The Best Car Finance Blog In The World

A must read report whether you are an employer or you drive your own car on company business, even if it is only to drop off the post at a local post box or post office!

According to this report in Fleet News one in six at-work drivers says they have been involved in an accident when taking a call from a colleague, new research suggests.

The study, commissioned by Driving for Better Business (DfBB), also revealed a worrying lack of checks for employees driving their own car for work, the so-called grey fleet.

It showed that half of business leaders polled (49%) expect their employees to answer their phone at any time, including while driving for work.

Almost half of employees (45%) said they experience stress when they receive a call from their boss while driving for work. One in six employees who drive for work (17%) said they have been involved in an incident when driving for work due to a phone call from a colleague.

Despite it being illegal, one in 20 executive directors and one in eight employees thought the hard shoulder was a safe place to take a phone call.

Meanwhile, six in 10 (61%) employees admitted they do not always, or only sometimes, find a safe place to make or receive a work call when driving for work with just over one in eight (13%) thinking it safe to take a phone call while parked on the hard shoulder of a motorway.

The findings also showed that despite three quarters (75%) of executive directors claiming to ensure employees are aware of their legal obligations in relation to driving for work, nearly half (45%) of employees surveyed who drive their personal car for work said they have not been given a copy of their employer’s driving for work policy.

It found that managers were not performing checks on grey fleet drivers and 60% of respondents said they were unsure if any or how many employees use their own car to drive for work purposes.

Furthermore, nearly a half of employees who use their personal car for work purposes (45%) said they have not been given a copy of their employer’s driving for work policy.

The survey reveals that 90% of drivers used their personal cars for work journeys, 75% doing so at least once a week, yet a third of these drivers (33%) were not insured to do so – saying they do not have cover for business use on their vehicle insurance. Only a third (34%) said their employer had checked their driving licence.

The survey also found a poor approach to vehicle checks and maintenance by employees. Nearly three quarters of employees who drive for work (74%) said when they check their tyres they simply take a quick glance to see that tyres look ‘OK’.

Simon Turner, campaign manager for Driving for Better Business said: “The report shows a disparity between what employers and employees are saying when driving for work.”

He says senior managers are failing to communicate and implement a robust driving for work policy to keep those who drive for work safe, particularly for the grey fleet.

“Leaders are failing to carry out basic due diligence checks such as ensuring that all employees have a driving licence or vehicle insurance,” he said.

“At the same time, the study highlights employees are putting themselves at risk while driving for work, not checking that vehicles are roadworthy and exhibit reckless behaviours when using their mobile phone.”

He continued: “Leaders must implement a driving for work policy that enforces legal and ethical obligations on all employees that drive on work-related journeys.

“Regular checks need to be put in place to ensure that employees have read and understood the guidelines laid out in the driving for work policy. In doing so, the associated risk to road users and pedestrians is reduced.”

Driving for Better Business promotes a free seven-step programme of action to reduce occupational road risk. Organisations that introduce the DfBB programme have experienced significant operational, financial and employee benefits.

Turner concluded: “A good practice driving for work policy ensures that at a minimum, organisations are compliant with all relevant legislation and guidelines.

Once implemented, these policies complement more general employee safety and wellness programmes as well as introduce efficiencies that reduce costs associated with employees that drive for work purposes.”

DfBB surveyed 1,006 employees and 255 executive directors from the UK. The survey was conducted by Censuswide. By Graham Hill with thanks to Fleet News.

In a report in Auto Express, Chris Grayling calls for motorway fuel retailers to share live price data via apps and sat-navs

Motorway fuel retailers should share live pricing information to prevent drivers being taken advantage of, the transport secretary has said.

Chris Grayling has contacted a number of motorway service station operators, asking them to list how much they are charging for petrol and diesel at their motorway forecourts at any one time on smartphone apps and sat-navs.

If motorists were able to access this data in advance, rather than having to pull off the motorway and drive to the forecourt, they would be able to better plan motorway journeys and work out where to get the cheapest fuel. In addition, the Department for Transport has suggested that the data could be used by autonomous vehicles in future.

Petrol and diesel prices at motorway service stations can be around 15p per litre more expensive than at other retailers.

Grayling said that, if motorway fuel retailers decline to make their live pricing data openly available in the way he has suggested, he will launch an “urgent review” into how motorists can refuel affordably.

“Fuel prices are highest on motorways, taking advantage of drivers who have less choice when it comes to shopping around,” said Grayling. “Accessing this data on a smartphone or sat-nav means motorists can plan ahead and refuel safely at the best possible price.”

RAC fuel spokesman Simon Williams commented: “While we welcome the idea of motorway fuel retailers sharing their pricing data in terms of better transparency, the reality is any app will only tell drivers what they already know – that motorway fuel prices are unbelievably expensive.”

Williams added that RAC research has shown 44 per cent of drivers “would never buy fuel on the motorway”, advising motorists to try and find forecourts that charge at or below the average price of fuel. By Graham Hill

According to Auto Express, the DfT has started the rollout of E5 and B7 labels indicating ethanol and biofuel content of petrol and diesel. Signs will be mandatory by 1 September

The Department for Transport (DfT) is rolling out a new set of labels for petrol and diesel pumps at filling stations across the UK, with unleaded petrol to be renamed E5, and diesel labelled as B7. E10 petrol is likely to follow at a later date.

The names relate to the percentage of ethanol and biofuel present in petrol and diesel respectively, and are intended to make motorists “think more carefully about the environmental impacts of their journeys” and “educate drivers on the benefits of biofuels.” The majority of unleaded sold in the UK must contain up to five per cent ethanol under the Government’s Renewable Transport Fuels Obligation, though no such requirements are in place for super-unleaded.

The new labels are being rolled out immediately, and garages will be legally required to display them by September 2019. As well as the mandated E5 label, petrol stations will have to clearly show the biofuel content of the diesel fuel being sold, with diesel comprised of seven per cent biofuel clearly labelled as ‘B7’.

Biofuels are typically comprised of a blend of oil and plant or animal fat fuel, with the UK’s biodiesel comprised of oilseed rape, sugar beet and wheat. Figures from 2016 show 132,000 hectares of land in the UK was used to grow crops for bioenergy.

The move towards E5 and B7 labels is likely to herald the arrival of E10 petrol, which contains up to 10 per cent bioethanol and is claimed to bring about a two per cent reduction in CO2. The Government launched a consultation into E10 petrol in 2018, but motoring organisations have warned as many as 800,000 cars can’t use E10, and a second response to the consultation is due later this year.

Commenting on the new labels, Transport Minister Michael Ellis said: “Biofuels are a key way of achieving the emissions reductions the UK needs, and their use reduced CO2 emissions by 2.7 million tonnes last year alone – the equivalent of taking around 1.2 million cars off the road.” By Graham Hill

Many moons ago my dad bought a brand new Cortina and one of the options at the time was electric front windows. I asked if he was going to have the option as it looked pretty cool and his answer was – why? What problem did electric windows address? And besides which it was something else to go wrong.

Hand-cranked windows rarely went wrong and if they did a sharp bang on the inside of the door seemed to sort it out. So when you read daily of car crime increasing because of crooks being able to break into keyless car technology and nick cars and contents on an industrial scale I find myself asking the question – why? Why does the technology even exist?

What problem does keyless entry solve? I understand remote controls, one of the best things ever invented for TV’s and cars. With respect to cars, you no longer have to fumble in the dark to find a hole in which to stuff your key or breath on the door lock to defrost it enough to insert the key and gain entry on a frosty morning.

No more fumbling in the rain and with some diesels, remotely unlocking the car from a distance actually activates the pre-heaters which should be activated before starting the engine. So why this obsession with keyless entry? What is the problem it is solving over and above a remote key.

A remote key is capable of transmitting around a trillion variants of its generated code that allows the car to be locked/unlocked/boot opened etc. The only time the code can be accessed is when you push the button to transmit which is then changed the next time you lock or unlock the car making it incredibly difficult to break into the car.

On the other hand, a keyless device is transmitting constantly making it easy for crooks to harvest the code and unlock then start the car using a handheld computer device to gain entry. The fact is that it isn’t like my iPhone with either fingerprint or facial recognition you need to carry something so why not a remote key?

Personally, I don’t think my life will be in any way enhanced by having keyless entry so with a higher risk of theft and no doubt higher insurance premiums give me a remote control. My Audi is even more dopey. I have a remote control to open and lock the car and boot but when I’m in the car I have to press a button to start it with the remote control taking up space in one of my cup holders. Crazy!

In order to overcome the security issues faced by those with keyless entry I’ve scanned the solutions introduced by manufacturers and found that most either overcome the problem by using a Faraday bag that encases the signal or the remote can either be deactivated (a bit like pressing a button on a remote control) or it will deactivate itself if there is no movement. My solution is much easier, revert back to remote controls!

If you are concerned about keyless entry with your car some manufacturers have allowed for the keyless entry to be disenabled either yourself or by a main-dealer. Call their customer services or call into a dealer to find out. By Graham Hill

As if things weren’t bad enough for those looking to change their cars this year or to take out a contract hire agreement for the first time, we are now hit with the news that used car values have taken a dive.

Brexit has had an adverse effect on most industries but especially on the car industry. For over 30 years we have benefitted from ‘dumping’, not my favourite expression but used to explain the way European manufacturers use the buoyant UK market to keep their production lines moving or to dispose of excess stock. Got a problem – bung a few more cars in the direction of the UK!

But times are changing. Many manufacturers don’t see the same future in the UK so are heavily investing in Europe, educating them into the methods of acquiring cars more cheaply rather than heavily discounting cars destined for the UK. The net result is higher cost of cars with fewer available forcing up prices even further. Poor exchange rates have affected costs also which in turn has pushed up rates.

The saviours over the last 2 years has been a very buoyant used car market which has had the effect of reducing rentals as lenders factor in strong resale values at the end of each lease. But for the last two months we have seen close to a collapse of used car prices giving the leasing companies the jitters.

2016 was a mega year for new car leases with the most popular lease period being 3 years so we knew that supply would increase this year but with demand dropping it has made matters worse. Whilst things may be wildly different in 3 years, as current cars end their lease period, this drop in used car prices, largely unexpected, has put the leasing companies on the backfoot.

Industry experts have suggested the old argument that this is a re-alignment of used car prices and that used cars had been overpriced for a while but will that wash and remove the panic to re-align lease rates time will tell but for the moment I wouldn’t expect lease rates to do anything other than increase. See a bargain – nab it before it goes. By Graham Hill

So what’s he up to this time I hear you ask? Well Mr Angry of West Sussex here is getting really annoyed that we don’t hear anything concrete from this Government regarding diesel cars vs petrol cars vs hybrids vs electric cars.

He’s called for a national scrappage scheme which I don’t disagree with. The real culprits are the very old cars and vans that can be seen spewing out thick smoke and soot which is clearly not good for the atmosphere and the health of our nation.

Having said that MOT testers now have to carry out a visual check on the exhaust of all vehicles and if they are spewing out smoke they fail – simple as. Back to Mr Khan, he’s calling for a national scrappage scheme, not to put people into newer petrol cars that would be a step in the right direction (not exactly as I’ll explain) but into pure electric vehicles.

Well, first of all, you don’t have to be a financial whizz kid to realise that people that are driving old diesel cars about are either eccentric multi-millionaires that are tight with their money but can appreciate a good deal when they see it or is it because they are financially stretched and can’t afford a newer car otherwise they would be driving one?

So expecting these people to swap their old diesel for either a hugely expensive new electric car or a used electric with a range of 3 miles, on a good day, is pure idiocy! And if we could incentivise the diesel drivers to move across to electric cars what about the infrastructure. I live in a rural Sussex town but with the remnants of an old marriage taking up space in my garage that couldn’t accommodate my car anyway (even if it was empty) and with no power to the garage – charging in my garage would not be an option.

Parking in the road is manic and with lamp posts located on the inside of the pavements, we couldn’t even mount chargers on the lamp posts. The idea that we can convert everyone into EV drivers is a pipedream and not possible until battery technology catches up. A lightweight battery pack that could be easily removed from the car and charged indoors then reconnected into the car when needed could be a solution – but we aint there yet!

In the meantime, the answer would be to get new car buyers, with the ability to charge electric vehicles, to buy EV’s or plug in hybrids, the more sold would bring down the cost of used cars and make them more affordable.

But as the Government has removed the subsidy on hybrids and reduced the subsidy on EV’s it’s hardly a move in the right direction. And even companies, keen to get their company car drivers into EV’s with zero emissions face the challenge from employees that BIK tax this year, even on cars with zero emissions, face a BIK bill of 16% of the car’s overpriced list price.

I should also mention that if you read my 3 part report into the findings by the Germans who carried out a large survey into latest generation diesel cars only to find that emissions of NOx, CO2 and particulates were less than petrol when tested on the road in real world conditions so if anything we should be moving back to diesel as an interim measure.

Sorry Mr Khan, consider the above then I would get back to the drawing board if I were you!  By Graham Hill

Following a ‘super complaint’ to the Competitions and Markets Authority by the Citizen’s Advice Bureau (CAB) the FCA announced at the end of last year that it was instigating an investigation into the way that car and home insurance was being sold.

Citizen’s Advice alleges that ‘Loyalty Pricing’ is rife throughout insurance, mortgage, savings and telecoms industries. The process gives customers the impression that they are receiving preferential rates when in fact they are conning us out of £4.1 billion every year according to the CAB.

We’ve probably all been there, I know I was taken in with the wording of my car insurance renewal letter many years ago, something along the lines of ‘Thank you for being a loyal customer, as a result of which we can offer you the special loyalty rate of £xx for the next 12 months. You don’t have to do anything if you wish to continue with us blah blah blah’.

There I was thinking I had a good rate until I tested the market and found that I could save £300 a year – the crooks! And don’t get me started on ‘Loyalty’ phone upgrades! So I for one am all in favour of the FCA investigation. The FCA has already said that it understands the conflict between consumers’ perception of what Loyalty means and the truth – they will be addressing the situation.

Reading the various reports it is far worse than I thought. It would seem that insurance companies assess the likelihood that you will shop around before giving you the new quote. This can see some subjected to ‘price discrimination’, whereby they are charged more than other customers who present the same risk to insurers, and cost no more to provide cover for.

The FCA said it has ‘Concerns that these pricing practices can potentially disadvantage some consumers significantly, in particular, the most vulnerable and least resilient customers’. It seems that older drivers and those with disabilities are less likely to shop around relying on the term ‘Loyalty’ to suggest that they are being treated fairly.

I await the results of the investigation with interest. By Graham Hill

For years I’ve been concerned about safety recalls and the fact that some drivers tend to ignore them putting themselves, their passengers and other road users in danger. I’m not talking about a bit of trim that might fall off inside the car or a glovebox that doesn’t shut properly but something like the Vauxhall Zafira fire hazard that caused more than 160 cars to catch alight.

You may recall (as it was widely publicised) that some 234,000 Zafiras built between 2005 and 2014 were recalled following the fire problem that Vauxhall initially refused to accept as a problem. This was followed by a further recall of 47,000 of Zafira ‘B’ models for fear that the heating systems fitted could also lead to fires.

Initially, Vauxhall thought the problem only existed amongst cars that had the old fashioned heating and air-con systems fitted. But the latest action extended the recall to other models fitted with electronic climate control systems fitted to cars built during the same period. The fault relates to the system’s heater blower and regulator.

Letters have gone out to drivers and registered keepers advising of the recall but this is my issue. Vauxhall have explained to Auto Express that out of the original 234,000 cars, 86.5% were subsequently fixed leaving 31,000 untreated cars on the road, potentially putting lives at risk. Whilst these issues should not exist in the first place, once identified there should be a mechanism that enables every affected car to be identified.

Vauxhall says that it continues to pursue outstanding cars but added to their response to Auto Express: ‘this can take longer if a change in ownership is involved or if owners ignore our letters. There are also some vehicles which have been taken off the road or scrapped since the recall was issued’.

Since this was done I am now aware that in April 2019 a further recall was issued, making 4 in total on this car, that includes cars fitted with manual and no air condition. The latest recall of 235,000 cars also includes cars that were previously fixed for an entirely different problem.

Whilst the Government has criticised Vauxhall for their indifference to the problem in the early days, this is dreadful and more should be done to stop this from happening in the future. All safety recalls should be subject to a more robust system.

DVLA records should be scanned for cars that have been written off or simply scrapped and advised back to the car manufacturer. A note should also be added to the individual car file that contains MOT details so that the MOT station can advise drivers of the safety recall in case the change of ownership had not been recorded and the recall letter not delivered to the new owner.

Garage records should also be updated on each car to contain recall information ready for when the car is serviced. If the recall is a safety recall the car should not be released back on the road until the problem has been fixed.

Once it can be shown that the driver was advised it should be a criminal offence to drive a car under safety recall in the same way that it is illegal to drive a car without a current MOT test or illegal tyres or brakes that put lives at risk. Failure to take action should result in a fine or points on the driver’s licence. That’s what I think! By Graham Hill

We all know that the more electric vehicles on our roads in the UK the greater the demand for public charge points. Even with public charge points you will need a domestic charge point as the cost of charging an electric car using a public charge point pushes up the cost per mile.

When the fuel stations started to introduce fast chargers they were charging an introductory rate which was roughly half price. Once they increased the rates the cost per mile was higher for an electric car than a petrol or diesel car. Whilst local authority installed charge points should be cheaper they will still be more expensive than domestic chargers.

However, London has decided to assist motorists and encourage the purchase of electric cars by converting lamp posts into EV charge points as part of a £300,000 project. The points can deliver charge rates of up to 7.7Kw, and are being installed at 50 lamp posts in Southwark.

The charge points are being supplied by char.gy and funded by Go Ultra Low City Scheme. The chargers can be accessed by EV drivers on pay-as-you-go basis. Poppy Welch from Go Ultra Low said she wants to see, ‘All new street lighting columns include charging points’ in areas with on-street parking. By Graham Hill

Dometic.com has developed a new tech portable battery to plug all of your technology into including portable fridges and freezers. In their words, they have developed ‘the most advanced battery technology on the market’ to keep all your kit charged and powered.

Their heavy duty unit, the PL40 uses a 40Ah LiFePo4 (Lithium Iron Phosphate) power pack which the makers claim can deliver a stable output for longer than lithium-ion versions. The Swedish makers claim that it is also the lightest and most powerful battery in its class.

It comes with a range of outputs including twin USB slots for charging, phones, laptops and tablets. But the main role when camping, picnicking or on holiday is to power something like one of Dometic’s cool and freezer boxes via its 12v socket. It can run one for up to 40 hours.

It has a built-in LCD display which shows charging and output status. There’s also a sturdy handle for easy carrying. There are three ways to charge the unit. From mains power at home, via the 12v socket in the car or with a solar panel once you’ve arrived at your destination.

Dometic has also released a new range of inverters that turn 12v into mains power. The Sinepower DSP-C Series delivers up to 2,000w from the car battery and can charge it when plugged into the mains. There are three models, starting at £129. See their website at www.dometic.com  By Graham Hill