Thursday, April 02, 2015

Used car profits come under pressure in March

Photo of Generic Used Forecourt 620


Dealer profits on used cars came under pressure in March, according to new research
Margins were dented despite the surge in activity prompted by a new plate, said CAP Automotive.
In March 41% of dealers reported that margins were tighter than the month before.
Cap said profits were under pressure because the condition of vehicles has deteriorated as volumes increased and dealers were hit by higher preparation and refurbishment costs.
Despite higher volumes in the market just 23% of dealers described the choice of cars available as “better”.
This signals further profit erosion in the coming weeks as those cars will also need refurbishing for retail, just as consumer demand is expected to reduce after Easter.
The latest inter-dealer survey also reveals that online consumer interest increased during March more than physical visits to showrooms.
Philip Nothard, retail specialist at CAP Automotive, said: “Dealers may, on the surface, be enjoying a very successful time but the number of sales isn’t the whole story.
“The squeeze on margins is a constant complaint and the problem is fuelled by a general deterioration in the quality of the majority of cars now available in the market, which forces them to invest much of their potential profit in refurbishment,” he said.

DATED: 02.04.15

FEED: MT

Dealers told to add online finance tools after Halifax PCP launch

Photo of Halifax high strret 620


Dealers have been urged to put finance calculators on their websites or face losing business to banks launching car loan schemes.
The warning follows last month’s launch of an online secured loan package by Halifax, part of the Lloyds Banking Group, enabling car buyers to fund purchases through PCP and HP packages. The Halifax Car Plan Extra offer is restricted to the bank’s online customers and is initially only available for used car purchases although a new car finance scheme is planned.
“This is clearly a move to test the market and if successful Lloyds Banking Group could roll it out to their other brands including Bank of Scotland. Dealers should be just as concerned about Halifax’s entry into the car loan market as they are about the FCA changes,” said an industry insider contacted by Motor Trader.
“Dealers can protect themselves. If ever there was an argument needed for dealers to promote finance online with tools such as finance calculators, then this is it.”
MotoNovo Finance managing director Mark Standish also believes the threat from banks and other direct lenders is serious and urges dealers to take steps to safeguard their offerings.
“The industry should be under no illusion that as the economy improves competition from direct, high street and supermarket lenders is increasing. Nor can dealers rely upon the benefit of dealer-focused secured finance products, as the recent move by Lloyds Banking Group to take HP and PCP direct to their customer base reveals.
Standish is confident that MotoNovo’s dealer clients  will be in a good position to compete against the banks.
“Through the recent boom times, as a dealer-dedicated finance business, we have always looked ahead to anticipate changes in our market. Our driver has been to establish the dealer as the natural place for car finance. Creating a unique portfolio of digital tools and expertise has been central to this ethos”
Halifax also defended its decision to launch the scheme which could potentially conflict with dealers selling Black Horse finance, also supplied by Lloyds Banking Group.
“We remain fully committed to supporting the point of sale motor finance industry through Black Horse where we work with UK dealerships and motor manufacturers to offer competitively priced motor finance to UK end consumers for their car, bike or leisure vehicle of choice. However we have also identified that there is a need to broaden the car finance proposition for customers who prefer to interact digitally and direct with their bank and hence why we launched this new product through our Halifax challenger brand,” said a Lloyds Banking Group spokesperson.

DATED: 02.04.15

FEED: HA

0% FINANCE ACROSS ENTIRE MERCEDES-BENZ VANS RANGE





Mercedes-Benz Vans has introduced a 0% APR representative finance offer across the entire range, with a £250 deposit contribution.
The current-model Vito is available with free optional extras including metallic paint, air conditioning, upgraded wheel trims, and a driver’s comfort seat.
If a bigger van is required, the two-series Sprinter 213 CDI, an ideal tradespeople vehicle, is available with the option of a special upgrade pack.
The pack offers air conditioning, pre-wiring and module for Becker MapPilot, a Driver’s Comfort seat, wheel trims, fog lights, factory plylining and Parktronic, including electric and heated wing mirrors, worth over £3,000, for just £750.
In addition to the 0% APR representative finance offer, every new Mercedes-Benz Vans vehicle purchase comes with free 30-year MobiloVan UK cover.
Service24h is a free call-out service across the UK and Europe which comes as part of MobiloVan UK. Across the 150 Service24h roadside recovery vehicles covering the UK, there is an average response time of 55 minutes, with 85% of vehicles fixed at the roadside.
MobiloVan UK will send out a Service24h roadside assistance van, which is well-stocked with GenuineParts and manned by a Mercedes-Benz trained Technician, at no cost to the customer. Also covered are minor non-warranty roadside repairs up to £130 including VAT and recovery to the nearest Mercedes-Benz workshop if roadside repairs are not possible.
These offers from Mercedes-Benz Financial Services are available on vehicles registered by 30 June 2015.

DATED: 02.04.15

FEED: HA

WORLD PREMIERE FOR ALL-NEW LEXUS RX AT NEW YORK MOTOR SHOW




  • First appearance of the all-new RX, fourth generation of Lexus’s luxury SUV
  • Longer wheelbase, improved cabin space and higher levels of comfort and luxury
  • Introduction of Lexus Safety System+ package of advanced preventive safety features
  • Global range to include 3.5-litre V6 petrol and V6 petrol full hybrid powertrains
  • New RX F Sport to deliver sportier styling and performance features
  • UK and European model details and specifications to be announced ahead of sales launch in late 2015
The RX is the best-selling model in Lexus’s 26-year history. With more than 2.1 million reaching the road, it represents three out of every 10 vehicles the company has sold. The new fourth generation model looks to build on that achievement, with a completely redesigned, luxurious interior, wrapped in a chiselled new body with a longer wheelbase.
A large dose of Lexus’s brand DNA has been artfully incorporated into the details, things you can feel as well as see. The reimagining of the model also yields superior on-road performance and new safety technologies, including the innovative Lexus Safety System+.
Takayuki Katsuda, RX Chief Engineer, said: Our ambition has been to make a completely new statement in this segment while building on and staying true to the ground-breaking values of previous RX generations.
“Lexus’s pioneering spirit drives our creation of new technology and generates new ideas. It allows us to introduce new vehicles with leading-edge features. We are committed to bringing ‘progressive luxury’ to the world.
“I believe this new RX will not only surprise new customers, it will also delight and satisfy our loyal customers, whose high expectations will be met by many innovations.”
Details and specifications of the production model for the UK and Europe will be announced later this year.
New design
It is obvious at first glance that the new RX makes a powerful visual statement. The completely new front end features a stronger spindle grille design with a chrome-finished border and triple L-shaped LED headlamps. Together with the redesigned fog lights, this gives the new RX an elegant yet futuristic look. Muscular flares to the front wings add to the vehicle’s sporty look.
In side view, the sharp character line running from the front wings to the rear and the flowing roof line create a dynamic profile that minimises drag and reduces front and rear lift. This makes the vehicle more stable at high speed and sharply reduces wind noise. The blacked-out C-pillars create a floating roof effect. New 20-inch aluminium wheels (replacing the current 19-inch rims) can be customised with different coloured inserts, increasing the scope for customer personalisation.
The appearance of the RX’s rear has been sharpened and exudes a sense of rock-solid stability, highlighted by new L-shaped taillights that wrap around the sides of the vehicle. When illuminated, these give the car a wider, more authoritative presence, creating a brilliant glow that extends laterally from the body to the tailgate – a Lexus first.
The cabin puts the emphasis on comfort and luxury, with repositioned trim elements that create a high-class feel. Those who want extra opulence can opt for new laser-cut wood ornamentation. A large head-up display takes centre stage, while the information zone features a 12.3-inch monitor, set apart from the cockpit’s main operation zone.
The shift lever has been moved from the front of the instrument panel to make it easier to use and give the driver more space. The longer wheelbase means more leg and knee-room for rear seat passengers. The rear seats themselves can be equipped with power recline adjustment and heaters. A panoramic sunroof adds to the sense of spaciousness in the cabin.
Gen Ikeda, RX Chief Designer, said: “We designed the RX to have a high amount of excitement and strength. The longer wheelbase and larger wheel size create sporty, powerful proportions. At the same time as we have secured a highly luxurious and spacious cabin, we have kept a sleek and dynamic vehicle silhouette.”
Powerful and efficient engines
The new RX will be available (according to market) with an upgraded, more powerful 3.5-litre V6 petrol engine with a target output of 300bhp, matched to a new eight-speed automatic transmission.
The full hybrid powertrain will feature an improved, Atkinson cycle 3.5-litre V6. System output, including the electric motor, will also be around 300bhp.
Both engines have been tuned to achieve high fuel economy and low carbon emissions.
Better handling and stability
The all-new RX has been engineered to deliver car-like handling. The entire chassis has been strengthened to provide better stability and control through bends. The body structure has been made stronger, too, with extra stiffness that contributes to drastically improved handling response and to a reduction in engine and road noise levels in the cabin.
The Vehicle Dynamics Integrated Management (VDIM) is designed to recognise potentially dangerous situations and to make automatic and often transparent adjustments to ensure the car is kept under control when entering and exiting corners. All-wheel drive improves handling performance on dry and slick surfaces alike.
The fully independent suspension features front MacPherson struts and a rear double wishbone set-up. This has been tuned and reinforced to improve handling while keeping the ride remarkably smooth. Most RX versions will be available with Adaptive Variable Suspension (AVS), which electronically monitors and adapts suspension damping and steering to secure the best handling and ride according to the driving conditions.
Lexus Safety System+
The new RX benefits from significant improvements in active and passive safety provisions, in line with Lexus’s continuing focus on improving vehicle safety performance.
The improvements include a stronger body structure that raises the overall level of passive safety, and the introduction of the Lexus Safety System+, which helps avoid or mitigate collisions at a wide range of vehicle speeds.
Lexus Safety System+ is being introduced worldwide. It integrates several existing Lexus active safety technologies: the Pre-Collision System (PCS), which detects and warns the driver of potential collision risks with vehicles, pedestrians and obstacles on the road ahead; Lane Departure Alert (LDA), which triggers a warning sound if the vehicle moves out of its lane without signalling; and Automatic High Beam (AHB), which helps maintain the best forward visibility when driving at night.
The system’s multi-faceted approach to active safety makes use of a millimetre-wave radar that works with a camera to help keep the RX in its intended driving lane, via the Lane Keeping Assist (LKA) feature. These elements also support the performance of the Adaptive Cruise Control (ACC).
Higher safety levels can be secured using optional features including an Adaptive High Beam System, Panoramic View Monitor and Blind Spot Monitor.
New RX F Sport
The F Sport version of the new RX is aimed at customers seeking more excitement and performance from their luxury SUV. It will be available with both powertrains and will benefit from a number of special visual and performance features that will set it apart from other versions in the range.
The spindle grille and lower centre section of the rear bumper have a F-motif mesh. There are also new alloy wheel designs, exclusive to the model, and in the cabin there is a dedicated instrument cluster and a sports steering wheel, wrapped in perforated leather and featuring paddle shifts. Exclusive colour options and trims are also part of the package.
The new RX F Sport’s on-road performance is enhanced by an active stabiliser system which keeps the vehicle remarkably flat through corners. The Adaptive Variable Suspension (details above) is fitted as standard, further helping to keep the Lexus planted on the road. The Drive Mode Select system adds a Sport S+ mode with AVS in addition to the Eco, Normal and Sports S settings.
New RX preliminary dimensions
Overall length (mm)4,890
Overall width (mm)1,895
Overall height1,690
Wheelbase2,790
Front track1,640
Rear track1,630


DATED: 02.04.15

FEED: HA

ALL-NEW JAGUAR XF MAKES GLOBAL MOTOR SHOW DEBUT IN NEW YORK




  • All-new Jaguar XF given world debut presentation by Jaguar Director of Design Ian Callum at New York International Auto Show (NYIAS) press conference (10:15am EST)
New York, USA: The all-new Jaguar XF today made its global motor show debut in New York. Formed around Jaguar's aluminium-intensive architecture, the all-new XF will bring an unrivalled blend of design, luxury, technology, dynamic capability and efficiency to the business car segment.
Ian Callum, Director of Design, Jaguar, said: "I believe the all-new XF is the best looking car in its class. Elegant, handsome and with proportions that imbue a great sense of integrity - the all-new XF is true to the great tradition of sporting Jaguar saloons while being completely of its time."
The all-new XF's dynamic, coupé-like design combines the outstanding proportions, elegant surfaces and perfect lines which define all Jaguar cars, with a longer wheelbase, more interior space and exceptionally low aerodynamic drag.
The all-new XF range will consist of: XF Prestige, XF R-Sport, XF Portfolio, XF S. Pricing starts at £32,300.00 for XF 2.0d 163ps in Prestige specification.
The powertrain range will consist of: 163PS and 180PS 2.0-litre diesel manual and automatic; RWD, 300PS diesel automatic and RWD 380PS 3.0-litre petrol automatic.
Manufactured at Jaguar Land Rover's Castle Bromwich Plant, the all-new XF joins the Jaguar saloon car range between the XE and XJ model lines.
All-new XF SUMMARY
  • The all-new Jaguar XF: lighter, more efficient and packed with technology
  • Unrivalled refinement, dynamics and design
  • Aluminium-intensive architecture enables class leading weight: 80kg lighter than the competition*
  • The lowest CO2 emissions of any non-hybrid model in the segment: 104g/km
  • Elegant, progressive design combines short overhangs and outstanding proportions with exceptional aerodynamic efficiency: Cd 0.26
  • Segment-leading for rear seat space: row-two occupants gain 15mm more legroom, 24mm more kneeroom and up to 27mm more headroom
  • All-new 10.2-inch touchscreen infotainment system - InControl Touch Pro - offers door-to-door navigation, seamless iOS and Android connectivity, and 17-speaker, 825W Meridian digital surround sound
  • Reconfigurable 12.3-inch TFT instrument cluster features four visual themes and full-screen navigation display
  • Powertrains from 163PS Ingenium diesel and six-speed manual to 380PS V6 supercharged petrol and eight-speed automatic transmission
  • Double-wishbone and Integral Link suspension deliver exceptional ride comfort, handling, and unrivalled refinement
  • All-Surface Progress Control enables smooth, effortless drive-away on low-friction surfaces such as snow and ice - all the driver has to do is steer
  • The all-new XF offers a host of additional technology including LED headlights, a laser head-up display which delivers high-contrast colour images, autonomous emergency braking, adaptive cruise control with queue-assist, lane keep-assist, intelligent speed limiter and semi-automated parking
The all-new Jaguar XF brings an unrivalled blend of design, luxury, technology and efficiency to lead the business car segment, underpinned by class-leading driving dynamics and refinement.
The dynamic, coupé-like design is formed around Jaguar's aluminium-intensive architecture and combines the outstanding proportions, elegant surfaces and perfect lines which define all Jaguar cars, with a longer wheelbase, more interior space and exceptionally low aerodynamic drag.
The cabin is a seamless blend of contemporary luxury materials and finishes, traditional Jaguar craftsmanship and state-of-the art technology, with features such as a reconfigurable 12.3-inch TFT instrument cluster, laser head-up display and the InControl Touch Pro premium infotainment system - the all-new XF is the most connected Jaguar ever.
The 2007 XF was a radical step forward for Jaguar - and for the business car segment. Combining a sleek, coupé-like exterior and a luxurious interior, it set the class benchmark for aesthetics and driving dynamics.
Features such as the rotary shift controller, rotating air vents and phosphor blue ambient lighting set the cabin apart from the competition and made the XF a highly desirable, aspirational vehicle. It was like nothing Jaguar had ever made before, and like nothing the competition could offer. The XF went on to become the most-awarded Jaguar ever.
The all-new XF retains its predecessor's core attributes, but uses Jaguar's aluminium-intensive architecture to enable weight savings of up to 190kg - making the 163PS diesel model 80kg lighter than the nearest competitor - plus an increase in torsional stiffness of up to 28 per cent. The architecture also delivers dramatic improvements in packaging and the proportions so essential to Jaguar design.
The all-new XF is 4,954mm long: at 2,960 the wheelbase is 51mm longer than before, the front overhang 66mm shorter. Though 7mm shorter and 3mm lower than the original XF, rear seat space is class-leading thanks to 15mm more legroom, 24mm more kneeroom and up to 27mm more headroom than before. Aerodynamics are also superior: the drag coefficient drops from 0.29 to just 0.26.
The light, stiff body is also fundamental to the all-new XF's superb vehicle dynamics. Double wishbone front suspension and Integral Link rear suspension - combined with near-50:50 weight distribution - deliver the ideal balance between ride and handling.
"From an engineering perspective, our targets with the all-new XF were bound by one holistic goal - it had to do everything better, and it does.
"It offers even better dynamics, even greater refinement for the comfort of its occupants, it delivers an all-new infotainment system, and it utilises every last mm of packaging to maximise interior space, while exploiting all the weight-saving optimisation offered by our new aluminium-intensive architecture. As a driver you will notice these benefits from the moment you sit behind the wheel." 
Ian Hoban, Vehicle Line Director, Jaguar XF
Adopting Electric Power Assisted Steering (EPAS) maintains Jaguar's leadership in steering feel but also reduces fuel consumption by up to two per cent and three per cent for diesel and petrol models respectively. EPAS also enables functions such as camber compensation and advanced driver assistance systems including lane-keep assist, driver condition monitoring and bay- and parallel park-assist.
Advanced passive damper technology delivers exceptional ride quality as standard through an extra valve which reduces damping forces at low speeds. For even better control the Adaptive Dynamics system monitors body movement 100 times a second and wheel movement 500 times a second to determine the optimum damper settings for the driving conditions.
Jaguar Configurable Dynamics technology, fitted to the XF S, provides the ultimate in control and enables the driver to individually tailor settings of the dampers, steering, engine and eight-speed automatic transmission.
All-Surface Progress Control, developed for low-speed driving in adverse conditions, automatically manages the brakes and the throttle to deliver the best possible traction, enabling the car to pull away smoothly and without drama: the driver only has to steer. ASPC operates between 3.6km/h and 30km/h, and the desired speed is set by the driver using the cruise control switches.
Infotainment and connectivity is the most advanced Jaguar has ever offered. The all-new InControl Touch Pro system builds on the intuitive user interface of InControl Touch, and supports all the same features - including InControl Apps, InControl Remote and Wi-Fi hotspot - but offers a 10.2-inch touchscreen and Dual View technology which simultaneously allows the driver to see information such as navigation, while the front seat passenger watches TV or a DVD.
To enrich the experience there's also natural voice control, supporting commands such as 'more like this' for track selection, and 10GB of the 60GB solid-state drive is dedicated to media storage, enabling Gracenote album art to be displayed. Audio systems include the exceptional 17-speaker, 825W Meridian digital surround sound system.
To handle the enormous amounts of data, InControl Touch Pro features a high-performance quad-core processor and runs on state-of-the-art, ultra-fast Ethernet, a network technology which offers exceptional data transfer rates of up to 1Gbit/second. Combined, they deliver incredible graphics, fast response times and help to future-proof the system for significant upgrades in functionality over time.
To minimise driver distraction the all-new XF offers a colour laser head-up display. Compared to competitor systems, this technology is smaller, lighter, and generates high contrast images which are easier to read in strong sunlight.
Stereo camera technology enables autonomous emergency braking, lane departure warning and lane-keep assist systems. Adaptive Cruise Control with Queue Assist takes the stress out of motorway driving in stop-go traffic by tracking the vehicle in front, at a safe distance.
The traffic sign recognition system brings Jaguar's first application of an intelligent speed limiter. Once set, the system monitors speed limit signs, compares them with navigation data and, when a change in speed limit is posted, can regulate vehicle speed by either smoothly accelerating the car up to a higher limit or slowing it down to a lower limit.
The all-new XF is also the first Jaguar to offer adaptive full-LED headlights. Featuring two banks of LEDs and reflectors - one for dipped beam, the other for main beam - they generate light with a colour temperature closer to that of daylight than is achievable with Xenon lights, delivering better illumination. At the same time, energy consumption is reduced. So efficient are they that, unlike first-generation designs, cooling fans are not needed.
If the high-beam assist function is specified, the stereo camera will detect other vehicles in the distance, and the headlights will be dipped automatically as necessary to avoid dazzling other drivers.

DATED: 02.04.15

FEED: HA

ABD SURVEY: GOVERNMENT HAS FAILED TO END "WAR ON MOTORISTS





Alliance of British Drivers' members have given the thumbs down to the Coalition's record on drivers. When asked whether the Government had kept its promise to end the War on Motorists (1), 75% said it had failed and 24% said it had only partially succeeded.
Recipients cited:
  • Failure to increase the 70mph motorway limit
  • Despite promises to the contrary (2), the proliferation of speed camera usage including the decision to introduce stealth cameras onto the motorway system.
  • The continued unnecessary reduction in speed limits.
  • The increased threat of a privatised road system and road tolls.
  • No real progress on improving the condition of the roads
  • The perception that Government still sees drivers as 'cash cows'
With an election just weeks away, members were asked which party they trusted to deliver a fair deal for drivers, only 15% trusted the Conservatives, 2% trusted Labour, 1.5% the Lib Dems and 28% UKIP. Over 50% didn't trust any party to represent them.(3)

ABD spokesman Nigel Humphries said:
"The car is essential to the country's economy and the lives of millions of people, creating opportunity and increasing quality of life. However, drivers are saying loud and clear that over the last 5 years, the Government has failed to keep its promise to end the war on motorists. 
Drivers are especially angered by the continual reduction of speed limits demanded by vested interest lobby groups. Road safety should be about improving poor drivers not punishing good drivers.
With the election just weeks away and with the prospect of another close result, perhaps political parties will come to regret not doing more for the nation's 30million licence holders."

DATED: 02.04.15

FEED: HA

HPI ADDS MOT AND TAX DATA TO TRADE HPI CHECKS




Offering a clearer understanding of used vehicle costs for dealers managing their stock
Automotive technology solutions provider, HPI, is bringing dealers a new level of insight into the potential cost of vehicle acquisition and resale, with the addition of MOT and Tax information to its vehicle provenance and mileage verification services for the motor trade.  
In addition to confirming if the vehicle is Taxed or untaxed and the due date,  HPI will give dealers an overview of the vehicle's 6 and 12 month Tax rates, as well as monthly direct debit costs for 6 and 12 months, where applicable.  HPI will also confirm if a vehicle has a current or expired MOT, its expiry date or if no details are held by the DVLA.   
"The addition of MOT and Tax data, means HPI continues to bring dealers the fullest possible picture of a used vehicle, helping them understand the financial implications of investing in or part exchanging stock,"  explains Neil Hodson, Managing Director for HPI. "As margins are squeezed tighter and tighter, dealers need to take advantage of the wealth of data now available to them. By listening to the needs of used car dealers, HPI delivers the data they need to ensure they can protect their bottom line against unexpected costs and boost sales, in a tough market."

DATED; 02.04.15

FEED: HA

DEALERS REVEAL A SQUEEZE ON MARGINS, DESPITE A BUMPER MARCH




Profits on new and used car sales came under increasing pressure in March, despite the surge in activity prompted by a new plate, say the independent car information experts CAP Automotive.
Exclusive insights into business performance are shared between dealers each month in a unique survey coordinated by CAP which is then used by professionals across the motor industry to help them better understand their commercial landscape.

Despite a strong new and used car sales month in March 41% of dealers reported that margins were tighter than the month before. This signals a change on the picture a year ago, when CAP’s own research revealed that average margins had increased over the previous 12 months by £277.  

Although some dealer groups are seeing an increase in used car profit per unit, margin decline is still an underlying problem for many dealers. 

At the heart of it are a range of issues. One is that over the past 12 months there has been a decline in the condition of cars typically available for stock, as volume increases. Lower quality means higher preparation outlay at a time when workshop running costs are growing faster than retail prices. Other pressure on retained margins comes from auction fees and transport costs.

Despite March bringing an influx of fresh stock into the marketplace – due to an increase in part-exchange vehicles – only 23% of dealers described the choice of cars available as “better”.  This signals further profit erosion in the coming weeks as those cars will also need refurbishing for retail, just as consumer demand is expected to reduce after Easter.

The latest inter-dealer survey also reveals that online consumer interest increased during March more than physical visits to showrooms.

Online activity grew significantly in March for 62% of dealers, with the figure for increased physical showroom visits lagging some way behind at 51%.  This indicates that, for many consumers, the car sales activity of a new plate month sparks additional attention and interest without translating into a decision to purchase.

Philip Nothard, of CAP Automotive, said: “Dealers may, on the surface, be enjoying a very successful time but the number of sales isn’t the whole story.

“The squeeze on margins is a constant complaint and the problem is fuelled by a general deterioration in the quality of the majority of cars now available in the market, which forces them to invest much of their potential profit in refurbishment.”

DATED: 02.04.15

FEED: HA

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