The Best Car Finance Blog In The World

We all know that crooked private car park and land owners got their come upance when the Protection of Freedom Act 2012 was introduced that banned the clamping of cars on private land.

If you work in the finance industry you have probably been involved in debates and discussion over the last 12 months regarding some of the biggest changes to the consumer credit industry since the introduction of Hire Purchase in the 60’s. If you are a lender, broker, dealer or consumer (this includes small businesses that are small partnerships or sole traders) life will never be the same again.

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 Government passed over administration of the Consumer Credit Act from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA) in April 2014. Since then confusion has reigned. I’m not going to talk about the affect on the lenders and the brokers but you need to understand the potential detrimental affect on you as a customer.

In the past when a dealer, broker, shop or anyone else had to provide advice on finance they had to hold a Consumer Credit Licence. It was a totally meaningless piece of paper, we all knew that, as long as you didn’t have a criminal record or were an undischarged bankrupt you could apply for and be granted a licence. It was simple but actually meaningless.

So when the FCA took over and changed the system from a single licence with a number of categories such as credit broking, debt collection, debt advice etc. we now have a three tier system, named Full Permission, Limited Permission and Appointed Representative. It was all beginning to look good, at last there was a body to police the consumer credit industry that might get rid of a large number of crooks and ensure that new entrants and even those already providing advice were properly qualified.

However, the opposite seems to be happening. In order to apply for permission brokers and dealers will need to spend a lot of money, not only in application costs but ongoing administration and reporting costs. This will result in some smaller used car dealers withdrawing their finance offering because the new regulations are far too complicated for them to understand.

It will also cause some brokers to withdraw for similar reasons so you as a customer will have less choice. It also means that the cost of being regulated will increase sharply so those costs will be reflected in the finance charges. On the other hand brokers who offer commercial finance to limited companies, i.e. non consumers are also being encouraged to apply for Full Permission.

I find this approach by trade bodies and lenders obnoxious. These companies with little or no experience of consumer finance will be able to provide customers any consumer product they wish from personal loans to HP and buy to let mortgages. It’s a disgrace, these brokers should never be given Full Permission but if recent history is anything to go by every applicant will be granted Full Permission with very few rejections.

Sounds like Consumer Credit Licences all over again. If you are currently considering various car finance options make sure that you are talking to someone who is properly qualified. By Graham Hill

Drivers have been complaining for years that the MPG figures provided by car manufacturers are inaccurate and don’t reflect every day driving. Correct, the figures are calculated by applying very strict conditions within a controlled environment to best reflect the conditions, known as Urban, Extra Urban and Combined.

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 fact is that every car is subjected to exactly the same tests so if nothing else the resultant figures provide a fairly accurate way of comparing the results of different models. It can’t be done any other way. If you were to drive the same Ford Fiesta round the same route in the middle of Bath on three separate days I guarantee you will achieve three different results.

Add to that changing weather conditions along with different driving styles and the results become meaningless and can vary massively. So let’s stop whinging on about the manufacturers’ fuel consumption figures and simply use them as a guide as to which cars use more fuel than others. In America the situation is different.

There have been a string of high profile cases involving Kia, Hyundai and Ford after they all admitted leading customers astray over fuel consumption figures. The cases resulted in hefty fines and compensation being paid to car buyers.

But before you start opening Word in order to start your claims process the Society of Motor Manufacturers and Traders (SMMT) say it is unlikely that any similar claim in the UK would succeed as the EU testing regime does not claim to represent real world driving conditions. Sorry ladies and gentlemen but simply drop the suggested MPG by 15 to 20, that should give you a more accurate figure. By Graham Hill

I’m in the process of setting up a new marketing business that will give those who sign into my new scheme access to a wide range of discounts and bonuses from cheap MOT, servicing and repairs to cheap subscriptions to motor magazines, special offers on tyres, discounts or added free benefits to roadside breakdowns and much more.

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.

One of the latest developments is the addition of cheap legal advice from legal specialists. The need for such a service was highlighted when I read about the buyer of a new Audi A1which developed a fault after just 2 days.

The car was taken back by the supplying dealer for him to repair but after 2 weeks the fault had only just been identified as a fault with the ABS control unit. Unfortunately the dealer couldn’t find a fix so the driver, quite rightly demanded a replacement car. After a lot of buggering about without a solution the driver involved Auto Express who contacted Audi who agreed that the driver should have the car replaced.

By this stage I would have been on Audi’s rooftop with their MD dangling by his boot laces pleading to supply a new car even if he had to go to Germany to collect it himself. It is your legal right as well as claim compensation. In the end and no doubt as a gesture of bloody goodwill the driver not only had the car replaced but had the spec. upgraded to an S-Line.

We need a legal helpline for drivers to access in order to get rid of all the ignorance that exists about buyers legal rights. Watch this space, lots of exciting things happening this year. By Graham Hill

As most of my customers are aware you can now have your car serviced at any service or repair centre without the loss of the car’s warranty provided the work is in line with the conditions stipulated by the manufacturer.

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.

Since this European rule, known as Block Exemption, was introduced in 2003 it has meant that anyone who buys a new car carrying a manufacturer’s warranty can have their car serviced and maintained at a non-franchised dealer, thereby saving a substantial amount of money.

However, when you lease a car and you are responsible for the servicing of the vehicle, can the leasing company insist that you only have the car serviced at a main dealer as this would be a contradiction of the regulations? Again, regular readers will know that most leasing companies are happy for you to have the car serviced at non franchised dealers provided the work is carried out in line with the manufacturer’s instructions using original or compatible parts.

But you need to check your contract as these things have a habit of changing without notice. Mercedes-Benz changed their rules a few years ago so that if you return a lease car (including PCP) and the service work has been carried out by a non authorised service/repair centre they will impose an end of lease charge, in some cases, over £1,000, even though the car has been serviced on time and even using Mercedes original parts.

I took some legal advice on this and was advised that whilst the car is owned by the finance company they can include terms relating to the service and maintenance of the car. So whilst they may be out of line with the rest of the leasing industry they are not acting, on the face of it, illegally, albeit that they are acting outside the spirit of the law.

But there are two issues on which they could justify their stance. The first is the quality of the work which Mercedes could argue would be of a lower standard if carried out by a service centre. I would argue this every day of the week having received some of the worst services ever when I have had a Mercedes serviced by a main dealer in the past.

On the other side of the coin a judge might argue that a customer should be free, in an open market, and given the Block Exemption law, to choose where the car is serviced – it is the whole point of the law to make it competitive and stop the protectionist approach that most manufacturers had used when insisting that their cars are serviced at a main dealer or lose your warranty before it changed in 2003.

The other argument could relate to resale value of the car when it is returned which they could argue would be less than if the car had not been serviced by a main dealer. However, they list a scale of charges which could suggest a penalty, which in these circumstances could be considered illegal.

If, through breach of contract, you were to cause the other party a loss they can not charge anything above their losses incurred. Having spoken to many trade buyers over the years most would not draw a distinction between a car that has ‘Full Service History’ and ‘Full Mercedes Benz Service History’ so it might be difficult to prove their case against a customer in front of a judge.

If you have been charged a ‘penalty’ by MB Finance and you are unhappy about it you could take out a complaint through the Financial Ombudsman Service if you are a ‘consumer’. Putting MB Finance to one side the point of all this is that Halfords are about to launch an aggressive new campaign to take away a larger share of the £10 billion a year after care market from main dealers.

This comes on the back of the Auto Express Driver Power Survey in which a large number of dealer networks were criticised by drivers. Traditionally the Halfords target market has been 3 – 5 year old cars but the new approach will attract new to 3 year old car drivers looking to save up to 40% of the labour cost. They will be introducing new receptions that will look more like the pods you will see in an Apple store and they will offer a collect and return service.

The receptions will also have Wi-Fi facilities and you will even be able to watch your car being serviced on an iPad that they will provide for your use. So it may be worth considering Halfords for your next service but don’t forget to check your lease agreement first and don’t forget you can always negotiate with the main dealer before booking your car in for a service. By Graham Hill

After finally giving ‘drugalysers’ Home Office approval the police will begin roadside drug tests this year across England and Wales in order to crack down on drug driving.

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.

In future drivers won’t know whether they are to be given a drug test, be breathalysed or subjected to both when stopped by the police. The ‘drugalysers’ will analyse a saliva sample immediately for cannabis and cocaine. The downside is that the equipment cannot detect legal highs at the moment but future versions are expected to be able to detect a wide range of drugs, both legal and illegal.

At the moment if a police officer suspects that a driver is driving whilst under the influence of drugs they must arrest them, take them to the station in order to undergo time-consuming blood tests that must be carried out under medical supervision. Once in the police station the driver can argue that they are unable to give blood for medical reasons or religious beliefs.

All the time the drugs are leaving their system. The new equipment eliminates all this and provides an immediate reading. The kits will support the new drug offence coming into force in March but they are about to be used immediately by various police forces across the UK.

Policing Minister Mike Pennings said that most motorists have the same view about drug driving as they do about drink driving. He stated, ‘The Government is determined to drive the menace from our roads. Those who take the wheel while under the influence of drugs put their own lives at risk plus those of innocent motorists and their passengers.’ By Graham Hill

If you thank that is dopey, how about the 2,410 drivers who managed to lock a child in their cars resulting in a call out for the AA in 2014. A further 1,014 AA customers managed to lock their pets in their cars with a staggering 40,072 forgetting whether their vehicles ran on petrol or diesel and filled their cars with the wrong fuel. Jeepers!

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.

Oh and the 1,014 pets weren’t all dogs, they ranged from guinea pigs to snakes. Who would be an AA patrolman? According to the AA it’s not as simple as opening the door to allow the driver to get to their precious pet, they often escape cages and boxes and manage to squeeze into the back of the dashboard requiring the patrolman to dismantle it in order to rescue a pet that was in fact quite comfy where it was.

Who’d have thought you would need a tetanus jab in order to work for the AA? There were an amazing 3 million callouts in 2014. Top of the callout list was batteries at 427,586 followed by tyres at 373,746, lights 131,527, alternator at 106,587 and clutch failure at 103,229. Mondays are the busiest days for the AA with an extra 1,000 callouts over the daily average of 9,337.

Monday 24^th November was the busiest day last year with 14,501 callouts. Bloody interesting eh! The longest recovery was 615 miles from south London to Ross-shire. Amazing! By Graham Hill

Having a blog means that I get to hear some very dopey stories. The latest was a car that was delivered by transporter to a customer. As excited as he was about driving his new car something wasn’t right.

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.

He couldn’t put his finger on it but each time he walked towards the car a bell was ringing in his head but what was it? He walked all around the car trying to find a dent or something obviously wrong but could find nothing. After two days of driving the car he realised what it was, there was something wrong with the registration number.

He checked his agreement and realised that the car had been issued with a different number to his agreement. As it turned out there were two identical cars on the transporter, delivered on the same day to two different customers. Whether the dealer had issued the paperwork incorrectly or the delivery driver dropped the cars off to the wrong owners I couldn’t get to the bottom of, but as both cars were insured by the drivers on the other’s registration neither were insured to drive the car they were driving.

The fact is that they may never have known until the cars were returned or sold – how crazy is that? The other driver didn’t have a clue but apparently went loopy when he was told! And I don’t blame him!

The two drivers had their cars swapped and received a free first service. So when you have your car delivered check that the registration number agrees with your documents. By Graham Hill

Philips have issued a warning about counterfeit Xenon bulbs being sold as Philips originals but are actually ripoffs sold in what looks like Philips original packaging.

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 dangerous, poor quality counterfeits that could end up blinding oncoming vehicles, provide poor road illumination and do not have precision mounts that can lead to the electrics burning out. The lamps are not homologated which means they wouldn’t pass a vehicle inspection.

They could even damage the car’s onboard computer system which could cost a fortune to repair or replace. Philips have warned sellers, both online and offline such as spares shops and garages that they will be subject to litigation if caught but have asked for the help of buyers. If you buy a Philips bulb you can check online to see if it is original and report it if it’s a fake.

If you want to check online go to www.philips.com/original If you fit a fake bulb that could be considered responsible for causing an accident you could find yourself in court, as could the supplier. Don’t take the risk. By Graham Hill

If you are a regular reader of my blogs/newsletters you will know that I am passionate about bringing into schools a new subject we could call – Life Skills. This should include basic things like cooking (partially covered already in schools), ironing, housekeeping and budgeting.

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.

Driving and early education about the dangers of driving should be included and even take the theory test in school. Finance should be included, how a loan works and how to take out a loan/mortgage/credit card and what you should do if you find yourself in difficulty. Another critical life skill is first aid. This should be taught at school and could save lives.

The Institute of Advanced Motorists and Driver First Assist (DFA) surveyed groups of motorists, 50% of whom said they would stop at an accident to assist if they arrived before the emergency services turned up but one in five wouldn’t administer first aid for fear of doing something wrong.

This is very bad. The DFA said training in reporting a crash correctly and life-saving first aid could cut deaths by 46%. That is staggering. It’s about time these life skills were introduced into the National Curriculum. By Graham Hill