The trusted voice of the auto industry for more than 25 years www.autofile.co.nz
Issue 2-2014 10 February 2014
Law changes may hit vehicle finance T
he government’s so-called loan-shark laws could affect the way car dealers carry out the finance side of their businesses unless changes are made to proposed legislation. The Credit Contracts and Financial Services Law Reform Bill will update the Credit Contracts and Consumer Finance Act. It will include the provisions of Credit (Repossession) Act, which will be scrapped. The government says the bill, which has passed its first reading, will better protect consumers from
irresponsible lenders – especially those at the lower end of the market. But the Financial Services Federation (FSF), which represents lenders including many in the automotive sector, has raised serious questions about how vehicle finance may be affected. Its position on the way forward is being backed by the Motor Trade Association (MTA), which has also voiced its concerns to the government in its own submission. One major issue in the proposed legislation as it stands is traders and other point-of-
sale retailers being officially classed as lenders – with all of the responsibility and bureaucracy that entails. Others include: Car dealers having to publish loan terms, borrowing costs, and information on repayment waivers and extended warranties. Lenders and traders being banned from charging commission on any insurance policy if the borrower has no choice but to buy it from one provider.
C
when he ruled a dealer had to compensate his customer so he could bring his Isuzu Bighorn up to roadworthiness standards. The buyer lodged an application with the tribunal after complaining to the NZTA about the company that issued its WOF. This was a few days after he discovered some faults with the
p10 Website built for dealers p15 Hybrids boom in Japan p16 Profile on MTA’s boss p18 Saab makes comeback p20 Latest industry movers p24 In-depth sales statistics
Specialised training to increase your sales Find out more on Page 9
[continued on page 4]
Traders ‘responsible’ for WOFs ar dealers have been warned they are responsible for warrants of fitness (WOFs) supplied with vehicles at the point of sale. The guidance has been issued by Christopher Cornwell, an adjudicator with the Motor Vehicles Disputes Tribunal (MVDT). It follows a hearing in Auckland
In this issue
SUV, which he purchased sight unseen through an online auction. After the agency inspected the car, it sent the WOF issuer notice it failed to comply because of a frayed seat belt, out-ofalignment headlamp and rust in the rear cross member. At the tribunal hearing, the
[continued on page 8]
Ute range boasts twelve variants
p19