5th January 2009

DEAL WITH CREDIT BEFORE DIVORCE

by Rob Kosberg

Divorce can have unexpected effects on your credit. If you are at the point of considering a divorce, you need to find out how to deal with your finances before you receive the possibly devastating injuries to your credit. Know your total debt situation. You might want to have legal advice as you go through the division of finances.

Finances should be worked out, if at all possible, before the divorce is completed. Credit reports for each partner need to be secured, examined and fixed so that both reports are accurate. When you examine your finances you will e able to see what credit issues need to be decided.

There are issues if you are responsible together for a mortgage. Home issues need to be carefully managed particularly if there is alimony and child support involved. You may decide to sell the home or to let one partner buy it. That would take care of that joint loan.

Other decisions will include car debt, loan debt, credit card debt, etc. Such decisions are difficult, but necessary to avoid credit problems post divorce.

Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to “collection” and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.

You want to make certain that all cash assets are divided. Then, close all joint checking and savings accounts. One spouse should not be able to get to the accounts of the other.

During this process, pay all debts even if you have to sell some things to do so. This way, you are each then responsible for your own individual debts. You want to have your own financial base when you leave the marriage.

Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order.

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4th January 2009

GOOD CREDIT: A NECESSITY

by Rob Kosberg

Perhaps it is time to seriously look into your personal financial situation. We should always be monitoring our credit because it needs to remain GOOD. However, if you have recently been denied credit or if you are in shock from looking at your credit card balances or bank statements and you don ‘t seem to have enough cash flow, you need credit repair.

You are the only one that can fix the current situation. So, put aside any fear of seeing your financial history in black and white, be proactive and arrange to secure your credit report(s). There is no magic cure, but it can be done.

We do know that our ability to get a mortgage, car loan, personal loan, credit cards is dependent on a good credit rating. We also need to know that there are other issues at stake for us if our credit risk is poor. Your level of debt and credit card payments have the most effect on your credit score. There are some areas affected by a poor credit rating that you might not know about. You need to increase your awareness of these areas which add more reason for you to repair your credit.

Did you know that poor credit may result in:

1. Denial of /or high interest rates on loans and credit cards 2. Denial of car loans 3. Denial of life, health, homeowner’s insurance 4. Denial of cell phone contract 5. Employment denial 6. Inability to start your own business

Credit is what makes our personal financial world successful or plunges us into financial upheaval. So, if you are experiencing problems with cash flow, meeting financial obligations, large credit card balances, defaulting or ready to default on your obligations, you need credit repair.

It is possible for you to repair your credit. You can research the ways to get your credit report(s). There are 3 major credit reporting bureaus. Compare your reports, and dispute any errors (see Fair Credit Reporting Act).

Contact your current creditors, explain the situation. If your creditors realize that you want to pay your debts, they will be much more likely to work with you. Regaining good credit is work and only you know whether you will be able to do the repair yourself. There is a lot of information to help you.

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2nd January 2009

Basics of Credit Repair

by Rob Kosberg

People who know they have “bad” credit and are a big “credit risk” are usually aware that something has to change with the way they manage their money and debts.

You will need the “do it yourself” directions to assist you with this time consuming and sometimes discouraging project. However, you will be proud of the finished project.

There are some basic steps that need to be taken to solve the credit problems that are occurring. Initially, know your credit score. A score over 700 is known to be “good.” A 3 digit number under 700 can be problematic. Find out this information via your credit score.

Credit Bureaus will be the source of this information. There are 3 credit bureaus: Experian, TransUnion, and Equifax. One can get a free credit report from each every year. There is a fee for the credit score. See www.annualcreditreport.com for details.

A business does not always report to the same credit bureau. Therefore, you want to see all 3 reports for comparison. It is possible that they may differ.

When you finish comparing them, review each report for errors. You will need to DISPUTE ANY ERRORS. There is no quick fix, but repairing your credit is a work in progress.

Document all errors, and the reasons why you know they are errors and send this in writing (with a copy of the credit report) to any or all, if needed, credit bureaus. Definitely retain COPIES OF EVERYTHING for your records.

This is essential information for you to have because there may be some unexpected surprises on those reports. Stay with the process, confront the issues.

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25th December 2008

Driving A Good Deal On Auto Finance

by John Brennan

We’ve all been there - the excitement of getting a new car. You’ve done the deal, the papers are signed, the dealer has handed over the keys, you’ve taken it home and let all your friends admire it. Then the doubts set in… How do you really know that you got the best deal on your car loan?

You should ask this question well before you ever step foot onto the dealershipas lot! Coming to the dealership prepared with the information you need will cut down on your stress dramatically when it comes time for car shopping. This way, you wonat spend the next five years driving your car, wondering, ahow do I know I got a good deal on a car loan?a

First up, take a look at your car loan history. Have you ever taken out a finance deal on a vehicle before? Did you make all the payments when they were due? Did you pay the loan off early? Or was your vehicle repossessed if you fell behind with payments. Your previous car loan history is one of the most important factors in whether you get the car loan deal you want.

Next thing, put in some time to research the exact details of the car you want. Get the make, model and year of the vehicle you’re interested in purchasing, and check out some other things too. If it’s a brand new car, you should look up to see what the future resale value is likely to be, and make sure that you’re getting a reliable vehicle. When you’re buying a used car, do some research to find out how well that model holds up over time.

When youave decided on the vehicle of your dreams and finished your research, you should check out where youare going to get your insurance coverage from. Getting a car insurance estimate is something you definitely want to do ahead of time, so you wonat be surprised at high how the rate is when you decide to bring home a high-risk sports car. Most dealerships require you to have an insurance policy in place before driving the vehicle off the lot, anyway.

You may think youare ready to head down to the dealership and pick out your car, but youare not quite there yet: before you even begin negotiating, you should research and apply for loans on your own. Many people donat realize that you donat have to secure your auto loan through the dealership youare purchasing your car from - if you can find a better rate somewhere else, go for it!

This can take a while, so set aside a few weeks before you are ready to buy, so you can apply for loans that interest you, and you’ve got time to get notification that you’ve been approved. Once you’re approved, remember that doesn’t mean you are committed to taking the loan. Look at the details of the loans you’ve got approval on, and check out which one offers you the best deal. The main thing to look at is interest rates - the lower the better!

Now, head to the dealership, and after youave settled on the car and the purchase price, let the dealer know that youave already got your loan in place, but youare willing to secure a loan through the dealership if they can offer better terms. They may be able to go even lower on interest, since they make more money if you secure a loan through them. Now, when youare driving your new car home, and you wonder, how do I know I got a good deal on a car loan? Youall know you did, because you did your research, and came prepared.

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22nd December 2008

Tickets: Decoding A Car Insurance Estimate Of Risk

by John Brennan

It is a sunny day. You are having a pleasant drive, perhaps singing along to your favorite song, when you hear the sirens. Looking at the speedometer, you realize you were speeding. This is your first ticket. For those of us who have experienced these unfortunate events, the first question you may ask after the initial disbelief is: How much is my car insurance going to go up? The answer to that question depends on many factors.

The good news is that insurance companies don’t lump all speeders together. A driver with a long and clean history up until the ticket may well not be punished too much by higher premiums. But don’t expect that to be true if you’ve only held your insurance for a couple of months.

Age also plays a strong role, with younger drivers taking a hit in overall cost, even if they abide by all the rules of the road. A young driver with a ticket clearly indicates to the insurance company that they are a bad risk.

Automobile insurance carriers will also take into consideration the type of violation. Speeding tickets are very common, so they will examine how fast the driver was actually going and how much the driver was going over the speed limit. If the ticket was written for another violation, the insurance company will make a decision based on the seriousness and potential for risk the violation carries.

If your driving infraction caused a serious accident, then you should not be surprised when you insurance increases a large amount. You actions have resulted in the insurance company paying out money, and it will now seek to claw it back through higher premiums. That will be the case however blameless your previous driving career has been.

On the other hand, it is a relatively little known fact that tickets can be dismissed and excluded from your driving record by a court. Courts often dismiss tickets for smaller violations, with the driver only having to pay court costs. Check out the exact situation in your state.

Many Americans don’t have any car insurance - make sure you’re not one of them! It is important that you are properly protected by an insurance policy for when disaster hits, regardless of how good a driver you think you are. Well known companies like Allstate and Progressive Direct can provide you with insurance online or by phone. Always provide accurate and truthful information, and take the time to shop around for quotes and the best deal.

Getting your first ticket is never a fun experience. However, it does not necessarily mean your automobile insurance will rise to an astronomical rate. The best thing to do is find out how your insurance companies handles traffic tickets before taking out a policy with them, so you are not hit with another surprise after the sirens drive away.

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22nd December 2008

Tips - The Travails of Collecting Sports Cars

by Arcol Mertin

The exact definition and classification of a sports car is sometimes difficult to distinguish. Some people still believe that you know how to tell if a car is a sports car, as most people think they have to be flashy, expensive, fast, and definitely built for action on the road.

Unfortunately, it is not absolute descriptions of the sports cars. With all the artistic minds of geniuses car these days, you can develop something that does not look like a sports car, but it is a sports car in reality.

For this reason, more and more and people are fascinated by the way in which most sports cars retain their value evaluation. No wonder that the percentage of buyers of sports car has increased by nearly 30% of all car buyers compared to the last poll taken.

Many people find buying sports cars and collector is not only a pleasant pastime, but a profitable one as well. This is because the sports cars are absolutely remarkable investment. However, we can not dismiss the fact that the collection of sports cars can be as expensive as its market value. There are instances in which the collection of cars a hobby can drain your financial resources if not managed properly.

There are still many sports car collectors who are merely sports car dreamers or fanatics. The average sports car collector can have as many as 10 to 15 cars in their collection. One of the most well known sports car collectors is Ralph Lauren. Most people think that Ralph Lauren is only about perfumes and men’s clothing. What they do not know is that Lauren also enjoys the gratification he gets from his own sports car collection.

Many of the cars as Lauren collection contend that the collection of cars or sports cars is not just a hobby luxury, but also get something of value in return. For example, Lauren often comes into their cars in a big race in many countries. Very often wins the race, as well as senior monetary prize for the victory.

Therefore, if somebody is thinking that sports car collection is just a fad, think again. With the growing rate of sports car sales - and buyers, the sports car collection has come to stay. Wealthy people can afford the growing trend of collecting these wonderful cars. After all, for the rich and wealthy people, having these big toys is an absolute value for their money.

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20th December 2008

Info - The Travails of Collecting Sports Cars

by Arcol Mertin

The exact definition and classification of a sports car is sometimes difficult to tell the difference. Some people think they already know how to determine whether a car is a sports car because most think they should be flashy, expensive, fast, and certainly built for action on the road.

Sad to say, this is not the absolute description of sports cars. With everyone’s minds artistic geniuses of the car these days, they can develop something that does not resemble a sports car, but it is a sports car into reality.

For this reason, more and people are fascinated by the way in most sports cars assessment maintain its value. Not surprisingly, the percentage of car buyers sports has risen to almost 30% of all car buyers compared to the last survey.

Many people find buying and collection sports cars not only a gratifying hobby but a lucrative one as well. This is because sports cars are absolutely remarkable investments. However, one cannot dismiss the fact that collecting sports cars can be as expensive as their value in the market. There are instances where collecting the cars for a hobby can drain your financial resources if not managed properly.

Still there are many collectors of sports cars that are merely dreamers or sports fanatics. The average collector cars can be a maximum of 10 to 15 cars in his collection. One of the best-known collectors of sports cars is Ralph Lauren. Most people think that Ralph Lauren is just about perfumes and clothes for men. What they do not know is that Lauren also enjoys the satisfaction derived from its own collection of sports cars.

Many sports car collectors like Lauren contend that collecting cars or sports cars is not just a luxurious hobby but they also get something of value in return. For instance, Lauren often enters his cars in a major race in many countries. Quite often he wins the race as well as hefty monetary prize for the victory.

Therefore, if somebody is thinking that sports car collection is just a fad, think again. With the growing rate of sports car sales - and buyers, the sports car collection has come to stay. Wealthy people can afford the growing trend of collecting these wonderful cars. After all, for the rich and wealthy people, having these big toys is an absolute value for their money.

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19th December 2008

Resources - The Travails of Collecting Sports Cars

by Arcol Mertin

The exact definition and classification of a sports car is sometimes difficult to tell the difference. Some people think they already know how to determine whether a car is a sports car because most think they should be flashy, expensive, fast, and certainly built for action on the road.

Unfortunately, it is not absolute descriptions of the sports cars. With all the artistic minds of geniuses car these days, you can develop something that does not look like a sports car, but it is a sports car in reality.

For this reason, more and more and people are fascinated by the way in which most sports cars retain their value evaluation. No wonder that the percentage of buyers of sports car has increased by nearly 30% of all car buyers compared to the last poll taken.

Many people find buying and collecting sports cars not just a hobby but a pleasant and profitable. That’s because sports cars are absolutely remarkable investment. However, we can not ignore the fact that the collection of sports cars can be more expensive than their market value. There are cases where the collection of cars for a hobby can drain your financial resources if not managed properly.

There are still many sports car collectors who are just dreamers sports car or fanatics. The average sports car collector can have as much as 10 to 15 cars in their collection. One of the best known collectors of sports cars is Ralph Lauren. Most people think that Ralph Lauren is only perfume and clothing for men. What they do not know is that Lauren also enjoys the gratification he gets from sports car on his own collection.

Many sports car collectors like Lauren contend that collecting cars or sports cars is not just a luxurious hobby but they also get something of value in return. For instance, Lauren often enters his cars in a major race in many countries. Quite often he wins the race as well as hefty monetary prize for the victory.

Therefore, if anyone is thinking that sports car is just a collection of fashion, think again. With the growth rate of sales of sports cars - and buyers, collection of sports cars has come to stay. The rich can afford the rising trend of collecting these beautiful cars. After all, for the rich and wealthy, after these big toys is an absolute value for their money.

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19th December 2008

Britain’s obsession with the motorcar

by Harvey Williams

Whilst motorists in other countries do attach importance to the type of car they drive, in the UK the car appears to be of far more importance, even in some cases more important that the type of house someone lives in. Britain sells on average 2,500,000 cars per year and the contract hire and leasing industry has been built as a result of the British motorist acquiring a new car with such frequency.

So what happened? How did motoring habits change over the years without the British motorist realizing it? In the 1950’s motorcars like everything else were built to last, people bought products such as cars, ovens and fridges and expected them to last a lifetime and they usually did.

The cars built today, although they have a lot more safety features, are really quite flimsy compared with the cars of the Fifties; then they were heavy and solid. Nowadays a dented wing can be pulled out with a suction pad, in the fifties getting a dent out, was more like a Blacksmith’s job.

People in England didn’t travel much in the 1950’s but they heard told of the American throw away culture and it all appeared quite disgraceful, buying products knowing that they would not last, indeed not wanting them to last, so they could acquire a newer version.

Before long however something similar was happening in Britain; people wanted everything to be newer and more modern and gradually without realizing it, we had adopted the American way. Nowadays contract hire companies find that many motorists opt for the shortest available contract hire term.

During the last war the British learned to repair things if they went wrong and this culture continued long after the war; many motorists used to maintain their own cars, cars had the potential to last forever. A toolbox in the boot of the car was considered an essential item for many motorists. The better off would use the AA or RAC who would patrol on motorcycles and sidecars. When they spotted a member who would have an AA or RAC badge on their grill, they would salute. Nowadays heath and safety would have something to say about them taking the hand off the handlebars to salute. So how did they call the breakdown service if their car went wrong? Strategically placed at the roadside were boxes with a telephone inside, so that the motorist could phone for help. But of course only those who were members could use them; they would have a key to open the box, how the world has changed.

After years of building cars to last, it dawned on the manufacturers that this might not be the best way to sell more cars. Why would someone go out and buy a new car after three years when their existing car was still the latest model ten years after buying it and it was running perfectly, perfectly that is for those days. Mechanical breakdowns were very commonplace; a typical Sunday when families went out for a drive, would see the roadsides strewn with cars with steam pouring from under the raised bonnet.

The Ford Zephyr Mark 2 was an example of the British car manufacturer’s move towards the American design and the Cresta was Vauxhall’s answer to the American style car; it really was quite ostentatious and very close in design to the American Packard. It was never going to become a classic car..

These new multi colour American looking cars that came out in the late 50’s early 60’s had the effect of making the cars around them look rather boring. Mostly they had the American style bench seats, which were favoured by the young, and column gear change.

Then in 1963 the first registration plate came out that identified the year of the car, sixty years after the very first British registration plate was issued in 1903. It was an A registration, at first it wasn’t introduced countrywide, but before long new registration plates throughout Britain had a letter showing the year a vehicle was first registered.

At first the new registration appeared strange and then the penny dropped for many motorists; there was a way they could set themselves apart from other motorists and show them by their registration plate that they had the latest car. They had fallen into the trap of having the latest registration, only to find the following year that someone else was making their car look out of date.

In January 1967 the E registration plate came out but it only lasted seven months; the new registration month was changed from January to August, a month that had previously been a very quiet for car sales.

Motor manufacturers now had the motorist on the run; what with the number plate changing every year and models changing more frequently, motorists weren’t so happy to hold onto their cars for so many years. August was a very difficult month for dealers; that’s when everybody wanted to take delivery of their new car, so it went from the quietest month of the year to the most chaotic.

During the 90’s it was reported that new cars were being stockpiled in various remote parts of the country, in old farm buildings, aircraft hangers and fields. This was done in preference to manufacturers cutting production levels. Apparently this resulted in some motorists buying a new car to get the latest registration plate, and yet getting an older car than the one they were disposing off.

In the 80’s the pressure of having to have the latest model and registration seemed to increase; these were the Thatcher years, the boom years that eventually led to bust. One way out for some motorists was to buy a personalised number plate and then nobody would know how old their car was, or at least not until the manufacturer brought out the new model.

The manufacturers however were one step ahead of them and were introducing “facelift” models, this was far less costly that introducing a brand new model but could still have the effect of making the owner of the pre “facelift” model feel that his or her car was out of date. It usually involves relatively small changes such as different style headlights, a different grill or some other form of minor remodelling. Changes in design, that would be small enough so as not to be too expensive for the manufacturer, but noticeable enough to prompt motorists into buying a new car.

September 2001 saw the next change to way registration plates were laid out;, showing the month and the year of registration. An example of the new plate would be GL 52 FGD. The idea being that it would ease some of the pressure from manufacturers and dealers of having to deliver such large numbers of vehicles in August. Perhaps also making people less aware of the number plate, well perhaps but contract hire and leasing companies say they find it very difficult to get anyone to take delivery of a car in February and August.

Diagnostics have gradually become a more important aspect of fault finding in cars, making it more difficult for a motorist to hold onto a car over the long term without it becoming quite expensive; calling into to the local mechanic to sort out a problem is often not an option, he will frequently tell you that you will need to go to the main agent, because they have the diagnostic equipment or in some cases the special tools that are needed to carry out a repair.

The small garage cannot compete with this as the find themselves, in many cases having to tell the customer to go to the main agent. This is having a major impact on the cost of running a second hand car.

This of course means that a second hand car’s life will become shorter particularly those owned by motorists who were used to working on their own car. From the motor manufacturers point of view this is ideal, some say planned, because if you are going to keep selling car to contract hire companies that release them back into market after three years, you must have buyers for those second hand cars.

There will however always be some smaller workshops that specialise in a particular marque such as BMW; they will have the tools and the diagnostic equipment and will survive after other small garages have gone out of business. Their charges reflect the fact that they have had to invest in special tools and diagnostic equipment but they are nevertheless, less expensive than the main dealership.

For those who have perhaps a BMW or Mercedes and the vehicle is outside the manufacturer’s warranty, these specialist garages can be ideal, although for many it does mean travelling to find their nearest garage specialising in their particular marque.

Complicated electronics in cars today is another example of how manufacturers have cleverly pushed the motorist into changing their car more frequently. Motorists are, with justification, fearful of having electronic problems with their car once the warranty has expired.

Certain manufacturer’s vehicles have become increasingly unreliable and many motorists fear having one of those electronic faults that in spite of all the diagnostic equipment, the dealership cant seem to cure and dealerships charge you for diagnostic time, as much time as is necessary to find the fault.

Unsurprisingly motorists imagine the worst case scenario; what it could cost them if they had to pay to rectify these problems, if the vehicle were not under warranty. The answer really is to take a manufacturer’s extended warranty, this can be expensive but at least you then know the worst case scenario; the annual cost of the warranty.

Although many motorists would like to escape from feeling they are being persuaded into changing their cars, they realise that they are in a trap that has been set by those who manufacture cars. They have managed to make us feel inferior if we have an older car or registration plate.

The motor industry has been very smart in the way they have changed how we buy cars; It is now quite unusual for someone to chose a 4 year term when taking a car on contract hire .Gradually they have changed our perception of what is an old car from 15 to20 years to 5 or 6 years old, without us noticing it was happening.

Should you have any queries or questions with regard to Fleet Management, Licence checking Contract Hire, Personal Contract Hire, Lease Purchase or vehicle Hire Purchase, please do not hesitate to contact us. Bowater Price plc 01494 536 536. www.bowaterprice.com.

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17th December 2008

Why are cars so important to the British

by Harvey Williams

Whilst motorists in other countries do attach importance to the type of car they drive, in the UK the car appears to be of far more importance, even in some cases more important that the type of house someone lives in. Britain sells on average 2,500,000 cars per year and the contract hire and leasing industry has been built as a result of the British motorist acquiring a new car with such frequency.

So what changed and when? In the 50’s they were still building things to last; people saved up for years to buy an item that they fully expected to last them a lifetime and the motorcar was no exception. Now hardly anyone saves to buy a car and many motorists cringe with embarrassment if their car is five or six years old.

The cars built today, although they have a lot more safety features, are really quite flimsy compared with the cars of the Fifties; then they were heavy and solid. Nowadays a dented wing can be pulled out with a suction pad, in the fifties getting a dent out, was more like a Blacksmith’s job.

People in England didn’t travel much in the 1950’s but they heard told of the American throw away culture and it all appeared quite disgraceful, buying products knowing that they would not last, indeed not wanting them to last, so they could acquire a newer version.

That however is exactly what people in the UK do today, particularly with anything that is electronic, or that has electronics incorporated within it. If it goes wrong, just buy a new one it’s simpler and possibly a less expensive option and this approach has also changed the motorist’s attitude towards cars; the experience of contract hire companies is that motorists now generally prefer a contract hire term of two rather than three years and some even seeking out twelve month contracts.

In post war Britain people tended to get things repaired if they went wrong and cars were no exception. Cars could run forever; the bodywork was solid and as long as the parts were available motorists could just keep repairing their own cars. The engines were fairly straightforward and there were no complicated electronics to worry about.

Before long the British motor manufacturers realized that as long as they continued to build cars to last and didn’t change the models, the motorist had no incentive to buy a new one.

The Ford Zephyr Mark 2 was an example of the British car manufacturer’s move towards the American design and the Cresta was Vauxhall’s answer to the American style car; it really was quite ostentatious and very close in design to the American Packard. It was never going to become a classic car..

This new breed of cars did however make those around them look rather dull; cars had virtually all been black up until this time. Many of these new American design cars were built with much lighter gauge steel than previous models.

A new style vehicle registration plate was launched in 1963 the last digit was the letter A. It was 60 years after number plates were first issued in Britain in1903. At first the new registration plate was only issued in certain parts of the country, but it wasn’t long before it became nationwide.

This new version of registration plate in the 60’s looked odd at first but then quite quickly motorists fell into the trap of being conscious of their number plate; feeling superior when they first bought their car and inferior a year later when the new registration plate came out. Cars started to sell for no other reason than motorists wanted the new registration.

In January 1967 the E registration plate came out but it only lasted seven months; the new registration month was changed from January to August, a month that had previously been a very quiet for car sales.

Manufacturer found that with a combination of changing models more frequently and a new registration plate each year, they had the motorist on the run. The system wasn’t without its problems, it caused a massive bottleneck with regard to deliveries; the first day of August was when almost every motorist wanted his or her new car delivered, it was almost impossible to get anybody to take delivery of a car in the months prior to the change of registration. Some motorists seemed obsessed by having the latest registration.

Some years later there were reports in the press of manufacturers stockpiling car in fields and disused hangers and other secret locations. Apparently in some cases, when people changed their car to get the new registration, they were actually getting an older car that the one they had bought the previous year. Not only older but one that had been sitting in a damp field for perhaps eighteen months.

Having the latest model in everything was very much fuelled during the Thatcher years of the 1980’s, when people became embarrassed about owning anything that was more than a year or two old. Some motorists not wanting to feel under pressure to change their car so frequently discovered that a personalised number plate, that had previously been adopted by the rich and famous, or those who would have quite liked to be rich and famous, was a very effective way of disguising the age of the car.

The manufacturers however were one step ahead of them and were introducing “facelift” models, this was far less costly that introducing a brand new model but could still have the effect of making the owner of the pre “facelift” model feel that his or her car was out of date. It usually involves relatively small changes such as different style headlights, a different grill or some other form of minor remodelling. Changes in design, that would be small enough so as not to be too expensive for the manufacturer, but noticeable enough to prompt motorists into buying a new car.

2001 saw another change to the registration system; September and March were to be the months for the new registration plate, the first being the 51 plate in September for example LC 51 GWJ. Nowadays you can not only see the year of registration but also the month. It was felt that this would spread sales more evenly as motorists would be less aware of the registration plate but as any contract hire company will tell you, the peak sales months are March and September. So perhaps motorists continue to be aware of their registration plate.

The Manufacturers found other ways to discourage motorists from holding onto their cars for too long; engines are no longer straightforward, very few problems can be solved without diagnostics. Very often special tools are needed to do the simplest of jobs and even checking the gearbox oil levels often cannot be done without diagnostic equipment from the manufacturer.

The small garage cannot compete with this as the find themselves, in many cases having to tell the customer to go to the main agent. This is having a major impact on the cost of running a second hand car.

Many years ago many motorists worked on their own cars, for purely economic reasons and although that has reduced significantly, there are nevertheless still many motorists who cannot afford to pay someone else to work on their car. However they are finding that without diagnostic equipment and specialist tools their car cannot be repaired, so cars are now being scrapped much earlier; contract hire release cars onto the market when they are on average, three years old. By making older cars too expensive to maintain, the manufacturers are trying to ensure that there will be buyers for these three year old cars, otherwise they will be in trouble.

The small garages that will survive are those that concentrate on one manufacturer; purchasing the necessary diagnostics and tools to enable them to carry out the same level of repairs and diagnostics as the main dealership. Their hourly rate is normally a lot less than charged by the dealership.

For a motorist who has a car that is outside the warranty period and is fortunate enough to have one of these specialist garages local to them, then they can be a good alternative to the main dealership.

Real worries for motorists whose cars are outside warranty are electronic problems and their worries are not unfounded. Manufacturers wouldn’t admit that their motivation is anything other than to build sophisticated cars, however many suspect this is part of a plan to shorten the life of used cars.

Electronic problems can often be extremely difficult to cure; many motorists have experienced these problems whilst their car has been under warranty, returning the car to the dealership time after time, with the dealership apparently unable to cure the problem. Suggesting perhaps that diagnostic equipment is not the instant cure that many thought it to be.

Not unnaturally the motorist starts to imagine what the cost of all this would be if the car were outside of the warranty. One solution would be to take out the manufacturer’s extended warranty, although only a minority do so, with many more opting to change their car.

Many motorists would like to attach less importance to the type and age of car they drive and would be happy to change less frequently if others did. But of course others are not going to. It’s partly to do with self esteem; many quite illogically, feel inferior if a newer or smarter car drives past them, although interestingly those that drive the more expensive cars do not generally feel superior to those who have a lesser car.

We have to accept that the manufacturers have been extremely clever with their advertising and well thought out strategy to get us to buy more cars. And motor manufacturers and the contract hire and leasing industry are destined remain multi billion pound industries even though many of us would like to get out of the trap we find ourselves in.

Should you have any queries or questions with regard to Fleet Management, Licence checking Contract Hire, Personal Contract Hire, Lease Purchase or vehicle Hire Purchase, please do not hesitate to contact us. Bowater Price plc 01494 536 536. www.bowaterprice.com.

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