DVSA Announces Changes to Theory Test

We’ve all been there, that bane of our learner years; the dreaded theory test. Considered by many aspiring drivers to be a tricky hurdle they need to overcome in the hopes of hitting the road, the UK’s Driver and Vehicle Standards Agency (DVSA) have recently announced that there will be changes to the theory test as we know it from April 14th, 2020.

Currently, learner drivers are given written case studies to read followed by five multiple-choice questions about the scenarios posed. From April 14th, those sitting their theory tests will be shown a selection of short, silent, videos before having to answer three multiple-choice questions about what they just watched.

These changes are being made following research which showed that drivers with reading and learning difficulties struggled with the written scenarios. Currently, the changes will only affect car theory tests, with tests for motorcycles, buses, lorries, and coaches remaining unchanged.

Industry experts welcome theory test changes

Driving instructors, in particular, have responded positively to the changes, as Peter Brabin, head of training at the Bill Plant Driving school said:

“There’s no doubt that the changes coming into effect are an improvement to the theory test; as whilst the majority of the examination remains unchanged, the introduction of video clips in place of written case studies puts students into more realistic scenarios akin to everyday driving experiences.

“As well as this, the implemented changes will prove far more beneficial to drivers with reading and learning difficulties, as well as those who find they learn better in visual scenarios. The improvements, while small, are more geared towards making the theory test more client-centred, leading towards longer-term understanding, rather than shorter-term revision.”

The RAC also welcomes the changes, with spokesperson Simon Williams saying:

“This is a very positive change and should make the driving theory test accessible to many more people as watching case study videos is far more reflective of real-world driving than having to read them and then answer questions.

“We know from RAC research that being able to drive is an important milestone in people’s lives as it allows them to get around more easily. This is particularly true for those who live in more rural locations.”

If you’d like to find out more about the services Click provides, then please get in touch with us on 01782 478 220 or by email using [email protected]

Margin compression still a big worry for dealers

Business costs - lead management
Squeezing profit from their vehicles while remaining price competitive is a continuing headache for dealers who are paying more for the most popular stock – small and mid-size cars – and the picture is unlikely to get much better this year, analysts say.

The headline figure of a 1.1% rise in the prices paid by dealers, making it the strongest February in eight years, suggests a very healthy market but cap hpi says the underlying situation is a bit tougher for dealers.

It says trade buyers looking for stock to put in their showrooms favoured the cheaper end of the market, with a price ceiling around £10,000, at the expense of big-ticket premium and specialist cars. City cars had the biggest jump, up 3.3%, superminis rose 1.8% and lower medium by 1.2 at the 36 months/60,000 mile point.

The contrast with more expensive cars could not be more stark. Of all the various market segments, only five recorded a drop in values; large executives fell 1.4%, executives 0.1, luxury execs 0.6, sports cars by 0.8% and supercars by 0.9.

Many retailers are reporting margin compression

Jeremy Yea, senior valuations editor at cap hpi, said:

“Vehicles in the small to medium-sized sectors remain very desirable, and highly sought after at the right age and price points of sub £10,000-£12,000.”

But he added:

“With the continuation of high retail demand, the biggest challenges that most retailers currently face are not just replenishing sold stock levels but also trying to retain workable profit margins whilst remaining price competitive.

“With current trade demand outstripping supply along with continued strengthening of pricing throughout the month, this has only compounded this issue further. Many retailers are reporting that margin compression is still one of their biggest concerns this year especially if retail advertised pricing is not increasing in line with current trade and wholesale pricing.”

If you’d like to find out more about how Click Dealer can help your business, then please get in touch with us on 01782 478 220 or by email using [email protected]

5 Social Media Ideas to Get Customers Engaging

They say that you need to be in it to win it, and social media is no different. With Statista reporting 45 million active social media users in the UK, everybody in business knows that you need to have a social media presence to succeed. Ask yourselves though, “is that enough?”

Advertising the latest vehicles for sale is a dealership’s bread and butter, but is your business really doing all that it can to engage and impress your potential customers? It’s okay if you said no, managing a business’ social media is a lot trickier than it initially seems.

Here are five of our top tips to maximise your social media management.

 

1. Encourage conversations

We all know that customers can be opinionated from time to time, but why not use that to your advantage? Hosting a poll is a great way to get your customers engaging with your business and chatting to one another.

You can even spark discussions on platforms like Twitter and Instagram by building polls directly into your posts and stories respectively. Now, customer can’t chat in your Instagram stories but what you can do is host a poll and then post the results onto your main feed to see what your followers have to say about the results.

2. Show off your web content

It’s as simple as it sounds – use your social media to share updates from your website! Did you put a new blog up? Share it! Have you recently built a new page to celebrate a certain product? Shout about it!

Social media is the perfect place to share and celebrate everything going on around your dealership. Not only does sharing your content boost your customers’ confidence in buying from you, it shows them that you’re regularly updating your website, it can also get you a few extra page views.

3. Get personal

When you’re posting from a business page it can be hard for customers to put faces to the profile, and when you’re in the automotive industry it’s all about getting to know one another and building a strong rapport, isn’t it?

Well, social media is just that: it’s social. So, make it personal! Show off your staff whenever you can by getting them involved in your posts.

4. Make use of user-generated content

If you have a happy customer, ask them if they wouldn’t mind posing for a photo. When you’re looking for a company to make a purchase from, it’s good to see the positive experiences of other customers have had there. Sharing reviews and handover pictures is a fantastic way to achieve that.

Maybe a customer shared a video of their half-term road trip and tagged you in the post. Don’t be afraid to ask them if you can share their video! The response you get might just surprise you.

5. Celebrate success

Social media is a great place to shout about your business’ success. Brag about your employees reaching milestone anniversaries, show off your showroom refurbishment, or simply give an insight into the daily life of an automotive dealership. Did a colleague pass a new training course with flying colours? Give them a digital pat on the back for all to see; your customers will love it.

Just like when you use your own personal social media accounts, customers are interested in human stories. They want to see what’s happening within your business and what visiting you might be like. While simply snapping a picture of an employee’s birthday cupcakes might not seem like much, it sends an impression to potential (and existing) customers that you’re a business that cares about its people.

 

So, the next time you go to post on social media, take a moment to think and ask yourself, “what impression are we giving to our customers?”

Or, if you’re wondering how you’ll find the time to do all of this, don’t worry! Help is at hand. Click Dealer has a team of experienced social media specialists who can manage your business’ social media on your behalf!

If you’d like to find out more about Click Dealer’s social media management services, then please get in touch.

Parking Mishaps Cost UK Motorists £1.5b Each Year

Used Car Stock
Research recently conducted by Skoda UK into our driving habits found that around 3.74million motorists in the UK caused damage to their vehicles while parking in 2019, landing them with an average repair bill of £396. When added up this comes to an eye-watering total of £1.5 billion!

As part of their research, Skoda UK surveyed 2,000 motorists with interesting insights being revealed into what many consider their least favourite part of driving- actually parking the vehicle at the end.

11% of respondents admitted that they had caused serious damage to their cars in 2019, with 40% going on to confess to having hit an adjacent vehicle in a car park with their car door as they were getting out. A further 40% revealed that they had collided with a stationary object while manoeuvring such as a tree, a lamppost, or a space divider.

Drivers were also found to kerb their wheels, on average, twice a year, causing noticeable damage to their alloys like scratches and scuffs.

Several respondents acknowledged that parking could make them see red, with 19% of drivers admitting to becoming embroiled in an argument with other motorists or bystanders. Hitting closer to home, another 14% of those surveyed revealed that an argument over parking made them temporarily stop speaking to their partner.

Little ones received a special mention in the study, as 20% of parents believed that they were being frequently distracted by children while they were trying to park.

Despite this, 73% of motorists consider themselves to be good parkers, although 53% did admit that they felt they would be unable to satisfy a driving instructor should they take their driving test again.

A spokesperson for Skoda commented:

“While many people feel confident in their parking capabilities, the numbers show motorists have forked out significant sums in the last 12 months repairing their cars from parking mishaps.
“The advanced technology on our cars means they no longer have to do the parking themselves. Driver aids… help reduce stress around parking and should see the number of parking prangs decrease so Brits won’t be hurt where it hurts most – in the pocket.”

If you’d like to find out more about how Click Dealer can help automotive dealers then please get in touch with us on 01782 478 220 or by email using [email protected]

Three-tier used van market puts sub-100,000 mile Euro 5 stock in pole position

Demand for second-hand vans is driving an exceptionally strong market which is forecast to be busier than 2019’s and it is Euro 5 units with less than 100,000 miles finding favour among independent retailers.

Manheim has put more flesh on its recent report which said LCV buying prices last month were up by around £350 on December with four out of five selling first time, and given a more precise analysis of what is happening in its auction halls.

It says there is a big difference between Euro 6 and Euro 5 vans and higher, six-figure mileages are having a major impact but all the signals point to growing demand from dealers chasing decent stock for a quick turnaround.

In line with seasonal de-fleet and replacement programmes, Manheim saw a January increase in daily rental and flexi-rent units enter its auction lanes, many being Euro 6. The average age profile was 24 months/33,000 miles and selling for £11,675. More than half (56%) sold to online buyers.

However, the strongest sales performances in terms of CAP guide prices was Euro 5, averaging 102% of the guide. Typically these were 46 months/74,750 miles and selling at £6,540. In contrast to the Euro 6 vans, Euro 5 stock was more likely to be bought by someone physically at the same with 58% going to an on-site rather than online buyer.

Refurbishment and repair costs continue to rise

Matthew Davock, director of commercial vehicles at Manheim, said:

“We are seeing a three-tier market emerging in the van sector and this is likely to set the tone for the rest of 2020. The first tier is Euro 6. De-fleet volumes will continue to steadily grow, with good quality stock and Clean Air Zone-compliant engines in strong demand. Euro 6 performs equally well in both digital and physical remarketing channels. The second tier, sub 100,000 mile pre-Euro 6 vans, are still in high demand and enjoying good performance against guide prices. However, the third tier, pre-Euro 6 vans with more than 100,000 miles, are proving more of a challenge to secure a buyer. Analysis shows, if reserved without market scrutiny, only 40% sell first time.”

He added:

“We’ve seen from the rostrum how the buyers’ appetite has changed throughout the past 12 months. Refurbishment and repair costs continue to rise and, along with the challenges of profit erosion, the number of buyers willing to take a risk on a higher mileage vehicle is certainly on the decline. In my opinion, it is mileage rather than damage which is having the biggest impact on appetite and performance.”

 

If you’d like to find out more about how Click Dealer can help van dealerships, then please get in touch with us on 01782 478 220 or by email using [email protected]

Auto Trader Reports All-Time High in Consumer Car Buying Interest

The UK’s leading automotive marketplace, Auto Trader, has reported a bumper month for car buyers visiting their site in January.

Up five percent on their previous record set in March 2019, Auto Trader recorded a whopping 58 million visitors across its various platforms.

This news shows increasing confidence in dealers being able to move stock quickly and can anticipate a positive start to the year and have reported an increase in footfall to their stores. Demand across all vehicle types is up compared to January last year, with electric vehicles in particular seeing a 110% increase in interest.

Consumer confidence is increasing

This is, in part, thanks to rising consumer confidence in the automotive market following a period of uncertainty. Further research conducted by Auto Trader revealed that 59% of car buyers in January felt more confident in their ability to their next car than buyers did in January 2019.

They also reported that vehicle prices are stabilising. While like-for-like prices have decreased slightly, the speed at which those prices are decreasing has slowed, signalling that they are more stable than in recent times.

Auto Trader’s commercial director, Ian Plummer said:

“Following the general election in December, and now that the light is starting to shine through the Brexit tunnel, it seems that the market is stabilising and hopefully will continue across Q1 and beyond.

With increased consumer confidence too, retailers have a great opportunity to convert sales this quarter, particularly when audiences are so high on our marketplace. Retailers are more confident too. Many of our retail partners have told us they’re feeling optimistic about 2020.”

If you’d like to find out more about how Click Dealer will be able to support your automotive business, then please get in touch with us on 01782 478 220 or by email using [email protected]

The Financial Conduct Authority Hits Motor Trade

Finance Options
The motor trade has again been warned to tighten up its act after the Financial Conduct Authority stepped in at two businesses this week, fining one more than £2.75 million for events several years ago and ordering another to take down online adverts.

Finance house Moneybarn, which mainly lends to sub-prime borrowers, was the first in the FCA’s sights which said it didn’t give a reasonable chance for some of its customers to clear their outstanding debt after getting into financial problems. It imposed a fine of £2.77 million.

Referring to the period between April 1, 2014 and October 4, 2017, the FCA ruled that Moneybarn did not explain or communicate the likely financial consequences to customers of missing payments in a way which was clear, fair and not misleading. More than 1,400 customers subsequently defaulted after entering into unsustainable short-term repayment plans.
Moneybarn did not dispute the facts, for which it received a 30% discount in the fine, and has voluntarily paid more than £30 million to all 5,933 customers potentially affected by these failings without requiring them to demonstrate they have suffered any financial loss.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:

“Moneybarn did not give its customers, many of whom were vulnerable, the chance to clear their arrears over a realistic and sustainable period. It also did not communicate clearly to customers, in financial difficulty, their options for exiting their loans and the associated financial implications, resulting in many incurring higher termination costs. These were serious breaches.

After discussions with the FCA, Moneybarn voluntarily paid more than £30 million in redress to customers potentially affected by its failings. The FCA gave Moneybarn significant credit for this in assessing the size of the penalty imposed.”

We will not hesitate to take action – FCA

Two days later it banned some adverts on the Rix Motor Company’s Instagram account and on three of its websites. The FCA found that representative examples of the cost of credit to the consumer were either missing or unlikely to be seen, the advert didn’t make clear whether consumers were dealing with a credit broker or a lender and the advert didn’t specify the legal name of the firm as it appears on the Financial Services Register so consumers could easily check that Rix Motors was authorised.

Under the rules, all financial promotions must be clear, fair and not misleading, including those on social media.

Jonathan Davidson, FCA Executive Director of Supervision (Retail and Authorisations), said:

“When customers are buying a car on finance it is really important that they are able to understand how much is going towards the finance and how much is being spent on the car. They always have the choice to get the finance separately, so knowing how much it costs allows them to make informed decisions about whether they are getting the best deal.

We will not hesitate to take action where we see adverts that don’t allow customers this clarity.”

Rix has now withdrawn the adverts and has been told not to breach these rules again The FCA previously raised concerns with the company about its online adverts in 2017 and 2018, which Rix addressed.

If you’d like to find out more about how Click Dealer can help your business, then please get in touch with us on 01782 478 220 or by email using [email protected]

January Sees Another Sales Boom after Sleepy December for Third Year in a Row

Car Dealer Magazine recently reported that motor retailers around the UK experienced a marginal loss for the month of December. While true, this is also the third year in a row that it’s happened – and we’re here to tell you why there’s no reason at all to panic.

We compared sales data from ClickEngage users throughout the months of October, November, December, and the succeeding January across 2017, 2018 and 2019 to see if there was any kind of pattern to this December downturn… and to our surprise, there was!

Like clockwork, dealerships have experienced a decline in sales towards the end of the year, culminating in a sharp slump in December. However, the following January then sees an increase in sales, returning to sales figures similar to those seen in October.

Consumers avoid making big purchases in December

To understand these behaviours, we must understand how our customers’ spending habits fluctuate throughout the year and how they may impact vehicle sales. December, in particular, is a tricky month to navigate for many retailers as it traditionally coincides with the holiday season.

With this in mind, it’s not unreasonable to consider that consumers avoid making big purchases in December as they have to be careful with their budgets over the festive season. In fact, insights released by online marketplace eBay, support this train of thought.

eBay found that searches for more expensive items, such as vehicles, jewellery, and household white goods, spike during January, suggesting that consumers defer making large purchases until December has drawn to a close.

Simultaneously, consumers have become accustomed to retailers hosting sales throughout January and, therefore, may be waiting to see what deals become available. In 2014, as the idea of Black Friday began to take roots in the UK’s public consciousness, retailer Argos reported flat sales in the weeks preceding the event itself. Despite a 45% increase in sales on the day, the anticipation of the upcoming sale resulted in a lull from customers in the weeks prior as they chose to wait instead of buying.

Once the festive season has passed and consumers have established what is best for them, they begin to spend again.

Not only does January bring an end to a sleepy December, it also signals the beginning of increased spending throughout the rest of the year. Like the seasons themselves, retail is cyclical, with peaks and lulls throughout the year dependent on customer behaviour.

The key to success, ultimately, is understanding that behaviour and planning for your business accordingly.

If you’d like to find out more about how Click Dealer can help your business, then please get in touch with us on 01782 478 220 or by email using [email protected]

The Hidden Benefits of Blogging for your Business

Does your website have a blog? No? Why not? While blogging might not seem like a pressing matter when you have customers pacing the forecourt, it’s a handy little tool for your dealership to have.

A blog, in its simplest form, is a regularly updated section of your website that offers editorial content to your customers. Whilst a blog might still be insightful and informational, its tone is usually more personal than your website’s main pages. Think of your blog more as an opportunity to reach out and build relationships with your potential customers with the thoughts, feelings, and findings of your staff rather than as a selling tool.

That’s not to say that blogs can’t be great sales tools, on the contrary – a blog is a fantastic sales tool! Your blog gives you the chance to tell a story, to show your customers why you are a business that they can trust and should buy from. A blog allows you to flex your industry expertise and show customers that you can walk the walk, not just talk the talk.

Will reap the SEO rewards that blogging can sow

As a business, a significant draw of implementing a blog is the natural boost that it will give to your business’ search engine ranking. A higher rank means more people finding and visiting your dealership’s website.

One of the key indicators that search engines look for when deciding their rankings is freshness.
• How often is this website updated?
• How often is the content refreshed?
• How often are its staff tending to it?
• How unique is the content?
• Are all the links up to date?

These are just some of the questions that a search engine is asking your website. The more often you add fresh content, the higher search engines will score your website.

By featuring a blog on your website and adding new content regularly, your business will reap the SEO rewards that blogging can sow. If you’re saying to yourselves, “But I don’t have time!” We hear you – planning, writing, and managing a blog is a time-consuming task, especially if content writing isn’t one of your strong suits.

So, if you’d prefer to focus your attentions on the sales floor, we can happily set up and manage your dealership’s blog for you. We have a team of dedicated content crafters here at Click Dealer who will polish your blog to perfection with their wordsmithing and SEO knowhow.

If you’d like to find out more about how Click Dealer can help your dealership to maximise its blogging potential, then please get in touch with us on 01782 478 220 or by email using [email protected]

Dealers planning software updates to stop lead leakage

Many dealers are using a simple paper or spreadsheet-based system to track and manage their leads after customers make the initial contact, potentially letting sales slip through the net.

The latest annual state-of-the-nation survey by CarGurus, its One Voice Report, reveals that more than a quarter (26%) of used car dealers still rely on pen and paper to manage leads while a further 15% are a bit more advanced but still only have a simple spreadsheet.

For those retailers in the 21st Century who digitally manage leads and track attribution, measuring where they have come from, a dedicated automotive Customer Relationship Management (CRM) tool is the most popular option with a Dealership Management System (DMS) second. Just over 10% have an internally developed CRM system, and 4.2% use a non-automotive CRM.

Wendy Harris, VP European Sales at digital portal CarGurus, said that even with some software in place, retailers find it hard to attribute sales leads to a particular source to know where their advertising and marketing spend is the most effective. However, dealers recognise this and the vast majority of the almost 40% who said they plan to upgrade their lead management systems this year say they will move to a more digital basis.

Too easy to register an interest

A growing concern, and underlining the need for a robust software system, is the quality of the leads with more than a third of dealers saying they are getting worse. Some said it is because people shop around more online and with email making it easy to contact a dealer, car buyers can research and enquire about far more cars than they used to. One dealer said:

“It’s too easy to register an interest.”

On the flip side, they say that digital lead management and market analysis means that advertising is more accurate now and online tracking has improved too. One used car supermarket, Carbase, said:

“We want all of the leads; but every lead you get, you can use some kind of attribution to trace it back and ask, quite simply, ‘does the customer actually want to talk to us?’ Then when we call or text or email them back, we’re able to work out how engaged they are.”

Wendy Harris added:

“The picture is encouraging, particularly for online sales and the digital tools to help guide buyers to the right car at the right price. However, with two-thirds of enquiries coming by phone or email, retailers need to have the right systems, tools and processes in place for 2020 to make sure there’s no lead leakage.”

 

If you’d like to find out more about you with lead management, then please get in touch with us on 01782 478 220 or by email using [email protected]