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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Your Rights When Paying A Car Deposit By Graham Hill

Friday, 4. March 2016

When people hear about me and leasing a little late in the day. It is often the case that someone goes into a dealer, test drives a new or used car, negotiates a deal and pays a deposit, often much more than he or she needs to.put down.
They then find out, after contacting me, that there is an amazing deal on a new car that makes the cost cheaper than the used car or by choosing a different finance method can save a lot of money on the same new car supplied through me. As a result he wants to cancel his order with the dealer. Now legally this is a breach of contract but the good news is that the dealer can only legally recover his costs which must be ‘reasonable’.
So if you have paid £1,000 deposit and you cancel the order he has no right to keep the £1,000. He may be entitled to a few pounds admin costs and maybe a few pounds to re-advertise the car but that’s it, he must refund the balance. If he carries out a service and MOT at your request he may also recover those costs but even that is debatable because both add value to the car when he re-advertises.
My advice is pay as little as possible, say £100, and pay by credit card, it increases your legal rights phenomenally, even more so if you end up buying the car, especially if you pay the balance in cash. And if a dealer tries to keep your deposit get straight on the phone to your local trading standards office. 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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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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Driver In A Quandry Over Diesel Particulate Filter

Wednesday, 27. January 2016

Here’s an interesting story which presents a problem for which I don’t have an obvious solution. Justin Byrd has a diesel Nissan X-Trail. Whilst driving it a while ago a light illuminated on his dashboard indicating that he had a problem with his diesel particulate filter (DPF).
Now if you don’t know how a DPF works, it is part of the exhaust system and filters out particulates (soot) from the engine’s diesel emissions. In order for the filter to function properly you should run the engine at over 50mph for at least 15 minutes every month. This doesn’t ‘blast’ out the particulates, that would be pointless as you would just be dispersing into the atmosphere the soot that you filtered out in the first place.
Actually, by sustained running of the car at over 50mph the filter heats up causing a chemical reaction within the filter which effectively turns the soot into a non-toxic gas leaving the atmosphere relatively clean. Unfortunately if you don’t run up the engine, as explained, the filter will clog and will eventually need replacing as Justin Byrd found out to his horror.
After taking the car to his local Nissan dealer he was told that he shouldn’t drive the car as he would only cause further damage. After attempting to force regenerate the DPF the garage told Mr Byrd that he had no choice but to replace the DPF at a cost of £1,240. He decided to get a second opinion from another local but non-franchised garage.
They said he needed to run the car in 4th gear on the motorway and the blockage would disappear. He took the car for a spin then booked it into the garage who also took the car for a sustained drive following which the blockage disappeared and the warning light extinguished. As far as the garage was concerned the dealership had been conning John but the dealer, along with Nissan, suggested that the test equipment showed clearly that the particulate filter was no longer functioning and needed replacing. So here’s the thing, supposing the car was still under warranty.
By not replacing the particulate filter as recommended by the dealer would he now have breached the warranty terms? I know I bang on about the Sale of Goods Act (now the Consumer Rights Act) giving you more power than the manufacturer’s warranty but would he now be exposed if the engine failed.
I would suggest that if that were to happen he would have a claim against the garage that suggested he simply needed to give the car some welly! But it certainly raises an interesting point, where do you stand if the dealer, the manufacturer and their test equipment says one thing but another qualified engineer says something different. Think I need a lie down to ponder that one! By Graham Hill

 

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Big Fines If Companies Don’t Conform To Consumer Rights Regulations

Wednesday, 27. January 2016

Now here’s a bit of information you should be aware of if you provide goods or services to consumers. Some rather swish rules came into force in 2013 called (deep breath) The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.
In the regulations, which have now been incorporated into the Consumer Rights Act 2015, they state that you must make a copy of your complaints procedure available to customers or you could be fined up to £5,000 and/or face prosecution.
If you weren’t aware of this you probably aren’t aware of your other responsibilities under these regulations so I would suggest that you check them out. Would a customer be able to return goods or not pay for services received because you didn’t conform to the act? Maybe, maybe not but I would certainly not want to be the one to put it to the test. By Graham Hill

 

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Do We Need A New Scrappage Scheme?

Friday, 11. December 2015

We seem to be having a week of environmental issues! MP’s have prepared a new clean air report for consideration by the Government. In it they recommend that a new scrappage scheme be introduced for diesels and vehicle excise duty (car tax) should be based on nitrogen oxides as well as CO2 and not just CO2 as it is at the moment.

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The report was presented to the Chancellor before his Autumn Statement by the Environmental Audit Committee in a hope that he would take note and encourage people out of ‘polluting diesels’. The chairman of the committee, Huw Irranca-Davies, urged the Chancellor to strike a better balance, he went on to say ‘A National scrappage scheme could provide a shortcut to cleaning up the air in our cities.’

Whilst the Chancellor only retained the 3% benefit in kind loading on diesels in the Autumn Statement that’s not to say that more won’t be done in next year’s budget. My own view is that whilst we should focus on the environment we should stop all this knee jerk reaction, the like of which we’ve seen following the VW debacle.

They did it with pay day lenders which has ended up taking out competition and increasing the use of illegal money lenders and by extending the rules into the whole of the consumer finance industry, to an unnecessary degree, they could end up pushing us back into recession.

Things may look good for the Chancellor at the moment but will it still look quite so rosy in a year’s time when ‘affordability tests’ become the focus of attention by the PPI lawyers? By Graham Hill

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Did VW/Audi Have The Solution To A Cleaner Environment All Along?

Friday, 11. December 2015

Following on from my previous blog post in which I was musing over the next steps to a cleaner environment. Maybe VW/Audi had the answer all along!

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Rather than fiddle the emission figures they have been working in the back room on a revival of the hydrogen fuel cell, something of which I’m a great supporter. According to their press releases the car will be more dynamic and more efficient than anything else in production.

The only thing they haven’t revealed is the bodystyle they will use to launch the new technology. Audi have produced hydrogen powered concept cars in the past as A2 and Q5 models and they have recently been showing off the A7 h-tron prototype which can power to 62mph in 7.9 seconds with a range of 300 miles.

Dr Rene Van Doom, powertrain engineer for fuel cell technology, confirmed that Audi has four major priorities for the immediate future, one of which is alternative drivetrains. He added that Audi were set to go into volume production with fuel cells as soon as the market and infrastructure justifies the move.

Their 10 year plan includes providing an electric alternative for every model in its range. With mild hybrid (whatever that is), plug in or hydrogen cell system. In 2016 a new 48 volt hybrid will be launched with an electric compressor to eliminate the annoying turbo lag and boosting efficiency by shutting down the engine when coasting.

If that wasn’t enough to put them ahead of the game again they are now working on electronic dampers that not only reduce body roll but they use the movement to regenerate kinetic energy to charge your mobile phone and air-con in the way that kinetic energy generated in hybrid cars recharges batteries. They claim that they can recuperate 150 watts meaning a CO2 saving of 3g/km. Amazing!

They also mentioned that they still understand the importance of internal combustion engines and will not neglect development of this technology. Good to hear! By Graham Hill

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The Next Frightening Step To Meeting Emission Targets?

Friday, 11. December 2015

2 years ago I reported on some comments made by an environmental and technical expert who said that European targets for emissions were not only becoming difficult to meet but impossible to meet.

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He explained that an internal combustion engine burns fossil fuel which has the negative effect of emitting undesirable gasses and particles that pollute the air. That is a fact that can’t be changed. The objectives to continually reduce the gasses is fine and very environmentally friendly but technology and additives can only go so far before the targets are impossible to meet.

We all know that the harder we drive our cars the higher the amount of fuel we use. We may get from A to B quicker but we use much more fuel in doing so and it goes without saying the more fuel we use the more gas we emit from the exhaust. So as we reach the limit of gas reduction is the next step a control on the way we drive.

The only measure used at the moment is CO2 but will NOx enter the equation following the VW debacle? And by halving the NOx emissions target (Euro VI diesel engines) have we created an impossible task for the manufacturers? As we know fuel consumption figures are shown using different driving conditions, urban, extra urban and combined.

They may not exactly reflect actual driving conditions but we have three, often very different figures so why do we have just one CO2 emission figure as well as other singular gas emission figures when clearly they must differ from 10mph to 100mph? It was clear, even 2 years ago when I expressed my opinion on this subject that some creativity would have to enter the equation if targets were to be met.

However, I didn’t expect that creativity to extend to out and out deception. And whilst there wasn’t a murmur when the new Euro VI emissions came into effect on the first of September, following the VW debacle many manufacturers have announced that they are struggling to meet the Euro VI targets – strange that isn’t it? So what next? Will we see driving style and speed controls?

Limits on motorways dropped to 60mph and a drop from 30 to 20 around town? Or maybe cameras that can measure acceleration away from lights to stop drivers from pretending to be Lewis Hamilton? All very worrying for us petrol heads! By Graham Hill

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Fuel Prices Set To Drop To A 6 Year Low

Friday, 11. December 2015

Great news for motorists over Christmas as the oil price riggers, OPEC, fail to agree on output and therefore a price for a barrel of oil so it’s turned out to be a bit of a free for all with the cost of a barrel now dropping below $40.

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This should mean a drop of 5 pence per litre at the pumps for diesel and a drop to less than a £1 per litre for petrol. The average price for diesel is already at a 6 year low at an average of 109.18 pence per litre at the pumps. First to move is expected to be the supermarkets.

Experts suggest that we could be as close as a week away from the price drops whilst others will be reasonably quick to follow. So whilst the producers continue to refuse to cut production we will see a continued drop in prices as the world becomes awash with fuel. To put this into perspective in mid 2014 oil rose to $115 per barrel.

Compared to this time last year the RAC has calculated that we will save on an average fill up £9 on a tank of petrol and £11 on a tank of diesel. Not to be sniffed at. Keep an eye on prices as the Government has asked the sellers to pass on the savings but of course some will refuse so we should avoid using them.

Whilst some commentators have suggested that the rate drops won’t be long lived others have predicted a period of steady price drops till it flattens out around the time that OPEC are due to meet next in June 2016. With production outpacing demand it’s good news for motorists, so fill your boots! As well as your tanks! By Graham Hill

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