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Archive for the ‘General Motor News’ Category

Cost of car servicing rising

Thursday, September 15th, 2011

Latest figures have revealed that the cost of servicing a car in some parts of the country has risen to record levels, with some garages charging a whopping £200 per hour.

On average, garages charge around £80 per hour, which is a £6.00 increase on last year, when the average hourly rate you could expect to pay was £74.  And taking your car to a manufacturer dealership could mean forking out 57% more per hour, than if you use an independent garage.

A dealer in Essex wins the prize of the most expensive hourly rate, with motorists paying £200 per hour to have their cars looked at.

Middlesex have also topped the polls with garages in this area charging £98.21 per hour.  While Northumberland are the most reasonable, with an hourly rate of £66.66.

Once again motorists are being hit hard with the rising cost of motoring, with petrol prices soaring and the cost of servicing rising above inflation. Duncan McClure Fisher from Warranty Direct comments on the latest figures “Drivers might have hoped there’d be some reprieve from the staggering costs of motoring, but no, they’re getting clobbered yet again.  To think that some workshops are charging in excess of £200 an hour is astounding – that’s equivalent to some people’s weekly wage. Motoring costs are approaching an unsustainable level”.

A spokesperson from the AA believes there is a reason for the increase in charges, commenting, “The rise in charges reflects what is going on in the complexity of the cars.  We now have daytime running lights, which has become mandatory. For main dealers there is a constant need to keep reskilling their technicians”.

The AA also believe that there are deals to be had with garages if you search for them.  They have also voiced concerns that these soaring costs may force motorists to cut back on essential maintenance to save money.

Director at Retail Motor Industry (RMI), Sue Robinson, defends the garages “Over the past 2-3 years garages have had to keep their rates down due to the current economic climate. It is important to note that a number of areas have to be factored in to the labour rate. The cost of heating, energy, fuel and commodities, all inflationary costs, have to be taken into account”.

This article was brought to you by Think Insurance, specialists in motor trade insurance.

Uninsured drivers costing us £30 a year

Tuesday, September 13th, 2011

The Motor Insurers’ Bureau (MIB) has released figures highlighting the real problem the UK faces with uninsured drivers.

Nearly a third of drivers in many parts of the country are driving without insurance, and costing the rest of us on average, £30 a year on our insurance premiums.

Some of the worst areas in the country have been named and shamed, with the worst offenders coming from Bordesley in Birmingham, where 30% of drivers have no insurance.

Bradford, Manchester and Halifax also feature highly on the list, with a significant number of drivers in these areas hitting the roads with no insurance.

According to Phil Gormley, from the Association of Chief Police Officers, there are actually 500k less uninsured drivers on our roads now, compared to five years ago, but he admits some parts of the country do represent a ‘challenge’ for the police.

According to the figures, 1.4 million drivers in the UK are uninsured, giving us the worst record in Western Europe.

The MIB have also revealed that 10% of younger drivers, between the age of 18 and 34 aren’t even aware that insurance is a legal requirement.

The harsh reality is that a significant number of accidents each year involves uninsured drivers, resulting in 23,000 people being injured and 160 people losing their lives.

The police have identified that there is a clear correlation between drivers who drive with no insurance, and other crimes.  If you are an uninsured driver, you are five times more likely to be involved in a road accident, flout traffic laws, or engage in other criminal activities.

The CEO at MIB, Ashton West comments on the findings “We cannot stand by and let uninsured driving continue. Otherwise, the honest motorist will keep paying the bills for the injury and damage caused to people and property”.

Mike Penning, the Road Safety Minister claims the Government is putting in place measurers to reduce the number of drivers without insurance.

But for the rest of us law-abiding motorists, this additional £30 per year on our premiums is just another addition to the ever-increasing cost of running a vehicle.

This article was brought to you by Think Insurance, specialists in motor trade insurance cover.

Top Tips for buying a car

Friday, September 9th, 2011

Consumer champions, Which? have pulled together a guide on when the best time is to buy a car.  In ten handy points, you can be wiser and smarter when it comes to making that next purchase.

  • If you are thinking of going for a second hand car from a dealership, the timing is crucial.  Forecourt space is at a premium and so dealers will want to make room for the new registration plates when they are released. So If you shop around a few weeks after the plate change, you could land yourself a bargain.  New plates come out in March and September.
  • If you are in the market for a new car, avoid the months just before the next plates are due to come out.  Buying a new vehicle in August can turn into a costly mistake with the new registrations coming out in September. Literally thousands of pounds can be wiped off the value of your new motor if you time it wrong.
  • If you aren’t too worried about having the latest version of a car, then wait until the new iteration of the model is due to be released.  The previous version might drop in price, giving you the chance to nab yourself a bargain.
  • Knowing your stuff when it comes to the motor industry could pay off.  If you know a car is due to be upgraded soon, there could be a deal to be had on the existing models.
  • If you don’t want to deal with some of the teething problems that often come with brand new cars and models, avoid buying them straight out of production.  Wait for a while until the issues have been resolved before you take the plunge.
  • If the security of a warranty is important to you, make sure you buy a car less than three years old, or go for a car that has a longer warranty like Kia.  But don’t forget, a car new enough to be within warranty, is likely to depreciate further.
  • If you can see past the high mileage, an ex fleet car can be a sound investment.  Usually found in larger car supermarkets you could find yourself driving away with a well-maintained car.
  • It stands to reason that convertible cars are pricier in the summer and likewise, you could fork out more for a 4×4 in the middle of winter.  If you can forward plan enough, buying one of these out of season could save you a packet.
  • Sounds obvious, but make sure you view a car in the daytime.  Dents and scratches can easily be hidden if it’s darker.
  • And the final word of advice from Which?….If you are looking to keep your costs down, you might want to consider sticking with your current car. Even the cost of maintaining it is likely to be less than the money you could lose on the depreciation of a newer model.

Garrath Hussey, CEO of Think Insurance comments on the advice from Which? “These tips are great for anyone looking to invest in a new car.  With so much choice it is important that motorists know what to look out for and when the best time is to go shopping.  We would also recommend that people talk to local motor traders in their area.  Often these smaller, independent traders can offer exceptional value for money, and it’s important to support smaller, local businesses in the current climate”.

Beware of Online Car Scams

Thursday, September 8th, 2011

HPI, the used car history check experts, are warning unsuspecting customers of scams online when purchasing a car.  With the Internet becoming more and more popular among people looking to buy a car, the scams are also becoming more widespread, in fact conning buyers out of millions.

The ‘virtual car seller’ is one of the scams currently doing the rounds.  This con involves an advert being placed on a motoring website or publication.  The seller lives abroad, often in Spain, and advises prospective buyers that they are looking for a quick sale, and as such the car cannot be viewed as it has already been sent to a shipping company.  The unsuspecting buyer transfers the cash over, and surprise surprise, no car materialises.

Another scam could land you with a stolen car and out of pocket.  It is believed that gangs are stealing cars and then giving them a new identity, with new paperwork and a new VIN.  While scams like this one are not exclusively online, the anonymity that the Internet offers the con artists makes it an ideal place to con those unlucky buyers.

According to the latest survey carried out by HPI, nearly half of those asked (42%) admitted they felt making purchases online does not make them anymore vulnerable than buying a product in person. Interestingly, almost 30% of those surveyed admitted that they would be happy to purchase a car online without seeing it first!

The Consumer Services Manager at HPI comments encourages consumers to take more caution when making large purchases online, she explains “The Internet can offer a wealth of deals and choice; however its relative anonymity can offer rich pickings for criminals looking to turn a quick profit. Buyers need to remain aware of the dangers and be cautious when purchasing online”.

One of the easiest ways to avoid these scams when buying a car is to carry out a simple HPI check on the car before any money changes hands.

Not only will the HPI check make sure you are not driving away in a stolen, or previously written off car, you will also be given the HPI Guarantee.  This guarantee means you will be given £30,000 reimbursement if a vehicle turns out to be cloned for example.

Garrath Hussey, CEO at Think Insurance comments on these findings, “With internet sales growing by the day, we urge consumers to use common sense when making large purchases, such as a new car.  If you are in any doubt at all, our advice is to go to a reputable Motor Trader or Car Dealer in your area to make sure your money is being well spent. It’s better to be safe than sorry.”

Further Tough Times Ahead For Motor Traders

Thursday, September 8th, 2011

Motor Traders should brace themselves for a tough 6 months, if the latest statistics from Sainsbury’s Finance are to be believed.

The figures suggest that in the period between September 2011 and February 2012 we should expect to see 28% less people in the market for a car.  Sainsbury’s have also predicted that the actual number of people will be around the 5.5 million mark, which represents a 22% drop on the previous 6 months.

Not surprisingly the amount being forecasted to be spent on cars is also set to fall, with an estimated £40 billion being spent over the next 6 moths, compared to £51 billion in the previous six-month period.

Garrath Hussey, CEO of Think Insurance, comments on the findings “If the latest predictions are to be believed, car dealers and motor traders can expect another tough six months.  The current economy has presented dealers and motor traders in the UK with some of the toughest conditions we have seen.  The cost of living in this country is having a huge impact on peoples buying behaviours and the motor trade industry has been hit hard”.

Steve Baillie from Sainsbury Finance comments on the study “After a steady increase in our index for two years, this decline is a real indication of how the economy is affecting people’s car-buying plans”

Are MoT Tests failing us?

Monday, September 5th, 2011

According to the popular motoring magazine, What Car?, MoT results can vary hugely depending on the test centre that carried out the test.

What Car? sent out mystery shoppers posing as genuine customers to six different garages with the same Vauxhall Corsa, which had previously been tested and failed by the RAC. The car had a number of faults, such as:

  • Wear and tear on the handbrake
  • Wear and tear on the exhaust
  • Wear and tear on the track rod end ball joint
  • A broken brake pipe securing clip
  • A chipped windscreen
  • Faulty fog-lights
  • Faulty registration plate

To ensure the test was consistent and fair, the Corsa was inspected both before and after each MOT test to ensure it was in the same condition for each garage.

The findings were extremely interesting.  Scarily two out of the six garages passed the car after just a simple bulb change.  While the remaining four, all failed the vehicle.  Four garages failed to notice the chipped windscreen and the broken brake clip and one didn’t pick up on the wear and tear on the track rod ball joint.

VOSA (Vehicle and Operator Services Agency) a Government agency who run the MoT system, have spoken out on the study “MoT testers must be experienced mechanics and must hold a relevant qualification. Parts of the MoT test do have to be subjective and therefore rely upon testers to exercise their engineering judgement. It is refreshing to see that, when tester discretion is included, there is a large degree of consistency between the garages in your survey”.

VOSA did go on to say that some of the findings have raised some concerns and the garages involved will be contacted.

Under the existing law, motorists must have their cars tested every year, providing it is over 3 years old. There is talk of this changing however, with cars only being tested every 2 years.  The findings from the What Car? research has resulted in many questioning whether this is a wise move.

Chas Hallet, What Car?’s Editor in Chief comments “With so much disparity between different garages, we think the Government should scrap its plans for bi-annual MoT tests and focus instead on tightening the current system to ensure motorists stay safe”.

Hallet goes on “If the current MoT system is working properly, all of the test stations we visited should have come up with the same results for the same vehicle. Not all of the faults that our RAC engineer found were simple pass-or-fail points, but we have to be concerned when some of these areas were missed altogether. Motorists should be able to rely on the expertise of the tester”.

This article was brought to you by Think Insurance, specialists in motor trade insurance.

VW launch their new city car – Up

Thursday, August 25th, 2011

At the September Frankfurt Motor Show, VW have plans to unveil their latest creation, a city car with the quirky name Up!

Some photographs have already been released giving us a sneak peak of what we can expect from this new city car.

The Up! is planned to hit the UK next year, although as yet, prices are still to be confirmed.  It is expected to be start at around £8,500.  Already experts in the world of motoring are predicting great things for this pint size car, it is expected to be VW’s biggest seller in the UK.

The Up!, which has been worked on VW for years, is going to be smaller than the Polo measuring just 354cm long!  Although VW maintain the car will still hold four adults.

There will be three versions on offer, an entry level, the comfort-oriented model and high up! the highest level available.  The car will be run on a 1.0l engine a bhp of 59-74 depending on which level you buy. The cost to run the car is expected to be extremely low, in fact under existing regulations, the lucky owners could escape having to pay for road tax and congestions charges.

This fun and compact car is expected to have a bright and colourful interior, and will come with the VW Maps and More system, which is a first.

So if you are in the motor trade, or just a keen car enthusiast, check out some photos of this nifty new car at the VW site.

Or if you would prefer to see the car in the flesh (or the metal!) you will have to wait for the big reveal at the Frankfurt Motor show.

This article was brought to you by Think Insurance, specialists in Motor Traders Insurance Policies.

New British Luxury Carmaker

Thursday, August 25th, 2011

Motor Traders, dealers and car enthusiasts are waiting with baited breath for the arrival of a new car.

A new luxury car brand, from a brand new British car manufacturer, is about to hit the market, launching at the Frankfurt Motor Show next month.

The British carmaker, Eterniti Motors, plan on taking the car industry by storm with their new luxury crossover car, believed to be called the Hemera.

Shrouded in mystery, very little has been revealed about this new brand or about the car itself.  The carmakers website describe themselves as ‘A different kind of luxury car brand.
A luxury car brand from London.
Eterniti Motors.’  In fact this was the only thing given away when a statement was released to the press announcing the arrival of the new company.

The website gives expectant motorists a sketch of the Hemera, rumored to cost somewhere between £150k and £200k and a short video to wet the appetite of car enthusiasts.

It is not currently known exactly who is behind this new brand, but a spokesperson has confirmed, “there are people with lots of experience of motorsport, luxury cars, high-performance road cars and driving experts involved”.

The spokesperson also went on to say that anyone wishing to buy the new model can expect to be given a whole host of optional extras, such as a diamond encrusted roof lining!

Eterniti definitely don’t have an easy ride ahead of them.  Entering this prestigious market will pit the brand directly against the likes of Bentley and Lagonda, already established brands at the luxury end of the market.

So for those in the motoring industry who are excitedly anticipating the arrival of this new car, all will be revealed on the 14th September at the Frankfurt Motor Show.  And for those interested in purchasing one, start saving now!

This article was brought to you by Think Insurance, the specialists in Motor Trade Insurance.

Social Media for Motor Traders

Tuesday, August 23rd, 2011

At the beginning of this month, Think Insurance shared an article on how important mobile technology is becoming in the motor trade industry with predictions from Google that by 2013 more online searches will be carried out using mobile phones than on conventional computers.

Another, increasingly important business tool for dealers is social media.  This is an area that many motor traders are already embracing, with 80% of the ‘Motor Trader Top 200 Dealers’ currently using social media sites to promote their businesses and communicate with their customers.

Recognising how valuable social media can be for a business is vital in the current economic climate we are operating in.  If dealers and traders want to stay ahead and find new and relevant ways to reach potential customers, social media must become part of their marketing mix.

On the 2nd of November a Social Media Conference will be taking place in Cheshire.  Many dealers are already signing up to attend, taking the opportunity to learn more about how to increase their online traffic and boost sales through social media sites such as Facebook and Twitter.

The event will host speakers from Google, Ford Retail Group, Marshall Motor Group and GForces to name a few. The conference will be hosted by Penny Mallory, rally driver and TV presenter.

Garrath Hussey, Chief Executive at Think Insurance urges dealers to embrace social media “Many small businesses are finding themselves struggling in this tough climate.  If motor traders want to keep on top of emerging technologies, and use tools and media that will generate new business, social media should be at the top of their list”.

For dealers wishing to learn more about social media and how it might benefit their own businesses, places are still available on the conference in Cheshire on the 2nd November.  For more details and information on the conference and how to book your place, call 020 8253 8717.

Pass or Fail – depends on where you live?

Tuesday, August 23rd, 2011

If you thought passing your driving test was purely about skills and ability, think again.  According to the DFT (Department for Transport) the place where you end up taking your test can be a huge contributing factor.

The DFT have just released a list showing those towns and cities in the UK that have the best and worst pass rates.

So where should you avoid if you have plans to take your test?  Wanstead in East London is definitely the place to steer clear of, with a whopping 71% of drivers failing their test here.  And bad luck if you live in Bradford, where a substantial 70% of people will also fail when taking their tests.

A driving instructor from East London commented to The People on why he felt the area he teaches is so tough for those taking their tests, ”The road layout can be quite tricky. Drivers can be aggressive, they go for gaps that aren’t there, overtake and generally take no prisoners”.

It will probably come as no surprise to hear if you live in a more rural location, your chances of passing increase dramatically.  Mallaig on the West Coast of Scotland boasts the best pass rates of anywhere in the UK, with just 21% of drivers failing their tests. This is followed closely by Inveraray and Islay Island.

In fact if you live in Scotland you should do well, with the top ten ‘best places to take your test’ all being Scottish towns or cities.

The DFT claim that on average 46% of people will pass their tests first time, but as the lists show this can be a different story if you are lucky or unlucky enough to live in a certain part of the country

So when you are planning your lessons, and perfecting those all important manoeuvres, don’t forget you may have the odds stacked up against you before you begin!

Have a look at the lists below if you want to see where you stand the best chance of passing!

The best places to take your test
Centre First timers % of failures
Mallaig 14 21.4
Inveraray 34 23.5
(Argyll)
Islay Island 36 25
Isle of Skye 32 25
Kingussie 48 29.2
Lochgilphead 102 29.4
Benbecula 44 29.5
Island
Salen 27 29.6
(Island of Mull)
Campbeltown 68 33.8
Duns 97 34

The worst places to take your test
Centre First timers % of failures
Wanstead 4,826 71.5
Bradford 753 70.3
(Thornbury)
Bradford 2,486 70.2
(Heaton)
Heckmondwike 2,557 69.1
Bradford 2,104 68.6
(Eccleshill – closed)
Leeds 3,391 67.3
(Harehills)
Brentwood 1,950 67.3
Goodmayes 6,086 66.1
Hamilton 2,505 65.7
Barnet 4,315 65.5

This article was brought to you by Think Insurance, the specialists in Motor Trade Insurance.