The Renault Twingo is a small car made by the French company Renault. It's designed for city driving and is easy to park and navigate through tight spaces.
The Renault Clio is a small car made by the French company Renault. It's known for being easy to drive and good on fuel, making it a popular choice for city driving.
Car
Mini
The Mini is a small, stylish car that's fun to drive and very popular, especially in cities.
The Range Rover is a fancy, big car that can drive on rough roads and is very comfortable inside. People talk about it a lot because it's stylish and powerful, but some owners have had problems with it breaking down.
The BMW 1 Series is a small luxury car that is fun to drive and has a lot of nice features. It's good for city driving and comes in different engine options.
A body kit is a set of parts that you can add to a car to make it look better and improve how it moves through the air. It usually includes things like new bumpers and side panels.
The Volkswagen e-Golf is an electric car based on the regular Golf model. It's designed for everyday driving and is known for being easy to use and efficient.
Electric cars run on electricity instead of gasoline. They are becoming more popular because they can help reduce pollution and are often cheaper to run.
The aftermarket is where you can find car parts and accessories that are not made by the car's original manufacturer. It's where you go for upgrades or repairs that are different from what came with the car.
CarPlay is a system that lets you use your iPhone in your car. It shows your phone's apps on the car's screen, so you can easily listen to music or get directions while driving.
The Ford Puma Gen E is a new electric SUV from Ford. It's part of their effort to make more electric cars available and is eligible for a government grant to help buyers.
The Range Rover is a fancy SUV made by Land Rover. It's known for being very comfortable and good for driving off-road, which is why many people love it and keep buying it.
The Defender is a tough SUV from Land Rover, built for off-road adventures. It's very popular among people who like outdoor activities and need a reliable vehicle.
LIVE
The Cardiola podcast is sponsored by AutoTrader. Jon, do you know why I, like nearly 14,000 other dealers, work with AutoTrader?
No, but I have a feeling you're going to tell me.
Well, with around 84 million consumer visits each month, it connects us with more engaged car buyers than anyone else in the UK.
And there's the ability to reserve cars when the dealership is closed.
Ah, so you can stick to your strict 8pm bedtime.
Exactly. And the AutoTrader team are always on hand to offer their insights, ensure we get the very best from our package and ultimately sell more cars.
Well, that's good because you are going to need all the help you can get.
Oi, less of that. Dealers, if you want to find out more, log on to trade.autotrader.co.uk.
Welcome back to the Cardiola podcast. If you haven't listened before, we pick our favorite stories of the week and ask an automotive industry guest to choose whose stories were the best.
I'm Rebecca Chaplin, contributing editor here at Cardiola Magazine.
And today I am standing in for your usual blonde-haired host, John Ray, who is off on a launch somewhere.
I can't remember what country he said he was in, but he did not think he would be able to do a podcast at the same time.
But joining me today is our regular on the podcast, James Baggott. How are you doing today?
Fine, thanks.
You don't like being described as regular?
No, this is strange, isn't it? This is a little bit like couples' therapy, isn't it?
Of course, Scott.
Yeah, but I never see you anymore, so this is a great opportunity to find out about what you've been up to.
You can talk about your little impromptu spa treat that Mike Brewer sorted out for you.
Oh, God.
I did think I was like, what would John have picked out to talk to you about this week?
What can I talk about? But luckily that just popped in front of my mind.
Funny that, isn't it? Yeah, funny that. Yeah, this is all good.
Well, I should probably tell the listeners what happened.
This week I've been out with Mike Brewer this week, filming some stuff for the Use Car Awards.
Did a little bit of a walk around of his new expanded dealership.
But my colleagues, including John Ray of this podcast, had forgotten that the clocks had gone back,
which meant that we ran out of light very early on,
which meant that, unfortunately, I had to stay up in Warwick
and the only hotel that was available was a spa hotel, which didn't go down well with Rebecca, did it?
No, it didn't particularly go down well.
Well, that was at home looking after the children on my own.
I'm doing this for the listeners who might be coming to Cardio Live,
and it might turn out that we'll end up using it as the hotel for Cardio Live this year.
So it's double up its actual work somehow.
I don't want to double down on this, but it was very nice.
It was very nice.
Moving swiftly on, obviously John Ray's not here, is he?
Can you remember where he is?
He's in Paris, looking at the new Renault Twingo.
I mean, he does some strange things, doesn't he?
I'd quite like to do that though.
It does mean you don't get to see his hat, which has obviously been a big feature of the podcast.
Annoyingly, last week, we lost the video recording,
which meant that nobody could see it, and they can't see it this week.
I interviewed Derek Martin this week for a feature about used cars,
and the first thing he said is, John, nice hat.
Oh, there, anyway.
What have you been up to, Rebecca, apart from looking after our children?
Not much, I don't know.
My mind is just an empty hole, I think,
because anyway, I've already described it that way to John.
I was trying to remember talking about Cardio Live,
I was trying to remember what we did last year,
and it's just an absolute blank.
I don't know what's going on anymore.
Yeah, I don't know really.
But I do so much planning stuff, it's not really interesting for people to hear about
planning things for podcasts live in Cardio Live.
Shall we move on to our guest instead then?
Yeah, we can do.
Can I ask you one question first?
I've talked about cars.
I'm sure you've already talked about road tests the year on the podcast,
but you obviously drew, I'm not expecting you to give away
what has won the used car awards, cars of the year.
I wondered what you thought about them as these cars
are slightly older.
Are you excited about the winners of the used car award cars?
Yeah, I am.
I look at them slightly differently now, having sold a few.
We just see the price over the top of them.
Exactly, yeah, having sold a few of them.
And obviously I can't give away what's won,
but there are some fantastic cars in there.
And then they're normally the sort of vehicles
that consumers love,
which means you're going to sell them quickly as a used car dealer
because nobody likes a warranty claim.
So that sort of features quite highly when it comes to this year's winners.
But yeah, no, I enjoyed it.
Mike really enjoyed driving them.
So yeah, that will be revealed in the not too distant future.
You must get some sent over.
But yeah, it's only a couple of weeks.
Yeah, four weeks basically.
But you must get some sent over now
because they obviously they're based on how fast they sell
and things like that aren't they?
That you just go, no chance.
Yeah, exactly that.
Winners, I stand by them are very, very good cars
and I've enjoyed driving them this week.
Excellent.
So that segues nicely on to a serial award winner
at the Used Car Awards, another award that you've had.
Our guest this week is of course, Scott Sibley
of Redcoat Lodge and also of Dealerway.
How has this week been for you, Scott?
Hi.
Very tough, I would say.
I think it's just been a tough few months business wise.
Yeah, just very, very slow for the last three or four months.
People will be pleased to hear that
because I've heard that from a lot of people.
I think so yeah, I think so.
It's our month end of the day,
but it's our financial year end of the day as well.
So it was like a panic to get everything in voiced off and so on.
So I think as far as October goes,
we're finished probably about 20 cars.
We've done over 100, but we did,
we've probably finished maybe about 20 behind where we'd like to be.
So it's been climbing the mountain as they say,
and then we'll start again tomorrow.
Scott, tell those people listening then
a little bit about your business.
I've been up to see it myself,
incredibly impressed by the setup you've got,
but for those people who don't know anything about your business,
explain what you've got.
So we've got three sites with which are within a mile of each other.
We've got an ex-main dealer site at Shiremore,
which used to be high on die,
and see it, I think, back in the day.
So we've had that site now for 13 years, 12 or 13 years.
That holds about 150.
So we've got a sales team on there
and we've got a Bosch car service centre on there as well,
where we have mechanics, MOTs and so on,
valid departments on there as well.
And then the short journey away is the new select site,
which is what we started that as a cheaper range of cars,
but we've moved the price bracket up on that a little bit.
We started off at about 6,000, 7,000 and above,
and we moved it up to 10,000 and above,
but then I think we're probably still missing
a little bit of a trick with some of the cheaper cars,
where there's a demand for them,
you know, for drivers who've just passed a test and so on.
So we're going to have a little look at those
to see how that goes.
That site just does sales and that will hold
pretty good about 80 or 90 on there,
which is nice little site.
And then round the corner from there is the prep centre,
where I'm based, so the prep centre,
we've got MOT lane, five ramps,
and we've also got the body shop in there,
which has got two commercial ovens.
And we've got a big storage yard here,
where we'll bring all the cars and then prep them.
We have about 50, 55 members of staff
and we're trying to sell about,
the business is set up for, you know,
150 to 200 sales a month,
but we haven't been achieving that this year
because of I think what's going on in the world
and the government and the country and so on,
so our sales are a little bit down,
so it hasn't particularly been a very good year,
but you know, we'll battle on.
Scott, that's an incredibly impressive setup you've got there.
Tell me where it all began.
How did you get into the motor trade
and how have you built it into this business you've got now?
So I started selling cars from home,
which is Redgate Lodge,
and I was working for a computer,
my friend had a computer company
at the time selling computer games,
so there was shops and things like that,
and then he asked me would I go and work for him
in that business, which is retail,
which I did that for 10 years,
and during those 10 years,
I would always just buy and sell the odd car from,
you know, buy them from the auction and sell them from home,
and I used to always think I could get myself an extra,
I don't know, back then was probably an extra 30, 40 grand a year,
just selling cars.
I stuck with Reynolds Cleo's because I didn't know anything about the motor trade
and once I just sold those,
I got one advert and I got to know the brand
and the models and the faults
and had a bit of an eye for the value,
so that's all I did was just stick to Reynolds Cleo's
and that worked, so I did that for years,
and then there was a selling,
so many would sell like,
would you keep out seven at home,
and they were selling really well,
I would prep them, my wife would sell them during the day from home
and it worked really well,
so there was a little unit came available,
which is about two miles up the road from where we are
in the small industry,
and we would call it Redgate Lloyd's
the small car specialist,
because I thought if I can just stick to small cars
and have a little bit of a niche
and where it was based,
it took a bit of bed linen,
so it was a little bit out of the north of Newcastle,
so I thought by having, you know,
10 Reynolds Cleo's in stock
and 10 Minis and 10 Fiestas and 10 Courses,
that would be enough to drive people to the business
because they wouldn't come and see one car
that would come and think, well, there's a choice of 10,
so it worked, that little plan worked
and we were up there for about three years
and then we moved the business down to the Shermore site,
which that was a big step,
that was risking everything,
that was a very nervous time,
should I say,
and we went down there
with about 25, 30 cars in stock
on a site what can take, you know, 100, 150,
so we've spaced them all out
and then, you know,
built it up from there, really,
and because it was, we're down in Newcastle,
then the small car specialist,
the little niche thing,
we probably didn't need that as much,
so that's when I started looking at other models
and makes and so on
and going to the options more,
I left where I was working and then I started,
I suppose, running the business,
as a dealership,
just getting all the different makes and models in,
learning as I went along,
probably blew loads of money because I had no experience,
I'd never worked at the main dealers
or in the motor trade at all, really,
so I was just finding my way
and it was difficult, some people would help
and advise and then some traders,
they didn't really want to share, you know,
which paint they were using or workshops they were using
and back then, which was 15 years ago,
I don't think the car sales dealer group
was around the Facebook groups and things like that,
where I think you can learn a lot through,
you know, just reading some of the comments on that,
so there wasn't that then,
so it was a bit of a tough start, I suppose.
So Scott, that's been quite a journey,
you've picked up some incredible awards
over time, some used car awards,
some from lesser known award ceremonies,
but you've picked up many over the years,
what's the secret to the success?
I think awards breed awards,
I said that from the start,
so I think if you get your name out there
and you start applying for some awards
and you constantly attend the awards events
and you're there and if you put the,
what's the word, I've lost the word,
the application that you submit the awards,
you put that in and put a lot of thought into that
and a lot of detail into that
and look at the category
and look at what you think the judge is actually looking for.
I think that's half a chance
because I would imagine there'll be a lot of award entries,
that's the word,
where they're not answering the question
for the judges to read,
so I think take your time putting all the entries in properly
and then just hope that you're in one of those short lists
or the finalists.
And you mentioned at the start of this conversation
that it's been a little bit quieter for you.
What do you think's happened to the industry?
It certainly dropped off a little bit for us
since probably September time.
We had a very good September,
but as soon as it changed into October it got quiet.
What do you think the problem is?
The only thing I can put my finger on,
I think people are hanging on for this budget.
I don't really get into politics and things like that.
I only really see what I see on the TV,
but this Labour Party,
they don't seem to be doing a very good job
and everything what's going on in the UK really.
I think it's a bit doom and gloom out there,
so I think normal consumers might be concerned
that the tax is going to go up
maybe, I don't know,
ten or a month or something like that on the wages
and whatever big tax issues are planned,
so I think people are maybe just holding off a little bit.
That would be the only other thing,
because kids are back to school,
I know it's been half term this week,
we always look in the motor trade for different reasons why,
but that would be the only thing I could think of was.
The fact that the budget is so late this year
is not helping,
it's getting very close to Christmas at that point in time.
The January sales really now at this point in time.
It does normally kick off in January, doesn't it?
Are you sort of looking forward to that now?
Well, sometimes we've been having quite a good December,
the last maybe six years,
December's used to always be
just like a bit of a switch off waste of time,
but I think people do a lot of Christmas shopping earlier now,
and I think the high street,
they bring all the sales on,
because they're competing against each other,
like in September or November sometimes,
and a lot of people are getting their Christmas shopping done early,
so I don't know if that's helped with December sales,
or for us, December's haven't been as bad as they used to be.
And then January,
usually the first two weeks,
is a little bit slow to get it going,
and then it normally takes off.
I seem to remember January this year,
we didn't get the massive increase what we'd normally get.
Are you finding it hard to get hold of stock at the moment?
What's the deal, as I say,
are explaining that the auctions are a little bit softer at the moment,
but they're still struggling to get the stuff that they want.
What are you seeing?
I think stock's probably always a problem,
but I've got two buyers,
and they look at Carwell and Motorway,
and then I do the auctions.
I was just on the auctions this morning,
and as everybody knows,
if you can buy the cars privately,
there's a better selection out there,
and you have got a chance.
The negatives are when you arrive there to get the car,
and it's not as described.
You've got that hurdle to get over.
And then the auction cars,
you can sometimes get the odd problem with one,
because they're not driven and you can't drive them.
Is one better than the other with prep?
Probably not, I don't think.
I don't think one's particularly better.
We've bought private cars and had some horror stories
when, like, say, Carwell,
Motorway used their transport drivers
to drop them off and the engines are gone,
they're outland, you know,
where that car went through the auction,
the appraisal might have picked it up,
so it's just a bit hard,
so getting the choice of cars,
I suppose it's just cherry-picking cars
from all the different platforms
to try and get them,
but in prices, yes, it's the usual,
the nice cars with the spec,
everybody's fighting for those ones,
so they're more money,
cars with higher miles don't seem to do particularly very well.
You've got a big team now,
as the business has grown,
what do you spend your days doing?
Is it a case of you can pick the stuff
that you really enjoy doing now?
I would say I spend my day
approving cars,
I would probably work closer with the buyers,
so, you know, we go through what cars
we're going to buy,
what we're looking for,
and then I stare at the screen
for hours looking at it all priced correctly,
I've got like an OCD thing,
so I do that every single day,
I do price changes every single day,
even if it's just £100,
I'll change the cars and
be more aggressive with the pricing,
really from the start,
so to try and get the days to turn down
and get the cars moving,
so we'll make work on a smaller margin,
but we'll get them done, so I sit and do that,
and then I work with Anthony,
who's our marketing manager,
we've obviously just launched
which is quite new,
it's under six months old,
so we're tinking around with that,
I don't think there's any rule book on it,
but we're having a little go behind the scenes
of the dealership,
and we're doing like that.
Are you enjoying doing that?
Yes, it does a bit of...
I suppose it's another thought
what you have to do,
think of what the episode's going to be
and how well it's going to be received,
and
yeah, you look at the people who do it well,
trying to get inspiration from them,
we did something with the thumbnails this week,
we did one which we actually quite liked,
it was to do with Ben,
and the video didn't get many views,
so we changed the thumbnail around,
so I think that we had Joe Betty on one of our podcasts
and he says it's a bit of an art,
getting the thumbnail right,
without having the clickbait,
everybody wants doom and gloom like I bought a Range Rover
and it blew up, so everybody's going to click on that,
you don't really want any happy stories,
there's a balance where we're trying to do
a behind the scenes
day in the life of a car dealership
type of episode,
and then we'll do some episodes which are more
like what we would call a feature,
so it's going out this week,
we've got a BMW 1,
so use a new shape, a little white one,
we'll call it a red gate lodge revamps
and we've had that car fully re-sprayed,
body kit wheels
and so on,
so we recorded the episode for that,
so going off the legs of Matt Armstrong
when he buys a car and it's been in an accident
and he's fixing it and things like that,
he seems to get a good
viewing numbers up,
so we'll put that one out this week and see how that one goes.
There's a lot of time and effort goes into these though,
isn't it?
You really do have to think about producing content,
I know that,
only too well.
Why are you doing it?
What's the thinking behind
launching the YouTube channel?
I don't know,
when you're quiet,
you take all these boxes in your business
and you think we're on TikTok, we're on here,
we do this one, we're on AutoTrader,
we've done this, we've done that
and it was something which we didn't really have,
we set the channel up during lockdown
and there was a friend of mine who does
wedding videos and he had no
obviously weddings on, so we did some car review videos
which we quite enjoyed doing
and we'll put those out there,
but we should have really pushed the channel more.
I think it was probably Steve
and my partner were dealer way
where we started doing the podcast
and then he was saying to me,
do you not watch this one and that one on YouTube
and I said I don't even watch YouTube
and I've never really watched YouTube or had an interest in it
and he thought I was mad because I didn't watch YouTube
so I started watching some of these dealers
from down south do them
like Joe, Betty and all these other people
and they've got these big channels with big followers
and then I was speaking to Joe
and obviously messaging to him
saying how
the idea was with our channel
it's not for a monetary value
I know you can get money and all that
but it was more just to
encourage customers to come in
and think they're a nice bunch of people
they prep the car as well
and they've got the body shop
and we'll go there for a service
and we'll go there to buy a car
we'll go there for and so on
so that was the idea
to get more footfall at the business
where the idea came from
for that product
So dealer way
it was myself really, I was struggling
to dispose of my part exchangers
we would have two or three traders
we would contact
which is very long winded, it was hard work
trying to get bids on cars
and then they would say they'd have them
and wouldn't turn up for them
it was just like a hindrance
and then with us being an independent dealer
not a main dealer when we send them to the auction
it would just go in the POTX direct line
up in the auction, so the cars
wouldn't achieve what they were really worth
and I used to always say if you could put a piece
of paper on the window and put them in the auction
and say, you know, we'll check the gear box
it drives fine, this is good and that's good
you know, you'd have more of a chance
but you can't do that with the auction
so I set up a Facebook group
which was just more for a bit of fun
really POTX Gold and I thought if I put all my POTX
exchangers in there
I'll dispose of them that way
and we'd just start doing them like that
important thing was to make sure they'd been driven
which would give a
potential trade buyer
confidence in coming up and buying the cars
because we're putting our name to it
also they could come and buy and drive
the car before they paid for it
so that's where it started and I would start
and put the cars under the POTX Gold group
and that grew and we got to about
I think there's about 5,000 or 6,000 dealers
in there or members
and it kept on growing and then I messaged
my business partner through
for a dealer way and I'd said I had this idea
for an idea
where we would
possibly migrate the people from the group
over onto the app and would have to
develop an app and because Steven's
obviously very technical and I'm not
he was the perfect choice so we knew each other
for a few years previously
so we just like
mapped out what we needed this app to do
and looked at what was out there in the market
which Steven really did
and he tried to register with different
the competition if you like
some people were getting back to them
I don't know if it works, the odd one might have got back to them
and to see about setting up accounts
on their systems and
we just thought there was an opening there in the market
for it to help, it was mainly initially
was probably to help independent dealers
dispose of their POTX exchanges
because unless they had the favourites
car dealers coming around or
put the cars in the auction
sometimes there wasn't an easy way out
so that was the
thought behind it
You've changed the pricing structure recently haven't you
and
when I look at it
it's a cheap way for people to buy stock isn't it
and actually
to dispose of stock, you don't charge people
to dispose of their stuff do you
No it's free, it's free to sell
and then it's £99 plus fat
is a bias fee and
I think you know auctions are £5-600
and you know motorway car well
so compared to the
the main people out there
who would offer in that service
it is much cheaper
and
we've got operating costs there
we've got staff there to cover
there's costs for the app
there's ongoing development with the app
that you have to pay for maintenance on the app
so we do have a cost
so that's how we had to look at it
the original plan was to have it as a subscription channel
where you just pay £80 a month
for as many cars as you want
and we thought a lot of the people from the
Facebook group would have migrated over
and a lot did but there was obviously
thousands who haven't
and I think what we learned from the early days
was a lot of people on the Facebook
they're buying cell cars on Facebook
and they might not be fat registered
they might not have trade insurance
and they just do it for fun
in the background like I used to do
about in the day
so it's like a different market
because you actually use
dealer way yourself to sell
your part exchanges
and you do very well out of it don't you
it's a profit centre for you
am I right in thinking that?
I've got Stephen downstairs
who's one of my buyers and he does the vehicle
disposal so when he puts a car on dealer
I give him £25 bonus
so he just puts a log through and puts his commission
through at the end of the month
and he's fanatical about really quite likes doing them
so he'll wash them down
take them out for a drive
does the full description then put them out there
in our cars it's rare we don't sell a car
it's very very rare and if we don't sell one
what we do is we then prep out ourselves
and we'll just retail it
so I think there was a Volvo on there
the other week which didn't sell for whatever reason
I don't know why and we prepped it
sold it I'm sure we got like £15
under a £2 grand out of it
it was like a missed opportunity
for somebody who just didn't fancy
the look of the car
yeah and we sold them
when I used to put them on the group I used to joke and say they were gone in 60 seconds
because there was a lot of people
would be frustrated because they'd missed the car
so I was putting the part of exchange in the group and they'd be like
I would have had that I would have had that one
so when we built the app we put an auction feature in
or buy it now so every car I put on
I put it on as a 3D auction
and I just
I'm not greedy with it that's the key
it's nice to get trade profits
and everybody's out here to make money in the motor trade
but I put it on there
I work out the maths and I think it needs 500 quid
to the pain it needs that so
auto trader retails that
so somebody's buying it
they want to be like £15 under a quid profit
and that's how I used to always do it
and leave somebody some margin in the car
and it just always worked for us
and what we do when I put them on a 3D auction
I put the reserve on
very
like low sometimes I put the reserve
at less than what the car actually stands me
so I could be putting it on there
I don't know two or three and a quid loss
but what I found is when the car meets reserve
when people see that that car
is going to be sold more bids starting coming
for those cars
and a lot of car dealers I speak to
have that sort of network of
buyers like you used to have
and they just find it a little bit easier
to do that because it's simply a case of
take a picture of the car in a couple of details
and just fire it out on WhatsApp
you're trying to make D the way
as easy as that aren't you I mean
you've seen some things that your team are doing
where dealers can just send
their cars via WhatsApp is that right
yeah we'll do the
like the concierge service what we call it
and yeah the team
in there they'll list the cars for
dealers so if dealers didn't have time to do it
they can do it they also do
if a car doesn't sell
and it's not far away
from the reserve they'll speak to the buyer
and the seller and they'll say you know
have you got another £50 or £100 we'll get there
they'll if you like get the deal on
in the background so they do
that and that's where we've seen
the WhatsApp groups have been really good because
we'll put a car on there where it might say
you know it's only £100 off reserve
and somebody looks in the WhatsApp group and they think
oh actually they might have missed it through the app
and they'll have a go at that so the WhatsApp group
has been really popular
and I think the people who are putting the cars on there
if the car hasn't met reserve they know that
we've got these WhatsApp groups with
you know a few hundred people in there
in the background to get the cars sold
where's the big challenges
with that business
I mean it's a tech business isn't it
so it must be very different to what you used to
I mean where are the challenges
I think the main challenge is getting cars on
because we've got buyers on there
we'll have like I don't know
I think it's about three three and a half thousand
accounts at the moment which are set up
and there's more buyers on there than there are
sellers
and we've got main dealers on there with accounts
super car you know type of dealers as well
and
so there's a lot of
there's a lot of buyers but when
the challenge is getting more cars on there
and I think what the problem is I think
a couple of things is I think the motor trades
sometimes people are creatures of habit
and they'll send the car to a traditional auction to sell
or they'll ring the trader friend
down the road and they don't like
change and then the other challenge is
if people tried for the first time
they've got a car
which they think we haven't been able to retail
this and Billy the trader
doesn't want it and if I send it at the auction
nobody's going to buy it in there because the wrong colour
let's put it on dealer way and see what this dealer
way is all about and dealer way isn't magic
that's the thing and so somebody might use it
once and go oh that was a waste of time
the car didn't sell but it was probably never
a seller do you know what I mean
so if people put some some cars
on there what other people want to buy
that have a better experience I mean
we've got main dealers on there there's a dealer
a scooter dealer and they've sold over a hundred cars
they love it and
you know you put your car on
and depending on how you set your auction
whether it's one day or three days
you can sell their car and they've picked up and gone off site
within two or three days may not
within two or three days gone money in the bank
I get the review because I get the review system
going through and I build my reviews up
and then I send them a review who's bought the car
and it just seems to work
I find it really really easy
yeah I mean I've tried it
I've sold a Ford KA
that was sticking about
sticking around for us we couldn't sell it
I'm not sure why stuck it on dealer way
it was like you say gone in three days
and we got back what we paid for it
which was what counted really okay we didn't make a profit
but we just wanted to wipe our feet
so I was pleased with that
the other thing is I just wanted to touch on with this
is you've mentioned there those low fees
you know 99 pound for buyers fee
I mean if they're people are buying from auction
at five 600 pound fees
surely that means that the person selling the car
is getting less for the car
correct correct yeah
because all dealers work retail
back so we look at a car in auction
a traditional auction and we'll say
well first of all you've got your auction fees
well you've got the VAT first of all
but you've got your auction fees which are five or six hundred pounds
you've got to take that in and then
bits of paint work, alloy wheels and
before you actually get it back for your workshop prep
so that's the
the sellers really
paying the auction fee, ultimately buyers
getting the fee to pay
but the seller is getting
five or six hundred pound less for the car
and if you're a small
dealer group and you're disposing to say
twenty or thirty cars a week
and you're getting five hundred
pound less per car, across the year
it does add up
but as I say creatures are habitant
you know you get your pot exchanges
on the weekend, you ring the auction and you say
can you come collect these, the turnip on the transporter
and maybe it's the Wednesday or Thursday
they then process them through their
online system and then if it sells
first auction it might
sell and then you get paid the week after that
so that's a two week process
providing the car actually sells straight away
on dealer way it's
you know it can be one or two days and the car's gone and the money's
back in your bank so when you've got dealers and they've got
you know huge funding and stocking plans
and they've got all this money tied up and they might
end up having three or four hundred grand
tied up in pot exchanges on the way to the auction
waiting to sell there's a way of getting
that off there by doing that
but I mean I always said from the store dealer way was never there
to take from the auctions
or replace the auctions it's just an alternative
it's you know it could be
a faster selling process
because the auctions will always be there and would always need the auctions there
and when you know on dealer
where we say the cars are driven
and you know if there's you know
various faults with them we're very honest
and truthful with them auctions putting through you know
they've got the grading system but they couldn't be expected
to drive you know 300 cars
it's impossible for them
so the auctions will always be there
and they're a massive part of the industry
bit of a mindset shift
for some dealers I think they just need to get
their head around it and it sounds like they should
give it a go if they want to do that
plug time Scott where can they
find out more information
well if they're just going to dealerway.co.uk
and then if they click on that to set up an account
you can upload the
insurance details and you know your account details
there's two levels of account there's gold and silver
silver's for the people
who haven't got you know motor trade insurance
and VAT and things like that
and then your main account holders
you just set them up and just set up your profile
and then set up your filters
there's a lot of dealers don't set up the filters
so you can get filters set up with notifications on
when there's cause what you're looking for
it should just notify you when somebody lists one
but with you know
we sell lots of cars through dealers
through dealerway and there's
a way as a platform is selling cars
every single day so it's proven
to be you know very popular
but I think it's for dealers who haven't
used it they need to you know let you
just log on get an account
set up and then put some you know have a
play around with the app we've also got
I mean Martin and Lee they were in
Cumbria last week and they were speaking to some dealers
over there and what they can do
is they can come out and visit dealers
and they can spend a day at a dealership
and what they do is they'll work out who the disposal
manager is or the head valader
whoever's going to be responsible for putting
the cars on and they can spend a day with them
and just show them how the app works
how to photograph a car and so on
I mean we've got hours down to about
I mean not the test drive but the photograph from
the cars and the upload it's about
10 minutes if that
but if you're disposing
through the auction and your auction
you know you're 500 quid less
on a car so Stephen gets his
25 quid I'm still better off
it sounds like it's worth the effort
that was a very solid plug there
Scott thank you for that I wish
you all the best with the dealer way business
and good luck in the used car awards
that are coming up in the not too distant future
and thank you for joining us
today it's been nice to see you
thank you thanks very much
super right Rebecca probably
time for some stories
now a quick word from one of our
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John guess what
oh god you bought more ducks haven't you
no ducks John
wrong there I've actually got a new
habit I've signed up for dealer way
alongside more than two and a half
thousand other rated
and vetted car dealers to sell my
trade part exchanges
the site is designed for dealers to sell their
part exchanges for more money quickly
and easily there's no sellers
fees and buying a car cost
just £99 one of the cheapest
around and when I haven't got
the time to list the car myself I can
even watch out them the details and they do it
all for me
that sounds awfully familiar so
are you selling all your stock there now
not exactly John but if I
do have a sudden influx of
kia pecantos I know where to send them
dealers can find out more
at dealerway.co.uk
now back to the podcast
okay so this is how it works
James and I have both chosen
our favourite stories that have appeared on
Cardi this week we don't know what each other
have chosen and we are going to take it in turns
to reveal our stories
and have a little chat about each and at the end
our judge Scott has the final say
on who is the winner
so also if you enjoy today's show
do make sure to
subscribe follow whatever you've got
and leave us a review wherever you listen
James is going to go first
I don't know if he won last week but
he was on the show last week so I think he should go first
sounds like I should do as I'm told
I don't want to go first
I go first
I am going to start
with some breaking news
Rebecca I was going to do this one
sorry but this
is news that auto traders Catherine
fares is to leave the business
to take on the CEO role at
moon pig what a change
that is a big change I was
shocked when I read this
so shocked because I spoke to Catherine
yesterday for about an hour
for an interview on the phone
and she didn't mention it once
because she couldn't be allowed at all
wouldn't have been allowed
moon pig and auto trader both listed businesses
and she'll be taking
over from the exiting
CEO
I'm not sure it says when she's going to be joining
now I was wondering that
but I think it's probably
reasonably imminent
the current CEO announced in June
that he's going to be stepping down
search began and Catherine
has been chosen
for that role the reason
I picked the story is I just think Catherine has been
such a great force for the automotive
industry she's been a fantastic
voice for car dealers
we've had
lots of robust and tough conversations
me and her
when they've launched something
when there's been a price rise
when auto trader has done something a little bit different
and she's always been absolutely fantastic
at representing that
company and putting across
their opinion I think she's going to be
massively missed
by auto trader
and I was just really really shocked
when I saw that news this morning
I think the automotive
industry will be
ever so slightly poorer for her
moving on to moon pig
what did you think Rebecca because this was
big news that broke just before
we started recording wasn't it
a couple of hours wasn't it came out
I just think it's going to create
a big void at auto traders
big shoes to fill we obviously don't know who's going
to take over her role
sometimes things can this can
sort of force a bit of a cabinet reshuffle
or whatever so
yeah could be
quite an interesting time
at auto trader with things moving around
I guess we don't know how much visibility
they've had on her making this
move as well she might have had to
keep it a secret until like this morning
very different business isn't it
to go from cars
I don't know enough about moon pig to
cars to cars
I suppose there's only one letter difference
so maybe it makes it
a little bit easier
it makes it a little bit easier for her
I don't know what to say to that
Scott what do you think
you've met Catherine quite a few times
I'm sure what do you think when you saw this news
yeah I seen the news this morning
on the
on your whatsapp what comes around
and yeah I was shocked I didn't see that coming
and she's lovely she's really nice
and I totally agree with you
she's been a
massive there for a lot of years
when she first joined she came up to see us
she got the train up and we showed her around
she was visiting a few dealers
and I picked her up from the station
and we showed her around and
she'll be a big miss at auto trader
I don't know who would
somebody a new or somebody gets
you know promoted up or something
I don't know yeah she's been there
eight years I think so yeah
it's been a long time
it's not going so fast
it does
right your story
over to you
I am going to go for one of your stories
which is the news that you put out this morning
about electric car prices
rocket as you this car prices
are on the rise once again
it's a bit of positive news
I would like the use of the word
rockets and capitals in the headline
it felt very OTT
but yeah so this is news from
Picasso James spoke to Darren Martin
we've said the lovely, lovely
Darren Martin because he will definitely be listening to this
he said
that EVs are the strongest fuel type
I think there's definitely a wave of people
looking at electric vehicles now
in the used car market and that demand
definitely seems to have picked up
there's some really good value cars
I would always say around £15,000
for a three-year-old car is a real sweet spot
and there's lots of EVs
that are now below £20,000
so yeah I just thought this was a very
interesting story if you want to take a look
you can go watch the full interview that James did
on the
YouTube channel or on this story
but yeah it's just interesting to see because we've had a lot of
written a lot of stories
so many stories about
used car prices being flat
all going down slightly
lots of things where it's very, very small but to see things
going up a little bit again I think it's interesting
particularly with EVs
and I just wonder if it's the Zak Polanski effect
because James doesn't believe that the Green Party
is so popular as well
so who affects
Zak Polanski
what is the Zak Polanski
okay no I'm just going to move on I was making a joke
because you don't believe greens are popular but
this is a separate conversation
don't bring this into the podcast
but no I was surprised by this
EV prices rising 2.9%
in October that was
equivalent of £600
and we've tried a few
lately you know we've just bought
our second e-golf the last one
we had we could have sold
ten times over we had so much
interesting because I always ask
used car dealers
about how they find electric cars
and I get
very mixed feelings so this felt
I don't know
I found it sort of hard to believe but
I've been interested to hear what Scott thinks
me too Scott what's your take
on electric cars do you sell them
we do well we stock them
selling them is a different story
we just
I don't know
I struggle with them
I don't know if it's the north east
where it hasn't quite
where people haven't grasped up here
there's plenty of electric cars up here
so they will filter in
they will evolve
but we don't particularly do
very well with them and we're aggressive with the price
and obviously there's not a lot of prep
you know tyres and you know usual
things like that but
as I say
we're having a try but it's difficult
I've got a hybrid my cars only done
2,000 miles and you can drive
50 miles on it on all
electric and this morning
it had a little
moment and the
electric system went down
so I had to drive on just petrol
and the engine was shaking and everything
when I pulled in and the other cars
were like brand new so I left it
for a couple of hours and then I went back and then the
electrics decided to work again so
I don't know what that was all about
I mean that sounds like a
Land Rover product so
it is a JLO
that's all good isn't it
it's under 3 year warranty
so yeah I thought
if it did it should I ring Land Rover Assist
they're normally really good
or is it a matter of just going through the dealer
and seeing what was happening but I started up at home
from the app on the cold morning so
I don't know if it was something to do with that way
it was running on the petrol engine then I've got in
pressed it to go into EV
and it didn't want to switch over
can I throw something in sideways
do you just not think that new cars
they're just not very good anymore
I didn't mention this to you James but the Q7
had some fault the other day
where yesterday when I drove it to New Forest
I just don't think that
the electrics ever seem to work on stuff anymore
well they're a lot more complicated aren't they cars
these days and that's not good news for you guys
though when they come round again to be sold as used cars
no it's not
can I just touch on those
electric cars a little bit further I mean the market
is obviously heading there
by 2030
only electric cars can be sold
it's not going to be long before dealers
like you are going to be just selling only
electric cars does that worry you a little bit
or do you think
there's still going to be a huge market
for petrol and diesel where those prices
are going to rock it
yeah I think there'll be a market for petrol
and diesel and there'll be people who'll just be
I'm not having an electric car
I've always drove a diesel or a petrol
and I think that'll be strong
definitely in the North East
and then there'll be people who
they'll try the electric car
where they've never had one before
or the neighbour gets one and they actually think
actually these are all right
and they're quite nice and
as long as they've got the range and so on
and they can charge them up
I think obviously where it's being said
of course the UK
some people can't have them if they're living
flats and things like that it's not ideal
and if you're living on a street
with cables over the path and
some people it's not perfect for
but I suppose
yeah the Volvo and our
four-coat will end up being electric
eventually I suppose
I think it's one of these things where
it's going to be a massive boost to things like
servicing and aftermarket where people want to hold
onto these things that they want to keep them
the latest tech and all that sort of stuff
like people who won't be without carplay
now putting in those aftermarket things
I mean there's a shortage of good mechanics
in the industry
a lot of them left during
lockdown and went to BHCV
drivers and do whatever they did
but when you look at bringing
a student or an
apprentice in
to work on petrol and diesel cars which are
on their way out
they're probably not going to be very interested
in that so then the electric ones
I think you've got to be a bit more switched on
about tech and things like that to
encourage what they're doing and how they're doing it
you know
Shall I move us on?
Yes if you'd like to. Excellent because that's how
the podcast works I will do that
so I'm going to pick a story from
my sub-stack which is slightly unusual
but it was an exclusive so I'm going to pick it anyway
so this is my sub-stack newsletter
that goes out every Friday and
this week we spoke to
Vauxhall's MD
Steve Catlin who basically
gave us his take
on the electric car market
and quite how tough it still is
out there at the moment
he's obviously got quite a few electric cars in his portfolio
to shift
and he's hoping for a little bit more
help from the government
so in quite a wide range in chat
he told us that he fears
that the ZEV mandate that's ramping
up next year which I forgot
was going so high
it's going up to 33%
of all new cars have to be electric next year
there's one third of all cars
have to be electric
that's quite a target
he's worried about that
he thinks he's unachievable
he's laying the blame for much of the slow uptake
at the door of poor charging infrastructure
and he's actually called
for a much more generous electric car grant
I'm going to start with that electric car grant
because obviously
that's got two different levels
the £3,750 and the £1,500 one
we're now what probably
a couple of months maybe a little bit more
since it's been launched maybe three months
there's still only two cars available
for the full £3,750 grant
which is a Puma Gen E
and the E-Tournaio Courier
second car nobody's ever going to buy
Vauxhall has got
six cars eligible
but they're all for the lesser grant of £1,500
so we asked him about this
and he said that he thinks
the electric car grant
is a significant amount of money
he would move the needle very quickly
if it was the full amount of £3,750
he said the £1,500
is very welcome
but over a four year contract he says
which is how most people buy their cars
it's actually not as much money
as you think
he asks is £1,500 enough
to move the needle in the way that we want it to
so it sounds to me
that he would like a little bit more money
he'd like a few more cars eligible
for that grant and I can't say
I disagree with him
just going on that 33%
target
that is a big change
he says that
that's eight short weeks away
and when you look at retail
sales of electric cars
it's far lower than that
33%
he said there's a lot of work to do
in a short space of time
and the government needs to keep an open mind
about the scale of the ambition
that is necessary
he's hoping that there might be an intervention
from the government next year
he says there's hoping that there will be
a conversation in the next 12 months
because when one in three
cars needs to be electric
and the industry is not at that level
at the moment he says
there could be some problems ahead
so an interesting conversation
with Steve Kaplan there
he's clearly
worried about it
speaking out in detail
we don't often get that
we don't often get MDs talking out
in this way
so I was surprised when I read these comments
and heard from them because it was James Baxley
who did the interview but I've included it
in my sub stack
and I think he's right
I am a little bit worried about it
one in three new cars next year
needs to be electric
I can't see it happening
what do you think
would kill the industry
because the easiest way to get one in three
is to sell less cars
I don't know
I find the whole thing painful
the whole thing's been mismanaged so badly
like you say the electric
car charging network is shoddy
and we've been saying
even the government has been saying
for probably a decade how bad it is
but they've not actually done anything about it
I know we're talking about two different
sets of ministers
or whatever about
five different prime ministers or something
and I just think like
they need to make electric cars more affordable
they need to make new and used electric cars
more affordable so people choose them
they need to make charging more affordable
and then it comes and the whole reason that
charging is too expensive
is because electricity is too expensive
because that's been mismanaged like the whole thing is just
car manufacturers
and dealers being put onto
being told they have to sell these things
they have to make these things and it doesn't work
and I mean I love electric cars
I like driving electric car, we've got an electric car
but I just think the whole thing is
not, it's been done in such a bad way
that people just aren't going to make the move unless
they're made a lot cheaper and electric charging
is a lot cheaper so
What do you think Scott
what do you think needs to happen to move
the needle as Steve Catlin says
Yeah I think the whole thing is just frustrating
it's just that's the word probably just frustrating
the whole thing
the infrastructure is not there
and then they're putting
pressure on the manufacturers
to do these things when they haven't got the infrastructure
there and I still think
that there might be some kind of a super fuel
around the corner or something like
cleaner fuel
I know there's different people working on
that type of thing so
I mean if that came out
in a fuel it would probably kill all the electrics
and if you could go to the fuel station
and just fuel up like you normally do
and you've got your range and if it was
cheaper than Peral
and you didn't have to worry about charging it
and flat partries and all these different things
that might change things around
Well Rebecca let's leave electric cars
over to you
I haven't thought far enough ahead for this
I'm going to, well I'm sort of picking up on some stuff
that we've already said about
all challenging the industries at the moment
and like what's around the corner
and I'm going to turn into a shameless plug
for our NADA 2026
trip because I wrote a story about that this week
I can't remember
what it was that
Scott said that reminded me of it
but I did a story this week
basically looking into all the different stuff that's going to be going on there
and obviously we've got people
different dealers and suppliers who are coming along
on the trip and talking to them about what they're interested
in seeing and what they
are looking to get out of it it's sort of what sparked this
but there's lots
of interesting things on from like
obviously they're talking about implementing
AI like is it actually the future
but also things, oh no and that's what it was
that made me think about it was about
hiring the right people and this sort of
because it's a problem that they have over the pond
in America as well
it's really technicians
getting the right technicians because
there's so much change in the industry
and it's also I think
a job that people don't want to do as much
even though I always think like being a mechanical
technician is really like a
very technician technical job isn't it
it takes a lot of skill
and there's people that just don't think of it that way
and that's why it doesn't
probably partly maybe a pay thing
but it doesn't necessarily attract enough people
so yeah they've got whole
they call it a track for these different things
so they've got like a hiring track which is all about
things about like
building culture
and the right people
building inclusive workplaces
but just like how's the best way to find
people that would fit into your business
but yeah I mean like you've been before
James haven't you I don't know if you have Scott
but there's so much that goes on there
to cover all different parts of
the business so yeah my story
there's a very long list I'm not going to go through everything
but yeah
Are you bringing this up because
I'm going to be going away again for two weeks
and you're really angry about it
it sounds like
it sounds like a little
bit of a subtle dig
I don't think it did sound like a little subtle dig
but obviously it's playing on your conscience isn't it
as I mentioned to you yesterday
I'm clocking up all these
days
and I won't be taking them in loo
so when I disappear for six months
that's just me
I've just been accumulating all these days
sorry Scott
you've had to deal with this
sorry people listening
Shall I move this on
unless you've got any comments on that one Scott
because I'd like to wedge one more in
the only thing I would say when you're talking about technicians
I think they've been massively undervalued
for years and years
they never got paid enough and what they actually
do and their abilities
stripped down these engines and so on the scale set
and how much they got paid
they're always like the lower end of the trade
and I think it was only since Covid
when there's obviously and
Brexit where a lot of these European lads
they went home and so on
made a shortage in the industry where
obviously to attract good talent
you have to throw money at it
so I think a lot of these mechanics
they're getting paid more now what they're worth
and it was very
underpaid previously
When you think about how much that part of the business
makes for all businesses
it's worth having the right people isn't it
Superstars
of the industry
I'm going to just wedge one more in
have we got time for it
I'll just do one more then
and that's news that Group One
is going to be ditching its JLR
franchises with all sites
to be phased out over the next
two years
I was incredibly shocked when I read this story
I was out and about
at the time this WhatsApp came in
in our WhatsApp group and this was news
that Group One Automotive
is going to be exiting
all of its JLR franchises by 2027
a move confirmed in a
staff memo from the UK CEO
Mark Rabin
is the former Looker's CEO
that's moved to Group One
the business said it's going to sell
or relinquish all its JLR sites
including locations in Guildford
Watford and Derby as part of
a wider portfolio review
but it's addressed to the decision
is not a reflection on the brand
the news came alongside
the company's quarter three results
which showed some very strong
UK sales growth
used car volumes up 19.3%
which is very impressive
but it has
cited some continuing challenges
and a 20.3 million dollar
obviously they're in American business
restructuring costs so far
this year JLR told us
that it's working to ensure continuity
of service at those sites
but yeah like I say I was very shocked
when I got this
JLR franchises for a long time
have been a jewel in the crown
for car dealers
they've made businesses
a lot of money they sell
luxurious products
with healthy margins
that were really in demand
we joke about the reliability
but the customers are incredibly loyal
they keep coming back
and stuff like the New Range Rover
New Defender have brought in a lot of business
with a lot of money but I think the problem
just looking at this from the outside
is that the sites that these
JLR dealers have to operate
are huge aren't they
those dual arched franchise show rooms
massive massive sites
and actually are they paying their worth
you know are they making
every square meter
of that site work
or could these businesses like group one
fill them with
a few different franchises
and make even more money
and I think reading between the lines
that's perhaps what group one is going to do
I think they'll probably end up
re-franchising those sites with
possibly some Chinese
incoming brands
I was shocked
and I had a few messages from other dealers
that read the news and were shocked too
because you know JLR franchises
used to be the one that you really really wanted
not the ones that you wanted to get rid of
so I was surprised
what do you think Rebecca
can I just quiz you about it quickly
you did answer one of my questions there
about what we're going to do with the site
but how many do they have
locations in Guildford, Watford and Derby
there's not very many
I did read the story but I've sort of forgotten it
it might be a few more than that
and how many have they bought in the last couple of years
quite a lot
did they buy, I can't this is terrible isn't it
did they buy
I can't
it's all mixed up in my head
I just wondered if they were like recent acquisitions
or something and then
they currently have 10 locations
Guildford, North West London
Watford, Sid Cup
South End, Derby, Kingsland, Norwich Chester
and Preston
I think it's a strange move because
they are very expensive
sites to invest in
the amount of money they've had to invest in those sites
but then if maybe if they were acquisitions
and I am sort of remembering that correctly then
that's not a group one
cost is it
it's a thing
when they've bought it over but
I agree it seems strange but
I'm the sort of person
that would ever run one
I wouldn't want one
really
just because of how much they are
and we talked about this
last time I was on the podcast when Jo was on
I would never want a franchise
because the idea of someone telling me
how I could run my business
or like turning up and going
so good news you need to invest £5 million
because we've changed our logo
and you've got to redo your whole showroom
but it does not be able to me at all
and then also you look at like the Kevin Mackie thing
which I know is yet to be decided
but for someone to go you can't have any cars actually
and we don't have to give you any cars
even though you've invested all this money
it's also a bit like
why would you want to work with a franchise that way
What did you think Scott when you saw this news
were you surprised?
Yeah it was for a big group like that
to ditch your big brand like that
it must be
I don't know why they do it
unless they are forecasting in the future
but I agree with you James
they talk about you open the door costs
on these big showrooms just to eat them
it must be colossal
the cost to run one of those
I mean Tory it's relevant as long as
you're getting there to sell the cars and they're busy
but if they're not particularly busy
tough times paying all those bills
it must be a bit tough
Yeah definitely
Well I think we're probably out of stories Rebecca are we
and time
So Scott
who do you think had the best stories
Definitely you
Thank you
Is that because I went to a spa this week
and you felt sorry for her
Yeah
I kind of remember my stories
Yeah
Well thank you very much Scott
I appreciate that, glad someone does
Well done
Thank you very much both of you
for being on the podcast this week
It's been lovely to talk to you Scott
Thank you, thanks for having me on
It was lovely to talk to you
Scott, James
Go did a washing up
No thank you
to both of you for being on the show this week
if you want to find out more about any of the stories we've talked about today
you can head over to Cardiomagazine.co.uk
or you can scroll down
and you will find them all in the show notes
if John does do that later
which I assume he will
We will be back again next week
well I won't be back but
Nileville James
No we're on holiday aren't we
so somebody else will be back here
Yeah, John will be back with someone else
I think Batch
But if you've enjoyed today don't forget to hit subscribe
and until next time I'm on
in the distant future
Goodbye
About this episode
Group One Automotive's decision to phase out its JLR franchises by 2027 raises eyebrows, especially given the brand's historical prestige. Scott Sibley from Redgate Lodge shares insights on the challenges faced by dealers, including slow sales and the impact of economic uncertainty. The episode also features discussions on the electric vehicle market, with Vauxhall's MD expressing concerns over the government's ambitious EV targets and inadequate charging infrastructure. The conversation touches on the evolving landscape of the automotive industry, making it a timely listen for those interested in current market dynamics.