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Whether you’re new to driving or you’ve just bought another car, keeping things quiet is also one of your main responsibilities behind the wheel.

If your car is too noisy, you could even be reported for creating vehicle nuisance, which is something that the police take extremely seriously. Even if you’re not taking part in street racing or performing noisy tricks, unknown mechanical issues can make your car sound much louder to passersby and residents.

No matter the age or condition of your car, it’s always worth knowing how to keep the noise to a minimum while you’re getting from A to B.

Why is reducing traffic noise pollution in the UK so important?

Traffic noise pollution has a profoundly negative effect on natural environments and local communities. Along with the harm they cause to delicate ecosystems and the wildlife within them, traffic noise is unpleasant and burdensome for people living in polluted areas.

According to a recent study by the UK Health Security Agency, at least 40% of all adults in England have been exposed to long-term road traffic noise at levels exceeding 50 decibels on average. In addition to general annoyance and sleep disturbance, repeated exposure to road noise has been linked to an increased risk of health conditions like stroke, depression, and anxiety.

For the health of the public and the safety of those travelling in cars, we should all work towards lower noise pollution levels.

Five simple ways to reduce noise pollution

#1 - Choose quieter tyres

All tyres sold in the EU and UK are supplied with noise ratings. The UK government sets limits on the noise levels a set of tyres can produce, so all models must comply. Some tyres are still louder than others, though, so it’s a good idea to choose those that fit into a lower noise category.

All tyres normally make a gentle humming sound. Several factors can contribute to a louder experience though: these include aggressive driving styles, tyre damage, uneven tread wear, and unbalanced tread depths and patterns.

It’s still important to choose a tyre that suits your driving style and budget, though. If you’re looking for an all-rounder, Yokohama tyres suit any car and can be used through all four seasons, making them a solid mid-range contender.

#2 - Maintain your car

Looking after your car could help deliver a quieter driving experience. Excess dirt and debris can create noise at speed. Additionally, regular tyre checks naturally ensure that your tyre pressure and tread depth remain at safe and quiet levels for every drive.

#3 - Use soundproofing materials

Did you know that the way you furnish your car could lead to a quieter experience behind the wheel? If you’ve noticed that your car seems unexpectedly louder, it’s certainly worth identifying which interior and exterior materials are creating the noise.

You could upgrade the insulation and soft furnishings, opting for noise-absorbing materials and soundproofing options where possible. Modifications to the vehicle itself like quieter exhausts could help, but you need to make sure that any changes you make are safe and legal.

#4 - Drive as smoothly as possible

The way you drive your car will influence the noise levels and its environmental impact too. If you’re driving an older car with a typically noisy engine like a large, turbocharged diesel, it’s more likely to be noisier than other models to start with.

It’s worth getting familiar with the quietest cars on the market. If possible, choosing an electric vehicle will guarantee smoother, quieter driving inside and outside the cabin.

#5 - Plan your routes and travel times carefully

Lastly, getting organised before you drive could help you to reduce your noise pollution output. Try to avoid congested and typically busy routes, especially at peak periods or during the usual rush hour. And when you can, try to use public transport or commute on your bike instead!

 

Prior, Bezos had been the richest person in the world since 2017. On Thursday, Tesla’s share price increased, pushing Musk above the mark. The occasion also marks the quickest rise to the wealthiest person list in history.

Musk addressed his bump to the richest person in the world on Twitter, saying, “How strange” and “Well, back to work.”

Tesla has had its share of ups and downs. Just a year and a half ago, Tesla made headlines because of its rapid cash burn. However, over the past year, Tesla’s share price has rocketed, increasing ninefold. In just one year, Musk gained more wealth than Bill Gates’ entire net worth.

Musk remains one of the few who profited greatly during the pandemic. According to the Institute for Policy Studies, Musk made more than $48 billion between March 18 and August 13, while other auto manufacturers struggled. By July, he became the seventh richest person in the world, passing Warren Buffet.

At the beginning of 2020, Musk was worth just $27 billion and hovered at the bottom of the top 50 rich list. In May last year, he admitted that he was so “cash poor” that he wanted to sell his possessions; he listed several of his mansions during this time.

Musk also became the richest person in the world without taking a salary for the majority of his career; he has historically refused his $56,000 minimum salary every year. Furthemore, in January 2018 the company announced it would prohibit Musk from receiving any bonuses, salary, or stock until Tesla reached its $100 billion market cap. To date, the market cap has reached $760 billion.

Although Musk wasn’t taking a salary, he had generous options as a part of his pay package, including the ability to purchase more than 33 million shares of Tesla, which reached $818 per share on Thursday (compared to its market price of $98 a year ago) and sits just over $860 today.

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While Musk has his net worth tied up in several projects, there are many reasons why Tesla remains his most profitable venture. Dominating the electric car market, this sleek luxury sedan has plenty to offer, receiving nearly a perfect score from Consumer Reports and a five-star rating from Car & Driver. Some of its unique features include a biodefence mode (which renders the interior air quality of a vehicle “hospital grade”), a 5,000-pound towing grade, a central portrait touchscreen, front trunks, and more.

With so many features, protecting the vehicle from an investment standpoint is also important. For instance, many car owners opt to extend their manufacturer warranties to ensure their vehicle is covered for any damages beyond its expiration period. Owners of the Model S and Model X receive automatic extended coverage.

However, not all manufacturers are as generous with their policies. Other vehicle owners should work with warranties that align with their specific vehicle type, leveraging third-party companies for premium coverage. For example, a Volt owner might consider a Chevrolet extended warranty.

The Bloomberg Billionaire index noted that Bezos would have remained the richest person in the world if he hadn’t transferred a quarter of his Amazon stake to his ex-wife, who donated more than $4 billion to help Americans struggling during the pandemic.

Ride-hailing giant Uber has moved to sell its driverless car research division to self-driving startup Aurora, a significant shift in the company’s plans for future development.

The autonomous driving unit, known as Advanced Technologies Group (ATG), will be sold as part of a reported $4 billion deal which will see Uber investing $400 million in Aurora in return for a 26% stake in the company. The deal will also give Aurora access to Toyota, which has invested in ATG.

Uber CEO Dara Khosrowshahi will also be joining Aurora’s board, and the two companies expect to collaborate in bringing driverless cars to Uber in the coming years.

“Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles,” Khosrowshahi said in a statement. “For the last five years, our phenomenal team at ATG has been at the forefront of this effort – and in joining forces with Aurora, they are now in pole position to deliver on that promise even faster.”

Aurora is a Silicon Valley-based startup founded by former Tesla, Uber and Google executives and backed by Amazon and Sequoia Capital. The firm develops sensors and software for autonomous vehicles, with a focus on the commercial trucking sector over automated ride-hailing taxis. It currently employs over 1,200 workers.

The news follows a prediction from Volkswagen CEO Herbert Diess that autonomous vehicles will be ready for the consumer market between 2025 and 2030. In an interview with weekly German magazine Wirtschaftswoche, Diess said that autonomous driving technologies had progressed significantly, with advances in artificial intelligence continuing to accelerate.

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Germany’s Ministry of Transport has already begun to draft legislation to allow driverless vehicles to operate on public roads. Trials of self-driving cars began in the UK in October as part of the government-backed research scheme “Project Endeavour”.

Well, the good news is that as the year draws to an end, there are plenty of great deals to be had for a variety of reasons. Anyone who wants to get a great deal when it comes to their new vehicle will find that this time of year is a great chance to get some fantastic 2020 car deals. In fact, 2020 car deals could be a golden opportunity in the US for those who want to purchase a new vehicle.

There are many reasons why you may be looking to get a new vehicle at this time of year. Some people are looking forward to starting the New Year off in a nice new car that is perfectly suited to their needs. Others want to upgrade their vehicle and benefit from the great deals at this time of year, while some may be investing in their first car. Whatever the situation, this could be a great chance for you to get the perfect car for your needs without breaking the bank.

Shopping Around for the Right Deals

It is, of course, important that you shop around to find the best deals on a new car, as they can vary from one dealership to another. Make sure you do not just snap up the first deal you come across, as there may be better ones out there, so you need to put in some research. By doing this, you can ensure you find the best vehicle at the best price, and that you get a great deal when it comes to things such as getting finance.

The good news is that you can do this with ease online, so finding the best deals is nowhere near as difficult and time-consuming as it once was. You can even email dealerships to see which of them can provide you with the best driveaway deal, as this is a very competitive market, and many will be willing to be flexible with regard to costs and terms. So, make sure you avoid rushing into any decisions, and be certain to put some time and effort into finding the very best deals.

One other thing you need to keep in mind is the running costs involved for the vehicle you purchase. While the initial price is important too, you need to make sure you look at how much you will need to pay when it comes to repairs, filling up the tank, and even finding the cheapest auto insurance. So, make sure you take all of this into consideration when you are looking for the ideal vehicle among the end of year bargains available.

While the initial price is important too, you need to make sure you look at how much you will need to pay when it comes to repairs,

Why Are Great Deals Available?

So, why are there so many great deals available on 2020 cars at this time of the year? Well, there are many reasons behind this, and a lot of people are eager to snap up vehicles at this time of the year because of these reasons. Some of the reasons there are great deals available include:

Great Financing Deals

One of the reasons why this is such as great time of year for new car purchases is that dealerships often provide access to very attractive finance deals, and this is to entice people to make purchases of 2020 cars as the year draws to an end. Of course, the fact that fewer people have been going to showrooms this year due to the global situation means that dealerships are under even more pressure than usual to try and make deals more appealing to drivers. So, this year you could be especially lucky when it comes to bargain vehicles.

Selling 2020 Stock

Another reason why this is a great time to get excellent deals on 2020 year cars is that dealerships are getting themselves ready for the next models for 2021. Naturally, in order to do this they need to shift as much of their 2020 stock as possible, and in order to do this they are prepared to offer some very attractive deals to motorists.

Achieving Sales Targets

Of course, every dealership salesperson has their sales goals and targets on their minds, but never more so than at this time of the year. This is often their last chance to boost their figures and get that bonus next year, so they will go out of their way to secure more sales. For drivers, this means being able to access some great deals and save a lot of money on the cost of buying a 2020 car.

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A Time for Special Offers

This is the time of year that has become known for special deals on cars, so this is one of the reasons why it is a great time to purchase a 2020 vehicle. However, it is also a time of the year when people who bought cars previously on a three-year lease come to the end of the lease. Salespeople at dealerships want to make the most of this situation by offering tempting deals to those who may now be looking to buy a vehicle as their lease nears its end.

Ahead of the Sales Slump

As most people know, January and February can be very difficult months financially following the Christmas splurge. In addition, many people get the January blues and don’t want to start doing things like hunting for cars. Both of these situations can cause a slump in sales for the first couple of months of the year, which is obviously bad news for dealerships. Many try to counteract this by boosting sales before Christmas, and this is achieved by offering great deals.

As you can see, there are lots of reasons why this is a great time to get the best deal when it comes to buying a 2020 car.

According to recent statistics, about 264 million vehicles hit the road annually in the US. Moreover, there are more than 210 million registered drivers, making the country’s roads some of the busiest. Despite introducing new and advanced safety features in cars, about six million car accidents take place on American roads each year.

Most of the victims file personal injury claims, and insurance carriers pay out billions of dollars annually. If you have been involved in an auto accident, you may want to know how much compensation you can get from your insurance firm.

Although there’s no specific amount payable after a car accident, understanding how insurance firms calculate settlements can help you estimate how much money you’re entitled to. Some companies use software for calculations. See more information about factors that could affect your settlement to make sure you are well-prepared before diving into a personal injury claim.

The Type of Insurance Policy

An insurance provider will determine the settlement based on the specific type of policy each driver holds, and their maximum limits. For example, in some jurisdictions, drivers must have minimum coverage that includes $5,000 for damages to other vehicles, and $15,000 for injuries or death of a person during an accident.

In some areas, you can choose between full tort and limited tort. On one hand, the latter offers policyholders the possibility to file claims for economic and non-economic damages, irrespective of the severity of the injuries. On the other hand, for limited tort, drivers can save money on their premiums.

Nevertheless, drivers must waive their rights to claim damages such as pain and suffering, unless their injuries are considered serious. The injured parties can still file claims against the other drivers, or they can file third-party claims against their insurance firm for monetary damages. There are limitations on non-economic damages as well, including whether the driver who caused the accident was impaired.

Your Current and Future Medical Expenses

If it’s clear that if liability is on the other driver’s part, their auto insurance firm is likely to offer a quick but small settlement before evaluating the full extent of the injuries you have incurred. Why should you be concerned about that? Well, no policyholder can tell how damaging the injuries will be or how much money they will spend on future treatment in the immediate aftermath of a car accident.

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In some cases, other medical complications could develop from current injuries. Ideally, an insurance company should rely on experts who understand the injuries in order to determine the costs of any future treatments. For example, the settlement may include expenses such as medications and ambulance health care services.

Reimbursement for Out-of-Pocket Expenses

The recovery process includes a lot of expenses. Your settlement may include costs such as hiring a car while yours is being repaired, transportation costs to and from medical facilities, and hiring someone to perform household chores you may not be able to perform because of your injuries. In order to get compensation, you must keep copies of all the bills and explain why they’re important.

The Impact of the Accident on Your Life

The settlement may include non-economic damages if the victims have full tort coverage and/or limited tort coverage in some cases. This refers to compensation for damages that affect your well-being and ability to engage in various activities you used to participate in before the occurrence of the accident. It’s difficult to determine the fair value for such damages.

Non-economic damages include pain and suffering. Generally, an insurer is likely to ask you to prove that your pain and suffering are up to the degree that you claim. Unlike medical bills, proving pain and suffering may require more than just receipts. For example, you will need to have official statements from medical professionals showing the costs of the ongoing treatment and an estimated recovery period.

The precise shape of the UK’s post-Brexit taxation regime is yet to be decided; however, the indications are that radical changes are unlikely. Much will depend on the terms of the UK-EU trade deal, which is due to be negotiated this year. The EU has been abundantly clear that UK alignment in terms of taxation, labour and environmental regulation is the price for EU market access.

Yet, former Chancellor, Sajid Javid, warned that "There will not be alignment, we will not be a rule taker, we will not be in the single market and we will not be in the customs union – and we will do this by the end of the year." It remains to be seen whether his successor, Rishi Sunak, will be as bold or soften in the face of the economic consequences of losing trade with the EU. Below, Miles Dean, Partner at Andersen Tax UK, offers Finance Monthly his predictions on what we are likely to see in terms of taxation as future trade deals are negotiated.

Given the scale of UK trade with the EU, it appears probable that substantial alignment will ultimately be seen as a wise trade-off in order to retain valuable market access to the EU. The EU remains the UK’s largest trading partner.  44% of all UK exports went to the EU in 2017, with 53% of all UK imports coming from the EU. The efficient operation of cross-border supply chains are vital to the UK’s automotive and aerospace industries. These largely depend on the free movement of goods across the Channel.

The Conservative Party’s clear majority in the 2019 general election makes the UK’s future tax policy somewhat more predictable. While some more excitable commentators feared that the Conservatives would slash corporation tax, deregulate and sell off the NHS, the party’s 2019 manifesto went in rather the opposite direction - deferring a scheduled cut in corporation tax to fund the NHS.  Section 46 of the Finance Act, 2016 had pledged to reduce the rate of corporation tax from 19 percent to 17 percent from 1 April 2020. However, Prime Minister Johnson told the Confederation of British Industry’s annual conference on 18 November 2019 that the this planned reduction would be put on hold to fund the NHS and other “national priorities”.

44% of all UK exports went to the EU in 2017, with 53% of all UK imports coming from the EU.

To offset this disappointment to UK business, the Conservative Manifesto announced other business-friendly measures, including a review of business rates, an increase in the R&D tax credit rate from 12% to 13% and an increase in the structures and buildings allowance from 2% to 3%. Yet none of this amounts to anything resembling dramatic reform. Indeed, this cautious approach rather suggests that the government is heeding the EU’s bottom line in terms of alignment, and that it does not intend to radically alter the UK’s taxation regime.

The idea of the UK becoming a giant Singapore-style tax-haven after Brexit also appears to be on hold. Indeed, the government is even promising additional anti-tax avoidance measures and a new digital services tax, showing a commitment to maintaining and even expanding the UK’s tax base.

The new digital services tax may yet be influenced by trade negotiations – this time those with the United States, as regards a US-UK trade deal. The Government’s plans to introduce a 2% digital services tax from April 2020 would disproportionately affect US tech companies such as Google and Facebook. The US treasury secretary Steven Mnuchin has warned of retaliation by new US taxes on UK car imports, saying “If people want to just arbitrarily put taxes on our digital companies we will consider arbitrarily putting taxes on car companies.” Downing Street replied in turn, saying that such tariffs would “harm consumers and businesses on both sides of the Atlantic. We feel [the digital tax] is a proportionate step to take in the absence of a global solution. We made our own decisions in relation to taxation and will continue to do so.

Despite the Government’s declaration of independence in terms of taxation policy, this incident illustrates that any greater independence in trade and taxation policy brought by Brexit has limits. There will inevitably be trade-offs and constraints. UK decisions on taxation do not operate in isolation, but can have broader political and economic consequences. The UK exports some £8.4 billion worth of cars to the US each year. The early agreement of a UK-US trade is a priority for the government. US pressure may well yet influence the government’s digital taxation plans.

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Nobody can predict the future. When it comes to Brexit, events are notoriously unpredictable. However, the actions of the UK government have been moderate – even if the rhetoric is sometimes less so. Mr Johnson came to power with the promise of keeping the credible threat of no-deal on the table, as a negotiating tactic. However, his aim was not to end up with no deal, but with a more favourable one. Having made the compromises required to achieve a withdrawal agreement, we can hope that a similarly reasonable approach will prevail in the UK-EU trade negotiations. No doubt the threat of no-deal will also remain on the table, for tactical reasons, as before. Therefore, while it is possible that the talks will collapse, resulting in a no-deal Brexit at the end of 2020, that outcome appears unlikely.

Even in a no-deal scenario, the Government’s no-deal Brexit tariff regime means that 88% of imports would not be taxed. The Confederation of British Industry estimates that 90% of the UK’s goods exports to the EU, by value, would face tariffs averaging 4.3%.

While the UK could theoretically abolish VAT after Brexit, the technical guidance for a no-deal Brexit indicated that the current VAT system would continue. Since it raises around £125 billion per annum, it is inconceivable that it will be abolished let alone restructured to any significant degree.

While the UK could theoretically abolish VAT after Brexit, the technical guidance for a no-deal Brexit indicated that the current VAT system would continue.

A no-deal Brexit would disproportionately impact sectors such as agriculture and manufacturing. Likewise many EU sectors would be badly affected. Since a deal is in the interests of both sides, it’s reasonable to hope that one will be achieved, even if it is imperfect.

The broad shape of a UK-EU agreement that would facilitate market access is already known. It will require sufficient UK alignment on key matters, including taxation. While the detail is undecided, in broad terms it means little change to the UK’s taxation regime. Perhaps, the government may seek some wriggle-room on VAT or corporation tax. Yet the fact that the government has shown no appetite for radical change in taxation is telling.  Maintaining the status quo on taxation helps to keep a UK-EU trade deal within the government’s sights.

 

Miles Dean is Head of International Tax at Andersen Tax in the United Kingdom. He advises privately held multinational companies, entrepreneurs and high net worth individuals on a wide range of cross border tax issues.

Andersen Tax provides a wide range of UK and US tax services to private clients and businesses, helping them achieve their personal and commercial objectives in a tax efficient manner.

The novel coronavirus (COVID-19) has had an enormous impact on the world in terms of human health and longevity. It is also impossible to deny the effect COVID-19 is having on the global economy. Many powerful nations, including the UK, have experienced a depreciation in their currency since the first cases of the virus were reported. From an automotive perspective, things may appear very grim at the moment. The closure of auto plants in Europe, North America, and Latin America could result in a reduction in global production by as many as 1.4 million vehicles. In the US, Ford Motors has not had an easy start to the year and on Monday, March 23rd, the company shut down its factories in South Africa, India, Vietnam, and Thailand amidst an increase in COVID-19 cases in these regions. With the company’s shares falling by 38% since the start of the year, consumers can’t help but wonder whether this is a superb buying opportunity in disguise.

Have Faith in the Brand

Although Ford has faced a number of obstacles in recent years mostly thanks to an aging product line in the US and several slip-ups in China, the future does not look entirely bleak for the prominent US company. Even in spite of the uncertainty cast over the industry by COVID-19, there are quite a number of reasons to have at least a degree of confidence in the future of the brand. Not only does Ford continuously rank highly in peer reviews, but it also sports a very moderate debt load that is surprisingly well-structured. The manufacturer also has ample funds at its disposal that will enable it to withstand a slump such as the one we are currently experiencing.

Aging Product Line Set to Get a Youthful Boost

While Ford’s aging product line might have acted as a strong deterrent as far as investments were concerned, new additions to the line will boost the company’s profit margins significantly in the next few years. Toward the end of 2019, Ford released updated versions of some of its best-selling models to date: the Escape and Explorer SUVs. Some of the models set for release this year include the brand-new Bronco Sport, as well as updated versions of the highly-popular F-150 which, to date, has been the company’s golden goose. It is important to note that, starting this year, Ford will only be manufacturing two cars: the 2020 Mustang and the 2020 Ford Fusion. There will be no new models of the Fiesta, Focus, and Taurus released during 2020.

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Hi-Tech Auto Investments Will Start Paying Off in the Near Future

Although COVID-19 may cause a number of delays in the automotive industry, there are set of notable efforts in place that are looking very promising. This includes, but is not limited to, the imminent release of several electric car models including an electric version of the Transit Van and F-150 as well as the Mustang Mach –E sports SUV. These technologically-advanced vehicles are predicted to play a big part in not only enhancing the company’s bottom-line but also repair what has been failing the company.

While a recession is becoming a very real possibility in the US, the fact that Ford is trading at only 6.5 times its expected earnings for the year is making its shares exceedingly fascinating right now. Only time will tell, however,  whether now is the perfect time to invest a good portion of funding into one of the most well-known car brands in the world.

When the hypothetical family from number 28 parade the street in their new Mercedes GLE, doing somewhat of a victory lap, Google is just seconds away as we scout our next big purchase.

Driving the car of our dreams just isn’t a feasible option for many, due to the reality of things like family life and other important household costs. But, as John Paul Getty once remarked, “if it appreciates, buy it. If it depreciates, lease it.” Many throughout the UK have taken the once-oil tycoon’s advice and done just that.

It’s a well-known fact that the value of a new car is known to drop massively within the first year, and research from AA suggests that after three years, a car will have lost 60% of its original showroom price tag at an average of 10,000 miles per year. The first-year loss is definitely the worst, with a deduction of around 40% being made by the end of the first 365 days. Obviously, there are different ways of putting the brakes on depreciation. Keeping the car clean, regular servicing in accordance with manufacturer’s guidelines, and one eye on the mileage gauge, will all go a long way in reducing potential losses.

But could we be doing something different?

PCP

An impressive 78% of buyers nowadays opt for a personal contract purchase (PCP), proving itself as an increasingly popular finance option. Admittedly, it goes against everything our parents have told us to do, in regard to owning our own car, but if you can battle those initial demons, then we’re here to show you why this might be for you.

Cost

Some people take pride in saving up in advance to buy a new car, like the Mercedes A Class, but not all of us have the time (or or patience!). With PCP, the payment is broken down into three major chunks. Firstly, you’ve got the initial deposit which is usually 10% of the car’s showroom value. Secondly, the monthly payments which will include enough to cover the depreciation costs incurred throughout the contract. Finally — and this is where things change once the final payment of the contract has been made, you get the option to either return the car or take a new one on a new contract. Or, you can pay a balloon payment and then the car is yours.

The monthly repayments of a PCP contract are significantly less than the alternative finance deals available. The option then presents itself is to drive a car that you would initially have deemed to be significantly out of your price range. Therefore, if you don’t have a big deposit and want lower monthly repayments, then this might be exactly what you’re after.

Please check this for new and pre-owned cars in Dubai at https://exoticcars.ae.

Mileage

Heavy traffic, congestion charges and the worst culprit of all — parking. Three reasons many drivers in the UK have steered away from the daily commute in the car and opted for public transport. A decade ago, our decision when purchasing a car will have depended hugely on our day-to-day usage — but when that isn’t the same, why should the choice be?

On average the annual mileage of a car in the UK is 7,900. One drawback of renting your car through PCP is that is that when initially taking out the contract, you are given a mileage restriction and if you exceed this, you will be penalised. If, however, you would consider yourself to be one of those average UK drivers, then PCP offers no qualms. The opportunity to purchase a new contract once your current one is up means you aren’t going to have spent your days driving around in an old car with high mileage.

The freedom that comes with PCP means that if you wanted to, you could buy a weekend car — unless of course you are using it to commute every day. When purchasing a new car outright, you are restricted by the constant reminder that you will have this car for the foreseeable future. With PCP, you can buy the car that caters exactly to the needs of your evenings and weekends. For example, an SUV if you go camping with the kids most weekends throughout the summer, or a two-door roadster, if your Sundays are filled by coastal runs. And, if your circumstances do change, you can simply exchange the car.

PCP agreements have revitalised the UK car market, as budgets grow increasingly tighter and people are constantly on the lookout for a good deal. For the past three years, the number of new car sales in the UK has stayed above 2.5million units per year, in comparison to 2011 when it was only 1.9million.

Top tier brands such as Audi, Mercedes, BMW and Jaguar Land Rover have all performed well under the system. This is due to the fact these cars hold their value better, and therefore depreciation is less, ultimately benefiting both dealer and driver. Mercedes reported a 100% upturn in UK sales since 2010.

A typical customer could be paying anywhere in the region of £100 upwards for lifestyle costs such as their phone bill and gym membership, so if dealerships are able to offer a vehicle at £99 a month, then they are making the cost seem more realistic for their customers — it’s near enough a no brainer!

This could be the taxi of the future. The EZ-GO is a concept by Renault. It’s a fully autonomous ride-hailing service. It doesn’t require a driver to be present. And if necessary, it could be controlled remotely.

Hailing an EZ-GO is simple. It’s all done through the app. 1) Choose your experience. You can choose a private ride or share with others. 2) Reserve your seats.The EZ-GO would seat up to six. It could also take tourists on a guided tour. 3) Get in and go. The door lifts vertically allowing riders to walk in upright. A ramp also makes the EZ-GO more accessible. The interior is designed for comfort. Sofa-style seating. 360-degree windows. In-car WiFi and wireless charging. A display shows your travel information.

Renault sees a need for new mobility solutions in cities today. EZ-GO aims to solve those issues. Would you reserve this ride?

The latest car registration data brings worrying confirmation that the long run of a retail driven economy may be starting to falter. With the performance of the automotive sector so intrinsically dependent upon the nation’s levels of disposable income and access to credit, the recent performance of the sector in the 10 months to October 2017 indicates that car dealerships across the country may face an extremely challenging end to 2017 and start of 2018, according to Duff & Phelps.

“The recent public statements of the larger motor dealers are of profit warnings and of a softening of used car values. Further, the interest rate rise of 0.25% - the first rise since 2007 - will impact on a number of consumer reliant sectors, no more so than an industry fuelled on the availability of credit. Consumers have also had additional spending power as a result of PPI redress, but this will soon be coming to an end. The question therefore is how well prepared are manufacturers and their dealership networks to manage through what appears to be, the start of a potentially significant downturn?” states Michael Bills, Managing Director, Restructuring Advisory, Duff & Phelps.

“Overall, in the 10 months to October 2017, the market is 4.6% down compared with 2016 and 12.2% down on October alone. However, it is somewhat polarised between those manufacturers and dealers enjoying a modest increase in sales this year and those for whom the opposite is true. Certain marques are seeing reductions in sales demand of around 20% year-on-year. And there will be regional differences too that need to be considered,” added Robert Tallentire, Duff & Phelps.

What is certain is that for many in the industry this will be new territory, a new set of trading parameters that they have not experienced for quite some time. With some 169,000 people employed directly in manufacturing and in excess of 814,000 across the wider automotive industry, it accounts for 12.0% of total UK export of goods and invests £4 billion each year in automotive R&D.

More than 30 manufacturers build in excess of 70 models of vehicle in the UK supported by 2,500 component providers and some of the world’s most skilled engineers.

“The question is what resources and abilities can the average independent dealer draw on to confront the challenge. Manufacturer franchising agreements are not that flexible for the independent dealer with the infrastructure and staffing of the business dictated by franchise agreements. Will these rules be relaxed to maintain dealer networks as the UK goes through the seemingly unending and unsettling Brexit process?” continued Robert.

Dealerships are faced with a business structure predicated on a predominance of fixed costs with labour as the main variable. For many the volume driven bonuses from Q3 that they use to provide a cash buffer for the slower winter months ahead were not earned and consequently were not paid at the end of October. Where dealers have traded outside usual parameters in order to reach bonus volumes, they are potentially now sat on what look like over-priced used vehicles stock, that will be challenging to liquidate and turn into cash. Either way, it feels like there could be a prolonged period of working capital challenges before dealers have the opportunity of a good bonus month again.

For lenders to the sector, the change in fortunes in new car sales and the softening of used car values may have crept up unnoticed. Those that extended seasonal facilities in August and September in the anticipation of a strong end to Q3 and subsequent cash receipts may be wondering quite where they go from here especially after the announcement of the October car sales made by the Society of Motor Manufacturers & Traders (SMMT).

Michael concluded: “Manufacturers will not want to see long standing dealerships suffering and possibly even disappearing as a result of an economic slowdown. Accurate forecasting, planning ahead and embracing of the rescue principles which Duff & Phelps promotes will be necessary to manage a tricky economic period. Our UK advisory team is uniquely positioned to advise dealerships and their stakeholders in a variety of distressed and special situations. Our team has sector experts, recruited from the industry and with real ‘workshop floor’ dealership experience and we understand the challenges being faced, so we would urge those dealerships facing tougher trading conditions to contact us to steer a route through the winter months.

(Source: Duff & Phelps)

Following the recent government announcement of plans to prohibit all petrol and diesel vehicles by the year 2040, Britain is weighing up the idea of switching to ‘green’ driving more than ever before.

New research from leading comparison website MoneySuperMarket has delved into the mind of the consumer to determine just how viable this switch is. The research reveals factors such as the true cost of making the switch to electric driving versus driving a petrol or diesel car. It also explores the number of charging points currently available in major UK cities, a key factor in the viability of the plan to turn the UK electric.

The research also highlights the lack of knowledge currently being shared on the benefits of driving electric and public concerns about the feasibility of the 2040 ban.

Is the British Public Prepared?

With 49% of the British public stating that they have never considered purchasing an electric or hybrid car, it appears that education and pricing are crucial factors in the public’s apprehension to go electric. Some of the key findings from the research include:

51% of people surveyed stated price is currently the biggest barrier to them buying an electric or hybrid car.

Nearly 30% of people don’t buy electric or hybrid cars due to lack of knowledge of how they work.

62% of people don’t know that the Government offers discounts and grants on buying an electric or hybrid car

The True Cost of Driving Green

Beyond public opinion, cost is a major factor in the sustainability of the plan to move to electric and a concern for the public as a whole. Fundamental findings on the cost of buying and running electric, petrol and diesel cars revealed that, although cheaper to run, electric cars are not the most cost-effective motor to own overall. Some findings on the cost of running each car type include:

While the upfront costs of petrol vehicles were the lowest, the average running costs of an electric car are 20% cheaper than diesel and petrol engines, with an average saving of £2,109 across 6 years.

Filling up your petrol or diesel car is 5 times more expensive than electric.

Petrol cars boast the lowest average insurance premium (£697.19), whilst electric remains the most expensive to insure at £923.

If drivers switch to electric in 2018, they’ll save almost £8,000 on running costs by the time the ban is enforced.

Taking Charge in 2040

The government’s plan to turn the UK into a nation of electric car drivers rides not only on the cost of the cars over their lifetimes, but also on the feasibility of fuelling these vehicles. Having an appropriate number of public charging points will be key for the success of Britain’s electric switchover.

Data collected on the number of electric car charging points available to drivers in UK cities bring into question whether the UK as a whole is truly ready for an electric revolution. Whilst the capital performed well, with 210 charging points in Central London, other cities fell short. Large cities such as Liverpool and Cardiff had fewer than 10 raising questions over the preparedness of major UK cities for 2040.

For the full details on the true cost of driving green and how the UK is shaping up, click here to see the full research.

Methodology

To create an average for each fuel type, an average was taken of 3 of the top selling cars from petrol, diesel and electric respectively. Data for the upfront costs of each of the 9 vehicles were taken from their brand’s site as well as costs of servicing, road tax and MOT prices. The ‘lifetime’ was measured as 6 years with the average mileage of 7,900 miles a year entered onto the site nextgreencar.com to determine the fuel costs. The overall costs for each model were made into 3 separate averages for electric, petrol and diesel fuel types. The models used included:

-    Ford Fiesta Style – Petrol
-    Volkswagen Golf – Petrol
-    Ford Focus – Petro
-    Skoda Superb Estate – Diesel
-    Vauxhall Astra Hatchback – Diesel
-    BMW 3 Series Saloon – Diesel
-    Renault Zoe Signature – Electric
-    Nissan Leaf Acenta – Electric
-    BMW i3 – Electric

In order to find out the number of electric car charging points per city, the site www.zap-map.com was used.

(Source: MoneySuperMarket)

Car manufacturer Tesla held a special event on Thursday evening in Los Angeles where they released 2 new electric vehicles to the market. Images of the new Tesla Roadster can be seen here.

As expected, the first of these vehicles was their new articulated lorry.  The second however was the more surprising given that there were no rumours leading up to the event of the supercar they unveiled; the new Tesla Roadster.

This new supercar has been deemed the fastest production car to date, which Elon Musk described as “a hardcore smackdown to gasoline cars”.

Everything about this car looks incredible, right down to the way they presented it. In a very nice touch they drove it out the back of one of their new lorry’s.

The statistics of the car matched the spectacular presentation as well. The baseline stats are as follows:

The good news isn’t limited to the looks and the stats, as pricing for the car is not that expensive considering it’s faster than any other car on the market today and looks stunning too. Sales will start in 2020 at £151,600 ($200,000) which is a great deal cheaper than a Bugatti Chiron coming in at £1.8 million ($2.5 million).

In the typical Elon Musk spirit, Tesla was offering rides to anyone who put down a $50,000 deposit on their new Roadster, and as you can imagine a number of fans have already taken him up on the offer.

As mentioned, the new Roadster was not the only electric vehicle they introduced at the event. A new articulated lorry was also unveiled, which sets an entirely new standard for the industry. The lorry has been dubbed the “Tesla semi”.

It features an array of awesome features that have never before been seen on a lorry, among these are the thermonuclear explosion proof glass, lane keeping technology, advanced autopilot and a design that makes jack-knifing “impossible”.

Although these features are advanced for technology seen in a lorry, the speed is not something that can go un-mentioned either. The statistics are as follows:

The production of the Tesla Semi will start in 2019, a year before the production for the Roadster begins.

With these 2 unveilings however, one major question arises; do they have the infrastructure to keep up with demand despite their previous production issues?

 

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