3 Million MOT Extensions Allowed Since TheStart Of Lockdown

Thursday, 11. June 2020

A Freedom of Information (FOI) request submitted by MoneySuperMarket has revealed that more than 3m (3,025,345) cars and vans had their MOT extended since March 30.

 

Broken down by EU class, that is 2,788,594 passenger vehicles and 236,751 light goods up to 3000kg – roughly 65,000 cars per day. MoneySuperMarket predicts there could be another 1m cars with MOT extensions by June 1.

 

MOTs are automatically being extended by six months if it was due to expire on or after March 30 and if its eligible. However, it has recently been updated on May 27, that a MOT extension will no longer apply if you take your vehicle for a MOT and it fails. Your vehicle will need to be fixed and pass its MOT before you can use it again.

 

The Driver and Vehicle Standards Agency (DVSA) highlights that safety remains its top priority and drivers are at risk of prosecution if found to be driving unsafe vehicles. Vehicles must be kept in a roadworthy condition and garages remain open for essential repair work.

 

Car servicing and repair company, Kwik Fit, has said it expects to see a significant demand in MOT requests post the six-month extension period, as current trends suggest that most drivers will wait until the MOT extension is over before arranging for their MOT to be completed.

 

As a result, there will be a significant demand for MOT tests in October, November and towards the end of 2020, putting pressure on capacity, the company says.

 

According to statistics provided by MoneySuperMarket, of all MOTs due this year, 18% were due in April and May. Data based on drivers using the MoneySuperMarket car monitor, showed that October is expected to be the busiest month as 15% of all MOTs are due in within the month.

 

However, Kwik Fit says it is taking measures to increasing capacity at more than 500 MOT test centres across the UK and would encourage drivers to book the MOT in advance of the extended due date, especially if the vehicle is being used more regularly during that time.

 

Kwik Fit estimates that 25% of fleet drivers who could have deferred their MOT have still had a test on their vehicle. However, most drivers it would have expected during the weeks since the introduction of the MOT extension have chosen not to visit, due to the restrictions in place for lockdown.

 

New research by Kwik Fit also revealed that almost 1.1 million unroadworthy vehicles are set to return to the roads as lockdown begins to ease. An estimated 1,096,000 vehicles which would have received a six-month extension, would have failed a test with dangerous or major defects had they undergone a MOT.

 

Dan Joyce, fleet director at Kwik Fit, said: “Of the fleet vehicles which received an automatic extension, our experience tells us that around one in five would have failed a test if they had received one.

 

“Therefore, our on-going message to drivers whom have been using their vehicle or will now start to use their vehicle again whilst lockdown restriction are eased over the coming weeks and months, is to consider the roadworthiness and general condition of the vehicle prior to using it again more regularly.”

 

Kwik Fit have continued to offer MOT slots throughout its network during the MOT extension period and says that although volumes have significantly reduced during this time, it has seen some demand for MOT’s from key workers and people using their vehicles to continue with essential journeys during lockdown.

 

Three quarters of a million MOT tests still carried out in April

But despite the MOT extension, three quarters of a million tests were still carried out in April, figures from Motorway.co.uk have revealed.

 

A Freedom of Information (FOI) request to the Driver and Vehicle Standards Agency (DVSA) made by the car selling comparison website showed that 746,157 MOTs were carried out in April 2020, down 80% on March 2020 – where 3,723,524 motorists took their vehicles for a MOT.

 

Perth in Central Scotland saw the biggest drop in MOTs last month, with tests down 85.7%, in comparison to March. Inverness saw 85.6% fewer MOTs in April, than in March.

 

 

 

 

 

 

 

 

 

More than 20,000 motorists in the Birmingham area (21,324) took their vehicles for a MOT in April, and 18,170 tests were carried out by garages in the ‘S’ postcode area (Sheffield) last month.

 

 

 

 

 

Alex Buttle, director at Motorway.co.uk, said: “These figures from the DVSA show that despite motorists having the opportunity to postpone their MOT test, many have chosen not to do so. There could be several reasons why; with general car maintenance, ongoing value and safety issues likely at the forefront of many drivers’ minds.

 

“Saying that, the number of MOTs in April was still substantially lower than March figures, and we expect to see a similarly low level of testing in May, as lockdown restrictions have only been eased slightly this month.”

 

Automotive aftermarket ready to deal with MOT demand when 6-month exemption is lifted

New automotive aftermarket sector-specific guidance to ‘keep millions of vehicles roadworthy’ has been published by the Garage Equipment Association (GEA), Independent Automotive Aftermarket Federation (IAAF), Institute of the Motor Industry (IMI), Scottish Motor Trade Association (SMTA) and the Society of Motor Manufacturers and Traders (SMMT).

 

The UK automotive aftermarket sector has signalled its readiness to cope with increased demand for MOT tests, service, maintenance and repair with the publication of Covid-19: Industry Guidance and Best Practice for Automotive Aftermarket.

 

Although workshops have been allowed to stay open throughout the lockdown, helping to keep vehicles roadworthy for essential journeys, guidance will help companies of all types and sizes in the aftermarket operate safely while minimising the risk of Covid-19 transmission.

 

Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders, said: “It is timely that the aftermarket can assure customers and colleagues that it is ready to re-open safely to ensure workers’ vehicles remain roadworthy.”

 

The best-practice guidance covers the entire aftermarket sector, including workshops, warehouses, mobile operations and parts distributors and covers every aspect of their operations, from clear communications with customers and colleagues to social distancing, sanitisation and hygiene, and collection/delivery of vehicles from vulnerable owners.

 

It is designed to complement government advice and help the aftermarket sector demonstrate safe practices for employees and customers across all points of interaction. It comes as vehicle mileages start to climb and the sector calls for an end to the six-month MOT extension.

 

Hawes said: “With government advice stating that workers should avoid public transport when returning to work, the use of private cars is likely to rise more sharply than it already has over recent weeks. Given many of these vehicles have been idle for weeks, a reconsideration of the six-month MOT extension needs to be made as soon as possible.”

 

The vital role of the aftermarket sector in supporting safe mobility of the UK workforce has been underlined as the IMI echoes the SMMT call for the six-month exemption to be scrapped.

 

Steve Nash, chief executive officer at the Institute of the Motor Industry, said: “There are serious risks in the extension remaining in place now. If vehicles are coming back onto the roads in volume it is vital for all road users’ safety that they are roadworthy.

 

“The other issue is that if all motorists wait up to six months from when their MOT expired to get their vehicle tested, there is going to be a big backlog of tests in the Autumn and Winter which could significantly overwhelm the sector. That’s without considering the likelihood of the market shrinking because many businesses are unlikely to be able to survive without work coming in.

 

“The SMMT’s proposal to scrap the extension makes a lot of sense for road safety and will be a vital boost for a currently beleaguered sector.” By Graham Hill thanks to Fleet News

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DVLA Issues A Scam Alert To Motorists

Wednesday, 13. May 2020

  • DVLA has recorded a 20% rise in the number of scams reported
  • These are all cons linked to DVLA services, such as vehicle taxation
  • Some 1,538 fraud cases were raised to the agency in the final 3 months of 2019
  • It provided examples of common scams that have been used in recent months

 

Motorists are being targeted by fraudsters using a range of different scam tactics in a bid to trick them into handing over money.

 

That’s according to a fresh warning by the DVLA last February, which has provided examples of scams it has been alerted to and traced in recent months.

 

There has been a 20 per cent rise in fraud attempts handed to the DVLA, with 1,538 reports made to agency in the last three months of 2019, new figures show.

 

Car owners have alerted the DVLA to a number of different con tactics being employed by scam artists.

 

Motorists have said they have been swindled out of money and targeted by fraudsters using fake DVLA websites, emails, texts and social media messages.

 

It has warned drivers that these are becoming more prominent, having received 1,275 scam reports in the final three months of 2018 – some 263 fewer than in the final quarter of last year.

 

To raise awareness of the types of fraudulent communication motorists might receive, the DVLA has released images of recent scams it has been alerted to.

 

It hopes this will help motorists be aware of what to look out for and issue a clear warning that if something offered online or by text message appears too good to be true, then it almost certainly is.

 

Scammers are targeting unsuspecting customers with links to services that don’t exist and messages of tax refunds, all of which are fake.

 

The reports also show that driver and vehicle documents are for sale on the internet.

 

The agency says anyone who is concerned about any calls, texts, emails or suspicious activity online, to always report these to the police via Action Fraud immediately.

 

DVLA chief information security officer David Pope said: ‘We’ve released examples of real life scams to help motorists understand when a scam is at work.

 

‘These websites and messages are designed to trick people into believing they can access services that simply don’t exist such as removing penalty points from driving licences.

 

‘All our tax refunds are generated automatically after a motorist has told us they have sold, scrapped or transferred their vehicle to someone else so we don’t ask for anyone to get in touch with us to claim their refund.

 

‘We want to protect the public and if something seems too good to be true, then it almost certainly is. The only trusted source of DVLA information is GOV.UK.

 

‘It is also important to remember never to share images on social media that contain personal information, such as your driving licence and vehicle documents.’

 

A spokesperson for Action Fraud added: ‘This can be a stressful time of year, sorting out finances for the year ahead. Fraudsters are aware of this and are using different ways to trick people.

 

‘Taking a couple of minutes to familiarise yourself with a few simple online safety tips can be significant in protecting yourself from becoming a victim of online fraud.

 

‘You should always be cautious when sharing personal information online and avoid being scammed by only using GOV.UK for government services online, such as the DVLA.

 

‘If you believe you have been a victim of fraud, please report it to us.’

 

Note: If you want to see the sample emails being sent out go to the original article by clicking here:

 

https://www.thisismoney.co.uk/money/cars/article-8037209/DVLA-says-cons-used-fraudsters-trick-motorists-handing-money.html

 

By Graham Hill thanks to This Is Money

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Warning To Take Care Of Your Battery During Lockdown.

Wednesday, 13. May 2020

The number of drivers visiting Kwik Fit over the past four weeks needing a new battery has been double the usual rate for the time of year.

 

Battery failures traditionally spike in the winter months due to the greater demands placed on them in starting cold engines.

 

The impact of the lockdown has seen battery failures over the past month increase to levels similar to the average for January over the past five years.

 

While this has mainly affected older vehicles, motorists with newer cars have also found their batteries struggling, says Kwik Fit.

 

The number of fleet vehicles, such as company cars, requiring new batteries has risen by around 10% compared to the same period last year. This is a significant indicator of the extent of the problem as not only are fleet owned vehicles newer than the average, they are more likely to have advanced batteries, to support ‘start-stop’ technology.

 

Roger Griggs, communications director at Kwik Fit, said: “Most of us associate battery failure with the winter months and having to call out a breakdown service to get us started after Christmas holidays.

 

“The lock down has had a dramatic effect on motoring and has been positive in helping control the spread of the virus, but this is one area which is storing up potential problems for motorists.

 

“We certainly don’t encourage anyone to use their car unnecessarily, but we hope that our advice will help some people avoid a nasty surprise when they next need their car.”

 

Kwik Fit’s battery experts advise motorists to take the following steps to help avoid encountering battery problems:

 

  • If you are not using your car at all, start the car once or twice a week and let the engine run for at least 15 minutes (stay in your car when you are doing this and the car must be outside).
  • Bear in mind that a colder engine takes more out of the battery to start, so if possible start your car during the warmer part of the day rather than first thing in the morning.
  • Check under the bonnet and inspect the battery terminals for signs of corrosion. Clean any corrosion and residue away from the terminals to allow a good clean connection with the battery.
  • If your car is parked on a driveway or garage, consider buying a trickle charger which can be plugged into the mains and keep your battery charge topped up – always follow the guidance in your vehicle’s owners handbook prior to connecting a trickle charger.
  • Check your battery’s age – most batteries are stamped with date codes and a battery more than five years old may be at risk of failure, especially if the car is only making short or infrequent trips.

 

By Graham Hill thanks to Fleet News

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Virtual Speed Awareness Courses Introduced To replace Classroom Courses

Wednesday, 13. May 2020

DriveTech is helping to fill the gap with online speed awareness courses after a classroom-based option was halted due to coronavirus.

 

Having reconfigured course delivery online via the Microsoft Teams platform, it has delivered classes to 22,000 motorists helping them avoid a police prosecution.

 

The National Police Chiefs’ Council (NPCC) lead for Roads Policing suspended classroom-based speed awareness courses for 12 weeks in March.

 

More than 1.2 million drivers attended a speed awareness course last year. The courses usually cost between £80 and £100, but motorists avoid paying a Fixed Penalty Notice or picking up penalty points on their driving licence.

 

DriveTech, which works in partnership with police and UKROEd, had to move rapidly to rebook around 50,000 classroom delegates bookings prior to the lockdown, to avoid motorists facing the alternative of prosecution, points and fines.

 

With revised digital course content needed, and DriveTech’s body of 175 trainers needing upskilling to deliver the virtual online experience, it says that the challenge was considerable.

 

Five weeks on from the first day of digital course delivery on March 27 (a week after lockdown measures affected venue participation), DriveTech says it is delighted that online course capacity is now matching the former levels of classroom supply.

 

Des Morrison, director of police business at DriveTech, said: “We reflect now on a pretty hectic few weeks, but it is satisfying to now see our digital delivery performing well and with some excellent customer feedback – both from our police force customers, delighted by our professional response in a crisis, and delegates.”

 

DriveTech is now delivering the three mainstream courses digitally – National Speed Awareness, National Motorway Speed Awareness, and What’s Driving you? and delegate feedback, as measured by Net Promoter Scores (NPS) has been at world class levels, it says.

 

In addition to placing the first priority on satisfying a backlog of delegates already booked onto a venue-based course, DriveTech is now taking bookings for new delegates from across the country.  By Graham Hill thanks to Fleet News

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Pothole Related Breakdowns Increase During First Quarter Of 2020

Wednesday, 13. May 2020

The number of vehicles requiring recovery due to pothole damage has increased rapidly according to the RAC.

 

It rescued almost 3,500 motorists with pothole damaged cars in the first quarter of 2020, an increase of 64% on Q4 2019.

 

The number of cars damaged by potholes requiring recovery, between January and March, is 4.5% higher than in the same period last year, despite the Coronavirus lockdown reducing the number of vehicles on the road in the last nine days of the March.

 

Breakdowns resulting from damaged shock absorbers, broken springs and distorted wheels – that are most likely to be attributable to poor road surfaces – made up 1.6% of all the RAC’s call-outs for its individual members.

 

This was considerably up on Q4 2019 when the figure stood at 0.9% and marginally up on the same period a year ago – 1.5%.

 

The RAC’s Pothole Index suggests the overall standard of the roads has improved a little as the Index currently stands at 1.6, down from 2.3 in the same period last year and slightly down on Q4 2019 (1.7).

 

This does mean however that drivers are still 1.6 times more likely to break down as a result of pothole-related damage than they were back in 2006 when the RAC first started collecting data.

 

RAC head of roads policy Nicholas Lyes said: “The jump in pothole-related breakdowns from the last three months of the year to the first quarter of the next year is always the largest as winter weather has the greatest effect of all in wearing down our roads.

 

“Many parts of the country suffered very wet weather conditions throughout February. It’s still likely that the storms and floods were major factors in why the number of pothole-related breakdowns was higher than the same period last year.

 

“In his Budget in March, the Chancellor committed to funding our local roads and it is clear that the economic recovery as the UK emerges from the COVID-19 pandemic will need to be built on solid infrastructure – which of course needs to include good quality roads.

 

“Moreover, it will also be interesting to see if lower traffic volumes during the UK’s lockdown will help prevent further deterioration of roads as fewer wheels going over weaknesses in the asphalt should contribute to less surface wear.”  By Graham Hill Thanks To Fleet News

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MOT Test Stations Set To Be Flooded After Lockdown

Wednesday, 13. May 2020

The Driver and Vehicle Standards Agency (DVSA) issued guidance towards the end of last month that a car, van or motorcycle’s MOT expiry date could be extended by six months if it was due on or after March 30.

 

The DVSA currently carries out 30 million MOTs a year through 23,000 test centres. But, with all this summer’s MOTs effectively being pushed back into the autumn/winter period, that could put unprecedented pressure on the system and leave drivers scrambling to find MOT slots.

 

Terry Hiles, general manager at Licence Check which is now part of the Ebbon-Dacs Group, said: “The six-month MOT extension raises concerns about the potential backlog of tests that will need to be carried out later this year.

 

“Centres will be twice as busy as normal during the autumn/winter period as 12 months’ demand will be effectively shoehorned into a six-month time frame.

 

“Employers will need to have in place robust systems in place to ensure MOTs are carried out on the new dates rather than the regular anniversary date that they may have become accustomed to.

 

“So MOT reminders and alerts to drivers will be vitally important.

 

“MOTs will need to be attended to once lockdown ends and many drivers may need a prompt to help them remember the new expiration date.

 

“One option could be to sign with the .gov.uk website for its text message reminder service so that drivers are sent reminders of their new date.”

 

Currently, some 10% of vehicles fail an MOT due to defective brakes, 13% for suspension faults and 8% for illegal tyres.

 

With a percentage of the nation’s cars not being MOT’d for a further six months, the chances of some of them being driven in an unroadworthy state could rise dramatically.

 

Drivers could face fines of up to £2,500, be banned from driving and get three penalty points for driving a vehicle in a dangerous condition, regardless of whether they are being operated under a six-month MOT extension or not.

 

The DVSA’s official guidance on its website says that insurance will still be valid, that drivers can still tax their vehicle and the vehicle’s record will be updated so the police can see they have a valid MOT during the six-month extension.

 

But insurance cover is likely to be invalidated if the vehicle is driven in a dangerous or defective state and the emphasis is on drivers to keep their vehicles in a roadworthy condition.

 

The DVSA advice is to take your vehicle to be repaired at the nearest open garage if it’s unsafe. These are allowed to stay open during the Coronavirus outbreak.

 

Licence Check said this uncertainty puts the onus on employers, especially those with large numbers of grey fleet drivers who use their own vehicles on company business, to have in place robust systems to ensure that vital checks are being carried out,  such as MOTs, as soon as possible once lockdown is over to ensure continuing compliance. By Graham Hill thanks to Fleet News

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Michelin Provides Car Care Advice During Lockdown

Saturday, 2. May 2020

Michelin has issued special guidance for vehicles parked up for extended periods during the Coronavirus pandemic.

 

The company has detailed steps to follow before laying up vehicles, along with advice on periodic inspections and preparing them to re-enter service.

 

Brian Porteous, Michelin’s technical manager – Car, Van, 4×4 and Government Contracts, said: “Tyres can be damaged if certain precautions are not taken before the weight of a parked car or light commercial is supported for long periods, so it’s important owners follow some basic advice to ensure vehicles can be quickly put back into operation when normal business resumes, and without the need to replace tyres unnecessarily.

 

This isn’t just advice for big fleets; it’s as important for smaller operators, sole traders and consumers

 

Preparing vehicles

 

Before laying up a car or van, the tyres should be checked for damage and any cuts or penetrations that may deteriorate over time should be assessed by an expert. Many tyre dealerships remain open, often with mobile technicians available.

 

Inflation pressures should be set at the normal levels for the vehicle. Any tyre which is found to be under-inflated by up to 7psi can normally be re-inflated safely if there are no obvious signs of damage. However, if a tyre is under-inflated by more than 7psi, it should be removed and inspected by an expert to make sure that no structural damage has been caused.

 

Tyres inflated with nitrogen should have their inflation pressure checked in just the same way as those inflated with air. Whatever the inflation medium, ensure that a valve cap with a rubber seal is fitted to every tyre valve.

 

Make sure that tyres are not parked on stones or objects that might dig in. Also avoid tyres sitting for long periods in pools of water or other liquids, such as oils.  For longer periods, covering tyres to avoid exposure to sunlight will also prolong their life.

 

Clean tyres with mild detergent only and rinse well with cold water.

 

During extended parking

 

Even when not in use, tyre inflation pressures should still be regularly checked and corrected as necessary – ideally on a monthly basis, in line with standard Michelin recommendations. Any pressure loss should be investigated and the cause remedied.

 

Every four months, if a vehicle has not been moved, the tyres should be rotated a quarter turn.

 

Re-entry into service

 

Any tyre and wheel assembly which has been stored for a long period, on or off the vehicle, should be visually inspected for damage and any unusual signs before re-entering service. Pressures should be checked and set to the vehicle manufacturer’s recommendation.

 

Remember that tyres may reach the end of their service life whilst in storage. Tyres which have been in use for five years or more should continue to be inspected by a specialist at least annually.

 

Any tyres in service 10 years or more from the date of manufacture, including spare tyres, should be replaced with new tyres as a simple precaution – even if they still appear serviceable and have not reached the legal wear limit.

 

The date when a tyre was manufactured is located on the sidewall. Consumers should locate the code which begins with the letters DOT. A DOT code ending in “2210” indicates a tyre made in the 22nd week (May) of 2010.

 

“We appreciate that for most businesses and consumers, the very idea of parking vehicles for extended periods is an unfamiliar process and not something they want to be doing. However, by spending a few minutes inspecting and preparing a vehicle first, you will help to protect the condition of its tyres and ensure it is in the best possible condition for getting back on the road when the time comes,” Porteous added.  By Graham Hill thanks to Fleet News

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Thousands Of Drivers Being Caught Speeding During Lockdown.

Friday, 24. April 2020

Drivers are being urged to slow down during the lockdown after Greater Manchester Police said it has caught 6,200 drivers breaking the speed limit since Monday, March 23.

 

With all non-essential travel currently banned under Government guidance, the majority of people are staying at home and if they need to go out, they are sticking to the speed limits.

 

Department for Transport (DfT) data shows motor vehicle use in Great Britain has fallen by two thirds over the past month.

 

However, Greater Manchester Police has seen an 57% increase in vehicles travelling above the speed limit over the past few weeks and other forces have reported similar problems.

 

One driver was recorded at 115mph on a 40mph road in Greater Manchester, while another was clocked at 134mph in a 40mph limit in London.

 

Superintendent Julie Ellison from GMP’s Specialist Operations Team said: “Sadly we have seen a huge increase in speeding offences and numerous examples of drivers who are putting their own lives and others at risk.

 

“My officers are working tirelessly to track down these offenders who are using the quieter roads as their own personal racetrack.”

 

Scottish police reported a man was recorded travelling at more than 130mph on the A90 between Peterhead and Ellon, Aberdeenshire, on April 12, while a driver was stopped in Sudbury, Suffolk, travelling at 80mph in a 30mph limit with no insurance and no driving licence.

 

Police in Wales, meanwhile, have seen speeds of 114mph in a 70mph limit on the A55 in Rhuallt Hill, another at 105mph in a 60mph limit on the A5 in Halton, Wrexham, and a third at 104mph in a 70mph limit on the A48 in Pensarn, Carmarthen.

 

Nick Lloyd, head of road safety at RoSPA, said: “We’re alarmed by the latest reports of speeding across the UK, and the reckless disregard with which some drivers treat the rules of the road just because they are more quiet than usual.

 

“Excessive speed at any time is dangerous, and you put other people, as well as yourself, at risk of death or serious injury. Please don’t be selfish, and stick to the limit – it’s there for a reason.”

 

Lloyd says that drivers also need to be extra vigilant given the lockdown.

 

“There are currently more children, pedestrians and cyclists out and about for their daily exercise, all throughout the day,” he said.

 

“Additionally, if you cause a crash, you will be putting frontline resources and health professionals under needless strain at a time when they should be dealing with getting the pandemic under control.”  By Graham Hill thanks to Fleet News

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Massive Rise In Vehicle Thefts Over Last 3 Years

Friday, 24. April 2020

The number of vehicles stolen in England and Wales rose by more than one-fifth (21%) between 2016 and 2019, according to a freedom of information request by AX.

 

Responses obtained from police forces across England and Wales found much of that increase occurred between 2016/2017 and 2017/2018, with a ride of 14.1%.

 

The report follows research by Verizon Connect earlier this year, which found the average fleet loses around £16,000 per year as a result of vehicle or equipment theft.

 

Neil Thomas, director of investigative services at the provider of intelligent vehicle protection and management technologies and a former detective inspector, said: “While the lockdown may temporally reduce some types of car theft, criminals are using increasingly intelligent ways to steal vehicles and continue to find success.

 

“The combination of organised crime getting smarter and ability to make quick returns has drastically increased pressure on police forces to control the theft of motor vehicles.

 

“Car thieves are opportunists and have no respect for property and will remain determined to carry on illegal activity despite the current restrictions on movement across the UK. I have even seen recent reports of vehicles belonging to key workers being stolen.

 

“During this period of lockdown, it’s even more important that car owners remain vigilant and do what they can to keep their car safe while they’re using them less frequently, if at all.”

 

Of the 17 police forces that responded, Nottinghamshire and Staffordshire Police saw the largest increases, with Nottinghamshire Police reporting an overall rise of 60%.

 

Hertfordshire, Surrey, West Midlands and Essex Police each saw overall surges of more than 40%.

 

However, some forces have seen a decrease in motor vehicle thefts, including Merseyside Police and Avon and Somerset Constabulary. Humberside Police reported the largest drop, with a decrease of 36%.  By Graham Hill thanks to Fleet News

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Motor finance expert warns that FCA Coronavirus proposals could leave NHS and other essential workers without cars.

Friday, 24. April 2020

This is a piece written for the press:
Last Friday the FCA issued a consultation document aimed at providing drivers with the most popular forms of finance some respite by forcing the finance providers to allow drivers a 3 month payment holiday.
Monday the 20th was the cutoff for interested parties to make their feelings known to the FCA before they issued their final instructions on the target date of Friday 24th April.
Leading car finance expert Graham Hill welcomed the move, ‘Whilst several funders have already announced that they would be offering drivers reduced payments or holiday periods this is a welcome industry-wide instruction’.
‘Personal contract hire is a much easier product to adjust as it’s a more simple rental product but PCP, by far the most popular consumer car finance product, is more complex as it raises the question that if the contract is extended by 3 months will that affect the optional Guaranteed Minimum Future Value?
‘Also the holiday period accrues interest, how will that be recovered by the finance provider? And given the way that PCP interest is calculated if the contract is only a few months old nearly all of the monthly payment is interest.
The FCA has gone further than recommending a payment holiday they have also proposed a way that PCP providers should deal with cars that end their contracts during lockdown:
Rob here is the complete section. The first part is fine, it’s the second part that causes concern:

PCP agreements reaching term end during the period this guidance is in force

Where a customer wishes to retain the vehicle, but does not have funds to cover the balloon payment due to coronavirus related financial difficulties, firms should work with the customer to find an appropriate solution. Given the increased potential for disparity between the balloon payment and the value of the vehicle in the current climate, firms should ensure that solutions do not lead to unfair outcomes. For example, refinancing the balloon payment might not be appropriate in the circumstances.
Where a customer wishes to return the vehicle, but this is impractical due to the coronavirus situation, firms should inform the customer that they are unable to use the vehicle once the agreement has been terminated or come to an end (if that is the case). The firm should inform the customer of the need to make a Statutory Off Road Notification (SORN) declaration if the customer is the registered keeper of the vehicle and they want to stop taxing and insuring it because it is ‘off the road’.
If the customer doesn’t want to buy the car he would normally have two choices, either use the car as a part exchange if there is equity in the car or simply hand the car back.
According to Hill, ‘With car dealerships on lockdown it is not possible for drivers to negotiate a part exchange and given the collapse of used cars it’s unlikely that there would be any equity in the car anyway.’
‘So with most drivers that are at the end of their PCP agreements with little choice but to hand the car back they are potentially looking at a situation that could leave them without a car unless the FCA adjusts its proposals, i.e. that drivers should be informed by the funder that they are no longer able to use the car.’
.
‘This could result in those who are dependent on their cars such as emergency service workers, NHS workers, doctors, midwives, care home workers and other essential workers being without their cars. This must not happen.’
The FCA have also recommended that if a driver reaches the end of his PCP agreement that he is told not only to stop driving it but also, if the car can be stored off-road on a driveway or private land, to file with the DVLA a Statutory Off Road Notice (SORN) that will enable the driver to cancel his insurance and stop paying the car tax.
According to Hill that is a highly dangerous recommendation. As he points out, ‘Without insurance what happens if the car is stolen off the drive or the land it’s parked on or damaged in any way? There has also been an increase in theft of Caralytic Converters from cars because of their precious metal content. If any of this happens without insurance drivers could be severely out of pocket. The FCA really needs to reconsider this proposal’
‘It also raises a more fundamental question. If the car is parked on the road the driver will have to keep the car taxed and insured even though he has been told he cannot drive it per the FCA instructions. But if he has told the finance company that he wants to hand the car back under the terms of the agreement if the car cannot be collected the tax and insurance should be the responsibility of the finance company as they are the legal owners of the car.
‘As the driver has been told he cannot drive the car he cannot be seen to be the keeper so again the responsibility rests on the shoulders of the finance provider. The instructions – as they are could have some very serious consequences.
Asked about the number of consumers the proposals could affect Hill explained, ‘I have calculated that there could be around 3 million new car PCP’s that are active and therefore could be requesting payment holidays. Used car PCP’s are more difficult to assess but there could be around 3 – 4 million active agreements looking for payment holidays.
‘With regard to PCP’ agreements coming to an end, as collections of end of PCP cars stopped in March, the highest month of the year for registrations, I believe that we could be looking at 450,000 cars coming to the end of their agreements between March and June.’
With the final instructions due out on Friday it is important that we don’t leave PCP customers without their wheels if only to get then to and from their local shops, whilst avoiding as much contact as possible, and keeping them off public transport.  By Graham Hill
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