F&I Management & Training

Leading vehicle information expert, HPI joined forces with BBC Watchdog journalists to help uncover a clocking scam, which was making a fraudster posing as Ashley Singh and his brother thousands of pounds per sale. With 1 in 12 cars checked by HPI showing mileage discrepancies it is essential that used car buyers stay vigilant and protect themselves from the risk of unscrupulous vendors.

Mr Singh was selling clocked cars from his home via online used car sales websites, using fake identities and even doctoring the service histories to cover his tracks. Watchdog set up the two fraudsters by selecting a car that would be a prime target for a clocker. They sold him the car for £2,300 with a mileage of 128,000 miles and later found the Singhs selling it for £6,000 with a mere 47,000 on the clock.

Nicola Johnson, Consumer Services Manager for HPI comments, "The Watchdog programme showed that clocking remains a very real threat to used car buyers. Unscrupulous sellers like Ashley Singh see the clocking of a vehicle as an easy way to raise its price and make some extra cash by putting thousands of pounds onto the price tag. And it's not just prestige cars that are the target for clockers, so all used car buyers need to be on the look out."

Modern digital odometers are now commonplace, making it even easier for clocked vehicles to evade detection, as the traditional tell-tale signs of damage to screws or poorly aligned numbers are not visible. The Office of Fair Trading issued a report into the used car market earlier this year which featured figures show that clocking costs buyers £500 million each year and both the BBC and HPI urge used car buyers to protect themselves. Anyone wanting to verify mileages would be best served with an HPI Check, which includes a National Mileage Check as standard, using information that dates back to 1997. HPI's National Mileage Register now contains over 13 years worth of records, totalling more than 135 million readings, giving buyers extra assurance that a vehicle checked by HPI has not been clocked.

Johnson continues, "The most worrying thing is that clocked vehicles may be dangerous. Vehicles with incorrect mileages may have more wear and tear than the buyer realises and may have missed important services and part replacement dates. HPI urges consumers protect themselves from the threat of clockers and the risk of paying over the odds for what may be a dangerous vehicle."

The British Insurance Brokers' Association (BIBA) is warning that diesel drivers are most at risk of misfuelling, which could cost more than £5000 to repair and is not covered by nearly a third of insurance policies.

BIBA has highlighted that of the 150,000 misfuelling cases per year, 95 per cent are people putting petrol into diesel vehicles due to the wider diesel filler neck and narrower unleaded nozzle. A BIBA survey of the major UK insurers reveals that 30% would not pay a misfuelling claim.

Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: "Nobody is immune to misfuelling, from TV celebrities like Philip Schofield to Wayne Rooney's reported misfuelling mishap, it is easily done. Even the Metropolitan police have spent nearly £280,000 repairing vehicles filled with the wrong fuel since mid 2006. It is important to speak to your insurance broker to arrange a fully comprehensive policy that covers these unexpected risks."

BIBA advises that in the event of misfuelling the motorist should not start the vehicle and ought to notify the petrol station and breakdown company immediately. The possibility exists that an insurer may refuse to pay out in the case of a motorist who knowingly drives their vehicle with the wrong fuel in it because the policyholder may be deemed to have failed in their duty of care.

BIBA insurance broker, Michael Edwards from MCE, commented: "Misfuelling often occurs on a Monday morning and Friday evening when drivers are preoccupied thinking about the week ahead or rushing home for the weekend. If the motorist is innocent the insurance industry would normally treat this as an accidental damage claim, under a comprehensive insurance policy. However, if the policy is third party, fire and theft or contains a misfuelling exclusion, then the motorist is unlikely to be able to claim at all.

Edwards added: "We have also experienced motorcycle misfuelling where the rider has been driving a company van or car during the week and then fuels his motorcycle for leisure activities at the weekend. Riders should speak to their Insurance broker as 57% of motorcycle insurance policies don't cover misfuelling."

Southern Finance has become a division of the private bank Raphaels Bank.

Both companies are independent parts of the privately owned Lenlyn Group.

Raphaels Bank's takeover of Southern Finance puts Miles Roberts, CEO of Raphaels Bank and a former MD of Southern Finance, back in its driving seat.

Roberts said: “The motor finance market has changed radically over the last couple of years with the result that many motor retailers have much less choice when it comes to offering finance to potential customers.

“Our goal with the acquisition of Southern Finance, making it a wholly owned subsidiary of the bank, is to give motor dealers a more flexible choice that is more in tune with their commercial and customer needs.

“Southern Finance will be both lending direct and brokering finance with a number of other finance providers. And this means we will be able to give dealers access to the complete range of finance options, from PCP and leasing to lease purchase.

“The key is to create a product and service offering that reflects the needs of the motor retail sector.

"Based on my past experience in the motor retail market I believe that the important thing in this market is to provide a high quality level of service, with products tailor made for both independent and franchised dealers. And the new investment by Raphaels will give us the ability to do that at Southern Finance."

DATED: 10.05.10

FEED: AM