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Years ago when I was working in industry I was a Cost and Management Accountant. We manufactured, installed and leased fire alarm and hotel communications equipment. We developed a new fire alarm system to meet the new fire alarm laws that were being introduced into small public buildings, scout huts, church halls, meeting rooms etc.

Our designers came up with a swish control panel which was latest technology with transistors and other miniature gubbins. It made the unit much smaller and also cheaper to make. Before going into production our chairman, himself an engineer, wanted to see this newly designed product line. He collected me en-route to the design department and I went through the costings – he was impressed.

However, when he saw the miniature size of the unit I saw his face drop. He asked the sales director how much we were leasing the unit for and how much we were selling it for cash? After hearing what we were selling the unit for he turned to the head designer and said ‘Double the size of the box’. The designer said, ‘But sir we don’t need to put it into a bigger box’. The chairman’s answer was, ‘You do if we’re going to sell it for £500’. The box size was doubled and the inner workings remained the same.

So what has this lesson in perception have to do with cars? Well, it seems that in these times of miniaturisation the most popular cars are the big and bulky SUV’s. Just about every manufacturer has some sort of 2WD or 4WD SUV in their range with the likes of Audi, Mercedes and BMW having up to five, six or even seven in their line up.

Motoring experts describe them as boxy, raised hatchbacks with high running costs and compromised road handling. Totally impractical, unable to fit into most garages or parking spaces. But the manufacturer’s love them because, without a doubt, they are the most profitable cars in their ranges. Big is best as they charge disproportionate amounts for these cars compared with their smaller saloon car equivalents.

According to Audi’s product marketing chief, Jens Meier, the SUV proliferation has helped to benefit the wider car manufacturing industry. As he explained to Auto Express, the increased profit generated from SUV sales is helping to finance development work in the sports car division, cars such as the TT, RS5 and R8. He sees their advancement in sports car design as a bi-product of SUV success.

Very often the SUV’s share the same platform with saloon cars in the range along with engines and other mechanicals but the big skin adds substantially to the perceived costs by customers who pay more for the jacked up versions whilst the manufacturers wring their hands with joy. My old boss had it right all the time! By Graham Hill

I’ve been in this industry for over 30 years and it worries me greatly the levels of incompetence displayed by those at the sharp end. I don’t blame the sales staff, it often stems from the top. Directors and senior management struggle with basic product knowledge that spreads like a cancer throughout the organisation.

Whether it’s an independent dealership, dealer group, bank owned finance company, manufacturer-owned finance company or independent their basic knowledge is abysmal. Unfortunately, this attitude spreads throughout the organisation which means that customers are incredibly poorly informed and likely to make wrong financing decisions or the right decision but unaware of all the implications and the potential true costs.

I broke the story over 2 years ago that the PPI claims industry was eying up the car finance industry and the new regulations that were being introduced by the relatively new FCA. They were getting a sniff that all was not well inside the industry and there was potential for mis-selling claims.

If you think of what happened when a PPI claim was successful, people were having all their premiums returned. Could this mean that customers could have all their payments returned and the car given back as a result of being given bad information by an ill-informed or crooked salesman? The first test cases will give us an idea.

In the meantime, I see false reporting in the press and idiots masquerading as experts giving poor advice to consumers. There is little doubt that I am rapidly becoming the most influential person in the UK when it comes to vehicle finance. My appointment as non-executive director of one of the most progressive PR companies in the UK will help this along. Especially as the company chairman is as gung-ho as I am and supports me.

To illustrate my point I’m not going to mention names in order to avoid any unnecessary legal challenges but the Chief Operating Officer of one of this country’s largest dealership groups wrote a pile of nonsense in response to a poorly written piece in the Times. He, first of all, criticised the paper for the warning about potential problems with the claims industry. Defending the indefensible!

He then rants on about the difference between PCP and Personal Contract Hire (PCH) making a big issue about PCP not being a lease. This is fundamental. It is a form of HP agreement and HP agreements are leases – idiot. Any finance other than a loan is a form of lease. If someone else owns the goods whilst you have the use of them – it’s a lease! That’s basic accounting something one would expect someone in his position to know.

With HP or a PCP you only own the goods when you have paid all the money owed plus an option to purchase fee. If you want to read my views of the industry and reveal masses of PCP secrets go to Grahamhilltraining.com and register to download my PCP report. I’m explaining just about everything once and for all. Next on my target list is PCH. By Graham Hill

What Car has carried out a survey into car faults, a subject on which I have incredibly strong views. They start their report by reminding us of the attitude expressed by our parents (or could have been just my dad) that the more you add to cars the more likely something will go wrong.

Logically that has to be true, the question is – what is an acceptable level of faults and more important is when things go wrong how well do those responsible fix the problem? And that’s my issue, far too often drivers experience faults that dealers and manufacturers fight tooth and nail not to fix whilst totally ignoring driver rights and flouting their legal obligations. And with so few people knowing their legal rights dealers get away with murder.

However, I cover this in detail in my PCP report so I’ll get back to the findings of What Car. They found that 12% of faulty cars were off the road for more than a week with the most common problem being engine related which affected 28% of the faulty cars. When checking the classes of cars they found that 35% of luxury SUV’s and 31% of luxury cars suffered from faults.

At the other end of the scale 21% of city cars and 18% of electric cars suffered with faults. Interestingly cars fitted with diesel engines suffered from more faults than their petrol equivalents. 39% of diesel luxury SUV’s suffered faults whilst only 23% of their petrol equivalents had faults. 33% of diesel family saloons had faults whilst just 24% of their petrol equivalents had faults.

Worst for faults was diesel MPV’s followed closely by luxury diesel SUV’s. Petrol engine MPV’s weren’t much better than the diesels. Whilst petrol luxury SUV’s have problems with fuel consumption they fare better than diesel cars so the advice is to take a petrol rather than a diesel.

The top 5 brands for faults, i.e. the least reported faults were Lexus (10.7%), Suzuki (16.2%), Dacia (18.6%), Toyota (18.9%) and Honda (20.6%). At the other end, the worst cars were Land Rover (44.1%), Jeep (41.2%), Citroen (39.9%), Smart (39.5%) and Nissan (38.4%).

Not in my opinion a happy state of affairs – far too many faults for my liking. By Graham Hill

Most new diesel cars manufactured over the last couple of years have had a special liquid incorporated into the car in order to reduce the NOx gasses and conform to Euro 6 emissions. Euro 6 reduced NOx emissions by 67% from the previous standard, Euro 5.

Here’s the technical stuff in case you’re interested: Some manufacturers have found that the best way for them to meet the emissions levels is by Selective Catalytic Reduction (SCR). This system uses an exhaust fluid such as AdBlue. It breaks down the NOx gasses in the exhaust gasses into harmless elements before it’s expelled from the car.

Someone told me when the systems was launched that AdBlue was made up of urine! I thought it was a joke but it turned out to be true. It is made of Urea and de-ionised water. It is stored in a separate tank with small amounts being squirted into the exhaust gas when the engine is running turning the NOX into Nitrogen and Water.

Not all diesel cars are fitted with the AdBlue system so you will need to check the handbook and the dealer to see if it has the Adblue system. Some cars have ‘Blue’ in their name or SCR to indicate the addition of Adblue.

Tank sizes and usage varies. Most manufacturers have attempted to incorporate a tank that holds enough fluid to last between services so on low mileage you probably didn’t even know your car had it fitted. There is a warning light that warns you that the Adblue is running low. If the light comes on you should top up the fluid as soon as possible although you should still have about 3 litres or 1,200 miles still left.

It would be wise to find out where the filler is located. Some are by the diesel filler, some are in the boot or in the spare wheel well. Some fuel stations have AdBlue as part of their pump or you can buy it in containers either in the filling station or in an accessory shop or even online. In a container, it should cost about £1.50 per litre or at the pump about 60p per litre.

Adblue is non-toxic but is corrosive so can cause skin irritation and affect your lungs and eyes. Always wash your hands after handling and wear gloves provided in fuel stations. Whilst most cars let you continue to drive the car when the AdBlue tank is empty, when you stop the car it won’t restart until the tank has been topped up.

The AA reported 20,000 call outs last year to AdBlue related incidents. The recommendation is to top up the AdBlue whilst the engine is running if you run out. If you put AdBlue in the diesel tank or diesel in the AdBlue tank don’t start the engine and call out your breakdown service or misfuelling service provider immediately or risk expensive damage.

I hope that helps. By Graham Hill

Over the last few years we’ve seen changes in the law that have prevented children from sitting unstrapped in the back of cars, with very specific rules relating to baby seats and booster seats. Children over 12 years old or 135cm tall must use a seat belt.

There are weight and height restrictions that relate to different types of baby seats and booster seats, etc etc. The fact is that it is impossible to police. It’s illegal to smoke in a car with a child under 18 as a passenger and eating a sandwich, bar of chocolate or swigging a drink whilst driving can land you a fine of £100 if considered to be ‘dangerous driving’ by a policeman.

Again, unless part of an investigation following an accident, it is very unlikely you will ever be prosecuted so it makes you wonder about the effectiveness of setting down laws unless we have enough police to enforce them. Maybe by setting down the laws, there is an assumption that the rules will prick the conscience of drivers and stop them from breaking them. I would suggest that those with a conscience wouldn’t break the law in the first place.

I therefore question the benefit of setting down new laws to attempt to cut down on the number of young people if the laws are simply unenforceable due to the lack of policemen patrolling the roads. Theresa May has asked The Department for Transport to consider graduated driving licences. Changes could include a minimum supervised learning period and a restriction on the number of passengers.

Figures show that one in four young drivers are involved in  an accident within 2 years of passing their driving tests. Road safety charity Brake has called for a minimum of 10 hours of professional tuition before taking driving tests with restrictions in place for the following 2 years.

A similar system introduced in New Zealand dropped car crash injuries by 23% in 16 – 19-year-olds. What they don’t mention is the number of police patrolling the roads that might act as a deterrent amongst young drivers. I’m all for prevention but surely this sort of awareness should be taught at school along with other life skills. Introducing new laws with no police to enforce them is pointless. By Graham Hill

The technical expression is semi-autonomous when a car is fitted with safety equipment which allows drivers to do other things whilst driving. Many experts are starting to throw doubt on the accuracy of figures that suggest that accident rates will fall along with road deaths as a result of safety equipment being fitted.

There is no hard proof behind the statistics which are estimates that take account of lane markings, speed restrictions, proximity of other traffic etc. However, if drivers become more reliant on the safety systems and concentrate less, this increases the possibility of having an accident again. So they are now assessing the true benefits of these safety systems.

In the meantime, the European Commission last month announced that it wants 11 advanced safety features fitted as standard features on all new cars and vans launched from 2020 and all new cars and vans sold 2 years later. I mentioned in a recent report that it can take several seconds for the driver to take back control from autonomous systems that could result in an accident.

I would suggest that much more research is required before making some of the safety systems obligatory. By Graham Hill

Since the tightening up of personal data stored about us on various sites the question has been asked about car telematics, the data that is collected and stored about us when driving our car, especially our company car. Clearly companies do it to make sure that their cars and commercials are being driven efficiently and not abused.

They can also check driving style to see if you are driving the vehicle in an economical way. Are you taking the best route in order to minimise fuel consumption and time? All of these things can generally be justified and included in your terms and conditions of employment.

But what about when you are using the vehicle for your own personal use? Some would argue that as the car is owned or leased by your employer he has a right to know where his vehicles are, where they travel to etc. However, most people believe that this is a breach of data protection.

It has nothing to do with the employer what you do and where you go in the company car when it is being used for pleasure as part of your contract of employment. If you are an employer and agree with this then you should consider Geotab as your next Telematics provider.

They have developed a new system that has incorporated a privacy mode for personal use. So when an employee is using his company car personally he can switch off the tracking. It is controlled via the MyGeotab App that comes with the tracking system.

There are mixed views from employers but it is certain that drivers would prefer to be able to control their privacy. What may not be appreciated is that many new cars have Telematics systems built into them to assist manufacturers to improve their car design and features. We currently have no say over the use of data collected by manufacturers. That will have to change. By Graham Hill

What a surprise, the crooked fuel suppliers, having seen that people are massively switching from diesel to petrol, have seen fit to increase the pump cost to its highest for 18 years. OK, you can’t help it if oil prices increase and the reasons given for the highest increase, according to the RAC, since their records began in 2000, is that crude has increased as a result of the weakening pound and the drop in production from Iran.

That might seem quite reasonable. However, I heard that the fuel providers have increased the cost at the pumps because they were hedging against the cost of oil going up further in the future as a result of  Trump ditching the Iran Nuclear Deal. So we’re paying for an increase that may or may not happen!

Immediately following the trashing of the Nuclear Deal crude rose as Iran decreased production but, according to experts, the pump prices have increased by more than that dictated by the increased crude price. You can draw your own conclusions, especially as Saudi Arabia has agreed to fill any production gaps left by Iran.

So supply should remain the same. In May the average cost of petrol increased from 123.43p to 129.41p. Diesel increased by more but that was still less than the highest increase that occurred in 2008. Simon Williams of the RAC said that crude oil has flattened off and that there is an OPEC meeting on the 22^nd June when they are expected to step up production so we could see a small drop in the cost of petrol and diesel. By Graham Hill

Martin Chalker from Keston in Kent bought a Mercedes E Class Cabriolet on a 15 plate from a main dealer. He noticed sap like bubbles on the paintwork that seemed to be spreading.

After taking the car in for an inspection when it became clear that the marks weren’t as he thought, tree sap, it was agreed that the problem was with the lacquer.

It was proposed that the car should be re-sprayed under the warranty but that Martin would have to pay for the sills and bumpers to be re-sprayed. I’ve never heard of anything so daft!

As it was close to Christmas the dealer agreed to take the car in for the work to be done during January with the re-spray expected to take 6-8 weeks.

So Martin was not only facing a long delay he was also looking at a bill for £1,589 to repaint the sills and bumpers. Why? Whilst he was provided with a courtesy car, after 2 months he still didn’t have his car back.

He wrote to AutoExpress who contacted Mercedes, following which the dealer started work on the car the following day and 2 weeks later the car was returned with a full respray.

They didn’t charge for the sills and bumpers and in addition they made a payment to cover the finance cost of his car whilst he was suffering the faults and driving a courtesy car. In total, £4,657. Whilst Martin was delighted why did he need to get AutoExpress involved?

In the first place the car wasn’t his so he should have immediately got the finance company involved. The attempt to get him to pay for the sills and bumpers to be repainted was a disgrace, no doubt relying on the ‘betterment’ rule but that flies in the face of EU Consumer law or simply just trying it on.

Good on AutoExpress but so frustrating!! If the customer wasn’t entitled to everything he claimed for you can guarantee that Mercedes would not have rolled over and paid up. By Graham Hill

A shocking survey has been released showing that all new diesel engine cars fail to meet EU standards in independent real-world emissions tests. The survey carried out by the International Council Of Clean Transport (ICCT) found that 4 manufacturer groups had average emissions more than 12 times above the Euro 6 diesel type-approval limit, with the highest emitting vehicle family having emissions 18 times the limit!!!!

Petrol cars performed better with all Euro 6 petrol models receiving a ‘good’ or ‘moderate’ rating. In fact, the highest emitting petrol Euro 6 vehicle family had approximately the same level of NOx emissions as the lowest-emitting diesel vehicle family.

And this wasn’t a test on a few hundred vehicles the tests were carried out on 700,000 cars and 4,850 vehicle models, nearly all designed and built to Euro standards 3-6, across Europe.

The project named CONOX and funded by the Swiss Federal Office for The Environment, had an initial dataset comprising of samples collected in France, Spain, Sweden, Switzerland and the UK.

In London, for example, researchers used remote sensing technology to measure the emissions from more than 100,000 vehicles during a 5-month sampling campaign that stretched from November 2017 through to March 2018.

Measurements were carried out over a period of 45 days at 9 locations in the Greater London area. All results have been put into a searchable database by the Real Urban Emissions Initiative (TRUE – no I couldn’t work that out either) which aims at bringing transparency to the public debate and awareness of vehicle emissions and urban air quality.

The way that the readings were obtained involved using technology developed by ICCT which required a beam of light to be passed through the exhaust emissions from a sampling location on the road. Automatic number plate recognition technology was used to determine which model of car was being tested.

They also felt that this method of monitoring real-world emission made it almost impossible to cheat or falsify the figures. Their results were graded Good (Green), Moderate (Yellow) and Poor (Red). They also grouped them under Euro 3, 4, 5 and 6 and even Euro 6 results only showed a few diesel cars that had climbed out of Poor to Moderate.

No Euro 6 standard diesel engines received a green rating but the yellow ratings were achieved by only 1 top-selling brand and that was BMW. Euro 5 performed particularly poorly and it was one of the car families in this group whose NOx emissions were 18 times over the limit.

You can read more about these frightening results by visiting the TRUE website. By Graham Hill