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As the new rules imposed upon consumers and small businesses via lenders by the new Financial Conduct Authority (FCA) start to take affect there is a worrying undercurrent starting to gather momentum. Earlier this year I was in a meeting with directors of one of the biggest lenders in the car finance industry.

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 asked what they believed the effect would be of the forthcoming FCA regulations and the rules that had started to filter through. Their response was, at the time, quite dismissive. They pointed out that they had been in the motor finance industry since 1959 and by now they actually knew how to underwrite a customer.

Whilst they weren’t prepared to share actual numbers with me they explained that the amount of delinquency was minimal (that’s the amount of defaults and arrears) and it was certainly manageable so the idea of a Government body telling them what they needed to look out for when underwriting a customer was frankly – ludicrous!

The idea that you needed to carry out some strange affordability tests and have copies of umpteen bills and proofs was simply several steps too far. We all had a bit of a laugh, a cup of tea and a chocolate Hob Nob before moving onto the next item for discussion.

Fast forward a couple of months and that same company is suddenly asking for more information, copies of tax returns, 3 months bank statements and a tree’s worth of paperwork to prove the person is who they say they are. So what has happened? Fines, that’s what has happened.

The lenders who are new to the rules of the FCA have been told that if they don’t tow the line they will be fined – and I mean FINED! Last year the FSA and FCA dished out £472 million in fines, even what many would consider to be minor breaches attracted fines measured in tens of thousands of pounds. So suddenly lenders have had a wake up call and who suffers?

Other than brokers like me, the customers – that’s you! Let me give you an unbelievable example, traditionally lawyers have been extremely low risk applicants as they generally operate as partners which means that all of their personal assets are on the line when taking out finance.

In a recent application, out of 5 partners 4 had houses worth over £1 million and not one had a mortgage, the fifth had a house worth £800,000 with a £200,000 mortgage on it. The company had been trading over 20 years and neither the company nor the partners had a blemish against them.

Perfect you would think. Ohhh no, we even had last 3 months bank statements available showing a balance never less than £70,000 but their year end is September so the last accounts to be completed were for September 2013, which had not been finalised so the last audited accounts available were 2012, too old for the lender, or should I say the FCA when testing for affordability.

The lender then wanted management accounts, which the company doesn’t run. As the senior partner pointed out, they make obscene amounts of money, as explained by their accountants once a quarter, so why would they need to know how much they spent on paper clips or stamps? So no accounts dated within the last 12 months and no management accounts – customer declined.

After appeal we managed an acceptance but with a much larger initial rental to which the customer said no – or words to that effect. The times are certainly changing and in my opinion – not for the better. But the real reason for writing this piece is to warn you if you are due to arrange finance for a new car.

First of all forget the fact that you have had finance before, many funders now ignore that totally, you will be treated as a brand new customer. Make sure that you prepare for finance as I explain in my book, Car Finance – A Simple Guide (available on Amazon), make sure that your last 3 months bank statements are looking good and if they don’t, wait till they do and make sure there are no returned (bounced cheques/direct debits) items on the statements, that would be a straight decline.

logo of FCA (Photo credit: Wikipedia)

Get a copy of your credit report and see what it says, make sure there are no mistakes on there, it is simple enough and that extra bit of preparation could be the difference between getting a car or not. Oh and use a proper broker that can make sure that he can help you along the process, you often only have one shot at finance so don’t let a bucket shop blow it for you. By Graham Hill

Auto Express have just published the results of their driver survey to end up with a top 150 cars as voted by the 50,073 car owners that took part in the survey. The top car manufacturer, up one place from last year was Skoda, who regained this position after losing out to Lexus last year. Not only were they voted top manufacturer they had the top three cars with the Yeti, Citigo and Superb.

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.

A truly excellent company, according to their customers. At position 2 was Jaguar, up a place from 3^rd last year. Ride and ease of driving scored highly with Jaguar owners. Reliability and running costs were not so good, enough to prevent them from taking number one place. 3^rd place was a new entrant, MG.

The revived badge was somewhat of a surprise. The MG6 was top of the pops for handling and a creditable 6^th place in the overall model chart. It shaped up well for running costs although fuel consumption wasn’t so good, servicing costs did well. With only two models on sale MG have done well. In 4^th place, dropping 3 from last years number one slot, is Lexus.

The score achieved this year is actually higher than last year but because of strong competition Lexus has been demoted to 4^th. Nothing has actually gone wrong for Lexus who are still number one for reliability and build quality. It was also number one for in-car tech and runner up for ease of driving.

Very low places for practicality (always a problem when you only produce 4Dr saloons) and high running costs dragged the prestige car down. This was surprising as Lexus have become synonymous with hybrid technology these days. Another newcomer stormed in at 5^th place, the Dacia brand.

However it is thought that this was due to very low expectations and the cars performing better than expected. Areas such as affordability and running costs helped the car up the rankings. But it wasn’t all about low costs as the cars came a creditable 3^rd for reliability and 4^th for practicality.

3^rd place for in-car tech probably had more to do with the fact that some items included as standard were not expected in a budget car. Time will tell but well done Dacia. In 6^th place was Porsche up from 13^th last year. Impressive improvements have pushed them up a deserved 7 places with a score that would have pushed them up to 3^rd last year.

High scores in performance and handling were obvious reasons why they did well but they also scored well in build quality putting them in 2^nd place. Running costs and practicality didn’t help the manufacturer although ease of driving and seat comfort scored highly. 7^th was Kia, staying in the same place as last year.

Kia cars are above average and scored well in all categories without excelling in any particular section. Consistent is the word to describe Kia. In car technology scored well as did running costs helped more by servicing costs than fuel consumption. Performance and ease of driving scored not so well and prevented Kia from doing any better.

At 8^th was Mazda, down from 4^th place last year. Generally the drivers of Mazdas are no less happy than last year, it’s just that other manufacturers have improved pushing the bar higher. Running costs were a little disappointing but there were no major deficiencies, the report should read, not a bad effort but could do better.

Mercedes dropped from 5^th to 9^th but still managed to see off its main German rivals. The results reflected a general satisfaction although owners were not exactly blown away. Ease of driving and build quality helped it past BMW. Running costs scored badly as did practicality. Finally at 10^th place was BMW, up from 15^th.

Good scores for performance and handling contributed to the improved position and with the 5 Series considered to be the best executive saloon the 10^th place wasn’t surprising. For the positions of all 33 manufacturers please refer to Auto Express Driver Power results. By Graham Hill

I’m a bit of a guru when it comes to Internet dating. I’ve had a lot of successes and a few disasters but in the meantime a lot of fun! Internet dating is the second best thing ever invented behind chocolate and I am fortunate enough to have dated women from all backgrounds and ethnicities both young and old (mainly young – what?).

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.

My last serious girlfriend was from the Philippines and in her 20’s. We met online and chatted for a year before we started dating and we dated for around a year. It was great. I met her on Plenty of Fish, a great free dating website, however I wouldn’t meet her today because the Canadian owner has decided that you can only chat to women (or men) plus or minus 14 years of your age.

How ridiculous is that? Women on dating sites can ignore anyone approaching whom they believe to be inappropriate and ultimately they can block them so why impose this arbitrary rule? It’s just this sort of big brother attitude that gets me angry (for obvious reasons). What has this to do with cars?

Well Apple have just applied for a patent that would allow them to lock out their smartphones if they detect that they are being used whilst driving. They will prevent you from sending text messages and using apps whilst behind the wheel. How big brother is that? Whilst I totally disapprove of drivers phoning, texting or playing games on their mobiles (do they actually do that) whilst driving it should just be made illegal not a patent pending!

My somewhat youthful ex girlfriend loved playing something called candy crush on my mobile. Does that mean that whilst the phone could detect movement it would prevent her using the game? I have friends who pass their phones over to their kids whilst driving to entertain them.

Apple Classic Logo Web 2.0 (Photo credit: Alistair Israel)

If they can no longer do that the kids would become ten times more distracting than a text message. Good grief can’t these people think through to the consequences of their actions? By Graham Hill

As I write this on a beautiful bank holiday Monday I see out of my kitchen window several neighbours with their hosepipe, bucket and sponge to hand doing that most tedious of jobs, washing the car. Well if the experiments being carried out by Nissan are successful this mundane weekend job may well be a thing of the past.

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 are currently testing a ‘self clean’ paint on a prototype Nissan Note which the makers claim is resistant to rain and dirt. The coating is sold by Florida based company, UltraTech International Inc. It works by repelling water and oils, creating a protective layer of air. Yes you did read that correctly they claim to create a layer of air.

For me that is one step too far, how on earth does it create a layer of air? Confused the hell out of me but no doubts someone will get back to me with an amazing answer based on chemical reactions or the pull of the moon against gravity. The real test will be whether at the end of the trials the car is still clean or not.

So far the tests have gone well, according to Nissan, the only manufacturer to apply the nano-paint to date. According to reports Nissan will make this an aftermarket option should the tests go well. What?

How to you make paint an aftermarket option? Carpet mats are an aftermarket option, a tow bar is an aftermarket option, things that the dealer can fit once the car is built are aftermarket options. Are they considering re-spraying the car with Nano Paint after the car has arrived at the dealership? Is it my age???? By Graham Hill

Related articles

• Nissan shows self-cleaning car coated in nano paint (autoblog.com)

I have never had a particularly high opinion of insurance companies, not helped by the refusal of Zurich, probably the most crooked insurance company that I have ever encountered, not paying out on a perfectly valid claim when I accidentally spilled a bottle of Lucozade into my laptop computer.

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 conveniently retained no copy of the original conversation that I had with the claims person, then produced a scrappy piece of handwritten paper considered to be a ‘transcript’ of our conversation which was a complete fabrication and actually a disgrace and fraudulent in itself.

This didn’t compare well to the transcript provided by Saga of the conversations I had when I took out my policy. The transcript was independently created, word by word, by an outside agency and the script went on for many pages. I was accused of fraud in the most ridiculous of fashions. I complained to the Financial Ombudsman service.

In the first instance an adjudicator reviews the case and gives an interim decision. This is not legally binding but gives an indication as to what the Ombudsman would conclude. On two separate occasions the adjudicator found in my favour and twice the crooked Zurich refused to accept the obvious conclusion reached by the adjudicator.

Finally after two and a half years, yes I said two and a half years the Financial Ombudsman was able to review my case and immediately found in my favour, instructing Zurich to remove all references to fraud or any other references to ill doing on my part from all files. To pay for the replacement of my damaged laptop and compensation along with interest.

Whilst, in my opinion, Zurich are the worst insurance company on the planet, they are probably not alone. A recent report showed that the average car insurance policy runs for 18,000 words taking the average driver over an hour to read. Whilst insurers would claim that they are making sure they cover all eventualities, the cynics, me included, would simply say that they are including as many reasons as possible in order to decline an insurance claim.

According to Fairer Finance, the creators of the report, Endsleigh had the biggest policy containing 37,674 words, more than George Orwell’s classic, Animal Farm. Sheila’s Wheels were next with 32,860 words followed by Esure at 32,631 words. LV was by far the lowest at 6,901 words with next best being Nationwide at 9,302 words.

Fairer Finance are running a campaign to remove unnecessary small print in insurance policies. In order to make the point they analysed over 40 insurance policies, coming up with the average number of words. I agree with them, finance documents have already been scrutinised to keep them simple so applying the same rules to insurance policies is way overdue.

73 percent of people admit to not reading their insurance documents whilst only 17 percent admit to reading and understanding their policies. The conclusion reached by Fairer Finance was that paper is being wasted and raises the question why one company can have a policy of just 7,000 words whilst another uses 5 times as many words to say the same thing.

The Plain English Campaign said that the findings which revealed that some policies were longer than a major novel is a disgrace. A spokesman went on to say, ‘It is difficult to see that this is anything other than a cynical ploy, designed to confuse and frustrate the customer.’

I would go further and say that the longer the policy the more likely they have included obstacles to meeting  legitimate claims. Avoid them and also avoid Zurich who are incompetent crooks. Let’s see what they have to say when they read this, I still have all the evidence – give it your best shot you idiots! Oh and this isn’t the end – this is just the beginning!

That’s why I respectfully accepted the findings of the Ombudsman but refused the proposals as the compensation after 2 and a half years was insufficient. If you have had a claim with Zurich refused please let me know, whether it is car related or not. By Graham Hill

Related articles

• Car insurer small print can be longer than Animal Farm, study shows (theguardian.com)

We have seen, over the last few years, some changes to car lighting. Halogen and Bi-Xenon lights have been lighting up our roads brighter than ever and we are now seeing some very strange driving lights/headlights and tail lights thanks to strings of very powerful LED’s. But according to experts ‘We ain’t seen nothing yet’.

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.

We are likely to see some major influence from China as car designers develop cars with the Chinese market in mind. If you look around any big Chinese city you will see buildings that appear to glow. This same technology will be used to give cars a glow with a very defined outline making the car easier to see at night.

VW/Audi are already looking into this technology for the outside as well as looking at new ways of lighting the interior with different types of ambient lighting. According to VW’s design director in China, Simon Loasby, we will see many more Chinese influenced design changes being introduced into cars for the European market.

One such design development will be the windscreen air filter, seen to be essential in China due to the high levels of pollution. No I haven’t got a clue as to how it would work either! What next? Built in Wok and free Geisha girl? Hmm, don’t get me started. By Graham Hill

Last week I was thumbing through the latest edition of Credit Today, one of the journals I always try to read more thoroughly than any of the others, not only because it has a fairly good handle on the industry but also because a very good friend of mine, Fred Crawley, is the managing editor.

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.

So I was disappointed to see that a round table event had been held without my presence. I was more disappointed about the comments of the good and the great in the industry.

Motor finance currently runs at a massive £28 billion per annum and not only accounts for a slice of profit earned by the dealers but more important, and often overlooked, is that finance contributes heavily towards the sales of new cars, making it possible for consumers and small businesses to afford new cars rather than used cars.

The thrust of the debate was the effect of the new Financial Conduct Authority (FCA) regulations and the effect on the industry. Virtually everything that was raised was to do with us, being dealers or brokers and them, being the lenders. There was a complete dog’s dinner of comments, speculations and suggestions but guess what?

I couldn’t find one sentence that mentioned the potential problems to consumers and small businesses. There was a lot of sympathy and even empathy for the lenders but what about the bloody borrowers. Why is it that the Government, and virtually all of the consumer and small business finance industry, walk around with their heads firmly planted in their jacksys?

They continue to make bold statements, explaining how they are setting out to protect consumers and SME’s but when you want to finance a replacement fridge, TV, car or essential equipment for your business how does it help when the lender explains that you have failed the new FCA imposed affordability test?

And where will all this leave the economy, it’s a sad fact of life that when people borrow money from a payday lender they often need it for essentials or some sort of an emergency like the freezer breaking. Either way the money doesn’t sit around in a bank account – it is spent which continues to help the recovery.

Creating barriers to lending will flatline the economy and could send us back into recession. We are in sensitive times, we need finance to keep the economy moving forwards but I seem to be a lone voice in the wilderness. Only time will tell, lets hope that common sense prevails and lenders continue to do what they do best – lend bloody money! Rant over! By Graham Hill

Oh dear oh dear oh dear! That was me uttering under my breath as I slip on my Mr Grumpy hat. I just read about a Fiat driver who took his car into an independent garage to diagnose a problem. The problem was a faulty turbo unit.

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 garage called a Fiat dealer and was given the price of the replacement re-conditioned part as £399 which the customer agreed to pay. However, when the part arrived it also arrived with a bill for £542 with no explanation, an increase of £140. The independent garage said that they would have to pass on the increase but provided no explanation.

After querying it Fiat explained the increase by saying, ‘Many components are improved and upgraded over time but, on this occasion, it seems the old unit was still on the system, even though it was no longer available, hence the different price.’ However, no doubt as a gesture of goodwill the customer was given £150 worth of vouchers to be used against service costs and parts over the next 12 months.

What a load of bull poo! First of all why are dealers and manufacturers so crooked and secondly why are customers so bloody naïve? There is such a thing as the Sale of Goods Act that protects buyers of goods and an Office of Fair Trading from whom you can get advice and support so why are people writing into magazines and newspapers who guess at the answers to legal problems?

Let me explain the situation we have here. Don’t confuse this transaction with walking into a shop and buying something on the shelf that has a price ticket attached. The price ticket has nothing to do with the contract of sale it is what is known as ‘An Invitation To Treat’.

The shopkeeper is not obliged to sell the item to you at the price on the ticket. It is a suggestion, you then make an offer to buy the goods at the price on the ticket and the shopkeeper normally accepts. If the shopkeeper has made a mistake when pricing his goods he doesn’t have to sell it to you at the mistaken price.

That is a fact! However, this isn’t the case with respect to the turbo unit. The independent garage entered into a contract with a Fiat dealer to supply a part for a car. The dealer agreed to supply the part and the garage agreed to pay £399 for the part, in turn agreed with the customer. That’s it, end of story, turn out the lights on your way out!

If either party fails to perform then they are in breach of contract and the aggrieved party can seek compensation. In this case, if the dealer agreed to supply a part that no longer existed that was his problem not the garage that ordered the part or the customer. If, in order to perform their part of the contract, the dealer had to supply a more expensive item he has to suffer the loss, not the garage or in turn the customer.

This is absolutely ridiculous and Fiat probably know that this is the case but have screwed the customer – it’s simply not on. When will the car industry start to act honourably but more important when will consumers wise up? Oooh I get so angry! By Graham Hill

Currently when you reach the age of 70 you have to renew your driving licence. However, according to the Department for Transport this should be extended to the age of 80 in order to reduce DVLA costs and make it more efficient.

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.

Following a review, on behalf of the Government, the DfT concluded that we should change the rules to bring the UK in line with Europe who already have a renewal age of 80. At present there are over 4 million motorists over the age of 70 which represents a substantial amount of administration at renewal time, so by extending the renewal date the admin costs will be cut significantly.

But safety campaigners object to the proposal on the grounds of health and safety. In fact they suggest that there should be increased controls on the elderly not less which could cost lives. I don’t agree, not least of which as I am edging my way towards 70 I don’t really want to have to renew my licence.

Department for Transport (Photo credit: Wikipedia)

On the other hand the government could take the savings and fix a few more potholes which would prevent many more accidents than extending the licence renewal dates! By Graham Hill

Related articles

• Cost-cutting Coalition to let pensioners drive till they’re 80 without renewing licence (mirror.co.uk)

How safe do you feel driving to work on a Monday morning? If the statistics produced by swiftcover.com are anything to go by you should feel less safe than any other day of the week. According to their 2013 claim data drivers were more likely to have a driving incident resulting in a claim on a Monday (17%) than any other day of the week.

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.

You are 36% more likely to have a windscreen claim on a Monday than any other

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)

day, their statistics showed that the average was 10,000 on a Monday compared to the daily average of 7,922. Monday also sees a rise in single vehicle incidents, i.e. a car that hits a bollard or lamppost with no other vehicles involved. So what are the reasons for this higher number of incidents on a Monday?

Maxine Tighe, head of motor claims at swiftcover.com, suggests that it is the result of bleary eyed motorists recovering from the weekend and trying to get back into work mode lacking concentration. They found that whilst Monday was a bad day for single vehicle collisions Friday was the worst for multi-vehicle collisions as people dash home for the weekend, especially during the rush hour mayhem.

The weekend is safest as there are fewer cars on the roads. On the other hand loss of keys, vandalism and theft all rise on a Saturday and Sunday as cars are more at risk parked outside homes. How very very interesting swiftcover.com! Yawn!