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As my regular readers know I receive from one of my dealer contacts information that they receive from a firm of lawyers – well-known for defending dealer clients against consumers who sue for a variety of failings.

In the latest missive they explain what the dealer needs to do to avoid handing back a deposit paid. They used a case as an example whereby the customer had not declared that his part-exchange had not been a write-off and then couldn’t get finance anyway. The customer asked for his deposit back but when his request was declined he sued.

According to the lawyers the dealer did the right thing by taking the deposit THEN checking HPI only to find that at some time the car had been a Category D Write-Off. The invoice from the dealer had a statement that the car to be part exchanged had never been involved in an accident or written off by the insurers.

They admit that the customer probably had no idea that the car had been a repaired write off but by then the dealer had the deposit from the customer. The dealer called the sale off following which the customer heard that his application for finance had been declined.

Following this the customer asked for his deposit back which was refused in total. A court case ensued. The lawyers maintained that the case could not succeed as the cancelled sale  was no fault of the dealer.

The judge found that the dealer was able to recover any loss and expense caused by the cancellation of the deal and therefore entitled to keep the deposit. The lawyers explained that the dealer’s position was helped by the fact that they had followed advice and put into the terms included on the invoice that the deposit was not refundable.

They argued that as the customer had signed the invoice that he was aware that the deposit was not refundable. They even went on to say that had they carried out work on the car at the customer’s request they could have even invoiced for more.

I’ve seen plenty of articles from these solicitors that surreptitiously encourage dealers to act in an underhand way. It’s these areas that the FCA should be concentrating on – not APR’s.

So my advice is, as always, try to avoid a deposit. If you have to pay one to secure a car pay as little as possible – you may not get it back. Before paying the deposit get the dealer to carry out his HPI check to make sure that he isn’t going to use what he finds out later to hold on to the deposit. If the dealer was treating his customer fairly he should have done that before taking a deposit.

You should also make your finance application before paying a deposit. Again if the dealer was treating his customer fairly he would have done that as a matter of course. Having a statement included in the terms and conditions of sale saying that the deposit is non-refundable is on the edge of being illegal. The legal position, as was stated by the judge, is that the dealer can retain any costs and expenses paid over once you have signed the agreement then subsequently cancel.

By signing you enter into a contract so you are in breach if you cancel. However, the dealer can only recover his costs and expenses. Clearly, without saying so, the lawyers are suggesting that dealers include the term Deposit Non-Refundable as most people don’t know the law and may think that they can’t get their deposit back.

They are a disgrace. By Graham Hill

Please Note: B&C (proof) means that if you are making a personal application you need to be able to prove with a letter that you receive car allowance from your company. You cannot have the rate as a consumer if you don’t receive a car allowance. B&C means that the same rate is available for all businesses and all consumers. The rates shown above are mainly 9 rentals in advance. For more information click the line below.

Almost two-thirds (63%) of drivers break the speed limit at 4am, with Sunday the most

common day of the week for speeding, new research suggests.

The data, obtained from the Department for Transport by price comparison site MoneySuperMarket, reveals that more than half of vehicles exceed the speed limit on a Sunday (53%), with Saturday coming in a close second (52%).

By comparison, drivers are most likely to abide by the law on a Wednesday, when less than half (47%) exceed the limit.

In terms of the time of day, motorists are most likely to exceed the speed limit during the early hours of the morning, with 63% doing so between 4am and 5am, when the roads are clearer. Conversely, between 3pm and 5pm is the time when the speed limit is most likely to be obeyed (55%).

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, said: “Our findings suggest that drivers are looking to take advantage of emptier roads on weekends and in the early hours, but it is important to remember that there are still major safety rules to abide by, no matter what time it is.”

The research also found that Yorkshire and the Humber (10%) are twice as likely to have been convicted as those in London and Northern Ireland (both 5%).

The study also analysed drivers’ reasons for speeding, with most saying they simply were not paying attention to their speed (42%). In addition, four in 10 drivers say they were running late (40%), while 17% did it out of habit.

Previous research has shown that there is a disparity in the number of drivers detected for speeding offences suggesting a postcode lottery, according to Home Office figures.

In 2017-18, research by the RAC Foundation revealed that 1,191 road users were caught speeding in Wiltshire compared with 199,337 in Avon and Somerset, 167 times more.

Analysis of the figures by Dr Adam Snow for the RAC Foundation, showed that 2,292,536 speeding offences were detected across England and Wales in 2017-18, a 4% rise on the 2,213,257 figure for the previous year (2016-17).

Of these detections: 44% resulted in the offender being sent on a speed awareness course; 34% attracted fixed penalty notices (FPN); 11% were later cancelled; and 10% resulted in court action.

Most common days for speeding

By Graham Hill With Thanks To Fleet News

Drivers are being urged to be vigilant after a huge rise in the number of catalytic converters being stolen from cars.

Police in London say the number of thefts in the first six months of 2019 was 2,894, a 73% increase on the 1,674 stolen in the whole of 2018.

In Cambridgeshire, there were 61 reported thefts between June 20 and August 14, with 44 of these from Honda Jazz, Toyota Prius or Toyota Auris cars.

The catalytic converter is part of the car’s emissions control system and its value for recycling is the main attraction to thieves because they contain precious metals such as rhodium, platinum and palladium.

The price of certain precious metals have skyrocketed in the past 18 months: palladium is now worth £1,300/oz, while rhodium goes for £4,000/oz, metals merchant FJ Church and Sons told the BBC.

Although there are 10,000 different types of converters, the cars that are most often targeted are hybrid vehicles.

Since hybrid cars have two power sources – electric and petrol or diesel – the catalytic converter is used less frequently to process pollutants.

The metals are less likely to corrode, meaning they are worth more and therefore more attractive to thieves.

Cambridgeshire Constabulary advises motorists to take the following precautions:

Park close to fences, walls or a kerb with the exhaust being closest to the fence, wall or kerb to make theft more difficult.

Invest in a catalytic converter lock, which can be fitted retrospectively and physically locks the converter to the vehicle, thereby preventing a quick and easy removal.

If your catalytic converter is bolted on, consider having the bolts welded to make removal difficult.

Mark your catalytic converter with a marking and registration system. This will not protect against theft, but will act as a deterrent and assist in returning property.

If you park on your driveway then consider purchasing a video doorbell and/or a driveway alarm to alert you to suspicious activity.

Car manufacturers have also taken steps to protect catalytic converters from theft. Honda, for example, has fitted Accord and Jazz models from 2008 onwards with a tray under the car to make it harder for thieves to get at the catalytic converter.

In models from 2015 onwards, the catalytic converter has been placed within the engine bay, so a thief would need to disassemble the car to get at it.

Toyota has developed a Catloc device, which costs between £200 and £250 (depending on model) which makes it harder for thieves to detach the catalytic converter from the bottom of the car.

It has also reduced the prices of replacement catalytic converters and Catlocs to a level where Toyota GB does not make any profit from supplying them to customers.

Toyota’s recommended prices for a bundle that includes a new catalyst and a Catloc are £950 for Auris Hybrid, £1,000 for Prius Gen 2 and £1,050 for Prius Gen 3.

Its website adds: “We are urgently exploring new technical possibilities to deter criminals as well.” By Graham Hill Thanks To Fleet News

Defective brakes were the leading cause of road accidents – where a vehicle defect was a contributory factor – for the sixth year running, new figures suggest.

The data, from the Department for Transport (DfT), reveals that defective brakes contributed to a total of 3,894 accidents from 2013 to 2018.

It also revealed the highest number of fatalities due to defective brakes occurred in 2018 with 15 deaths – representing a 67% year-on-year increase compared to 2017, according to analysis by Pagid.

There have been 64 fatalities due to defective brakes since 2013.

Conversely, the overall number of road accidents and casualties, where a contributory factor was identified, have decreased by a fifth (22%) since 2013, with a 9% decrease from 2017 to 2018.

The second leading vehicle defect as a contributory factor, with 11% fewer accidents over the past six years was illegal, defective or underinflated tyres, which contributed to 3,449 accidents.

There have been 5,705 casualties in road accidents where defective brakes were a contributory factor over the last six years; 7% more than in accidents where illegal, defective or under-inflated tyres contributed.

Phil Woodcock, Pagid key account manager, said: “While there could be several reasons why brakes are consistently coming out as the top vehicle defect in road accidents, consumers need to be aware that worn brakes are a big problem and present a serious danger to the public.

“Drivers need to be able to trust their brakes in extreme situations, and although they are checked during the annual MOT, 12 months is a long time, especially if the car has received an ‘advisory notice’ that they are partially worn.

“It is therefore worth getting them checked in-between MOT and service intervals especially if the driver notices any warning signs such as an audible squealing sound or abnormal vibration when the brake is applied.”

Outside of London and the South East which had the highest proportion of reported accidents due to defective brakes, the South West had the most accidents over the past six years (2013-2018) with 442 accidents due to defective brakes.

The North East had the lowest number of accidents due to defective brakes, with 132 over the same period.

As well as defective brakes, the Government data lists five other vehicle defects in this category: illegal, defective or under-inflated tyres; defective lights or indicators; defective steering or suspension; defective or missing mirrors; and overloaded or poorly loaded vehicle or trailer.

There are 78 factors overall which fall into nine categories, these are: road environment contributed; vehicle defects; injudicious action; driver/rider error or reaction; impairment or distraction; behaviour or inexperience; vision affected by external factors; pedestrian only factors (casualty or uninjured); and special codes.

Pagid is an OE-approved braking brand of TMD Friction, which produces over one million-brake friction products across Europe every single day and invests €30m in R&D annually.

Every friction formulation is road tested for 300,000km with its own fleet of test cars, and 1,000 hours on a dynamometer. By Graham Hill With Thanks To Fleet News

Poor car seats are causing more than a third of UK drivers to take one day off work a year for back pain, costing more than £8.8 billion annually in lost productivity.

The findings, from exclusive research by Volvo Car UK, show that 12% of respondents have taken up to two days off work for back pain from poor quality car seats, while 13% have had to ask up to four days of sick leave from their employer.

Meanwhile, one in 20 (5%) have had to have a full working week off, while another 5% have asked for seven or more days of rest.

If this was reflected across the whole driving population, Volvo suggests that back pain resulting from poor car seats is costing the UK economy £8.8 billion in lost productivity.

The pain from poor car seats is bad enough for nearly a third of drivers to see a doctor or physiotherapist, costing the NHS £191.94 million in GP appointments and hospital visits, it says.

The findings were revealed during Backcare Awareness Week.

Kristian Elvefors, Volvo Car UK’s managing director, said: “Back pain from poor quality car seats is a bigger problem than many think.

“Not only is it costing the UK economy billions in lost productivity as employees take sick leave, but poor quality car seats are also placing an unnecessary burden on the NHS, costing hospitals and GP surgeries hundreds of millions a year.

“Volvo is committed to ensuring that all of its customers, regardless of shape or size, find the seats in their car incredibly comfortable and pain-free.”

Men are more likely to find the seats in their car uncomfortable, with 15% of male drivers saying their car seats often cause them back pain when driving for work purposes.

Half the men surveyed admitted to taking at least one day off work for back pain from driving, while only 25% of women had to call their employer for sick leave.

Men were also more likely to see a doctor for back pain, with 40% doing so, while just one-in-five women found the seats in their car so bad they had to go to a GP or physiotherapist.

However, the research found men drive on average more than women, with men covering on average 60 miles a day, while women drive just 30.

Volvo was one of the first car makers to incorporate spinal research into its seat design, starting with the Volvo Amazon in 1965.

Today, Volvo has a three-tier approach to seat comfort, focusing on Initial Comfort, Cruising Comfort and Dynamic Comfort – to ensure drivers and passengers remain relaxed and fully supported throughout their journey, regardless of the length or type of road.

Tommy Apell, senior attribute leader for seat comfort at Volvo Cars, said: “At Volvo, we specifically opt to use softer foam compounds for our seats to ensure the fit is comfortable across all body shapes and sizes.

“We also specially tune our seat springs for improved comfort, with the ergonomics team working alongside designers to ensure things like seat stitching don’t create pressure points for drivers and passengers.

“Our lengthy development and testing programme means new seats take up to five years to move from concept to finished product.”

According to Volvo Car UK, seat comfort is a key priority for 63% of UK drivers, with nearly one-in-five going as far as swapping a previous car for a model with better seats.

More than one-in-10 drivers also admitted they had passengers refuse to get in their car because their seats were so uncomfortable.

When asked which areas they would like to see improved, the majority of drivers wanted more lumbar (lower back) support, while a third wanted more adjustability to suit their frames. By Graham Hill Thanks To Fleet News

GEM Motoring Assist has suggested the current eyesight tests for drivers are ‘long out of date’, with the road safety organisation calling for tests every 10 years.

Neil Worth, GEM’s road safety officer, has said the Government should update laws to ensure a detailed eye examination is part of drivers’ photocard licence renewal process, which takes place every 10 years.

Worth said more than 3,000 fatal and serious injury collisions occur each year because of poor vision.

He added: “We believe it is entirely practical and sensible to require a test of visual acuity and field of view every 10 years, something that would fit in with licence renewal.

“Tests of this kind would not only make our roads safer, saving lives, disability and many millions of pounds through the reduction in the number of crashes, but they would also play a vital role valuable tool in the early diagnosis of many other costly medical conditions, irrespective of driving.”

GEM has worked with Felicity Gill, a community optometrist, who explained that she sees patients daily who are concerned about their own driving, as well astheir friends and family members’ driving experiences.

The most common ageing change in the eye is cataract (clouding of the lens inside the eye), with conditions such as diabetes/diabetic eye disease, glaucoma and age-related macular degeneration also causing concern.

With drivers staying on the road to their 80s, GEM believes that regular eyesights should be mandatory.

Worth concluded: “There are many benefits for a driver to staying mobile as long as possible. However, safety must remain the number one priority for everyone.

“We also cannot ignore the greater volume of traffic and the general increase in distractions, both inside and outside the vehicle, which further point to the clear need for more regular and detailed eyesight testing.”  By Graham Hill & Fleet News

Company fleet managers have been praised for educating drivers around the use of AdBlue, but the AA says education of all drivers must continue.

The latest data from the AA shows that there were 5% fewer call-outs related to the diesel exhaust fluid in the first half of 2019, compared with the same period the previous year.

The news follows a peak last year, in which the organisation reported seeing 23,000 AdBlue-related breakdowns in the 12-months to June 2018.

While diesel sales are down almost 20% year-to-date 2019, the fuel-type still makes up more than a quarter of new car sales.

In addition, the roll-out of Euro6 emissions regulations and Selective Catalytic Reduction (SCR) technology means that AdBlue usage is on the increase.

However, AA technicians told Fleet News that fewer drivers are making the mistake of running out of the fluid while call-outs related to system faults are also on the decline.

Stuart Thomas, director of fleet and SME at the AA, said: “Last year a lack of driver education was leading to significant AdBlue breakdowns, but we are pleased to see that knowledge levels seem to be on the increase.

“Fleet managers are obviously doing a good job updating drivers on what they need to do. And, if you’ve run out once, you are unlikely to make the same mistake again.”

Despite the positive trend, the AA’s Business Services team is keen to emphasise that educating drivers is far from over.

Most drivers will need to top up their AdBlue at least once between services, so it is important to keep an eye on dashboard warnings, particularly for high mileage fleet drivers or those who are jumping in and out of different cars in the company pool, it said.

Thomas continued: “We’ve all done it, jumped into an unfamiliar car and decided to take a chance on leaving the warning lights for the next poor person to get behind the wheel.

“However, when AdBlue runs out, the engine’s power and performance will be severely limited, and you won’t be able to restart the engine when you stop.

“The good news is that the warnings will come up with plenty of time to get your car topped up. The onus is on drivers to keep their fleet managers informed if they don’t get it sorted themselves.”

AA technicians are also warning fleets not to get caught out when the weather turns colder this autumn and winter.

Thomas said: “Changes in the driving conditions, whether that is heavy payloads or extreme weather, can significantly impact how quickly you get through your tank of AdBlue.

“The size of the tank also makes a massive difference. While you might top up anywhere between every 3,000 and 12,000 miles in the spring and summer, this could drop dramatically in the cold weather.”  By Graham Hill – Thanks To Fleet News.

On the 15^th October the FCA published its report into the way that PCP has been sold by dealers and brokers. Unfortunately, it focused on the way that they uplift interest charges to pay themselves commissions instead of the more important areas of blatant mis-selling.

Here is what I said about the report.

I was disappointed to read the update from the FCA and see that they have made such a major issue over the commission paid for organising finance rather than the plethora of other areas that could result in mis-selling and consumers losing out.

We must first stop treating PCP and Personal Contract Hire as finance agreements. Even HMRC has partially recognised this by introducing two ways of recording PCP agreements. If the agreement is set up with a final payment that is below anticipated value of the car, leaving equity in the car for the customer, it is treated as a finance agreement.

If there is no equity planned the agreement is regarded as a ‘Service Agreement’ and attracts VAT on the monthly payments (as well as VAT adjustments on the purchase of the car and the sale of the used car).

Once it has been agreed that the products are not simple finance agreements we need new laws to cover them as current laws are totally inadequate.

Given the nature of PCP’s you cannot simply extract one part of the equation and target that one item as a way of penalising the providers, i.e. car dealers and independent brokers. The actions proposed will not benefit consumers as dealers will simply move the lost income out of the commissions paid on finance to decreased discounts or reduced manufacturer subsidies.

With dealer groups reporting poor performance and issuing profit warnings they have to get their income from somewhere. APR is simply part of the marketing equation. When a dealer advertises 0% APR or low rate (subsidised) APR it doesn’t mean that he receives nothing in commissions.

The manufacturer will simply pay the dealer out of the discounts or subsidies that the customer no longer receives due to his attraction to either low rate or zero rate APR.

The APR could also reflect the amount of time that the dealer spends explaining and putting the finance in place. This is certainly the case with independent finance brokers. They earn their commission out of the interest charged thereby spreading the cost for the customer rather than charge a fee.

The broker needs to know how and where to place the business using a panel of funders. As we know the higher the risk the higher the interest charged and often increasing the time the broker spends on the case which has to be paid for.

Let’s face it customers are really only interested in what they have to pay upfront and what they pay monthly. The slicing of the cake is of little interest. The downside is that if dealers and brokers lose the ability to set rates and commissions to suit the circumstances we will see wholesale shut downs of dealers and brokers – is that really good for competition?

It will also mean that dealers and in particular brokers will concentrate on the easy cases leaving those with tarnished credit unable to get to work or take their kids to school because they can’t get finance for a car.

Finally, I would say that we need new laws to cover PCP and PCH agreements. APR and monthly payments are both negotiable and walkaways. Tell a dealer or broker that you won’t pay the APR on the quotation it’s up to him if he wants to see you walk out of the door or negotiate a better deal.

It is possible that the dealer is using his finance commission to increase the part exchange allowance. It is a complicated calculation. What we need are laws that cover the selling of ‘add-ons’, excess mileage charges, end of contract condition when the car is handed back, what happens to your agreement if you die or are unable to drive, etc. etc.

We also need clarity over the anti-competition activities of dealers such as Pendragon Group and other dealers when they refuse to invoice finance companies selected by consumers to provide their finance as they are not their own finance providers or on their panel of providers. Some will invoice a 3rd party funder but charge the customer between £250 and £500 for the privilege. Now that needs attention!  By Graham Hill

European Union called on to “ramp up” hydrogen stations in the face of “severely lacking” infrastructure.

Car makers have urged the European Union to “ramp up” investment in hydrogen filling stations, as the current infrastructure is “severely lacking.”

The European Automobile Manufacturers’ Association (ACEA) says “a strategic plan for the pan-European deployment of infrastructure for fuel cell vehicles needs to be put in place”, with the organisation also calling for consideration to be given to the requirements of hydrogen lorries.

The majority of the focus on provision for alternatively fuelled vehicles has been around electric cars and their charging points, with hydrogen vehicles left behind.

Some 17 new hydrogen stations were opened in Germany last year, bringing the total number in the country to 60; that compares to roughly 25,000 EV chargers. In the UK, there are around 15,000 EV chargers, against just 17 hydrogen stations.

Critics of hydrogen cars point to their expense (the Hyundai Nexo and Toyota Mirai both cost upwards of £60,000) as well as their rarity and complexity. Generating hydrogen fuel, meanwhile, is also problematic, with the majority of the element captured using fossil fuels.

But hydrogen advocates cite the fuel’s advantages, namely that cars running on hydrogen can be refulled as quickly as models with petrol and diesel engines and offer similar range. The cars themselves produce no tailpipe emissions other than water.

Hydrogen generation methods, meanwhile, could in theory move away from fossil fuels in future years, just as electricty generation has, to some extent. Research by Auto Express, meanwhile, found that some organisations were covering higher mileage in hydrogen cars compared to EVs.

The ACEA’s director general, Eric-Mark Huitema, said: “Along with other alternatively-powered vehicles, fuel cell vehicles hold a strong potential to help make the transition to zero-emission mobility.

“But their ability to reach this potential depends on a network of hydrogen refuelling stations being built up right across Europe. Today, there are just 125 hydrogen stations in the EU, so there is much work to be done in the coming years.”

Hydrogen cars will overtake electric cars, expert claims.

Electric power for cars “has its limits” and cars will be hydrogen-powered from 2030, an automotive-industry expert has said.

Dr Felix Gress, head of corporate communications and public affairs at automotive technology firm Continental, told an audience in Germany that electric cars represent poor value for money compared to petrol or diesel alternatives.

“For the customers, it will be difficult to accept such a car in the market – you pay a higher price, you get less of a car, so it will be a tough sell.”

And, while EVs may be grabbing the headlines and industry attention, Gress predicted that focus will be reversed within a decade or so. “The fuel cell is not ready to kick in yet,” Gress added. “By 2030, we’ll see that coming, especially in passenger cars that run long distances, or trucks.”

Gress added that manufacturers need to focus on electric cars in order to lower their fleet emissions and meet upcoming regulations in various markets, many of which have plans to limit or ban the sale of new conventionally powered petrol and diesel cars.

While these motivations may be driving the automotive industry, Gress warned drivers may not actually buy electric cars large numbers, partly due to what he perceives as their inherent limitations. “The battery technology, according to our estimations, has its limits,” he admitted, adding that “it doesn’t generate enough range” for some people’s needs.

Circling back around to the topic of hydrogen vehicles, Gress said this was something Continental is considering. “Fuel cell is not out of reach, I would say. The question is when it would kick in. We are working on that area, too.”  By Graham Hill & AutoExpress