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Second Hand Cars - One in five cars sold have problems

According to the Office of Fair Trading, One in five of the 3.6 million people buying a secondhand car from a dealer each year have experienced a problem with their car.

However, a study which took nine months to produce has decided existing laws are sufficient to clean up the sector.

The industry said car buyers should ensure they use a reputable garage that is a member of a trade association.

Second hand car purchases have been the biggest source of consumer complaints for the fourth year running.  There were 65,000 complaints about these used vehicles bought from dealers to complaints line Consumer Direct in 2009.  Ironically, rather than buying from private buyers, customers preferred to go to dealers for peace of mind, spending more with a dealer than they would with a private buyer.

Roughly two thirds of problems with second hand cars - often mechanical - became known within a month of the car being bought.  If the customer can prove that the vehicle was defective when sold, then the dealer should resolve the problem, with a refund, repair or replacement.

However, the OFT survey showed that nearly 30% of buyers did not have their problem rectified and instead spent an average of £425 to get it fixed.

The report claimed that dealers often failed to tell customers whether they had made checks on a car's history.  Less than 30% of the OFT's mystery shoppers were shown the car's service history.

Other issues highlighted by the report included:

    * Dealers selling cars while pretending to be private sellers accounted for £40m of car sales.
    * Disclaimers such as "sold as seen" and "no refunds are available" being used illegally.
    * One in eight cars having a mileage discrepancy, according to HPI, caused by illegal clocking - increasing the value of cars on average by £1,700.

Clocking costs consumers an estimated £580m a year in higher prices, with the average car clocked by 67,000 miles.

Some legitimate instances of correcting mileage exist - such as when a counter is broken and replaced, or when a digital counter's software fails.  However, the OFT claimed that this was not enough to allow 50 companies in the UK to continue to openly offer mileage correction services.  Software is also advertised online by other parties with ways to alter mileage.

The OFT has repeated its recommendation - first called for in 1997 - that a registration scheme be set up for these businesses, or for them to be banned.  It also recommended that MOT test mileage data should be shared with vehicle check companies.

It said that enforcement of these laws was now a priority, but accepted that trading standards departments which policed the sector had limited resources as they are funded by local government.

When asked about the OFTs' report, a car industry trade body said legitimate traders should offer a good service.

"We have been working closely with the OFT on its current investigation into the used car industry," said Paul Williams, chairman of the Retail Motor Industry Federation (RMI).

"We strongly encourage car buyers to go to a reputable garage that is a member of the RMI as we are confident in the standards of excellence that our members deliver.

"Should any problems unexpectedly arise we also offer conciliation services to assist both consumers and garages. We fully support the OFT in its effort to ensure dealers are aware of the law and that these laws are effectively enforced."

AA president Edmund King said the report gave more weight to the fact that buyers should "use their heads not their hearts" when purchasing a vehicle.  One thing is for certain, if your new second hand car needs second hand car parts, you know where to find us.

MOT Failure Rates - Facebook Application

We at Find-a-Part have completed a small facebook application - the MOT Failure Rates App - which may be of some interest to people, as it features MOT Failure data for cars based on the Manufacturer, Model and Year.  You type in your make and model, select your year of manufacture, and then the application displays the pass rate, and where failures occured, which areas of the car failed.

This data has provoked much discussion on bulletin boards and on the BBC website, where the initial data was made available, after the beeb contacted VOSA with a Freedom of Information request.

It should be said that the driver can be as responsible for the condition of the car as the manufacturer (as my wife will testify after cleaning out the parcel shelf last weekend), and as some cars get used more often as fleet cars or commercial vehicles than others (we tend to get more requests on these cars too), so there may be a higher likelihood of a car with a high MOT rate.

Eagle-eyed BBC website contributors have noticed mistakes in the data too, with one car being tested that was registered in the late 19th century, apparently.  Transcription errors are always likely in multi-format data.

Used Car Parts - When Are They Better Than New ?

We all know that used car parts are cheaper than new ones.  However, when is it better to buy used than new ?  Obviously there is the environmental aspect of buying used, if you're putting a used or reconditioned gearbox into an 80,000 mile car, then you're making a co2 saving.  We discuss this issue further in an article on our site - Used Car Parts - Can they be more suitable for purpose than new parts ?

Engine Code Finder

When buying a used engine, or other parts associated with engines, buyers can save themselves a lot of time, trouble, and potentially money, by finding out what the engine code of their car is.  The engine code of the car is usually stamped on the engine block, and each model of car tends to have the engine code located in the same place.  The owners manual gives the location of the engine code.

Find a Part would like you to get the best deal for your used engine, and to do this, you need to be able to give the right information.  With this in mind, we have created an engine code finder service on our website.  Basically, we've been through our old requests, and where an engine code exists in a request, we've added it into a new database, linking it to the make, model, and year of car.  This then enables us to list the engine codes for popular makes and models of car, as you can see for yourself by clicking the link above, then choosing a make.  So far we've cobbled together information from all makes we have dealt with over 2009, and we'll keep updating information as the year goes on.

Often, a 3 or 4 letter / number prefix is used by traders to describe the engine code that they are looking for, and it is this prefix that our members can use to isolate the engine, or similar engines that are used in similar cars to yours.  Vauxhall engines seem to be an exception to this, with a 6 digit prefix used.  One of the things that comes to notice from these listings is that multiple car manufacturers appear to use the same engine codes, which makes it likely that they are the same engines.  This can be seen on the VW Sharan engines page, for example.  This seems reasonable as it is probably cheaper to license and engine from another supplier than re-invent the wheel when there is a perfectly good engine already available from another manufacturer.

As always, when buying parts, please make sure that you get a Land line phone number and company name of the company you are purchasing from, and where possible buy with a credit card, for maximum protection when purchasing expensive items at distance.

Your Car Insurance Premium Will Rise - Deloitte

A report from Deloitte predicts that the £12 billion motor insurance industry will make losses in 2009 and 2010, the first time since 2000. The report suggests that motor insurers would need to raise their premiums by 5% to replace the income lost from lower investment returns.  

A spokesman for Deloitte said "In 2008...motor insurers were making an underwriting loss of £5 for every £100 of premium.  Investment market conditions were good enough for insurers to recoup this underwriting loss and make a small insurance profit. In 2009 I don’t think that insurers will be able to rely on investment performance to save them from making a loss…This is not such good news for consumers who may find it increasingly difficult to shop around for a cheaper premium at renewal." 

Deloitte’s Motor Premium index shows that insurance companies may already be reacting to this likely loss, as motor premiums are increasing at their fastest rate since the index began in 2003. There was an increase in premiums for comprehensive cover of 4% over the quarter, and 11% from Jan-Sept 2009.

The news that insurance companies are increasing their premiums to cover losses is yet another blow to UK motorists, who are still reeling from the recent increases in petrol prices, caused by higher oil prices and the usual annual increase in tax.  Given that a report was release recently which suggested that Mechanics’ hourly charges were racing ahead of inflation, it is safe to say that the UK motorist probably feels a little under the cosh.  There is slightly better news that your car is worth a little more now than it was 6 months ago, the first time this has happened in the UK second-hand car market, but this is obviously only of benefit if you sell your car and buy a new one.

At least there is a way that you can save money on car parts, with Find-a-Parts’ used car parts location service.

Car Parts Factory gets Welsh Govt cash

A car parts factory in Llanelli will be able to expand thanks to the offer of a £3.2 million grant from the Welsh Assembly.

The Car Parts maker Calsonic Kansei makes engine cooling and air-conditioning systems  for a number of car manufacturers.

The plant manager said that the offer of money was crucial in securing investment for a required expansion to the plant, and that the grant had coincided with a large new contract to provide Jaguar Range Rover, who are now owned by the Indian Tata group, with car parts for the next generation of Range Rovers.

The Welsh based firm, Calsonic Kansei employ 400 staff in Llanelli, and the Welsh assemblys’ Economic and Transport Minister, Iuean Wyn Jones, said that the grant would help to safeguard 237 of those jobs, and create 37 new jobs too.

The backing for this company in tough economic times shows a good degree of common sense by the welsh assembly, the best way out of a recession is to grow your way out, and by supporting this company the assembly are helping to grow a viable business, and boost the local economy.

This article was produced by Find-a-Part, car parts search specialists since 1978.

Hybrid Cars - Passing the Green Buck to make a few bucks ?

All the fuss seems to be about Hybrid Cars now, with the Chevy Volt appearing on the most tweeted list on twitter, claims that it will return 230 mpg in the city seem very impressive, if slightly pushing credibility.  The thing about this form of Hybrid is that it relies upon electrical power.  If the electrical power supplied to re-charge the battery comes from Wind farms, great, everyone seems to be onto a winner.  If the power comes from fossil fuels, then aren't we back at square one ?

The Honda FCX Clarity car is miles ahead of the competition from this writers' point of view.  With a hydrogen fuel cell, the only by-product of the car is water.  The car still relies upon electricity and a battery though.  The Honda FCX Clarity was named 2009 World Green Car.  This illustrates the problem that the US is going to have in competing with Asian car companies in the future, and explains why the US government have spent $1.3 Billion dollars in grants to companies which will improve green technologies for cars, car parts and battery components.  All well and good, but there also needs to be a push to convert to greener power stations.

Whatever the future may bring, Find a Part will still be helping you find Used Car Parts.

USA - Michigan gets massive grants for car parts development

The US state of Michigan has recieved $1.36 billion dollars in government grants to develop hybrid car and hybrid truck energy solutions. According to an article in Free press, the money will be used to create up to 40,000 jobs, and will be used to enable companies to tool up for electric vehicle batteries and other car parts for electric vehicles.

Hybrid battery production is an area which is dominated by companies in South East Asia, so the companies that receive the grants will have a lot of work to do to reach the standards already reached by competitors. The biggest benefactor of the grants is Johnson Controls, who will make batteries for Ford hybrid and electric cars and trucks. About half of the money will be provided to companies in the form of tax credits, which will be payable upon meeting targets, ensuring that the money is not spent on other projects.

It remains to be seen whether the UK government will offer a similar stimulus package to car companies, although it is arguable that most British car plants are in foreign ownership, car parts manufacturers in the UK would certainly benefit from a similar stimulus. Article compiled by Find a Part - Car Parts Search Specialists since 1978.

Vauxhall & Opel : Is there a new bidder ?

A second bidder has thrown its hat into the ring for General Motors’ Vauxhall and Opel brands, according to the New York Times. General Motors had planned to sell its European operations to a consortium involving Canadian car parts maker Magna and a Russian bank, but this bid appears to be in trouble.

R.H.J. International, a Brussels-listed industrial holding company, is looking to acquire a majority stake in the European subsidiary, Adam Opel, which includes the operations of Vauxhall in Britain. “These discussions have been taking place over a number of weeks and are at an advanced stage,” R.H.J. said.

Magna International and Sberbank, a Russian lender controlled by the Kremlin, signed a tentative deal to acquire majority ownership of Opel in late May, just before G.M. sought protection from its creditors in a U.S. bankruptcy court.

Report compiled by Find a Part - Car Parts Search Specialists Since 1978.

US Car Parts Manufacturers get "clean energy" parts boost

Car parts manufacturers are feeling the pinch more than ever during this recession - but the american government are looking to assist those car parts makers who are looking to innovate for clean energy solutions.

As John O Dell points out in his excellent blog entry of June 18th - "If GM, Ford and Chrysler combined are making 5- to 6-million fewer vehicles than in their heydays, that's 20- to 24-million fewer tires and steel and alloy wheels; 10- to 12-million fewer headlamp assemblies, and on and on."

The response to this problem in America has been the sponsoring of a bill to provide a revolving $30 billion federal loan fund which will help car parts suppliers and other small to medium sized businesses become parts suppliers for clean energy solutions for cars. As Senator Sherrod Brown (Ohio) pointed out - "As Congress debates a strategy on climate change, we need a strategy for the manufacturing sector. A clean energy economy means jobs for communities."

It remains to be seen if the UK government will offer a similar deal to car parts suppliers in the UK. As has been detailed in this blog, a number of UK car parts manufacturers have been suffering as a result of this recession, and as yet have been given little or no assistance when it comes to innovation for clean energy solutions. Maybe the UK needs a manufacturing sector less than the USA does ?  As O'Dell points out - "the U.S. needs a healthy manufacturing industry - countries that can't make their own basic goods are countries whose economies exist at the sufferance of others. Besides, we can't all be consultants or burger flippers"...

Report Compiled by Find a Part Car Parts Search Specialists since 1978.

Car Parts company axes 78 jobs

Car parts company axes 78 jobs A Car Parts manufacturer based in Birmingham has gone into administration, causing the loss of 78 jobs.

Textile Assemblies, based in Small Heath, makes car seating, door furniture and armrests. Administrators KPMG said it had to make 78 people redundant as the forecast order book could not sustain the firm's current employment levels.

KPMG added it was "endeavouring to trade the residual business" while options were being considered. The administrators said the company employed a total of 172 people at its Small Heath site before announcing the job cuts.

Report compiled by Find a Part - Car Parts Search Specialists since 1978.