Michelin
9
Salary Sacrifice
4
Honda gets ahead of the game
13
Contents Summer Edition
2013
Aled Williams
A word from the Director
As our newsletter evolves, we hope it brings you informed industry news, and lets you know what we have been up to here at Days Contract Hire. Another busy time for us with the new website well underway, the client dashboard is weeks from launch and our new software is fully implemented here in the office. Thank you once again for your continued support. We hope you enjoy the added benefits in which we aim to deliver to you through our quality of service.
Salary Sacrifice
Specsavers
Find out more about the Salary Sacrifice scheme
eVouchers for corporate customers go live
4-5
Michelin
Staff News
Tyre labelling explained
Apprentices play a key role at DCH
10
8-9
Charity
Honda
Race for Life, 10 Peaks Challenge & Ty Olwen
The Civic 1.6 makes a return
11
13
Bray Leino
What we can offer
Hear what our clients have to say about us
Find out about our products and services
15
7
Procurement For Housing Event
Flexi Hire
See photos from the Procurement for Housing exhibition
Find out more about Flexi Hire
16
3
What is
Salary Sacrifice? Salary Sacrifice works by allowing employees to give up part of their salary under their terms of employment, in return for their employer providing the employee with a non cash benefit, such as a car
Salary Sacrifice Why salary sacrifice works for cars The CO2 emissions based taxation of company cars and use of taxation to influence driver choice, has encouraged manufacturers to vastly improve engine efficiency. By lowering the CO2 thresholds several manufacturers now produce a range of fuel efficient, environmentally friendly cars. With very low taxation of the most efficient company cars, the highest rate of income tax at 45%, and increasing rates of National Insurance Contributions (“NIC”), the “tax gap” that originally launched the company car thirty years ago has now been largely restored. As many company cars now attract a tax charge based on only 10% of their list price, there is a significant difference between the taxation of salary and company cars. With the corporate discounts available to fleet operators, once again company cars represent a very cost effective, and tax efficient way of remunerating staff.
Benefits to the
Employee
Brand new, fully maintained car No deposit
Increasingly, employers are offering low emission company cars via salary sacrifice as a means of recruiting, retaining and rewarding staff.
Tax and NI savings
How does it work? 1.
Benefits to the
The company offers employees the option of a company car
2. The employee selects a vehicle, decides how many miles they will drive per annum, and how long they would like to keep the car
Employer
3.
The company advises the employee how much salary they will have to sacrifice and outlines the other terms and conditions of the agreement, which typically includes maintenance, insurance and road fund licence
4.
The employer arranges for the car to be delivered and the employee enjoys the use of a brand new car
5.
The employee’s salary is reduced by the agreed amount and their tax code adjusted following notification to HM Revenue & Customs
Want to know more about how you could participate? Call our office on 0845 815 0019 or email enquiries@days.co.uk
4
Enhances green credentials Places company as an employer of choice Reduction to grey fleet Reward, recognition, recruitment and retention
The benefits of
Salary Sacrifice This tax-efficient arrangement offers benefits to both the employer and its employees. Employer benefits Most schemes aim to be cost neutral which enables them to offer a very attractive proposition to their employees that adds real value to the remuneration package offered, at no extra cost to the employer. Hence: 1. As employees seek out employers that offer a reward package that fits with their lifestyle, a well run car scheme can promote the company to ‘employer of choice’ status 2. Salary sacrifice for cars can help employers to maximise the ‘total reward value’ of their benefit package thereby increasing employee motivation, recruitment and retention 3. As salary sacrifice works best for low emission cars salary sacrifice should also enhance the employer’s ‘green’ credentials 4. As participation grows, salary sacrifice should mitigate health and safety concerns as employees will drive newer, well maintained company cars Employee benefits An employee will:
Taken together, employees may often save as much as £100 per month compared to a personal agreement, as shown in the following example. Example An employee earning £30,000 per year wishes to sacrifice salary in exchange for a VW Polo 1.2 TDi Bluemotion.
The gross cost for the employee, including maintenance and road fund licence, is £250.18 per month, which is taken as a salary sacrifice. The car’s list price is £15,310 and its CO2 emissions are 91 g/km, giving a benefit-in-kind scale charge of 13% (after applying the 3% supplement applied to diesels), which is reflected in a reduction of the employee’s tax code.
The employee’s payslip before entering the scheme is set out below: Name
Office
NI Number
J Button
London
AB123456C 944L
Pay and allowances Salary
£2,500.00
Tax code
Period
Date
2
31/05/13
Deductions
Period
Tax year
Tax
£342.67
£685.34
NI - employee
£222.48
£444.96
Total pay and allowances
£2,500.00
Total deductions £565.15
£1,130.30
Taxable pay
£2,500.00
Net pay
£3,869.70
£1,934.85
The employee’s payslip after entering the scheme is set out below: Name
Office
NI Number Tax code
Period
Date
J Button
London
AB123456C 745L
2
31/05/13
Deductions
Period
Tax year
Pay and allowances Reference Salary
£2,500.00
Tax
£325.80
£668.47
Sacrifice
(£250.18)
NI - employee
£192.46
£414.94
Total pay and allowances
£2,249.82
Total deductions £518.26
£1,083.41
Taxable pay
£2,249.82
Net pay
£3,666.41
Revised Salary £1,731.56
1. Have access to a brand new, fully maintained, fuel efficient car (because salary sacrifice works best for environmentally friendly cars, fuel costs will be significantly reduced)
The employee’s take-home pay has been reduced by £203.29 but in return they have the use of a car that costs £250.18 per month, a saving of £46.89 per month.
2. Not have to pay a large deposit, borrow money or enter into a regulated, formal finance agreement
As the employer is able to negotiate significant purchasing discounts that are not available to individuals, you should bear in mind that the cost of a comparable Personal Contract Purchase or Personal Contract Hire agreement is likely to be greater than the £250.18 per month sacrificed by the employee.
3. Benefit from significant income tax and NIC savings, as well as discounts available as a result of the employer’s corporate purchasing power
For example, to lease this car via a Personal Contract Hire agreement would cost around £300 per month, so really the employee saves approximately £97 per month, even before taking account the lower running costs associated with a modern, fuel efficient car.
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Employee eyecare at the touch of a button - eVouchers for corporate eyecare go live Specsavers Corporate Eyecare today launches its eagerly awaited online eyecare voucher system. eVouchers will tranform the way eyecare is purchased, allocated and managed, maximising efficiency for employers and their employees. From today, HR managers will be able to place orders, allocate vouchers to relevant members of staff, and review real-time redemption reports online, for all vouchers including VDU, driver eyecare and safety eyewear. The entire process can be completely paperless if employers wish: allocated vouchers can be emailed directly from the system to the employee, who can redeem their voucher at any Specsavers store to obtain their eyecare entitlement. Employees can even use their smartphone to do so. There will be no extra cost for the eVouchers or the supporting management system. There are, however, expected to be significant savings for employers in terms of time, cost and efficiency. The
system
is
user-friendly,
flexible and offers the ability to track redemption of vouchers and log employees’ requirements and the date of their next scheduled examination. It is even possible to generate automatically populated invoices from the system, which can be printed, or emailed directly to the finance department. The minimum order is just five vouchers, however, vouchers no longer have to be purchased in multiples of five, any number of vouchers over five can be ordered. Additionally, employers will now be able to save money by simply reprinting or re-sending lost eyecare vouchers to employees, rather than having to reissue a new voucher. Jim Lythgow, director of strategic alliances at Specsavers Corporate Eyecare, says: “As the largest opticians in the UK, it is right that we should not only be offering the best service but also the best technology to our clients. Research has shown us that the majority of employers want to be able to implement employee benefits
online and that they believe their employees would prefer this opion too. We are delighted, therefore, to be able to offer eVouchers to our clients, along with a robust implementation and administration system, which will further our already simple and efficient voucher offering.” Research results Specsavers Corporate Eyecare has carried out research into the opinions of employers: • 79% of employers believe time savings are a major benefit of using online systems to implement employee benefits •
76% appreciate ease of use
• And 70% are attracted by the paperless option as it saves money and is more environmentally friendly Jim Lythgow continued: “It is important to point out that our paper-based voucher system will still be fully available and supported for any employers who wish to continue to use it.”
7
Days drivers will do well to book ahead for tyre appointments Michelin is urging Days Contract Hire drivers to plan ahead and book appointments for tyre replacements to avoid unnecessary waiting times and guarantee stock availability. Advances in tyre technology combined with car manufacturers developing new models has led to a sharp rise in the number of tyre sizes and types now available – in the 10 years that Days Contract Hire has had a full Michelin tyre policy the number of product lines the premium tyre manufacturer offers has doubled from 400 to 800, with an additional 275 lines of cold weather tyres on offer. With large ranges available across the market, fast-fit suppliers are unable to stock all tyres at all times, meaning company car drivers who arrive unannounced can be inconvenienced either by having to fit a second or third choice tyre, or by needing to return at a later date. Michelin’s Head of Fleet, Dave Crinson, believes there needs to be a wholesale shift in the way drivers view tyre appointments, and that the UK fleet industry can learn lessons from Europe where company car drivers book tyre services in advance as a matter of course.
Crinson says: “In this country we are fortunate enough to have a wide choice in the items we buy – from computers to furniture or even cars. And in the majority of cases, if people want a specific or unique item they know not to expect to walk into a store and instantly get what they want. It is my firm belief that people need to start thinking of tyres in this way. “It’s unrealistic to think that every tyre dealer will have every single tyre line in stock at all times and for fleets there are consequences in terms of the fulfilment of tyre policies. Unless drivers give advance warning, they jeopardise their chances of getting their first choice tyre.” He added: “Days Contract Hire is a valued customer of ours and has a full Michelin tyre policy because of our proven track record when it comes to safety, fuel efficiency and longevity. To ensure drivers can adhere to that policy we would recommend booking ahead with your chosen national service provider. ATS Euromaster, to avoid disappointment and reduce any unnecessary interruptions to the working day.” ATS Euromaster’s Group Sales Director,
Peter Fairlie, says drivers are welcome to call ahead and that his team is looking to set up an online booking system for tyre appointments for the leasing industry. He said: “We are currently working on a project to offer lease vehicle customers the ability to book a tyre fitting appointment in our centres online. It is still early days, but we hope to add this to our range of available services later this year. “Being able to offer pre-booked appointments is about making the process hassle free for customers, and ensuring we are always ready with the right quantity, brand, size and speed rating of tyres, in the right location, at the right time.” Michelin’s new online Tyre Manager tool has been designed to help drivers track how their tyres are wearing and predict when they will need to be replaced. Michelin’s Crinson added: “This tool could be particularly useful for Days Contract Hire drivers as it will help them budget more effectively and plan ahead for maintenance work. That could again mean unexpected and lengthy disruptions will be avoided, which is important for any business.” To use Michelin’s tyre manager tool visit www.mymichelin.co.uk/tyre-manager
Michelin offers us extra Michelin is offering Days Contract Hire drivers and their friends or relatives a free Michelin Safety Kit worth £50 when they buy two or more Michelin tyres, as part of an exclusive offer. The kit, which contains a tyre inflator, an umbrella and a warning triangle, and comes in a Michelin storage bag, will help ensure Days customers and loved ones can be safe on the roads. To redeem this offer please speak to your Days Contract Hire Account Manager, and when it’s time to change your tyres don’t forget to book in advance to guarantee the availability of your Michelin tyres!
9
Race for Life The proud team
Race for Life Almost there...
Kayleigh Lilleyman
Race For Life £600 raised
Rebecca Pridmore
STAFF NEWS
Ty Olwen £1500 raised to date
We have two new starters on the team; Rebecca Pridmore and Kayleigh Lilleyman. Rebecca joined the team in April as an Apprentice Accounts Clerk. Rebecca is studying towards her AAT Level 3 Diploma whilst assuming the role of our internal cashier. Kayleigh, who joined in May, is an apprentice Administrator, studying towards her NVQ Level 3 in Business Administration. Kayleigh works in the purchasing department assisting with the vehicle order and delivery process. Days Contract Hire has had continued success in employing apprentices over the last 15 years. Seven key members of our staff were originally employed as apprentices and are now an integral part of the team. Sharon Crocker has been with the business for 15 years and has gained knowledge and experience in a number of roles and is today working as an integral member of the Client Support team alongside the Sales Manager and his clients. Jordan Gibbs is one of the newest members of the team and her maturity has allowed her to progress quickly from her apprenticeship to Client Support working closely with our Sales team and managing the client experience. Lauren Begley joined us at the age of 16 and has moved through administrative roles to become Purchasing Supervisor spending over £35m per year on vehicles and managing the Purchasing team. Sarah Morgan has been a member of the Purchasing team for 3 years and is responsible for managing clients expectations on delivery of their new vehicles whilst organising our dealer network to ensure our clients new vehicle experience is as high as possible. Jay Lovell has been instrumental in the development of “Days Flexi Hire”. Over the past 4 years he has increased turnover from virtually zero to nearly £1m per annum. He is also now supporting the sales team with a strategy to help clients with other services such as Driver Licence Checking and Accident Management. Zemlia Rhead has completed her AAT level 4 qualification and is now a valued member of the Accounts team, managing credit control for over 400 clients. Nicki Simpson joined us at the age of 16 as part of our Accounts team, 13 years on he now works for the Group IT department and has recently been pivotal in the implementation of our new software system, a massive undertaking made easier with Nicki’s understanding of the business and software functionality.
10
Race for Life Crossing the finishing line
10 Peaks Challege Climbed by James Dainton
James Dainton Raised £450
The 10 Peaks Stunning views
CHARITY
FOR
Days Contract Hire strives to do its best to fundraise for charities, and the last few months have been no exception. Caroline Wright, Caroline Flynn, Louise Godfrey, Jordan Gibbs, Lauren Begley and Zem Rhead have teamed together to run the Race for Life event in Swansea raising over £600 for Cancer Research UK. James Dainton climbed the 10 Peak Challenge at the Lake District and raised £450, his team raised a total of £3000. The course covers approx. 73 km with over 5,600m of ascent. One of the UK’s hardest one day ultra distance events!
Ov
e ra r is £4 in ed 00 th fo 0 e r ha ye pa cha s ar st ri be s! fe tie en w s
Our nominated charity, Ty Olwen has received over £1500 thanks to the office’s continued efforts in 2013.
Honda Honda gets ahead of the game
Class leading, tax busting
With best-in-class environmental performance of just 94 g/km CO2 emissions and combined fuel economy of 78.5 mpg, the appeal of the all-new British built Honda Civic 1.6litre i-DTEC diesel is obvious. Thanks to the outstanding efficiency of the 120PS engine, drivers pay low BIK of 13% and have a monthly tax liability from just £42 (20%) or £84 (40%). The Civic’s e x c e p t i o n a l refinement and ‘made in Britain’ quality means solid reliability is an added benefit.
For something bigger and more versatile, the fourth generation British built Honda CR-V is a class apart. With a powerful 2.2-litre i-DTEC diesel under the bonnet, fourwheel drive transmission for go-anywhere capability, and environmental performance figures of 50.4mpg and 149g/km, the feature-packed CR-V offers a comfortable car-like driving experience, and coming in Q4 2013 the new CR-V 1.6 Diesel with emissions below 120 g/km CO2. Honda
has
been
at
forefront of hybrid vehicle research and development for more than two decades, and there is no finer example of its achievements than the stunning CR-Z coupé. The world’s first sporty hybrid has been refreshed for 2013, with more power (137 PS) and an even more dynamic drive. Stunning looks, emissions from just 116g/km and fuel economy from 56.5mpg highlights how the cost-conscious driver can have their cake and eat it.
the
13
How companies manage the business process to produce an overall positive impact on society and the environment
Corporate Social Responsibility
Simple Steps to a Greener Office Reduce, reuse, recycle Use electricity wisely Use environmentally friendly products Aim for a paperless office Use organic coffee and re-useable mugs Encourage smarter commuting Produce double sided documents
CO2 Emissions Legislation Came into force in April 2013 for writing down allowances and lease restrictions. Every company car over 130g/km CO2 emissions will face a restriction on the amount that can be written down for tax purposes. This will affect the overall cost of these cars. In addition, the financial element of contract hire leases will have a restriction of how much can be offset against corporation tax. Top tip - ensure you amend your car choice policy and set a maximum CO2 emission of 130g/km.
Fuel Costs Fuel prices have increased by approximately 38% since January 2010 and this trend is set to continue. Unit costs per litre are heavily influenced by duty tax and VAT so concentrating on behaviour management of your drivers will have the biggest impact on cost. Top tip - ensure refuelling at supermarkets and ban the purchasing of high octane fuels.
Business Mileage HMRC has been auditing business mileage claims procedures to ensure they are robust and not open to inflated claims. HMRC is actively looking at business organizations and, if the private/business mileage split recorded by your drivers is more than 40/60, then you are at risk of an audit by HMRC. Top tip - ensure that your mileage auditing procedures are robust and accurately audited.
Duty of Care It is believed that as many as one in three road fatalities/serious injuries each year are from business mileage journeys. While there is no legislative requirement for business to report at work driving incidents, it is believed that responsible employers should adopt vigorous procedures to record such incidents as ‘RIDDOR’. Top tip - consider adopting a post-incident reporting mechanism including a one-to-one interview with the driver.
DCH is proud to hold the environmental accreditation ISO 14001- proof that we take our responsibility seriously and aim for a greener office.
Client Testimonial “Being an integrated marketing agency, we are fully aware of a brand or company’s reputation. Days Contract Hire was originally referred to us by an employee who had experienced their excellent and responsive customer service mantra. We’ve never been disappointed, far from it! I wouldn’t be surprised if the majority of enquiries are from “delighted customers” who value their ability to take away the stress of managing a car leasing fleet. Days Contract Hire respond quickly and efficiently to queries every day.” -Shaun Cooper, Business Partnerships Director DCH have been managing Bray Leino’s fleet of 100 vehicles since 2004.
Bray Leino offer a broad set of expertise across design, advertising, social, data, PR, direct response and events. To find out more, visit brayleino.co.uk
Changes to tax disc procedure From 21st July 2013, tax discs will be centrally printed and distributed from DVLA Swansea, eliminating the ability for dealerships to order and collect blank tax discs from local offices themselves. What this means to your fleet Overall this change should not have any impact to our clients. We expect all delivery dates to be managed by both us and the dealers to facilitate the arrival of the vehicles and tax disc on time as arranged. However, turnaround dates could be affected and lengthened as a result of this change. Tax discs will continue to be in the vehicle upon delivery. However, if this is not the case, please do let us know immediately on 01792 222 149, as we do expect teething problems with this new national system!
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ACCIDENT MANAGEMENT
What Can
FUEL CARDS MOTOR INSURANCE DATABASE TELEMATICS
DAYS CONTRACT HIRE
Offer?
DRIVER LICENCE CHECKING
Accident Management
Driver Licence Checking
Whether the accident is fault or non-fault, our Accident Management service will manage the insurance claim and repair of your vehicle from first notification to completion of repair
Check your drivers’ licence entitlements and current endorsements
To keep your driver on the road, a like-forlike hire vehicle is provided for non-fault accidents. Where your driver is at fault, we ensure a hire vehicle is supplied via our Flexi Hire service, or a courtesy car is provided by the garage Free of charge for the core service; only chargeable items are uninsured loss recovery and “notification-only” claims
You set the frequency of the checks – either on a ‘one rule for all’ basis or different frequencies depending on number of current points Flag up drivers who have previously been banned or convicted of drink or drug-related driving offences Reduce the risk of allowing unlicensed or banned drivers using your vehicles Monthly reports showing current points for each driver on your fleet
Fuel Cards Allow your drivers to purchase fuel at 8,000 sites in the UK including all oil company, supermarket and motorway brands
Motor Insurance Database
Weekly, consolidated HMRC-approved VAT invoicing
DCH will provide & remove vehicle registration details to the MID
Daily suspect transactions report
Remove the administrative burden from your organisation
Telematics Award-winning vehicle tracking system Installation to new and existing fleet, anywhere in the UK Internet-based interface – log in from anywhere and see what your fleet is doing in real-time Keep track of your fleet utilisation and drivers’ hours, receive monthly MI reports, replay routes your driver has driven Can assist you in fulfilling your duty of care, health and safety and working time directive obligations Monitor driver habits and address concerns, such as harsh acceleration and braking – this can lead to a reduced accident rate and lower fuel bills For more information on any of our ancillary services, please contact Jay Lovell via email jaylovell@days.co.uk or call 0845 815 0019
Online and scheduled reporting available
CONTRACT HIRE Experts in whole life costs, we are the best people to speak to, to assist you in making informed decisions about the make-up of your fleet. We can advise you on the best vehicles to save you money over the life of your contract.
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FLEXI HIRE When you don’t want the long term commitment of Contract Hire, or require an extra vehicle for the day, Flexi Hire is the solution. We offer sliding scale daily rates, so the longer you keep it, the more cost effective it becomes.
FLEET MANAGEMENT If you lease vehicles on non maintenance agreements, or own vehicles yourselves and pay for your services and tyres on a PAYG basis, we could take over the maintenance of these vehicles, relieving you of administration burdens, and help
FLEXI HIRE
STANDARD FLEXI HIRE Perfect for short-term spot hires
FLEXI HIRE MONTH OR MORE Smart, new, low-mileage vehicles for longer hires, pre-contract hires and new starters
Standard Flexi Hire Flexi Hire is Days Contract Hire’s rental management solution, designed to relieve our clients of the burden of organising and managing vehicle rental.
•
Vehicles for spot hire, one-way rentals (including airports), replacements for vehicles off the road, and temporary projects
•
Charged in 24 hour periods on a sliding scale daily rate
•
Unlimited mileage (up to 27 days)
As standard, we offer clients access to our online rental management system, which enables clients to make rental bookings, view and amend current bookings, obtain vehicle information and run reports, all in real-time. The system is web-based so it can be accessed from anywhere, and incorporated into your intranet if required.
•
Delivered anywhere in the UK in as little as 2 working hours
•
Cars, vans, specialist vehicles, 4x4s
We fully manage the damage claim process for our clients; ensuring suppliers’ claims are fully validated before approaching our clients for authorisation.
•
Vehicles for longer hires, pre-contract cars, new staff on probation
•
Minimum commitment only 28 days, after that you can terminate at any time
•
Guaranteed diesel if required, from Focus-size up
•
Generous mileage allowance – equivalent to 32,500 miles per annum
•
Fixed daily rates include maintenance and road tax
Our dedicated team, industry-leading software and partnerships with the biggest rental companies ensure that we can successfully take care of our clients rental needs.
We can also provide a single consolidated monthly invoice for any Flexi Hire bookings. We validate every rental invoice against the booking, so our invoice accuracy is second to none.
Flexi Hire Month or More
All existing clients of Days Contract Hire already have access to the benefits of using the Flexi Hire service. If you are a high-volume user, or have other specific requirements, please contact us to discuss in more detail how we can offer a bespoke solution to your needs. Please call Jay Lovell on 01792 222 182 or email jaylovell@days.co.uk for further information
Fleet Space Our soon to be launched dashboard ‘Fleet Space’ will allow our clients to have a global overview of their fleet with useful functionality such as obtaining invoice copies, receiving delivery updates, managing flexihire bookings and a running a host of fleet management reports. We will be advising you on the launch date soon!
A little quote inside
this space
Busy Bees... We have been busy little bees here at Days Contract Hire . For the second time, we attended Sandvik’s Defensive Driver traning day at Donnington Park. All queries were addressed by James Duke regarding vehicle specification, economy and personal taxation.
Where have we been? Following our successful inclusion on the Procurement for Homes Framework, DCH exhibited at the PfH Live Exhibition. Co-located with the CIH Housing Conference and Exhibition, the Procurement for Homes Live Exhibition brought together procurement experts, business leaders, academics, suppliers and housing professionals for three days of FREE masterclass seminars, supplier showcases and invaluable networking. In the PfH Live Exhibition, up to 100 leading suppliers and partners showcased their products and services. They were on hand to discuss how you can make efficiency gains. Days Contract Hire was on hand to discuss our business to exhibitors and visitors alike.
PfH Live 2013 DCH Stand Roger Kelly and Sharon Crocker supervising the Days Contract Hire stand at the PfH Live Exhibition
Days Contract Hire is not a new player in the public sector. We have been awarded two national frameworks this year, selected by our skills and expertise in this sector as well as the flexibility of managing bespoke fleets.
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PfH Live 2013 The event in full swing
The Great Multitasking Lie
It’s common sense that texting whilst driving is dangerous behaviour, but people don’t seem to understand the risk of simply speaking on the phone whilst driving. Below are the myths revealed!
Myth # 1
Myth # 2
Talking to someone on a mobile is no different to talking to someone in the car
Hands free devices eliminate the danger of mobile phone use during driving
Reality
Reality
Drivers distracted by mobile phones are more oblivious to changing traffic conditions because they are the only ones in the conversation who are aware of the road. In contrast, drivers with adult passengers in the car have an extra set of eyes and ears to help keep drivers alert of oncoming traffic problems. Adult passengers also tend to adjust their talking when traffic is challenging. People at the end of the phone cannot do that.
Myth # 3 Drivers can multitask
Reality Contrary to popular belief, the brain cannot multitask. Driving and talking on a mobile phone are two thinking tasks that involve many areas of the brain. Instead of processing both simultaneously, the brain rapidly switches between the two cognitive activities.
Whether handheld or hands-free, mobile phone conversations whilst driving are risky because the distraction to the brain remains. Activity in the peratial lobe, the area of the brain that processes movement of visual images and is important for safe driving, decreases by as much as 37% when listening to language. Drivers talking on mobile devices can miss seeing up to 50% of their driving environments including pedestrians and red lights, they look but don’t see, this phenomenon is known as ‘inattention blindness’
Myth # 4 Drivers talking on mobiles still have a quicker reaction time than those who are driving under the influence
Reality Drivers using mobiles actually have slower reaction times than drivers with a 0.08 blood alcohol content. Drivers on a mobile can immediately eliminate the risk by hanging up!
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