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

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

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

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

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

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

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

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

As most of my customers know you don’t pay your initial rental until after the car has been delivered and you have had the opportunity to inspect it. There is a reason for this and it’s not because my funders are really good eggs and don’t like taking money off you before you receive your car.

I’m sure they would love to but that would mean that by taking money from you before delivery the transaction would fall inside the distance selling rules. That would give you 14 days during which for any reason whatsoever you could return the car and ask for a refund.

That would prove to be very costly so it’s avoided. Of course you can still return the car if it’s faulty or not as ordered but not because you changed your mind. However, many people now buy new and used cars online unseen which means that the transaction falls within the scope of the Distance Selling Rules provided the car was bought from a dealer or trader (not privately).

You have 14 days starting the day after delivery of the car to reject it as long as you haven’t physically seen the car. If the whole transaction is completed online then you just visit the dealer to collect the car it is still a distance sale.

However, some sellers will issue terms and conditions for you to sign or tick online. You must read them as some are now including a term that states that the contract is only concluded when you collect the car, i.e. on the trader’s premises.

This takes the transaction outside the Distance Selling Regulations, so no cooling off period after you’ve driven the car away. If you have bought the car from a private seller online the distance selling rules don’t apply so no cooling off period. By Graham Hill

I have to say that I fall foul of this one myself. Do you allow your car insurance to auto-renew or do you compare rates? It has been a concern of the regulators for years but they’ve done very little about it. In one report a driver had his premium increased by over £200 with no explanation even though his car and circumstances hadn’t changed.

For ages the insurers have rolled out the same old tired excuses – hikes in Premium Tax Rates, increased cost of repairs and increased vehicle thefts. OK, we can see that but a rise of £200 – get outa here.

Some insurers we know offer cheap 1^st-year rates to capture new customers in the knowledge that a large number won’t shop around and will remain with them in future years when they can increase the premiums. That being the case it opens the door to consistently achieving low rates if you swap every year.

In the meantime, the British Insurance Brokers Association (BIBA) and the Association of British Insurers (ABI) have signed up to an agreement to prevent ‘excessive’ premium hikes when ‘auto renewing’.

Insurers will be expected to be more transparent and advise customers that rates could increase in the future and they will also need to review rates for long-term customers. That all sounds very good but I simply don’t believe them. First of all what constitutes an ‘excessive’ increase?

And in the second place what penalties will be doled out? No answer to either question was forthcoming. Maybe a step in the right direction but in the meantime stop auto-renewing and search the internet for better deals. By Graham Hill

In the course of a week, I’ve had two clients signing up contracts and having to send off their driving licences with the signed documents, only to find that their licences showed their old address.

There are 1.5 million motorists with driving licences showing the driver’s old address. Whilst this has dropped from 2.6 million in 2014 that’s still a lot of people who could be facing fines of £1,000.

You could be stopped for any reason requiring you to provide your driving licence at which time you could be fined if your address isn’t current. As one newspaper pointed out if the police could find a way to identify the drivers with licences showing the wrong address the fines could provide income of £1.5 billion.

If you find the address is out of date you can renew by following the instructions after clicking on the link below. It is free to change your address and you can continue to drive whilst the change is being processed:

https://www.gov.uk/change-address-driving-licence/apply-by-post

Do it now!! By Graham Hill

This week we saw the Government announcing some new initiatives to enable them to get to their 2040 target of no more petrol or diesel cars on our roads. Whilst they are trying to make the right noises in truth I don’t think they give a damn. Or maybe I’ve got it wrong.

A few years ago in an attempt to get us into diesel cars, we saw scrappage schemes that took us out of old chuggers and put us into new or newer cars but incentives to get us into electric cars seem to have missed the mark. Electric cars are so much more expensive than their equivalent petrol or diesel car to manufacture that even with the subsidies applied the cars they are still too expensive.

They are cheap enough to run at the moment if you charge from home but given the fact that most cars aren’t achieving their range and the cost of charging at public and filling station charge points is now incredibly high it costs less per mile in fuel to run a petrol or diesel car than an electric car.

I’m sure that it’s for these reasons that just 7,441 electric cars were registered in the first 6 months of this year which was fewer than the same period in 2017. So it seems that the Government stance has changed to push Ultra Low Emission Vehicles (ULEV). These are ‘vehicles with pure-electric engines, plug-in hybrid engines or cars with CO2 emissions lower than 75g/km at the tailpipe’.

Another interpretation comes from the Society of Motor Manufacturers and Traders’ (SMMT) who say that they ULEV’s are ‘vehicles using low-carbon technologies; emitting less than 74g of CO2 from the tailpipe; capable of operating in zero tailpipe emission mode for a minimum of 10 miles’.

It is all very confusing. To make matters worse the Government has announced that it will now settle for ‘at least 50%’ of new cars being ultra-low emissions by 2030. But as Mike Rutherford of Auto Express points out, surely this leaves the door open for the other 50% to be medium or high emissions vehicles?

As for the 2040 ban on petrol and diesel, that is looking decidedly dodgy as the biggest growth area is in the petrol hybrid cars and with no petrol the hybrids won’t work. So is that target in the toilet?

In their plans the Government has made a promise to ensure that all new homes will have an electric charge point fitted. Hmm, how does that work with flats that have fewer parking spaces than flats in the building? In fact I’m told that some new city flats are built with no parking at all. As Mr Rutherford suggests, possible on-balcony parking or maybe in the hanging baskets – we get the message. Clearly, the Government doesn’t.

Finally, in their disinterested way, they’ve said that all new street lights will have charging points fitted. They clearly haven’t so much as looked outside their windows or driven around their local town or city to notice two things. Firstly that most lighted areas are the most dangerous, on double yellow lines, pedestrian areas, dangerous bends etc.

A glance out of my window shows that all the new energy efficient lamps that were installed a couple of years ago emerge from the pavement on the opposite side to the road. This will mean that when charging a cable will lay across the pavement.

I think the Government should start to get serious or pass over planning for electrification to an organisation like the AA or RAC to get to grips with the problem. By Graham Hill

Highways England has announced that it is falling into line with the EU proposition to digitise the road networks thus setting a single standard of road networks that would stretch from the UK across the rest of Europe. Through sensors and wireless tech the network will be able to communicate and interact with individual cars.

Informing drivers of traffic delays ahead, temperature, road surface conditions and will even be able to inform and direct emergency services to accidents. According to Auto Express here are a few of the things planned:

1. Road sensors installed in studs or railings to convey messages to cars and help steer autonomous vehicles in future.
2. Big Data will help to predict traffic movements, prevent congestion from building up and warn drivers in individual cars to take another route. I thought that could be done already!
3. Potholes could be detected at once as the road would be able to report damage. Currently, patrols go out every few weeks to check for damage.
4. Sensor Tech could make it possible for heavy goods vehicles to ‘Platoon’. This allows lorries to travel in tight formation with fewer drivers saving fuel.
5. Self-repairing roads are something else that Highways England is currently trialling. This would reduce roadworks and costs.
6. Road charging would be possible with connected roads. This has already been suggested as a replacement for the road fund licence.

Sounds quite amazing! By Graham Hill

I made a quick comment on this a few weeks ago but I’ve since learned that it’s more serious than I thought. Unknown to many is that car manufacturers are not really manufacturers they are assemblers. They take components from all around the world and assemble them into finished vehicles.

I now understand that the movement of goods around the EU members is free of duty irrespective of where the component parts come from. However, where a free trade agreement has been negotiated between the EU and a non-EU country one of the conditions is that 55% of the product must originate from EU countries. And this is where it could affect the UK badly.

I have a customer who manufactures dashboards for a wide range of cars. They started making them for just one car manufacturer, they now make them for many manufacturers and export them all over Europe. It has now been realised that when we exit the EU we will no longer be considered as part of it when assessing which proportion of cars are made inside and outside the EU.

This could, therefore, mean that in order to meet the terms and conditions of the free trade agreements, even if we come to a free trade agreement between us and the EU we still fall outside the EU and could either cause Europe based car manufacturers to source components from inside the EU for cars being exported to non-EU countries or companies like my client to move to an EU country.

Yet another thing that wasn’t explained before we voted. All very worrying. By Graham Hill

With so many drivers switching from diesel to petrol, often after many years of driving a diesel car, the AA is reporting an increase in misfuelling callouts. The majority of callouts are from company vehicle drivers, accounting for 59% with consumers accounting for 41%.

Not all were for petrol cars being topped up with diesel, many were the other way round but the majority was a result of changes in company car policy or attitude of consumers towards diesel vehicles. I must say that after many years of topping my car up at the local Tesco filling station and automatically knowing that the diesel pump was the one on the far right.

In their wisdom they decided to change the pumps for new ones with the new pumps having the diesel nozzle on the far left. I didn’t do it myself but it caused many drivers to top up from the wrong pump through not paying attention. The AA offers a fuel assist programme for just this purpose, probably not a bad thing to take, especially if you are moving from one fuel to another.

The AA put down the mistake to drivers being pre-occupied, driving an unfamiliar car or visiting an unfamiliar filling station. So if you are about to change from one fuel to another make sure you don’t misfuel, if you do don’t start your car and lastly don’t even move it as this can cause all sorts of problems. By Graham Hill

According to What Car from 2021 self-drive cars without a driver at the wheel will be allowed on roads in the UK. Is this Government nuts? Don’t answer that! That is 3 years away!

Just after reading reports that self-drive cars still need an alert driver at the wheel ready to take over the controls in an emergency or if the car suffers a fault, we now hear that the self-drive cars will not only be allowed on our roads whilst the driver reads the paper, he can actually be indoors watching the TV. Crazy!

The move will apparently be achieved by removing the current legal constraints and overhauling insurance policies. I think slightly more important than that is to actually guarantee that people won’t get run over by a driverless car and killed before sorting out insurance policies.

In the US, Google’s self-drive technology firm Waymo, recently announced a driverless taxi service in Phoenix, Arizona. The cars will be completely driverless and if I’m anything to go by passengerless as well! I struggle getting on the driverless train between the two terminals at Gatwick Airport.

It travels on tracks with computers that stop the train automatically whilst travelling at its fastest at walking pace. Someone needs to tell the Government what to do with driverless cars – I think I just did! By Graham Hill

We are awaiting the results of a £7 million traffic lights trial on the M62 where it meets the M6. We’ve all seen the traffic lights installed on motorway sliproads at times of peak traffic  in order to regulate traffic flow.

Well, the same principle is being used on the M62 where it meets the M6 but the lights control all lanes of the motorway rather than just a slip road and work in conjunction with information signs and variable speed limits.

Highways England believe that these measures will ‘provide smoother traffic flows’ and if successful will be rolled out across the whole of the UK wherever 2 motorways merge. Traffic levels are currently hitting an all-time high so anything that can reduce the bottlenecks will be welcomed by motorists. But traffic lights on motorways – could that be a step too far? By Graham Hill