Inspection and maintenance: what every car owner should know

adminonFebruary 3, 2023April 6, 2023Leave a Comment

If you want to keep the residual value of your car as high as possible, you go to the inspection with the car according to the specifications in the checkbook. However, these and maintenance also ensure that road safety is maintained, an even more important aspect. What actually happens to the car during inspection and maintenance, and what are the differences between inspections??

The most important facts in a nutshell

The inspection not only secures the value of the car, it primarily serves the purpose of road safety.
New cars must be inspected after no more than 1.500 kilometers to the inspection to remove possible metal abrasion from the oil.
The small inspection usually refers to an oil change and checking the parts with increased wear and tear.
Inspections can also be carried out by independent specialist workshops, a commitment to the manufacturer is only justified in the case of leased vehicles.

What is the purpose of car maintenance?

A car consists of numerous parts that are subject to wear and tear. This includes, for example, the brakes. Worn brakes, in the worst case down to the brake discs, mean that the car can no longer be slowed down or brought to a standstill properly. The risk of accidents increases.

Other parts, such as oil filters, do not directly affect the road safety of the car. But they affect the life of the engine. Dirty oil filters adversely affect the optimal oil supply and can even lead to piston seizure.

During the actual inspection, the car is checked for possible defects. Maintenance, as the second step in the "inspection", ensures the road safety of the car and a longer service life.

Are there consequences if I do not drive the car regularly for inspection??

This question must be considered from two points of view. On the one hand, there are consequences in terms of the car's road safety, and on the other hand, in terms of residual value and service life. A well-maintained car will always show fewer signs of failure than a vehicle that has never seen the inside of a workshop. Not to mention road safety, because underinflated tires are just as dangerous as a steering wheel with too much play.

On the other hand, with a new car there are possible warranty claims against the manufacturer. If there is a defect and the owner cannot prove that he has complied with the inspection intervals, he loses the claims. In the context of a leasing contract he is even guilty of breach of contract, since he is instructed to keep the intervals at all costs. After all, it is not his car.

What happens during the inspection?

As part of the inspection, the car is checked for proper functioning. There is a lamp test, the windshield wipers are checked, the brake pads, the oil filters, the interior air filters, the play of the axles, in short, everything.

The goal of the inspection is to find out if the actual condition of the car matches the target condition. If there are deviations, the maintenance takes effect. Basically, depending on the mileage, maintenance work is always carried out, for example an oil change.

Which maintenance intervals are recommended?

The maintenance intervals depend on the manufacturer and vehicle type. Since the wear of certain parts depends on the mileage, the maintenance intervals are usually specified in kilometers, supplemented by the addition of "once a year" or "every two years". Usually, the maintenance intervals are 15.000 kilometers or 30.000 kilometers. Not every component of a car is changed every 15.000 kilometers checked. More and more cars use sensor monitoring of individual assemblies. Based on this, information is provided in the display, for example, when the brakes need to be replaced.

Major and minor inspections – the difference

The minor inspection focuses on an oil change. It also includes a check of the parts with a possible high wear, for example brakes. The minor inspection is usually carried out every 15 years.000 kilometers necessary. Compliance is recommended to ensure that the engine oil is always of the best possible quality.

The major inspection, which occurs at longer-term intervals, includes

Engine
Exhaust system
Gearbox
Axles
Bodywork
Electrical system
Wheels and tires

On the bodywork, for example, it is checked whether possible rust has affected load-bearing frame parts.

When does a new car have to be inspected for the first time??

This question cannot be answered in a general way, as it depends on the manufacturer. Usually, the first inspection of a new car takes place after 1.000 or 1.500 kilometers instead of.

It serves to ascertain that the car really is in perfect working order. Some parts in the mechanical segment have to "break in" before they can be tested for proper operation.

Particularly in the engine area, there is increased wear at the start, for example on the piston rings. This accumulates in the oil and can cause engine damage in the medium term. For this reason, the early first oil change is very important. However, the initial inspection also includes a check of all screw connections. It's not for nothing that you should retighten the bolts after changing the wheels after 50 to 100 kilometers.

Can I freely choose the workshop?

Court rulings have repeatedly confirmed that an inspection can be carried out by a specialist workshop. The requirement to visit a workshop of the manufacturer is not given.

However, this does not apply to leased vehicles. The lessor is entitled to name a specific workshop that can carry out the inspection. However, the term of the authorized workshop usually applies. If you buy your car in Munich but live in Hamburg, you will hardly go back to Bavaria for an inspection.

What costs do I have to expect for the inspection??

This question cannot be answered universally either. The costs depend on which maintenance work has to be carried out. A minor inspection costs between 200 and 400 euros, while a major inspection is considerably more expensive.

However, a distinction must also be made as to where the inspections are carried out. Large workshop chains offer more favorable prices than the manufacturer's authorized workshop. Independent, small workshops can also carry out the inspection without losing warranty claims and usually also calculate with lower hourly rates. In the case of spare parts, they also often do not use the part with the company logo on the packaging, but so-called "white goods". For example, for the Volvo 760 GLE, the much cheaper VW parts could be used in the engine, since the engine was identical in construction to that of the VW bus. Volkswagen products are mass-produced by third parties and are also sold without a name.

Inpatient treatment in a hospital cannot always be avoided. A suitable emergency plan ensures that the time in hospital remains as stress-free as possible for oneself as a patient, but also for one's own family.

An inpatient stay in a hospital is a less than pleasant affair for most patients. Planning ahead at least helps to mitigate or even completely avoid organizational, but also personal problems that a hospital stay can bring with it. Two guides can help in this regard.

Two brochures offered free of charge explain, among other things, the measures patients can take themselves to ensure smooth and stress-free inpatient treatment at the hospital. The new 55-page "Hospital Guide," which can be downloaded from the Federal Ministry of Health, is particularly comprehensive. Among other things, it provides information on the rights and obligations of a hospital patient, for example, the extent to which patients can choose a hospital and what the individual has to pay for a hospital stay.

In addition, there is a separate chapter on how to prepare for a hospital stay. The downloadable 12-page checklist from Weisse Liste gemeinnutzige GmbH, a project of the Bertelsmann Stiftung and the umbrella organizations of major patient and consumer organizations, also contains concrete tips on what to consider during a stay in a hospital.

When away from home

Difficulties that can arise due to your own absence from home can often be avoided, for example, by sensible advance planning. Among other things, it is important to specify who will take care of the children, household, pets and/or houseplants and/or empty the mailbox in this case. Early on, ask eligible relatives, friends and/or neighbors if they would take over these tasks in case of emergency.

Under certain conditions, single parents and families with children under the age of twelve can apply for pro-rata coverage of the costs of household help from the statutory health insurance fund. One criterion is that a parent with statutory health insurance must go to the hospital and no other person living in the same household can care for the child during this time.

If you plan to stay in the hospital, you should inform your family, friends and neighbors as well as your employer in good time about the time and duration of your stay in the hospital. Also, postpone or cancel private and/or professional appointments that fall during this period.

So that formalities do not become a problem

For smooth registration at the clinic, you should carry your ID card, medical hospitalization card and health insurance card for those with statutory health insurance or address and membership number of private health insurance for those with private health insurance.

Among other things, the name and address of the family doctor are also important, as well as existing medical documents, such as X-rays, findings, X-ray, vaccination and allergy passports, but also a list of medications that have been taken regularly so far, as well as previous illnesses and operations. As a rule, the contact details of a close relative or an authorized person are also requested.

Anyone who has a living will, which specifies, among other things, which medical measures are to be carried out or refrained from in the event that one is no longer able to communicate this oneself as a patient, should point this out during the application process.

What personal items to bring

When it comes to the personal items you want to take with you to a hospital stay, you should limit yourself to the essentials. For a week's inpatient stay, experts recommend, among other things, bringing sufficient clothing such as underwear, socks, nightwear and tracksuits, a bathrobe, a pair of slippers and a few washcloths and towels.

Also take the personal care and hygiene items used in everyday life, from toothbrushes and hair shampoo to shaving utensils, combs, skin cream and hair dryers, as well as personal aids such as glasses, a walking aid or hearing aid. Whether a smartphone may be used in the patient's room, for example, for making phone calls or surfing the Internet, should be checked with the respective hospital.

In some clinics, special prepaid cards must be purchased for phone and TV use. In most hospitals there is also a kiosk where newspapers or consumables can be bought. That's why it makes sense to take small change with you. On the other hand, you should refrain from taking expensive jewelry, large sums of money, and car and front door keys with you. If this is not possible, one should ask the clinic administration for a safekeeping for the valuables.

Cost protection and more comfort

People with statutory health insurance who would like to be treated optimally and accommodated comfortably as a hospital patient without financial risk can protect themselves accordingly with a supplementary hospital insurance policy. However, it is important that such a policy is taken out even before a hospital stay is planned.

That's because most hospitals offer optional services, such as accommodation in a single room instead of a shared room and/or treatment by a chief physician, for an additional cost. Depending on what has been agreed in a supplementary hospital policy, the private health insurer will cover the additional costs for such and other optional services.

If you are a patient and also have hospital per diem insurance, you will receive a pre-determined amount for each day you were an inpatient. With it it can among other things the costs additionally resulting from the hospital stay like the legally prescribed hospital additional payment of ten euro per day for maximally 28 days meet.

deferred taxes: definition, examples & calculation

From the Latin term "latere" derives the expression latent. Into German it can be translated with "in the hidden remain" or " not yet visibly". Deferred taxes in accounting are also taxes that are not incurred at the moment.

The definition of deferred taxes

Deferred taxes are fictitious charges or. Receivables in income tax understood that arise due to different accounting approaches between commercial and tax balance sheet. You probably know that assets and liabilities, as well as prepaid expenses, can be valued differently for financial reporting purposes than for tax purposes. In most cases, however, these other valuation approaches only lead to temporary shifts in the tax. The differences are reduced again in the following fiscal years. This is exactly how you recognize a deferred tax.

Deferred taxes always refer to income taxes of companies. So, for sole proprietorships and partnerships, it only affects trade tax, for corporations it also affects corporate income tax. Smaller companies within the meaning of the Commercial Code (HGB) § 264a are exempt from the obligation to form deferred taxes.

Deferred taxes in international comparison

In Germany, the recognition of deferred taxes in accounting has not been relevant for so long. It was not until the German Accounting Law Modernization Act (BilMoG) came into force in 2009 that deferred tax assets and liabilities became more important. While the previous concept was strongly oriented towards the determination of results and thus towards the profit and loss statement (P&L) (timing concept), now a temporary concept is followed. This focuses much more clearly on the commercial and tax balance sheets and the differences in the valuation of assets and liabilities. So, in the interest of creditors, the company's net worth is more realistically represented. At the same time, the legislator adapted the German HGB regulations regarding deferred taxes to internationally accepted accounting standards such as IFRS and US-GAAP.

Deferred tax assets and liabilities

Simply explained, then, deferred taxes are anticipated tax liabilities or. -refunds. If you want to calculate deferred taxes, you must subject the determined difference between the balance sheet total of your commercial and tax balance sheet to the company's own tax rate that would apply in the current fiscal year. Depending on which side of the balance sheet the items are located, tax experts distinguish between deferred tax assets and deferred tax liabilities.

There are separate G/L accounts in the balance sheet for both deferred tax assets and deferred tax liabilities:

Overview of accounts	SKR03	SKR04
Deferred tax assets (stock)	0983	1950 – 1999
Deferred tax liabilities (inventory)	0968	3065 – 3069

In the context of the annual financial statements, the balance sheet accounts are posted to. contra account for the changes are the corresponding P&L accounts:

Overview of accounts	SKR03	SKR04
Expenses from additions to and reversal of deferred taxes	2250 – 2254	7645
Income from additions to and reversal of deferred taxes	2255 – 2259	7649

Deferred tax assets

Deferred taxes on the assets side of the balance sheet arise when the commercial balance sheet shows lower assets or higher liabilities than in the tax balance sheet. Such differences arise, for example, in these circumstances:

Facts	Commercial balance sheet	Tax balance sheet
Depreciation of permanent impairment of assets	Capitalization requirement	Option
Amortization of purchased goodwill	Obligation to capitalize, duration: estimation of useful life allowed	Capitalization requirement, duration: 15 years
Application of simplification procedures in the valuation of inventories	Consumption tracking procedures FiFo (First in – First out) and LiFo (Last in – First out) are allowed	LiFo is not allowed
Recognition of a provision for contingent losses in a pending transaction	Capitalization requirement	Not permissible

There is an option for the recognition of deferred tax assets in the HGB financial statements. However, they are only recognized if they are higher than the deferred tax liabilities, i.e. there is a surplus of deferred tax assets.

In the case of deferred tax assets, existing loss carryforwards must also be taken into account if a loss settlement is expected in the next five years. Must be capitalized in accordance with HGB § 274. This means that tax planning in companies is of particular importance.

The effect of the different valuation of assets in the commercial and tax balance sheets and their compensation through deferred taxes using an example:

ABC-Dreherei GmbH manufactures turned parts for the mechanical and plant engineering industry with a state-of-the-art machine park. For the last fiscal year, the following facts must be taken into account when preparing the balance sheet:

a) Due to a cable fire there was damage to a turning machine. The permanent impairment of the machine, which still has a book value of 100.000 € in the balance sheet is 50 percent.

b) Management decided to buy out a small powder coating company whose goodwill amounted to 600.000 € amounted to. Under tax law, this goodwill must be amortized over 15 years. However, based on the expert opinion prepared when the business was acquired, the company arrives at a useful life of 10 years.

c) Inventories are valued in accordance with the LiFo method under commercial law. The inventory value is 450.000 €. However, for tax purposes only the FiFo method is allowed, the value increases to 500.000 €.

A tax burden of 30 percent is assumed.

Facts	Commercial balance sheet	Tax balance sheet
Amortization of the permanent impairment of the lathe	Capitalization obligation: 50.000 €	Option, not used
Amortization of goodwill acquired by purchase	Must be capitalized, duration: 10 years = 60.000 € / year	Capitalization requirement, duration: 15 years = 40.000 €/year
Valuation of inventories	LiFo : 450.000 €	FiFo: 500.000 €

If there are no other differences between the two balance sheets, the commercial balance sheet shows goodwill amortized by 120.000 € lower balance sheet total than the tax balance sheet. With a tax burden of 30 per cent would be thus 40.000 € deferred tax assets to be recorded.

Therefore, if the company did not recognize any deferred tax liabilities this year, it could make use of the option and capitalize the deferred tax assets. As an accountant, you record the entry via the P&L:

Deferred tax assets 40.000 € to

Income from additions to deferred taxes 40.000 €

Deferred tax liabilities

If, on the other hand, the assets in the commercial balance sheet are valued at a higher or. the liabilities are reported at a lower amount than in the tax balance sheet, deferred tax liabilities arise. The section 274 para. 1 of the HGB obliges the taxpayer to book a deferred tax liability, so there is no right of choice here. The following examples can cause deferred passive taxes:

Facts	Trade Balance	Tax balance sheet
Recognition of internally generated assets in fixed assets	Elective right	Not allowed
Different valuation approaches in accounting for foreign currency liabilities	Recognition at the spot exchange rate on the balance sheet date even in the event of falling exchange rates	Consideration of a lower value is not provided for if the exchange rates have not fallen permanently

In the spin from our example, these examples result in deferred tax liabilities:

a) When a new lathe is purchased, a special chuck is needed to produce a certain type of turned parts. The management has this component manufactured in-house. The incurred cost price of 5.000 € the company records under the manufacturing costs of the machine. Thus, it exercises its right to choose to capitalize self-created assets.

b) Last year, the GmbH took out a loan in US dollars from an overseas supplier. It was booked in euros at the exchange rate of $1 = €0.86 on the day the loan was disbursed. The outstanding loan amount is currently still 100.000 US dollars, which would be 86.000 euros. However, as of the balance sheet date, the exchange rate has fallen: 1 dollar = €0.84. The lathe shop must measure the value of this liability in the commercial financial statements using the spot exchange rate and now only records 84.000 Euro. For tax purposes, the change may not be recognized, since a permanent reduction in the exchange rate cannot be assumed here.

Facts	Commercial balance sheet	Tax balance sheet
Recognition of internally generated assets in fixed assets	Capitalization option 5.000 €	Prohibition of capitalization
Different valuation approaches to accounting for foreign currency liabilities	Book value 84.000 €, recognition of other operating income in the amount of 2.000 €	No consideration of course change allowed

Assuming a tax burden of 30 percent, deferred taxes are attributable to the 7.000 € difference between the commercial and tax balance sheets 2.100 € to be recorded as a deferred tax liability. To post these deferred taxes, you use the appropriate accounts:

Expenses from additions to and reversal of deferred taxes 2.100 €

Deferred tax liabilities 2.100 €

Deferred tax assets and liabilities in your business is a topic you should discuss with your tax advisor as part of the financial statement process. He can recommend which tax elections you should exercise to achieve your business goals and also help you with your tax planning over several years.