Jul 13, 2017
Midland Express Limited (MEL), which operates the M6 toll connecting M6 junctions 3a and 11a, has announced that it will be increasing the cost of its daytime toll charge by 40p. It is the first increase for five years. A one-way trip for car drivers will rise to £5.90 at the main tolls, and £4.40 at the local tolls. Evenings and weekends will be unaffected. Prices for Class 5 vehicles (i.e. HGVs) will be frozen at £11. This is to encourage more large vehicles onto the toll road, something that MEL has struggled to achieve due to the cost.
Carrying 53,000 vehicles per day and stretching for 27 miles, the M6 toll road, originally called the Birmingham North Relief Road, was opened in 2003. It aimed to ease congestion on the M6 and help drivers escape the traffic around Birmingham. However, it has consistently failed to meet the 75,000 vehicles per day expectation it had when opened.
White elephant or a good investment?
Costing a massive £900 million to create, and built to withstand 100,000 vehicles per day, the toll road does not seem to have attracted the amount of traffic that it set out to divert away from the M6. It has proven to be an expensive alternative that is not particularly popular with drivers, with toll fares rising from the £2 per trip cost at launch in 2003 to almost £6 today.
In addition to this, it has caused significant and irreversible effects on the environment, increasing noise, congestion and air pollution in the local area. Many now believe that funding for bus or cycle options would have been a far better alternative for reducing the volume of traffic, as well as being kinder to the environment.
One reasons the M6 toll road has not been as successful as predicted is the post-2008 financial climate. Another is higher fuel prices. Raising the cost of using the road has also pushed drivers away in the past (as anyone who understands economics would expect!). Putting incentives in place to attract more people to use the road may have been more effective. Lowering the cost for HGVs to below £10 could have been a more better approach than freezing prices, for example.
MEL justifies the price rise
Prices for the toll road have not increased since 2012, due to sensitivity around the economic climate and financial stability for both the public and companies. However, MEL has said that the price rise needs to happen so that it catches up with inflation. This is despite people’s wages not seeing the same increase. It means that locals are no better off financially, but are still expected to pay higher charges.
The news comes after it emerged that the toll road has finally started to make a profit, following years of losses. It seems to coincide with plans for more roadworks on the M5 and M6, which are sure to encourage more drivers to use the M6 toll to escape the inevitable congestion. The price hike is occurring just in time for MEL to benefit from this.
HGV toll price freeze
The toll charge for HGVs has been frozen in a bid to tempt more haulage companies to use the toll road. The measure aims to lure them away from the already busy M6. However, at £11 per journey it doesn’t seem that many companies are happy to pay such high fees, preferring to use the money elsewhere. One company went so far as to say that it wouldn’t use it unless it was free.
The fundamental problem with a toll road trying to attract HGVs is that there a free motorway alternative. That motorway is more congested, but haulage firms are more concerned about saving £22 per truck than they are about being 20 mins later for their deliveries. It seems that MEL’s attempt to attract more trade by freezing prices is at best optimistic.
With this new price increase expected to deter even more motorists from using the M6 toll road, it is questionable whether it will ever start making the money that it needs to in order to repay the costs of construction and maintenance. This suggests that those who use it may face even steeper price rises in the future.
What do you think about the M6 toll road increasing prices for all vehicle classes except HGVs? Has this encouraged you to use it more or angered you and made you less likely to use it? Let us know in the comments below.
Jul 12, 2017
Many of us were hoping that falls in the wholesale price for fuel in May and early June would mean that we’d see a fifth successive decline in fuel prices in June. We were not disappointed. However, although the “cheap fuel party” continued in June, there are some indications it may finish in July, followed by steady price rises during the second half of 2017.
UK fuel prices have been slowly declining since February. June’s average price for unleaded fell once more, to 115.9 pence per litre, while diesel fell to 116.8 pence per litre, a drop of 0.8 pence for unleaded, 1.2 pence for diesel from May. This is welcome news for drivers, as rises in road tax and insurance premiums hit them harder than ever before.
In comparison to the same time last year, prices now are 4.4 pence per litre higher for unleaded and a whopping 5 pence per litre higher for diesel. Go back five years to 2012 and prices were 133.0 pence per litre for unleaded and 138.4 pence for diesel. We are certainly better off now than in June 2012, but not compared to June 2007, when prices were 97.0 pence per litre for unleaded and 97.4 pence for diesel before the financial crash in 2008.
(Credit – Pixabay)
Oil price rallies in second half of June
Oil prices rallied in the second half of June, so one would expect average fuel prices to stay the same or even increase in July. It would be the first time since January that prices have increased. Many experts believe that the price of crude oil will rise above $50 a barrel and stay there, something which has not happened since December 2016.
Victory in Iraq against ISIS and the Syrian cease-fire will certainly bring stability to the region, enabling oil producers to have more confidence in their output. There are still issues with US shale oil producers, as well as Nigerian and Iranian oil producers that are not adhering to OPEC’s production targets. There are some indications these supply factors will be addressed in September. If they are then oil prices will rise, as will the cost of fuel at the pumps.
The current picture
In June, supermarkets led the way with price reductions. ASDA introduced a cap at the pump for its petrol stations across the UK. Within a day, all the other big supermarket retailers followed. The large petrol retailers did the same a few days later.
This meant that by the middle of the month, the prices across the board from Asda were 111.7p a litre. Also offering a relatively consistent price was Tesco, with most of its fuel priced between 111.9p and 115.9p, depending on where in the country you were located. Sainsbury’s was the most variable of the big four supermarkets, with fuel prices varying from 111.7p to 116.9p regionally.
Petrol retailer v supermarket pricing
The picture is somewhat different from petrol retailers. On the same dates in June, based on a sample of ten stations for each brand, ESSO’s prices varied from 113.9p to 118.9p across its different stations. Shell had an even wider variation, with prices as low as 114.9p and as high as 122.9p.
Why is there such a great variation in prices from petrol retailers? One reason is that they vary their prices on an almost daily basis to reflect what is happening in the local competitive environment. They also factor in events taking place in the area local to each station, such as large events like football or music concerts.
Supermarkets tend to have a narrow spread of pricing between their stations and are far more uniform in their pricing changes. They compete less against the local market and more against other supermarkets, as their goal is to lure more shoppers to the tills and cheap fuel is a driver for that. ASDA leads the way with its price guarantee, a price cap on all 308 UK stations, which tends to act as the benchmark that other supermarkets set their prices against. You do get outliers, though. Sainsbury’s in particular comes up with prices that are often the cheapest supermarket prices in the UK, along with Tesco on premium fuels.
How can I always get the best fuel price?
While you can’t guarantee the best price (unless you are a member of Costco and use its six sites in the UK), you can follow a few simple steps to stay informed, be aware of pricing changes and know what to avoid:
1. Use the daily PetrolPrices alert email to monitor pricing and see daily changes
2. Only fill up £20-30 at a time to protect against sudden price changes
3. When prices start changing, wait 24-48 hours before filling up
4. Try to be aware of local events and understand how this may affect price
5. Don’t buy fuel on major trunk roads or at motorway services
6. If an ASDA or Costco is nearby, prices will be low, as everyone competes against them
7. Keep your eye out for independents that compete 1-2p lower than the supermarkets
8. If based in an affluent area, check prices in less affluent areas nearby, it can be as much as 3 pence less per litre
9. Clusters of supermarkets close together also usually mean lower prices
10. If you’re in an unfamiliar location, use the PetrolPrices app to help you find the cheapest fuel
What do you think about price changes in June? Do you think the party is over and prices will go up in July? Let us know in the comments below.
Jul 12, 2017
Department for Transport (DfT) data has shown that 80% of drivers are turning a blind eye to the 20mph speed limit. According to official figures, the majority of these motorists are travelling at 21-25mph, with 15% exceeding 30mph and 1% clocked at over 40mph.
The DfT’s data was sourced from nine 20mph areas featuring free-flow conditions and no traffic-calming measures. This is not typical of many 20mph-limited areas across the country. Still, the figures make for sobering reading, especially when compared to road charity Brake’s recent poll, which stated only 52% of drivers were breaking the 20mph limit.
Testing ‘the limit’ of drivers
The often controversial speed limit was introduced in 1991, with 250 areas included across UK roads by the end of decade. In 1999, local highway authorities were allowed to roll out the 20mph limit without needing to apply for permission from central government, which saw an explosion of the limit in many cities and towns. Most recently, some authorities have set 20mph as the standard limit for residential streets, including in Warrington, Hackney and Oxford.
It’s this seemingly indiscriminate approach to 20mph deployment that some motoring groups believe may be causing the problem. The RAC Foundation’s Edmund King explained to The Times newspaper:
“These statistics indicate that blanket 20mph speed limits aren’t particularly effective. Where they are targeted, like outside schools these lower limits work because people can see the point of them. But if 20mph limits are simply imposed over a whole area, people just don’t believe in them and it’s no surprise they then fail to comply.”
The wrong end of the stick?
Others though argue that the goal of the limit isn’t to get motorists driving under 20mph. The AA’s Luke Bosdet told the Daily Telegraph,
“The target is to get people driving below 30mph in these areas. That’s what the 20mph limit is clearly for, and in that sense as far as we’re concerned it’s working.”
He does concede though that how the 20mph limit is rolled out can create issues, arguing that “the problem is a knee-jerk reaction to have these zones everywhere. If local residents want them, they should get them, but the big question is whether they are being consulted. If they’re not being consulted you’re not going to get adherence.”
Adherence is not only a problem for residents or motorists, but law enforcement as well. For instance, in Brighton and Hove the local authority introduced a far-reaching 20mph limit in many areas of the city in 2013. However, Sussex Police went on the record stating that it would not allocate any extra resources to tracking down offending drivers, instead believing that “it’s important that roads are carefully designed to ensure that drivers habitually self-enforce when it comes to speed limits.”
Exception, not the rule
The Sussex Police are the exception to the rule; motorists should expect 20mph limits to remain in place and be enforced. Even after its own startling findings, the DfT still backs the widespread use of the limit:
“Research shows that 20mph zones in the right areas can save lives and we have made it easier for councils to introduce them. It is for councils to set speed limits in their area and police to decide how best to enforce them.”
Are 20 mph limits essential to the safety of our busy streets? Or are local authorities simply rolling them out to boost their budgets through fines? Let us know your views below.
Jul 12, 2017
Headlines in the last few months have indicated that the days of diesel were coming to an end and that diesel vehicles were the main cause of pollution problems around the UK. However, an announcement by tyre company Continental has given hope for diesel fans that it might not be dead yet.
Super diesel technology developed in Germany by Continental indicates that auto-manufacturers will soon be able to make cars that deliver emission levels lower than current EU limits. So what is super diesel technology and how does it work?
Big announcement
Continental has said that its new ‘Super Clean Electrified Diesel’ technology can reduce real world emissions by some 60% and is the way forward for a cleaner, less polluting diesel fuel. Engineers at the company have developed a new after-treatment using electricity, which can reduce NOx emissions by almost two thirds under real world driving conditions. The company has said it is already in discussions with manufacturers about using the technology in their vehicles.
Johannes Dreschel, the development engineer for Continental, explained that the key for the new system was the use of an electrically heated catalytic converter that makes use of a 48V electrical system. Normally, a catalytic converter needs the engine to bring it up to temperature. However, this new tech uses electricity from the 48V system to get the power it needs to work.
Why this makes a difference
Why should this make a difference? Continental explains that because the catalytic converter uses electricity rather than the engine, it can heat up much faster. This means it provides a much more efficient reduction of NOx emissions.
Some current converters have an electronically heated element that uses a 12V system but the new larger, 48V system allows the devices to work far more quickly. In addition to using more power, the company’s engineers have also made subtle amendments to the after-treatment system. These include injecting the AdBlue urea solution to the exhaust immediately, without the use of a separate mixer (as is currently common practice).
Testing the process
In testing, the company took an existing Volkswagen Golf and changed the system from a 12V to a 48V one. It then tested the car under the forthcoming real driving emissions (RDE) cycle. The results showed 60% lower NOx levels than in the standard vehicle without the modifications. It also saw a 3% fall in CO2 emissions and a 4% increase in overall fuel economy.
Another live test involved taking the modified Golf onto Continental’s German test track. A Portable Emissions Measurement System (PEMS) was fitted to the back of the car in order to track the emissions. The car was then taken for a test run, including reaching motorway speed levels. The NOx emissions were recorded at 60mg/km, which is well below the current EU limit of 80mg/km.
Brighter future?
Dreschel strongly believes that diesel cars have a role to play in the future of motoring, but admits that they need to be cleaner. The technology developed by Continental is one of the ways that diesel vehicles can do this, allowing diesel to have a future.
The technology helps to highlight that there are ways to make diesel cars friendlier to the environment. Combined with measures to look at other causes of emissions, the situation of premature deaths from poor air quality could be controlled. This could be achieved without the need to eliminate the diesel vehicle (as some campaigners have suggested would be required).
Governments and pressure groups are pushing ahead with a one-dimensional approach to tackling pollution through banning petrol and diesel vehicles and pushing for electric charge vehicles (EVs). The fundamental problem with this is it will take years for EVs to replace combustion engines. A more pragmatic approach would be to make diesel and petrol engines as clean as possible while rolling out EVs, which do appear to be the future. At present, however, it seems that demonising combustion engines is easier than finding solutions to drastically cut emissions.
What do you think about this super diesel technology? Do you think it should be rolled out as soon as possible or even retro-fitted onto vehicles at no charge? Let us know in the comments below.
Jul 12, 2017
Research by the RAC Foundation has revealed that payouts for crash-related personal injuries are dramatically higher in Britain than in the rest of Europe. This is leaving UK drivers paying far more for their insurance premiums than their European neighbours.
To meet the long-term care costs of someone who has suffered catastrophic injuries in a road accident, compensation payouts can be as much as £10 million in Britain. By comparison, Germany and France offer up to £6 million and Sweden pays out as little as £600,000. So why is there such a disparity?
The key factor is how the medical and care costs are divided up between the state and the insurer. In some regions, such as Scandinavian countries, the onus is on the state to take on the lion’s share of the costs. This helps keep insurance costs down for the country’s motorists.
And now the really bad news…
In Britain though, our already high insurance costs are set to increase further as the government continues to ‘evolve’ the way in which personal injury payouts are calculated. Traditionally, compensation for injuries is based on loss of earnings and how much the cost of care is predicted to be over the victim’s lifetime. This figure also takes into account the predicted long-term interest – the ‘discount rate’ – that the injured could earn on that money. This was typically set at up to 2.5% and would be factored in when calculating the payout.
In early 2017, however, the government dramatically scaled the discount rate down to -0.75%, a significantly lower rate that has had the knock-on effect of insurers themselves now having to pay out more to victims. Now factor in a rise in insurance premium tax from 10% to 12% last month, plus the effect of bogus whiplash claims on insurance prices, and it’s created a perfect storm for drivers who are now experiencing rocketing insurance premiums.
The true cost of motoring
According to price comparison site MoneySupermarket, the cost of the average insurance policy is up from £474 in 2015 to £562 in 2017. It’s perhaps unsurprising that young drivers are being hit the hardest, with their average policy price now estimated at £1,322. Such increases could have serious ramifications beyond motorists’ bank accounts, as the RAC Foundation’s director, Steve Gooding, explains:
“Everyone should pay a fair price for insurance, but if people are priced out of the market, the danger is they choose to drive uninsured and that’s a risk to us all.”
Dealing with rising insurance costs
While rising prices for insurance premiums are set to continue, drivers can take steps to drive down costs. For instance, more and more young drivers are signing up to telematics technology that insurers install in their cars. These ‘black boxes’ monitor the motorist’s driving behaviour, such as speeding or excessive braking. According to research by telematics provider Ingenie, this helps on two key fronts:
• It reduces the number of crashes; one in five young drivers is involved in an accident within six months of passing their test. With telematics fitted, this figure drops to one in eight.
• It reduces insurance premium costs; installing the tech could see a reduction of up to 20% in premium prices for young drivers.
Adopting pay-per-mile insurance
While black box technology can offer some solace for cash-strapped motorists, what about those of us who only drive low mileages each year? One solution being touted by start-up company By Miles is a pay-per-mile premium. With a launch date set for later this year, the company will offer those who only use their cars occasionally the chance to benefit from lower premiums.
Using telematics, the driver will be shown the cost of their journey at the end of each trip via a smartphone app, with a bill sent out each month. Actual pricing has yet to be confirmed, but with insurance costs set to increase further in the months and years ahead, such schemes could well become the norm for the industry, not the exception.
Perhaps one day we’ll even end up with the ability to make pay-per-mile comparisons for each and every journey, much like savvy motorists who currently use petrolprices.com to hunt out the lowest fuel prices in their area. Time will tell.
Who do you feel is to blame for the current sky-high costs of insuring your vehicle? Is it insurers milking their customers? Or is the government exacerbating the situation? Let us know your opinions below.
Jul 6, 2017
Swedish automotive brand Volvo has announced that it will be the first mainstream car brand to cease production of combustion engines powered solely by petrol or diesel. The landmark announcement stats that from 2019 onwards, Volvo will only produce electric charge or hybrid vehicles. The RAC Foundation believes this could be the “spark which turns modern motors electric.”
Volvo is owned by Chinese firm Geely, which plans to launch five electric cars under the Polestar brand between 2019 and 2021. It has yet to make any electric cars but it already has four hybrid cars available globally.
Volvo will continue to provide service repair and support for diesel and petrol vehicles – the only change is that it won’t launch new cars with combustion engines.
(Credit – Pixabay)
Volvo takes the lead again
Volvo has a long history of being a pioneer in the automotive industry. Widely regarded as the gold standard for driver safety, the company invented the three-point seatbelt in 1959. This is now fitted as standard across almost all road cars. In 1967, Volvo invented the first child-friendly car seat and its crash test safety record has become the benchmark for the automotive industry as standard best practice.
The Volvo announcement comes just before Tesla is to launch its fully electric Model 3, a £27,000 saloon car pitched squarely at the mainstream car market. Previous Teslas have been out of reach financially for most drivers, with prices starting from around £50,000. While Tesla has been desirable for the few, its new model is trying to compete directly against the major automotive companies’ combustion engine cars.
The real battle will start in a year’s time, when the Model 3 will be available to buy in the UK. Volvo is simply the first firm to step in this direction, with many more automakers expected to follow suit in the next few years.
Britain’s infrastructure not ready
While all these changes are certainly exciting, and the promise of a cleaner, greener future is good news, the reality today is that Britain is not ready to cope with a massive increase in electric cars. The 2017 Queen’s Speech contained the Driverless and Electric Car Bill, which will make it compulsory for petrol forecourts to contain electric charge points, but there is no detail beyond that.
Of the current 11,000 charge points in the UK, only 800 are super-fast charge points. Additionally, there are still issues with both the range of electric cars for long journeys and the truth of how many miles an electric car can deliver on one charge, as this is often at odds with the manufacturer’s claims.
Charlie Elphicke, MP for Dover and Deal, comments,
“The decision by Volvo is a watershed moment and underlines the urgent need to be ready and prepared for an electric future. But to make that happen we need to make sure we have the fast charging points and infrastructure to make these cars practical for families travelling up and down the land.”
Creating the infrastructure to support electric car usage cannot be achieved solely through the Government ordering petrol stations to have electric vehicle charge points. It must make financial sense for the private sector to front up the cost to do it in the first place. There are no more than 150,000 electric cars on the roads in the UK today, and while this figure is doubling every year, it’s dwarfed by the 45 million internal combustion engine vehicles on the roads. Analysts predict that it will take until 2050 for electric cars to make up 50% of the UK vehicle market.
Driverless problems with kangaroos
Volvo is also leading the way with driverless technology. Its vehicles were used by Uber to trial driverless car technology first in Pittsburgh and now in other parts of the world such as Australia.
Although the driverless system was found to successfully detect large animals such as deer, elk, and caribou, a problem was discovered when the car was tested in Canberra, Australia, due to the unusual way that kangaroos move. Their jumping motion means that they look further away when they are in the air than they do when they are on the ground, which confuses the system when it detects them hopping up ahead.
This issue was found during the development and testing stages, which is why Volvo tries the cars out in as many situations a possible, to ensure that all bases are covered before they can be deemed as safe to use on the roads (which Volvo expects to be in 2020).
90% of collisions involving a car and an animal in Australia include a kangaroo, so this is something that needs to be remedied before the driverless Volvo is released there, to ensure the safety of those driving on Australia’s roads.
What do you think of Volvo’s announcement? Is this the death knell of the internal combustion engine? Can we cope with the increased demand in electric? And is it as environmentally as sound as it claims? Let us know in the comments below.
Jul 5, 2017
A £6.1 billion programme of road improvements has been announced by Transport Minister Jesse Norman as part of the £23 billion already earmarked for upgrading England’s road network. The ambitious programme is designed to help road users by reducing journey times, driving down congestion and ramping up capacity on key roads.
Over the next six months, the money will help fund 55 road improvement schemes, including opening eight roads, consulting on ten and finalising plans for 29 others. Major projects include adding capacity to sections of the A1 in Northumberland and at the Colchester bypass. Improvements are also expected at Junction 19 of the M6. There will also be an upgraded link between the Port of Liverpool and the motorway, along with a ‘new strategic corridor’ to the south-west, via the controversy-dogged A303. The route for the new A19 Downhill Lane junction has also been published.
Facing the road network’s future
Unveiling the funding programme, Jesse Norman said,
“Road users across England should soon be seeing the benefits of these improvements in their daily lives, which are designed to link people better with their jobs, friends, family and local amenities, as well as connecting businesses with customers.”
“Over the next six months we expect to roll out our vital upgrade plan — taking next steps on £6.1 billion-worth of schemes and seeking to hear from local people, organisations and businesses to help shape our plans and ensure they benefit local communities.”
The £6.1 billion follows on from the government’s allocation of £1.2 billion in January, a figure that was roundly criticised by councils at the time for not being enough to improve England’s struggling road network, as local authorities struggle to clear a £12 billion backlog of road repairs. The funding commitment will also help deal with the National Audit Office’s claims that decisive action is needed to safeguard road investment projects deemed at risk.
Good news for drivers
The announcement has been well received by organisations representing private and commercial road users. Both the RAC and the AA have given the programme their official approval, with the AA’s Edmund King stating that,
“As well as increasing capacity and smoothing traffic flow, we believe that significant road safety benefits can be to be achieved especially with the A1 improvements.”
Steve Gooding, director of the RAC Foundation, argues that it sends a clear signal that travel needs are being taken seriously by the government:
“The fear has always been that road programmes, like the morning mists, have a tendency to fade away before our eyes. This latest unveiling is therefore a particularly welcome demonstration that the promised money is not only available but is being spent on schemes that really matter.”
Bodies representing haulage and manufacturing are also optimistic about the funding programme. The Road Haulage Association’s chief executive Richard Burnett stated,
“We hope that this investment will reduce congestion, reduce journey times which in turn will improve delivery times. For road hauliers, responsible for moving 85% of the UK economy, the road network is their place of work.”
And Chris Richards, Head of Business Environment Policy at EEF, which represents British manufacturers, said that the announcement “brings reassurance that post-election, the government remains committed to the Road Investment Strategy which has begun the task of fixing England’s strategic road network.”
Scheme highlights
East
A12 Colchester bypass widen – Consultation
A5 to M1 link – Scheme opening ceremony
South East
M27 Southampton junctions (London and South East) – Consultation
M271 Redbridge roundabout – Preferred route announcement
London East
A12 M25 to Chelmsford – Consultation
North East
A19 Downhill Lane – Preferred route announcement
A1 Scotswood to North Brunton – Preferred route announcement
A1 Northumberland (Yorkshire and the North East) – Preferred route announcement
Midlands
A52 Nottingham junctions – Consultation
M42 J6 – Preferred route announcement
Yorkshire
M621 J1-7 improvements – Consultation
A1 Leeming to Barton – Scheme opening
North West
M6 Junction 19 improvements – Preferred route announcement
M56 J11a – Preferred route announcement
A585 Windy Harbour – Preferred route announcement
South West
A358 Taunton-Southfields – Preferred route announcement
A30 Chiverton to Carland Cross – Preferred route announcement
A303 Sparkford to Ilchester – Preferred route announcement
The PetrolPrices view
The announcement is great news, particularly given the austerity restrictions that have been put in place on public spending. However, does the government’s new plan for road improvements go far enough? The Chancellor says that we can only leave austerity behind us through strong fiscal policies, a good Brexit deal and higher productivity. Investing in our road and rail infrastructure as heavily as the US intends to invest in its infrastructure would contribute towards greater productivity figures and ultimately a stronger economy. We can only hope that further infrastructure funding will be announced in the autumn budget.
Do you believe £6.1 billion is enough to whip England’s road network into shape? Or is the funding announced by the government too little, too late? Let us know your opinions below.
Jul 5, 2017
New research shows that if you live in London, you could pay up to 42% more for your car’s servicing and MOT than you would in Stoke-on-Trent. Such disparities have been highlighted by MyCarNeedsa.com‘s research into the often murky waters of the trade. South West London is the priciest area, with a service and MOT costing an average of £195.95.
Snapping at the region’s heels are Leicester (£187.85), Portsmouth (£186.08), Bristol (£180.72) and Nottingham (£176.32). At the other end of the spectrum is Stoke-on-Trent with an average cost of £113.06, followed by Walsall (£117.89), Doncaster (£127.20) and Coventry (£127.99). Scott Hamilton, MyCarNeedsA.com‘s managing director, said,
“Our research shows that motorists are paying a premium for servicing, MOT, brakes and clutches in certain parts of England … There is undoubtedly a postcode lottery and some motorists are being hit hard, paying over the odds for a standard MOT and servicing.”
The research was based on comparing the price of 6,800 car services.
The priciest
1. South West London – £195.95
2. Leicester – £187.85
3. Portsmouth – £186.08
4. Bristol – £180.72
5. Nottingham – £176.32
6. Dartford – £174.92
7. Wigan – 174.66
8. Bradford – £174.50
9. Preston – £171.55
10 Crewe – £170.83.
The cheapest
1. Stoke-on-Trent – £113.06
2. Walsall – £117.89
3. Doncaster – £127.20
4. Coventry – £127.99
5. Swansea – £129.44
6. Derby – £129.65
7. Birmingham – £130.50
8. Manchester – £130.55
9. Stockport – £130.66
10. Oldham – £131.25.
Two sides to the story
Why are there such disparities? One potential reason is geography, with prices sometimes varying depending on a particular area’s cost of living. For instance, London is notorious for its high living costs and rents in both the private and commercial sectors.
Garages located in the capital must factor in increased rents, as well as any London weighting for wages, with the extra costs being passed on to customers. Contrast this with Stoke-on-Trent, which is one of the 12 most economically-struggling cities in the UK, and it’s hardly surprising that the city has been named as the cheapest place in the UK to have a service and MOT.
The cost of a service undertaken by an authorised dealer versus a reputable independent also comes into play. Statistics show that franchised dealers typically quote 18% higher for car services, though it’s worth bearing in mind that they have been battling to win back custom through a host of special offers. The specific work that needs to be carried out on the car during a service can also have a significant impact. Research shows that standard work is potentially cheaper at dealers, while more labour-intensive repairs or fixes cost less at independents.
Research now, pay less later
Perhaps the lesson to take away from the survey is to check servicing and MOT costs not only in your immediate area but further afield. For instance, instead of paying £174.66 in Wigan, consider heading to Manchester, where the average cost is £130.55 – a round trip of 50 miles that even with petrol costs included could see a modest saving on your final bill.
Making an effort to compare prices and travel a little further afield could pay dividends in the long term – and as PetrolPrices customers will attest to, it really does pay to do your research.
Are such pricing discrepancies simply down to geographic reasons? Or is there a genuine issue with what motorists are having to pay for their servicing and MOTs? Let us know your opinions below.
Jul 5, 2017
Anyone driving on the M3 last week may not have realised it but they were taking part in a secret test of variable speed limits. Highways England said that though it didn’t publicise the fact, it was testing an increase from 50mph to 55mph on the new smart motorway section in Surrey and Hampshire.
Highways England is trialling different variable speed limits for certain road conditions, such as roadworks, traffic congestion and accidents. If the tests are successful, we could be seeing more variety than the standard 50 mph usually imposed as a traffic speed management measure.
Secret tests
The test took place after the government asked Highways England to observe the impact of increasing the daytime speed limits on motorways, as drivers continue to complain that they are slow and causing delays that are often unnecessary.
The agency confirmed that the speed signs were changed from 50 to 55 mph for a short time as part of a new review of speed limits taking place around the country. Construction unions, however, are concerned by the move, saying that higher speeds could lead to more accidents involving road workers, especially at night.
Not so smart motorway
This was also the first sign that the new smart motorway was operating in its designed manner, after initially being opened as a smart motorway that wasn’t so smart – with the technology being switched on ‘shortly afterwards.’ The upgrade to a 13.4-mile section of the motorway from the M25 to Farnborough has added an extra lane and work was completed on time, with the extra lane operating for traffic as scheduled. However, the smart element of the motorway was running a little behind. This led to a 50mph speed limit being kept in place.
The smart motorway concept is said to give drivers better information about road conditions ahead of them and allow everyone to enjoy a smoother journey. It is also designed to add extra capacity, thereby improving journey times and making the motorways safer.
Cynics argue that smart motorways are “money-making roads” that contain speed cameras every few hundred yards to catch out drivers who break variable speed limits or the national speed limit. The government earned £1.1 million from smart motorway fines alone in 2015. That figure is growing by 20% annually as the smart motorway network expands and is estimated to reach £2 million a year in earnings by 2018.
Benefits of variable speed limits
This isn’t the first time variable speed limits have been trialled on UK roads – a well publicised test on the M1 that limited the speed to 60mph is one example of a trial of the idea that has been paired with smart motorway technology.
One of the potential benefits of variable speed limits is the reduction in air pollution and therefore the easing of harmful emissions in the air from cars. The move is part of a series of steps that the National Institute for Health and Care Excellence (NICE) has suggested to reduce the effects of air pollution on health across the UK.
There are around 25,000 deaths every year in England that cite air pollution as a contributing factor – around 5% of all deaths. The health watchdog has offered a series of measures it believes will help reduce this number.
Reducing pollution
Alongside variable speed limits on motorways, NICE also suggests promoting smoother driving, building homes further away from the road and adding hedgerows to help protect cyclists on cycle paths.
Speed bumps, a current favourite with local authorities, are less favourable, as there is a chance they increase emissions rather than reduce them. Another issue is the idea of ‘no-idling’ zones around schools to stop parents leaving their cars running while waiting to pick up children.
The idea of variable speed limits is that, in traffic, cars are accelerating and decelerating. This increases the amount of emissions. However, by limiting everything to 50-60mph, cars ideally proceed at a steady rate. Suggested times and locations for the measures include all the time on the M25, Sunday on the M4 and Friday evenings on the M1.
It seems that on the surface these changes are part of a wider plan to control traffic not only to ease congestion but to help the environment at the same time.
What do you think of measures such as a 50-60 mph speed limit on the M25 ALL the time? Is this the beginning of a move to align UK speed limits with an EU-wide speed limit of 100 kilometres an hour (62 mph) on UK motorways? Let us know in the comments below.
Jul 5, 2017
MPs have called for the car finance industry to begin publishing the details of defaults and arrears rates, as concern about the amount and type of finance being offered continues to grow. Concerns about the health of the car finance industry and the value of vehicles have led to MPs asking questions about how these deals are being made.
Massive losses
Banks and finance companies could see losses of some £1.7 billion if the value of second hand cars keeps falling, according to the Bank of England. Around £17 billion of major banks’ cash is directly exposed due to the way that car prices are inflated at the moment because there is always a fear of a collapse. This could see around 10% of the value being wiped out.
The root of the problem is that too many people are buying cars on finance and this fuels a debt boom. Many of them use a personal contract plan, which lets them make monthly payments across a fixed period. At the end, they can then get cash to put down a deposit for another car, based on the value of their current car second hand.
Concerns about finance quality
The other reason that MPs and experts are so concerned about the situation is the finance quality that is being offered. For example, young drivers are being tempted to take car finance on deals that mean they pay no deposit up front. These deals do not take into account whether the young people are unemployed, are on low incomes or have a poor credit rating.
The deals mean they pay hundreds of pounds every month for cars worth up to £20,000. If they don’t keep the payments up, they face having the vehicle repossessed and court orders to make them pay the balance.
Examples include a 24-year-old who was shown by the salesman how to write a credit check form so that he could be accepted, while in another case a salesman tried to sell a £15,000 Audi to someone who was out of work. Older drivers are also being targeted, such as the 71-year-old left with a £3,500 debt on a car after having a heart attack.
Financial crash
One investigation by the Daily Mail found that irresponsible car dealers could risk another financial crash by offering loans to people that they can’t afford and wouldn’t be accepted for under other circumstances. If there are huge numbers of defaults on these loans, it could cause a ripple effect that could lead to another financial crisis.
The situation has eerie similarities to the situation in 2007, with car finance firms selling some £5.5 billion in risky loans last year – double the figure of the year before. The Bank of England has said that drivers now owe £58 billion in car finance, an increase of 15% on 2015’s figures.
Sensible borrowing
In most cases, drivers do need to pass credit checks. However, these checks aren’t as comprehensive as with other types of finance and there are no checks to ensure someone can afford the loan. As long as the driver doesn’t take a loan with a monthly repayment that exceeds more than a quarter of their take-home pay, they are deemed fit to pay. This means that drivers earning £8,200 a year could potentially buy a new £12,500 Ford Fiesta.
MPs and campaigners are calling for a crackdown on these ‘reckless’ tactics. Meanwhile manufacturers Vauxhall and Suzuki are investigating the conduct of their own dealerships. Furthermore, the Financial Conduct Authority (FCA) has already said it is investigating ‘irresponsible lending’ in the motor industry.
Do you think the subprime car finance market has the potential to cause another financial crash? Have you taken out a car finance plan without knowing the consequences? Let us know in the comments below.
