00:50
Jon, have I told you I'm addicted to Carwell's auctions?
00:54
You might have mentioned it, yeah.
00:57
Well, they're online six days a week. They're getting 20,000 fresh vehicles in every month.
01:03
It's actually one of my best sources of quality stock. Listings have got plenty of
01:08
photos, service history and background checks for peace of mind. And you can pay sellers
01:13
in a click with Carwell wallet. They even transport your car with built-in protection
01:22
Well, that's more than you'll ever need.
01:24
Exactly, Jon. So, dealers, if you're not on Carwell, you really should get in on the auction.
01:31
See what I've done, Jon.
01:33
Anyway, to find out more, sign up for free at carwell.co.uk slash partners slash auctions.
01:41
Welcome back to the Car Dealer Podcast, where we pick our favourite stories of the week and
01:51
ask an industry guest to choose which were the best.
01:54
I'm Jon Ray and joining me this week, it's only James Baggart.
01:59
James, it's new with you.
02:02
What's new with me, Jon?
02:03
Hello. Nice to see you.
02:05
Yeah, nice to see you.
02:07
What's new with me?
02:07
Lots of stuff been going on.
02:09
I've been spending most of my week, Jon, on the Car Dealer Podcast live preparation, which
02:14
is, I'm going to scale you now, just four weeks away.
02:18
It's a bit more than four weeks away, but yeah.
02:21
Next week is four weeks away, isn't it, so.
02:23
It's next month, yeah.
02:25
It's coming soon, which has been stressing me out a little bit.
02:30
But we always forget to talk about it, don't we?
02:32
So, which is meant I've forgotten to write about it a lot, but it's coming up on
02:35
September the 24th in Abendon, isn't it?
02:39
In Oxfordshire, tickets are available, but we've got some we've got some good people
02:45
We're just trying to find the last remaining guest.
02:48
I'm looking for a good independent dealer.
02:50
But at the moment, we've got Matt Galvin, who is the head of Jon.
02:57
Polestar, thank you.
02:58
Yeah, so you have been paying attention.
03:00
And Vicky Hart, who's the marketing director for Waylands.
03:04
So we've got a manufacturer there of electric cars, which will be which will be
03:08
interesting and Vicky's going to be given an interesting opinion,
03:12
because Waylands have been on a bit of a bit of a charge over the last few years.
03:16
So interesting to hear what's what's going on there.
03:19
But yeah, it's a bit more of a social catch up, isn't it, the podcast live?
03:23
Yeah, I would say so.
03:24
Of course, it's all kind of you sit in a room and listen to us for,
03:28
I don't know, about an hour.
03:30
Oh, well, that's not that long.
03:33
And our interesting guests.
03:35
But then you're herded outside to be fed with delicious food from a barbecue,
03:41
hopefully outside, because that was the idea last year and it was nice and sunny.
03:44
His batch cook in there.
03:46
Hey, his batch cook in there on the barbecue.
03:50
Because he'll have his legs out.
03:53
Yes. And of course, there is a lovely bar conveniently located just behind our room.
03:59
So yeah, it's a great catch up event, isn't it?
04:00
And you get to see lots of people that you don't tend to see,
04:03
particularly after a long summer break.
04:06
Yeah, I'm looking forward to it.
04:07
I am very much looking forward to it just around the corner.
04:09
But I actually I genuinely don't know this, even though I made some notes
04:14
because I need to remember some stuff to talk about.
04:16
But where do people get tickets from?
04:18
Well, James, I'm glad you asked that.
04:20
They get it's from the bit underneath this podcast.
04:23
So if you're listening on Spotify,
04:24
there's a link as there has been for the last few weeks.
04:27
There's also a link on the website.
04:29
There certainly will be one of those podcasters uploaded to do it from our home page as well.
04:33
And don't forget to use the discount code PIKENTO
04:38
not to get a small Korean car from James, although those are available,
04:41
but to get a percentage off the percentage of which I've gone.
04:45
But that's an exclusive for podcast listeners.
04:48
Excellent. Excellent.
04:49
Do you want a little bit of dealership news before we introduce our guest?
04:53
Nope. I'm going to give it to you anyway.
04:55
So do you remember our Troublesome Mazda CX-5 that bounced back last week
05:00
after we spent thousands and thousands of pounds trying to fix it?
05:04
The customer lost all confidence in it
05:07
and we had to buy it back for pretty much what we sold it for.
05:10
This was the just to remind everyone,
05:13
this was the 2.2 litre diesel Mazda CX-5 from whatever year it was.
05:19
He told you I explicitly told you do not buy one of those.
05:23
And then I think it was Shea from Nichebo said do not buy one of those.
05:27
And then what did you do, James?
05:29
Well, I bought one of those, didn't I?
05:30
It's got a very high retail rating.
05:31
So it and it's sold within hours of us listed it at the first point
05:37
and has caused us no end of trouble ever since.
05:40
Very, very frustrating.
05:41
I mean, I think the engine might be made of chocolate
05:45
because it just keeps breaking.
05:47
So yeah, we got it back
05:49
because after we spent another few thousand pounds
05:52
putting new turbos on it or something, the DPF went.
05:56
So I decided to sell it for spares or repairs this week.
05:58
So we sold it for half the usual price, half retail price on
06:03
in the spares or repairs advert.
06:05
Honestly, the phone did not stop ringing.
06:08
We could have sold it 10 times for that price.
06:10
The man who came to pick it up was quite possibly the scariest man
06:14
I've ever seen in my life.
06:15
Now, I've, John, as you know, got quite big hands.
06:23
Why would I know that?
06:25
Because I showed you.
06:28
But this guy had honestly had like dinner plate sized hands.
06:31
He was at least another foot taller than me.
06:36
He was of Eastern European descent, possibly mafia.
06:40
And he just and he just said to me when he turned up, he said,
06:44
he didn't ask any questions about the car.
06:45
He just said, will it get me home?
06:48
And I said, I really don't know if it's going to get you home.
06:51
But please just give me the money to leave.
06:53
And he did give me the money, but he didn't leave.
06:55
He just sat outside the dealership with the car running for 25 minutes,
06:59
which was possibly the scariest 25 minutes of my life.
07:03
He did eventually go and we haven't heard from him since.
07:05
But if I suddenly disappeared, John, you know why?
07:08
Look for a man in a CX-5 possibly broken down outside the road.
07:12
Maybe this is a new business model for you.
07:13
Just exclusively sell broken cars,
07:16
because if they go that quickly, I mean,
07:20
the spares or a pair of things is a little bit of a weird one
07:23
because it's a very gray area.
07:25
You know, you have to be very honest about what the condition of the car
07:28
that it's obviously a trade sale, which you can't do to a member of the public
07:33
unless you're like really open and honest about all of the problems it's got.
07:37
I mean, we've got this long agreement that we have.
07:39
We get them to sign, which basically says,
07:41
I'm not even a driver away from the dealership.
07:43
I mean, once we give them the keys sort of
07:45
and they've got ownership of it, it's sort of up to them.
07:47
Yeah. So really, James, when he said, will it get me home?
07:50
You actually said, no, it won't because you're going to trailer it away, aren't you?
07:55
Yeah, that's exactly what I said, John.
07:57
Just checking for anyone.
07:58
Yeah, he was a very scary man and hopefully I'll never see him again.
08:03
But yeah, that's about it really. It's been quite quiet.
08:06
He's obviously middle of August, which is sort of like I suspect
08:10
that's probably time of the year, but still
08:14
never means I don't question what I'm doing every time the phone doesn't ring.
08:18
But yes, anyway, enough of that boring story.
08:21
Let's move on to our guest.
08:22
Yes. So joining us this week is Will Blackshaw, boss of, of course,
08:28
dealer group Blackshaws. Nice to see you, Will.
08:31
Pleasure to be back.
08:32
It seems like it's been a long time since we last went through a podcast.
08:35
But obviously, I know you get plenty of guests coming through,
08:39
which is always a pleasure to listen to them as well every Friday
08:42
and see what we can learn each week.
08:44
But I don't think I'll learn much myself this week, because obviously it'll be myself.
08:49
You can teach me a thing or two.
08:52
You can teach me a thing or two.
08:53
You're a podcast veteran, aren't you, Will?
08:55
You've been on a few times, but thank you for coming back and chatting to us.
09:00
You're reaching a bit of a milestone on you at the moment.
09:03
Yes. So last month, excuse me, last month,
09:07
yeah, July, 25 years stroke in the family business, stroke the industry.
09:14
Literally don't know anything else, would never work anywhere else,
09:17
apart from being a part-time pizza boy when I was an apprentice,
09:21
straight at the top of my wage.
09:23
So, yeah, 25 years, which unfortunately, nobody sort of acknowledged it work.
09:28
I had to celebrate it myself.
09:31
We celebrate other members of staff.
09:33
But obviously, unfortunately, there was no balloons or cake on the desk
09:36
when I came in, so never mind.
09:38
Hopefully for 30 years, I might see something,
09:42
but scary how quickly it's went, to be honest.
09:46
And I'll be honest, I still enjoy it.
09:49
You know, sometimes you think after 25 years, do you fancy a change?
09:52
But I do go into work every day looking forward to it
09:56
and still love the industry as much as I did the first day.
10:00
Still not a fan of cars, if I'm honest, but still enjoying it.
10:03
The, you know, when new product comes out, you know,
10:06
the marketing element, the CSI element, and I do like a good graph
10:11
and how can we improve things, not from a financial point of view
10:15
as such in terms of greed, but just from a challenge point of view.
10:19
So that's what I enjoy the, say, the analytics side of it all.
10:23
What over those 25 years, Will, what would you say
10:27
has been the biggest change, do you think?
10:30
Oh, I think the industry has generally improved, you know,
10:35
I think it was last week's podcast, possibly, or the week before
10:39
where somebody had mentioned on the terms of, you know,
10:42
there is still sadly a few bad dealers out there
10:45
whom take the industry, but I think the industry
10:48
is a lot, lot more professional.
10:51
I do think everyone that is in the industry
10:53
wants to do a very, very good job.
10:56
You know, I think we've caught up in probably
10:58
taking digital much further than, obviously,
11:01
we've all went through the period of trying to purchase
11:04
or rent a property and you look at the photography of houses,
11:08
which are like, let's see, I don't know,
11:11
say an average £200,000 house, maybe, so it's an average.
11:15
And there's like 30 pictures and we're selling cars
11:19
with 50 pictures and very good video walk arounds.
11:22
I tried to buy a camper van a few years ago
11:26
and I was astonished at how poor the imagery was compared to the car.
11:31
Bear in mind, again, camper vans at the time,
11:33
probably average price, £40,000, £60,000 for a second hand camper van.
11:37
And I think we are a lot more professional.
11:39
I do think we use data very, very well now.
11:43
AI, I know you've touched on and I joked about
11:46
when you first started with your AI project,
11:47
I was expecting a clocks and form sort of element,
11:51
but I think we're using data very, very well now.
11:55
And I think people, the scale of people are very good.
11:59
You know, technicians as an example, you know,
12:01
having to learn the EV side of things versus the ICE side of things.
12:05
And, you know, I think most of them have adapted very well to that
12:08
and taken it on well.
12:10
Service advisors, again, used to be a handwritten diary.
12:14
There's your invoice, but now they're dealing with data
12:17
and multiple computer systems on a daily basis.
12:20
So I think the skill sets are a lot higher as well.
12:23
The fundamental selling of cars, I still think,
12:26
you know, it's a facilitating a deal.
12:28
I don't mean that in a rude way,
12:30
because customers now know what they want.
12:32
They've done the research, they know what the car's worth,
12:35
which, you know, everyone knows all this anyways,
12:38
but, you know, it is about not selling cars to people.
12:42
It's supporting them when buying a car.
12:44
So, you know, if you look at our reviews,
12:46
our culture very much is not a pushy sales environment,
12:50
because I don't think it works anymore.
12:52
So I think you've just got to, again, listen to people,
12:56
whether it's your customers or your staff,
12:59
and, you know, keep them happy.
13:01
And it really is as simple as that.
13:02
People keep saying, you know, what's your success?
13:05
If you can keep everyone happy, which is easier said than,
13:07
don't, don't get me wrong.
13:09
Because, you know, you give people what they all say,
13:13
and you give them an inch to take a mile at times,
13:16
you know, as long as you're nice to people,
13:18
they'll deal with you.
13:19
And I think that's, it's as simple as that.
13:22
Will remind those people listening,
13:23
just a little bit about your business,
13:25
who might not have listened to the podcast before.
13:27
Just explain, you know, who you're representing,
13:30
Yeah, so we're based in North North Thumbland,
13:33
in the town of Annick,
13:34
which I'll say people I've never heard of,
13:36
but everyone seems to have visited there
13:37
for summer holidays,
13:38
and it's famous for the Annick Castle,
13:40
which is home of the first Harry Potter film.
13:43
Apparently, I've never watched Harry Potter,
13:45
but that's what I'm told.
13:47
John's a massive fan.
13:48
Yeah, so started in 1919,
13:51
so 106 years old now as a business.
13:54
Myself and my sister are 50-50 shareholders.
13:58
We inherited it from our dad.
14:01
So we're the fourth generation.
14:02
And obviously, over that time,
14:03
multiple franchises started with a little garage
14:07
in the town centre.
14:08
We're now on an enterprise park on the edge of town,
14:10
representing MG and Suzuki,
14:13
which we built a new showroom there 15 years ago,
14:16
sort of purpose-built.
14:17
And then we expanded into the town of Morpeth,
14:20
which is basically halfway between
14:22
the top of North Thumbland and the city of Newcastle,
14:25
where we started as a Mitsubishi dealership,
14:28
but obviously they left the UK several,
14:32
seems like a couple of years ago,
14:33
but I think it's getting on for four or five years now,
14:35
possibly, where we added on Sanyong,
14:38
which obviously rebranded as KGM.
14:41
So two sites, 12 staff at the Morpeth site,
14:45
approximately 40 staff at the annex site,
14:48
workshop, MOT, body shop, really big, big setup.
14:53
But I am very, very lucky with the staff that we've got
14:59
to the point where I've got 100% trust in all of them.
15:04
They've got sort of flexibility to do their deals
15:07
as a salesperson from start to finish.
15:09
There's no sort of business manager,
15:11
or they've got autonomy to handle deals.
15:14
And the salesman that we've got the least experience,
15:18
he's been with us almost 10 years.
15:21
So they've kind of built their own business
15:23
within a business almost, and the customers trust them.
15:27
The service manager is excellent,
15:29
general manager is excellent,
15:30
and the business more or less runs very well
15:34
without me sort of.
15:35
To be honest, when I get involved,
15:36
I usually just call it bother,
15:37
because I stopped going to look to change things,
15:39
and I am very lucky.
15:41
We've got a good reputation in the area,
15:44
or CSI is the highest it's ever been.
15:48
I'm really proud of what we've achieved, to be honest.
15:50
But from this, I've got to go looking for things to do,
15:52
just to keep myself occupied,
15:54
and probably getting the way, to be honest.
15:57
You and your sister took it over from your parents.
16:00
Do you want your kids to do the same?
16:03
Like my son, my lesson,
16:04
he's only just turned nine and my daughter's 14.
16:06
She's definitely got no interest today.
16:09
If they would like to, then obviously we will do,
16:12
but I think we're 10 years away from being at that period.
16:17
What does the industry look like in 10 years?
16:19
It does worry me a little bit with EV,
16:21
and will it become more of a,
16:23
everyone will be on contract hire, potentially.
16:27
I think there'll always be a market for second-hand cause.
16:30
But up until the age of 15,
16:33
and I know we've had this story over the years,
16:35
I had no interest in the family business when I was 15.
16:38
My vision was to go and work in IT,
16:42
which is probably why I like the analytical side
16:44
of the business more so than the cause element.
16:48
So I don't know what the future will hold.
16:50
I think it'd be nice for them to come into the business,
16:52
but I know for a fact I won't push them.
16:54
They've got to decide what their career path is.
16:58
Hopefully they're not,
16:59
and then I can sell out and buy my yacht and sail away.
17:01
Yeah, the dream, the dream.
17:05
You mentioned there about data
17:06
and how you use it in your business.
17:08
How does it help the franchise side?
17:11
I mean, obviously I focus it very much
17:13
on the use car business.
17:14
It's helped us hugely.
17:18
I think obviously franchise,
17:19
we represent the three franchises from a new perspective.
17:24
There's probably not that one.
17:25
Well, I tell you why, there is data in terms of market share.
17:29
So if you take any of the three,
17:31
we can see what our sales are versus the other brands.
17:35
We know who our competition is,
17:37
which then helps dictate what use cars to buy.
17:39
So pre-COVID, we wouldn't sell a car that we didn't,
17:44
as a used one that we wouldn't represent.
17:46
We'd only sell used cars of the brands we represented.
17:49
Obviously after COVID,
17:50
and then we went into the semiconductor issue
17:55
and all the various issues when new cars supply.
17:57
So we had to start selling anything and everything.
18:01
So we can look at what cars are selling in our area.
18:04
Obviously North North Thumblint versus Central Lunding,
18:07
it's going to be totally different use car.
18:10
We can use the CSI data very well.
18:12
So regardless of what car they've bought,
18:16
was the site presentable, was parking easy.
18:20
You get the feedback from what the customers are saying
18:22
to improve the customer service.
18:24
And doing this wrong 99 times out of 100,
18:27
it's always just praise, praise, praise.
18:28
But there is that odd thing where,
18:30
like we took the newspapers out of the waiting area
18:33
because during COVID,
18:35
because people didn't obviously want to touch
18:37
what other people were touching.
18:38
And we forgot all about it
18:39
because it just kind of disappeared.
18:40
But then you do get the odd comment.
18:42
I do miss having the papers in the waiting area.
18:44
So it's little things like that,
18:46
which you can use staff as it sounds.
18:48
You can use the CSI data for reporting of used stocks.
18:53
Obviously the big one, overage new stock.
18:57
Sometimes it's too easy to forget about
18:58
which bits of a new stock are in the compound at the back
19:01
because you're just looking at showroom presentation.
19:04
So we're using data in all elements,
19:07
parts, department, overage stock,
19:10
what parts are now over six month old.
19:13
Cause again, sitting in a dusty wheel bearing on the shelf.
19:18
Get the reports from overage parts stock.
19:20
So can we get it on eBay?
19:23
Can you get it into a Facebook forum page
19:25
for an enthusiast who thinks they're picking up a bargain?
19:28
So we use it all day every day.
19:30
And to be honest, I've probably got too much data coming in
19:32
where I'm not looking at enough of it
19:34
and make my day a bit boring, to be honest.
19:38
Well, I often see you on LinkedIn or social media
19:41
looking for new suppliers or new ideas.
19:45
Have you picked up any good tips?
19:46
Have you found anything that way
19:48
that you could share with us?
19:51
Like the yellow page is obviously gone now.
19:54
So I refer to that as my yellow pages.
19:58
But yeah, quick example, Christ,
20:00
I'm making my son so low, right geek here.
20:02
So we've got our management accounts
20:05
and I just thought it's not pretty enough.
20:06
I want it prettier.
20:08
And again, through Suzuki, they set this dashboard system
20:13
where it showed you your market share,
20:14
your customer satisfaction, mystery shops.
20:17
And this dashboard was so pretty.
20:19
And I was like, I want a dashboard like that for my data.
20:22
So I reached out and I was put in touch
20:24
with a gentleman called Pete Smith.
20:26
I think his business is BI navigation.
20:28
So we now then send our reports in Microsoft BI
20:33
and make the reports just really, really pretty,
20:36
which I didn't even know existed.
20:38
And I've got the same data,
20:39
but it's just in a prettier format now.
20:41
So that was a good win with Pete,
20:44
really, really good guy.
20:47
That was probably the most recent one.
20:48
I'm trying to think of other ones,
20:49
but just things like waste contacts,
20:53
stuff that sound unconscious
20:54
of trying to make us stand out in a digital forum,
20:58
selling used cars, where, where based,
21:00
you obviously got your honor clocks and your virtues,
21:03
whom, you know, they're hard to compete with
21:06
because they do a very good job.
21:07
But I was like, let's go to school.
21:09
Let's get a leaflet drop done.
21:10
I'm thinking, how do you do a leaflet drop?
21:12
Like, where do you start?
21:13
Are you allowed to?
21:15
How many chimney pots?
21:17
So you reached out on LinkedIn
21:19
and then a message through,
21:21
there's a woman called Kath,
21:22
called Kath through your door,
21:24
who does leaflet dropping.
21:26
And there's another one, you know,
21:27
which if you Google leaflet dropping,
21:29
it's, you just find all these big national companies
21:32
and you're thinking, well,
21:33
will they actually do the job?
21:34
So that was another quick win the other day,
21:36
but I do think it's a great way of getting sort of
21:41
suppliers, but from trusted sources.
21:43
Did the leaflet drop work?
21:45
We're just waiting on the print being finished.
21:47
This is literally hot off the press.
21:49
So I'll keep you updated on that.
21:51
But my conscious concern, sorry,
21:53
is when you get home and there's five or six leaflets
21:56
through the door, you put them in the bin.
21:58
So I want to try and make it,
21:59
so it's just hours and hours only.
22:01
And just, I think, is there still a bit of an opportunity
22:04
with good old fashioned leaflet drop?
22:07
I've been actually thinking about the same,
22:09
but I actually had some created,
22:12
but just never dropped them.
22:14
No, it's just been using them as coasters
22:15
for the last six months.
22:18
As far as I got, maybe I should just go and fly to them somewhere.
22:22
Anyway, when it comes to AI, Will,
22:26
are you using that at all?
22:27
Have you found anything useful there?
22:31
I know there's more to AI than me to AI.
22:33
And I have to admit, I feel a little bit sort of
22:36
on the back foot with it with chat, GEP, et cetera.
22:39
I can't even pronounce it,
22:41
but I do love the live chats
22:43
and we work with one supplier
22:46
whom they changed the way
22:48
that we're getting their data in the background.
22:51
So it wasn't answering the questions quite how I wanted to.
22:55
And I think it's that thing.
22:56
If it's not 100% right, don't do it.
23:00
So I have had conversations with the supplier again
23:04
about, look, how can we fix my concerns?
23:06
So again, it's one that we will reimplement
23:09
from a live chat point of view.
23:12
I know a few other suppliers,
23:13
I did speak to another supplier
23:14
and he gave us a price and I just thought,
23:16
I thought it was too much money for what it was.
23:20
So I don't want to mention the supplier at the minute
23:23
because I feel it's a bit unfair
23:24
that I was working with them and not working with them.
23:25
But I think there's definitely an opportunity there.
23:29
We have been using it through the Auto Trader portal,
23:31
I tell a lie, with the vehicle descriptions,
23:34
which I think is pretty cool.
23:37
I'll be honest, I don't probably read them enough.
23:38
I'm hoping that what they put is good.
23:43
So to me, AI though, is just a live chat element.
23:47
So probably not using it enough to be honest.
23:50
So an opportunity there for us, I think.
23:53
And where are the biggest stresses
23:55
at the moment in the business?
24:02
I don't get too stressed, if I'm honest.
24:04
I think I've matured a lot over the years.
24:06
I think I used to overthink everything.
24:08
Maybe it's an element of anxiety kicking in
24:11
where I was trying too hard to please everybody,
24:14
which I keep going back to my earlier point,
24:15
I think it's important to keep people happy,
24:17
but you've got to understand where the boundary is.
24:19
And I am very, very lucky with staff.
24:24
I think probably the most stress
24:27
is coming from having EV demos.
24:32
And then seeing, I think EVs are excellent,
24:35
but it's that sort of, oh no,
24:37
here's another demo coming, here's another demo.
24:39
Well, that's probably where we feel a bit of pain
24:41
is a manufacturer franchise dealership
24:44
having to let the EV demos drop off and they use stock.
24:48
But once they're a used vehicle
24:50
and the price point is correct, they sell very well,
24:53
it's just that initial bit of pain
24:55
in every six months of demo changes.
24:58
I do find a lot in this business
25:01
that there's so many different elements
25:03
that stress you out.
25:04
I mean, I think the one that I really,
25:06
I've really struggled with these customers,
25:09
which is obviously it's like the main part
25:10
of the business, isn't it?
25:11
But I just find that sometimes their expectations
25:14
and their demands are far greater than you can achieve.
25:18
And we try our absolute best to look after customers.
25:21
But I, and talking to other dealers in the game,
25:24
a lot of people find the same thing.
25:26
Do you find that element stressful?
25:28
I've got, as I said before,
25:30
and I have got very, very good stuff.
25:32
And you know, you go on courses
25:33
and you meet other people.
25:35
And you think, I feel my stuff
25:38
are very, very superior.
25:39
And I don't mean that in a big headed way.
25:40
I just mean in terms of you've got a benchmark
25:43
people against other people,
25:45
that's the only way you can do it.
25:46
And you know, I've got an excellent
25:47
after sales manager, excellent service lead,
25:49
excellent general manager.
25:50
So very little bit gets to my desk,
25:53
but when it does, I kind of just take a step back
25:56
and quick example at the minute,
25:58
I've got a customer whom has had nothing
26:00
but bother with one of his vehicles.
26:03
It's his second vehicle purchase from us.
26:05
He's had every service and MOT done with us.
26:07
And he's saying, look, I want,
26:08
I just don't want the car anymore.
26:10
And he came in, sat down, very polite.
26:13
We had a coffee, proper sort of chat about it, you know.
26:17
And he's saying, I want your help.
26:19
So we're actively trying to find an alternative car for him.
26:23
Literally as of this morning,
26:24
this was with ongoing conversations.
26:29
So the point where we will not make any money
26:31
And the customer is seeing us as helping them.
26:34
And then on the flip side of that,
26:36
I've got a customer whom is trying to sue us
26:39
for thousands of pounds.
26:41
We didn't supply the car to have the sales issue.
26:44
And I just straight away,
26:45
just refer them to the MOT ombudsman
26:47
and let them deal, you know, put all my evidence across.
26:51
And I think the MOT ombudsman is very, very good.
26:55
because they take that burden away for you.
26:56
So if the customer's right,
26:58
in my opinion, correct, I'll work with the customer.
27:01
If they're going to be aggressive or rude or nasty,
27:05
I'll just push them to the ombudsman.
27:07
It's not fair on the staff.
27:09
And another quick example,
27:12
getting back to staff.
27:13
We had an issue with one of our suppliers
27:15
whom had let us down, sadly,
27:18
where the member of staff got the burden of it.
27:20
So I've actually changed that supplier.
27:22
It's going to cost me more money.
27:24
But my staff's going to be happy I using that supplier
27:26
because they're not going to get the burden.
27:27
Obviously, I can't dwell too much on that
27:29
because it would be unprofessional.
27:30
But I'm always about the people to me.
27:34
And I love working with nice people.
27:36
I like helping nice customers.
27:38
And if they're going to be awkward, just push them away.
27:40
And if it costs you a bit of money to get it gone,
27:42
just pay the money.
27:43
And go back to your question before stress, frustration.
27:47
I think I've learned over the years,
27:48
get rid of the problem as quickly as possible.
27:50
And if it costs a bit of money, it's money well spent
27:52
because you go home at night
27:55
and I used to take my problems home at night.
27:56
And it wasn't fair the way I used to handle myself
28:01
outside of work, especially at your loved ones.
28:04
And I've learned you don't do that now.
28:06
And I think, I mean, personally, I feel in a good place, you know.
28:10
It's all too easy to do that.
28:11
And I certainly did that
28:12
when I started Clever Car Collection.
28:14
And it's just, what we need to do is get to the stage
28:17
where the customers using AI to make their complaint.
28:20
We're using AI to deal with the complaint.
28:22
At the end, AI tells us how to resolve it.
28:25
That's what we need.
28:26
That's a good challenge.
28:28
The other question is, as an independent franchise dealer,
28:33
how do you cope when the manufacturers are up and says,
28:36
you need to spend X amount of money on new chairs
28:39
or you need to spend X amount of money on a new totem pole?
28:42
I just, looking from outside in as an independent,
28:46
I would find that incredibly hard to deal with
28:48
because it's quite hard to plan for, et cetera.
28:50
How do you deal with it?
28:52
Because as I say, we've had a few franchises over the years.
28:55
You kind of know it's expected at times.
28:59
Luckily, the brands we work with,
29:01
there's been nothing ridiculous.
29:04
We've just had to do some more work for one of our partners,
29:07
which, you know, it's costing me about £20,000
29:10
to do some internal works.
29:12
But you look at that over the number of cars
29:16
number of years you plan to be with that franchise.
29:18
Obviously, it's a long-term investment.
29:21
And I think the realistic, it's expensive at the time,
29:24
but generally the stuff you're buying is very good quality.
29:28
Like, I go back to some desks,
29:30
we had to buy many, many, many years ago
29:32
and the day we threw them out,
29:34
we've got a silly video of the salesman
29:35
sitting on the desk on the back of a trailer,
29:38
taking it at the tip,
29:39
pretending we're doing mobile sales,
29:41
probably not the best for health and safety.
29:43
And when you look back,
29:44
you think that desk probably lasted 10, 12 years
29:46
versus a desk there, say, from IKEA.
29:49
It's probably not, you know,
29:50
you're buying good quality product.
29:53
but it does last and, again,
29:57
you just kind of know it's part of the franchise cost
30:00
and the benefits of being a franchise.
30:03
Again, we had to spend some money with Suzuki recently.
30:06
They've provided me with some excellent trading
30:08
over the last two years.
30:09
So it's kind of, you know,
30:10
swings and roundabouts really.
30:12
So I don't get too hung up on it.
30:14
And at the end of the day,
30:15
it's tough, you're getting a type of thing.
30:17
So you just, you know,
30:18
you gotta look for the benefits
30:19
and the positives in all these situations.
30:22
Well, congratulations on 25 years in the industry.
30:26
I don't think I'd ever get to that in terms of car sales.
30:28
So a massive congratulations from us.
30:31
But I do think we should do some stories, John,
30:34
because most of the questions I've got left
30:36
are about the stories I've got.
30:39
We'll be right back.
30:41
Now, John, I'm really enjoying
30:42
how easy it is to pay sellers on carwall.
30:45
I mean, presumably you'd rather not pay them at all.
30:48
But now I can do it with carwall wallet.
30:50
You can pay sellers, finance houses,
30:52
and more instantly, literally in one click.
30:56
It's secure, easy to use,
30:58
and gets rid of all the pesky finance back and forth.
31:02
It's a total game, James and John.
31:04
That does sound pretty good.
31:05
If you want to find out more,
31:07
dealers can log on to carwall.co.uk
31:09
slash partners slash carwall dash wallet.
31:14
Now, back to the podcast.
31:18
This is a paid partnership
31:19
in association with Dealerway.
31:23
Oh, God, you've bought more ducks, haven't you?
31:26
No ducks, John, wrong there.
31:28
I've actually got a new habit.
31:30
I've signed up for Dealerway
31:31
alongside more than two and a half thousand
31:34
other rated and vetted car dealers
31:36
to sell my trade part exchanges.
31:39
The site is designed for dealers
31:40
to sell their part exchanges for more money
31:42
quickly and easily.
31:44
There's no sellers fees,
31:45
and buying a car costs just £99.
31:48
One of the cheapest around.
31:50
And when I haven't got the time to list the car myself,
31:53
I can even watch out them the details
31:54
and they do it all for me.
31:57
That sounds awfully familiar.
31:59
So are you selling all your stock there now?
32:02
but if I do have a sudden influx of Kia Picantos,
32:06
I know where to send them.
32:07
Dealers can find out more at dealerway.co.uk
32:13
So James and I are going to run through
32:15
our favorite stories of the week.
32:16
And at the end, we'll get to decide
32:18
which one of us chose the best ones
32:20
and who's the winner.
32:23
because I'm getting very bored of saying now,
32:25
One nil to you in the new series.
32:29
About 30 nil to me before that.
32:31
I've forgotten, mate.
32:32
I've already forgotten.
32:34
Is it a new financial year on the 1st of August
32:36
that I wasn't aware of?
32:37
It is for the Cardinal podcast.
32:40
Right, well, I'm going to start with
32:42
some news we talked about last week,
32:43
which is the electric car grant.
32:46
Which, of course, we had the date
32:51
The grand unveil of all the cars
32:53
that were going to be ready to go
32:55
with a rubber stamp of approval
32:58
from the government
32:58
that they were going to get
33:00
one of two tiers of grant.
33:03
And it's been more of a trickle
33:06
than a flood of vehicles, I would say.
33:08
So I'm not going to read out the full list.
33:09
There's 17 cars on it.
33:11
We had the Citroens announced last week,
33:15
But there's now some Nissan,
33:16
some Renault's and some Vauxhall's.
33:20
So it's not the most comprehensive list of cars.
33:24
When you think that Citroen, Vauxhall
33:27
and no, it's just Citroen and Vauxhall on this list.
33:29
There's no mention of any other
33:31
Stellantis products, strangely.
33:32
No Peugeot, fundamentally the same thing.
33:35
No Fiat, very similar as well.
33:39
Not quite sure how this has happened.
33:40
But anyway, either Citroen in their little head office
33:42
were much quicker at getting things across than anyone else,
33:45
or the government is going through this alphabetically,
33:47
or something, it's very peculiar.
33:49
So we're now in a strange situation
33:51
where supposedly they're all going to be announced,
33:53
they've not all been announced.
33:54
And dealers are not terribly happy about this,
33:57
particularly if you're not one of the manufacturers
33:59
I've just mentioned,
34:01
because of course it's still up in the air.
34:03
So customers are walking in saying,
34:04
I'd like to buy a Peugeot E 2008, please.
34:07
Can I have my three and a half grand off?
34:10
And the dealer's having to say,
34:11
oh, can't really do that right now,
34:14
because we don't know how much is going to come off.
34:16
We don't know if it's going to even be applicable.
34:19
We don't know when that's going to happen.
34:21
It's all very confusing.
34:22
So some manufacturers have stepped in and just said,
34:28
do you know what, take 1500 quid off,
34:30
that's what Volvo have done with the X30, for example.
34:33
But of course that's debatable as to whether,
34:35
depending on whether that's made in Europe or China
34:36
because they make it in both places,
34:38
whether that's going to even be applicable
34:40
for the 1500 pounds off or not from the government.
34:44
And of course all the Chinese car makers,
34:45
as we said last week,
34:46
have already come out with their offers.
34:47
So ridiculously, every Chinese car maker
34:51
is now ahead of all the European ones
34:54
when it comes to this grant,
34:55
because they've just locked the money off.
34:57
So it's not a great situation, is it, James?
35:00
No, it's not, John.
35:02
I've looked into this at length this week.
35:06
I've chatted to a number of people,
35:07
including the Department for Transport,
35:10
because I started looking at the number of cars
35:14
that were eligible for this grant.
35:16
Obviously there's two tiers, tier one, 3750 pounds,
35:19
full grant, one that got all the headlines,
35:22
tier two, 1500 pounds, so tier one, tier two.
35:25
Now all of the cars are now so far,
35:27
all 17 of them are in tier two.
35:30
Not one is available for the full grant.
35:32
Now we're nearly a month on after this was announced.
35:35
We know the Nissan Leaf will be eligible
35:38
for the full discount, but it's not even on sale yet.
35:40
So there was a few questions
35:43
that I wanted to ask the Department for Transport,
35:46
like why is this so chaotic?
35:48
You know, I mean, one of the dealers I spoke to,
35:50
Peter Smy from Swansway, you know,
35:53
good old Peter in his great quotes,
35:54
called it shambolic, the way that this has been announced.
35:58
Neil McHugh from Snow said the whole scheme
36:01
was ill fought out, and do you know what?
36:05
I think there was, well firstly, great intent
36:08
with this scheme, you know, we needed one,
36:10
we'd been banging on about it for ages,
36:11
the industry's been talking about it for ages,
36:13
saying we need some incentive,
36:15
but why on earth has this been made so complicated?
36:19
And it's because these two different bands are not just,
36:23
there's a lot that goes into working out
36:25
which band these cars sit in.
36:27
There's very strict criteria,
36:29
those science-based targets,
36:31
that ridiculous term that they've trotted out,
36:35
it's all about the sustainability of the manufacturer.
36:38
So I looked into what this is,
36:39
and it's based on those environmental credentials
36:43
of the manufacturer as a whole, not the car.
36:46
So it looks at battery production emissions,
36:48
so it's weighted towards that,
36:49
it looks at vehicle assembly line emissions,
36:52
there's some weight in towards that,
36:53
and it looks at the carbon intensity
36:56
of the electric grids in the country
36:59
where that car was made.
37:01
So it might not be anything to do with the manufacturer,
37:03
it might just be the fact that China
37:06
or wherever these cars are made uses coal
37:08
to power their electric plants.
37:13
So it is massively overly complicated, this grant,
37:17
and it means that I don't actually think
37:19
many are gonna be in BAM on John,
37:21
I can't actually see many are gonna make that major discount.
37:28
We got a statement from the Department for Transport,
37:30
they did give me a lot of background information
37:33
which is basically them saying,
37:35
we don't wanna put this on the record.
37:37
But on the record quote was,
37:39
we expect dozens of models,
37:41
which is not very many is it, dozens of models,
37:43
to be eligible for the electric car grant
37:45
with 17 announced today and many more to come,
37:48
providing a substantial boost for the industry
37:50
and saving drivers thousands of pounds.
37:53
The list of eligible models is published online regularly.
37:56
We also have published comprehensive guidance
37:59
for manufacturers who will continue to work,
38:01
who they will continue to work with alongside dealers
38:04
to help more of their customers access the grant.
38:07
So speaking to the DFT,
38:10
they said that this grant was a commercial decision
38:14
for the car manufacturers, obviously,
38:16
most of them are gonna wanna apply for it.
38:19
And from what we understand,
38:21
a lot of them are just waiting
38:22
for their discounts to be signed off
38:24
because you've got the Department for Transport,
38:27
not only just looking at the cars,
38:28
working their way through all of those different emissions
38:31
regulations and finding out whether it is band one or band two.
38:35
I mean, horrendous red tape, horrendously complicated.
38:39
And actually, another dealer I spoke to this week said,
38:43
what they're basically saying is,
38:45
what they need to decide is, are EVs good or bad?
38:49
Because what they're saying at the moment is,
38:50
some EVs are good, but some EVs are bad.
38:53
And these ones are a little bit better than those ones.
38:56
What a ridiculous state of affairs.
38:58
I'm flabbergasted, if I'm honest, John,
39:01
that it has sort of come to this, not surprised,
39:04
but it just needs to be sorted quickly.
39:07
I mean, again, it was raised by another dealer.
39:10
Why on earth didn't they just say, cut VAT?
39:13
Even if it was just a 5% cut on VAT,
39:16
that would have been 1,850 pounds off every electric car,
39:19
lump them all in, including the Chinese,
39:22
and just be done with it.
39:23
Simple, easy to understand,
39:25
implementable immediately, importantly,
39:28
the day after announcing this scheme.
39:32
I mean, I'm just, I'm shocked it's sort of
39:36
become this absolute mess.
39:38
I can't quite work out what cars,
39:40
obviously you said the leaf is gonna be eligible,
39:42
the new leaf that's made in Sunderland,
39:44
but isn't being made yet.
39:46
I cannot work out what other cars
39:48
are gonna be eligible for this,
39:49
because it's certainly not anything to do
39:51
with being made in Britain,
39:51
because there's a couple, I think, on this list.
39:54
Correct me if I'm wrong.
39:55
Well, you might not know, James,
39:56
but I think the Combo Life Electric, Vauxhall, Van,
39:59
and the Citroen E-Bolingo, both made in the UK,
40:03
as far as I'm aware,
40:04
because they retooled the Luton extra plant
40:06
to make electric fans.
40:08
Yeah, so if they're not getting the full grant,
40:11
and you know, cars like Renault 5 and so on,
40:14
made in France, probably battery-ish plant in France,
40:18
obviously you don't know.
40:19
If it comes down to where the battery cells are made,
40:21
I mean, you're stuffed, aren't you?
40:23
Because we don't have plants to make
40:25
battery cells like that in Europe,
40:27
because it's just, it's uneconomical
40:29
for manufacturers to do that,
40:31
because the technology isn't here,
40:33
the human resource isn't here to know how to do that,
40:36
and so on and so forth.
40:37
It's all from the Far East, really.
40:40
I just don't know how many are gonna get this 3750.
40:44
I honestly don't think it's gonna be very many at all, John.
40:47
I think it's gonna be a handful,
40:51
because they'd be announced by now.
40:55
The other thing is,
40:58
surely the government crunched some numbers.
41:01
650 million pounds this scheme was gonna be?
41:03
They had to get to that number somewhere.
41:06
They had to work it out somehow.
41:08
The other big problem this is causing,
41:10
and we've talked about this before,
41:12
is the very real problem in showrooms,
41:15
where you've got this sort of paralysis
41:17
of customers holding off on purchases,
41:20
because they don't know whether they're gonna
41:22
get the grant or not.
41:23
Neil McHugh said they saw customers
41:25
holding off buying electric cars in July,
41:27
and we're seeing it again in August.
41:29
They're all asking for their 3750 pound discount,
41:32
and we can't give it to them.
41:34
He said a lot of the brands are doing their own things.
41:36
He represents quite a few of these Chinese brands,
41:38
including BYD, but he said,
41:41
why is this electric car being so complicated?
41:43
And I just agree with him,
41:45
and many others that I'm talking to in the industry,
41:47
that's just saying the same thing.
41:49
It needs to be sorted quickly.
41:51
I mean, well, let's talk to someone live.
41:54
Will, what do you think?
41:57
I think I've got a headache, listen to all of that.
42:02
I honestly don't see what the issue is.
42:03
I think it's quite clear.
42:05
But no, I think obviously when the story stroke
42:09
government announced this, I can't remember when it was.
42:12
Now it feels like about a month ago, give or take.
42:15
Out of interest, we logged straight into the old
42:17
EV grant portal, and funny enough, it was still live.
42:20
It still had the same username and password.
42:22
And I was like, where's all the cars?
42:25
You mean the old one from like 10 years ago,
42:27
before they continued it?
42:29
And then obviously you read a bit more and it's like,
42:30
all right, it's gonna take a while
42:31
for these to filter through.
42:33
But I think there's two points to this.
42:37
So from my opinion, which is one,
42:39
what is the government actually trying to achieve?
42:42
Which is if the one EV cars on every driveway,
42:46
it's gonna be on every EV and it could have,
42:47
and it worked really well last time, in my opinion.
42:51
From memory, it was at 5,000 pound at the beginning,
42:53
all them years ago, to go into an EV
42:56
and then it slowly dropped and dropped and dropped.
42:58
Then you've got to look at all the money
43:00
that has actually been wasted in all these factories
43:04
are then gonna do these reports.
43:05
One would guess to show sustainability.
43:08
And these people that you're employing to do it
43:10
aren't gonna be cheap around the world in reports.
43:12
And then staff is getting it converted
43:15
from their language in English to get it approved.
43:18
There must be so much money being wasted.
43:21
And ultimately at the end, the end user,
43:23
who's the person gonna buy these cars,
43:25
as you rightly say, where's my 3,700 pound?
43:29
And I think some people aren't aware of it anyways
43:32
because some manufacturers can't qualify,
43:34
so probably aren't shouting about it.
43:36
But ultimately it comes down to
43:37
what's the price of the car at the end.
43:39
And whether it's money coming from the government
43:42
or as you see, we've got a couple of manufacturers
43:45
whom have put their own schemes on.
43:47
And the way we advertise the cars,
43:49
obviously we're gonna play on the message
43:52
and use it to our advantage
43:53
that you do get money towards an EV.
43:56
But ultimately, if the car is no cheaper or cheaper
43:58
than that one, the customer isn't gonna be too bothered
44:01
whether the money's coming from the manufacturer
44:03
or the government, they're gonna select the car
44:05
they like and the price obviously is an important factor.
44:08
So the whole thing's just so messy.
44:11
Obviously reading the report when it first came out.
44:15
And we've all said, just do it through the VAT.
44:18
That's gotta be the clearest way of that discount.
44:21
We've been saying that as an industry
44:22
for a good couple of years now
44:23
because ever since the ZEV mandate pressure started
44:27
gaining last year, that was always the one
44:32
that seemed the simplest way to achieve
44:35
what the government wants.
44:36
But without going off in a tangent as well,
44:38
why is there no pressure on a new housing estate
44:41
putting EV charges and getting the mindset ready for EV?
44:45
It just seems a bit of a square egg
44:47
being forced as hard as possible around hope
44:50
to try and fix a problem.
44:51
And I do feel some of this was kicked off
44:53
due to Chinese tariffs across the waters
44:57
thinking, oh, why don't we try and do something
45:00
in the UK to protect us, but.
45:04
Yeah, you're right.
45:05
And there's no the grant as correct me if I'm wrong
45:08
but I don't think the grant has returned
45:10
for charge points, whereas once upon a time
45:14
you've got a chunk off your charge point for your house
45:17
as I did that ended and I don't think that's returned.
45:19
So you're still having to go.
45:21
You know, okay, some companies, some car companies
45:24
have factored it into a finance deal, haven't they?
45:26
Or they're doing a cheap offer
45:28
but a lot of the time you're having to fork out
45:31
another grand or another 800 quid to fit that on your house.
45:35
It does feel to me though, like they've just changed
45:38
what was, like you say Will,
45:40
about getting electric cars on people's driveways
45:43
to bashing manufacturers for not hitting their eco targets.
45:48
It's a completely different thing.
45:49
And they've tried to combine two different things into one
45:53
and which have made it a huge mess.
45:55
Surely the whole point of this was to sell electric cars
45:58
not to get manufacturers to change the way
46:01
that they're producing them.
46:04
Can I mention one more thing which is
46:06
has this had a knock on impact on residuals
46:08
or is it just that residuals of nearly new EVs
46:11
are so terrible at the minute anyway
46:13
that another 1500 quid off hasn't really made much of an impact?
46:17
We don't know which ones, well, apart from the list of 17.
46:20
Yeah, like your cars are electrics and so on.
46:22
I mean, the residuals, those are appalling.
46:25
But I just wondered if it had a knock on impact.
46:27
I suppose we'll see soon, won't we?
46:30
Yeah, I suppose we will.
46:31
Let us move us on, shall I?
46:34
So, from one electric car story to another one, John.
46:39
And these are the warranty claims that are blighting EVs
46:44
as the most unreliable electric cars have been revealed.
46:47
The story has caused some feathers to be ruffled
46:51
and it's come from the warranty company WSG
46:56
that has looked across its data
46:59
at electric car warranty claims
47:01
compared to petrol and diesel ones.
47:02
And there was a number of stats in this
47:05
that really stood out to me
47:06
because John, you and I have talked about this a lot,
47:08
haven't we, like, about how electric cars
47:10
have got fewer moving parts
47:12
and that they'd be good things to buy, used.
47:15
And I've always asked the question,
47:17
yeah, I get that, but I wonder how big the warranty claims are
47:20
if and when they come and how often they do.
47:23
And the first stat that comes out of this one
47:26
is actually the warranty claims for EVs and petrols
47:29
are very similar, near enough identical.
47:32
For WSG they saw 13.2% of cars
47:37
claimed for petrols and diesels
47:43
So near enough identical amount of warranty claims
47:47
for both of those fuel types or all of those fuel types.
47:50
And then when it comes to these huge claims,
47:53
Vauxhall Corsa, one electric Vauxhall Corsa owner claims
47:56
6,219 pounds to fix an electric drive fault
48:02
a Mini Cooper SE, which I think is a hybrid,
48:05
had a new inverter and DC converter.
48:09
Do you know what those are, James?
48:12
I was asking, do you know what they are?
48:15
The car or the inverter and DC converter?
48:25
4,658 pounds, John, of your British pounds.
48:30
And then there was a Vauxhall Grandland Electric
48:33
in third place, 4,658 pounds to repair.
48:37
So some huge figures there.
48:39
But then also they've revealed the most reliable
48:42
and the least reliable EVs.
48:45
Top in the list was the Nissan Leaf
48:47
with just 3% of the models on cover having a claim.
48:54
But at the top of the unreliable list,
48:56
the Tesla Model S with an alarming claim rate
49:01
So half of all the cars on cover with WSG,
49:05
Tesla Model Ss, have had at least one claim.
49:08
I mean, I found this report absolutely fascinating.
49:12
It's one that I've been wanting to see
49:15
come out from a warranty company for quite some time
49:17
because it's sort of a little bit of a myth buster really
49:20
because we all think that electric cars
49:23
are more reliable than petrol and diesel.
49:25
And this one shows that actually they're pretty similar.
49:29
I would take it with a pinch of salt.
49:31
Well, so we're not.
49:32
But this is dated, Jon, rather than us just.
49:35
It is, but I would say the fault lies not with the...
49:38
I was still saying electric car is more reliable.
49:41
It should be more reliable, shouldn't it?
49:45
You know, there is less to go wrong.
49:50
Yeah, there is a bit of an issue at the moment
49:53
with a bit like if anyone's ever owned a Mac
49:57
or an iPhone or whatever, and something goes wrong with it.
50:00
They go, oh, yeah, the problem is this chip here.
50:04
Unfortunately, it's glued to the entire rest of the computer.
50:07
So you need like the classic thing for a Mac is they say,
50:10
oh, it needs a new logic board,
50:11
which is basically 80% of the insides of the computer.
50:15
So of course it costs about the same
50:17
as replacing the computer.
50:19
And I think there's probably a bit of that going on with this.
50:24
So you're six grand to replace an electric drive fault.
50:28
Well, that could well be, I'm guessing that's the motor.
50:30
Could be some teeny tiny component in the motor,
50:33
but there's nobody to...
50:35
Actually, nobody exists
50:37
or there's no way of just replacing that small component
50:40
rather than replacing the entire unit.
50:43
It's a slightly daft situation that we're in at the minute
50:45
with lots of stuff like this.
50:48
And I will say from my Mercedes launch I was just on,
50:51
they are aware that things are not as reliable
50:55
as they could be in EV that.
50:56
So with their battery pack, for example,
50:59
they fact, I think it's the battery pack,
51:01
this big component anyway that's in the car,
51:03
it's either that or the drive unit.
51:05
They've realized that the thing that goes wrong,
51:08
80% of the time is this one other component.
51:11
And previously in electric cars,
51:13
the only way to change it is to take the whole car apart,
51:15
get the battery out and change this one small,
51:18
you know, three inch long component or whatever.
51:20
But they've re-engineered it in this Mercedes CLA
51:24
or whatever it is to be able to access it a lot quicker.
51:27
And then that reduces warranty claims and so on and so forth.
51:30
So it's just a little bit of lateral thinking.
51:32
Hopefully we'll start creeping in
51:34
and we'll start seeing these things get a bit cheaper.
51:37
I will give EVs a little right of reply
51:40
because there was a EV specialist dealer
51:43
that will remain nameless
51:45
who took major issue with this service,
51:48
with this survey and this press release
51:50
and said it was nothing like
51:52
that they had experienced selling EVs only
51:54
and they thought it was all poppycock.
51:58
Not their words, mine, I've summarized.
52:00
But yeah, just a little bit of a right of reply
52:03
Will, what do you think?
52:04
Do you see, you sell a lot of electric cars.
52:06
Do you see these all rates?
52:09
No, to be honest, when I saw the article,
52:11
one question that reading the story, I was a bit confused.
52:14
Is that when it says 50% Tesla claims, for example,
52:17
are we talking just EV related faults
52:20
or could that include a wheel bearing failure?
52:22
Well, I think that could be,
52:23
that would include any fault on the car.
52:26
Yeah, as I say, I think you've got to sort of
52:28
separate that out a little bit.
52:31
But to be fair, over the years,
52:32
like we started when we were in this,
52:34
our main dealer many years ago as well
52:37
and we were one of the first selling
52:39
what was the first leaf.
52:42
And to be honest, over the years,
52:44
we've seen very, very,
52:45
I can count on the hand,
52:47
in the last 10 years,
52:49
made one out of classes in major EV fault,
52:51
apart from those that have done
52:54
hundreds of thousands of miles,
52:58
where, you know, probably it's just general wear and tear.
53:01
We've done a few battery replacements
53:03
where as a Mitsubishi repairer,
53:05
but again, you know,
53:06
I've got to remember the manufacturers
53:07
did put an eight year warranty on,
53:09
with the majority of put eight year warranty
53:11
on batteries and these sort of things.
53:15
it's still relatively new technology
53:17
back to what John's saying there with,
53:19
you know, you take iPhone as an example,
53:21
if you want a new battery in your iPhone
53:23
versus a non-gen battery replacement,
53:27
you know, people will start creating
53:29
aftermarket components to repair these.
53:33
So I think, you know,
53:34
fast forward another five years,
53:35
perhaps I think the cost to repair an EV
53:38
will be a lot, lot less.
53:41
So I'm not too concerned personally,
53:43
and I don't think, you know,
53:45
I think an EV is probably more reliable
53:47
than a nice vehicle.
53:52
Well, John, over to you.
53:57
Lovely, I think I've won that one.
53:59
Speaking of repairs,
54:01
let's just briefly talk about Citroen again,
54:04
because of course their ongoing DS3
54:06
and C3 recall is still ongoing,
54:10
because it will take forever
54:11
to sort out nearly 100,000 cars,
54:13
but they've had some bad news this week,
54:14
which is that they've extended the recall
54:16
to some more models.
54:18
So it now includes certain era C4,
54:22
DS4 and DS5 models.
54:25
Luckily, Citroen didn't sell many of any of those.
54:28
So it's only another 10,000 more,
54:30
rather than hundreds of thousands more,
54:32
but it's exactly the same fault
54:34
and it's still under the stop drive thing.
54:36
So they've had to send out some red-headed letters
54:40
to owners of all those cars,
54:42
saying, by the way, you can't drive those either.
54:45
Please take them to a Citroen authorized repairer.
54:48
And Citroen are saying now
54:50
that they're getting through the backlog,
54:53
the Citroen network is fully engaged
54:55
in maximizing the number of cars
54:56
that can be completed every day
54:58
and to include our repair capacity
55:00
even further and minimized as much possible
55:02
as we're all bored now,
55:03
but Peugeot are doing them as well.
55:05
So it is getting there.
55:06
They say, well, Citroen previously said,
55:10
all airbags were gonna be replaced
55:11
by the end of next month,
55:13
but I don't think that's gonna happen.
55:15
It doesn't seem to be the case at the moment,
55:17
judging by various reports from actual owners,
55:20
which have got very annoyed at them.
55:22
Consumer Champions Witch magazine
55:26
and the lawyers are circling as well.
55:28
So that's all very bad news.
55:29
And then on top of this,
55:31
there's a new recall for Stellantis cars unrelated.
55:33
It's not going well for Stellantis, is it?
55:36
And in fairness, these are for different cars
55:39
of different ages and they...
55:40
What goes wrong with these ones, John?
55:42
They catch fire a little bit.
55:44
They catch fire a little bit, thanks.
55:46
Yeah, potentially, potentially catch fire a little bit.
55:49
But this is not a stop drive.
55:50
I mean, 11 of them have caught fire in France,
55:53
haven't they, so...
55:54
Yeah, but it's hard to tell in France
55:56
whether that was a former protest or spontaneous.
55:59
Flicking a cool whilst out the window and...
56:02
Exactly. Yeah, exactly.
56:03
So it's 28 models from Alfa Romeo,
56:06
Citroën DS, Fiat, Jeep, Peugeot and Vauxhall.
56:09
But the recall is voluntary in this one, apparently.
56:12
So it's not a stop drive.
56:14
So voluntary recall, just...
56:16
Yes, voluntary recall.
56:17
If you don't want your car to burst into flames, got ya.
56:20
That's right. A bit like if you break your leg,
56:22
it is voluntary to go to A&E.
56:27
I mean, I do feel for the Stellantis dealers out there
56:30
who are probably working time and a half
56:32
on trying to get all of this stuff done.
56:34
All of these airbags, and they're told...
56:36
Actually, there's some more that you need to fix,
56:38
and then there's probably some fiery cars coming your way.
56:41
Can you fix them too?
56:45
I just hope there's no more cars for the airbag things,
56:48
I can't quite believe that they'd be the only ones
56:50
that they'd put these airbags in.
56:51
Well, you did say this, didn't you,
56:52
when the third one came out?
56:55
Well, like anyone who's got into a Stellantis,
56:56
or a particular Citroën or a Peugeot in the last decade,
56:59
will find that it's got all the same bits
57:01
as every other Citroën or Peugeot ever got in
57:03
in the last 20 years, you know,
57:04
like that weird radio stalk
57:07
and the electric window switches,
57:08
all exactly the same, going back to about 2006 or something.
57:12
So I can't quite believe these are the only ones
57:14
that have the naughty airbags, but we'll see.
57:18
Dear Odea, shall I try and wedge one more in?
57:22
OK, I've got one more story.
57:25
And I'm going to use news that the popular
57:27
used car dealership behind the YouTube channel
57:29
Shifting Metal, Mr. Joe Betty,
57:32
has decided to close down his dealership.
57:36
And I picked this one because I was very, very surprised
57:39
when I saw the news.
57:40
He published a couple of videos last week about this.
57:44
He's got 128,000 YouTube subscribers, John.
57:49
Basically, he's a far more successful
57:51
YouTuber than I ever will be.
57:53
But he's decided that selling cars as part of that
57:56
is just is is not really that much needed.
57:59
Anymore, he's decided to just go ahead and create content instead
58:04
and shut down his his dealership as a result.
58:07
He launched that business in 2020.
58:10
And you know, if you've seen any of his videos,
58:13
he's often done a weekly diary and talks about
58:15
some of the customers that come in, some of the problems he's has.
58:19
A huge number of people have been following that over the years
58:23
and he's decided to call it a day.
58:25
So I spoke to him about that and just asked him, you know,
58:27
why is he why does he come to that conclusion?
58:30
He basically said he just he'd lost a little bit of love for it.
58:34
He'd found that the customers, you know, going back to the customer
58:37
I was talking about are actually quite hard work.
58:41
And he just found it a little bit too stressful
58:44
and taken up far too much of his time for the returns that he was getting
58:48
and thinks it's far better to focus that time and effort on creating content.
58:54
But as part of that,
58:56
he said he's been contacted by a large number of other
58:59
used cardeers who basically said they're thinking about following suit
59:02
and doing the same. And I just it made me wonder,
59:05
you know, is there a bit of a problem out there in the industry?
59:08
Is there a bit of a problem with for used cardeers,
59:11
especially the smaller ones who have to deal with these these difficult
59:14
customers deal with the hard way is to get stock at the moment
59:19
and and all those other troubles.
59:20
And I wonder whether we see more people just deciding to call it a day.
59:26
I mean, I'm not best to comment on this.
59:27
I'll hand it over to Will.
59:28
But I wonder if you don't feel like that, James, I'm guessing.
59:34
I understand where he's coming from and a lot of these points.
59:37
But at the moment, I'm pretty fresh to it and and happy to keep battling it.
59:41
But I can see how after a few years it will get you down.
59:44
And I can see how people would think, actually,
59:47
is there any point in in still doing this for the returns that returns
59:51
on again? I don't know, particularly if you set your company up
59:55
before prices started to go up on everything and everything got really difficult.
59:59
You know, if you set up in the pandemic when things were very different,
00:02
that's a lot of change to adapt to, isn't it?
00:05
You know, before interest rates were insane,
00:08
before electricity was really expensive, just everything has gone up,
00:12
hasn't it? Whereas you've come into it almost with,
00:15
you know, your tiny coin purse going, OK, I have to budget for every single thing.
00:20
Also, it's not your only source of income, is it, James?
00:22
No, no, that's true.
00:23
And I mean, it's the same with it's the same with Joe, isn't it?
00:26
I mean, he's got obviously got his irons in other fires
00:29
and decided that the one selling cars is not worth carrying on.
00:32
Well, the deal is you're talking to you speak to loads of different ones.
00:35
I mean, is there do you think there's that sort of sentiment out there in the trade?
00:40
As an industry, obviously, the way the story is, obviously,
00:44
the gentlemen's are smaller, independent,
00:47
but the costs base of running the business.
00:52
Like I was talking to a friend who's in a total different industry
00:54
and we got on about the the N.I. changes from April
00:57
and we're comparing levels of cost from an employment point of view
01:01
and in their business, obviously twice the size of us in terms of volume,
01:05
but they're talking like 100,000 pound a year N.I. increase
01:09
based on their staff levels.
01:11
And ours was a 70,000 pound increase from the first of April.
01:16
But what I said to our guys as well is what we need to be mindful of
01:20
is is that filter through into suppliers
01:23
because they're costs are going to go up, our costs will go up.
01:27
And it is cost base of the industry
01:30
stroke business in general is so higher now from, you know,
01:36
your admin teams, your valid teams, the cost of valeting,
01:41
the cost of insurance, just every bill
01:44
during me in June, just about every email or letter that I received
01:48
was cost increase, cost increase, cost increase.
01:52
So again, customers expect more as you alluded to before, James,
01:57
if you're selling, you know, a small number of used cars only
02:01
a month and you get one bad one where you've got to do a buyback
02:04
and you've lost to a couple of grand potentially
02:07
and you've spent money trying to repair it.
02:09
You know, that's a big, big chunk of money.
02:11
Luckily, the volume we're doing, you know, we do get the bad ones,
02:15
but we can sort of absorb that and sort of move on.
02:19
So I do suspect we'll see that more the cost of advertising.
02:23
We're now all jumping on Google vehicle ads.
02:26
So at the minute, it's meant to be a fair cost cost.
02:29
But, you know, the cost of digital advertising,
02:32
that's went up more than ever.
02:33
And we probably feel we've got to do more of it to try and sell more.
02:36
It's it's a vicious circle.
02:38
And sadly, I think some will will just say, look, it's not worth it any more
02:43
and go and look at other avenues.
02:45
I know of a few friends whom have taken on vehicle hire
02:49
to add on to their independence as a as an additional income source.
02:53
So I think people will start diversifying to look further for other income.
02:57
Yeah, no, I agree with you.
02:59
I agree with you, sad, but I think unfortunately true.
03:02
John, that's it for me.
03:04
I've got no more and we're sort of out of time anyway.
03:06
We are out of time.
03:07
So, Will, before I ask your verdict, are there any stories
03:11
you think we should have talked about this week that we haven't?
03:14
And I think the very good stories, the one that did catch my eye,
03:17
actually, out of interest was the I've never seen this before
03:20
back to 25 years in the industry.
03:22
I'm sure it has happened enough.
03:23
Never was the story on the bumper finance
03:26
where they've getting manufactured investment of up to eight million
03:31
paid million. Yeah, that's a very good salesman at bumper.
03:34
And I was wondering if you'd be interesting.
03:36
I could get a million investment.
03:40
I'd be very, very happy.
03:41
But I thought I was quite interesting.
03:42
I had a supplier to the industry who's got manufacture investment,
03:47
which to see, I don't I don't recall ever hearing that story of similar concept.
03:51
So fair play a bumper on that one.
03:53
Yeah, that one piqued my interest as well when the press release came through.
03:56
And that's why I said to the team, I'd like to cover this one
03:59
because for exactly that reason, these these funds that these big car
04:03
manufacturers have got, Suzuki, Porsche, JLR have all pumped their money
04:08
into this into this supplier.
04:10
I thought it was fascinating, too.
04:11
So yeah, fair play to great salesman, as you say.
04:15
Just for anyone listening, bumper is like you're financing your car
04:19
services and your repairs, isn't it?
04:22
Yeah, because I think Nissan, well, I think there's a few companies,
04:25
a few manufacturers started using it, didn't they?
04:27
Nissan certainly did once upon a time you could
04:30
finance your Nissan service on it or whatever.
04:33
It didn't just come down to dealers.
04:35
Yeah, I think they've they work with a lot of manufacturers now.
04:38
Yeah, this podcast was not sponsored by Bumper.
04:41
Lovely. So I'm going to have to ask you, who chose the best stories?
04:46
And I'm going to go for EV cost of repairs, because I think it's one
04:50
that needs highlighting. Yes.
04:53
I think the story was was not fair, but I think it needs highlighting.
04:57
Thank you. That's one all in the series, John.
04:59
One all. Thank you, Will.
05:01
That's very, very kind of you.
05:05
It was about time, about time, James.
05:08
Well, all that's left for me to say is thank you to Will for joining us today.
05:11
It's been lovely to have you on.
05:14
And I'm sure we'll see you again, hopefully a bit sooner than
05:17
whatever gap we left between the podcast live, Will.
05:20
Come to the podcast live.
05:23
I did listen to it live, live last year.
05:25
I couldn't make the actual event, but I did sit and listen to it live
05:30
during during the day.
05:31
So I am hoping to be there this year.
05:34
Oh, good, man. Good, man.
05:36
That will be delightful.
05:38
And thank you as well to James.
05:43
I don't know what for.
05:44
Anyway, thank you for listening.
05:45
We will be back next week with another episode.
05:48
Make sure to subscribe to be notified when that goes live.
05:52
I don't need to talk about podcast live again, because you mentioned it
05:54
300 times, but the link is below to book your tickets
05:57
with a percentage off with the code PICCENTO.
06:01
If you want to check out the stories you mentioned today,
06:03
take a look in the show notes below or head to Cardiomagazine.co.uk.
06:07
Thanks for listening and goodbye.