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I’ve already opened this week’s email with some of my views on the legal implications but aside from those PCH is definitely gaining traction. It took quite a while for consumers to get their heads around PCP with the idea of either handing their car back to the finance company, buying it or using it as a part exchange. With over 5 million live PCP contracts running it is clear that people are getting it.

However, of those who took out PCP’s on new cars, not willing to consider any other alternative because they still had the option to buy the car at the end of the lease if they wanted to, they then felt that they were misled by the dealer. They believed that there would be some equity in the car at the end of the agreement which could be used as part of the deposit on the replacement car. In many cases drivers have ended up giving back the car to the finance company because the car wasn’t worth the balloon payment let alone providing some equity.

In fact according to themoneysavingexpert.com 80% of those who take out a PCP hand the car back at the end of the agreement. So having had that experience they then realise that they could have saved a considerable amount of money by taking out PCH with no option to purchase. So whilst PCP looked great on paper it isn’t surprising that there has been a massive growth in PCH over the last 12 months whilst PCP has dropped for the first time ever.

I will be explaining much more over the coming weeks so watch this space as I reveal some of the closely held secrets of the industry. By Graham Hill

Before you think I’m getting all political – I’m not. I’m talking about one of the major successes of EU membership and that is safety systems on cars. Across the whole of the EU safety standards have been set to protect drivers, passengers and other road users – very successfully. But will this still be the case after Brexit when we take over the rules and regulations ourselves?

My hope is that we will continue to maintain the high standards that, like many EU laws, we were responsible for in the first place. If you drove around Spain or Italy in the 70’s and 80’s you would have taken yours and everyone else’s lives around you in your hands the moment you got behind the wheel.

But with the introduction of consistency throughout Europe when it comes to car safety you can feel relatively safe in every country you drive in. But will this apply moving forward? There have been times when the UK manufacturers have questioned some of the enforced safety features imposed upon us by the EU but will that mean that there will be two levels of safety applied when we build cars in the UK?

Safety costs money so if the car manufacturers can save money – will they do so, especially if the safety feature doesn’t count towards the global NCAP safety tests. If we export to Europe we will need to meet the EU standards but will they apply in the UK especially as we are more and more price driven? As an example take the Indian car market where above all else cost is the main factor followed by cost to run, mileage and performance.

Safety is way down the list of priorities so manufacturers manufacture to meet the needs. And that includes European manufacturers. In a recent case a VW Polo was reported to be given 0 stars on the global NCAP test without it affecting sales. I believe they improved the safety of the cars and as a result achieved a higher score but that was a good case of car manufacturers meeting demand. In the UK Polos achieve either 4 or 5 NCAP safety stars.

By removing ourselves from Europe I sincerely hope that we don’t remove ourselves from some of the good things they were responsible for. I wouldn’t like to think that it would be safer to drive a new car in Europe than in the UK. By Graham Hill

Then you probably need to read the findings of Warrantywise when they surveyed claims made on used cars revealing the most and least reliable cars.

Most & least claimed-against brands:

Most & least claimed car models

So if you’re thinking of buying a used car and you want one that is least likely to go wrong and potentially cost you money in repairs choose from the least claimed list. On the other hand you could take out a lease on a new car and benefit from a new car warranty. By Graham Hill

If you were told this by the manufacturer of your car and that he would fix the problem if you popped it into your nearest dealer for free, why wouldn’t you go? Or if you needed to check a website to see if your car was one that had the fault wouldn’t you check it?

Well in 2013 this problem was identified. Takata airbags were fitted to 66 global models and all could have the fault so a massive recall got underway. In the UK 2.9 million cars were affected but to date, 991,333 cars remain unrepaired – could yours be one of them?

You may recall in 2015 Vauxhall hit the headlines as a result of their Zafiras built between 2005 and 2014 possibly having faulty heating components fitted causing the cars to catch light. The affected cars were identified and recall notices were sent out to 234,000 drivers. 30,686 have still not been repaired so any of those could catch fire at any time. Might be a good idea to check your car out if you’re driving a Zafira.

As with the Zafira, BMW issued a recall in 2018 on their 3 series built between 2004 and 2011. Again faulty heater wiring could lead to a fire but of the 279,104 cars affected 197,352 remain unrepaired. According to the DVSA there are still 2.39 million cars subject to safety recalls that have still not been repaired, an estimated 1 in 13 cars.

According to Auto Express, Edmund King – AA President, said that ‘Generally the recall system in the UK works quite well…’ What? A third of cars that have a potential fault that could result in shrapnel being fired into the face of the driver or passengers doesn’t suggest to me that the system is working quite well!

As a result of this highly dangerous situation, the Driver and Vehicle Standards Agency (DVSA) is proposing to align two of their systems, the recall register and MOT test records. They propose that if a car is subject to a recall it is noted in the advisory section of the MOT certificate. If it appears the following year the car should fail the test.

Personally, I don’t feel this goes far enough, the recalls should be aligned with road fund licence and if the car hasn’t been repaired the driver can’t renew the tax – surely if the car is a danger to the driver, occupants and other road users they should not be allowed on the road. If we rely upon the MOT test the car will be 3 years old before the note is made on the certificate.

If you would like to check to see if your car has a recall go to: https://www.check-mot.service.gov.uk/   By Graham Hill

As a consumer, you are probably aware that you have a very strong position in law whenever you have disputes with a supplier whether or not finance is involved. When it comes to cars your position is stronger if you have taken out finance because you have even more Acts of Parliament to protect you.

But what if you are a sole trader, partnership or SME without the resources of a large corporate? Certainly not enough money to take on a large dealer group when you believe that the car isn’t fit for purpose or as described and the only course of action is to go to court.

What many small business owners are unaware of is that the Financial Ombudsman Service (FOS) is available not only to consumers but also small business owners. At one stage the facilities were available to sole traders and small partnerships only but this has been extended to limited companies provided they are what is termed in EU law as a Micro-Enterprise.

To qualify as a Micro-Enterprise you must have a turnover of less than 2 million Euros AND employ less than ten members of staff – even if you are a limited company. Now here’s the interesting thing. If you look through consumer credit legislation it pretty much excludes businesses. But the Ombudsman isn’t constrained by the law and will sometimes find in favour of a supplier or customer based simply on his sense of fairness.

The thing is that even if it doesn’t go your way you don’t have to accept the Ombudsman’s decision. You can still go to court if you have the money to do so, whilst on the other hand, if you are successful the other side must accept the decision of the Ombudsman if you choose to accept the ruling.

So in future don’t despair if you aren’t being treated fairly by a dealer or their finance provider. Register a complaint with the FOS. By Graham Hill

I’ve done this myself and got really angry in the worst town in the world for driver convictions (in my opinion) – Croydon. I was fairly close behind a bus travelling through the town and as we crossed over a crossroad into the same road without seeing any sign to show that the road opposite was simply a two-way bus lane. Of course by the time I saw that the road was simply a bus lane it was too late. A No Entry sign showing ‘Except buses, taxis and cycles’ underneath would have been handy.

So I wasn’t surprised to read that drivers were fined £42 million for driving in bus lanes last year. One road alone generated £1.48 million in fines. Last year there were 888,760 notices issued. In London the fines for driving in a bus lane reached £7.57 million with Ealing council responsible for more than 40% (£3.1 million) of London’s total.

In Glasgow drivers were fined £6.52 million whilst Cardiff drivers had to part with £5.59 million for driving in a bus lane. Confused.com were behind the figures collated after a Freedom of Information request. It also found out that 39% of drivers admitted driving in a bus lane whilst 48% said they had done so unwittingly. 41% said that they had done so because of unclear markings or signage – I know what they mean.

Confused.com’s motoring editor, Amanda Stretton, suggested that bus lanes present the most confusing challenge to motorists. She also suggested that the money raised should be used to improve signage and questioned the level of fines as motorists felt they were ‘unfair and excessive’. The High Street in Oxford was the road that generated the most revenue at £1.48 million. Potentially because only buses, taxis and cycles are permitted to enter sections of the street between 7.30am and 6.30pm.

You’ve been warned. By Graham Hill

I’ve warned about this before but since the tightening of Data Protection rules with GDPR it’s worth mentioning again. It all started a few years ago when the wife of a well-known football player part exchanged her car for a new one. When she sold the car she didn’t think of clearing down the information stored in her in-car telephone book.

The dealer who bought the car as a part exchange realised that he could access the telephone numbers and seeing that there were many mobile numbers of A-list celebrities he offered them to a National newspaper. When it came to light what had happened, after journalists were contacting the celebrities, a court case ensued. The dealer argued that as he bought the car he also bought the data stored in the car. The onus was on the previous owner to remove anything that wasn’t included as she would have done with any personal effects.

Data protection rules were not so tough at the time but even so the dealer was seen to be breaking data protection regulations and was fined. Since then, of course, the amount of data stored on your car has increased. Addresses, places you have visited along with telephone numbers and in some cases driving style. You may think that most of this information is pretty benign but it may not be.

If you own company cars or you are a company car driver there is an onus on the employer to ensure that they protect driver’s personal data. There is a now a company that will cleanse ex-fleet cars and remove all data but they only deal with company cars. If you are concerned about your data stored in your car you can always remove it yourself or ask your local dealer to remove it for you before you return it at the end of your lease or PCP or part exchange it.

If the car is part exchanged the dealer is responsible for ensuring that the data is removed before selling it on. With fines of up to 2% of global annual turnover this could end up having a major effect on employers and/or dealers. By Graham Hill

Citizens Advice have warned about unreasonable behaviour by bailiffs. According to CAB 850,000 consumers have had a bad experience with a bailiff, from forced entry to near illegal threatening behaviour. Charities have called on the Government to take action and regulate the industry.

When it comes to cars, some lenders will use bailiffs to recover cars that are still on a finance agreement. Far too often ‘Innocent Buyers’ are forced into handing over keys when in fact they legally own the car. If you buy a car from someone and it turns out to be on HP, provided you’ve asked if the car is on finance and the owner has told you that it isn’t then you are the legal owner of the car (doesn’t apply to contract hire).

You don’t have to check that the car is on HPI because there is no legal obligation on lenders to record their finance agreements on there in the first place. Some bailiffs will turn up with a copy of the agreement showing that the finance company that has appointed them still owns the car. They will explain that you should contact the seller of the car and sue him to recover what you paid as he was not entitled to sell the car in the first place.

They will often have a form that they will ask you to sign that effectively passes the car over to the Bailiffs ‘innocently and without pressure’ and ‘voluntarily’. Once you have signed the form and handed over the car keys it is virtually impossible to get your car back.

Whatever the circumstances unless bailiffs turn up with a court order tell them you want to verify what they are saying, leave their card and give you 24 hours. Then phone Citizens Advice or if you have legal cover on your contents or car insurance phone their helpline for advice.

If you are visited by a bailiff who is acting unreasonably call the police and if you are unsure of your rights and you don’t have access to a legal helpline call the company that the bailiffs work for. Yet more examples of the law being toothless. It’s a disgrace! By Graham Hill

My previous blog was entitled Is The Consumer Rights Act Fit For Purpose? I give a typical example of how consumers are being ripped off by dealers not willing to honour their legal obligations. I also give a number of actions that customers can take that will help them to get a result.

After a lot of research, I have come across what I believe is a better solution. The RAC has a legal insurance policy called Legal Care Plus. It covers much more than a normal legal cover extension on the average car insurance policy.

The important cover is:

Motor Vehicle Consumer Disputes

RAC will cover up to £5,000 in legal costs following a breach of an agreement relating to the sale, purchase, hire or servicing of a motor vehicle.

I spoke to a representative who confirmed that this would cover warranty disputes as a result of the vehicle being faulty. In addition, it covers legal costs and expenses for uninsured loss recovery, for example, loss of earnings to the tune of £100,000. Where you have an accident that was not your fault you can also recover your excess.

Along with other cover, the policy looks really good to me. And the cost? Just £15 per annum. Always take professional advice before taking out an insurance product. By Graham Hill

I’ve just been reading yet another story about someone trying to reject a faulty car and not being allowed to by the dealership. What the hell is the point of an act of Parliament to protect consumers if it is totally toothless when you try to apply it?

What Car reported an incident that involved a lady who was driving a nearly new BMW 1 Series, bought with 2,200 miles on the clock for £22,000. After 5 days and 93 miles the car broke down, it shuddered, misfired and lost all power. The oil warning light came on and the onboard computer stated there was a problem with the drivetrain.

The lady driver stated that the car broke down in a dangerous position but she managed to get it to limp to a safe place then made a long walk to a friend’s house. After advising the supplying dealer it was a week before the car was collected. They then called a day later saying that they had driven the car for 60 miles and couldn’t find a fault so suggested that she could collect the car.

Following the non-repair the car has suffered sporadic electrical problems leaving the lady with no confidence that it might break down again leaving her stranded. As a result the lady wrote to the supplying dealer telling them that she wanted to reject the car under the 30-day rejection rule as part of the Consumer Rights Act. She was told by the dealer that she couldn’t reject the car as there was nothing wrong with it.

As reliability and safety were all important to her, especially as she is normally in the car alone, she still wasn’t happy. She wrote to the dealer advising them as such and informing them that she wanted to return the car for a full refund.

They replied by explaining that as there was nothing wrong with the car she couldn’t return it for a refund. But they offered another 1 series that they had in stock as a replacement. The car was cheaper than her original car so she would be financially out of pocket as they refused to refund the difference. The lady felt that she had been treated appallingly – sadly she isn’t alone.

So what was the outcome when she wrote to What Car?

They, first of all, confirmed that she was within her rights to return the faulty car for a full refund. The car was considered to be of unsatisfactory quality as the car was, and continued to be, faulty. And as it was likely to break down again leaving the lady stranded it was also considered to be unfit for purpose. All of which I totally agreed with.

What Car suggested that the lady go back to the dealership and reiterate what they had said to her. She did that and on the same day the dealer got straight back to her and said she was wrong about her consumer rights and she could not reject the car. As a result What Car contacted BMW’s UK head office to ask for their intervention – which they duly did. The following day the dealer called her and agreed to a full refund.

Now whilst this may look like a great outcome and in the case of the lady concerned – and it was but in my opinion, it is wrong on so many levels. Not least of which the dealer will receive the car back with a fault – so given their attitude will they fix it? No, they won’t because they don’t believe the car is faulty. So will they continue to sell the car until someone accepts their argument and accepts the faults or pays for the fix themselves – if it can be fixed? I suspect that this is the route they will take.

Solution 1: Record on HPI and Experian that the car had been rejected and list the reasons. The dealer wouldn’t do this automatically because it alerts the new owner so they would need to be obligated to by law. But if we do that we will need to make it compulsory for lenders and insurers to record finance links and insurance damage – something that isn’t compulsory at the moment. Ridiculous. We need changes.

If you experience a fault immediately after taking delivery of your car (within 30 days), either new or used, from a dealer or trader (not private) you should reject it immediately by putting it in writing. An email or a letter should do (I suggest a letter that is signed for). If the issue is minor such as say a loose piece of trim that can be easily fixed you can give the dealer an opportunity to fix.

Remember you don’t have to give the dealer an opportunity to fix within the first 30 days but the fault does have to be genuine, you can’t just change your mind about the car. I’ve heard of situations whereby the customer has a fault and insists that the dealer refund the cost. The dealer (as in the case above) takes the car back, repairs the fault then says that a fault didn’t exist. So this is where my next piece of advice is all important.

If your car suffers a fault take as many photos and/or videos that you can with your phone showing the car running badly, an item not working and certainly warnings that appear on the dashboard. Don’t put yourself at risk so get the help of a friend or relation to take photos if the fault occurs and you can get someone else to video it whilst you’re driving.

The next thing is to register your complaint with Trading Standards. The more people that complain the better the picture that Trading Standards will have of the dealer. If the dealer has a bad record of not treating customers fairly and meeting their legal obligations you may find that they come to a quick solution. And Trading Standards have legal clout.

The problem is that you can no longer contact Trading Standards direct. You have to go through the Citizens Advice Consumer Helpline and they decide whether to refer to Trading Standards. In most instances that won’t be a problem – just a minor delay.

Make sure that you don’t sign any forms, simply write to the dealer advising that you want to exercise your rights under the Consumer Rights Act 2015 to hand the car back for a full refund and explain why. Some dealers will hand you a form to sign which may have a string of conditions included – they are not legally enforceable but they’ll try it on. Don’t sign it.

You can write to the manufacturer as well, as happened with What Car and also to any trade association of which the dealer is a member. Most are members of the Society of Motor Manufacturers and Traders. They should be able to refer you to an independent dispute resolution body but make sure that it isn’t the Motor Ombudsman as I don’t believe they are totally independent. You can only use them if the dealer is a member which costs them money so I believe their advice cannot possibly be totally independent.

It should also be born in mind that if you buy goods from a shop, say a kettle from Argos, it is the responsibility of the shop if the goods are faulty, not the manufacturer. Once the shop has resolved your complaint it is then up to the retailer to take up the issue with the manufacturer – nothing to do with you. A manufacturer’s warranty is in addition to your legal rights – not a replacement. However, this isn’t the case with a Franchised dealer. He trades as an extension of the car manufacturer as a ‘franchisee’ so when you deal with the dealer you also deal with the manufacturer.

The manufacturer has a reputation to maintain so it isn’t unusual for them to overturn a local decision made by their franchisee. So if you don’t get satisfaction from the dealer certainly go for the manufacturer.

Finally, check your home and car insurance policy if you have legal cover. At worst they will give you legal advice at best their lawyers will write to the dealer. By Graham Hill