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Autotrader Q&A – Recalls, Hybrids, the VAT Rise & the 60 Plate

Friday, August 27th, 2010

I sat in on a Twitter Q&A (#AskAT) with Auto Trader Used Car Editor Stuart Milne this morning and picked up some interesting tips and information that answers some questions I received recently. Here goes – in no particular order.

Recalls

Q: Are recalls always dangerous problems & is the fix free?

Autotrader: Not always; they’re usually safety related, but not always dangerous – I had a car recalled for a new radiator cap!

(I can add that manufacturer recalls are normally fixed for free)

Q: If you are the second owner (e.g. you buy a nearly new car) how will you know about recalls?

Autotrader: Take a look at www.dft.gov.uk/vosa – you can search for recalls affecting the model you’re buying (the link to vehicle recalls is on the right under “Do It Online”)

Hybrids

Q: I’m wondering about buying a hybrid but not sure whether to wait a bit longer for newer models/more choice.

Autotrader: They’re getting better all the time. Peugeot 3008 diesel electric hybrid will launch soon – looks very interesting – see here for more details: http://bit.ly/98nNNl.

VAT Rise & Used Car Prices

Q: One of my readers asked whether car dealers will pass on the VAT rise in the new year or absorb it with discounts?

Autotrader: More on this at http://bit.ly/aOVCtr – I’d expect used cars to increase in price slightly.

(It’s worth having a read of the link – but the main point is that VAT is charged when a new car is delivered, not when it is ordered – so if you order a new car before the VAT rise but it isn’t delivered until after the VAT rise in the new year, then you wil pay 20% VAT anyway…) On top of this, many manufacturers have long delivery times at the moment.

The 60 Plate

Q: Is it too late to get a 60 plate car on 1st September?

Autotrader: Any new car ordered now won’t be delivered for a few weeks, but its worth talking asking dealers about it.

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DVLA Launches New Vehicle Registration Document (V5C)

Friday, August 13th, 2010

The DVLA is launching a new version of the V5C vehicle registration document with a red front page (known as the logbook), starting from Sunday 15th August 2010. The change is primarily being made because a huge number of blank, unissued V5C documents were stolen in 2006. Criminals have been using these to give stolen cars new identities, making it harder for second-hand car buyers to recognise ‘dodgy motors’.

The new document also contains a clear reminder that the V5C document is not proof of ownership. The V5C document records the name and address of the registered keeper of the vehicle - not necessarily the owner. It’s important to understand the difference. Proof of ownership can be proven by an original purchase receipt.

The new format V5C can be easily recognised by its red front page. The inside pages of the document are largely unchanged. You can see images of the new document on the DVLA’s website by clicking here.

All new cars registered from 1st September 2010 will have the new format documents and all V5Cs issued for cars that are already registered (when you change address, for instance) will also be in the new format.

If you have a V5c in the current format, you don’t need to do anything. The DVLA will only be issuing new-format V5C documents for newly-registered cars and to people who need to update their vehicle’s registered details.

Car Registration Document (V5C) Tips:

Never, ever buy a car without a valid, accurate V5C - check the seller’s name and address and the car’s VIN number and registration number against the document.
Always check the serial number of the V5C when you buy a used car. If the serial number on the V5C is in the range BG8229501 to BG9999030 or BI2305501 to BI2800000 then the document (and probably the car) is stolen – don’t buy the car and notify the police.
Valid V5Cs (new and old designs) have a ‘DVL’ watermark on the front page – hold it up to the light and you should be able to see this.
If any part of the V5C looks like it has been tampered with or is missing, don’t buy the car. There is no valid reason for making changes to a V5C document – whenever changes are required, the DVLA issue the registered keeper with a new, updated copy of the document.

For more useful advice on buying a used car, check out our Simple Car Buying Guide.

Tags: car registration document, DVLA, log book, logbook, registered keeper, V5, V5C
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Insurance Fronting – a.k.a. “I’m On My Mum’s Insurance”

Tuesday, June 8th, 2010

A whopping 20% of drivers aged 17-25 have committed a motor insurance fraud known as ‘fronting’, according to research by the Motor Insurers’ Bureau.

Fronting is where someone falsely declares that they are the main driver of a vehicle and takes out an insurance policy in their name, when in fact another driver is the main driver of the vehicle.

The most common scenario where this happens is with young drivers. A parent might take out car insurance in their own name for their child’s car and add their child as an additional driver on the policy – even though the child will be the main driver of the car.

Many drivers believe this is a legitimate loophole – but it isn’t. It’s motor insurance fraud.

According to the MIB, if, in the event of an accident, a driver’s insurance company discovers that the policy is being fronted by someone other than the main driver, they may refuse to pay out damages to the insured and seek to recover the costs claimed by the third party from the insured driver. In other words, the insurance may be invalid – so it’s also possible that the police would seek to fine or prosecute those concerned for driving without valid insurance.

On top of all of that, the young driver who is trying to cut the costs of their insurance is failing to do so – because they won’t build up any no claims discount unless they are the main policy holder.

One much better way to save money on insurance is for newly-qualified young drivers to take the Pass Plus course after they pass their test and then find an insurance company that will offer a discount to Pass Plus-qualified drivers. Some insurance companies offer up to 30% discount for this (click here for a quote from a company that recognises Pass Plus).

According to the MIB, another approach is find insurance companies that offer quickie no claims discounts – basically, drivers can get a full year’s no claims bonus in less than 12 months – sometimes as few as six months. (I don’t really know how this works, but it does, apparently).

Buying your car insurance directly online can help, too – some insurers offer cheaper prices online than over the phone. I’ve experienced this myself, so it’s worth a try.

Above all, choose a car that’s cheap to insure – something relatively modern, low powered, ‘normal’ and not modified – at all. Modifications make insurance premiums head for the stars – not a good idea.

Tags: car insurance, insurance fronting, motor insurance, Pass Plus, young drivers insurance
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London Congestion Charge Changes – Will They Affect You?

Friday, May 28th, 2010

London Mayor Boris Johnson has announced his intention to introduce some major changes to the London Congestion Charge. The goal of the changes seems sensible – to ensure that the lowest-polluting cars gain exemption from the charge, regardless of what technology they use to reduce emissions.

The proposals are that all cars – regardless of fuel or engine technology – that emit less than 100g/km of CO2 and meet Euro V emissions standards will gain 100% exemption from the London Congestion Charge. On the other hand, hybrids that emit more than 100g/km will lose their current exemption.

The changes mean that a whole range of ‘regular’ cars such as the Ford Focus Econetic and Skoda Fabia Greenline will gain exemption – where before they would not have done due to their diesel engines.

Transport for London say that the plans are motivated by the fact that “The greener technology in conventional vehicles has now overtaken many of those that use alternative fuels.” Some more polluting cars gain exemption from the charge purely because of their technology – not because they are the lowest-emitting cars available.

These proposals seems sensible and it’s good to see that common sense seems to have triumphed for once – let’s hope that it continues that way where road charging is concerned. Other changes included in the proposal are that the westward extensions to the zone will be scrapped – no doubt welcome news for many more motorists. Less welcome news is that the charge itself will be increasing from £8 to £10, or £12 if you pay the day after.

These plans are under consultation until 2nd August 2010 – visit the Transport for London website for full details and to contribute your views.

Tags: Boris Johnson, LCC, LEZ, London Congestion Charge, Transport for London
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Underinflated Tyres Waste £4.6bn In Fuel Each Year

Tuesday, April 20th, 2010

car tyre tread I have mentioned the importance of keeping your tyres correctly inflated before – well here’s proof.

Tyre manufacturer Bridgestone conducted a massive survey, checking the tyres of 52,400 cars in 15 EU countries. The results surprised even a tyre pressure obsessive like me – 82% of the cars checked had underinflated tyres. From this, Bridgestone calculated that 4 billion litres of fuel (£4.6bn worth) is being wasted by European drivers every year – just because of underinflated tyres. That’s equivalent to 9.3 million tonnes of CO2 – not good.

Of the 52,400 cars surveyed, 26.5% were seriously underinflated (more than 7psi below the manufacturers’ recommended pressures) and 7.5% were downright dangerous, at more than 11psi below recommended pressures. Tyres that are this badly underinflated will not provide the stability or grip that correctly inflated tyres provide and will be much more prone to blowouts and sudden punctures.

Finally, Bridgestone found that a frightening 17% of those surveyed had tyres with a tread depth below the legal limit of 1.6mm. Tyres that are this badly worn only provide a fraction of the grip that new tyres give, especially in wet conditions. These people are dangerous – make sure you’re not one of them:

For more information on checking your car’s tyres, click here for our tyre safety guide.

Tags: Bridgestone, inflating tyres, tires, tyre pressure, tyres, underinflated tyres
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Road Tax Or Pay Per Mile – What Would You Choose?

Friday, April 16th, 2010

How would you fancy owning a share of the UK’s road network and paying for every mile you drive, while paying no road tax?

That’s what the Social Market Foundation is suggesting as a way of combating Britain’s ever-worsening congestion problems (just think about Monday morning on the M25 or Friday night on a bank holiday weekend…).

The SMF reckon that each of us would receive a share of the road network that was worth around £1,500. We could keep it and (theoretically) receive dividends each year (just like company shares), or we could choose to sell it to someone else and pocket the cash. In the meantime, we’d be paying around 10p per mile for each mile we drove in road tolls.

The basic argument put forwards by the SMF is that at present, road tax doesn’t reflect our usage of the road network – people who drive a little pay too much, while people who drive a lot pay too little. (Of course, so-called road tax is not actually a tax on roads, it’s a tax on vehicle ownership, but in most cases it doesn’t make much difference).

Paying per mile would give people an incentive to share cars, drive less and so on. If the per mile charges were adjusted to be lower at off-peak times, there would also be an incentive for people to adjust their travel patterns to avoid busy times wherever possible. This would reduce congestion and even out usage of our roads. There’s also an important environmental aspect – CO2 emissions on free-flowing roads are much lower than on congested roads.

So far, so good. However, I don’t believe that many people would be better off under the scheme proposed by the SMF. Their figures seem skewed to the low-mileage driver. They claim an average mileage per driver of just 5,100 per year and assume that spare money would be paid back in dividends to road users each year – rather than being invested in ever-more road improvement projects.

To sum up, I’m sold on the concept but I don’t believe I’d save any money. However, it’s possible that to save the environment and find a solution to road congestion, we will all just have to pay out a little more.

What do you think? Leave a comment below and let me know.

Tags: car tax, pay per mile, road tax, road tolls, SMF, Social Market Foundation, VED, Vehicle Excise Duty
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The Scrappage Scheme Is Over – 372,401 Cars Scrapped

Wednesday, April 14th, 2010

On the 31st March 2010, the UK’s car scrappage scheme officially came to an end. It was active for eleven months, during which a maximum of 400,000 scrappage orders were available. However, it pretty much ran out of steam in 2010, with more than 25,000 scrappage orders unused when the scheme closed, despite February’s original closure date being extended to the end of March.

Scrappage does seem to have done something to help lower emissions, however. The average CO2 emission level of cars bought under the scrappage scheme was 132.9g/km – almost 10% lower than the average for all new cars bought in the UK and 27.1% lower than the average for the cars which were scrapped.

Of course, these lower emissions figures don’t take into account the CO2 emissions generated by the manufacture and delivery of all of these new cars, so it’s hard to work out whether there was an overall reduction in CO2 emissions or not…

Another possible question mark is over who benefited from the money. Many of the cars bought under the scrappage scheme were not made in the UK, and some weren’t even made in Europe. This makes you wonder just who benefited the most from the scheme, financially.

Did you buy a car under the scrappage scheme? What are your thoughts on it – should it have been restricted to cars made in the UK or Europe?

Leave a comment below and let me know – I’d love to hear what you think.

Tags: scrappage scheme
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Will Your Car Tax Rise or Fall in 2010?

Tuesday, April 13th, 2010

The government has changed the car tax (a.k.a. Vehicle Excise Duty/Road Tax) bands again this year. They’ve also introduced a ‘showroom tax’, which is basically a different rate of tax that you pay for a new car’s first year.

The idea behind the changes is to encourage people to buy new and used cars with lower CO2 emissions – but many owners of 3-6 year old cars may find that their car tax goes up as a result, too. To help you avoid any unpleasant surprises when your tax renewal letter arrives in the post this year, I’ve summarised the changes below and compared them with the current rates. I’ve also listed some popular new models in each band – scroll down for these.

(In case you can’t be bothered to look at the figures, here’s the deal. If your car emits less than 140g/km of CO2, your car tax will be cheaper in 2010 than it was in 2009. If your car emits more than 150g/km of CO2, your car tax will cost more in 2010 than in 2009.)

Remember, these rates only apply to cars registered after 1st March 2001 – older cars are subject to different rates:

VED Band	CO2 emissions (g/km)	2009/10 Standard rate (£)	2010/11 First year rate (£)	2010/11 Standard rate (£)
A	Up to 100	0	0	0
B	101-110	35	0	20
C	111-120	35	0	30
D	121-130	120	0	90
E	131-140	120	110	110
F	141-150	125	125	125
G	151-165	150	155	155
H	166-175	175	250	180
I	176-185	175	300	200
J	186-200	215	425	235
K*	201-225	215	550	245
L	226-255	405	750	425
M	Over 255	405	950	435

*Includes cars emitting more than 225g/km of CO2 that were registered between 01/03/2001 and 23/03/2006.

Which Cars Are In Which Bands?

After reading all of this, you might be wondering which cars fall into which bands. Here are a few popular examples, taken from manufacturers’ current model lineups. All models have manual gearboxes unless specified:

Band A – Ford Fiesta ECOnetic
Band B – Ford Fiesta 1.4 TDCi, Toyota Yaris 1.4 D-4D (diesel)
Band C – Ford Ka, petrol and diesel models, Renault Megane dCi 106 models, BMW 116d
Band D – Renault Clio 1.2TCe (petrol), Volkswagen Passat Bluemotion 2.0 TDi 140
Band E – Peugeot 3008 HDi 110
Band F – Volkswagen Passat 2.0 TDi 110
Band G – Renault Megane 1.6 petrol models
Band H – Ford Focus 2.0i Duratec (petrol), BMW 330i SE coupé
Band I – Nissan Qashqai 2.0 4×2 (petrol)
Band J – Renault Espace dCi 150 models
Band K – Toyota Hilux 3.0 diesel
Band L – Ford Kuga 2.5l petrol AWD, Volkswagen Passat 3.6 V6 (petrol)
Band M – Nissan Pathfinder 2.5dCi 171, BMW M3 coupé

Please note: All details correct at the time of writing (E&OE). Car manufacturers are constantly tweaking the emissions of their popular models in an effort to have them classified in lower tax bands. Check before you buy.

Tags: car tax, road tax, UK, VED, Vehicle Excise Duty
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