom tasks from many of its employees in customer facing roles so they could provide an improved experience.

Certainly, there is no let up in sight for those selling cars as shown by news that Facebook is now listing used cars with a small network of dealers, albeit currently only in the US. Notably, it says that use of its Messenger facility will be a vital part of the service, allowing users to speak directly to the dealers once they have spotted a car of interest.

Live chat still means investment in terms of the technology and staff training, but it increasingly for retailers wanting to keep up with the competition, it appears to be as critical as having a website.

Rachel Gordon

Editor

Auto Retail Network

 

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