This fraud involves a seemingly genuine vehicle that has been advertised at a fantastic price. The ad will contain pictures of what we call a ‘Ghost Vehicle’. This is a car that was once genuinely advertised and the fraudster stole the pictures for later use in a fake ad.

The fraudster may even purchase a Motorcheck report for the vehicle and publish a link to it for the unsuspecting buyer to view. Normally the ‘Ghost Vehicle’ will have a very good record with Motorcheck which can give buyers the false impression that the ad is genuine.

At Motorcheck we use a variety of methods to identify these reports. If you see this page when attempting to view a report you’ve seen mentioned in an online ad you can be fairly certain that the vehicle being advertised is being used as part of an elaborate scam.

There are of course other ways of identifying a scam which every buyer should be aware of.

Further Checks

For further advice from Motorcheck on how to identify and avoid car related scams click here.

Boards.ie also have a popular scam thread on their motor forum

If you think you have come across a car related scam or would like our advice on any advertisement you can leave a comment below and we’ll be in touch.

Related posts:

1. Scam Warning for Irish Motor Trade
2. Stolen Cars Seized in Balbriggan as part of Garda Operation
3. New Car Sales Disappoint With Small Rise (4.6%) On Last Year

Unfortunately we don’t see them as often as we’d like now that new car sales have shrunk to just under 90,000 but you don’t have to be a major car dealer to use NVD. They were just as happy to take my 1973 Mercedes 280CE up to Donegal for some restoration work and bring it back to Ben at Lichtenberg classics in Enniskerry for some TLC under the hood.

Cian Royston, NVD’s Sales Manger called into Motocheck HQ this week to tell us about the companies latest services and an exciting new device they have brought to the Irish market.

The ‘Heatshot’ is a heated winscreen wash system that clears ice, snow, grease, bird droppings and dead insects from the windscreen, whilst prolonging the life of your wiper blades. With predictions of a harsh winter around the corner it looks like the ‘Heatshot’ will be a on many a Christmas present list. My Merc will certainly be a client!

Introducing the ‘Heatshot’ from NVD

To order one today

The Heatshot comes supplied and fitted at €250 per unit. You can find an approved ‘Heatshot’ dealer on the NVD website here. Mention Motorcheck.ie when you’re ordering and you might manage to shave a euro or two off the price.

Related posts:

1. Winter Driving
2. Stolen Irish Cars disguised as UK Cars
3. Merlin Car Auctions is Ireland’s Best Managed Company

In an effort to see if the problem was still as bad as ever we conducted a study of 6,000 Motorcheck reports that were produced this year for Irish consumers thinking of buying a car. The results were staggering - 1 in 5 of the vehicles we reported on were returned with an odometer discrepancy and potentially clocked.

One of the reasons people get conned by car clockers is that there simply isn’t enough awareness amongst the general public about the extent of this problem. We’re now a nation of bargain hunters and when we think we’ve found the deal of the century we’re inclined to act without thinking and hand over the cash.

The amount of people who contact us for advice after handing over cash in a supermarket car park to a stranger for a car that later turns out to be clocked (or worse) never ceases to surprise me.

In the News

RTE’s Nine O’Clock News featured the results of our study on tonight’s bulletin and I’m positive that this will help. At least for the moment….but more needs to be done. Our detection rate is increasing but it’s intrinsically linked to the quantity and quality of data our researchers can gather.

More Mileage Readings Required

Since 2007 the NCT programme has tested over 4 million cars (not including re-tests) and recorded an odometer reading at each test. Our own National Mileage Register has just under 4 million readings currently available to Motorcheck customers. If we combined the two we would have a greatly enhanced and effective weapon against car clocking.

For vehicles in the UK or previously imported to Ireland our UK partners provide our customers with access to over 50 Million odometer readings and our detection rate on clocked imports is benefiting greatly as a result.

RTE’s Will Goodbody reports in the piece above that Government officials are looking into the possibility of sharing the NCT data. SIMI’s Alan Nolan supports the proposal and Motorcheck is more than willing to do the heavy lifting (technically speaking). Here’s hoping it comes sooner than later.

In the interim, while it continues to be easy for a car clocker to modify the odometer reading on a car, it’s not so easy to explain the discrepancy when it shows up on a Motorcheck.ie report. Thankfully our detection rate is growing and we’re seeing more and more of these rogue sellers being caught out by our valued customers.

Related posts:

1. Car Clocking Costs Irish Consumers Up To €40 Million
2. FAQ – Is this car clocked?
3. Do You Want Free Motorcheck Reports?

In a previous article Motorcheck outlined the possibility of terminating a hire purchase agreement under the ‘half rule’ but when Michelle and Noreen Gabriel from Togher, in Cork attempted to return their Renault Clio to GE Money the company refused to take the car back until half the full four-year value of the hire purchase was paid.

By all accounts the finance house ignored Michelle Gabriel’s letter in which she stated that she wanted to hand the car back and terminate the agreement. Their reason being that as Ms Gabriel had not yet made half the hire purchase payments she was not entitled to hand the car back.

This differs from our understanding of the half rule. We believed that an individual was entitled to hand the car back at any time provided either;

• half the hire purchase amount was already repaid or
• the customer returned the car with a payment that when added to the amount already paid would be equal to or greater than half of the hire purchase amount

The Gabriel’s agreement, to buy a 2006 Renault Clio, provided that the total cost was to be €18,151, inclusive of the €3,200 cost of credit. At the time GE Money refused to take her car back they had already made repayments totaling €7,019. Just €2,058 shy of the half way mark.

Ombudsman Bill Prasifka

Ombudsman mistake

Believing that they were entitled to return the car the Gabriel’s sent their case to the ombudsman, Mr. Bill Prasifka.

Mr. Prasifka believing that they had not complied with an obligation under the Consumer Credit Act, to pay off half of the agreement, €9,077, before they could terminate it made his decision in favour of GE Money.

However, MABS (the Money Advice and Budgeting Service ) and the Free Legal Advice Centres (FLAC), supported Michelle Gabriel in appealing Mr Prasifka’s decision to the High Court .

Mr. Justice Hanna ruled that Ms. Gabriel was entitled to terminate the agreement. He said that Mr. Prasifka had fallen into significant error when he decided that all liabilities must be discharged before an individual may terminate their hire purchase agreement.

Will this help other consumers?

Today’s independent carries the headline “Firms face deluge of car returns after ruling” and FLAC director Noeline Blackwell, director general of the Free Legal Aid Centre, is quoted in the Examiner as saying -

Noeline Blackwell

It is worth noting though that the judge also said the finance firm was entitled, through separate proceedings, to have all liabilities met by the hirer. This means that the finance house can follow the hirer for the difference between the amount already paid and half of the hire purchase price.

Yesterday’s ruling means that a finance house can’t ignore a termination letter and must accept the car thus terminating your agreement. This will have the effect of ending your monthly repayments but you will still be liable for half of the hire purchase amount.

If you are thinking of returning a car you can no longer afford the repayments on read our previous article first. It is crucial that you follow the steps outlined to return under the half rule. If you sign anything that could construe your termination as a voluntary surrender it could cost you a whole lot more.

Related posts:

1. Settling Early on a Hire Purchase Agreement
2. Are Dealers Still A Credible Source For Car Finance?
3. Scrappage Scheme Rules Relaxed for Spouses

In its report the BBC points out that the Northern Ireland Trading Standards Authority (the Northern Ireland equivalent of our National Consumer Agency) confirm that clocking is on the rise in the provence. The authority said that “We would be hard pushed to identify a town or city where there isn’t a clocker or a number of clockers operating”.

The threat to the Irish consumer continues to rise as buyers opting to import a car from Northern Ireland or mainland UK risk falling victim to the illicit practice. In 2011 alone there have been more than 19,000 passenger cars imported into the Republic.

BBC Consumer correspondent Martin Cassidy said the evidence was that for an increasing number of cars in Northern Ireland, the mileage you see is not the mileage the vehicle has actually done.

The undercover investigation targeted a car dealer who had been the subject of previous prosecutions for clocking. They visited Seven Towers Autos near Ballymena and test drove a peugeot car that had been advertised with 117,000 miles. A closer look at the cars history uncovered that it had previously been recorded at an MOT test with over 182,000 miles.

In November 2009 Motorcheck assisted RTE’s consumer show ‘Buyer Beware’ in a similar undercover operation. The results from the BBC investigation almost mirrored our previous findings proving that amongst dishonest traders, clocking is still alive and well.

Motorcheck Calls For Release of NCT Data

This example highlighted the significant contribution MOT records can make to the buying decision. In the UK if you have the MOT test number or V5 certificate number  you can obtain the previous MOT test results and their mileage readings free of charge online (click here).

Motorcheck strongly believes that the readings recorded by the Department of Transport in the course of an NCT examination could prove to be a significant addition to its National Mileage Register and we continue to lobby the Department of Transport for access to this data.

Our National Mileage Register currently holds in excess of 3.3 Million readings. Readings obtained from private trade sources as well as industry partners make the register the largest of its kind in Ireland with more unique readings from trusted sources than any other database.

We have helped thousands of people avoid the pitfall of buying a clocked car but would continue to advise that no matter what the result on its Motorcheck history check a thorough examination of the cars service history is vital in establishing its true mileage.

For further tips on how to avoid buying a clocked car click here.

Related posts:

1. Car Clocking Costs Irish Consumers Up To €40 Million
2. Clocking costs UK car buyers more than £500m a year
3. Motorcheck.ie Highlights Car Clocking on RTE News

If you fancy something that’s a bit of a head turner and value your leg room then a Hummer H2 Chrystal Limo could be just the job!

Costing €160,000 when first registered these Hummer H2 Limos have very low mileage and come with a Full Service History, Electric Windows, Central Locking, Front Fogs, CD / CD Changer, Automatic, Cruise Control, Full Leather, Heated Seats, Electric Seats, Phone Kit and Parking Distance Control………

This exclusive trade only auction continues until 3:00 pm on Monday the 30th May. Unfortunately members of the public are not able to bid but there’s nothing stopping you finding a trader to bid on your behalf!

If you’d like to make an offer – leave a comment below and we’ll put you in touch with someone who’s registered to bid on your behalf.

Lot 1

If you’d like to make an offer – leave a comment below and we’ll put you in touch with someone who’s registered to bid on your behalf.

Lot 2

Reserve:	NONE
Finishing at:	30-05-2011 at 15:00hrs
Year/Registration:	07 [W]
Make / Model:	Hummer / Pink Playboy Limo
Details:	EW, CL, AW, FF, CD, ACC, CC, HS, PDC
Exterior Rating:	Very Good
Interior Rating:	Very Good
No. of doors:	5
No. Owners:	1
Colour:	Pink
Mileage:	27k    [ KM's: 43k ]

Related posts:

1. Tequila Fuel Sunset in Ireland, The Smooth Taste of the New B-Class and Fishing for Next Years Buyers
2. Car Clocking Grips Northern Ireland
3. Car Clocking Costs Irish Consumers Up To €40 Million

Merlin Car Auctions hold auctions three times weekly in their Naas and Kylemore premises with over 1,000 cars up for auction. Every car is checked by Motorcheck prior to auction and the auction website at http://www.merlincarauctions.ie carries a Motorcheck certificate for every car sold.

Highest Levels of Business Performance

Recognising indigenous Irish companies across the island of Ireland that are operating at the highest levels of business performance, the Deloitte Best Managed Companies Awards Programme seeks to identify best-managed companies through an evaluation process that extends beyond financial results.

Merlin Car Auctions underwent a number of phases in the competition and benefited from the advice and feedback from coaches from Deloitte and Irish Life Corporate Business during the process.

Merlin were also singled out among the 20 winning companies and awarded a diploma from the Irish Management Institute. Each IMI diploma is a nationally recognised qualification, accredited and awarded by University College Cork – National University of Ireland, Cork.

Announcing the special award Dr Tom McCarthy, Chief Executive of the Irish Management Institute (IMI) said, “Each year we try to identify one company from among the 20 Best Managed that shows in a practical way how they embody the current theme of the programme and award them a place on one of the IMI’s suite of Postgraduate Diplomas. These courses range in subjects from Management, Strategy & Innovation, Leadership, Strategic Human Resource Management, Business Finance, Marketing with Digital Marketing to Executive Coaching and allow these already high performing companies continue to develop their people and ultimately their organisation’s management capability.

This year we looked at how the companies had worked to reassess their business models and worked to transform those models in order to grow the company in a sustainable way through the difficult operating conditions they currently face and beyond. As in previous years, the task of identifying one company from among the winners was not an easy one.

Innovation a key source of future growth

Merlin Car Auctions showed that they had re-evaluated their business model, focusing on innovation as a key source of future growth as well as developing their talent strategy to help them identify the right people from the start, bringing them into the business and developing them and in turn the company, as they progress. It is the way in which Merlin Car Auctions were able to put a mirror to the company and identify these key areas to prioritise that made them stand out and allow them develop a crucial advantage in developing and growing their company in a sustainable way.”

This is the third award that Merlin has received in recent months. The company received the Innovation of the Year award at the Irish Motor Industry Awards in November. This was for the introduction of the Merlin Live Online facility to their website which has revolutionised auctioneering by allowing interested parties to log on from anywhere and partake in the auction taking place in Naas or Kylemore.

David Byrne

Merlin Car Auctions Managing Director, David Byrne said, “We are delighted to have received this prestigious award. We have been working hard to keep our company operating at the highest standards for our customers at all times. We continue to push the boundaries of innovation. Just last week we held our first exclusively online auction which was a fantastic success. Our objective for our online sales is to extend our service to reach more people and make buying a car online a simple and convenient purchase.”

He went on to say, “The Deloitte Best Managed Companies Awards programme is unique in that it recognises the efforts of the entire company, not just one individual. Our success has been achieved through the hard work of our team over the past few years to deliver an exceptional service to our customers.”

Deloitte’s Ronan Nolan, who acted as Merlin’s mentor in preparation for the awards commented, “I was most impressed with Merlin’s management style from our very first meeting with David Byrne and his colleagues. They demonstrated a very clear approach to planning and communication, and in particular have a great ability to adapt to challenging business conditions. I believe they are very worthy winners of the Deloitte Best Managed Companies Award.”

Related posts:

1. Audi R8 to Go Under the Hammer
2. Motorcheck.ie Shortlisted at 2010 Blog Awards
3. The Future of Electric Motoring in Ireland…

Like most professional car thieves the gang responsible worked hard to disguise the true identity of the cars by modifying the VIN numbers as well as changing the number plates to those of similar vehicles registered in Ireland.

Motorcheck.ie was the first car history provider to agree to An Garda Siochana’s terms for access to the Garda stolen car register managed by the Pulse computer system. We plan on integrating the data with every car history check free of charge once it becomes available.

However, buyers should be aware that while a registration check is an important part of the buying process, it is not a guarantee that the car being examined hasn’t been stolen and ‘cloned’ with another legitimate vehicle.

If you are buying a car and want to make sure that it hasn’t been stolen there are a number of additional checks that you should perform.

How to avoid a stolen car

• Do an online check – has the vehicle had a significant number of enquiries in a short period of time?
• Research the specific model you are going to see. Familiarise yourself with the location of the VIN Number and ensure that they all match the Vehicle License Certificate as well as the Motorcheck Report. If the VIN plate has been removed or replaced be very careful.
• Check that the VLC appears genuine. Are all the watermarks in place?
• Check the engine number. Does it match the VLC and the Motorcheck report? If not, why not? Ask!
• Make sure you can verify the seller’s identification. Beware of any advert that invites you to call between 5 and 6pm. Try calling outside these hours and see if you can still make contact.
• Always ask for a landline. If not the home number, get a work number. Mobile phones can be difficult to trace later if anything goes wrong.
• Always view the vehicle in good daylight and at the sellers home. Never meet in a ‘neutral’ venue like a supermarket car park.
• Ask the seller to take you through the history and mechanics of the car. Does the seller have a good knowledge of the service history? Is there documentary evidence to support it? Is he / she familiar with all the controls of the car?
• Check if the vehicle has a valid tax and insurance disc. If not, why not? Be sure to also check the registration number on the discs with that of the car. Do they match?
• Does the registration plate look like it has been recently printed? Are there more holes in it than necessary? Could it have been changed recently? Why?
• Car dealers love to advertise on vehicle windows. If stickers have been removed from the car ask why? Can you find a dealer in the service history that will support the cars history?

Related posts:

1. Stolen Irish Cars disguised as UK Cars
2. The Real Risks of Buying A Stolen Car
3. Fake Garda Warning in Circulation

The worst cases come from individuals who call to confirm the result of a finance check after they’ve bought the car rather than before, which kind of defeats the purpose, but I suppose knowing sooner is better than not knowing at all!

Whilst we don’t have any official statistics on the number of cars being repossessed in Ireland, when RTE’s The Consumer Show called us, we thought it was high time we conducted a survey of the current market and tried to uncover the chances of buying a used car with outstanding finance.

Certainly the figures coming from Motorcheck results suggested a high probability (in some cases as high as 1 in 3) but would this be reflected in a live survey?

We visited one of Ireland’s leading used car classified websites and from an initial search that included private advertisers, franchise and non-franchise dealers advertising vehicles registered 2006 and younger we randomly selected 100 listings.

Survey Results

The results were very interesting. Of the 100 cars surveyed -

• 30% of the sample turned up positive for finance on the official records of the Irish Credit Bureau
• After we contacted the banks in question, 21% of the sample were confirmed to have been on finance on the day they were advertised &
• 14% of the sample still have finance outstanding today.

Buying a car where an outstanding finance agreement is verified by Motorcheck is not a good idea!

The seller is not legally allowed to transfer title of the car to anyone until the finance is paid and if the seller disappears, goes bankrupt or refuses to clear the loan, you could be left shouldering the debt or facing a repossession order.

Stop! – Get Proof Before You Buy

Always ask for proof that finance has been cleared before taking ownership of a vehicle.

If in doubt give us a call – 01-8839230. We are always on hand to call the bank and independently verify every finance check free of charge.

If you need to check finance on a car right now you can enter the registration number in the box below.

Related posts:

1. BOSI Motor Finance to Withdraw from Irish Market
2. Are Dealers Still A Credible Source For Car Finance?
3. Audi R8 to Go Under the Hammer

Others however need nothing more than a bottle of Tipp-Ex to execute a con and you’d be surprised how many of us fall for the latter.

The following is a dramatisation of a true story that I read about on boards.ie recently. Certainly makes you think twice about trusting the Tipp-Ex!

Picture the scene – You’re inspecting a used car at the sellers house. Everything looks okay with the bodywork and you decide to ask a couple of questions about its service history. Does it have a full service history? Where was the work carried out? Can I see the stamps in the service book? etc. Everything seems to check out and you’re close to making an offer….just one last thing. “Has the timing belt been done?” you enquire.

“Absolutely” replies the seller confidently. “It was done at 137,000 miles”. A quick look at the service book shows no evidence of it but wait – the seller has additional proof. “Take a look in there” he says as he lifts the bonnet. “You can see for yourself”.

Sure enough when you look in the car you see a carefully crafted record in Tipp-Ex proudly boasting that the car has had its timing belt done at 137,000 miles.

Just One Problem

The car you’re inspecting is a Ford Fiesta that contains a 1.3 Pushrod engine. This engine doesn’t have a timing belt! How can you trust anything else the seller has to say?

Moral of the story – ignore the Tipp-Ex and qualify any service history by phoning the garage directly. It’s too easy to forge service books, stamps and receipts these days…and of course – don’t regret it, Motorcheck it!

Great Stuff - Tipp-Ex confirms the timing belt's been done!

Related posts:

1. Tightening Your (Timing) Belt?
2. Buying a Used Car – An Expert’s Guide
3. Do Service Departments Take Advantage of Woman Drivers?

Bring your VISA card and you might even bag an Audi R8 at a bargain basement price! Sold new with a price tag in excess of 200,000 Euro, the people in the know at Merlin expect the car to fetch between 90 and 100,000 – a steal!

Even in the heady days of the Celtic Tiger the R8 remained an aspirational car. There were 18 registered in 2008, 0 in 2009 and 1 in 2010 (a demo car that I had the privilege of driving earlier this year) and with none registered as UK imports in the last three years it looks like the R8 was destined to be a UK footballer / popstar’s badge of honour (Cheryl Cole sold hers recently).

Merlin have run 5 ‘Prestige’ car auctions so far this year. Some of the more flamboyant cars to be sold included 2 Aston Martin DB9’s, a Bentley Continental, a Ferrari S430, numerous Range Rover’s and a plethora of Porsche 911’s.

Who’s Selling?

Most of the high-end cars are sold on behalf of finance houses (the cars are either returned voluntarily to the bank for disposal by the owner or in the case of a loan that’s gone into

David Byrne

default they may be repossessed) but a small number of car traders will also submit a car or two when there’s a high profile auction like the one coming up this week.

Either way any finance outstanding on the car will be removed once it’s sold at auction leaving the successful bidder with a bargain and the previous owner with a bill for the difference.

Who’s Buying?

According to David Byrne, MD at Merlin Car Auctions, the type of individual buying the prestige car is someone with a passion for the exotic and a bargain in equal measure.

However the Audi R8 is a special car and he hinted that there may be more than one famous face in the crowd on Wednesday night.

The complete range to be auctioned is available to see at http://www.merlincarauctions.ie/prestige but if you’re thinking of making a bid be sure to bring a 500 Euro bidding deposit (yes – it’s refundable) with you.

Bear in mind the road tax on the R8 is over 2,000 Euro per annum but if you’re going to drive an R8 I think it’s fair to say that this would be the least of your concerns.

Auction Catalogue

Results

Listed below are some of the results of this evenings auction.

07 E200 – 17.2K
06 CLS 250 – 22K
06 350 – 23.5K
08 CL500 – 71K
08 S500 – 47K
07 S320 – 37.5K
05 A4 CABRIO – 13.1K
08 A6 2.0TDI – 23.5K
08 R8 – 76K
04 520I – 7.3K
07 520d – 17.1K
04 X5 – 11k
90 911 – 10.4
03 CAYENNE – 7.4K
06 TOUAREG COMM – 9.4K
07 GTI DSG – 14.4K

Related posts:

1. Merlin Car Auctions is Ireland’s Best Managed Company
2. Does Cheryl’s Audi R8 have the X-Factor?
3. Need something with a bit of extra legroom?

A joint operation between the Garda stolen vehicle unit and the UK’s Serious Organised Crime Agency (Soca), efforts are ongoing to uncover stolen vehicles which have been originally stolen in Ireland, had UK identities put on them and are then resold to Irish customers as UK imports.

It’s a relatively simple but effective scam that has cost unsuspecting Irish buyers thousands.

How is it done?

The gang perpetrating the fraud steal a car in Ireland. Then, posing as a motor dealer, they obtain the VIN number and other identify details of a similar car registered in the UK from a UK history provider.

With this information they print a counterfeit V5 (vehicle logbook) and disguise the stolen Irish car with the identity of the legitimate UK car.

Car Thief

Finally they sell the car in Ireland. It can be a private buyer or a motor dealer but the outcome is the same. Once the certificate is sent back to the DVLA it’s discovered to be a fake and the car is returned to its rightful owner leaving the unsuspecting buyer in the lurch.

What should you do to avoid being duped?

If you’re purchasing a UK car follow these tips and reduce the risk of being caught out.

1. Run a Motorcheck report on the UK registration – our database of stolen and suspected stolen vehicles is the most up-to-date in Ireland and the UK.
2. Look out for stolen V5Cs. The serial number is in a white circle in the top right hand corner on the front of the V5C. If you find a V5C with a serial number in the following ranges – BG8229501 to BG9999030 or BI2305501 to BI2800000, don’t go ahead with the sale!
3. Follow the simple guidelines set out by an Garda Siochana and the DVLA.

Have you been offered a stolen car?

If you think you may have been offered a stolen car, please contact an Garda Siochana in confidence at 01 800 666 111

Related posts:

1. Stolen Cars Seized in Balbriggan as part of Garda Operation
2. The Real Risks of Buying A Stolen Car
3. Stolen Car Alert

A previous article we wrote about an expert’s guide to buying a used car showed how you can never ask too many questions when buying a car. It’s amazing how asking a seemingly innocent question about a car’s ownership history can unearth problems you might never have known about.

If you’re thinking about buying a used car privately be prepared to ask a lot of questions. If this makes you uncomfortable why not bring someone along to do the asking for you? Remember it was PJ’s number one tip? -”Bring someone with experience. If you are not technically proficient, get someone who is to help you, preferably someone with mechanical or bodywork experience”.

Dear Sir / Madam,

I recently had completed full motor checks on two cars. The first one was a BMW 316, Auto. The check came out fine apart from the fact that there was still a HP agreement still on this car and still outstanding. For that reason alone, I decided not to purchase the car.

The second car you checked out for me was a Toyota Corolla 1.4 D4D, Registration number:- 05XXXXXX. The check on this car came out reasonably well. There had been some recalls on safety issues. However, when I was investigating this car there was approx 56,900 Km’s, i.e. 35,563 miles.

When I was inserting the mileage I inserted a rounded figure of 35,000 miles ( 56,000 Km’s).  I note from the report that the previous reading on the 23 rd March 2010 was 35,211 miles ( 56,667 km’s ). I presume since I rounded the mileage figure off to 35,000 miles, when the previous readings read 35,211 miles, this would have shown up as a odometer discrepancy. I am just curious and was wondering can your system show a true mileage figure from day one?

The last NCT on this car would be in or around June 2009. Can a mileage check be done on the day that that NCT was completed? I am sure that the NCT would have the stated figure to hand.

Apart from anything else that car is running fine, with an average miles per gallon running a 63. Quite impressive! Just one little concern is the internal lights that light up the four speed fan and the warm and cold air fan appear to be blown with the exception on one light. In past experience such bulbs would normally tend to blow on high mileage.

The last issue is the hand brake light. When I left the garage I did not notice that it was not working. My son did. However, only yesterday the hand brake light appears to be now working fine. I informed the garage in question of the blown bulbs and the intermittent problem with the hand brake.

Your report also showed up that there were FOUR previous owners. The seller was quick off the mark to state that there was a change over from father to son. The seller offered me phone numbers to check this out had I any concerns. On completion of the deal, I managed to have the warranty of the car extended from three months to six months.

The only concern is that the master key was not provided and the one key has an alarm system built in. He gave me a standard spare key with no alarm system build in. I indicated this to him as I could be really in trouble if I lost the original key with the alarm. He indicated that he would look into the possibility of a ‘fob’ key, with which I would have no problem. In a situation like that would I be help liable for the FOB key? I presume I would. The key issue was only a problem when I paid him in full for the car, €9,000. It left me with no bargaring position at that stage to have a spare ‘fob’ supplied.

Is there any other way that I can actually check the owners of this car? If there are four previous owners, why are there only three dates of sale? I appreciate that I should have read your detailed document more carefully and pushed the dealer more on certain issues. I thank you for your service and I think EVERYONE should use this service. I am an accountant by profession and next year there is a nine year rule being implemented for all taxi drivers. In other words, cars exceeding nine years are not eligible to be a taxi. The average length of a taxi in Dublin is four years approx.

Realistically, taxi drivers will have to purchase cars no less than 2006 (depending on mileage and condition) to sustain a reasonable living. I would urge all taxi drivers to use your service in full as it is tax deductible and that a complete ‘dud’ of a car could put them out of business, as the banks at present are tight enough in that sector.

My apologies for the rather exhaustive email, but I would be  grateful if you could advise me on some of the issued that I mentioned above. The speed to his answer on the four owners made me that bit uncomfortable. I thank you for your service and I await your response.

With kind regards,

Martin.

Hi Martin,

Thanks for your email and your kind words about Motorcheck. It’s always great to hear how our customers use the service.

I’ve been through the points in your email and written a response below. Hopefully you’ll find everything you need here but if not, don’t hesitate to leave a comment below and I’ll pick it up directly.

Outstanding Finance

I notice that you decided not to purchase the first car because it had outstanding finance on it. Whilst we always advise against concluding a sale where finance is an issue, it’s usually something that can be resolved with the seller before you commit to buying the car. Outstanding finance agreements are very common.

Outstanding Finance

Of the last 10,000 Irish registered cars that Motorcheck investigated almost 1 in 3 of of all 2007/8 cars were registered as being the subject of a finance agreement. It’s certainly something you should be aware of in a negotiation but not necessarily a deal breaker.

Odometer Contradiction

You’re correct in assuming that your entry caused the contradiction above. Motorcheck sources all its mileage information from the Irish National Mileage Register (INMR). This is a central database that was built specifically for the collection and audit of odometer readings. It’s the longest serving database in Ireland and currently has just over 2.5 million readings. Unfortunately it can’t guarantee to have a reading for every car on the road and confirming any reading as absolutely ‘true’ is not possible.

When looking at the odometer history of a car you should take into account the pattern of mileage that the readings suggest. Are they fairly consistent with the stated use of the vehicle? Do they match those recorded in the service book? Unfortunately NCT records are not currently available to Motorcheck. We are lobbying Government for access and the Road Safety Authority is supportive of our case but the red tape presenting itself is considerable.

High Number of Owners

I’m glad that you were able to point out the high number of owners as a possible reason for devaluing the car. It sounds like the explanation given was a good one but if I were you I’d contact the previous owner just to be sure. Well done on getting an extension to the warranty. That could prove to be very valuable.

The three dates of sale on the ownership history would be correct as the first owner would be the person it’s registered to from new. Only subsequent owners would create a date of sale on the Motorcheck history.

Spare Key

I’d advise contacting a main toyota dealer for your spare key. They should be able to code one for you so that it works with the immobiliser and the alarm on the car (provided it’s a factory fit one). You can find the nearest one to you by clicking here.

10% Discount

Thank you for offering to tell your taxi colleagues about Motorcheck. Positive word of mouth continues to be a major contributor to our growth and we welcome all our referrals.

I’ve dropped you a note by email with a special discount code that I would encourage you to share with your contact list. It will provide the user with a 10% discount on any check performed on the system.

In the current climate it’s something small that I hope your industry will be pleased to benefit from.

Best regards,

Shane

Ask the experts

Need some expert advice?

At Motorcheck we endeavor to source the best independent advice on any technical questions you may have about your current or prospective car.

If you have a question that you’d like to put to our expert panel simply click on this link and leave a comment at the bottom of the page.

One of our expert panel will respond as soon as possible.

Related posts:

1. Thousands of Ex-Taxis to Flood Used Car Market
2. Car Clocking Grips Northern Ireland
3. Outstanding Finance Still A Serious Concern

Identifying a ‘lemon’ from a genuinely reliable car is something even the professionals can make mistakes with and they appraise trade-ins every day of the week.

When you consider that buying a used car is something the average person does once every three years, it’s not surprising that thousands of us make costly mistakes every year when choosing a ‘newsed’ set of wheels.

One person who knows more than most about spotting a lemon is PJ McKenna. PJ is one of Ireland’s largest wholesaler and underwriter of used cars,4×4’s and LCV’s and has handled 10’s of thousands of vechicles in his 36 years of buying and selling all sorts.

When it comes to spotting a bargain he’s the best in the business, so if you’re thinking of braving the classified listings in search of a bargain at home or abroad, here are some tips from PJ’s Golden Rules.  Advice he gives car salespersons under the mantra ”Better appraisals = Better profit”.

Take Your Time

Schedule your appointment with enough time to cater for the car you’re inspecting.

Remember that a VW Golf 1.4 is a lot easier to appraise than a Subaru Impreza 2.0 STI, so if you’re talking to the seller prior to setting up an appointment, ask them to allow enough time for you to go through the vehicle properly.

It never pays to rush an inspection and could cost you dearly further down the line.

While we’re on the subject of ‘time keeping’ it can be useful to avoid needing a second viewing of the car. If it’s a genuine bargain it will probably be snapped up so ask the seller in advance to bring all the relevant documentation, VLC, VRC, service history, handbooks etc. so you have everything you need on site later.

PJ’s Tips

Bring someone with experience

If you are not technically proficient, get someone who is to help you, preferably someone with mechanical or bodywork experience.

See Everything (before you part with your hard earned money)

Never examine a car if it is dirty, while it is raining, still wet, or in bad light.

Take Notes

Try to use a professional appraisal form. It’s a useful record of any damage when your totting up sums later.

Test Drive the Car

It may sound obvious but be sure to test-drive the vehicle. Check the vehicle on full lock for velocity joint and steering/suspension problems. Take the seller with you. They will be impressed if you adopt a thorough method of appraisal and treat any subsequent offer you make seriously.

If for whatever reason you cannot test drive the vehicle, start the car, leave it running, after a few minutes “rev” the engine to 3000-3500 rpm check for excess smoke from exhaust or abnormal sounds from the engine. If in doubt revert to Golden Rule 1.

Double Check Documentation

Establish the exact model e.g. is it an L, a Freedom, an LX or a Ghia? Do not take the sellers word – check the documentation and compare it against a Motorcheck report. Establish how many owners the vehicle has had (again double-check the documentation)

Check the Bodywork

Slowly walk around the car, several times if necessary, taking note of paintwork abnormalities, panel alignment and gaps. Look down both sides of the vehicle, on your hunkers, to get a better view of shopping trolley type marks/dents “dings” as we call them in the trade.

These types of marks are very difficult to repair and if there are several can result in the car not being “sharp” and difficult to sell on.

Under the Bonnet

Open the bonnet! You don’t need to be an expert to visually check for oil leaks, service stickers, timing-belt replacement markings. Cross check anything you find with the service book.

Inspect bonnet-mounting bolts and wing mounting bolts to see if have they been tampered with. Check side valances, headlamp mountings etc. for any abnormality. If in doubt, revert back to Golden Rule 1.

Check the Roof

Check the roof of the vehicle. If someone has walked across the roof, for example, it is almost impossible to repair properly, bar putting on a new roof-skin, which is hugely expensive or filling with ‘Isopon’. Both options depreciate the vehicle and most likely excluding it from retail sale. Maybe this is why it’s being sold privately????

Inside the Car

Sit inside car, check steering wheel for wear (shininess), drivers floor mat and pedal rubbers for excess wear, always a good indicator of a “high miler”.

Check cigarette lighter, has it been used?? If the car has never been smoked in, that’s a bonus. Check the roof cloth, interior trims for wear and tear, cigarette burns etc. Open the boot, lift boot mat and check for any abnormalities.

Is it an Irish Car?

If the car is an import, be extra vigilant. Double-check all of the above. Check the chassis no. (VIN) if it begins with SABTVRO it means the vehicle was previously registered in Great Britain on a “Q” plate, which means the authorities cannot verify its origin.

Spare key?? Make sure they have it or deduct accordingly. Replacing a key can cost anything up to €250.

Pay Attention to Detail

Always pay attention to number plate surrounds, rear window stickers, tax holder stickers, key rings, if they all match and are from a reputable dealer, good. “She came from a good stable”

Ask Questions

Always ask the seller if the car has had any bodywork or paintwork? There is a big difference. Ask what was the cost of any repair? Ask to see receipts.

Don’t be embarrassed to ask! Be warned if the vehicle was damaged, you are entering a minefield. Has it had light damage and was badly repaired?

Worse still, has it had major body damage and been expertly repaired.? Vehicles having had repair suffer from depreciation to some extent.

Check it’s history

Last but not least – don’t regret it, Motorcheck it! You never know what secrets the car may be hiding and getting a Motorcheck report is a great way of verifying its previous history.

Related posts:

1. The Real Risks of Buying A Stolen Car
2. Do We Put Too Much Faith in Tipp-Ex?
3. Stolen Cars Seized in Balbriggan as part of Garda Operation

The ECC has said that the threat of cloned cars being sold in Ireland was significantly increased following the theft in 2006 of blank registration documents from the UK Driver and Vehicle Licensing Agency (DVLA) in Swansea. A recent investigation by the BBC showed that vehicles worth £13m have been stolen as a result of the loss of thousands of blank DVLA log books.

Just how many cloned cars have made it onto Irish roads is unclear but possession of blank registration documents has allowed fraudsters to copy the genuine vehicles log book which makes the cloning much more difficult to detect.

Buyer Beware!

A recent TV programme looks at the problem of cloned vehicles on Irish roads.

ECC Ireland

According to Caroline Curneen, PR and Marketing Manager of ECC Ireland,

“This is a scam which may affect Irish consumers as they increasingly are choosing to shop cross border for larger items such as cars with many consumers discovering that it is often cheaper to buy a car in the UK and register it in Ireland.

A consumer may only discover that they have purchased a cloned car when they are issued a parking fine or speeding ticket. If you buy a stolen car, you risk losing the vehicle and your money even though you bought the car in good faith so it is imperative that consumers carry out comprehensive checks on any vehicle before purchase”.

You can perform an instant check on any vehicle registered on Irish, Northern Irish or UK roads by entering its registration number in the box now:

Motorcheck automatically includes the UK history with every imported vehicle so you don’t have to be concerned with finding its previous registration numbers.

Top Tips for Identifying a Cloned Car

The following tips have been complied by the ECC and will assist you in determining whether or not the car you’re looking at could be a clone.

• There are three main ways to spot a clone – check the log book, inspect the car and identify the VIN (vehicle identity number).

• Check the vehicle registration document (V5C). Buyers should not proceed with the sale until this document has been produced and they have examined it carefully. Look out for any obvious spelling mistakes. The registration document should have a watermark, the number plate should be clearly listed, the VIN and engine numbers matching those of the car should be listed as should the name and address of the seller. There should be no spelling mistakes or alterations. You can check the validity of the logbook by calling the DVLA.

• Check the VIN (Vehicle Identification Number) plates for signs of tampering. A VIN is a car’s unique identity number. They are usually located in several places, under the bonnet, under the driver’s seat and on the chassis.
  

  Car Thief

  Some cars have the VIN etched into the glass on a window or sunroof so check to see if there are signs that the VIN number has been scratched off or that stickers are not concealing a VIN number. Make sure that all plates have the same number and look for signs that it may have been removed. When you decide what make and model you are interested in, find out where the vehicle identification number (VIN) is on that vehicle. You will then know where to look and check it’s correct.

• Check that numbers listed on the registration document match the car’s number plate, engine number and VIN. Be certain that the V5 certificate is genuine and hasn’t been changed in any way.

• Be on the lookout for stolen registration certificates. The DVLA has provided a range of serial numbers of known stolen registration certificates on their website. If you find one that is in the range of BG8229501 to BG9999030 or BI2305501 to BI2800000 do not proceed with the sale and contact the police.

• Carry out a vehicle check with a vehicle data-check company. This won’t be able to identify a cloned car, but it will tell you if a vehicle has been recorded stolen, written off, scrapped or has outstanding finance.

Related posts:

1. Stolen Irish Cars disguised as UK Cars
2. Stolen Cars Seized in Balbriggan as part of Garda Operation
3. Stronger Regulation for Written Off Vehicles in Ireland

Motorcheck.ie has identified gaps in the current methodology which could lead to thousands of cars operating on Irish roads without notification of urgent repairs called for by the manufacturer.

Mr. Teskey has called for the establishment of one central database where each manufacturer would record details of past, current and future recall campaigns. A similar system operated by the Vehicle and Operator Services Agency in the UK (VOSA) carries details in excess of 5 thousand separate recalls, many of which could have been relevant for Irish drivers.

“The present system which relies mostly on written correspondence from the manufacturer to the registered owner is flawed and liable to leave thousands of affected car owners uninformed about the urgent repairs required” he said.

European legislation requires that vehicle recalls are administered by the most competent authority in the state. In Ireland this duty falls to the Department of Transport that manages the National Vehicle and Driver File.

When a ‘Recall Campaign’ is deemed necessary, the Department provides the manufacturer with the recorded names and addresses for the present registered owners who are subsequently informed by writing of the remedial action required.

There are many reasons why this important information may never reach the current keeper.

• The owners current address may be different to that recorded on the government database
• The registered owner may not be the actual user of the car
• Title to the vehicle may have recently changed hands and the change of ownership not yet been processed
• The vehicle may have been privately imported and subsequently overlooked by the local distributor carrying out the recall

Usually, details of a recall campaign are communicated in writing to the registered owner and direct to the local franchised dealer tasked with carrying out the repair on behalf of the manufacturer. This way, important repairs are often carried out along with the normal servicing. However, In the current economic climate many consumers choose to have their cars serviced by non-franchise operators who may not have access to the manufacturers diagnostic equipment or internal communications. If the mechanic working on the vehicle doesn’t have the information, the repair could go undetected and cause serious trouble further down the line.

“The recent publicity surrounding recalls currently in operation with Toyota, Honda and Peugeot have drawn attention to a problematic area that requires immediate attention” says Teskey. “At Motorcheck we take matters of road safety and vehicle maintenance very seriously. Rather than wait for government to draft legislation on this we have decided to release our own National Recall Database. Adopting ‘best practice’ from the UK it will be hosted online at www.motorcheck.ie/blog/recalls and be completely free to use for both industry operators and concerned members of the public”.

Related posts:

1. Car Recalls – Just How Common Are They?
2. Are the Upcoming Changes to the NCT Really Necessary?
3. Do You Want Free Motorcheck Reports?

Buy A Stolen Car And Risk Prosecution

What’s not commonly known is that if you as a buyer knowingly purchase a stolen car you are in effect breaking the law and liable for prosecution under the Criminal Justice Act.

The question is just how could you ‘know’ if a car is stolen? A professional car thief can make identifying a stolen car a very difficult thing to do.

Even main dealers get caught out from time to time, so how is a private buyer supposed to know a genuine car from a ‘ringer’?

Can The Gardai Tell You?

Unfortunately the answer is ‘No’. If you, as a private citizen, contact a member of the force with a registration number asking whether or not the identified vehicle was stolen the Gardai are not permitted to tell you.

Stolen Car Register

Surely The Garda Has a Duty Of Care to Inform The Enquirer?

While the force does maintain a Stolen Car Register on the ‘Pulse’ computer system, the information recorded in the database is not currently available to members of the public.

There are two reasons why the Gardai will not divulge the information to the public:

1. Firstly, cars that are stolen are often ‘cloned’ and disguised using the identity and documentation of a similar car. The current registration number may not be the real registration number of the car involved. Therefore it’s impossible for the Garda to give you a definitive answer without properly identifying the vehicle identification number (“VIN”). It may take an expert inspection to identify the correct VIN.
2. Secondly, the fact that a specific vehicle has been recorded as stolen is currently treated as confidential information provided to the force by the owner for its detection efforts only. Permission to share the information with public databases, Interpol or any interested third parties is not currently sought, nor consequently given.

Buyer Must Show Due Care

How Can It Be Said That You Knew A Car Was Stolen?

The responsibility lies squarely on the buyer to determine that the vehicle they’re buying is not stolen. So it’s up to you the buyer to protect yourself.

If you purchase a car at a knock-down price without the relevant paperwork, or fail to conduct the necessary background checks and don’t demonstrate ‘due care’ in the transaction, you could be prosecuted for handling stolen goods. Yes that’s right – you could be committing a criminal offence if you cannot show your actions were in good faith.

Top Tips To Avoid Buying A Stolen Car

There are some great bargains to be had in second hand cars but if buying a car privately there are a number of things you should always bear in mind. The following tips have been put together by Motorcheck and an Garda Siochana’s Stolen Car Unit to assist you when buying privately.

Remember – the better the deal you’re getting the more suspicious you should be about the vehicle offered. Buyer Beware!

• Do an online check – has the vehicle had a significant number of enquiries in a short period of time?
• Research the specific model you are going to see. Familiarise yourself with the location of the VIN Number and ensure that they all match the Vehicle License Certificate as well as the Motorcheck Report. If the VIN plate has been removed or replaced be very careful.
• Check that the VLC appears genuine. Are all the watermarks in place?
• Check the engine number. Does it match the VLC and the Motorcheck report? If not, why not? Ask!
• Make sure you can verify the seller’s identification. Beware of any advert that invites you to call between 5 and 6pm. Try calling outside these hours and see if you can still make contact.
• Always ask for a landline. If not the home number, get a work number. Mobile phones can be difficult to trace later if anything goes wrong.
• Always view the vehicle in good daylight and at the sellers home. Never meet in a ‘neutral’ venue like a supermarket car park.
• Ask the seller to take you through the history and mechanics of the car. Does the seller have a good knowledge of the service history? Is there documentary evidence to support it? Is he / she familiar with all the controls of the car?
• Check if the vehicle has a valid tax and insurance disc. If not, why not? Be sure to also check the registration number on the discs with that of the car. Do they match?
• Does the registration plate look like it has been recently printed? Are there more holes in it than necessary? Could it have been changed recently? Why?
• Car dealers love to advertise on vehicle windows. If stickers have been removed from the car ask why? Can you find a dealer in the service history that will support the cars history?

The Current Status Quo – “Caveat-Emptor”

If you are unlucky enough to find yourself in possession of a stolen car, the most likely thing that will happen is the car will be recovered by the Gardai and you will lose both it and any money paid for it.

We’ve long felt that the lack of information flow from the authorities does not protect buyers, and Motorcheck has spent years lobbying an Garda Siochana for access to the Irish Stolen Car Register. In a positive step, the force deployed a resource from their ICT department to explore the technical requirements of making this information available and subsequently made a positive recommendation to the Commissioner and the Stolen Vehicle Unit.

Another Motorcheck First!

A Safer Future – Motorcheck First To Accept Terms Of Integration

I’m delighted to announce that Motorcheck.ie has accepted a proposal from the Stolen Vehicle Unit that will allow us to integrate stolen car register data into our vehicle history database.

We hope to begin implementing the necessary technical connectors shortly, meaning that each Motorcheck report will automatically check the stolen car register on the pulse system in real-time.

This is great news for consumers, and will mark another significant step in protecting buyers from purchasing a car with a hidden history. We’ll post again once this great new addition is added to our system, and as always you can subscribe to our RSS feed or twitter stream to be the first to know.

Related posts:

1. Stolen Irish Cars disguised as UK Cars
2. Stolen Cars Seized in Balbriggan as part of Garda Operation
3. Stolen Car Alert

Have you been to the dealership and filled out all the proposal forms only to be rejected for finance? If so, don’t be overly concerned. 9 times out of 10 it’s not you that’s causing the problem and unfortunately there’s very little the dealer can do to help. Yes, being rejected for finance can be a humiliating experience but it’s one that’s becoming all too regular in Irish showrooms.

No Competition?

The majority of cars sold in Ireland (over 600,000 new and used cars change hands annually) are subject to one or another kind of finance arrangement. It used to be a very lucrative business for banks and retailers alike so why are dealers now reporting an unprecedented rise in the number of applications that are being declined?

With car repossessions on the increase, a shortage of inter-bank lending and a car sales industry in crisis, a number of finance houses have taken the decision to leave the intermediary market altogether. In the last 12 months alone GE Money, Friends First and Lombard Ireland have all left the market with most of the garage business now being underwritten by Permanent TSB or Bank Of Scotland Ireland and to a lesser extent Bank of Ireland and AIB.

A smaller number of operators means that competition for business from dealers has all but dried up. This lack of competition means higher finance rates and a more conservative approach to approving finance for the consumer.

Dealer Finance – Still an option?

In the heady days of the boom most car dealerships would have had a finance manager that could organise finance for you directly from their showroom. A good one would have had a relationship with a number of different banks and been able to source finance on a new car within an hour!

It’s a different story now though. Dedicated finance managers have become something of a rarity. It’s more likely today that the attending sales person will ask you to complete a proposal form before sending it to one (maybe two) banks in the hope that you will be the exception to the rule.

Dealer finance no longer guaranteed

If you are ‘lucky’ enough to be approved for finance bear in mind that the garage will be entitled to make commission on any finance secured on your behalf. In the past, finance commissions were a very important part of the car dealers business.

In some cases a dealer could make more on the sale of car finance than the sale of the actual car but today the focus has shifted firmly onto moving metal – at any cost. Don’t be surprised if the sales person is more excited about your loan approval than you are!

The most common finance product arranged by your garage will be a ‘Consumer Hire Purchase Agreement’. Hire Purchase (HP) is a relatively common way of buying a car but there are some quirks of the agreement that you should be aware of. The main characteristic of HP is that the lender still owns the car until you pay the final instalment on it – up to that point you are only hiring it.

Because a HP Agreement has the car as collateral against the loan it should be in a position to offer a more competitive finance rate than a Personal Loan (PL). You wont know though unless you ask the dealer what the APR (Annual Percentage Rate) is.

Hire Purchase – Still popular?

Sourcing finance by Hire Purchase over 60 months with 1 payment in advance used to be relatively straight-forward. Today however, the main lenders are looking for at least 25% of the car’s value in advance as a deposit. And if that wasn’t tough enough – rates have also shot up to over 9% APR.

25% Cash Deposit now required by most banks

So if you’re thinking about buying a car for 25,000 euro you’re going to need 5,000 euro in the form of a cash deposit and be prepared to pay approximately 408 euro per month for 60 months (that’s another 5,000 euro in interest).

If you’re unlucky enough to have a trade in that has more money owing on it than the amount being offered by your dealer in part exchange things can get really difficult. In the past dealers would have had latitude to ‘roll’ any negative equity into the purchase of your new car and finance the final cost of purchase in one agreement.

The reality today is very different. Banks have adopted an extremely conservative approach and will reach their own conclusions on the value of your trade in before agreeing to a new loan.

This means that if you’re carrying any ‘negative equity’ in your current car you will find it very difficult to purchase another under finance without a cash payment that resets the balance in the bank’s favour and removes any residual risk in the approved agreement.

Balloon Payments – Negative Equity!

One method employed by lenders to make the monthly repayments on a HP Agreement as small as possible was to introduce an inflated final payment at the end of the agreement. Commonly referred to as a ‘Balloon Payment’ this had the effect of reducing your monthly repayments but it meant that the ‘loan to value ratio’ on your agreement was skewed.

Inflated balloon payments increase negative equity

Calculating ‘balloon payments’ is akin to staring into a crystal ball. Lenders will make a guess as to what the value of the car will be at the end of the finance term and try to make sure that the final payment will be less than the forecasted value.

Common in the early part of the decade, balloon payments have become a big problem for those of us who purchased petrol SUV’s that dived in value after the introduction of CO2 linked VRT and road tax.

When somebody decides that they can’t or won’t continue with the repayments on a car that’s not worth the finance owed, the bank is forced to repossess the car or accept its return under the terms of a ‘voluntary surrender’. Usually these cars are sold by auction and the bank continues to seek payment for settlement on the loan from the customer.

The number of cars being repossessed under these conditions has risen dramatically during the economic downturn. Consequently lenders are not entertaining any large balloon payments in any finance agreements being put together today.

Manufacturer Finance – Competitive rates?

All this tightening up means that it’s considerably more difficult for garages to ‘move metal’. In response some of the bigger manufactures have opened finance companies to cater for customers who wish to purchase their product.

Volkswagen for example now offer finance through ‘Volkswagen Bank GmbH Branch Ireland’. Currently advertising a hire purchase APR of 6.75% they still require a deposit of 25% but one would expect the approval level to better from a VW bank lending for VW products.

Other options

Other common methods of sourcing finance for a car include the ‘Personal Loan’ (PL). The APR (Annual Percentage Rate) on a PL is usually higher than that of HP but the finance is not secured against the car which means you own it outright from day one. PL’s tend to be more flexible than HP as you have the option of paying off a PL earlier than anticipated, whereas HP is operated over a fixed term.

PL’s cannot be supplied by the car dealership. You should contact your own bank or credit union directly to enquire about terms and rates.

Related posts:

1. BOSI Motor Finance to Withdraw from Irish Market
2. Settling Early on a Hire Purchase Agreement
3. Court Rules on Side of Consumer Against GE Money

On sale at Shawcroft Motors the car is described as follows.

Vehicle Description:
2 Doors, Semi-Automatic, Coupe, Petrol, 9,000 miles, Black.

AS YOU WOULD EXPECT THIS CAR HAS AMAZING SPEC,EXCLUSIVE EDITION MODEL R8 R TRONIC SPECIALLY ORDERED WITH EXCLUSIVE 2 TONE BLACK AND IVORY INSERTED VERANO LEATHER,IVORY LEATHER DOOR INLAYS AND SEAT BASE AND BACK INLAYS,LOOKS ABSOLUTLY STUNNING.

ALSO HAS THE FULL EXTENDED LEATHER PACK WITH LEATHER UPPER DOOR PANELS,LEATHER ARM REST ALSO TO REAR AND LEATHER UPPER DASH AND CONSOL SURROUNDS,FINNISHED IN PHANTOM BLACK PEARL WITH CONTRASTING PHANTON SIDE BLADES,COLOUR COMBO`S DON`T COME MUCH BETTER,OTHER EXTENSIVE SPEC INCLUDES HEATED SEATS,MAGNETIC RIDE,FULL EXTENSIVE CARBON FIBRE ENGINE PACK,CRUISE CONTROL,ENGINE ALLUMINATING LIGHTING PACK,FRONT AND REAR ACOUSTIC PARKING SYSTEM,HOME COMIING LIGHT PACK,BANG AND OLFUSEN UPGRADE,TECH PACK WITH AUDI SAT NAV PLUS,MMI MULIMEDIA INTERFACE,CD MULTICHANGER,STAINLESS STEEL PEDALS,AUTOLIGHTS,HEATED MIRRORS.

NEEDLESS TO SAY THIS IS A VERY SPECIAL CAR IN PRISTINE CONDITION WITH ULTIMATE STATUS AND SPEC,PLEASE EXPRESS YOUR INTEREST,WILL BE AVAILABLE MID WEEK.”"WE CAN SUPPLY YOU THIS CAR FOR INTALMENTS OF 699 P/M FOR LTD COMPANIES AND BUSINESS USERS ONLY,PRIVATE CUSTOMERS PLEASE CALL FOR A SIMILAR QUOTE”". C/DEBIT CARDS ACCEPTED,FULL DEALER FACILITIES,FULL LEASE PURCHASE PACKAGES,INDOOR SHOWROOM,TEL 07812 575840, £66,985

Vehicle Details:
Year: 2007
Fuel Type: Petrol
Transmission: Semi-Automatic
Body Type: Coupe
Colour: BLACK
Mileage: 9000 miles
Price: £66,985

Related posts:

1. Need something with a bit of extra legroom?
2. Car Auction Postponed
3. My Two Year Old has a Bone to Pick with Renault.

Unfortunately cars and water don’t mix well and insurance claims are ‘flooding’ in as a result. For many car owners, finding their pride and joy classed as a ‘total loss’ and consequently written off by its insurer can be difficult for some to accept. After all, the car looks fine! The engine lights still come on and the brakes work. What’s the big deal? Surely a couple of days in the sun will see it good as new???

What a lot of people don’t realise is that Water leaves lasting damage that may not be evident at first glance. There can be a real danger that electrical and mechanical components will fail in a flood damaged car. Mold and mildew are very difficult to get rid of and any remaining warranty you might have on the car would be void. Not to mention in the case of sewage contamination the real real risk of contamination by effluent diseases.

Most flood damaged cars declared to be a ‘Total Loss’ or ‘Write off’ are sent directly to a salvage yard. However in some cases, the owner will be insistent on retaining the flooded car and worryingly some of these will be dried out, cleaned up and put back into the used car market where an unsuspecting buyer will be duped into a sale thinking they’ve got a great deal.

If you’re concerned that a car you’re thinking of purchasing could have been involved in a flood the following tips could help you.

How to Detect a Flood Damaged Car.

Look for the following tell-tale signs when inspecting a car

• Mildew, debris and silt in places where it wouldn’t normally be found, such as under the carpeting in the foot wells, boot, or around the engine compartment. Mud and rust in the glove compartment are also warning signs.
• Check for rust on screws and other metal parts
• Waterstains or faded upholstery; discoloration of seat belts and door panels
• Dampness in the floor and carpeting; moisture on the inside of the instrument panel
• A moldy odor or an intense smell of a detergent or deodorizer being used to cover up an odor problem
• Condensation on the glass and or instrument panel

Get an expert opinion. Ask your mechanic to check the cars:

• Electronic system
• Transmission
• Anti-lock brake system
• Airbags

Having these areas checked will not only help detect if the car you’re looking at was indeed in a flood, but will also let you know if the car is actually safe to drive. (A Motorcheck Pre-Purchase Inspection is one way to do this).

If you’re still thinking of buying a car that has been damaged in a flood be sure to read the following.  Not all flood damage has the same consequences and you need to be aware of all the risks before taking the gamble. A flood damaged vehicle will fall into one of three categories. Fresh Water, Salt Water or Sewage Contaminated.

Fresh Water

This is a vehicle that has been damaged by fresh water with no evidence of sewage contamination. In most cases this type of damage will occur out of town and be connected with a river flooding. If the vehicle has been totally submerged it will most likely be written off as a category “B“. This means that the bodyshell should be crushed. The vehicle should never reappear on the road, but it can be broken for spare parts plus any residual scrap metal. This category of ‘write off’ is reported to the Department of Transport and subsequently made available in a Motorcheck report.

Where the water level is at the level of the dashboard or below, an insurer may opt to write off the vehicle as a category “C” or “D“. The status chosen generally depends upon the estimated cost of repair and the vehicle’s pre-flooding value. Worryingly category “C” and “D” ‘write offs’ are not reported to the Department and may not be detected on your Motorcheck report.

Salt Water

Vehicles with interior salt water flooding should always be dealt with as a ‘total loss’ and written off by an insurer. They will normally be categorised as “A” or “B” depending on the level reached by the water in the interior of the car. In some cases where there has been only minor low level flood damage to the exterior of a car, consideration might be given towards a possible repair but this would be highly unusual and should be taken on with extreme caution and only by a professional.

Sewage Contaminated

Where there is evidence of sewage contamination within the interior of a car, including the boot area, a vehicle should always be dealt with on a ‘total loss’ basis and will be categorised as “A” or “B”.

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