DVLA launches new look log book

DVLA V5C form
Dealers selling a car or van from this month will have a new V5C form to help the new owner fill in after the DVLA introduced a raft of changes.

The new look log book is designed to be easier to complete whenever a vehicle changes hands and will also help the transition to digital. Previous versions in circulation will still be valid.

Externally, the main changes are that the document reference number and the name and address on the front page have moved to the top and the date of acquisition has been moved to below the document reference number so it is easier to locate.

Inside, dealers and new owners will find that the vehicle details have been rearranged to the top half of the page so there is more room to add extra fields as and when required. The Change of keeper and Change of name or address have been separated to reduce confusion and new owners can now supply contact details.

Reduces confusion

In Section 5 (Permanently exporting this vehicle for more than 12 months), the country of the export field has been added to let users provide the additional information. In Section 6 (new keeper’s slip), the name and address fields have been removed to stop the customer incorrectly returning it to the DVLA. It also helps ensure they keep the section which allows them to tax the vehicles.

There are data capture boxes throughout the new document introduced for accuracy and simplification and signature boxes have been removed and replaced with declarations in red. The document reference number has been added to each section which makes it easier to use and easy for the DVLA to move to online services.

V5CW is now serialised across the three pages that are V5C issuing sections (at the top) and the V5C is serialised on the front cover and back page that are document issuing (at the top).

The document has the Welsh version on one side and English on the other and the perforations have been changed on the last page so the only separated section is now the New Keeper slip (green slip).

For more information about how Click Dealer can help independent dealerships to increase efficiency and profitability, get in touch today via 01782 478220, [email protected] or through our contact page.

Used sector dealers more optimistic than those in new

Used Car Buyer
Dealers in the used car sector feel more optimistic than those selling new as they are more shielded from the Brexit effect in what is an uncertain market.

Cox Automotive recorded a double-digit increase in part-exchange volumes through its physical and digital wholesale channels in March. Its Manheim operation saw the number of part-exchange vehicles rise by 10% month-on-month in March and the average part-ex price was up 1.7% to £4,150. Dealer-Auction.com, Cox Automotive’ s trade-to-trade auction platform, also reported increased volume (up 8%) and the average transaction value rose slightly to £5,088.

NextGear Capital, its stock funding business, also reported an increase in average vehicle values, up 5% month-on-month to £7,958 while average holding days fell slightly, by 3 to 60.

Philip Nothard, Customer Insight and Strategy Director, said:

“March was a month of two halves in the wholesale market. We saw strong prices and demand in the first two weeks, particularly for the ready-to-retail stock, but the market was more challenging in the latter part of the month, possibly as a reaction to political uncertainty over Brexit.”

At the moment more businesses are hanging onto their cars while the issues surrounding company car tax and the effect of WLTP are still to be resolved and the government to announces its plans. As a result, the profile of the wholesale market is shifting with an increasingly older, higher mileage cars going through the channels.

Partly because of this the values of both petrol and diesel values have been pushed down but in sharp contrast, and another sign of the shift in the market, the average price of Alternative Fuel Vehicles (AFVs) hybrids and electric cars, increased by 2.3%.

Used stock turning faster than a year ago

And in a telling comment on the starts of the two sectors, Cox’s Modix survey into dealer sentiment found that 60% of new car retailers believed consumer demand was down in the key plate change March market against a year ago (the SMMT recorded a drop of 3.4% in registrations) but there was a much more upbeat feel among the used car sector and almost two-thirds of dealers said that stock is being turned faster now than last year.

Phil – formerly a dealer principal at a D.C.Cook Renault franchise – said:

“March’s new car registration figures made for disappointing reading, with the market down 3.4%. It seems clear that political uncertainty in the key plate change month had a big part to play, but private registrations have held relatively steady YTD, down just 1% year-on-year.”

“In the used market we’ve heard reports of a fall in demand in March, but dealer sentiment around days in stock suggests that this area of the market is still performing strongly.”

For more information about how Click Dealer can help independent dealerships to increase efficiency and profitability, get in touch today via 01782 478220, [email protected] or through our contact page.

Condition of Ex-Lease Cars a Concern Says Used Car Sector

Body repairs being carried out
Used car dealers trying to source stock say they are facing growing numbers of ex-lease vehicles which have been badly repaired leaving them to deal with the cost of extra remedial work before they are fit for sale.

Trade insiders say the problem is getting worse because of the growth of personal leasing in both the new and second-hand sectors. Private motorists are not as familiar with the standards of vehicle condition expected at the end of the contract as fleets or company car managers and when they do get a repair done often go for the cheapest price possible.
Paint and bodywork issues are the most common area of concern in stock coming to auction or being advertised online but the trade says electrical and mechanical faults are also being seen more often now too.

Sam Watkins, of the Vehicle Remarketing Association, said:

“Previous poor repairs are a real problem when it comes to a vehicle sale. They affect the value, they make the vehicle trickier to sell and they can lead to a delay in the sale if they need to be brought up to an acceptable standard.

“Our members are telling us that they are becoming more and more common. The issue, we believe, is being caused by the rise of PCP and PCH in both the new and used sectors. Traditional leasing customers tend to know about expectations when it comes to vehicle repair standards but private motorists are often leasing a car for the first time.”

Repaired as Cheaply as Possible

“If the vehicle is damaged, they will sometimes seek to get it repaired as cheaply as possible, which means repairs ranging from marginally sub-standard through to what can only be termed ‘bodges’ where the customers has attempted their own repair.”
She added: “In the worst cases, the delay to sale can be considerable because the car has to be sent to a specialist that has the knowledge and equipment needed to carry out the work.”

The VRA says the problem needs to be addressed at the front end of the original deal when customers taking out the initial lease are told quite clearly what standards the car needs to be in when it is returned and what their liabilities are when they sign the contract.

And even though they should be charged to fix any faults before the car is accepted back, too many are escaping through the net and going into the usual routes of disposal where used car retailers often source their stock.

Sam said:

“Really, what we need is for better communication with leasing customers to make them aware of their responsibilities in terms of maintaining the condition of the vehicle to try and stop the problem occurring at source.”

For more information about how Click Dealer can help independent dealerships to increase efficiency and profitability, get in touch today via 01782 478220, [email protected] or through our contact page.

How Increasing Your Video Content Can Help Drive Enquiries

Videography
It’s common knowledge that consumers are spending a vast amount of their time and money online. It’s more convenient, flexible, and takes less time out of their day. So in a time when they can customise, order, and pay for a vehicle online, video could be your key to standing out from the crowd.

Video can be both a selling point, but also if done poorly work to the opposite effect. The same way dealerships are made to look shiny, and sales staff suited and booted, video is your chance to leave a lasting and positive first impression. Everyone does research before committing to a purchase as substantial as buying a car, so you need to make sure that when they stop to look at a car on your website or portal adverts, it makes it onto their shortlist.

Invest In Quality

There’s no point doing this half-heartedly. It would be like washing a car before a test drive but not giving it a clean on the inside. Invest your money in a good DSLR, Tripod, Microphone, Editing Software and Videographer. If you already have someone in your team with a passion for video, ask them to create a few examples and maybe they can take this on as an extra project. But don’t underestimate how time-consuming this can be to do well.

You may prefer to trial just how effective good video content can be by hiring a freelance videographer. They’ll even have their own equipment and be an expert in using their own specific kit.

For The Benefit Of The Customer

High quality, professional looking videos are going to show any potential customers that you operate to a high standard, and at the end of the day, the video is for them. You could put up a hundred photos, but a customer isn’t going to click through every one of them. A video, they can appreciate. It only needs to be thirty seconds to a minute long and feature exterior and interior shots.

It always helps if you have someone talking to the camera or doing a voiceover – and remember to add subtitles if you’re sharing the video on social media. Help your potential customers gain as much knowledge as possible and at the same time be friendly and welcoming. If you can manage to put a smile on their face or engage their interest for the full video, it’s very likely this will turn into an enquiry.

Chris Killen, of Georgesons Car Sales, has got the right frame of mind:

“Video adverts are playing a major part in engaging today’s car buyers and it’s why we have made such a big investment in them. It’s important we serve the needs of modern car buyers and ensure they can find out all they need to about the car they are interested in buying.”

The Video Effect

Analysis of user behaviour during trials of the video adverts on Auto Trader revealed that user sessions containing video lasted 13% longer than those without. There is also a positive effect on sales with on average, the sale rate of vehicles with video, 10% higher than adverts without.

Nick King, Auto Trader Insight Director said:

“It’s clear potential customers value seeing video of a car they are interested in buying and are much more engaged in their online research. During extensive testing 57% of all videos viewed on site were rated very or extremely useful by consumers. It’s another vital way retailers can deliver transparency with car buyers that builds trust and provides the reassurance and confidence that a customer can do a deal with them.”

There you have it. Dedicate some time and money to increase your company’s video library and you’ll see results. Come up with a familiar style and theme, find a way to be memorable and don’t settle for anything low quality. Shaking handheld footage, crackling and windy audio, or poor vehicle preparation will have a negative effect on your enquiries, so make sure you commit to video fully. Research thoroughly and splash out on everything you need. Make sure to utilise Social Media channels to share your videos too. Even if they aren’t seen by direct leads, the quality of your content will cause your engagement levels to go up, and gradually grow your digital following and reach.

To find out about how Click Dealer can help you increase conversions and make it easier for you to incorporate and manage video, get in touch via [email protected] or 01782 454354. Alternatively, you can send us a message through our contact page.

Growing EV Demand Gives Dealers Sales Opportunities

EV Charging
Independents should be stocking electric and hybrid cars and vans this year to capitalise on growing demand for these vehicles as their range increases, the national recharging infrastructure improves and cities begin to roll out Clean Air Zones putting a renewed focus on cutting emissions.

Auto Trader named the all-electric Nissan LEAF, the fastest selling used car in March this year, with 2014 models taking an average of 17 days to sell and retailing at £10,500. In London, the 2016 and 2015 variants of the hybrid Mitsubishi Outlander were second and fourth fastest to sell; 2018 Toyota C-HR electric hybrids were tenth in the South East, averaging 24 days to turn.

It says it is a significant development and traders need to get behind it. Karolina Edwards-Smajda, Auto Trader’s Director of Commercial Products, said:

“An all-electric vehicle making it to the very top of the UK’s fastest selling is really quite significant and reflects the trends we’re seeing elsewhere. Not only are there record rates of adoption of AFVs in both the new and used car market, but research for our latest Market Report showed that nearly three-quarters of car buyers are considering an EV for their next purchase. Mass adoption is a way off yet, but there is clearly a growing shift in perception which will offer huge opportunities for the industry.”

Although still small in overall volume compared to diesel and petrol registration of new AFVs have been surging ahead, up 16% in Q1 to take 6% of the market and market intelligence suggests the same is now starting to happen in the used sector.

Cap hpi has already identified some pure EVs which are appreciating as growing demand outstrips the still relatively small car park of used cars available and auction houses are reporting sales – and prices – ramping up.

EV popularity is building for buyers of used cars

Speaking after its analysis showed that vehicles such as a Vauxhall Ampera, the trail-blazing Nissan LEAF, the Peugeot Ion city car and other EVs can be run for a year and then sold for a profit, Chris Plumb, Black Book editor at cap hpi, said:

“New sales of electric vehicles continue to gain market share and their popularity is building for buyers of used cars. Additionally, many towns and cities offer incentives for drivers of electric vehicles such as free charging points and parking.”

One auction house, Shoreham Vehicle Auctions, backs up cap hpi’s advice saying it has seen demand strengthening since last summer.

Alex Wright, managing director of SVA, said:

“EV numbers are now getting to the point where the used car sector is starting to see higher volumes passing through auction and the entire used industry must be prepared for that. This is our future, and the remarketing industry needs to keep pace in providing the service levels for EV that customers have come to expect from petrol and diesel used cars.”

For more information on how Click Dealer can help your dealership to improve efficiency and increase profitability, get in touch today via [email protected], 01782 478220 or through our contact page.

MOT Training Workshops Take Testers Through New Syllabus

Mechanic
The RMI is running a series of regional workshops starting this month to take technicians through the revised syllabus for the 2019/2020 MOT Tester Annual Training.

As before, the pass mark remains at 70% and the course is designed to deepen technician’s knowledge and continue with Continuous Professional Development (CPD). Tickets cost £70 + VAT and places are limited to 40 per event.

The topics covered include updates to testing standards since the introduction of EU Directive 2014/45, the introduction section of MOT Tester Manual, areas of concern such as tyres, lighting, the driver’s view, suspension and brakes and use of the MOT Testing Service to improve Test Quality Information including TQI data and to update user profile details.

Train in Your Own Time

As an alternative, the RMI has its workbooks which allow users to train in their own time. These have login details for the online assessment and a form to sign and record your training and keep on file. This option is also available for class 1 & 2 vehicles (motorcycles).

RMI Academies provide classroom-based training sessions at each training venue where testers can complete their three hours of training and Annual Assessment in one half-day session. Enhanced courses are also available there to take testers beyond the minimum three hours needed, covering the implementation of EU Directive 2014/45.

Garages can also buy the RMI’s e-learning packages for class 4 & 7 and class 1 & 2 vehicles. These are straightforward to use and contains everything required by DVSA in one place. The platform contains knowledge tests as well as training documents and allows you to keep a record of your training online.

The RMI has also restarted its on-site training service. This gives MOT testers face-to-face training for up to six testers at a time and is held at the garage’s premises.

The Regional Sessions are as follows:

  • Tuesday 30th April – Bristol
  • Wednesday 8th May – Nottingham
  • Tuesday 28th May – Launceston
  • Tuesday 2nd July – Crawley
  • Tuesday 16th July – Peterborough
  • Tuesday 10th September – Oakham
  • Tuesday 17th September – Bridgend
  • Tuesday 15th October – Hemel Hempstead
  • Tuesday 12th November – Bury St Edmunds
  • Tuesday 26th November – Havant
  • Tuesday 7th January 2020 – Bristol

The topics for 2019/20 are:

  • Updates to testing standards since the introduction of EU Directive 2014/45
  • Introduction section of MOT Tester Manual
  • Highlighted areas of concern including Tyres – Lighting – Driver’s View – Suspension – Brakes
  • Use of the MOT Testing Service to improve Test Quality Information including TQI data and to update user profile details

For more information on how Click Dealer can help your dealership to improve efficiency and increase profitability, get in touch today via [email protected], 01782 478220 or through our contact page.

Diesel Climbs Back into Favour in Used Car Market

Diesel
Market sentiment in the second hand car sector is turning back towards diesel with trade sources indicating that both demand and prices are rising.

A report from cap hpi says a large influx of three-year old diesels returning off 2016 PCP contracts will push up volumes of stock but rather than depressing values, says it expects this to be balanced by consumer demand with buyers less likely to be bothered by company car tax issues and more concerned about diesel’s better fuel economy.

It said: “There will be an increase in supply of used diesel cars coming onto the market until 2020, as a result higher registration volumes up until 2017. However we expect demand will meet this supply, unless there is widespread implementation of city charging zones for diesel cars in this period, or significant government legislation changes affecting the running costs of diesel cars. We do not consider either of these actions to be likely.

Used Diesel Values Hold Up

“Contrary to the new car market where diesel share has declined sharply, used diesel values have continued to hold up well as demand has continued to meet supply.”

Remarketing specialist, Autorola, says its records show a 5.6% rise in diesel values during Q1 to an average of around £13,250, the highest Q1 figure since 2015. Prices rose by £704 despite an average quarterly mileage increase of 639 miles to 28,068.

Jon Mitchell, Autorola UK’s group sales director, said: “Demand for diesel has been very strong across the board, everything from Focus to SUVs, resulting in a strong quarterly price performance.”

New Challenges

The used car market generally has been skewed by the impact last year of WLTP on the new car sector and fleets holding onto their cars for longer than usual while industry waits to see how Brexit plays out. It is set to be a very competitive year though as big franchised groups try to drive more profit from extra second hand volume to offset the likely slowing in the new car sector and a squeeze on their margins.

James Tomlinson, Chairman of the National Association of Motor Auctions, said: “The used car market has generally performed in line with our expectations in the first quarter of 2019. Values have remained stable, and there has been a steady stream of buyers bidding competitively across all market sectors, both at auction and online. We are expecting this buoyant market to continue into Q2.”

For more information about how Click Dealer can help to increase your dealership’s stock turn and profitability, get in touch today via [email protected], 01782 478220 or via our contact page.

Why Dealers Need to Take Advantage of Google My Business

A fully optimised Google My Business listing is the cornerstone of local SEO. 88% of consumer local business searches on a mobile device either call or visit the business within 24 hours.

The information in this listing will most likely be available on your website, but Google My Business indexes the content you provide for consistency across Google Search and Maps. When used correctly, Google My Business is a powerful tool that can increase your revenue and provide valuable insights about your customers.

Making the Most of Your Listing
Click through statistics for the first five pages of Google search results

Approximately 80% of all searches happen on Google, that’s 3.5 billion every day. Even more staggering is the fact that most people don’t get past the first page of search results. Therefore, getting your business on that first page is crucial to get the most amount of traffic to your website.

While there are other ways to appear on the first page, Google My Business is a free service and helps you; Control, index and display business information, interact with potential customers and manage their reviews and gather insights regarding how your customers are arriving on your site amongst other things.

How to Optimise Your Listing

After you’ve verified your business, it’s worth spending some time filling out your profile. The more information you can include the better. Everything from your telephone number, email and attributes such as customer toilets or an indoor showroom should be included. Remember to periodically check your listing to ensure your details are up to date.

Keep on Top of Reviews

Reviews are a ranking factor in GMB listings, and a good average review score will help you to increase your chances of featuring in the all-important ‘three pack’ or the top three results for local searches. Google themselves have said that “more reviews and positive ratings will improve a business’s local ranking”.

Negative reviews can be annoying, but they should always be taken seriously, and you should try and placate the unhappy customer. It can be tempting to retaliate with an angry message, however this will only make you look unprofessional and make their review more credible.

Use Posts to share Links and Events

Google Posts are like social media posts that appear on your Google my Business listing after a Google search. They can include an image or a link to another page or website too. These posts are ideal if you’ve got an event on; you can advertise the date and time along with a link to the registration page. If you’re including an image on your post, it’s important to test the post a few times to ensure the image doesn’t get cut off on different platforms like Maps or mobile devices.

Track Interaction Levels

Once you’re set up, you’ll then get monthly insight emails from Google, breaking down the performance of your local listing. It’ll display key details like how many views your listing gets, how many click through, ask for directions or call from the listed number. This will give you a clear indication of how strong your listing really is.

It’s Free!

Google My Business is a great way to boost your local SEO without spending a penny. The majority of consumers who search for local businesses will visit them within 24 hours. So, having your business at the top of the list will give you the best chance of turning these consumers into customers. Remember to monitor your performance and see just how much traffic you receive as a result of this free feature!

To find out more about our in-house automotive SEO services, email [email protected], call us on 01782 904 715 or alternatively, you can message us via our contact page.

Revhead Ramblings: Why Do We Obsess over Touchscreens?

Dashboard
We have a weird obsession with making everything touchscreen; computers, fridges and juicers are just a few items that have been complicated for no reason.

I’m not saying every touchscreen is bad. Smartphones are wonderful, the self-ordering screens at fast food restaurants make the ordering process quicker whilst hiding my shamefully big orders in the process.

Do Cars Need a Touchscreen?

I changed my car at the end of January and I was genuinely looking forward to ditching my aux cable in favour of a cool looking touchscreen with Bluetooth. Three months down the line and I’m already bored with it. Everything works as it should, my phone instantly connects, and everything sounds great, but trying to use anything other than my steering wheel controls on the move is a nightmare.

Every prod at the relatively large screen requires 100% concentration; not ideal when I’m meant to be watching the road. Even once I’m fully immersed in the screen, nine times out of ten I hit the wrong button. Regardless of whether it’s my chubby fingers or an uncalibrated screen, it’s horrendously frustrating!

They’re Advancing at a Snail’s Pace

People love using their iPhone for everything, so why wouldn’t they love tapping away at their screens? Perhaps because nearly every infotainment system is slower than a 1990s games console. It’s true in my golf and it’s true in a six figure McLaren. If we’re spending such large amounts of cash on our cars, is it too much to ask to have software from this century? Maps usually load by the time you’ve reached your destination and after 10 consecutive song skips my VW likes to throw a strop.

BMW Have Got the Right Idea

While their arrangement is still liable to less than desirable loading speeds, their iDrive system has a physical control on the centre console. This makes gliding through menus effortless and with some practice your eyes will barely leave the tarmac. While inputting an address is slightly more time consuming, it’s a small price to pay.

They’re Still in Demand

It’s easy to see why manufacturers are so eager to push this digital craze. A touchscreen gives the cabin a wow factor but is that worth sacrificing practicality and safety? Mercedes’ MBUX system seems to be a happy medium, while it does give you the option of a touchscreen, there’s also an easy to use trackpad to make inputs on the move easier and more precise; I feel like I can live with that compromise.

 

 

Dealers Demand Better Integration From Lenders

Parked Cars
Dealers are demanding a better online service from finance providers as they themselves look to drive more sales and profit from their used car stock in the face of a slowing new car sector.

Lenders are increasingly being told there must be a higher level of integration with the dealer’s online facility so the potential buyer can have a seamless journey from choosing a car displayed on the retailer’s website through to being approved for, and securing, finance for the purchase.

They also have to be more open to online buyers as there is some evidence that lenders are more reluctant to approve an online application than one being negotiated face-to-face in the showroom.

One lender, Glasgow-based Startline Finance, said providers need to adapt to a changing market as sales increasingly move online and retailers try to squeeze more volume and margin from used sales.

Paul Burgess, CEO, said: “The speed of this development has been really noticeable and is probably indicative of the way in which dealers are quite suddenly taking much more seriously the need to offer motor finance online.

“We have a number of customers who specialise in the mainstream used car market who are having quite a big drive towards maximising the potential of online sales, often based around particular models or types of car at certain price points with PCP. These dealers want their lenders to be able to make the whole process as slick and easy as possible while still maintaining high levels of service and compliance.”

Paul said some lenders are more wary of online application than a `live’ one, adding: “This is something that we hear both anecdotally from dealers and from other lenders, that the kind of customer who would be approved if they are sitting across the desk from you is quite often turned down for an online application.

“To some extent, it is understandable – online is a more physically remote process than providing finance for a customer in a showroom, the profile of applicants is often different, and some lenders are nervous. However, it is also indicative of a slightly old-fashioned attitude to digital business and there is no doubt that some dealers find it very frustrating.”

Startline has seen Q1 2019 growth of more than 20%. Last year it doubled its headcount to around 80 people and last month announced it is creating a further 50 jobs.

For more information about how the independent dealership performance partners, Click Dealer, can help your dealership to become more profitable, get in touch today on [email protected], 01782 478220 or via our contact page.