Autofile 18sept web

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Issue 17-2015 19 September 2015

Perfect storm brewing for used car importers I

ndustry experts and car dealers are reporting tough market conditions for buying used vehicles.

The sector is feeling the pinch on various fronts as the lower cross-rate between the New Zealand dollar and yen pushes prices up in Japan.

Dealers in this country are also finding access to stock difficult and the drop-off in Japanese sales of new cars is pushing up demand for second-hand vehicles there.

All of this is creating what Darryl McGifford, general manager of IBC NZ / AutoTerminal, a global distributor of used

imports mainly from Japan, describes as a “perfect storm”.

He told Autofile: “Buying conditions in the Japanese used market are difficult at the moment and this is especially the case when trying to access stock.

“This has come about because the Japanese new car market has fallen away dramatically and not as many people are trading their vehicles into the second-hand market, so their values have gone up.

“More stock in Japan is now being snapped up by local dealers and the product range available at auctions there has become tighter. This means

it is difficult to get what you want and you have to pay more for it.”

McGifford stresses prices paid not only relate to the cross-rate between the kiwi and yen, but the amount of cars available at Japanese auction houses.

“Because the numbers have reduced, this is moving prices up so stock costs more,” he explains.

“While all those vehicles already on the ground in New Zealand are not necessarily worth more because of the change in the crossrate, they are better value because they are harder to replace.

“It is the same for everyone. If

In this issue p7 Turners’ bid for MTF shares p11 Retaining existing buyers p12 Tauranga regional report p14 Used imports airbag recall p16 Tips on business growth p18 Fair trading rules broken

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[continued on page 4]

Marque takes action over ratings

A

new vehicle distributor says it has received “overwhelming support” after deciding to rebate some of its customers affected by classification errors made by ACC. It follows industry organisations, such as the Motor Industry Association, Motor Trade Association, Imported Motor Vehicle Industry Association

and the AA, working with the corporation to get problems with its risk-rating system rectified.

The new levies place cars into one of four bands with the owners of those deemed to be the safest paying the least in annual registration.

Since the system was introduced on July 1, ACC has refunded about $600,000 to

owners because their vehicles have been put in the wrong bands and it says it will review the issues in time for the 2016/17 charging year.

However, that has left Kia Motors NZ unimpressed. It has taken matters into its own hands by offering $90 rebates to some of its affected customers.

The rebate goes to people who own 2010 and 2011 Sportages with [continued on page 8]

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editor’s note

Call Steve Owens now on 021 947 752

Rugby, flags and vehicle ratings debacle as the battle of the red-peak flag relentlessly drags on.

The opposition continually conspires against itself to make no headway against the government and we seem to have a prime minister who wants to be able to have “the man who changed the flag” on, quite appropriately, his flagstone.

However, there has been something interesting on the TV news lately and that was coverage of Kia rebating customers affected by the gigantic cock-up that is ACC’s vehicle risk-rating system.

It was good to see something positive about the automotive industry making the headlines in the mainstream media and it’s hard to argue against the system’s principals. After all, it’s all about rewarding owners of safer cars with lower rego fees.

But how it has been rolled out has cast more shadows over how the corporation is run and is the latest in a myriad of systemic failures. The privacy breaches a few years back spring to mind as another shocking incidence of ineptitude.

The issues with the levy bands being wrong for so many vehicles is another example of public money disappearing down the drain and processes being followed with little comprehension about what goes on in the real world.

Hopefully, the negative publicity ACC has received will ensure it and the government step up to the plate and get it sorted out.

That will go some way to making it up to about 10,000 motorists who have been messed around – and for all of the time and money wasted by vehicle distributors, car dealers and industry organisations on this debacle.

Darren Risby, editor

Editor

Darren Risby editor@autofile.co.nz 021 137 5430 Advertising

Brian McCutcheon brian@autofile.co.nz 021 455 775 Journalist & Online producer

Cameron Carpenter cameron@autofile.co.nz Designer

Adrian Payne arpayne@gmail.com

Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz.

Back copies are also available on the website.

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All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without written permission, whether by copying or any other means, is strictly forbidden. All rights reserved.

ISSN 0112-3475 (print) ISSN 2350-3181 (online)

happy WITH YOUR CURRENT

ARE YOU

T

he television news of late is making for extremely dull viewing thanks to the rugby world cup and the flag referendum.

Let’s start with the All Blacks.

We have been subjected to stories about them getting on planes and, thankfully, disembarking them at the other end.

Then they have been walking around the Tower of London and coaching children in the English capital. I could go on.

Of course, various experts are giving their views on who will win the tournament.

This is just as dreary because it’s only the All Blacks who are likely beat themselves – as they did against France in Cardiff in 2007 – and there are too many variables for any wise man to bet against them.

The English have probably beaten themselves already by biffing two of their best players for off-field transgressions and the Welsh have two playmakers out injured. The Australians are likely to self-destruct and no one can guess what South African team turns up.

Of course, the All Blacks brand has become embroiled in the nonsense about New Zealand’s flag with Richie McCaw expressing his preference for the silver fern.

Low and behold, a few days later and three of the four options sport that very foliage. The fourth option is the joker in the pack with some people pointing to a cabinet conspiracy over the process.

Millions of dollars have been wasted on this – money that could have been spent on something worthwhile. Perhaps a referendum on whether we retain the British monarch as our head of state or become a republic is more important.

Andrew Little has dismally failed to get the better of John Key

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3

news [continued from page 1]

Overseas supply levels tighten up there’s limited stock available for New Zealand, then it’s the same for other countries purchasing from Japan.

“As far as the cross-rate is concerned, it is a combination of the yen appreciating in value and the New Zealand dollar backing off. This makes it harder to access those units we were able to three to four months ago.”

Looking ahead to the rest of the year, McGifford predicts the situation will improve in the runup to Christmas in that buying conditions will get better.

“We still need to fill up the ships,” he adds.

“There should be a progressive increase in buying through to January and February.

“Market conditions at the moment are a perfect storm of high exchange rate and limited supply. However, they will get better as they always do.”

EXCHANGE RATE TUMBLES Movement in the cross-rate between the New Zealand dollar and yen has been substantial this year.

From an average monthly rate of 90.72 in April, it fell to 86.31 during June and 80.72 in August.

Up to September 17, the daily average for this month was 75.94, according to www.x-rates.com.

It may not even get back into

before reaching an annual high of 79.9 in December 2016.

Warwick Quinn, chief executive of the Motor Trade Association (MTA), believes there has never been a better time to buy a new or used car.

“The downward movement in the New Zealand dollar may put pressure on prices for new and used imported vehicles in the near future, so now is the time to buy,” he says.

“More stock in Japan is being snapped up by local dealers.”

– Darryl McGifford, IBC NZ / AutoTerminal

the 80s next year, according to Westpac’s weekly market commentary of September 14.

The bank forecasts a kiwi-yen cross-rate of 73.8 this month dropping to 72.9 in March. It is then anticipated to climb to 74.5 in June

“Motorists should look to take advantage of favourable trading conditions. The pricing, specification and selection of vehicles are currently unprecedented.”

Quinn notes the kiwi has fallen versus the yen by nearly 17 per

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cent from its high point of 90 earlier in the year to its current rate of about 75.

“Based on average New Zealand used-import free-onboard costs of about 500,000 yen, that currency change will add about $1,100 to the cost of an ‘average’ used import,” he says.

“Current stock levels already in this country are still quite robust, so it will take some months for the new prices to filter through.”

He says dealers who are MTA members report conditions have “firmed”, but they are “reactive players and quickly adjust to meet the market”.

That said, any time of change brings new challenges and, in some regards, it is easier when market conditions are stable – if that is ever the case.

“With the spectre of price  increases, the old message to

news t consumers about it being a good time to buy is certainly relevant,” says Quinn.

As for factors affecting used exports from Japan, all of that market’s destinations have shown successive growth over the past five years.

“Volumes coming to this country are ahead of the same period last year, so there seems to be no evidence of any overall slowdown yet,” he told Autofile.

“If past activity is a reliable indicator, the period of September through to November is typically strong for New Zealand-bound volumes, so it will be interesting to see if that pattern continues this year.”

Quinn points out total registrations of new and used imported vehicles surged ahead by eight per cent during August compared to the same month in 2014 and the overall market is still on track to set an all-time sales record.

New passenger car sales went up by nine per cent last month and used-imported car numbers climbed by seven per cent when stacked up against August last month. New commercial vehicle sales rose by 11 per cent and used commercials up by 10 per cent.

MAKING MONEY ON STOCK A market correction is taking place – and that’s coinciding with the lower

– for example – $1,000 cross-rate between the to $2,000 off to match yen and kiwi. a competitor down the That’s the view of road irrespective of the Graeme Macdonald, details. chairman of the North “A lower rate Island branch of the between the kiwi and Imported Motor yen obviously affects Vehicle Industry higher-end Japanese Association. vehicles more adversely “We talk a lot about Graeme Macdonald than bread-and-butter volumes coming into stock comprising the majority of our New Zealand, but there is less talk imports,” he explains. about how much money dealers “For vehicles with retail prices are making on selling their stock,” of $7,000 through to $12,000, he says.

“Some dealers are able to maintain exchange-rate changes don’t make a huge difference. their margins, but the majority seem “What may be stopping the to making less money from sales. buying of so much Japanese stock “There appears to be a lot of is that prices overall at auction discounting going on to secure deals, there have moved up. There has but contrasting issues with replacing that stock from Japan at the moment.” definitely been a shift upwards.”

There is traditionally an Macdonald says this has resulted upswing in pricing during Japan’s in a tough couple of months for New Zealand’s used import industry. summer “and every year it’s the same situation”.

He notes that quite a few “This year, however, the crossdealers are looking at domestic rate shift has happened at the trade-ins to fill the gaps when same time and has exaggerated previously they would have offloaded them to wholesalers.

“The perception is there is more profit in them and they cannot source as much replacement stock from Japan as they were able to a few months ago,” says Macdonald.

He sees the current market as being particularly price-driven with consumers appearing less interested in quality and asking dealers to take

Trader’s take on conditions A well-known member of the used imports industry is predicting price increases are likely to happen and “we will really start to feel them” in two or three months’ time.

“Dealers will have to cut their stock levels down,” says Rod Milner, of Rod Milner Motors in Auckland.

“Maybe they will lay off staff if prices go down. When margins are down, they start looking at costs.”

He says the industry is looking at a devaluation rate of about 17 per cent in the cross-rate between the yen and kiwi from its high earlier in the year to where it’s sitting now.

“I think, if anything, it is going to go lower,” says Milner. “It was 44 during the recession and has

reached as high as 93 this year.

“What happens when the dollars goes lower is that everyone will start cutting their stock, and lowering the variety of it with more higher-kilometre vehicles and their grading.

“We have all had a couple of good years. If you have run your business properly there should be some fat on it.

“There are some other good positives in the market, such as the tourism and export industries.

“But this is nothing like the recession we recently went through, so dealers’ books should be in good order and positioned to ride through this.”

these trends,” says Macdonald.

“Used car dealers in Japan are also struggling to find appropriate stock, so Kiwi importers are competing against them as well because domestic market stock availability over there has changed.”

However, Macdonald notes the market in New Zealand probably needed this correction following several months of unsustainably strong numbers coming in.

“When we see relatively stable prices and good access to stock in Japan, volumes will probably lift again in conjunction with a market here that has self-corrected having worked through the stock surplus,” he says.

“In terms of buying, the cross-rate with sterling has also tightened up the UK market.”

THE BIGGER PICTURE A recent ASB barometer report on the New Zealand dollar shows companies have budgeted for the currency’s value to be higher.

For importers, the kiwi’s lower value raises the local cost of [continued on page 6]

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5

news [continued from page 5]

Volatility in markets benefits yen goods imported from overseas.

“The unexpected drop and subsequent forecast changes confirm the fact that forecasting the exchange rate is notoriously difficult,” says Chris Tennent-Brown, ASB economist.

“If a large proportion of businesses see decreased chances of raising prices, it has several implications.

“Firstly, if importers are unable to pass on the increased costs of imports, it will presumably have a negative impact on margins and profitability.

“Secondly, we may not see quite as much tradable inflation as we would typically expect stemming from a significant New Zealand dollar decline.”

With annual inflation running close to zero and very little domestic inflation pressure, the kiwi’s decline has been one of the few developments pointing

to higher inflation in the future.

In addition, economic uncertainty in China is impacting on world markets and currency rates, which affects the wider Kiwi economy.

Tennent-Brown adds: “Traditionally, the New Zealand dollar would be heading lower on deteriorating risk sentiment and growing China risks, but instead it has been squeezing up. Recovering dairy prices have helped.”

According to ASB’s monthly market report of September 3, the kiwi depreciated last month against all major currencies the bank monitors by 1.1 per cent on a trade-weighted basis.

“The yuan devaluations on August 11 and 12 added to the list of concerns about China,” says ASB’s Kim Mundy. “These concerns spilled over into global financial markets.

“Closer to home, a positive price development was the 14.8 per cent

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Monthly yen-NZ$ cross-rates

Yen 95 90.39 90

88.48

90.72

89.8

Average cross-rate

89.19 86.31

85

81.93

80.72

80 75.94* 75 70

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

*Rate at close of trading on September 17. Source: www.x-rates.com

Westpac currency cross-rate forecasts Currencies

Sept 15

Dec 15

March 16

June 16

Sept 16

NZ$ → JPY

73.8

73.3

72.9

74.5

77.1

Dec 16

79.9

NZ$ → AUD

0.91

0.90

0.90

0.91

0.92

0.92

NZ$ → EUR

0.56

0.56

0.56

0.56

0.57

0.58

NZ$ → GBP

0.41

0.41

0.41

0.41

0.42

0.42

NZ$ → USD

0.61

0.60

0.59

0.60

0.62

0.63

Source: Westpac Weekly Commentary, September 14

jump in dairy prices at the August 18 global dairy trade event.”

She describes currencies as being “choppy” last month with the US dollar easing against the euro and yen, but gaining against other currencies including the kiwi.

“China’s devaluation of the yuan caught market participants by surprise and lifted volatility in currencies.”

Last month, the New Zealand dollar fell by 2.5 per cent against the US dollar and 4.8 per cent against the yen.

“The yen was the strongest currency under our coverage in August,” says Mundy. “The extreme volatility in a range of markets generally benefited the yen, reflecting its historical role as a safe-haven currency.”

Raiko Shareef, currency strategist at BNZ, highlights the Reserve Bank of New Zealand cutting the official cash rate (OCR) by 25 basis points to 2.75 per cent on September 10 and looks likely to lower it further.

“We expect another cut to 2.5 per cent in October,” he says. “But with the Reserve Bank’s growth forecasts more optimistic than ours, the risks seem skewed toward a lower terminal OCR in this cycle.

“In short, there are few reasons to expect a material recovery in New Zealand dollar in the near term.”

As for the cross-rate between the kiwi and yen, this has “assumed its classic role of a proxy for risk aversion”.

Shareef says: “A clamouring for exits on the cross was partly responsible for the dollar’s flash crash on August 24. We expect this underperformance to continue as investors remain guarded.

“The Bank of Japan will likely be mulling its options for further policy easing as inflation sinks back toward negative territory and there have been loud calls from political leadership for further easing.”

Also in this issue Craig Costello, of Costello Cars in Christchurch, talks about the difficulty he’s facing when replacing stock with fresh used imports from Japan – page 22 Matthew Foot, of Brendan Foot Supersite in Wellington, warns the cost of new cars may go up in the long run if the New Zealand dollar continues to be weak – page 25 Dealers selling used imports are finding it harder to access stock they want and at the right prices – page 27

news

Turners bids for MTF shares T

he chief executive officer of Turners Ltd says an offer to lift its holding in Motor Trade Finances (MTF) to about 20 per cent is not a takeover bid.

Paul Byrnes told shareholders at the company’s annual general meeting in Auckland on September 16 that the bid would increase its holding in MTF to about 20 per cent.

However, MTF’s constitution contains restrictions on any shareholder having more than 10 per cent of shares on issue without board or shareholder approval.

“We currently write around 10 per cent of new loans originated through MTF and this percentage has been increasing in recent months,” says Byrnes. “We expect our book to continue to grow.

“We feel there is value in increasing our shareholding to a more meaningful stake than our current one per cent.

The cash offer “We think our was sent to MTF’s expertise and shareholders on experience in the September 17. The wider financial stock previously services and insurance traded on the industries could bring ShareMart system on value to the business September 1 at 94 for the benefit of all cents and there are MTF shareholders. currently two offers to “We have already Paul Byrnes, CEO of Turners Ltd sell a combined 20,700 discussed some shares at that price. initiatives with MTF. This isn’t a Byrnes says as far as future takeover offer and we are relaxed mergers and acquisitions are about the final shareholding we concerned, Turners Ltd, which was end up with. formerly called Dorchester Pacific, “Our offer provides an attractive “will seek out businesses that add opportunity for MTF shareholders capability and scale, and additional who wish to sell their ordinary profit growth to the group”. shares given liquidity for those He adds: “We have previously shares can be limited.” mentioned criteria of strategic fit, In the meantime, the dividend sustainable earnings, integration yield in MTF shares at current profit risk and, of course, value. These will levels and dividend pay-out policy remain relevant for all opportunities is about nine per cent after tax on whether bringing new products Turners’ $1.15 offer price.

or new channels to the group.

“It is a proactive approach. I am now spending up to 50 per cent of my time on merger and acquisition activity, and the board is actively involved in the process.”

As for current trading conditions, Byrnes says the motorvehicle finance market remains competitive “with banks and some newer second-tier finance companies chasing new lending targets and market share – with some relaxing of credit and lending policies to achieve that”.

Also, Turners Group has recorded “some outstanding months” since April with car auction and fleet sales volumes holding up.

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7

news [continued from page 1]

‘Charging consumers more wrong’ the amount being the difference in levy costs between band one – the lowest risk rating – and band four, which is the highest.

These models boast five-star ANCAP ratings and contain modern safety equipment but were, says Kia, incorrectly classified as high risk and allocated the wrong levies.

The company says a high risk rating from ACC indicates those model-year Sportages are unsafe to customers and the general public.

“We have had overwhelming support for this initiative from our customers and dealer network,” says Todd McDonald, general manager of Kia. “From our communications with ACC, we understood it would not be going to take anything further in the immediate future.

“But we have got a responsibility to our customers who have invested in the brand and that’s to do what is right for them and our dealer network, which had been fielding communications about all of this.”

McDonald told Autofile he would like to think ACC will review the feedback it has received from the wider industry and Kiwi motorists before coming up with a “more appropriate structure the second time around in regards to banding vehicles in their correct model age groups”.

Kia has been trying to resolve the levy discrepancy with the corporation since May and to have what it sees as an error in the system fixed.

The company says ACC is aware of the issue, but has indicated it won’t correct the

mistake until the 2016 and 2017 levies are reviewed.

“Knowing there’s a problem, or in Kia’s case no problem, the risk classification of a vehicle and charging consumers more is just plain wrong,” adds McDonald.

“We look after the interests of our customers. ACC has got it wrong so we want to pay the levy difference for current model, 2010

of the spectrum representing the highest and lowest risk ratings,” he explains.

“There’s a problem with the system and, while we can’t fix it for everyone, we can look after customers who stand by us.

“It’s beyond logic to have identical cars rated so differently based on when they were registered.”

“We have had overwhelming support for this initiative from our customers and dealer network.” – Todd McDonald, Kia Motors NZ and 2011 Kia Sportage owners. We hope they take us up on the offer.”

The company has received more than 140 direct complaints and many more via its dealers.

McDonald says while vehicles change from year to year, variations are minor in most instances.

“A 2011 Kia Sportage is nearly identical to a 2012 model, yet the ACC ratings occupy opposite ends

The ACC banding issue equates to about $90, inclusive of GST, and Kia will provide the same sum via a rebate on customers’ next full scheduled services at authorised dealers and service centres.

Sportage owners can see if they are eligible by logging onto www.kia.com/nz and typing in their VIN number.

McDonald adds: “We believe

ACC should be putting this right, but we’re not about to leave our loyal customers out of pocket.”

A spokeswoman for ACC says the Kia models are being charged at the correct 2015/16 levy, but there is a possibility for any car to be reviewed.

“We are continuing to introduce enhancements to the vehicle riskrating system and are working with the car manufacturing industry on these,” she adds.

“As the New Zealand vehicle fleet is constantly changing and cars age, we will review all vehicle ratings each levy year.”

ACC will publicly consult on a number of proposals, including improvements to the ratings system, before making recommendations to the government based on feedback.

If agreed, these proposals will be passed into regulation and come into effect for the next levy year, which starts on July 1, 2016.

ACC’s vehicle risk-rating system is based on real-life crash data from Monash University in Melbourne and NCAP results.

The ensuing controversy since its launch has created a political hot potato.

Sue Moroney, Labour’s spokesperson for ACC, says: “By the time the cost of responding to the growing mountain of complaints is factored in, ACC will be $10 million down the gurgler without making a single improvement to road safety.

“I have had information from ACC that its estimation is 90,000 vehicles have already been  reclassified as a result of the

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news

Port’s car volumes double

P

Kia Motors NZ is offering rebates to owners of 2010 and 2011 Sportages as compensation for the levy bands ACC has placed their vehicles in

t botch-ups that have happened with the implementation of this system. I confidently predict that number will climb.”

Nikki Kaye, Minister for ACC, describes the new system as “experiencing some teething issues” and problems with data are being worked through to resolve them.

“I think what’s important is that people know the reasons why we are doing this,” adds Kaye.

“Number one is to ensure we have safer cars on the road and save taxpayers money in the long run by reducing serious injuries.

“But then, secondly,

sometimes you do get technical issues that occur. What I’ve been very clear about is that people will get refunds if it is the case that they have paid too much.”

Kaye adds ACC is doing its best and she doesn’t believe too many more examples of wrongly riskrated cars will come to light.

In June, ACC said 18 vehicle models had been given incorrect risk ratings. That figure now stands at 23.

People can call the 0800 222 776 hotline or log onto www. acc.co.nz/for-individuals/othermotorists/wpc138205 for a list of affected models.

ort of Tauranga’s profit growth slowed to one per cent as log export volumes dropped in the past financial year for total export levels to remain unchanged.

However, its car volumes more than doubled to 11,607 units.

Profits came to $79.1m in the 12 months to June 30 from $78m, while operating revenue rose from $266.5m to $268.5m.

The port plans to deepen the harbour’s channel for the next-generation of 6,500 20-foot equivalent container unit (TEU) vessels by late 2016.

This work is expected to get under way in October and container volumes are forecast to exceed one million TEUs in 2017.

Over the past financial year, the number of containers crossing Tauranga’s wharves increased by 12 per cent to 851,106 TEUs. Total export volumes were unchanged at 13.3m tonnes with

strong rises in dairy commodities and general freight offsetting falls in logs, sawn timber and steel.

Imports went up by eight per cent to 6.9m tonnes on the back of a 55 per cent hike in cement to 165,503 tonnes, which reflects the local construction industry’s strength.

General cargo rose 22 per cent to 3.2m tonnes although grain imports dropped by 13 per cent and coal imports plummeted by about 100 per cent, which has been attributed to a decline in thermal-coal generation.

“Trade volumes are expected to be slightly higher in 2016,” says Mark Cairns, chief executive. “We are expecting log volumes to be similar to the past financial year.

“With the low dairy payout, fertiliser and dairy food supplement volumes are expected to decrease, but these will be offset by an increase in kiwi fruit and container trade.”

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9

new cars

Marque works magic with seats

H

onda describes its new HR-V as the next generation of crossover vehicle that “redefines” quality and style.

It offers up to five occupants class-leading interior space with Sport models boasting a glass panoramic sky roof, which features a sliding sunshade that opens automatically.

The foundation of the HR-V’s interior is its centre-mounted fuel tank, which is positioned under the front seats to free up space beneath those in the rear for Honda’s magic seat system.

This allows each of the 60-40 split second-row seats to adopt numerous configurations to maximise its people and loadcarrying versatility.

The 1.8-litre i-VTEC engine with variable value timing and lift electronic control has been

Honda’s new HR-V Sport models comes with panoramic roof

combined with a dual-stage intake manifold, delayed valve closure and an optimised piston coating to boost output and efficiency.

Strength and weight have been optimised with hot-forged connection rods and a stainlesssteel exhaust system, while the acoustic insulation package features a non-woven underlay and sound-absorbing carpets.

Honda’s new “smart touch

interior” means certain functions can be operated with minimal movement and effort, such as the touch-panel climate control, electric park brake and one-touch indicators.

Every HR-V incorporates the marque’s next-generation advanced compatibility engineering body-structure technology for passive safety performance.

Connected structural elements distribute crash energy more evenly throughout the vehicle’s front to reduce forces transferred to the passenger compartment.

Sport models come with a lanewatch camera on the left-wing mirrors with footage transmitted to the seven-inch screen when the indicator on that side is on.

This extends the driver’s view to 80 degrees to reduce the blind spot and makes turning left or changing lanes safer.

The Sports’ city brake-assist system helps to avoid low-speed accidents. It uses laser radar technology to scan the road and automatically applies the brakes if an imminent collision is detected at speeds of less than 32kph.

Pricing for the six-model HR-V range starts at $32,000 and rises to $43,900, plus on-road costs.

European model arrives

H  Entry Certification Inspection Authority  Imported Vehicle Compliance & delivery  Rebate Rewards programme

 Pre-Purchase Inspections & Appraisals

olden’s first all-wheeldrive (AWD) performance sedan is now on sale in Kiwi dealerships.

The marque says the mid-sized sporty Insignia VXR boasts European quality and sophisticated technology.

The top-of-the-range model features a 2.8-litre V6 turbo-charged engine, which – when partnered with a six-speed automatic transmission – delivers 239kW of power and 435Nm of torque.

Kristian Aquilina, managing director of Holden NZ, says: “The VXR combines impressive road presence and quality with breathtaking performance.

“This German designed and engineered AWD vehicle is loaded with technology

and signals an exciting future direction for our products.”

The sedan introduces adaptive cruise control, lane-change alert and automatic emergency braking. There are numerous other features, such as adaptive forward lighting and blind-spot alert.

It has three settings – standard, sport and VXR. They allow drivers to customise performance features, such as by having a more responsive accelerator and gear change, sport steering and a firmer sports suspension.

Holden’s next generation MyLink infotainment system boasts an eight-inch touchscreen display and is complemented by a premium audio system with seven high-quality speakers.

The Insignia VXR is priced from $69,990, plus on-road costs.

The Insignia VXR

9 Moselle Avenue, Henderson, Auckland.

0800 220 240 10 www.autofile.co.nz

www.drivesure.net.nz

Uncovering lost opportunities H

ow many of your existing customers from more than three years ago are out there buying vehicles from other dealerships or privately each month?

This is certainly a question that gets many people thinking, but it’s one that not too many have really thought about.

However, once you start running the maths you soon discover there is a huge opportunity for extra sales being achieved each month that aren’t realised.

Using the example below, you can ascertain approximately how many of your customers aren’t purchasing back off you.

Once you have established this, you can then begin to see how important it is to invest in your existing customers.

This example assumes that the customer buying cycle is on average every three years.

However, you can change the timeframe in point A to four or five based on what you believe is correct.

vehicle somewhere For a dealership each month and they that sells 40 cars haven’t purchased back consistently per month, through you. to have an additional These are just the 35 customers out there ones who purchased buying from someone three years ago. Start else is crazy. That is adding in three years a significant missed before that, and three opportunity passing MARK GREENFIELD Motorcentral years before that, you by. and the numbers can If you have a become overwhelming. dealership that’s doing 100, 200 Yes, there are some variables or even 300 sales a month, the you could throw in the mix, above numbers of potentially lost but the reality is there is huge customers are staggering. potential for more sales to The saying “your old customers existing customer regardless of are your gold customers” couldn’t how you cut it. be truer.

These are also your most You’ve spent significant valuable customers, and the energy in advertising and selling chances are your dealership has to them as new customers to done very little and is doing less then do what? than you should to retain them.

Forget about them and wonder The saying “your old customers are your gold customers” couldn’t be truer

Example – Acme Motors A: Average monthly sales three years ago = 40 B: Actual current average number of repeat customer sales per month = 5 C: Existing customer monthly opportunity (subtract C from B) = 35

why so few return to buy again?

Customer retention must be the most-overlooked and underinvested area by most dealerships.

Statistically, with a repeat customer you will average a higher gross profit, higher referrals, higher finance and insurance (F&I) penetration, and higher overall F&I profits.

This is because they trust you, have purchased from you before, and believe in your dealership and the services you provide.

Retaining existing customers and maximising your opportunities with them takes planning, processes and discipline.

And that’s right from the start, the moment they engage with your business, the experience they have with your people, the delivery of their new car, and then ongoing communication and contact from the dealership.

The reality is that all customers at some stage in the future will be in the market to buy a newer car. The goal is to retain the highest percentage you can and have as many of them want to do business with you again.

Increasing repeat business could be what’s needed to take your dealership’s consistent average that you can’t seem to break, to higher levels.

If you want to learn more about maximising your opportunities, and how best to track and record them, then call the Motorcentral team today.

The figure of 35 displayed in point C above is the number of your existing customers who are likely to be purchasing a new

Anywhere. Anytime.

Your most important dealership information accessible from any desktop, tablet or mobile device. Faster. Easier. Smarter.

0800 623 687

www.motorcentral.co.nz

www.autofile.co.nz

11

regional report

Property boom boosts bay T

he Bay of Plenty is living up to its name this year with there being a sense of optimism in the region as the local economy gets a boost from a variety of new projects.

Tauranga, Mount Maunganui and the wider area have experienced steady growth across since November 2013’s regional report in Autofile – including in construction and retail, and there’s now a buoyant property market as well.

The area’s strong horticultural focus and reputation as a tourist haven continue to stabilise the economy.

With Tauranga’s $10 million marine harbour project and largescale sub-division at The Lakes complex under way, the city is experiencing a building boom.

Tauranga and the Mount now have a population of 120,819, with the wider Bay of Plenty’s figure sitting at 257,379. Tauranga is the country’s fifth largest city with 4.9 per cent of the country’s population living there.

Despite a report released in May titled The Bay of Plenty Regional Growth Study – which signalled the area is performing slightly below

Port of Tauranga

national gross domestic product and employment figures – local businesses are feeling confident the housing market will bring continued economic stability and jobs.

Given its diversity, this comes as no surprise to Tony Hammond, owner of Tony Hammond Motors in Greerton.

He has been selling cars locally for more than 30 years, and notes the economy’s ebbs and flows even out over time. He’s also positive about growth in the area.

“Where we are situated, on Cameron Road near Pyes Pa and The Lakes, development happening out this way really does

reflect well in our vehicle sales.”

Construction and retail trends are reflected in the opening of the 20-unit Pyes Pa Shopping Centre, a new school and the Tauranga Eastern Link toll road. Building consents are up 100 from the previous year, according to council figures.

MAKING the MOVE SOUTH A major factor for the bay, however, is the influx of Aucklanders looking to buy affordable properties in a region that offers a rural lifestyle, but isn’t too removed from an urban centre.

The City of Sails’ so-called property bubble has encouraged people to capitalise on their

Tauranga vehicle sales - September 2014 to August 2015 Used cars

New Cars

Sept ‘14

440

308

Used Commercials New Commercials

28

128

Public to Trader

572

Public to Public Trader to Public

1,937

Oct ‘14

466

296

25

123

607

2,035

945

Nov ‘14

437

281

40

143

545

1,903

943

1,005

homes and buy something more affordable in Tauranga.

According to Real Estate Institute of New Zealand figures, Auckland and the Bay of Plenty haven’t seen such a surge in house purchases since 2003.

“We talk to people from Auckland moving to The Lakes area, which has up to 5,000 new homes ready to go,” says Hammond.

“That’s just up the road from us. Big businesses are opening there, for example The Warehouse and Bunnings. The Lakes is going to be huge.”

Hammond believes longevity in retail is another key factor, with repeat business being a staple and many car dealers being able to supply a range of vehicles for various needs – from small economy cars through to commercials.

Of note is an increase in sales in European cars. He puts this down to the influx of newcomers with cash to spend on luxury items.

Aaron Chatfield, dealer principal of Bay City Mitsubishi in central Tauranga, agrees population movement is one of the big drivers for the business boom.

“It’s true and it’s not a trickle,” he says. “Aucklanders are coming here in droves. People don’t just move homes, they move here and set up businesses so there’s not only population growth, but also business growth.

Dec ‘14

521

220

25

122

632

2,003

969

Jan ‘15

522

286

27

132

625

2,074

885

VEHICLE MARKET STEADY

Feb ‘15

404

262

28

118

608

2,049

936

New car sales over the past 12 months in Tauranga were up by only 27 units from September 2013 to August 2014, or by less than one per cent. 

Mar ‘14

511

325

43

161

680

2,213

893

Apr ‘14

447

238

27

126

575

1,972

874

May ‘15

467

251

34

143

569

2,058

944

Jun ‘15

575

384

22

177

652

2,125

988 1,026

Jul ‘15

606

303

45

140

588

2,389

Aug ‘15

537

282

31

166

557

2,047

982

Total 12 months

5,933

3,436

375

1,679

7,210

24,805

11,390

Past 12 months NZ sales Tauranga’s % of national sales

142,723

93,555

8,753

38,289

155,339

492,242

208,113

4.2%

3.7%

4.3%

4.4%

4.6%

5.0%

5.5%

Previous year sales Sep 13 - Aug 14 Units increase/decrease Sep 13 - Aug 14 % increase/decrease Sep 13 - Aug 14

4,527

3,409

347

1,534

7,100

22,577

10,466

1,406

27

28

145

110

2,228

924

31.1%

0.8%

8.1%

9.5%

1.5%

9.9%

8.8%

Population 12 www.autofile.co.nz

New Zealand 4,242,051

Tauranga 205,971 4.9%

Aaron Chatfield, dealer principal of Bay City Mitsubishi

regional report

Bay City Mitsubishi in Tauranga

The view from the top of Mount Maunganui

Pacific Toyota in Whakatane Farmer Autovillage in Mt Maunganui

t Used cars, on the other hand, went up “We have two major mills here and by 1,406 units – or 31 per cent.

Hiluxes are popular with contractors.”

Chatfield notes: “New car sales Regional statistics for the past are difficult to use as a gauge of 12 months show new commercial market buoyancy generally. It has sales rose by 9.45 per cent to 1,679 always been a case of more used car compared to 1,534 in the previous sales, fewer new sales.”

12-month period – up by 145 units.

He also sees the changing Willetts notes a more varied demographic as vital to the customer base is purchasing region. “It’s good for commercial vehicles everyone”. and not necessarily Chatfield reports orchardists or building healthy sales at his contractors. dealership though, “We have a number and the range of of trusts in the area vehicles being sold is looking for solid fleets diverse – from small and yet we are also cars through to the moving small economy Triton. The latter is cars, but more people a reflection of the are certainly looking for horticulture-driven a commercial SUV for economy and this everyday use. season has been much “There is a strong better for orchardists. and increasing retiree Further along the base here too. Economy coast in Whakatane, cars are still popular.” different trends impact FUTURE CHALLENGES dealerships. With a With possibilities on the smaller population horizon to get more and more exposure to people into the area, such changes in the forestry, as Jetstar announcing dairying and meat Tauranga may be a new sectors, the sales profile destination, and good for vehicles differs infrastructure, seasonal there.

– Steve Willetts work and a large campus Pacific Toyota has at the Bay of Plenty three branches in the Polytechnic, the city is no longer seen Bay of Plenty, including Tauranga as New Zealand’s retirement capital and Mount Maunganui. like it was 10 years ago.

Steve Willetts, branch sales While the population is ageing, manager, says the types of vehicles sold in Whakatane are different than there is a sense young families are now settling in and demand for its sister branches. private transport will increase.

“We have moved quite a few Although challenges for the area Hiluxes recently,” he told Autofile.

Tony Hammond Motors in Greerton

seem few, Mike Farmer, of Farmer Auto Village in Tauranga, notes that while economic conditions have been favourable the region isn’t immune to issues, such as declines in dairy and meat prices.

On a positive side, there is a noticeable recovery of kiwifruit orchards after the Psa virus affected local vines.

Farmer says: “Although things are good in the area with regard to sales

and the overall feeling is positive, trends can be cyclical and we’ve already seen a housing boom occur – 10 years ago.

“Whether it’s sustainable is the question. In that regard, we have vulnerabilities that need to be continually monitored.

“Employment is always an issue, but with big businesses such as Brother International now based here, opportunities are improving.”

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13

Vehicles wanted dealers Buying now

News in brief Mustangs for export being constructed in States

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But we love drivers.

Audi, Volkswagen, Skoda........................................................... Blair Woolford 021 0367706 Hyundai.............................................................................................................. Heath Kendall 027 8552681 029 2931232 Nissan and any other brand.................................................... Brett Harris Subaru, Chrysler, Jeep, Dodge, Fiat & Alfa ......... Warren Carter 021 863503

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Record set by tiny margin

B

entley is taking its time getting into the highperformance SUV market with the Bentayga only hitting the market next year, but that has failed to prevent the marque pushing its engine to the limit.

It claims the vehicle is the new king among SUVs when it comes to top speed by outpacing the previous record holder by 1kph.

The supposedly deposed holder of the title, Porsche’s Cayenne Turbo S, is part of the same VW Group that owns Bentley.

Back in January, Wolfgang Hatx, who is in charge of research and development (R&D) at

Porsche, predicted Bentley would try to surpass the Cayenne 300’s top speed of 300kph by the smallest of margins.

If Bentley boss Wolfgang Dürheimer “is doing 2-3kph more, then why not”, Hatx said at the time. “He’s doing that with a 12-cylinder, but our car will be much quicker on the road.”

Porsche has already preemptively stated it plans to topple the Bentayga, pictured, for fastest SUV bragging rights.

Bentley claims its all-new W12 TSI engine is the most technically advanced 12-cylinder powerplant in the world, and delivers the best combination of power, torque and efficiency of any vehicle in its class.

The first right-hand-drive (RHD) Mustangs bound for New Zealand are being assembled at Ford’s plant in Michigan.

From an initial bank of 300 in May, more than 420 confirmed orders have been made by Kiwis.

“This country has one of its strongest followings outside the US and that’s reflected in the build-up of orders,” says Corey Holter, managing director of Ford NZ. The Mustang has been unavailable in RHD until now. The first deliveries to New Zealand are due in November with extra supply secured to meet demand.

Local prices start at $56,990 for the six-speed automatic transmission fastback mated to a 2.3-litre EcoBoost engine. The range-topping sixspeed automatic GT five-litre V8 convertible retails from $76,990.

Hundreds of used imports called back for airbags A recall has been issued for 420 Toyota Voltz and Pronard models imported used into New Zealand and manufactured from December 2001 to May 2004.

They were originally the subject of a call-back in 2013 for the possible inadvertent deployment of airbags.

“Globally, Toyota has decided to change the original remedy after discovering there was still potential for the fault to occur,” says Spencer Morris, of Toyota NZ. The airbag control module will be replaced under the latest recall with customers being contacted later this year when parts become available.

Only selected imports are affected and no instances of failure have been reported in this country. The marque confirms the recall is unrelated to Takata airbag systems.

Luxury electric cars hit market with special variant Tesla Motors started deliveries of its electric crossover, the Model X, on September 29 to customers in the US. The SUV launches with a premium-priced special version called the Signature series, which costs up to about NZ$226,000.

The marque has been spending heavily ahead of the Model X’s launch, which is the second addition to its line-up after the Model S sedan. It is now developing a cheaper car starting at around NZ$55,000 – the Model 3.

German sports model fails to gain five-star rating Audi’s new TT has failed to secure a top safety rating despite performing well for adult occupants and pedestrian protection.

“Insufficient safety-assist technologies and inadequate child-occupant protection caused the TT’s overall rating to be limited to four stars,” says Nicholas Clarke, chief executive officer of ANCAP. In its latest ratings round, the Mazda 2 and CX-3 secured five stars because they “offer very good occupant and pedestrian protection, and have autonomous emergency braking available as an option”.

Heavy demand for this year’s allocation of permits The Imported Motor Vehicle Industry Association reports 2014’s quota of left-hand-drive permits has run out.

Only 34 for special-interest vehicles remain for this year. New applications for stock not in New Zealand will not be accepted for the rest the year.

The fresh quota for both kinds of permits becomes available on January 1.

14 www.autofile.co.nz

new cars

Get personal with crossover T

he Suzuki Vitara is back with a fresh body underpinning new technology and equipment.

For the first time, owners can personalise their crossovers with contrasting roof-paint finishes, body colour-matched dashboards and accessory kits.

Five versions are being launched in New Zealand with the choice of two and four-wheeldrive (4WD), two specification levels and manual or automatic transmissions.

Despite being 130mm shorter than the Grand Vitara, they offer the same interior space and come better equipped.

The new model retains a highbody configuration offering easy access, 185mm ground clearance, and 18.2 and 28.2 degree approach and departure angles.

Suzuki’s new Vitara

Although based on the S-Cross’ platform, the five-door Vitara inherits much of the heritage from earlier Suzuki 4WDs while 2WD options widen market appeal.

Friction reductions combined with weight savings in the engine and related components help the multi-valve M16A four-cylinder, 1.6-litre unit achieve 86kW of power at 6,000rpm and 156Nm of torque at 4,400rpm.

The entry-level JLX 2WD has a recommended retail price of $27,990, plus on-road costs, and has a five-speed manual transmission with gear ratios optimised to make best use of the powerplant.

The other four Vitara models have a new six-speed automatic transmission with wide gear ratios to aid quick response at low speeds.

All variants come as standard

with power-assisted steering, cruise control with speed limiter, and an intuitive seveninch touchscreen display with voice-actuated audio navigation system, smartphone connectivity, hands-free connectivity and reversing camera.

Fog lamps and LED daytime running lights, silver roof rails, and privacy glass on rear side and back windows are standard on the JLX and LTD. The LTD adds a glass sunroof, keyless entry with push-button start, a six-speaker audio system instead of the four in the JLX, and electrically folding door mirrors with integrated turn signals.

LTD models also feature carbon panel detailing, an overhead console box, chrome-accent grille, parking proximity sensors and automatic rain-sensing wipers.

Sedan’s safety boost VEHICLES WANTED

E

xtra body rigidity and design identity will feature on the 2016 ES series, which arrives here later this year.

Lexus’ signature design feature, the one-piece spindle grille, is bolder, while the new LED headlights and fog lights have been moved to the corners to emphasise its wide stance.

The midsized sedan has L-shaped tail-lights, and new chrome rectangular exhaust outlets and 17-inch alloys.

Starting with 10 standard airbags, it boasts an array of driverassist technologies.

The marque’s “safety system plus” package combines the pre-collision system, lane-departure alert with steering assist, automatic high beam and high-speed Lexus’ ES 300h

dynamic radar cruise control.

Engineering to lessen whiplash injuries remains a feature for the front seats with the aim of decreasing the severity of rear-end collisions.

In the cabin, there are new soft-touch materials, door trims, dashboard and colours. The sportier steering wheel is fitted while the multi-information display increases in size to 4.2 inches.

The ES 300h continues with a 2.5-litre four-cylinder motor combined with an electric motor and electronically controlled continuously variable transmission.

The 350 has a 3.5-litre V6 engine and six-speed automatic transmission.

Full specifications and pricing will be announced closer to the launch.

Mercedes Benz

Volkswagen Nissan Lexus Kia

Toyota Chrysler Jeep Dodge We are always looking to purchase late model

NZ NEW CARS AND COMMERCIALS PAUL CURIN

0274 333 303

pcurin@miles.co.nz

miles motor group www.autofile.co.nz

15

Industry movers NZ labour market report JASON McHERRON has been appointed as an adjudicator to the Motor Vehicle Disputes Tribunal for a five-year term.

Amy Adams, Minister for Justice, describes him as a “highly respected barrister who brings a wealth of experience to this role”.

She adds: “His skills and knowledge will see him make a good contribution to the tribunal.”

McHerron, pictured, replaces Nicola Wills as being responsible for hearing cases for the South Island and lower North Island from New Plymouth to the Hawke’s Bay. He has been practising as a barrister sole since 2006. Prior to this, he worked for nearly seven years at the Crown Law Office as crown counsel, and associate and assistant to that position. Before this, McHerron was a solicitor with Russell McVeagh.

KATE BAKER is the new marketing manager for Trade Me Motors.

She joins the company after two years at Wellington City Council where she worked on a portfolio that included economic development, policy and events.

Baker previously spent several years as marketing and communications manager at Wellington Zoo. MARK GILBERT, pictured, has been reappointed as chairman of the Motorcycle Safety Advisory Council, which represents bikers and advises ACC on initiatives to make motorcycling safer.

Current council member Yvonne Forrest, who is vice-president of the Women’s International Motorcycle Association, has also been reappointed for another term.

New appointments are Johan Bosch, David White and Alan Petrie.

Nikki Kaye, Minister for ACC, says: “Johan has good networks through his association with motorcycling clubs, and brings experience of the health and safety sector.

“Alan has a strong background in private-sector leadership, and rider safety, education and engagement, while David brings extensive government sector experience.”

NICK CLARKE, pictured, is stepping down as chief executive officer of ANCAP at the end of September to pursue other interests.

He has been with the organisation for 10 years in a number of roles. In this time, he built strong consumer recognition and support for it across Australia and Asia-Pacific.

ANCAP’s long-standing chairman Lauchlan McIntosh is reaching the end of his term. He is handing over to Wendy Machin, deputy president of the National Road and Motorists’ Association. McIntosh will remain on ANCAP’s board as a deputy chairman.

GRAEME HAWKINS has stepped down as chairman of the board of Ports of Auckland. Deputy chairman Rodger Fisher has taken the position on an interim basis. Hawkins had been a board member since September 2009 and chairman for the past 18 months.

TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ 16 www.autofile.co.nz

Question: I started my own business a few years ago and it’s starting to grow rapidly. What are the main areas I need to consider as it develops?

Answer: When your company starts to grow it is exciting. With growth comes new opportunities and some challenges.

“Decisions made at this stage can have a lasting impact on the success of the business,” says Chris Leatham, of PwC’s tax and private business practice in Wellington.

“Some of the top issues to consider include cash flow, banking arrangements, tax costs and having the right people to help you.”

Everyone has heard “cash is king”, but it’s often forgotten that understanding cash flows on a monthly basis and your working capital cycle are also vital as you expand.

Understanding how long it takes to convert a sale to cash, or a purchase of a stock item to a transaction, is information that needs to be understood.

If your business has a long conversion time from sale to receipt of cash, this needs to be built into cash forecasting.

Having rolling cash forecasts and good management reporting – for example, sales and inventory reporting that support accurate cash-flow forecasting – are defining features of successful growing businesses.

“Your road to growth will also be easier if you develop a strong relationship with your bank,” says Leatham.

“It’s important your bank understands your business and ambitions. This can be the difference between success and failure at critical times.”

An open relationship benefits both sides, and communicating the good and bad helps to build trust that’s vital to a growing business.

Tax obligations are often forgotten when it comes to talking about growth. As a company gets

bigger, there are generally more tax obligations such as income tax, PAYE, GST and so on.

Business owners sometimes fall into the trap of deferring these payments when cash flow is difficult only to later get themselves in trouble.

Leatham says: “It’s best to think about this early, consider how to fund growing tax payments and consider tax financing options for income-tax payments.

“There are innovative, unsecured and low-cost ways to finance your tax payments that are legitimate but still little known.

“Lastly, an independent perspective on the business can bring clarity and purpose.

“You can easily be caught up in the day to day whirlwind of operating.

“Having clear commercial advice from a trusted source – be it your mentor, board, accountant or lawyer – can help ensure your business doesn’t make the same mistakes others have, and continues to grow and succeed.”

Another matter to consider when expanding a business is the impact of the skills shortage that’s bigger than at any point in the past six years.

In New Zealand, 84 per cent of chief executive officers say the availability of key skills is a threat to their organisation’s growth prospects.

To solve the conundrum, bosses are increasing their use of contingent and part-time employees, outsourcing and service agreements to fill talent gaps. They are also looking for a wider mix of skills than in the past.

“The digital age has transformed the skills shortage from a nagging worry into something far more challenging,” says Scott Mitchell, PwC partner and business adviser.

“New places, geographies and pools of talent must be looked at because organisations can’t afford to recruit people as they have always done.”

f & i focus

Spring into action for business N

ow is the time of year we begin to become aware about workshops advertising to carry out summer safety checks on people’s cars.

“Come in for a free 20-point safety inspection” is one of the advertising catch-cries we often hear.

This is a good thing because it gives the consumer a sense of comfort to know their vehicle is checked to ensure it is roadworthy and there are no major faults with it.

It is good for the workshops in that they are doing something for the community, increasing their databases and hopefully finding something in need of repair or replacement. All in all, it is a winwin situation.

It is always good to get your car checked out, to give it a health check-up.

What about your dealership?

When was the last time It’s a good idea to your business had a start with the look of health check-up? the dealership, such as I don’t mean a weeds growing in the financial check-up, yard, paint peeling off, but actually stopping mould growing and and having a look so on. around your business Often it is not a big as seen through the job to spruce up the SIMON MOORE customer’s eyes. physical appearance Motor-trader development manager I know some of a car yard, but Protecta Insurance dealers mystery shop it does make a big their business and that usually difference to your customer’s turns things up they are unaware perception of the business. were occurring.

You can also look at each Occasionally, I watch department of the dealership. It Undercover Boss. I know it is a is worthwhile listening to what reality show and it is hammed up members of your sales team are for television, but what would you saying to customers and ensure find out if you became a customer that they following your processes. of your dealership?

Are they saying the right Spring is always a good time things? If you have a business to step back and look at your manager, are they trained and business from the viewpoint of skilled in recent legislation being a customer. changes? Are your sales staff

turning over correctly or preconditioning the buyer?

As you go through each department – from reception to grooming and the workshop if you have one – check to see how deposits are being dealt with.

Who is responsible for taking deposits, are they being handled correctly with the right forms completed and are the correct disclosures being declared?

This is a good way to ensure your business is maximising its opportunities. A good question to ask yourself is whether you are giving the customer a reason to come back.

Spring has sprung and this is always a good time of the year to take a step back to look at your dealership and give it a quick health check so you are ready for the rest of the year and prepared for challenges ahead.

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Contact Erin Mills Business Coach, Protecta Insurance Email: erin.mills@protecta.co.nz Phone: 0800 776 832 www.autofile.co.nz

17

disputes

Tribunal finds buyer was misled by trader when she purchased vehicle

ruled the vehi dropped due to the trader’s misleading conduct. It had to pay the buyer $4,545. r Vehicle Disputes At: The Motoersto n North.

Tribunal, Palm

The finding The tribunal was satisfied the the purchaser following the BMW buyer was misled by the trader’s being written off. conduct in representing on the For the tribunal to make CIN that the vehicle hadn’t been an order pursuant to section re-registered.

43 of the FTA, the person in It was also satisfied the whose favour the order was purchaser very probably asked contemplated must have the dealer before she bought suffered, or be likely to suffer, the car if it had been in a loss or damage as a result of the collision, and that Coutts had misleading conduct. breached the Fair Trading Act The tribunal was satisfied (FTA) by being “misleading and there was a clear link between deceiving” because she was the misleading conduct and the informed that it hadn’t been. purchaser’s decision to buy the The tribunal ruled the BMW, which left her with a car trader misled the buyer in two that it found to be worth less respects. It represented on the than the amount Thomson had CIN that the BMW hadn’t been paid for it. re-registered when it had been The buyer had clocked up and told Thomson the car hadn’t 13,400km during the seven been in a collision when it months that she had owned the clearly had been.

BMW and before it was written off.

It was satisfied Thomson was The tribunal decided the misled and the dealer’s conduct fairest remedy was for the trader in misleading her regarding to pay damages equivalent to the vehicle’s history and its the difference between the The TRUSTED online involvement in an accident wassite. purchase price of $9,995 and the wholesale trading autopoloss rt.net amount she received for it from the cause of the purchaser’s or damage. h eNZI, which was $5,450.

Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth The tribunal found those Wanganui factors Biggest increases/Decreases Palmerston North Masterton Wellington By town year-on-year Nelson Blenhei m Greymouth Whangarei Auckland (OctOber 2013 vs OctOber 2012) were taken into account by NZI in Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Biggest increases deciding to reduce the valueMasterton of Wellington NelsonThe Blenheimdealer Greymouth was ordered to pay the Westport Christchurch Timaru Oamaru Dunedin buyer the vehicle and the amount Initvercargi paid ll Whangarei Auckland Hamilton $4,545.

Thames westport thames napier

wanganui gisborne timaru

c t o b e r 2 0 13

new

 100.0%  51.2%  34.1%

Blenheim nelson rotorua

 27.7%  26.8%  23.7%

9000

J

F

M

A

M

J J

A

westport Masterton timaru

Used

  

6000

Used 8545

5000

New

7962

7000

6000

3000

2000

South Island

SEP ‘13

JuL ‘13

Nov ‘12

SEP ‘13

Oct ‘13

JuL ‘13

AuG ‘13

JuN ‘13

MAy ‘13

FEb ‘13

APr ‘13

MAr ‘13

JAN ‘13

APr ‘13

1000

4000

FEb ‘13

Oct Nov Dec y Jun Jul Aug Sep Jan Feb Mar Apr Ma

North Island

4000

5000

Nov ‘12

5500

M

North IslaNd versus south IslaNd

8000

DEC ‘12

6000

2

7000

JAN ‘13

2012

en

Used Vehicle RegistRatiOns

New versus used

MAr ‘13

6500

PassengeR Vehicle RegistRatiOns

10000

DEC ‘12

2013

mo am 1,4 th 11

Biggest decreases

new

ConneCt & engage 7000

Oc hig

Used

AuG ‘13

7500

S

Order

Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua

8000

I

co

d

try

The tribunal accepted 9000 Thomson’s and her mother’s 8500 evidence about the CIN.

n: The tribunal The decisio cle’s value had

un

When Thomson bought the vehicle her mother accompanied her. Both told the tribunal that before Thomson agreed to buy it, she asked the trader’s director, Mr S Coutts, if it had been in a collision and he replied it hadn’t.

Thomson said she wouldn’t have bought the BMW if she had known it had been involved in an accident. Coutts denied Thomson asked if the car had been in a crash.

The dealer supplied Thomson with the front page of the CIN, which noted the vehicle wasn’t re-registered.

The trader admitted the information was wrong and he had only found out when he read 10000 the buyer’s claim it had been re9500 registered.

The solicitor told the dealer that Thomson considered the matter has been resolved.

However, the trader took action to recover the outstanding debt, which resulted in the buyer filing a claim on March 23, 2015, with the tribunal.

JuN ‘13

The case

It was established that on July 18, 2014, the BMW was involved in a crash and NZI wrote it off.

The insurer’s documents stated the valuations it obtained for the BMW were $6,500 and $5,000.

NZI said the valuations were low because the car had been written off and re-registered in late 2009 or early 2010, and “this affects the value of a vehicle”.

Thomson had financed his purchase through a credit contract with MTF and the trader.

NZI paid $5,450 to the MTF leaving a balance of $5,450 to be settled by Thomson. The dealer demanded that Thomson pay the balance owing under the loan agreement.

The trader, which was represented at the hearing

by Coutts, said it had made a mistake when completing the CIN by showing the vehicle hadn’t been re-registered.

But Coutts denied Thomson had asked him if the vehicle had been in a collision and denied saying it hadn’t been in a crash.

He said the dealer settled the amount owing to MTF on October 10 and sent an email to Thomson three days later, which stated the trader was debited with $5,239 and asked her to settle that sum.

Thomson did not do so.

Instead, she had her solicitor write to the trader on October 29 advising that she had been misled when she bought the BMW and was prejudiced by her insurer as a result.

the buyer of owing to Motor Trade Finances (MTF) after it was involved in a crash and written off. It was claimed the dealer misrepresented the car on the consumer information notice (CIN) by not saying it was previously involved in an accident.

MAy ‘13

Sarah Thomson bought a 2001 BMW 320i from Awapuni Auto Centre, trading as Cartown, for $9,995 on November 15, 2013.

She claimed the trader misrepresented it by saying it hadn’t been in a collision when the opposite was later discovered.

Thomson said the dealer supplied her with a CIN, which stated the car hadn’t been re-registered.

The trader admitted it erred in stating on the CIN that it hadn’t been re-registered, but denied it told Thomson the BMW hadn’t been in a crash.

Aroun

Background

The trader wanted The case:a BMW to pay money

8500

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch

4500

hamIltoN, tauraNga, duNedIN, PalmerstoN North

8000

4320

600

4000

3000 hicles sold

18 www.autofile.co.nz

Auckland

2000

500

7500

Hamilton

400

2500

7000

icles sold

3500

300

Tauranga

disputes

Application thrown out because no faults occurred with car after supply The case

Trevor Webb bought a 1999 Land Webb said the trader advertised Rover Discovery with 193,438km the vehicle for sale in three issues on its odometer for $12,000 on of Central Motoring – The Buyer’s December 3, 2014. He claimed he Guide. purchased it from BBM Enterprises, The tribunal noted the dealer trading as BB Cars. took a quarter-page advert in He said the vehicle wasn’t of which the buyer’s vehicle was acceptable quality and wanted advertised for sale with two other to recover costs quoted for trucks, a half-page advert for five repairs from the dealer under the trucks including the Discovery, Consumer Guarantees Act (CGA). and a half-page with five vehicles The trader said it didn’t sell the including the Land Rover. car to Webb, but it was supplied Webb said he contacted the privately by its director, Mr G Bate, trader after seeing the Discovery and denied it was responsible for in the guide. repair costs.

Bate said he told Webb he was It added that if it was held to selling it privately when he first have sold the Discovery, then Webb inquired about it. wasn’t entitled to recover costs Webb said he wasn’t told it was because there had been no failure a private sale until after he had testor fault with it. driven the car on December 3, 2014.

The dealer added Webb Bate used a standard vehicle wanted it to pay for preventive offer and sale agreement, and maintenance, and it wasn’t had written “private transaction” responsible for any remedial work in the space set aside for the given the car’s age and mileage. trader’s name.

Section 90 of the Motor Vehicle Autoworx serviced the vehicle Sales Act states the tribunal has and gave it a warrant of fitness paid xxxxxxxxxxx jurisdiction if one party to the for by the buyer on December 2. application is a registered trader and After taking delivery of the car, Bates has been one since May 2014.

Webb said its clutch was engaged amount of stock held sales. boostingfirewall Christchurch The that legislation defines a down dealer close toare the when hebyhe after the global did come dropped to this year’s low of tock levels of new cars have used car dealers during “Trades people are upgrading financial crisis [GFC].

18,653 in January. increased every month October was the highest their vehicles,” says Crawford. then increased released levels “Stocking executive chief Crawford, David as “any person who carries on the the pedal and there with year, this except one the year. a monthly total ofwas passenger cars aren’t so “Although the to respond they and again Industry officer of the Motor ctober’s total of 29,509 being the There were 10,374 units hot, SUVs are. number of new vehicles sold and Association (MIA), says current ghest of 2013. with a month last imported business of motor-vehicle trading noise when it was depressed. market “People in the housing the rate at which they are sold. models aren’t sitting around in There were 7,962 sales last variance of 1,829 on 8,545 sales. are refinancing their mortgages “They basically go up when stock for too long. onth, also this year’s biggest The number of cars in stock items especially big-ticket buy to sure so not I’m but up, whether or not that person carries He said Bate acknowledged go sales manage to “The industry tends mount, while the variance was amounted to 9,323 compared to when they are confident about stock levels quite well and does this about the days stock is held for 400 with 9,362 units imported – 7,494 in September. being longer and can’t explain that. keeping their jobs.” ” he told Autofile. day in, day out, on after any other business”. theAll that problem at the time ofhave been two other he second highest amount There said, some of the sales per day came “Average a is this suggests data “My 1,065 imports in August. major increases during 2013 – with such as Hawke’s centres, regional before and GFC the during down no cyclical thing and levels were The total stock figure at the between imports and sales variances aren’t North, Traders include importers, purchase and said it was the Palmerston and Bay ” that they were much higher. higher in previous years, but they nd of December was 20,683 and of 3,121 in April and 2,507 in May. showing as much growth as If 80,000 vehicles are sold one Graeme Macdonald, chairman other centres. bearing. year and 100,000 are sold the wholesalers, and car auctioneers release of the North Island branch of the “But 80 per cent of New Zealand’s following year, the average sales Dealer stock of new cars in New Zealand - Oct 2013 Imported Motor Vehicle Industry population is in Auckland and per day should be higher – and and consultants.

Webb said in error that hesays the current Association, Christchurch.

2012 the MIA is expecting more new stockpile should correct itself – as it “If you add in Dunedin and vehicles to be sold this year than normally does. centres cover a Wellington, thesemechanical The buyer claimed the trader thought breakdown 2012. during “If the monthly stockpile was large proportion of the population There were 54,404 sales in 2009, on a regular basis it means and all have strong economies.”

64,019 in 2011 in 2010, 62,029of had breached section two the cover, which was taken 10,000 out atholding thenumbers,” are solid there Year to date, 77,438 new cars and 76,871 in 2012, and the MIA is he told Autofile. “North of that 68,612 and imported been have passenger 82,000 about predicting looking at an be would we and a CGA, which applies to the sale of time of purchase, would pay to give to registered been have vehicle and SUV sales this year. oversupply issue. variance of 8,826 so far this year.

“We’re looking at about 30,600 “There was good buying in Japan at hand has Days with stock light commercials and we’re on goods or services by a supplier. replace the clutch. in March, and we saw high arrival been steadily increasing from 78 in New Passe 113,000 new dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

12,984

MIA stock estimate as at end of December 2011

Jan ‘12

5,026

7,499

(2,473)

10,511

242

43

Feb ‘12

7,368

5,633

1,735

12,246

223

55

Mar ‘12

7,228

6,499

729

12,975

218

59

Apr ‘12

6,285

5,430

855

13,830

209

66

May ‘12

7,742

5,942

1,800

15,630

205

76

‘12 Jun  95.5% ‘12 Jul  64.9%  52.0% ‘12 Aug

8,870

7,142

1,728

17,358

211

82

7,894

6,208

1,686

19,044

209

91

8,589

5,959

2,630

21,674

207

105

Sep ‘12

6,828

6,637

191

21,865

209

105

Oct ‘12

8,155

7,336

819

22,684

211

107

25,153

212

119

1,714

26,867

211

128

13,883

220

31 Oct

6,769

34,559

220

34,293

222

4,237 Yokohama 6,828

100

21 Oct 80 138

157 22 Oct 60

1 Nov

2013

Mitsubishi

15 Nov

Honda

16 Nov

2012

Volkswagen

Kia

17 Nov

226

158

40

-

-

-

20

-

-

-

Wellington 68,612

Lyttelton 82,380

8,826

7 Nov

13- Nov

16 Nov

0

17 Nov

4 Dec

23 Nov

11 Dec

29 Nov

11 Dec

BMw

Subaru

Audi

Mercedes-Benz

Peugeot

Jeep

PORT TO DOOR SERVICE

h

Ssangyong

Dodge GENEROUS REWAR DS

INCLUDIN G: WE BE LOOKING AT YOUR BUSINESS? SHOULDN’T PROGRAMMESkoda

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495

26 | www.autofile.co.nz 290

Lexus

Land Rover Ship your motor vehicles on Armacup vessels andMini you Chery can earn seamiles points for

Dec

35,693

-

oct

(266)

-

nov

go to www.autofile.co.nz/subscribe for the latest industry news TARGETED ADVERTISING SPACE 154

7,272

Auckland 1,400 7,962

sep

77,438

2013 predicted sales

1,654

30,322

120

JUL

Oct ‘13

ytd total

30 Oct

130

aUG

-

20 Oct

JUn

-

Dec ‘13

132

220

apr

Nov ‘13

125

214

28,668

may

9,362

1805

216

28,159

Feb

7,006

Oct ‘13

27,077

509

mar

11,065

Sep ‘13

25,594

1,082

Jan

Aug ‘13

(471)

1,483

Dec

8,423

6,347

oct

Jul ‘13

6,800

5,908 Osaka 7,542 Nagoya

nov

Jun ‘13

8,051

Hyundai Mazda

Nissan Morning Miracle Suzuki V5

sep

7,429

JUL

7,391

May ‘13

Sepang Express V9

aUG

6,329

Apr ‘13

LATEST SCHEDULE

JUn

Mar ‘13

223

apr

7,027

238

26,065

(2,030)

may

Feb ‘13

180

160 104 Hoegh Xiamen 117 140 115V20 222

24,837

7,385

Ford

Order

StoCk

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

8,579

3,191

6,375

(3,184)

5,395

206

26

Feb ‘12

4,920

6,000

(1,080)

4,315

210

21

Mar ‘12

6,504

6,429

75

4,390

209

21

Apr ‘12

6,613

5,877

736

5,126

206

25

May ‘12

7,693

6,793

900

6,026

208

29

Jun ‘12

6,947

6,184

763

6,789

208

33

Jul ‘12

5,335

6,641

(1,306)

5,483

209

26

Aug ‘12

5,540

6,621

(1,081)

4,402

210

21

6,222

(716)

3,686

209

5,506

18

12 nger VehicleMay 211 2,507 (1,179) 6,867 5,688 Sales need to bear in Oct ‘12

by Make - “Dealers and June. numbers in April, Novemalso ber 2013 18 213 3,810 1,303 8,486 ‘12 nger Vehic Passe mind it takes four to six weeks to New Nov “The stockpile occurs more at le Sales7,183

by Mode 14 Nov '13 215 (705)l - 3,105 Nov '12 Novem 7,119 Nov '13 6,414 ber ” +/‘12 Dec Japan.

2013 % from stock get 2013 Mkt certain times of the year. Since Mkt Share 2013 total (5,474) 78,311 Share 72,837 Model say 300 Make ytd total Larger operations, of in Nov '13 Nov '12 +/back into the I came1746 Nov Mkt 2013 2013 Mkt 1190industry46.7 % 23.4% Share total 14670 19.3% Share dAyS AVerAge Toyota Corolla 685 USed ImportS 673 StoCk SALeS per StoCk 1.8 35.5 Imported626 SoLd462 VArIANCe 9.2%import8102 cars 8.4% dAy5283 2013 Days stock in nZ - UseD hANd 10.7% - ytd At 6.9% Toyota RAV4 618 596 289 3.7 80 261.3 8.3% 3105 3.9% 2521 6519 at the end of December 2012 8.6% 3.3% 180 Holden Total stock Commodore 572 624 260 -8.3 0.7 171 239 7.7% 176 52.0 (2,929) 7,397 4,468 6695 3.5% 2399 8.8% 3.2% Mazda Jan ‘13Cx-5 160 512 6 243 485 1,501 1,325 6,922 239 8,247 5.6 141 Feb ‘13 6.9% 69.5 5447 3.2% 1989 7.2% 11 243 2.6% Toyota Mar ‘13 2,772 1,271 7,581 Liberty 140 382 8,852 yaris 281 35.9 227 267 -15.0 5.1% 3342 4.4% 5,893 2235244 2.9%24 3,121 3.0% 7,418 10,539 Suzuki Apr ‘13 V1 Swift 120 376 405 -7.2 218 34 250 5.0% 254 8,400 2,507 2.9% 8,460 -14.2 4436 10,967 May ‘13 5.8% 2750 3.6% Ford 351 34 Mondeo 252 272 8,627 227 7,862 29.0 8,089 184 Jun ‘13 4.7% 29100Nov 98 87.8 3661 2.5% 1201 261 1.6%29 4.8% 7,621 (1,006) Hyundai Jul ‘13 9,629 310 8,623 ix35 312 -0.6 80 168 4.2% 81 107.4 (13) 2.3% 2994 3.9% 7,608 1338 263 1.8% 29 8,648 8,635 30 Nov ‘13 Aug Mitsubishi 288 261 Lancer 10.3 29 168 262 3.9% 60 7,494 (114) 7,615 84 3527 7,501 100.0 Sep ‘13 4.6% 2.3% 894 Toyota 202 263 1.2% 35 240 9,323 1,829 8,545 -15.8 1 Dec 2013 10,374 ‘13 Oct Camry 2.7% 168 131 40 2563 28.2 3.4% - 1.7% - 2.3% - 1270 172 Holden ‘13 NovCaptiva 178 -3.4 2.3% 135 1861 319 - -57.7 20 2.4% 19 Dec - 1.8% - 2039 ‘13 2012 2.7% 165 Volkswagen DecGolf 153 7.8 2.2% 134 80,077 30.1 6,218 1645 86,295 103 ytd total 2.2% 0 1.8% 1469 1.9% 163 Toyota 26 Dec 150 Highland 96,145 8.7 er sales predicted 2013 2.2% 118 1748 79 2.3% 49.4 1.6% 1092 1.4% 128 Ford 82 Focus 56.1 1.7% 114 1398 29 Dec 212 -46.2 1.8% 1.5% 1429 108 1.9% Honda 60 80.0 Jazz 1.4% 113 1001 1.3% 1.5% COMMERCIAL STATISTICS76 48.7 922 92 OF THE NEW AND USED 1.2% 65 SPONSORSHIP Ford 41.5 Kuga 1.2% 775 1.0% 18 522.2 FOR YOUR BUSINESS 112 AVAILABLE PAGES IS NOW 1.5% 952 86 1.3% 49 Mazda 75.5 Mazda3 1.2% 724 109 1.0% 151 -27.8 1.5% 1537 64 2.0% 46 le.co.nz Toyota 39.1all enquiries 775 or email on 021 455 Aurionbrian@autofi107 0.9% contact For 478 Brian0.6% 23 365.2 1.4% 447 63 0.6% 56 Holden 12.5 Cruze 0.8% 654 106 0.9% 80 32.5 1.4% 1925 54 2.5% 44 Hyundai 22.7 0.7% Santa Fe 508 103 0.7% www.autofile.co.nz | 27 261 -60.5 1.4% 1847 51 22 2.4% 131.8 Honda 0.7% Civic 443 0.6% 100 115 -13.0 1.3% 44 852 43 1.1% 2.3 Mitsubis hi 0.6% Outland 474 er 0.6% 97 118 -17.8 1.3% 1258 34 21 1.7% 61.9 Hyundai 0.5

Subscribe - FREE 26,867

Port 1,228 5,799Calls

Feb

5,355

Make

Toyota

Holden

Days stock in nZ - new cars

mar

Jan ‘13

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

January to 131 in October.

Last year 90,754 units were imported and there were 76,871 sales for a variance of 13,883.

USed ImportS VArIANCe SoLd

Jan ‘12

Sep ‘12

Days of stock

NeW CArS SoLd

Imported

Total stock at the end of December 2012

6740

Imported

Total stock at the end of December 2011

850 wds

Payment protection

2,469

6,102

76,871

6,484

7,816

Jan

2013

The finding

TWO SAILINGS PER MONTH JAPAN TO NZ

8,953 90,754

Days of stock

Nov ‘12  41.7% Dec ‘12  20.0% ytd total  12.4%

track for 112,000 or vehicle sales overall.”

Business confidence being high and strong regional economies in Auckland and

At:

12% 14% 13%

GAP

StoCk

VArIANCe

The decision:

Finance

T

S

NeW CArS SoLd

In January 2015, Webb said the disc pads were not releasing from the rotors and The tribunal the brakes made a noise. ruled the vehicle complied with A month later, Webb took the consumer legislation and dismissed vehicle to Bayswater European for the purchaser’s claim for a refund. a post-purchase inspection.

The Motor Vehicle Disputes It reported the clutch engaged Tribunal, Palmerston North. low in the pedal stroke although the operation was fine.

Coolant leaked from the engine Bate said he advertised it hose under the exhaust manifold, for sale soon after purchasing and there was an oil leak from the it because his wife didn’t like its turbo oil drain-pipe gasket. manual transmission.

The right-front brake was overheated and a seized brake calliper was suspected.

The tribunal – in deciding Oil leaked from the fuel whether the Discovery complied injection’s wiring loom connector with the CGA’s guarantee of and had entered the engine control acceptable quality – considered unit, which needed commercial its age and mileage. cleaning and its wiring and fuelIt also took in account its injector harnesses replaced. The purchase price of $12,000 and cost of repairs, including GST, was that the vehicle had travelled estimated at $6,490.

2,000km since it was supplied.

On March 2, Webb emailed the It was acknowledged by the dealer and stated the vehicle was purchaser that nothing had failed not of merchantable quality.

He listed a number of xxxxxxxxx on the car or become faulty since he bought it. outstanding problems, and said he The tribunal ruled the clutch wanted to return it and obtain a was perhaps near the end of its $11,000 refund. always been the way. are more static with their 1996, it has ebbed and flowed.” life, when and there might have been Webb insistedunits, nothing on much.the “You can oversupply not changing too holding Used car stock levels are buying conditions are good, but A drop of 50 units may not be traditionally based on what’s normally corrects the marketplace vary can stock But drastic. too minor oil and water leaks. what vehicle had failed.

Bate told the and Japan in happening or enormously by proportion on yards itself by pulling back from Japan consumers are buying here. selling down. The numbers might with 30 to 40 cars. improved Conditions there have It decided the vehicle was of tribunal he wanted preventive drop for a month or two before “They can suddenly be selling recently and the exchange rate trundling up again. without having bought for a few has gone up. supply-chain magic no “There’s acceptable condition because no down maintenance done on it at the units 10-15 weeks and being “October and November are miracle. When it’s slow, it tends to be makes them more susceptible,” normally difficult for the industry, slow for everybody. If you can get says Macdonald. to go so the stockpile tends faults had occurred since it was trader’s cost. good supply with a good exchange “Dealers then jump online to up,” says Macdonald. “But trade rate, everyone benefits.” buy more from Japan, but that’s swings up over Christmas and the purchased.

Bate said he advertised the holidays, so it goes down.

“December and January are car imports in New Zealand - Oct 2013 of usedadverts stock Discovery for sale Dealer in BB Cars’ good months for sales because people take time off work, the kids 2012 may have are off school and people because there was space available.

Christmas bonuses or holiday pay.

“It’s a time when Kiwis tend to The application to reject the He bought the Discovery on make financial decisions, so dealers need to have plenty of stock to vehicle was dismissed because October 9, 2014, with 190,848km match demand.

“When the market’s down in Japan, stock is hard to get. When the car complied with the CGA’s on the clock and registered it in it’s buoyant, you tend to buy what you can because you don’t know guarantee of acceptable quality. his name.

17% what will be available next time.

Annual high for stockpile

Industry manages levels well

Imported

to reject a 15-y Discover y imported from South Africa because he claimed it wasn’t of acceptable quality and needed work estimated at $6,490.

The trader said he sold the car privately, and wasn’t responsible for the repairs given its age, mileage and price.

Insurance

Background

buyer wanted The case: The ear-old Land Rover

22% 9% 8500

www.autofile.co.nz 19 8000

16%

7500

New P

Brought to you by

the

c

u

u

d Auckland Hamilton Thames o Whangarei n Tauranga Rotorua Gi sborne Napi e r New Plymouth Wanganui Palmerston North Masterton Welli n gton Nelson Blenheim Greymouth

New passenger vehicle registrations by city

ry

Aro

nt

Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim GreymouthA Whangarei Auckland Hamilton Thames 5 ugu st 201

Used import passenger vehicle registrations by city

5000

6500

4500 6000

4000 3500

6,003

5500

3,654

3000

Auckland

5000

Auckland 2500

2000

1500

1750

1000

1500

900

Vehicles sold

Vehicles sold

2000

Christchurch 842

800

1,483

Christchurch 1000 900

700

927

Wellington

836

800 600

626

Wellington

Hamilton

700 500 600

Hamilton

Tauranga

400 300

388

500

282

400

Tauranga

200 100

Dunedin

357

300

192 157

Dunedin Palmerston North

537

303

Palmerston North

200

0

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

AUG ‘14

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

AUG ‘14

0

New and used cars registered in August 2015 by region WHA

AUC

HAM

THA

TAU

ROT

GIS

NAP

NEW

WAN

PAL

MAS

WEL

NEL

BLE

GRE

WES

CHR

TIM

OAM

DUN

INV

TOTAL

Used cars

264

6,003

836

70

537

118

42

223

201

75

303

49

927

209

53

46

9 1,483

90

29

357

137 12,061

New cars

142

3,654

388

44

282

100

31

184

124

60

157

53

626

81

47

9

7 1,385

68

13

192

105

Total cars

406

9,657 1,224

114

819

218

73

407

325

135

460

102 1,553

290

100

55

16 2,868

158

42

549

242 19,813

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17 Sep

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17 Oct

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Yokohama

18 Sep

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Auckland

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21

www.heiwa-auto.co.nz

Lack of supply poses problems

A

car dealer in Christchurch says it’s proving difficult to replace used imports he has been selling with fresh stock from Japan.

Craig Costello, of Costello Cars in Christchurch, says it is typical for stock to be in short supply at this time of the year.

“It has been tough to replace the stock that we’ve been selling with the yen the way it is and the lack of supply in Japan is also pushing prices up,” he told Autofile.

“The bottom line is prices are high and stock is low. I have seen it at this time of year before, although it seems to be getting better now.”

However, Costello believes

customers in New Zealand may be unwilling to absorb any price increases at this end of the market.

“I don’t think the market here can stand a price increase,” he says.

“What we can do though is buy stock that is slightly higher in kilometres or go back by a year or two, so instead of purchasing a 2006 model we will look to buy a 2004 model.

“I have found that when the dollar is lower, it is generally easy to buy cars, which goes against what you think. When the dollar is high, Kiwi dealers are prepared to pay more.

“I have been speaking to some of the larger dealers and they

have also been struggling to source the stock.

“Compliance shops are finding a lot of recent imports are failing because higher-kilometre stock is crossing the border and that requires more reconditioning.

“I tend to go back in model year when I’m purchasing stock instead of settling for higher-kilometre stock that is newer.”

There were 12,133 used passenger vehicles imported into New Zealand during August – up from 11,961 units in July.

The year-to-date total now stands at 102,710 with last month’s aggregate being the fifth highest of the year.

During August, 11,512 used cars were imported from Japan – up from 11,236 in July.

Second spot went to Australia on 409, down from its annual high of 477 in July for its fifth biggest month of the year.

The US took out third with 83 used cars crossing our wharves from there in August for its fourth highest monthly total of the year.

Next up was the UK on 64 units – down from 66 in July for its lowest total of 2015. Singapore came fifth on 45.

Meanwhile, total of 578 used commercials crossed our wharves in August, down from 599 in July, which was 2015’s biggest month.

Used import passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000

2015

9000

2014

8000 7000 6000 5000 4000 3000

2013 2012

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Import Passenger Vehicles By Country Of Export 2015

2014

2013

Jun ’15

JuL ’15

Aug ’15

Aug Share %

2015 Total

2014 TOTAL

2013 total

424

449

477

409

3.4%

3,197

3,167

1,990

73

108

66

64

0.5%

665

1,885

2,908

15,554

13,892

12,148

11,236

11,512

94.9%

97,635

130,770

100,784

17

48

55

57

77

45

0.4%

359

252

146

121

92

77

77

93

83

0.7%

681

1,278

1,205

Country of Export Jan ’15

Feb ’15

Mar ’15

Apr ’15

May ’15

Australia

258

407

414

359

Great Britain

110

87

86

71

9,635

9,357

14,301

Singapore

30

30

Usa

80

58

Japan

26

24

25

31

10

25

12

20

0.2%

173

286

251

10,139

9,963

14,964

16,155

14,531

12,864

11,961

12,133

100.0%

102,710

137,638

107,284

Other countries Total

www.heiwa-auto.co.nz contact: Kei Mikuriya mikuriya@heiwa-auto.co.jp

22 www.autofile.co.nz

Reliable Servicing New Zealand for 20 years

Proud to sponsor the SecondHand Car Sales Statistics

Mixed results across centres S

ales of used passenger vehicles by dealers to members of the public recorded a 4.5 per cent increase from 16,930 units in August 2014 to 17,698 last month.

This compared to a 0.9 per cent decrease in trade-ins from 12,534 to 12,416 and a 6.5 per cent rise in private transactions from 39,704 to 42,304 over the same timescale.

Masterton had the biggest jump in trader-to-public transactions from 146 to 175 – or by 19.9 per cent.

It was closely followed by Thames, where such sales rose by 19.4 per cent from 216 to 258.

When it came to public-totrader registrations, Wanganui topped the ladder with a 32.1 per

unit jump from 106 to 140 units.

Auckland came second in this category on the back of an 11.5 per cent increase from 4,263 to 4,755.

“We sold 80 used cars in August, which was our best used car month over the past several years,” says Grant Vincent, of Greenlane Hyundai in Auckland.

“We need to go out and find the stock. We are turning our demonstration units around reasonably quickly and working with our business partners to give them good returns on the values of their vehicles.

“It allows them to keep their vehicle fleets young and allows our used buyers to keep up with

the latest safety technology.

“We have been fortunate that there has been good inquiry for both new and used.

“Some late-model used cars are showing savings from new, but there are benefits of buying new vehicles with all of the latest specifications and great warranty plans.”

Neil Cottle, of Auto Court in Dunedin, says: “This winter has been quieter and that’s partially attributable to the weather.

“People have always come out in the winter to buy cars, but this has been one of the worst one for years because there is little incentive to venture outdoors.

“Dunedin was also recently hit

by a flood like Wanganui was and about 100 cars must have been written off here.

“I was staggered by the insurance companies writing off vehicles as soon as water levels reached seatbelt mechanisms.”

August’s biggest drop in traderto-public ownership changes was seen in New Plymouth where they fell by 13.7 per cent from 467 in the same month of last year to 403.

Dunedin was next with an eight per cent decrease from 678 to 624.

The centre that recorded the largest decrease in trade-ins after Westport, which went from one to none, was Thames with a 35.4 per cent drop.

Secondhand car sales - August 2015 Dealer-To-Public

Whangarei

Public-To-Public

Public-To-Dealer

Aug '15

Aug '14

+/- %

MARKET SHARE

Aug '15

Aug '14

+/- %

Aug '15

Aug '14

+/- %

563

519

8.5

3.2

1,859

1,675

11.0

209

257

-18.7 11.5

Auckland

6,107

5,542

10.2

34.5

14,621

13,561

7.8

4,755

4,263

Hamilton

1,499

1,433

4.6

8.5

3,203

3,204

-0.0

1,159

1,134

2.2

258

216

19.4

1.5

561

480

16.9

64

99

-35.4

Thames Tauranga

982

938

4.7

5.5

2,047

1,982

3.3

557

601

-7.3

Rotorua

302

296

2.0

1.7

923

711

29.8

93

130

-28.5

Gisborne

176

180

-2.2

1.0

362

347

4.3

107

99

8.1

Napier

587

531

10.5

3.3

1,525

1,364

11.8

366

373

-1.9 -13.2

New Plymouth

403

467

-13.7

2.3

1,006

994

1.2

249

287

Wanganui

199

172

15.7

1.1

544

437

24.5

140

106

32.1

Palmerston North

819

766

6.9

4.6

1,680

1,651

1.8

590

816

-27.7

Masterton

175

146

19.9

1.0

446

328

36.0

87

103

-15.5

Wellington

1,564

1,426

9.7

8.8

2,926

2,761

6.0

1,100

1,173

-6.2

Nelson

314

329

-4.6

1.8

886

957

-7.4

232

222

4.5

Blenheim

172

179

-3.9

1.0

445

404

10.1

112

116

-3.4

Greymouth

84

85

-1.2

0.5

207

198

4.5

40

50

-20.0

Westport

19

19

0.0

0.1

78

106

-26.4

0

1

-100.0

2,125

2,286

-7.0

12.0

5,456

5,342

2.1

1,670

1,765

-5.4

241

231

4.3

1.4

562

557

0.9

127

132

-3.8

Christchurch Timaru Oamaru

67

67

0.0

0.4

160

198

-19.2

24

28

-14.3

Dunedin

624

678

-8.0

3.5

1,815

1,560

16.3

424

484

-12.4

418

424

-1.4

2.4

992

887

11.8

311

295

5.4

17,698

16,930

4.5

100.0

42,304

39,704

6.5

12,416

12,534

-0.9

Invercargill NZ total

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23

new cars Passenger Car and SUV Sales by Private/Business split Make

Private

% Private

Business

% Business

Total

Alfa Romeo

6

60.0

4

40.0

10

Aston Martin

1

33.3

2

66.7

3

44

26.5

122

73.5

166

1

100.0

0

0.0

1

BMW

51

39.8

77

60.2

128

Chery

7

77.8

2

22.2

9

Chrysler

0

0.0

1

100.0

1

Citroen

12

70.6

5

29.4

17

Dodge

30

48.4

32

51.6

62

Fiat

32

84.2

6

15.8

38

Ford

150

36.5

261

63.5

411

Holden

200

27.7

521

72.3

721

Audi Bentley

Honda

209

63.1

122

36.9

331

Hyundai

166

25.0

498

75.0

664 17

Isuzu

8

47.1

9

52.9

Jaguar

11

50.0

11

50.0

22

Jeep

26

17.9

119

82.1

145

Kia

*Business sales include rental and government sales, and the totals include passenger cars and SUVs. SOURCE: MIA

173

56.5

133

43.5

306

Lamborghini

1

100.0

0

0.0

1

Land Rover

33

47.1

37

52.9

70

Lexus

14

31.8

30

68.2

44

Lotus

1

100.0

0

0.0

1

Maserati Mazda

0

0.0

3

100.0

3

320

43.1

422

56.9

742 154

Mercedes-Benz

50

32.5

104

67.5

Mini

20

48.8

21

51.2

41

Mitsubishi

250

61.4

157

38.6

407

Nissan

201

45.3

243

54.7

444

Peugeot

52

83.9

10

16.1

62

Porsche

20

62.5

12

37.5

32

Renault

6

75.0

2

25.0

8

Rolls-Royce

0

0.0

1

100.0

1

Skoda

31

33.3

62

66.7

93

SsangYong

52

30.2

120

69.8

172

Subaru

89

42.6

120

57.4

209

Suzuki

180

54.2

152

45.8

332

Toyota

310

20.5

1,199

79.5

1,509

Volkswagen

128

44.6

159

55.4

287

20

41.7

28

58.3

48

2

100.0

0

0.0

2

2,907

37.7

4,807

62.3

7,714

Volvo Other TOTAL

Corolla range boosts marque’s position T

oyota’s sales of cars and SUVs came in more than double those achieved by any other manufacturer in August.

It chalked up 1,509 registrations last month, which was 103.4 per cent more than second-placed Mazda on 742.

Toyota’s total included 1,199 business registrations, or 79.5 per cent of its total, while Mazda had a more even split with 43.1 per cent – or 320 registrations – being private.

Overall, there were 7,714 cars and SUVs sold in New Zealand last month with 62.3 per cent, or 4,807, being bought by businesses.

Toyota, which accounted for 19.6 per cent of August’s market, has been recording high sales levels all year, especially with new models being released.

The new Corolla hatchback, for example, went on sale in July with a choice of two different body styles.

The GX and GLX adopt a European influence, while the higher-grade Levins – the SX and ZR – take design cues from Toyota USA’s Scion.

“The greater external differentiation between grades will appeal to a wider range of customer tastes,” says Spencer Morris, of Toyota NZ. “By introducing European and US-influenced designs, we can offer the best of both worlds to the market. We can draw on the global strength of Toyota to offer compelling designs for cars, such as the Corolla, to stand out.”

The Corolla always performs

well in New Zealand’s rental fleet with such sales contributing hugely to total registrations to help make it this country’s most popular car.

For example, 621 Corollas were registered in August and this was more than double those achieved by the country’s second most popular model – Toyota’s RAV4.

Of that total, 378 Corollas were sold as rentals and this amounted to about one-quarter of all such registrations last month.

Even with rentals removed, it was still one of New Zealand’s most popular vehicles in August and it has achieved close to 1,000 more sales than any other passenger vehicle this year.

Figures supplied to Autofile for the first half of 2015 break down Toyota buyers into four segments with 49.35 per cent being fleets, 22.99 per cent being rental companies, private buyers accounting for 22.27 per cent and 5.39 per cent being government sales.

When all Corolla models are taken into account, there are some shifts in these percentages with fleets coming in at 36.20, rentals at 29.34, private at 24.74 and government at 9.72 per cent.

By comparison, the hatchback variants come in with 32.36 per cent fleets, 32.61 per cent rentals, 26.86 per cent private and 8.15 per cent government.

Third spot in August’s ladder for marques was taken out by Holden with 721 registrations, of which 521 – or 72.3 per cent – were business transactions.

From the rising sun to the long white cloud The history of used car importing to New Zealand 24 www.autofile.co.nz

new vehicles

Sales defy economic indicators T

he Motor Industry Association (MIA) predicts the new-vehicle sector is on track for a record year.

It says the market is delivering steady growth of 5.5 per cent with the year-to-date total jumping to 87,105 units from 82,594 by this time last year.

There was also a spike in registrations of 10.1 per cent last month with 11,192 sales compared to 10,168 in August 2014.

The MIA believes annual sales, which “continue to defy general economic indicators”, may exceed 130,000 units this year.

Matthew Foot, dealer principal of Brendan Foot Supersite in Wellington, says: “New cars are so well-priced that they are putting pressure on the used car market and late-model rentals.”

However, he warns the costs of new vehicles may go up in the long run if the Kiwi dollar continues to be weak.

“It depends on the origin of the model, but time will tell,” Foot told Autofile. “It’s pretty competitive out there and marques will be holding out to see who puts up prices first.”

Sales of new cars and SUVs totalled 7,742 in August. They rose by 677 units – or by 9.6 per cent

NEW VEHICLE SALES BY BUYER TYPE - August 2015

– on the same month of last year when 7,047 were sold.

Commercials also notched up a healthy increase of 10.8 per cent from 3,106 to 3,440 over the same timescale.

When it came to segments, SUVs again dominated with a 34 per cent share of August’s market and 33 per cent year to date.

Pick-ups and chassis cabs accounted for 22 per cent of new vehicle sales last month, and are on 21 per cent so far in 2015.

Small passenger vehicles made up the third biggest segment with a market share of 15 per cent in

August while the year-to-date figure is 14 per cent.

Breaking down the segments, sales of light cars are up by 12.1 per cent year to date from 8,750 to 9,808, while small car registrations have tumbled by 15.2 per cent from 14,353 to 12,177.

The biggest market increase for SUVs in 2015 has been in the small category where sales have jumped from 6,756 to 8,656 – or by 28.1 per cent. The only decrease in this segment has been with upper-large SUVs, which are down by 10.9 per cent on relatively small numbers – from 329 to 293.

NEW VEHICLE MARKET SEGMENTATION - August 2015

Aug '15

Aug '14

Mth %

2015 YTD

2014 YTD

% YTD

Aug '15

Aug '14

Mth% diff

2015 YTD

2014 YTD

Passenger

3,950

4,023

-1.8

32,062

33,415

-4.0

Passenger

3,950

4,023

-1.8

32,062

33,415

-4.0

Private

1,446

1,523

-5.1

12,957

12,990

-0.3

SUV

3,774

3,024

24.8

28,938

24,776

16.8

Business

1,494

1,834

-18.5

14,479

15,919

-9.0

Light Commercial

2,946

2,562

15.0

22,498

20,919

7.5

Heavy Commercial

452

527

-14.2

3,071

3,172

-3.2

70

32

118.8

536

312

71.8

11,192

10,168

10.1

87,105

82,594

5.5

Gov’t

201

187

7.5

1,581

1,665

-5.0

Rental

809

479

68.9

3,045

2,841

7.2

SUV

3,774

3,024

24.8

28,938

24,776

16.8

Other Total market

% YTD

Private

1,462

1,235

18.4

11,318

9,817

15.3

Micro

119

93

28.0

1,175

1,195

-1.7

Business

1,729

1,493

15.8

13,474

12,734

5.8

Light

1,162

1,254

-7.3

9,808

8,750

12.1

53

89

-40.4

518

493

5.1

Small

-15.2

Gov’t Rental Light Commercial Private Business Gov’t Rental

530

207

156.0

3,628

1,732

109.5

2,946

2,562

15.0

22,498

20,919

7.5

699

508

37.6

5,647

5,074

11.3

1,979

1,836

7.8

15,199

14,561

4.4

135

127

6.3

921

858

7.3

1,702

1,581

7.7

12,177

14,353

Medium

485

510

-4.9

4,567

4,477

2.0

Large

272

387

-29.7

2,700

3,016

-10.5

Upper Large

10

32

-68.8

164

217

-24.4

138

92

50.0

784

688

14.0

62

74

-16.2

687

719

-4.5

SUV Small

1,258

922

36.4

8,656

6,756

28.1 16.3

People Movers Sports

133

91

46.2

731

426

71.6

SUV Medium

1,255

1,031

21.7

10,697

9,196

10,670

9,609

11.0

83,498

79,110

5.5

SUV Large

1,230

1,035

18.8

9,292

8,495

9.4

Private

3,607

3,266

10.4

29,922

27,881

7.3

SUV Upper Large

31

36

-13.9

293

329

-10.9

Business

5,202

5,163

0.8

43,152

43,214

-0.1

Sub Total

Gov’t Rental Heavy Commercial

389

403

-3.5

3,020

3,016

0.1

1,472

777

89.4

7,404

4,999

48.1

452

527

-14.2

3,071

3,172

-3.2

Other

70

32

118.8

536

312

71.8

Total

11,192

10,168

10.1

87,105

82,594

5.5

Light Buses

121

66

83.3

581

408

42.4

Vans

415

557

-25.5

3,369

3,786

-11.0

Pick Up/Chassis Cab 4x2

866

695

24.6

7,020

6,356

10.4

Pick Up/Chassis Cab 4x4

1,544

1,244

24.1

11,528

10,369

11.2

452

527

-14.2

3,071

3,172

-3.2

70

32

118.8

536

312

71.8

11,192

10,168

10.1

87,105

82,594

5.5

Heavy Commercial Other Total market

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Stock level of new cars rises Subaru of New Zealand is delighted with the performance of its Outback this year with the SUV, which has replaced the Legacy wagon, notching up 123 sales during August.

That compared to 40 units in the same month of last year, an increase of 207.5 per cent compared to August 2014, while the marque sold 210 cars and SUVs last month, up by 61.5 per cent.

Wallis Dumper, managing director, tempers his delight with these figures by noting supply of stock continues to be challenging with worldwide demand making it “vital to be forward ordering”.

He says: “Production planning schedules are stretched given countries, such as the US, sell more cars in a week than we sell in a year.

“While that can be a little humbling, we have to remember Subarus have always been a strong part of Kiwi driving culture.”

Dumper adds negotiations continue with the marque’s parent company in Japan to supply more vehicles to its growing Kiwi customer base.

“Once we have satisfied Subaru customers on waiting lists, we can then start exposing our symmetrical all-wheel-drive into other cars,” he adds.

Meanwhile, the massive chemical explosions and fires that claimed the lives of more than 100 people in the Chinese port of Tianjin on August 14 is unlikely to have any downstream effects on the Kiwi market.

The disaster resulted in around 15,000 vehicles going up in flames, including about 5,800 Jaguars and Land Rovers, 2,700 Volkswagens, 1,500 Renaults, and 4,000 made by Hyundai and Kia. Other marques affected were Toyota, BMW and Daimler.

But deliveries of stock made

Dealer stock of new cars in New Zealand 47,636

- 12-MONTH AVERAGE

Days stock at hand

200

240

199

180

Sept ‘14

9,602

8,382

1,220

48,856

243

201

Oct ‘14

8,297

8,910

-613

48,243

245

197

Nov ‘14

9,075

8,063

1,012

49,255

247

199

Dec ‘14

8,248

6,797

1,451

50,706

248

204

Jan ‘15

6,713

9,010

-2,297

48,409

250

193

Feb ‘15

7,172

7,057

115

48,524

252

193

Mar ‘15

7,569

8,075

-506

48,018

252

191

Apr ‘15

7,764

6,373

1,391

49,409

252

196

May ‘15

9,395

6,843

2,552

51,961

253

206

Jun ‘15

8,297

9,021

-724

51,237

254

202

Jul ‘15

8,842

7,272

1,570

52,807

254

208

Aug ‘15

11,712

7,752

3,960

56,767

256

221

Year to date

67,464

61,403

6,061

Change on Aug 2014

21.4%

9.7%

19.2%

more IMPORTED

MORE SOLD

MORE STOCK

marac.co.nz

August 2014 — August 2015

160 August 2013 — August 2014

140 120 100 80 60 40

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26 www.autofile.co.nz

heartland.co.nz

AUG 2015

JuL

Jun

May

APR

Mar

Feb

JAN

20

Dec

2,599

DAILY SALES

Oct

7,066

Stock

Sep

9,649

Variance

AUG 2014

Aug ‘14

Registered

Days of stock

CAR Sales Imported

by Chery, Great Wall and Foton to the Kiwi market are unaffected by the tragedy.

Lawrie Malatios, general manager of Auckland-based Ateco Automotive, which distributes the Chinese marques, told Autofile this is because New Zealand is a righthand-drive market and imports here need to have electronic stability control, and vehicles destined for these shores had already been pre-ordered.

Spencer Morris, Toyota NZ’s general manager of customer services, confirms there was some impact on Toyota’s operations in China as a result of what happened in Tianjin.

He adds, however, that China is not a source country for product coming into New Zealand, “and as far as we are aware, there is no impact on component production on new Toyota vehicles destined for our market”.

Days stock in NZ - new Cars

Nov

T

he stock of new passenger vehicles in New Zealand has jumped by 19.2 per cent – or by 9,131 units – over the past year to 56,767 by the end of last month from 47,636 in August 2014.

A total of 11,712 units were imported last month compared to 7,752 first-time registrations – an increase to stock levels of 1,572 for the month.

The figures for average daily registrations provide a gauge of how new cars have been performing at franchises.

These came in at 240 in August 2014 and jumped to 256 by the end of last month, which means 16 more new cars on average have been sold daily than over previous 12 months compared to a year ago.

The total days of stock at hand increased by seven days to 221 in August from 208 in July because of the rise in imports over the past month.

Buying options in Japan diminish D

ealers selling used imports are finding it harder to access stock they want and at the right prices.

The recent drop in cross-rate between the New Zealand dollar and yen is affecting what Kiwis can purchase in Japan.

However, many dealers are generally reporting that business is good when it comes to selling stock they have already landed in this country.

“We are finding it’s quite hard with the exchange rate dropping because it is harder purchasing stock that’s over a certain value, so we aren’t doing as much of it now,” says Lawson Hoggard, of Auto Imports and Wholesale in Masterton.

“We have been doing a bit of a mixture of high-end and one-off stock, such as Bentleys, which has been ticking over okay. The cheaper-priced vehicles do not

sit on the yard for a long time.

“Stock is always harder to get towards the end of the year and that’s not going to be any different.

“We have noticed there is more rental stock available, but that’s generally in a different market than what we are targeting.”

Mark Greenfield, general manager of Motorcentral, told Autofile: “The dealers we have spoken to who have been in Japan over the past few weeks are definitely finding it difficult to buy and that’s something they have to work through.

“We plan to make tools available to our dealer network that will aid them further in making informed decisions when purchasing.”

“We had a really good August,” says Craig Costello, of Costello Cars in Christchurch.

“We are specialising in a set price bracket, but buying has been

the difficult thing recently. Our price bracket is less than $10,000 and those customers tend to sell their own trade-ins.

“Customers tend to just focus on price and they are pretty welleducated on that. They have had a look and have done their homework.”

The number of used cars imported into New Zealand during August exceeded the amount sold last month by 72 units.

This was the smallest variance since 61 in September 2014 and came about as a result of 12,133 secondhand passenger vehicles crossing the border and 12,061 being registered here for the first time.

Last month’s figures increased the current stock level to 24,677 from 24,605 in July.

August’s statistics were in stark contrast to the same month of 2014 when 9,016 used cars were imported and 11,288 were sold.

That variance of 2,272 meant the

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180

Imported

160 140

100

August 2014 — August 2015

60 40 20

August 2013 — August 2014

AUG 2015

JuL

Jun

May

APR

Mar

Feb

JAN

Dec

Nov

Oct

Sep

marac.co.nz

Registered

Variance

-2,272

Stock

16,753

DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

325

51

Aug ‘14

9,016

11,288

Sept ‘14

11,203

11,142

61

16,814

335

50

Oct ‘14

12,650

11,105

1,545

18,359

342

54

Nov ‘14

11,284

11,532

-248

18,111

348

52

Dec ‘14

12,800

12,448

352

18,463

356

52

Jan ‘15

10,139

11,791

-1,652

16,811

362

46

Feb ‘15

9,963

10,572

-609

16,202

366

44

Mar ‘15

14,964

12,313

2,651

18,853

372

51

Apr ‘15

16,155

11,038

5,117

23,970

376

64

May ‘15

14,531

12,415

2,116

26,086

379

69

Jun ‘15

12,864

12,415

449

26,535

384

69

Jul ‘15

11,961

13,891

-1,930

24,605

389

63

Aug ‘15

12,133

12,061

72

24,677

391

63

102,710

96,496

6,214

Year to date

0

AUG 2014

Days of stock

120

80

stock level in August last year came in at 16,753 units.

Over the past 12 months, the level of unsold stock on car yards has increased by 7,924 units or 47.3 per cent.

There have been 150,647 used cars imported during the past 12 months, which represents a 34.6 per cent increase on this time last year. This compares to 142,723 registrations over the same timescale for an increase of 6.8 per cent.

Daily average sales over the past year have jumped to 391 compared to August 2014 when registrations came in at 325 – an increase of 66.

There is now 63 days’ stock currently at hand in New Zealand.

This is the same as in July, but up from 51 in August last year.

Year to date, 102,710 used passenger vehicles have been imported into the country and 96,496 have been sold.

Change on Aug 2014

34.6%

6.8%

47.3%

More IMPORTED

MORE SOLD

MORE STOCK

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27

GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE

SERIOUS about AUS to NZ Australia to New Zealand Have you considered it?

• Increased interest in stock from Australia • Huge potential to buy quality cars • Stock that works in this market • Established supply channel • Stock can be delivered within a week • Full package services in place

To find out more about this growing market, contact Danny Knight on 0274 443 433 or 09 412 2765 or email danny@autohub.co.nz www.autohub.co

+64 9 411 7425

info@autohub.co