Graham Hill Reveals The Power Of The Unfair Trading Regulations

Friday, 11. March 2016

In a recent newsletter I promised to reveal the power of some regulations that few consumers are aware of and many providers of goods to consumers abuse. They are called the Unfair Trading Regulations (2008). They regulates 5 main categories of potential unfair business practices. Additionally in 2014 amendments were made to the regulations that gave consumers greater rights of redress.
More specifically if the consumer was the subject of misleading action, i.e. if a false statement was made by the seller or if he used aggressive selling techniques, he was entitled to take the following action: 1. Undo the contract, 2. Insist on a discount on the price paid, 3. Seek damages. So this legislation is quite tough. In the case of cars here are the five main categories of potential unfair business practices:
1.    Giving false information either verbally, visually or in writing, for example if the vehicle’s specification is misrepresented and/or its service history, length of MOT, mileage, number of previous owners etc. at any time either before, during or after the transaction.
2.    Giving too little information, omitting or hiding important information. e.g. having a check carried out on the vehicles mechanical condition but failing to mention the check and the results. Failing to mention the results of any history and mileage checks or (and this is a good one) failing to draw the customer’s attention to key elements of any warranty, for example what the warranty covers, the claims limits, excess and conditions of use.
3.    Acting aggressively e.g. using high pressure selling techniques to sell the vehicle, finance or warranty.
4.    This is a good old English law statement ‘Failing to act in accordance with reasonable expectations of what’s acceptable.’ No I don’t know either!
5.    There is a ban of 31 specific practices, no I won’t list them all just a few important ones such as falsely claiming to be a signatory to a Code of Practice, falsely claiming to be approved, endorsed or authorised by a public or private body. And here is a great one: falsely stating that a vehicle will only be available for a very limited time in order to elicit an immediate decision to buy.
I have illustrated the law as it applies to vehicles but they are equally applicable to anything you buy. Be it a TV, three piece suite etc. Now I bet you didn’t know that? By Graham Hill
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Does A New MOT Prove That A Car Is Roadworthy?

Friday, 4. March 2016

Did you know that an MOT test certificate does not prove that a car is road legal. Many car dealers believe it does as do most customers. But let’s take an example whereby a used car on a dealer’s forecourt has been on a test drive and hits a pothole that forces the wheel alignment out.
Not so much that you would feel it in the steering but this damage could be the future cause of excessive tyre wear or even worse cause an accident. You test drive the car and agree to buy it. True to his word the dealer has the car MOT tested  before you take delivery but wheel alignment is not part of the MOT test but it is illegal to drive a car whose wheel alignment is out.
If you find the fault, hopefully not after an accident, the dealer will probably say that the car was roadworthy when you bought it because it had a brand new MOT certificate, issued the day you bought it. It’s a con. There are a number of other items that could be wrong with the car making it not roadworthy but are not part of an MOT test.
And if the MOT is 3 months old there is an even greater chance that it may not be roadworthy as an MOT is a snapshot, much can go wrong over 3 months. Finally on this point Trading Standards are considering a formal prosecution of a dealer who sold a car to a customer two and a half years previous to him being involved in an accident.
The accident was caused as a result of the car having a fault that made it not roadworthy which was shown to have existed at the time of purchase. The dealer argued that the car had a new MOT when sold and had been through 2 MOT’s since but the fault was not part of the MOT test so Trading Standards are prosecuting. If the outcome is reported I’ll let you know. By Graham Hill

 

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Government To Remove Central Lane Markings

Friday, 26. February 2016

I recently reported that the Government is planning to scrap large numbers of sets of traffic lights as they seem to slow down traffic flow rather than improve it. Taking things one step further Transport for London (TfL) have been experimenting with removing central lane markings on busy streets around Croydon and Haringey.

Studies carried out during the experiment has shown that average speed has reduced by 13%. They have concluded that fewer road markings improve safety by making drivers more cautious and aware of their surroundings. The report stated that it has been found that a drop in average speed of just 1 mile per hour is associated with a 5% reduction in accident frequency.

TfL is not the only authority to remove centre lines. Apparently similar schemes have been introduced in Norfolk, Wiltshire and Derbyshire. In fact in Norfolk, Tracy Jessop, assistant director for Highways and Transport at Norfolk Count Council, said ‘We’ve been removing centre white lines for at least 15 years in locations that have the right characteristics and where there is community support.’

Personally, like Paul Watters, head of roads policy at the AA, I think this is a dangerous move. When you drive along a road and you see bits of tree strewn all over the place you sense danger and slow down accordingly, the same would apply if suddenly you had no guidance as to where the centre of the road is, people don’t slow down because the road is safer, they slow down because they sense danger – in this case not without reason. By Graham Hill

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Are Warranties Worth The Paper They Are Written On?

Friday, 26. February 2016

Here’s an interesting dilemma. Customer buys a new car, it could be any car but in this case it’s a VW Golf. The car is fitted with Adaptive Cruise Control (ACC) and Autonomous Emergency Braking (AEB) which basically stops you from accidentally running up the bum of the car in front.

As the car was in Ireland the costs are in Euros which I have conveniently converted to Sterling to save you checking exchange rates and grabbing your calculator. I’m like that! Anyway, the driver’s ACC warning light lit up on the dashboard. No I wouldn’t know either!

The light surprised him as nothing had happened other than the fact that he was driving the car normally. Off he toodled to the main dealer who said that the system was damaged, possibly from an impact. The cost to replace the ACC was going to be £1,145 and as it was the result of an impact the replacement would not be covered by the warranty.

As he hadn’t had an impact and as he had managed to safely drive a car for many years without this latest gadgetry he asked the dealer to simply disable it. The driver, Ben Smith, was told that the dealer couldn’t disable the set-up and because it was a serious road safety issue they wouldn’t let him drive the car away without signing a consent form. This is when it gets interesting.

He had the car towed away for an alternative inspection by an independent garage as he felt he was being forced into having work done that may not be necessary. He was shocked to learn that, according to the independent inspection, no damage had been caused to the unit, instead the report, according to Auto Express who saw the report, found that three sensor bracket sensor nuts had come loose, causing messages to appear.

The report also claimed that the bracket VW claimed had been broken was not the one found in the car. The fix cost Ben £46. OK one would assume that the dealer was trying it on and that they would apologise and Ben would continue driving his car in the knowledge that he won’t accidentally ram the car in front. But no! Auto Express contacted VW who explained that a mount was found to be broken (not according to the independent garage) as well as a cracked camera.

Not mentioned by the independent examiner. Of the independent fix VW said ‘Without repairing the vehicle as per manufacturer guidelines and calibration of the ACC system after replacement, (it wasn’t replaced by the way), the repair hasn’t brought the vehicle back to manufacturer specification. VW cannot guarantee that the vehicle will operate as the manufacturer intended.’ This implies that Ben could lose his warranty cover because he didn’t pay to have a repair carried out that wasn’t needed in the first place.

That is frightening but what wasn’t mentioned in the piece was the Government backed arbitration service called Motorcodes. This is what they say on their website: Motor Codes is the government-backed, self-regulatory body for the motor industry. Its voluntary membership of thousands of garages is committed to maintaining high standards covering new cars, the administration of new car warranties and car service and repair.

So as always I am providing more information than a major motoring magazine. If Ben gets in touch with Motorcodes they will have to look into his complaint and will give a legally binding ruling. The web address of Motorcodes is: http://www.motorcodes.co.uk/ By Graham Hill

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Action To Be Taken Against Unattended Road Works

Thursday, 25. February 2016

In the town in which I live they have been building houses like they are going out of fashion. Virtually every piece of free land is being built on which I guess is pretty good news, especially if you’re a first time buyer. But the downside is that each new development needs electricity, water, phone and sewage facilities which means roads have to be dug up.

This in turn means that temporary traffic lights are erected and currently at the end of my road is a set of 4 way lights. As you can imagine I can wait what seems like 10 minutes to get out of the end of my road. I then have at least 1 if not more sets of temporary lights to contend with before I reach my destination elsewhere in the town.

My complaint isn’t that we have temporary traffic lights but that no bugger ever seems to be working on the bit of road that the lights are protecting, especially at weekends. As a result the Government is going to take action. They plan to fine local councils and utility companies £5,000 a day for road projects left unattended at weekends that unnecessarily inconvenience motorists.

So work would have to continue at weekends or the roadworks lifted at weekends until work resumed on the following Monday. Also fines will be imposed when lights are left in place after work has been completed. Arguing against this Peter Box, a spokesman for the Local Government Association, said that there are often reasons why roadworks are left unattended, for example when concrete has been laid it takes time to dry.

He can see that if the rules come into force people will be employed at weekends to watch concrete dry rather than receive a fine. As a final word, before you get over excited about driving freely around at the weekends the rules will only apply to A roads and not rural B roads or residential streets – damn. By Graham Hill

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Increase In Points & Fines For Those Driving Whilst Using A Mobile Phone

Thursday, 25. February 2016

If you are one of those who uses a mobile phone whilst driving without a Bluetooth hands free kit be prepared for extra points on your licence and an increased fine if you get caught.

New proposals from the Department for Transport (DfT) will increase the number of points to 4 which means that under the totting up rules if you get caught 3 times you will automatically lose your licence, previously you had to be caught 4 times.

After seeing an increase in accidents involving drivers using mobile phones whilst driving the Government has decided to take action. Not only will the points increase to 4 but the fixed penalty fines will increase to £150 from £100. HGV drivers will see their points increase to 6 if caught using a mobile phone whilst driving.

Most new cars come with Bluetooth so yet another reason why motorists should lease their cars – well what did you expect me to say? By Graham Hill

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A BMW That Achieves 148 MPG!

Thursday, 25. February 2016

How do you fancy driving an executive car that achieves 148 miles to the gallon? Well you can with the new BMW 330e M Sport which we just happen to have on offer at the moment. It is BMW’s entrée into the Plug in Hybrid Electric Vehicles (PHEV).

Whilst the new tiered Government Grant scheme has dropped the grant from £5,000 to £2,500 it is still good value for money on a lease. You will need a means to re-charge the car from an electric charge point that can be installed in your garage (grants available) or via charging points now available at services on motorways, some hotels and on certain streets.

The electric motor starts you up and moves you off whilst the 2.0 petrol engine takes over to boost power or take over when the 87bhp electric engine starts to flag. In EV mode the car has a top speed of 80 mph but switch across to petrol and you increase the top speed to 140 mph. The car has all the usual refinement of a 330i but with all the economy of a hybrid, the general consensus is that the car is a definite winner leading the way for other hybrid cars across the BMW range.

Oh and another piece of breaking news, Transport Secretary, Patrick McLoughlin has announced plans to allow PHEV vehicles to have access to bus lanes in the eight Go Ultra Low cities across the UK as part of a £40 million investment plan in readiness for electric and hybrid vehicles. Some of the investment will be used to provide rapid charging hubs and plug in points at street lights. Time to make the move? If not we are certainly getting close. By Graham Hill

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Emissions Testing To Be Tightened Even Further By EU

Thursday, 25. February 2016

The EU Commission had already made it clear that emission testing would be tightened up from 2017 but they have now announced that they will be going several steps further. As a result of growing mistrust of the emissions testing procedures which were to reflect real life motoring conditions by 2017 the Commission has announced a number of additional rules.

First of all, instead of randomly selecting cars off production lines to test they will in future be selected from cars that are already on sale as well as cars from production lines. Recalls will be issued if cars are found to emit different levels of regulated emissions than those suggested by the manufacturer. Financial ties between European test centres and the manufacturers will be cut (I didn’t know there were any), thus making the system fairer.

It seemed that testing could be carried out in any country within the EU in the past for it to be accepted across the EU. So manufacturers were having cars tested at centres where they knew controls were more lax. This is being address with greater controls being imposed upon the test centres.

The Commission is also applying for additional powers to suspend, restrict or withdraw the number of services that a test centre can offer if it is performing at a less than acceptable level. The Commission is also pushing for access to new car ‘software protocols’ and the ability to restrict the use of such devices as the ‘defeat device’ used by VW. I’d have thought these sorts of devices should be banned rather than just restricted!

Whilst it seemed to be a move in the right direction there were some observers who believed the new rules still ‘lacked teeth’. In a damning statement Greg Archer, green vehicles director at campaign group Transport & Environment said, ‘Without the threat of future EU sanctions, it will be  mission impossible to break the strong bond between national regulators and their car makers that has protected the industry but at the cost of higher emissions.’

And I thought I was outspoken! The EU Parliament is now considering the proposals ahead of a debate and vote. If approved the new rules will come into force immediately = as if that could happen! Ridiculous! By Graham Hill

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Graham Hill’s Euro 6 Masterclass

Monday, 15. February 2016

This week, following the VW emissions debacle, I’m going to give you a master class in understanding the new Euro 6 legislation and the effect on both petrol and diesel engines along with some relevant information that I hope you will find of use.
It’s not as boring as you might think because there has been a major change to the driver maintenance of diesel cars that you might like to consider before choosing diesel for your next car. I won’t go through the whole of the European Emission standards since they were introduced in July 1992 but I’ll touch on a couple of relevant points before bringing you bang up to date and reveal a couple of things you may not know about.
When Euro 1 was introduced it was really set up to provide drivers with information about the emissions from their new cars. Whilst limits were set for just a few of the exhaust emissions, CO2, Hydrocarbons (HC) + Nitrogen Oxides (NOx) and Particulate Matter (soot) they were more advisory rather than enforceable.
At the time there was a lot of discussion going on around CO2 and the effect on the environment but more important on the atmosphere, remember the discussions about the holes in the ozone layer? So as each new standard was introduced by the EU they changed from being advisory to statutory and more emissions became regulated. Testing standards were introduced and standard test conditions were introduced to laboratory standards.
Cars tested are not, as some believe and reported on recently, selected by the manufacturer and passed over for testing. Test cars are normal cars randomly selected from the production line and tested whilst being witnessed by Government agencies. In every case there has to be consistency. The environment is very carefully controlled.
The temperature, fluid levels and even tyre pressures are all set. This is about to change in 2017, something I don’t agree with, when they carry out measurements on the road instead of in the lab using portable measuring equipment. This will be known as Real World Driving Emissions (RDE). Really? what the hell is ‘real world’?
Its the same argument over fuel consumption figures. I can drive my car down the same stretch of road 3 days running and return three different MPG’s. Stick my son behind the wheel and you’ll return different readings again. In my opinion there is no such thing and once a car is out on the open road all sorts of dodgy things can be done to ‘fool’ the test equipment.
Anyway, back to Euro 6 which came into force in September 2015. This set the standard for petrol and diesel engine measurements and set emission limits. The limits are set for CO2, along with NOx (the gas that VW was misrepresenting), Carbon Monoxide (CO), Hydrocarbons (THC and NMHC) and finally Particulate Matter that is particular to Diesel (get it – sorry about that).
Whilst CO2 has always been the main concern of environmentalists and Governments around the world NOx has come to the fore with links to lung conditions and even premature death. These links are always debatable but assuming that the data is accurate the problem was already being dealt with by the EU with the introduction of Euro 6. The Euro 1 level of NOx was 780mg/km for diesel engines and 480mg/km for petrol.
Euro 5 saw diesel levels drop to 180mg/km, a huge drop and Euro 6 dropped the level in diesels to 80mg/km compared to 60mg/km for petrol – virtually the same. But in order to achieve this result in diesel cars an additive needs to be added to the diesel, something I’ll come onto in a moment.
There are two questions arising. Are diesels being unfairly demonised and as a driver should you be selecting petrol or diesel for your next car? Fuel consumption is still a big deciding factor for those covering high mileage but should it be such a deciding factor when most drivers are covering around 10,000 miles per annum?
Town mileage can in fact be more economical driving a petrol car compared to a diesel and with Ford working towards a petrol engine that will return 100mpg we may not be far away from the time when petrol cars are more frugal than diesel. But by then the environmentalists will complain that petrol engines always have and always will kick out more CO2’s than diesel. So what should you consider and what has Euro 6 changed?
First of all diesel’s spew out particulates, soot to you and I. However, these are captured by a particulate filter fitted into the exhaust system. However, the particulates are captured in the filter which then needs to be maintained to prevent blockage which will result in lost performance and ultimately the replacement of the filter which can cost up to £2,000.
In order to ‘clean’ out the filter you need to drive the car at more than 50mph for more than 15 minutes every month (see the manufacturer’s handbook). This creates a chemical action that effectively burns off the soot but for some who only drive locally this can be a bit of a chore. There is also the driving style when driving a diesel car. Even the latest cars suffer from a little turbo lag,
This means when pulling away from lights or out of a junction, you put your foot down on the accelerator and it takes a second to get the power into the wheels. You get used to it but it feels a bit weird if you have never driven a diesel before. Oh and a personal tip, always put a plastic glove on when filling up a diesel, in fact I always put two on as the smell seems to immediately absorb into your hand and stay with you for a week, even worse if you transfer onto the steering wheel. Petrol isn’t anywhere near as bad.
Another factor is cost. Generally diesel cars are more expensive than petrol to buy but when it comes to leasing diesels are in such high demand that the resale value ends up making diesel’s cheaper to lease than petrol so a bit of an advantage there. So what has Euro 6 done to make diesel’s less attractive? Well, in order to achieve the lower NOx emissions cars now require an additive called AdBlue.
In most cases the AdBlue reservoir is sufficient to last between services but as some drivers have found, depending on driving style and types of journey the reservoir needs to be topped up between services. Whilst you can buy AdBlue from anywhere that sells oil such as Halfords and is relatively cheap if misused or not topped up when the indicator light comes on you could be into some costly repairs or at best the engine not starting. So bear in mind if you are about to buy or lease a new diesel AdBlue is now something else to take into account.
Finally there seems to be a tide of hate spreading across the country against diesels. Boris has started the ball rolling by saying that any pre-Euro 6 cars will have to pay an extra tenner to enter what is known as the Ultra Low Emission Zone in London. Some councils have already started to charge extra for parking permits if you drive a diesel. Islington Council in London is set to introduce a surcharge of £96 for anyone with a diesel car from April and they don’t seem to be differentiating between Euro 6 and pre-Euro 6. Totally unfair!
So there you have it, you can now make an educated decision between petrol and diesel. The only other thing I haven’t mentioned is Benefit In Kind tax if you run a car through a limited company. The chancellor had planned to eliminate the 3% loading on diesel cars but following the emissions issues with VW he took the ill informed decision to retain it. By Graham Hill

 

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Car Industry Is Suffering A Major Labour Shortage

Monday, 15. February 2016

When I was out with my mates on a Friday night when I was in my twenties, our topics of conversation didn’t include things like the economy, immigrant crisis (although with the surge of immigrants from India and Pakistan at the time maybe it should have been), the weather or the price of a loaf of bread.

As none of us was particularly passionate about football it meant that the whole of the evening was taken up discussing women, cars and more cars. We were preoccupied with radial tyres, straight through exhaust systems and go faster stripes but the new generation of car drivers struggle to understand the concept of checking oil levels and tyre pressures, more interested in the number of watts that the stereo system kicks out and whether the car has heated seats.

There is still a passion for driving cars but not for the way cars are made and run, hence the reason why I believe we have a serious skills deficit in this country. We know that there is a lack of doctors and nurses and some joke about the number of plumbers, electricians and carpenters that have come to the UK from Poland, because we have a lack of qualified specialists in the UK.

But I wasn’t aware that we had a similar problem in the car industry. It seems that manufacturers are having to look abroad for people to work in engineering and on the factory floor because we have a severe skills shortage. I was as surprised to read that it doesn’t stop there.

We even have a severe shortage of sales staff to work in dealership showrooms. Andy Palmer, CEO of Aston Martin who started working with the company as an apprentice, said that the problem spreads wider than the manufacturers.

The problem exists within the manufacturers of hi-tech parts that fit into the cars, they are also having to search abroad for labour or have the parts made abroad and import them. Part of the problem is the growth of the industry which is suffering from its own success.

Whilst the industry continues to grow faster than most other industries, with not enough people to fill the vacancies, there will continue to be a need to bring in labour from abroad, something that this Government seems to be fighting against. The same problem exists in my industry, that of brokers.

When I attend events that are attended mainly by finance brokers it is clear that our industry doesn’t encourage women to join the industry and with an average age closer to 60 than 20 there are few youngsters coming into the industry. This is all very worrying. By Graham Hill

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