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After the recent F1 disasters with their tyres exploding on a far too regular basis you would think that Pirelli would concentrate on making them safer.

Used Tires (Photo credit: www.ericcastro.biz)

Well in an effort to multitask it would seem that the designers have not only improved the reliability but they have brought out a new series of road tyres that they say reduces the road noise in a car by 50%.

Assuming that we won’t see a repeat of the F1 blowouts it’s worth noting that developments continue on road cars. The first cars to benefit from this new technology are the Audi RS6 Avant and RS7. They will be offered as optional extras (no I don’t know how much), but I guess they must be expensive if they are only offered as options on two of their top of the range cars.

In order to reduce the noise the tyres have a layer of noise cancelling sponge under the tread blocks. Pirelli says it reduces the amount of vibration and noise through the steering wheel.

Let’s hope the tyres don’t suffer the same problems faced by Hamilton & co.

Related articles

• Webber slams F1 tyres (sbs.com.au)

Image by None via CrunchBase

Who is the worst payday lender? I’m not sure of the answer to that one myself but certainly the most honest seems to be Wonga. I have written a new book that will be launched soon in my Simple Guide series called APR – A Simple Guide.

Amongst many crooked activities revolving around the abuse of APR I talk about payday loans. I agree with a comment made in Credit Today when they suggest that instead of displaying a ‘representative APR’ in their adverts, payday lenders should display ‘lots’ and leave it at that for the usefulness it provides.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

I give an example in the book of a call made to a Payday lender who quoted a representative APR of, I believe 2,450%. However this is the rate if I borrowed money on the 1^st of the month and repaid it on the 31^st. After questioning a very nice chap on the phone before he hung up on me he gave me the amount of interest I would pay in cash terms if I had the loan for a complete month.

However, when I explained that it was less than a week to my payday, would they still charge the same fee that I would pay if I had the loan for a month, the answer was yes. When I explained that this reduction in time would seriously affect the APR the phone went dead. Everything about APR is a joke and is completely misused by those lending and misunderstood by those borrowing.

Recently Wonga, in an attempt to reflect more closely the borrowing of their customers, changed their worked example in their advertising by moving from £207 over 20 days (£47.20 in charges) to £150 over 18 days (£33.49 in charges). Nothing wrong with that you might think, if anything it is taking an honest approach to their lending, tell it as it is.

But unfortunately because of the ridiculous way that APR is calculated on short term loans it moved the APR from 4,214% to 5,853%. As a result the press had a field day, balloons went up, old people had sticks waved at them as they were identified as the old kindly people in the Wonga ad and brown, rather smelly stuff, was thrown at the office fan of many journalists as they fought to condemn Wonga.

The Daily Mail said, ‘Payday firm’s 1,600% rise leads to calls for tighter regulation.’ The Guardian also noted the rise with ‘Increase calls for a cap on the cost of short-term credit.’ In my book I’m calling for a massive change in the way that the world measures credit and this furore strengthens my resolve because APR is total nonsense.

Let me break this down for you without giving away my new approach to lending. Faced with a rise of 1,600% in the interest and charges that we would now be expected to pay, as illustrated by the Wonga example, you and I might throw a tantrum but what does it really mean?

What caused there to be hundreds of column inches to be written in the press about this massive rise in interest? If you take the first example from Wonga and break it down you will find that you will pay £207 over 20 days, or £1.14 per day per £100 in charges. In the second example you will pay £1.24 per day per £100 in charges. So this extra 1,600% amounts to ten pence per day per £100 that you borrow.

The massive reaction was over 10 pence per day per £100 borrowed. What a bloody nonsense – read my book when it comes out, you are in for some shocking revelations!

Oh and before you get the wrong impression I’m not a big fan of payday lending but if properly controlled with full disclosure there is a place for it for those struggling with their finances. Official statement over!

Related articles

• APR ‘confusing’ say payday lenders (belfasttelegraph.co.uk)

OK here is today’s test, what is an STD. Nope – you’re wrong according to an article in the Antipodean periodical – The Australian. They ran an article that gave advice to their readers on how to reognise, avoid and treat disgusting STDs.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

The piece was written by Larke Riemer (that’s a woman with a very strange name), director of women’s markets at Australian bank – Westpac. With the holiday season underway and the fears attached to drunken nights whilst enjoying the benefits of sun, sea and sex one may welcome a few words of cautionary wisdom from Larke (no I don’t know how to pronounce it either).

But the article was nothing of the sort, Ms Riemer, being a true banker, wasn’t talking about dodgy rashes in intimate places but something completely different, she called it Sexually Transmitted Debt.

She was referring to the unwanted burdens that people (mainly women) coming out of relationships can find themselves stuffed with. So the advice was not about the dangers of unprotected sex but more about unprotected debt, telling people to talk honestly to each other about money issues, make sure that you read everything that is financially committing before signing and don’t leave your name on utility bills before leaving.

I think I had better suppress any further comment before I dig a serious hole for myself. Goodbye.

Tonight those lovely old ladies that present the BBC 1 programme called Rip Off Britain had a piece about Log Book Loans. In most respects, contrary to my usual complaints about the press and consumer programmes, it was surprisingly accurate but it missed a few very key pieces of information.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

First of all Log Book Loans, as pointed out in the programme, are what are known as Bills of Sale, regulated not by the Consumer Credit Act but The Bill of Sales Act 1878 and the amendment act of 1882. This Victorian act was created in the days when rights were with the lender, not with the borrower, as they are today.

A loan is secured against a car at a high APR, normally around 300% – 400%. In a case highlighted a lady had a recovery company call late at night to recover a car which they said had money owed on it on a Log Book Loan. The collection at a late hour was questionable but in a panic the lady handed over the keys and having already bought the car in good faith was later told that she would have to settle the outstanding finance if she wanted the car back.

The fact is that the finance company was acting within the law. In fact contrary to much of the rubbish written on the Internet, on various consumer sites, by people who have no knowledge of the law, they don’t even need a court order, which is the case once you have paid off a third of the debt on HP.

They can even enter your property, break down the doors of your garage and remove the vehicle. Unless of course, as one very smart chap suggested on a famous consumer blog, you remove the battery and two of the wheels! Nice idea unless you actually bought the car to drive – you dope!

The strange thing is that in 2010 the Government carried out a review of the act and amazingly did nothing to it leaving ‘innocent buyers’ in the cold. If you buy a car on HP or PCP, i.e. a loan secured against the car, and you buy the car not knowing that the car had finance secured against it, having asked the owner, title still passes to you as an ‘innocent buyer’.

So until log book loans raised their ugly head you didn’t need to fork out for an HPI check that tells you if finance is secured upon the car. The HPI guarantee covers you up to £30,000 against losses as a result of the finance not being recorded.

This was in fact a bit of a sleight of hand because as a consumer you were covered up to £30,000 under the Consumer Credit Act anyway so when the debt collector comes calling for the £15,000 worth of finance outstanding on the car you bought and HPI save you this money they simply phone the HP company and explain that you were an innocent buyer and the finance company, in most instances, will simply go walkies. But now that you have log book loans recorded also we are in a different ball game.

It is now worth paying for an HPI check (the full online check) if you are to protect yourself against the fraudulent selling of a car to you that has a log book loan secured upon it. What they didn’t make at all clear in the programme was that you should never simply hand over keys to anyone who turns up at your door with a piece of paper, that could be a forgery, saying they are the owners of the car.

And if the paperwork does not mention ‘bill of sale’ then the chances are that they are trying to recover a car that was on HP or PCP and as long as you don’t hand anything over you will be considered as an innocent buyer of the car and entitled to keep it. Once you forfeit the car you give up your rights.

Remember, if you feel at all intimidated call the police. I award 8 out of 10 to the kindly ladies of Rip Off Britain.

Department for Transport (Photo credit: Wikipedia)

An issue that gets talked about a lot without a lot of perceived action is driving whilst under the influence of drugs, both illegal and prescription. Yet again the Government has announced a crackdown (excuse the pun) on those driving whilst under the influence of drugs.

The new rules will make it easier for the police to prosecute and target eight drugs including cocaine and cannabis as well as some drugs used in medicines. However, in the case of the latter the levels will be set sufficiently high so that people using them legitimately won’t get caught.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

The Department for Transport believes the likely increase in enforcement could see the number of annual casualties drop by 6%. The rules do not allow the police to pull over a driver for a random test, as they can do with drink driving, so the driver must have committed a traffic offence before he can be stopped and tested.

Transport Minister, Stephen Hammond, said ‘Drug driving ruins lives, so we are proposing a zero tolerance approach with those who drive under the influence of illegal drugs.’

Related articles

• Press release: Tackling the menace of drug driving (gov.uk)
• Drug-driving proposals unveiled (bbc.co.uk)
• One spliff and you’re off the road: crackdown on drug driving (standard.co.uk)

Peugeot (Photo credit: Wikipedia)

If the financial problems weren’t enough it would seem that Citroen and Peugeot need to sort their cars out, or more importantly their electrics, according to a new report prepared by BBA Reman – a specialist in remanufacturing problematic electrical components (no I don’t know what that means either), based in Rochester, Kent.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

They say that they dealt with more Citroens than any other make of car among its 43,500 UK customers. The most common fault was within the ECU’s fitted mainly to C4’s and C5’s.

The same issue caused Peugeot to fall into 2^nd place with the same problem occurring in 206, 307 and 407. Whilst some would say that this isn’t surprising given the difficulties faced by the manufacturers, they may be surprised to learn that contrary to belief that Germans are the most reliable VW and Audi were 3^rd and 4^th respectively. Maybe a bit of a wakeup call there! By Graham Hill Car Finance

Related articles

• Peugeot: European car sales will continue to fall (inautonews.com)

English: No Parking Minster Yard Double Yellow Lines or a worn single. (Photo credit: Wikipedia)

English: Eric Pickles MP, Conservative Party Conference, 30 September 2008 (Photo credit: Wikipedia)

That very cheery Conservative, Eric Pickles MP has a great idea – according to him. He is about to re-invigorate the high street and by doing so annoy the Lib Dem’s and win the next general election.

His proposal, not quite thought through yet, is to allow vehicles to legally park on certain double yellow lines from 5-15 minutes before they receive a fine, clamp or are towed away.

Now for those like Eric and I who are a little on the portly side, being able to nip out from the car and buy a diet Coke and low fat packet of crisps without a warden slapping a ticket on the windscreen would of course be a Godsend. Not least it would save the walk from the multi-story to the shop expending energy unnecessarily, who needs it?

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

But as much as it appeals I have to say Eric, I think it will be a disaster. Selecting the places where parking will be allowed will be a nightmare as will the policing of it. Assuming of course that the double yellows were put there for a reason in the first place, i.e. to keep traffic flowing, it could cause gridlock or be dangerous for pedestrians.

As for winning the election Eric, I can’t imagine queues at the ballot box waiting to stick their cross in the Tory  box in order to get double yellow line parking. Nice try though! By Graham Hill Car Finance

Related articles

• Drivers to be able to park on double yellow lines (itv.com)

Anyone that knows me knows that I am a man of reasonable logic, I speak my mind and stir up debate. As was said about me in Motor Finance, ‘As readers of his work and this publication will know, Hill always has a contentious opinion and is one of the most recognisable people at industry events, if only for the argument going on around him.’

That last bit might have more to do with my Rod Stewart style hair cut but that aside I’m totally confused by the new Consumer Credit changes that will be imposed by the new body, known as the Financial Conduct Authority (FCA), in 2014. I have just read a long article in Credit Today in which it gives a flavour of the proposals and the responses from the industry.

Now we all know that the credit industry in this country, indeed around the world, is imperfect and in dire need of change. There is a huge education void, illustrated by the fact that my simple guide to car finance is still the only proper guide to car finance available in the UK when half the bloody population has a car and all of those cars will be financed at least once during their life.

I applauded the fact that many issues were to be addressed such as irresponsible lending and dubious collection techniques which are still being employed. But when the whole of the credit industry seems to agree that the new regulations are ‘nothing to worry about’ the new authority hasn’t done its job right.

For example Andrew Smith of debt management company, ClearDebt believes that the prudential capital requirement, if it goes ahead ‘Will not be too onerous’. Russell Hamblin-Boone, chief executive of the Consumer Finance Association is said to have uttered, ‘There is nothing in the consultation document that gives him cause for concern.’

With others making similar noises I question whether the Government has got it right? With the introduction of a new regulatory controller I would expect them all to be ‘bricking it’ not ordering up another G & T. I don’t intend giving details of the proposals unless I think they are relevant but I despaired at a comment from Hamblin-Boone, bear in mind that the changes to be introduced are described as a new ‘risk based approach to lending’.

OK, got that? Now to me that suggests that the lenders have been lending irresponsibly and instead of concentrating on collecting toxic debts a new approach to lending is required in order to prevent the bad debt in the first place.

Agreed? Hamblin Boone is reported as saying: When considering the impact on the wider market he believes that consumers are likely to remain unaffected by the regulator’s high risk/ low risk approach. He says, ‘I don’t think there will be any less provision of credit but consumers will have much more confidence in the providers of consumer credit.’

So summing up, huge amounts of money are about to be spent on a new regulatory body that will have zero effect on lending. What a load of bullsh*t. Watch out for the launch of my new revealing book APR – A Simple Guide. That will certainly throw the cat amongst the pigeons! By Graham Hill

When my kids were young they could think of nothing more exciting on a trip than to be dropped into the boot of the car with a couple of cushions, a tube of Smarties each and a torch. These days you have to spend a fortune of Isofix adapted forward and backward baby seats followed by specially adapted seatbelts and child seats until they reach 22 Read more »

Did you know that it’s illegal to drive a car if you have a cold or flu? The same applies to hay fever, in fact any condition that affects your driving makes it illegal to drive whilst suffering. According to the Central Motorway Police Group, ‘A heavy cold or flu causing sneezing and streaming eyes clearly affects fitness to drive and medicine that can Read more »