Used car prices have risen consistently since lockdown began to lift in May – and the rate of growth has accelerated in recent weeks.
Auto Trader says the average price of a used car in early July was 4.4 percent higher than a year ago.
It means the average price has now edged up over the £15,000 mark, standing at £15,025 in early July.
This, Auto Trader says, is down to simple supply and demand: there are more customers than there are used cars in the marketplace, which is pushing prices up.
Surprisingly, it is volume brands – such as Ford and Vauxhall – that are leading the growth, with an 8.2 percent year-on-year increase.
Premium brand prices, in contrast, only grew 2.2 percent.
Prices for older cars also outpaced the average, with motors aged between 10-15 years growing 6.6 percent.
“Used car prices have seen sustained growth for more than 10 weeks and it’s clear this growth is accelerating,” said Auto Trader data director Richard Walker.
“Consumer confidence seems relatively robust too, with 82 percent saying they are ‘as confident’ or ‘more confident’ in being able to afford their next car than they were a year ago.”
Even though auction houses are starting to get back to business, enabling car dealers to restock, Mr Walker said there is no sign of consumer demand tailing off.
The marketplace is therefore encouraging retailers not to reduce prices just yet. Although as the figures show, many have already heeded this and are actually raising used car prices…
Ahead of its world debut on 4 August, Gordon Murray Automotive has revealed more details of the T.50 hypercar – including its incredible V12 engine.
With the brief to create ‘a Formula One engine for the road’, famed engineering firm Cosworth has created a 3.9-litre 65-degree V12 that revs from idle to its 12,100rpm redline in just 0.3 seconds. Maximum power of 663hp arrives at 11,500rpm.
With 166hp per litre, the T.50 boasts the most power-dense naturally aspirated engine ever. And the engine weighs just 178kg – another record for a road car.
‘Phenomenal engine sound’
As it that wasn’t enough, Gordon Murray promises the “best V12 sound ever”. The man with the McLaren F1 on his CV doesn’t do hyperbole.
“You can never get a great sound from a turbocharged engine,” says Murray. “The T.50 engine sound is going to be phenomenal. The intoxicating growl that drivers love is introduced as the throttle angle increases… then as you push towards the upper end of the rev range the V12 will sing like nothing else on the road.”
Oh, did we mention the T.50 has a six-speed, H-pattern manual gearbox? Start buying those lottery tickets now…
Taking on the Valkyrie
A statement from Cosworth reads: ‘Cosworth first worked with Gordon Murray during his time as technical director at the Brabham Formula 1 team. For the T.50, the UK-based firm has engineered the greatest naturally-aspirated engine ever designed for the road.’
That’s a curious statement, given that Cosworth also completed work on the 6.5-litre 11,000rpm V12 that powers the Aston Martin Valkyrie. Either way, hypercar buyers have never had it so good.
Aside from that engine, the T.50’s other defining feature is a large fan out-back, much like on his famous Brabham F1 car. Spanning 400mm, it will accelerate air from the underside of the T.50 and suck it to the ground. In theory, like the Brabham, it could also handle some of the engine cooling.
The technology has been refined with help from the Racing Point F1 team. The plan is to create the ‘most advanced and most effective aerodynamics ever seen on a road car’.
Inspired by the McLaren F1
GMA says the car will have six distinct aerodynamic modes, which optimise the fan as well as the performance of other active devices and underbody aero.
Aside from that, the T.50 is set to take everything that makes Murray’s 1992 McLaren F1, considered by many as the greatest supercar of all time, to the next level. This means the high-revving V12, a manual transmission, central driving position and a kerb weight of ‘less than 1,000kg’ thanks to carbon construction.
The engine will benefit from ram-air effect, which means the faster the car goes, the more power it can generate. In combination with a 48-volt integrated starter-generator system, it’ll put out 663hp in ‘Vmax Mode’.
Given the F1 held the road car speed record at 240.1mph for a number of years, we like the sound of that.
‘The purest possible form’
So what about the styling? If you look past the fan, it’s a refreshingly subtle thing. The silhouette and footprint is immediately reminiscent of the F1. As is the ram air duct up-top, flanking engine bay windows and wraparound cockpit. The fan means there’s no need for jutting spoilers, ailerons and slashed bodywork.
There’s a whiff of Ferrari in the rear lights and exhaust placement, and that’s no bad thing. We like what we see so far. Yes, even the fan.
“We were highly focused on achieving the purest possible form for the T.50, an objective we’ve achieved through world-first engineering innovations and active underbody aerodynamics,” said Gordon Murray. “We will reveal the completed design at the T.50 supercar’s global debut in May.”
Not long to wait
Just 100 people will be lucky enough to take delivery of a T.50. Customer uptake is reportedly encouraging, even at an entry price ‘in excess of £2 million’.
“We’ve been taken aback by the enthusiastic reaction of buyers from across the globe,” Murray continued. “The first customer deliveries will take place in January 2022, on schedule, with every customer who has already been allocated their T.50 receiving their car that year.”
Stay tuned to Motoring Research for more when the T.50 is fully revealed on 4 August 2020.
The government has announced new safety standards for taxi and private hire vehicles. This follows consultation with the trade, regulators and safety campaign groups in the wake of taxi and private hire drivers abusing their position of trust.
The Statutory Taxi and Private Hire Vehicle (PHV) Standards are designed to protect children and vulnerable adults. However, the government says that all passengers will benefit from the recommendations.
Local authorities will be expected to implement the standards to improve consistency in the licensing system, reducing the risk to children and vulnerable passengers. The key recommendations are:
Criminal record checks for drivers every six months
Safeguarding training for drivers
Considering the use of CCTV
‘Fit to transport passengers’
Transport secretary Grant Shapps said: “We know the majority of drivers provide an important and safe service for communities, but in light of appalling incidents in places like Rochdale, Oxford, Newcastle and Rotherham, more must be done to protect passengers from those who abuse their position of trust.
“That’s why we’re looking to licensing authorities to enforce these rigorous new standards, ensuring drivers are fit to transport passengers in a safe environment and to stop those who aren’t.
“We expect all licensing authorities to implement the standards and won’t hesitate to introduce legislation if they don’t fulfil their responsibilities to keep the public safe.”
In a 40-page document, the government labels taxis and private hire vehicles as a ‘high-risk environment’. By applying data from Greater Manchester and Merseyside across England, 623 sexual assaults per year are reported, it says. Common core minimum standards are required to regulate the industry, it follows.
Licensing authorities are expected to implement these recommendations ‘unless there is a compelling local reason not to’. The Department for Transport (DfT) will monitor progress, work with authorities not meeting their responsibilities and look to introduce legislation if necessary.
Motorway services operator Moto is trialling an 8p a litre fuel price reduction at three service stations – and if more motorists start filling up, the price drop could go nationwide.
Moto is the UK’s largest motorway service area operator, operating 47 forecourts across the country.
The trial is running at Frankley services on the M5 near Birmingham, Lancaster on the M6 and Donington Park on the M1 near Derby.
The 8p a litre price reduction matches the average price at local filling stations and is within 5p a litre of the average supermarket fuel price.
Unleaded will cost 111.9p per litre and diesel will cost 117.9p per litre.
So significant is the price reduction, Moto says it would reduce the cost of filling the average fuel tank by more than £4.
Moto chief executive Ken McMeikan said: “Times are tough, and we know from our customer insight that motorists want to see lower fuel prices to help them make their money go as far as possible.
We are hoping that, subject to a successful trial, we will be able to roll out these fuel price cuts to all our Moto-operated petrol stations.”
Cut fuel VAT
Moto’s chief executive Mr McMeikan (pictured above) has also written to Chancellor Rishi Sunak calling for a cut in VAT on fuel to match the VAT cut for the hospitality sector.
This has been reduced from 20 percent to five percent.
“A cut in VAT on fuel,” said Mr McMeikan, “would instantly put more money into people’s pockets at precisely the time they need to be travelling again for work, visiting loved ones and during the expected increase in staycations.”
Fuel duty currently accounts for 57.95p per litre of fuel, with 20 percent VAT added on top.
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Covent Garden has been named the least safe place to park your car in an analysis of 200 of the UK’s busiest car parks. Of the car parks in the top 10, three are in London and three are in Bristol.
The figures reveal a staggering 368 vehicle crimes per year in Covent Garden. That’s more than one a day.
Meanwhile, the car park at Exeter St David’s is the safest. There was just one recorded crime between April 2019 and March 2020.
Four out of the 10 safest car parks in the UK are attached to a railway station. This suggests a higher level of security at these locations.
USwitch, the company behind the research, looked at a range of vehicle crimes when collating the data. The list includes aggravated vehicle taking, theft of a motor vehicle, theft from a motor vehicle, interference with a motor vehicle, and theft from vehicle other than a motor vehicle.
Aside from Bristol, the least safe car parks are concentrated in the South East. On the other hand, there’s a wider geographic spread for the safest car parks.
Here is some advice on how to keep your car safe in a car park. The information is based on official guidance issued by the Met Police:
Lock your doors and close your windows
Secure the number plates and alloy wheels
Protect external items
Hide personal belongings and devices
Consider a comprehensive insurance policy for your car
Choose your car park wisely and prioritise well-lit areas
Never leave documentation in the vehicle
We’d also add the purchase of a steering wheel lock to the list. This highly visible security device could deter opportunist thieves. It’s also effective against keyless car thieves.
The average UK car insurance premium is £755 a year, so it pays to shop around. But beyond using a price comparison website, what can you do to reduce the cost of car insurance?
Firstly, never accept the renewal quote from your existing provider. There’s little reward for loyalty in the world of car insurance, so take a mercenary approach when your policy expires.
New research shows how the price of a car insurance policy can change when altering just one factor at a time. Some of the findings might surprise you.
Higher or lower car insurance?
Does reducing the annual mileage lower the premium? Yes, but the research by Moneyshake shows that reducing cover to 5,000 miles a year results in a discount of just £17.
Decreasing your voluntary excess to £250 will save you 25 percent. Increasing it to £500 or £1,000 could actually result in a more expensive policy.
Improving car security could increase the price. By adding a tracking device and locking wheel nuts, you’re modifying your car, which could result in a more expensive policy. Talk to your insurance provider.
A third-party, fire and theft policy could be 60 percent more expensive than comprehensive cover. You could save a massive £448 by going ‘fully comp’.
Drivers with a PassPlus qualification actually spend more on their car insurance.
Be careful who you add to the policy. Naming your spouse can save you 25 percent. However, adding a child to the policy could increase the premium by 524 percent. Moneyshake’s research revealed that some policies went beyond £5,000.
The cheapest cars to insure are the Nissan Micra, Volkswagen Up and Kia Rio.
Paying annually instead of monthly will save you £109 a year. On average, a premium paid by direct debit costs 15 percent more.
A no-claims bonus can save you £356 a year.
How to reduce your car insurance
According to Chill Insurance, here are some of the ways to reduce your car insurance premium:
Drive safely to build up a no-claims bonus
Correctly estimate the value of your car
Use an online broker to search the market for you
Estimate your mileage correctly. You’ll pay more for miles you don’t need
Young drivers will see their premium decrease when they move from a provisional to a full driving licence
This week sees the start of the UK’s first e-scooter rental trial, with the Tees Valley in the North East the chosen location.
A collaboration between the Tees Valley Combined Authority and shared transport company Ginger offers up 50 e-scooters now available to rent.
The pilot scheme follows changes in legislation by the Department for Transport, and will test whether e-scooters could become more widespread in the UK.
Testing times ahead
The initial rollout of the e-scooter trial sees 50 made ready for use in central Middlesbrough. The number will soon increase to 500, located across Teesside and Darlington.
To use one of the rental e-scooters, riders need to download the specific Ginger app to their smartphone. This letsthem reserve an e-scooter at their chosen location, then unlock it by scanning a QR code.
The e-scooters can only be used within the dedicated trial area. Riders have to pay £2 for 20 minutes, and must return the e-scooter to a special parking zone when done.
Legislation means trial e-scooters can be used on roads and cycle lanes, but not on pavements. Riders need to have at least a provisional driving licence, but insurance is provided as part of the rental payment.
Top speed is limited to 12.5 mph.
Keeping it legal
Research by GoCompare has found that internet searches for e-scooters increased by an incredible 376 percent during lockdown. However, GoCompare warns that only rental e-scooters inside specific trial zones are currently legal for road use.
Using a privately-owned e-scooter on roads, pavements, or cycle paths would still be against the law. Riders face a fine of up to £300, along with six points on their driving licence, if caught by police.
A number of other local authorities across the UK have already expressed an interest in hosting e-scooter trials. It means those wanting to ride one should wait until a pilot scheme appears near them.
A unique transport solution
British-based Ginger is responsible for ensuring the e-scooters are charged each day. The company will also look to introduce on-street docking stations as the pilot progresses.
Paul Hodgkins, CEO of Ginger, commented: “I strongly believe micro e-mobility offers unique solutions to today’s transport challenges. It is great that the Tees Valley Mayor and the Transport Secretary are making this public pilot the first in the UK, choosing to work with Ginger, a British innovator and transport provider.”
Tees Valley Mayor, Ben Houchen, added: “I have been a big fan of e-scooters for a very long time, and when the Government announced their plans to fast-track their introduction, it was obvious that our region should be the first trial area.”
Local authorities should make car parking free in order to encourage shoppers back to the High Street, new research has found.
More than 85 percent of motorists want local authorities to either lift car parking charges, or continue waiving them if they’ve already done so.
This could help High Street retailers who have been particularly badly hit by the coronavirus crisis.
Thousands of jobs have already been lost from shops, and thousands more are predicted to disappear in the coming months.
Encouraging shoppers back with the convenience and cost-savings of free car parking could help stem the losses, suggests the analysis by car supermarket Motorpoint.
Almost £900m is normally raised each year by local authorities from car parking fees. However, a collapse in High Street trade risks costing much more than that, which is why so many think lifting car parking charges would make sense.
It also follows official government advice to avoid public transport wherever possible.
Motorpoint CEO Mark Carpenter said the results “clearly show the strength of feeling that people have for their local High Street.
“While free parking in itself won’t draw people back to the shops, it will certain incentivise more people to make that trip into their local town.”
‘Tax doesn’t have to be taxing’. The words of Adam Hart-Davis in an old advertising campaign for HM Revenue and Customs. Maybe so, but car tax can be a confusing business.
Not that it’s called ‘car tax’ or even ‘road tax’. Although these are the common terms for vehicle taxation in the UK, it’s actually called Vehicle Excise Duty (VED). In short, VED is a tax on vehicle ownership.
It’s one of two ways the government taxes you for using a vehicle. The other is in the form of fuel duty. This is a tax on vehicle use. The more you use a car, the more tax you pay.
VED is different. It’s a fixed annual tax which is charged on every ‘mechanically propelled vehicle’ used or kept on a public road. Although some cars are exempt from VED, the only way to avoid paying vehicle tax is to remove the car from the road and declare a SORN.
Since March 2001, the rate of VED has been based on a car’s carbon dioxide (CO2) emissions. The lower the CO2, the less you’ll pay for VED. In 2010, the government introduced a new ‘first year’ rate of taxation, which was as much as £950 for the most polluting cars. This continues today and might be referred to as ‘showroom tax’.
The paper tax disc was abolished on 1 October 2014. Today, motorists can pay annually, biannaully or monthly.
Because the VED bands have changed so much, particularly since the introduction of rates based on CO2 emissions, it can be hard to work out how much tax you’ll pay. Here, we’ll attempt to cut through the tax jungle, helping you to see the wood from the trees.
Buying a new car
If you’re buying a new car, the first year of VED will be included in the price of the vehicle in the form of a ‘showroom tax’. There are three rates:
Diesel cars that meet the RDE2 standard and petrol cars
Only two types of vehicle are exempt from VED: electric cars and alternative fuel vehicles emitting up to 50g/km CO2. All other cars incur a rate of £10 to £2,175, depending on the CO2 emissions.
The ‘showroom tax’ covers the vehicle for 12 months. From year two, the rate drops to a flat rate of £150 for petrol or diesel cars, £140 for alternative fuel vehicles, or nothing for electric cars.
However, you have to pay an extra £325 a year for a car with a list price of more than £40,000. This is charged ON TOP of the standard flat rate for five years from the second time the vehicle is taxed.
In other words, a petrol or diesel car with a list price of more than £40,000 will cost £475 to tax from year two. There’s a £5 discount for alternative fuel vehicles, but the ‘premium’ tax was scrapped for new and existing electric vehicles in 2020.
Motorists paying this ‘premium’ tax for an electric car registered because 1 April 2020 will no longer have to pay the surcharge. The exemption is set to continue until 31 March 2025, as the government continues to encourage the purchase of zero emission vehicles.
Buying a used car registered on or after 1 April 2017
Because the ‘showroom tax’ is only relevant in the first year, the figures in the table above do not apply to used cars. That’s because all cars revert to the flat rate of VED from year two.
In other words, you’ll pay £150 for a petrol or diesel car, £140 for an alternative fuel car, or nothing for an electric vehicle. VED can be paid for annually, biannually or monthly, although there’s a small surcharge if you decide to pay biannually or monthly.
[av_table purpose=’pricing’ pricing_table_design=’avia_pricing_default’ pricing_hidden_cells=” caption=” responsive_styling=’avia_responsive_table’ id=” custom_class=” av_uid=’av-1252at1n6′] [av_row row_style=’avia-heading-row’ av_uid=’av-zx1uhhjm’][av_cell col_style=” av_uid=’av-yz112nte’]Fuel type (petrol, diesel, alternative or electric)[/av_cell][av_cell col_style=” av_uid=’av-xcpo9wya’]Single 12 month payment of VED in full[/av_cell][av_cell col_style=” av_uid=’av-x22bi2he’]Single 12 month payment by Direct Debit[/av_cell][av_cell col_style=” av_uid=’av-vhupim8i’]Total of 12 monthly payments by Direct Debit[/av_cell][av_cell col_style=” av_uid=’av-307r2p3m’]A single 6 month payment (half the entire VED)[/av_cell][av_cell col_style=” av_uid=’av-sophzez6′]Single 6 month payment of VED by Direct Debit[/av_cell][/av_row] [av_row row_style=” av_uid=’av-rt0d5y8i’][av_cell col_style=” av_uid=’av-q4m99x1u’]Petrol or diesel[/av_cell][av_cell col_style=” av_uid=’av-p3s27x1u’]£150[/av_cell][av_cell col_style=” av_uid=’av-notnbdaq’]£150[/av_cell][av_cell col_style=” av_uid=’av-mn2vdfki’]£157.50[/av_cell][av_cell col_style=” av_uid=’av-klacf2c2′]£82.50[/av_cell][av_cell col_style=” av_uid=’av-jmhkto9e’]£78.75[/av_cell][/av_row] [av_row row_style=” av_uid=’av-iy9csfte’][av_cell col_style=” av_uid=’av-htt63d02′]Electric[/av_cell][av_cell col_style=” av_uid=’av-fy7woufm’]£0[/av_cell][av_cell col_style=” av_uid=’av-ex05fedu’]N/A[/av_cell][av_cell col_style=” av_uid=’av-dij3nzte’]N/A[/av_cell][av_cell col_style=” av_uid=’av-ccbqn24y’]£0[/av_cell][av_cell col_style=” av_uid=’av-b7xvao0i’]N/A[/av_cell][/av_row] [av_row row_style=” av_uid=’av-9zoezs7m’][av_cell col_style=” av_uid=’av-8k8b1f6a’]Alternative[/av_cell][av_cell col_style=” av_uid=’av-7nklw042′]£140[/av_cell][av_cell col_style=” av_uid=’av-5fqrptzm’]£140[/av_cell][av_cell col_style=” av_uid=’av-4j5vs3rm’]£147[/av_cell][av_cell col_style=” av_uid=’av-2z3ed11u’]£77.00[/av_cell][av_cell col_style=” av_uid=’av-1n2hy0sy’]£73.50[/av_cell][/av_row] [/av_table]
Remember, the £325 ‘premium’ tax applies for five years from the second time the vehicle is taxed. You should check the original list price before buying a used car, because the difference between the tax on a car costing £39,999 and one costing £40,001 could be as much as £1,625 over five years.
Buying a used car registered between 1 March 2001 and 31 March 2017
The rate of VED for vehicles registered between 1 March 2001 and 31 March 2017 is based on fuel type and CO2 emissions. You can find the CO2 emission details on the car’s V5C registration certificate.
It’s worth paying close attention to the rate, especially if you’re looking at cars registered around the time of the switch to a new fee structure at the end of March 2017 and the beginning of April 2017.
Take a petrol or diesel car with CO2 emissions up to 100g/km and registered on 31 March 2017. The car is exempt from VED. The same car, registered a day later, could cost £10 to £135, depending on the CO2 figure. That’s because only zero emission cars are exempt from VED.
Buy a petrol or diesel car with CO2 emissions over 255g/km and you’ll pay £580 a year. In broad terms, a petrol or diesel car emitting up to 140g/km will cost the same or significantly less than an equivalent car registered on or after 1 April 2017. Anything beyond that figure will cost more.
*Includes cars with a CO2 figure over 225g/km, but registered before 23 March 2006.
Buying a used car registered before 1 March 2001
For cars registered before 1 March 2001, the rate of VED is based on the engine size. The cost is £165 for engines not over 1,549cc, or £270 for engines over 1,549cc.
The following vehicles are exempt from VED. In other words, it’s free to tax them:
Vehicles used by a disabled person
Disabled passenger vehicles
Mobility scooters and powered wheelchairs
Historic vehicles
Electric vehicles
Mowing machines
Steam vehicles
Vehicles used for agriculture, horticulture and forestry
It’s important to remember that you must tax a vehicle, even if it is exempt from VED. Failure to do so could result in a fine of up to £1,000. If you do not intend to use the vehicle, declare a SORN and remove it from the road.
Taxing historic vehicles
You do not need to pay car tax if your classic car was built before 1 January 1980. If you do not know when your vehicle was built, but it was first registered between 1 and 7 January 1980, you do not need to pay VED.
However, you must apply for a vehicle tax exemption to stop paying tax. This is called putting a vehicle into the ‘historic tax class’.
This is a rolling exemption scheme. You may be able to apply for exemption from 1 April in any given year if it was built before 1 January 40 years ago. In other words, a car registered in February 1980 will be classed as an historic vehicle from 1 April 2021.
What else do you need to know?
The VED is reviewed annually as part of the Budget. The combination of pressure to meet air quality targets and a shift towards electrified vehicles should mean VED remains free for electric cars. If nothing else, VED is likely to get more expensive for the most polluting diesel and petrol vehicles.
That said, there will be a point at which sales of new electric cars outnumber those of what we currently view as conventional vehicles. There’s no guarantee that zero emission cars will remain free of VED forever, but you should take advantage of the exemption while it’s still in place.
The new guidelines say car finance companies should automatically contact customers who have already taken out a payment freeze, asking if they can resume payments.
If they are able to do so, they should then work out a plan on how the missed payments can be made. If they cannot, payments can be frozen or reduced for a further three months.
Payment freeze extensions can be requested up until 31 October 2020. Those who haven’t requested a payment freeze up to now will can still do so up to 31 October 2020.
A ban on repossessions will also be extended until 31 October 2020.
“Our measures will ensure that people who are still facing temporary payment difficulties because of this pandemic continue to have access to the help they need,” said FCA interim chief executive Christopher Woolard. “However, if you can afford to start making repayments, you should.”
Even if they are only partial repayments, the FCA says it is in customers’ best interests to begin doing so.
