Autofile 19mar online (1) by Autofile

The trusted voice of the auto industry for more than 25 years www.autofile.co.nz

19 March 2016 Issue 5-2016

Clarity sought on ESC class restrictions T

he Imported Motor Vehicle Industry Association (IMVIA) is seeking an independent legal opinion as to the definition of an MC class vehicle under New Zealand Land Transport (NZTA) rules. The interpretation is being sought to provide greater clarity and certainty for used vehicle importers following the March 1 introduction of the rule requiring all MC class passenger vehicles be equipped with Electronic Stability Control (ESC) as a prerequisite for import clearance to New Zealand. The IMVIA says it is concerned

that the MC class specification may be applied to vehicle types that fall outside of the intended scope of the MC class rule and thereby unfairly restrict the import of many common SUVs and passenger vehicle types with four-wheel-drive (4WD). An MC class vehicle is defined in NZTA rules as a 4WD passenger vehicle designed with special features for off-road operation. It further defines an MC class vehicle as one having an approach angle of not less than 28 degrees; a breakover angle of not less than 14 degrees and a departure angle of not less than 20 degrees.

Other requirements include maximum seating for nine (including the driver), a running clearance of no less than 200mm and a front-axle rear-axle or suspension clearance of not less than 175mm. The IMVIA says it is seeking a legal interpretation of the rule as it relates specifically to “special features for off-road operation”. At issue is how this requirement is interpreted in the case of 4WD vehicles clearly not designed for off-road application. These vehicles include the likes of the Nissan Qashqai, Toyota RAV4,

In this issue p7 Used EVs an option for NZ p8 MTA boss departs p11 Retain those customers p12 Spotlight on Taranaki p16 Industry movers p19 Trader to refund for flood damaged Mazda

[continued on page 4]

NZTA tightens its grip on MVR

he New Zealand Transport Agency has had to create a temporary six-month class authorisation to ensure registered motor vehicle traders and vehicle information providers continue to have access to the motor vehicle register. This follows advice from the NZTA that all existing class

authorisations giving access to registered person details in the register expire on April 30. The authority has further advised that renewal applications will take approximately eight weeks to process and says that because it is expecting a high volume of applications, processing delays are likely.

The notice period provided by the authority effectively allowed one week for registered traders to prepare and submit renewal applications to avoid potential disruption to vehicle ownership information. Trader response to the renewal timeframe has been [continued on page 6]

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Autofile goes monthly

he way we deliver and receive our news has changed in many ways over the last decade, as has the business of news gathering and news dissemination. It was only a short time ago that for many of us the first inkling of a “breaking” news story was a banner headline in the morning newspaper. The Internet has changed this forever and providers of the news, whether it be for trade publications or national dailies, have had to adopt and adapt to the “here and now”. This has required significant changes to the way we collect and push out news, and prioritise our content. This immediacy in reporting has untold benefits. It allows us to witness major domestic and global events in real time and to react to news almost instantaneously. These are all benefits but they come at the expense of story-telling and long-form investigative journalism which has taken a back seat to brief headline-grabbing snippets prepared with little or no analysis. There is a place for this in fastmoving daily journalism but seldom will it educate the readership of trade industry titles looked upon by industry as “magazines of record”. These publications should have a much longer shelf life and remain pertinent to its readership long after the next sound bite comes through. Being the trusted voice of the auto industry for more than 25 years is something we at Autofile pride ourselves on, and it is that commitment to the industry that has driven the changes that we are announcing today. These changes come from asking the question: How do we best serve the interests of our readership? The answer lies in the quality of

our reporting and our ability to look under stones that are often stepped over in a rush to be first with the news. News without analysis is seldom of any value in a regulated and ever changing industry and this is where Autofile magazine makes a difference, and must continue to do so. In an effort to ensure we continue to look under rocks and deliver long-form interesting content we are moving to a single mid-month publication of Autofile magazine. The change from a bi-monthly to monthly publishing schedule will commence from April. This edition will be our last “second issue of the month.” This change in scheduling will allow us to allocate resources to the right areas necessary to research and write articles of real significance. The new issue will be much larger. It will contain more industry stats and analysis and valuable comment from the industry. We will continue to be first with the news – but it will be the news behind the news – the news you can use. Importantly, this change will further allow us to expand and sharpen our on-line news portal www.autofile.co.nz. Autofile in both hard copy and online will continue to be free for those associated with the automotive industry. We are confident that these changes will result in a more in depth magazine and a news-leading website, collectively delivering our readers a one-stop news hub. I look forward to working through these changes with all our clients and industry associations in the coming weeks, your on-going support is appreciated. Brian McCutcheon, publisher

Editor

JournalisT

Katherine Stewart

Steve Raea editor@autofile.co.nz 021 560 436

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Julia Braybrook

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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. Copyright: Published twice monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. 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)

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news [continued from page 1]

NZTA engaging on class MC rule Subaru Legacy and many others – all models available as 4WD variants and yet principally designed as on-road passenger vehicles. IMVIA chief executive David Vinsen says interpretation of the MC class rule was of little significance prior to the March 1 introduction of mandatory ESC on MC vehicles. “This has very obviously changed and we’re working with the NZTA at a policy level to provide guidance and clarity for our members. As things stand, the rule is open to interpretation and this is not helpful.” Vinsen says the association is confident the parties involved in the discussion will arrive at a pragmatic solution that fairly reflects the intent of the rule. Meanwhile, the IMVIA is working in a number of other areas to assist its members. He says the addition of ESC information on Japanese vehicle

auction sheets would be an effective solution and that the IMVIA is talking with the Japanese Auto Auction Association to see if it can make this happen. “Meanwhile, our technical staff are developing physical measuring

Sara says the authority is aware of industry confusion around the MC class rule and says it has fielded a number of calls for advice and clarity from private vehicle importers and industry associations. “NZTA accepts that there is

“NZTA accepts that there is some genuine confusion around the MC class rule and we’re working through that. We also accept that there has to be a level playing field for importers.” – Brian Sara, NZTA equipment to measure common SUV and 4WD vehicle types to establish which common 4WDs fall outside the specifications listed in the MC class rule.” NZTA vehicle manager Brian

some genuine confusion around the MC class rule and we’re working through that. We also accept that there has to be a level playing field for importers. However, I don’t think there is an easy way through

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this because of the differences in classifications from manufacturers. “The rule is open to interpretation and therein lies the problem. We accept there is confusion and we’ve asked industry associations for input on this in the hope that we can arrive at a satisfactory technical solution. That work is under way.” Sara says the authority has not sought its own legal interpretation of the MC class rule and is hopeful that that will not be necessary. “We haven’t gone down that track. This is a technical issue, albeit a reasonably complex one. We believe there is scope for a pragmatic solution remembering that many more used imported passenger vehicles will be required to have ESC in 2018.” Meanwhile, used vehicle importers say that as things stand there is a genuine risk of vehicles 

news t being landed in New It said the existing process for Zealand that, depending purchasing used vehicles in Japan on an inspector’s would make it “very difficult” for interpretation of the MC importers to identify which class rule, won’t be able to vehicles have ESC. be legally sold. “The process has Mike Tyler from Auto developed to efficiently Terminal NZ says this is a manage a large market Breakover angle source of real frustration for and it may not be easy for >14° Departure angle Approach angle used importers and needs to be New Zealand importers to An MC class vehicle must meet a minimum >20° >28° of four measurement criteria and be 4WD tidied up as quickly as possible. change it. Japanese used “The NZTA has indicated that entirety and says he can’t accept MC and NA light passenger and vehicles are sold at massive and fastthere will be some initial flexibility industry claims of confusion. goods vehicles on July 1 last year. paced auctions, with bidding both but what the industry requires is a “In my view the classification is “There was some clarification onsite and remote. Often the only definitive list of what the agency crystal clear and if the NZTA says required around 2WD SUVs which I information available for each vehicle considers to be an MC class vehicle there is ambiguity with the rule don’t believe should be classified as is a photograph and a Japanese and what it considers is an MA then it is out of court. The MIA is an MC class vehicle. We worked with language auction sheet. The amount class vehicle. Our understanding is very clear on this.” distributors at the time to ensure of detail on the auction sheet varies that such a list is imminent.” He says if there is an element that new 2WD SUVs are classified depending on the auction house but Tyler says the Toyota RAV4 is of confusion as it relates to used correctly at the time they are set up the presence or absence of ESC is not typical of the confusion with SUVimported vehicles then that is on on the Motor Vehicle Register. There currently noted.” type vehicles and where they fall. the vehicle inspection side and not have been no issues since.” It said that the IMVIA publically “We’ve had RAV4s classified as a shortcoming of the class rule as it A Ministry of Transport endorsed fitment of ESC and agreed both an MC class vehicle and an applies to the MC classification. Regulatory Impact Statement that uptake should be encouraged MA class vehicle. “The MIA’s view is part (a) and prepared prior to the introduction of but had expressed concern over “This is not an isolated incident (b) taken together define what mandatory ESC requirements in 2014 difficulty in identifying which and it is not unique to the RAV4. the special features for off-road acknowledged that there would vehicles had ESC and said this would It’s very confusing. Importers need operation are and nothing else is likely be compliance difficulties for potentially restrict supply or make the to be very wary of landing vehicles relevant to determining if a vehicle the used imported vehicle sector. requirement impossible to meet. that on inspection at the border is Class MC or MA.” are deemed non-compliant under Crawford says, however, that the MC class rules and can therefore IMVIA is entirely within its right to only be sold for parts.” seek a legal opinion. He says the issue is particularly “It is absolutely the right thing vexing for importers of older vehicles. to do to clarify the position for its “In our case the great majority members. But unless there is a of vehicles that we import have ESC substantive legal opinion to suggest fitted as standard across the model otherwise, the MIA maintains its range but this will not be the case for view is the correct interpretation importers of older vehicles. There are (of the rule) and this is how the new a lot of variants in the used Japanese vehicle sector makes its decisions market and importers will have to on vehicle type.” have faith in their agents until the He says the MIA has written to issue is resolved.” the NZTA on its own behalf seeking Motor Industry Association its views on the matter. chief executive David Crawford Crawford says the MIA worked Reliability says the conjunctive definition through similar classification issues Stock Ready First choice for NZ dealers foR Shipping of the MC class vehicle rule is when electronic stability control for 20 years Extensive range of pre-purchased unequivocal when read in its became compulsory for all new class stock available for shipping NOW

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news [continued from page 5]

Logistical challenge in MVR change predictable with many voicing concern that it would effectively result in access denial to the register and impact on their ability to function as motor vehicle traders. The NZTA appears to have received that message and has subsequently introduced what it is calling a new, albeit temporary six-month Class Authorisation to ensure motor vehicle traders have “sufficient time’ to reapply. While the NZTA reprieve will allow traders to carry on with business as usual in the short term, they’ve been told that going forward, traders requiring access to the register will have to apply for their own individual access. Previously, industry associations could apply for blanket access to the register for their members. This new requirement has potentially farreaching consequences for vehicle information providers.

Chris Knight from Motorweb says it appears on the face of it that traders requesting vehicle information from the register will have to first prove that they have authorised access to the register before ownership information can be provided. “But it goes further. The question we are asking is

whether vehicle information providers will then be required to verify that traders are legally entitled to receive information from the registrar. The logistics

We are currently seeking to employ an experienced Business (Finance) Manager to fill a vacancy within Australasia’s largest motoring group and one of New Zealand’s premium vehicle finance teams. Located in central Auckland, at the top of Great North Road, John Andrew Ford is New Zealand’s largest selling Ford dealer. With 106 years of experience in the motor industry we pride ourselves on the quality and professionalism of our team. This position is one of the premium F&I roles within NZ. We are looking for a candidate with the right credentials to support this high achieving, high volume dealership. They will need to have a proven results record, good financial understanding including the CCA and all relevant retail and consumer legislation. Applicants must work well within an existing team and previous experience in the automotive or retail finance sector is preferred. In addition to these traits, applicants must be: • Highly motivated and well organised • Professional with a high standard of presentation and good attention to detail • Good IT skills including internet selling techniques Please apply in confidence with supporting CV to: Ron Van Herpt Group Finance and Aftercare Manager Automotive Holdings Group - New Zealand RVanHerpt@ahgnz.co.nz www.autofile.co.nz

advising of these changes, the NZTA advised that it had approached industry bodies with such an arrangement in place to re-apply for access on behalf of their members. It said therefore that existing members of the Motor Trade Association (MTA) need not therefore apply for access in their own name – it had been done by

“The question we’re asking is whether information providers will be required to verify traders’ entitlement to information from the registrar. The logistics involved would be massive.” - Chris Knight, Motorweb

BUSINESS (FINANCE) MANAGER - F&I

involved in complying with that would be massive.” Knight says there are very sound reasons why the NZTA wants to tighten access to the motor vehicle register given that there is something in the order of 3,500 registered traders operating in the country. “We’re not suggesting every

trader should have access by right of their registered status. What we would propose is that access be approved to traders nominated by recognised industry associations and that those associations vet their members as part of an approval process.” Shane Breckon from Motorcentral says the implications for traders on its dealer-management system are also considerable. He says Motorcentral is working through these implications with other vehicle information providers in the hope it can make a joint industry approach to the NZTA to get some form of blanket access approval for registered traders. “The changes as proposed could put us in a very difficult position and make things quite tricky. While there are other options that we could explore these would be less than ideal.” Breckon says Motorcentral currently checks the registered status of traders before releasing information but says that under the new rules this would no longer be sufficient to prove that a trader has authorised access to the register. “There’s some ground to work through and we believe a joint industry approach would be the most effective solution. That work is underway.” In a letter to registered traders

the MTA on their behalf. “If you are not a member of MTA and wish to continue to access registered person details you will need to apply for your own access.” MTA dealer services manager Tony Everett says the association has applied for access on behalf of its dealership and service station members but has yet to be advised if its application has been approved. He says the new requirements reflect a general tightening up of the rules in 2011 and predicts the current changes could have a considerable impact on finance, insurance and vehicle information providers. “The potential for disruption is quite considerable given there is something like 3.500 registered motor vehicle traders. Of those some 1,200 to 1,500 traders have dealership yards or a sales office and it is this sector that could be impacted most severely.” Everett says he is sympathetic to those traders claiming that the NZTA failed to provide adequate notice. “It would be fair to say that the NZTA notice to traders was very tight. It hadn’t jumped onto our radar.” In seeking further clarification from the NZTA, the agency says it is of the view that the current class authorisation that 

news

Opportunities in used EVs V

ehicle logistics company Autohub has identified what it believes is untapped market potential for the Nissan e-NV200 electric van and has landed one in Wellington to gauge dealer interest. Joe Barnett, Autohub general manager for European services, says the van is widely used in the UK for ‘last mile delivery’ services by courier companies to avoid congestion taxes. The van is further utilised by local councils and small businesses where daily travel does not exceed 120km. The e-NV200 has similar running gear to the Generation 2 Nissan Leaf and is offered as a small panel van or a 5 or 7 seater passenger vehicle. Barnett says Autohub does not supply vehicles to the public but is working with the largest electric vehicle lease company in the UK to supply late model ex-lease vehicles to dealers in New Zealand and will

assist dealers’ reclaim the 20 per cent VAT UK sales tax. The vans on offer typically have low mileage because of their use for ‘last mile delivery’ services. The e-NV200 has a range of up to 170 kilometres, and can be charged in 30 minutes via a quick charge port or in about four hours through a wall box and eight hours

t applies generically to all motor vehicle traders rather than to a representative body of motor vehicle traders may not be fully compliant with s56 of the 2011 regulations. It says the Motor Vehicle Register (MVR) became a ‘private register’ under legislative changes introduced in 2011. “The current Class Authorisations for Motor Vehicle Traders, Financial Service Providers and Petrol Stations – issued by the Ministry of Transport before responsibility for administering access to the MVR was transferred to the NZ Transport Agency - will expire on April 30. “Therefore the Transport Agency has notified the holders of these Class Authorisations and asked them to reapply. “While the MTA is clearly a representative body as they represent industry members who belong to their body and are represented by them, many motor vehicle traders are not members of the MTA or any other representative body. “As such, those wanting ongoing

access to ‘registered person’ details from the MVR could apply - via s241 of the Land Transport (Motor Vehicle Registration and Licensing) Regulations 2011 – to gain access to these details for a period of up to five years.” Application criteria under Section 241 of the Land Transport Amendment Act 2009 requires that the Secretary of the register consult with the Privacy Commissioner, the Commissioner of Police and the Chief Ombudsman as part of the approval process. Authorised access applies only to name and address information and is limited to a maximum of five years. The schedule of application fees vary according to application type and start at $621.46 for an individual (not being a sole trader); $845.57 for a business that is not a representative body or member of a representative body (including a sole trader); $1165.30 for a representative body with a disciplinary power and $1320.65 for a representative body with no disciplinary power.

losing them. I’m sure these drivers would have been mortified to know that the van disappearing off in front was fully electric. There is increased awareness and interest in these vehicles, we’d just like dealers to consider the opportunities and if it’s a fit with their business they are welcome to get in touch with us”.

The Nissan e-NV200

using a regular 230v electric socket. Running costs are estimated at about $3 a day. Barnett says he was impressed by the van’s performance during a recent drive over the Rimutaka ranges. “I was thinking Rimutakas … I don’t know. There were cars coming up behind and because electric vehicles have a lot of torque, I was

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news

Departing CEO reflects on industry M

otor Trade Association (MTA) chief executive Warwick Quinn is moving on after a year and half in the role to return to the building and construction sector and describes his departure as a “real inconvenience”. It is an inconvenience that he lays at the feet of the departing head of the Building and Construction Industry Training Organisation (BCITO) – the role he will assume when his tenure with the MTA ends in June. Quinn’s new role is, in some respects, unfinished business. He has worked in and around the building and construction industry most of his working life. He most recently worked as chief executive of the Master Builders Federation – a position he held for seven years prior to joining the MTA. It was during his watch at master builders that Christchurch semi-disintegrated in the aftermath of the Canterbury earthquakes. Quinn says the quakes led to momentous changes within the sector and created one of the most challenging yet satisfying periods in his career. Quinn’s new role will see him head up apprentice training in a time of massive change within the construction sector. A key measurable will be boosting apprentice completion rates whilst driving innovations in training and delivery. He says his return to the building industry is marred only by his regret that he isn’t able

“We’ve seen the vehicle sales sector rebound to new heights after the lows of the GFC.” - departing MTA chief executive Warwick Quinn

to continue his work with the MTA and watch over a diverse membership in what are equally challenging times. Quinn says one of the big attractions of his role at the MTA was the introduction to a membership organisation working in a regulated environment, and the diversity of each sector within the MTA membership. “It has been fascinating working across each sector and to witness some very considerable changes in what has been a relatively short time. We’ve seen the vehicle sales sector rebound to new heights after the lows of the GFC and the disruption to MTA service members from changes to Warrant of Fitness requirements through the Vehicle Law Reform.

“On the service station side we have witnessed the yet-to-be approved sale of Chevron/Caltex/ Challenge to Z Energy for a 50 per cent market share and we’ve watched over the emergence of formal contracts between collision repairers and insurance providers. “And there’s more just around the corner. We’ve got the TransPacific Partnership Agreement to work through and the imminent arrival of disruptive technologies in electric vehicles, driverless cars and Intelligent Transport Systems. These are all fascinating developments within our industry that will impact the automotive sector in untold ways.” Quinn says a driver behind his decision to re-enter the construction sector is the opportunity it presents to

help shape the training and development of young New Zealanders’ as they progress from learning to employment. A graduate of the Henley Business School with a Master of Business Administration (MBA) achieved in his late 40s, Quinn knows the value of training and the empowerment inherent in formal qualifications. “Training is something that I’ve been keen to progress during my time at the MTA and we’ve made some solid progress. The work we have done developing a national qualification in automotive sales has been rewarding. Up-skilling our work force and creating opportunities for career development is vital if we are to continue evolving as an industry.” MTA president David Harris acknowledged Quinn’s significant contribution to the association and thanked him for that. He singled out Quinn’s restructure of the MTA membership from twenty nine branches to 8 regions, and the repositioning of the MTA brand toward safety and families. “Warwick introduced a culture of engagement to strengthen relationships with members and related organisations. This extended into national office where last year MTA won the Kenexa Most Improved Small Workplace Award for 2015. “On behalf of the board I would like to thank Warwick for his hard work. Warwick has ushered in a period of great change at MTA and we are a much more finely tuned organisation for it.”

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news

LVV certification review continues

review of the Low Volume Vehicle (LVV) certification scheme is continuing from where it left off last year with a possible outcome being a relaxation of some certification standards as they apply to commercial vehicles. The review of the LVV system kicked off with a New Zealand Transport Agency (NZTA)commissioned Standards New Zealand survey of LVV stakeholders to gauge satisfaction levels with an LVV system created 25 years ago. The results of that survey identified reasonable satisfaction levels with 66 per cent of the 800 respondents scoring the current arrangements as satisfactory and largely fit for purpose. Tony Johnson, chief executive of the Low Volume Vehicle Technical Association (LVVTA), says that as a result of the survey findings the NZTA identified a requirement for improved governance within the LVVTA’s technical advisory committee. “This has been addressed and the NZTA is now looking harder at how to achieve better consistency in the interpretation and application of technical standards by low volume vehicle certifiers. Johnson says the agency is further looking to improve the clarity of guidelines used by certifiers and develop tailored certification processes that better reflect the risk of different types of vehicle modifications. “In general, it is considered that cost-savings could be achieved in the LVV certification process for some classes or types of vehicles, particularly within the commercial sector. There is also a concern in some sectors that the LLV process could be a roadblock to innovation and the creation of new technologies by OEM manufacturers.” This, he says, is a very small sector of the LVV industry. “My interpretation of the

review is that the NZTA is seriously considering lowering the bar as it presently applies to the modification of some commercial vehicles and the technical association is prepared to work with the agency on this. “The association is very mindful, however, that safety is paramount and relaxation of compliance standards would have to be carefully managed. We’re not against change but neither would we support changes that introduce an element of risk.” Johnson says one option that might be considered is providing a pathway for modifications that fall beyond the scope of existing standards to be independently assessed as fit for purpose. “These are the sorts of questions being asked as part of this review and this will take time. I don’t expect there will be any significant announcements in the short term.” Johnson says there has been some agitation for changes emanating from within the commercial vehicle sector which is the largest user group reliant on LVV certification. Modifications typically include the placement and addition of rear seat belts, van modification for specific applications (prison/taxi vans) and replacement of petrol to diesel engines. “People might be interested to know that the most common LVV certification by vehicle-type is the Toyota Hiace. There is a perception that the LVV certification system caters predominantly to vehicle performance-enhancement. “This is a part of it but the biggest users of the system are commercial vehicle owners.” He says the LVV system is complex because of the large number of variables that apply to vehicle modifications and the requirement on LVV certifiers to interpret standards and apply them to a broad range of vehicles and modifications.

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To ensure your success in this position, you will bring extensive experience in the automotive sales industry. In addition your management and leadership ability will impress and your interpersonal skills will be second to none. Self confidence, motivation and negotiating skills are all critical attributes, along with a willingness to make decisions and problem solve at a high level. As this is a six day a week business you will be required to work with the sales team and form part of rostered Saturdays. If you believe you have the management skills to be a successful Dealer Principal, and have the desire and passion to be the next manager for BMW in Tauranga, please email your CV to Sharneen Hickey at sharneen@assetrec.co.nz

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new cars

Legacy’s vision enhanced S

ubaru has added a package of Vision Assist features to premium variants of its newly launched Model Year 2016 Legacy All-Wheel Drive range now available in New Zealand from Subaru Authorised dealerships. The extra layer of safety technology is in addition to the award-winning EyeSight driver assist system, already available on every current model Legacy. The Vision Assist elements available on Legacy 3.6RS Premium

include blind sport detection; lane change assist, auto-dimming rear view mirror, high beam assist and rear cross traffic alert. This feature detects passing vehicles when reversing from parking spaces. The entry-level Legacy 2.5i Sport adds electric folding wing mirrors. Another safety development in every Legacy is the addition of an emergency stop signal (ESS), which detects an emergency brake situation and flashes the hazard lights automatically to warn following vehicles.

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Change your life - smile on the way to work!

The Legacy's Eyesight system

Subaru NZ says noise, vibration and harshness has been reduced through fine-tuning of the shock absorbers, resulting in improved roll, pitch, dive and float control. The premium Legacy 3.6RS is now factory fitted with satellite navigation and the new Subaru Map Update Program. This ensures the latest map version is installed before vehicle delivery. Subaru New Zealand Managing Director Wallis Dumper says Subaru has

long been known for pioneering safety technologies from ABS to airbags. EyeSight, and vision assist features are the latest step in Subaru’s safety-first journey. “We introduced some of these features in premium WRX and WRX STi variants last year and, as we’ve demonstrated over decades, we follow a deliberate path of offering new safety technologies to a wider audience over time.” Dumper says the new generation Legacy is proving a major winner for Subaru, with a sales increase of 40 per cent in 2015, making it the third bestseller in the large under $70,000 car segment in New Zealand. Pricing starts at $39,990 for the Legacy 2.5i Sport and ranges to $49,990 for the premium Legacy 3.6RS.

New engine for drop-top

azda’s new MX-5 comes with a little extra get-up-and-go with a larger 2.0L engine along with some additional features to enhance driver experience. Mazda says the 2016 Mazda MX-5 2.0L remains true to the principles that underpinned the original first generation MX-5 and promises the same sporty, engaging and fun-to-drive experience that defines the model. Andrew Clearwater, managing director of Mazda New Zealand, says the 2016 MX 5-takes the classic sports car to the next level while embracing the hallmark philosophies of the first-generation release. “When we launched the 1.5L MX-5 last year we were aware that there were people who wanted a

little extra horsepower but also the ease of use that comes with an auto transmission. We are delighted to accommodate both with the arrival of the 2.0L variant.” He says New Zealand is one of the few markets to get both the 2.0L and 1.5L model. The Mazda MX-5 2.0L produces 118kW @ 6,000rpm, is equipped with auto transmission, 17 inch alloys, automatic climate control air conditioning, a nine-speaker stereo, keyless entry with advance proximity function, heated mirrors and rain-sensing wipers. The 2.0-litre model is available now and comes in a choice of six-speed manual or six-speed automatic transmission. Prices range from $46,995 for the manual and $48,495 for the automatic.

Email in complete confidence to Peter Murray at peter@ssangyong.co.nz www.ssangyong.co.nz 10 www.autofile.co.nz

Mazda's MX-5 now has a 2-litre option

Customers - plan for success E

very month dealerships have many customers that make contact, enquire on a vehicle, maybe even go for a test drive, but never end up purchasing. These are all opportunities that present themselves but are then lost. For some dealerships this may be 10 or 20 each month through to hundreds in larger dealer groups. Regardless of the number it is still lost sales. It’s frustrating when you’ve spent a significant amount of money to get that customer there and then nothing. This is about ensuring your dealership maximises the opportunity that has presented itself. Customer retention needs to begin right from that very first moment the customer made contact with your dealership. By operating with this mindset you naturally respect every opportunity that ultimately creates a customer, and one that you should retain for life. Get the term “tyre-kicker” out of your vocabulary as the reality is the customer has purchased a car at some time in their life and they will again. You want to do everything possible to ensure they choose a vehicle at your dealership. It’s also so important to provide the customer with an experience that they won’t get from that Private Seller, providing your new customer with that point of difference only a dealership can produce. Approximately 20-30% of customers that test drive vehicles don’t buy from you, they buy elsewhere. Therefore it’s very important to have a plan and a

process of how your Once you’ve dealership follows-up captured your these customers and customer you need to does everything it can consider investing in to keep them engaged their retention. and ultimately convert I encourage you them to a sale. There to look through your needs to be consistent historic sales and follow-up that’s not repeat customer sales, MARK GREENFIELD Motorcentral only done by sales you should see a trend. people on the phone but also Traditionally repeat customers by way of email and text. Email provide you with the highest allows you the opportunity to gross profit and the highest remain present and engaging, finance penetration. ensuring your dealership remains These are your best customers. at the forefront, whilst they make They are also great at referring their purchasing decision. others. So why not put some That particular customereffort, attention and processes in initiated contact with your place to ensure you keep as many dealership, therefore they are already as you can for as long as you can. a long way towards buying from you. There are many touchpoints The important thing from now is to over the customer’s lifecycle that work with them to discover what it is provide you with opportunities they really need in a vehicle. It’s the to make contact and keep your dealership’s job to aid them with dealership top of mind. These this process as much as possible activities also foster referral otherwise they will drift off to business as you are the dealership somewhere else that can. they recall most. Traditionally Good business practice and efficient service will ensure customers return to your dealership for their next purchase

most referrals only come within the first 4 weeks of a customer buying a vehicle, this is largely due to dealerships not having sound retention programmes that keep the dealership in the customers mind longer. A complete customer database and a high level of retention of customers is a very important contributor to any dealership’s business success. Every dealership, I would say, would like to increase their repeat and referral customers and there are many ways to do so, but they mostly require a lot of resource, a current database and regular daily attention by dedicated staff. Motorcentral believe, for this to be effective, you need your Dealer Management System (DMS) to do most of the work for you. These tasks should be removed from your workload and become rules that your system just does automatically for you. This will be dependent on what systems you use and their capabilities, so it’s important to talk with your system provider how you can best utilise your DMS to get the outcome you need. It’s important you ensure your dealership is doing all it can to maximise opportunity conversion to sales, increase referral business, and most definitely increase longterm customer retention. If you are interested to learn more about how a Motorcentral DMS can take care of all these requirements without the need to increase any workload or require more staff then please talk to us now.

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

regional report

Diversification key to Taranaki growth T

aranaki topped the country’s regions for economic growth in the December 2015 quarter, with a lift of 3.8 per cent, signaling a recovery from the weaknesses recorded in the first three quarters of the same year. With strong retail sales, cement sales, and an upward swing in residential and commercial consents, the region looks set to ride out the economic uncertainties underpinned by the drop in oil and dairy prices. Paul Phillips, dealer principal of W.R.Phillips, puts the strong final quarter down to big events in the region, and says New Plymouth

now has the vision to boost its economy through tourism. “Things started to pick up in August and September last year with the Taranaki International Arts Festival, and that momentum continued through to the spring rhododendron festival in October. We’ve just had Americarna, so this current quarter will most likely bounce off the back of those events.” With guest nights up 7.7 per cent, dwelling approvals up 11.4 per cent, and rural real estate sales up 35.2 per cent for the final quarter of 2015, the region experienced a small boom.

The labour market has made a recovery, with unemployment figures for the region at 4.3 per cent as at December 2015, making it the lowest of any centre in the North Island. A December 2015 business confidence survey of 1,500 businesses across all industry sectors by Venture Taranaki reflected an optimistic outlook although the ability to obtain good staff was one of the biggest concerns, says Venture Taranaki chief executive, Stuart Trundle. He says that the uncertainty of contract labour and retention of staff were high on the list of key factors impacting business, along

Tasman Toyota operate four yards in the Taranaki region, right: Craig Clarke, group sales manager, Tasman Toyota

New Plymouth vehicle sales - March 2015 to February 2016 Used cars

New Cars

Used Commercials New Commercials

Public to Trader

Public to Public Trader to Public

Mar ‘15

193

150

269

1,064

425

Apr ‘15

176

100

253

922

401

May ‘15

199

121

258

1,028

454

Jun ‘15

212

158

220

911

463

Jul ‘15

223

148

297

1,144

497

Aug ‘15

201

124

249

1,006

403

Sep ‘15

184

140

201

993

391

Oct ‘15

182

127

214

954

389

Nov ‘15

157

215

915

398

Dec ‘15

131

121

179

900

394

Jan ‘16

174

160

235

979

389

Feb ‘16

176

150

237

954

360

2,208

1,589

118

882

2,827

11,770

4,964

144,690

95,120

8,953

39,785

154,240

503,535

210,309

1.5%

1.7%

1.3%

2.2%

1.8%

2.3%

2.4%

2,218

1,607

122

905

3,042

11,843

5,166

-10

-18

-4

-23

-215

-73

-202

-0.5%

-1.1%

-3.3%

-2.5%

-7.1%

-0.6%

-3.9%

Total 12 months Past 12 months NZ sales New Plymouth’s % of national sales Previous year sales Mar 14 - Feb 15 Units increase/decrease Mar 14 - Feb 15 % increase/decrease Mar 14 - Feb 15

Population 12 www.autofile.co.nz

New Zealand 4,242,051

New Plymouth 109,752 2.6%

with declining commodity prices. Paul Phillips concurs, saying it has been a lot harder to staff his dealership, although getting technicians for the dealership’s service department has not been an issue. “The demands of the motor industry mean we need quality staff. It’s hard work and a high calibre of personnel is needed. One of the main difficulties we have in the industry is being able to secure that requisite skill level in New Plymouth.” With the labour market showing signs of improvement, the region will be looking to bounce back from the effects of the recent downturn in oil and milk solid prices. With both commodities on a steady decline, Richard Williams, chief executive of the Taranaki Chamber of Commerce, says local businesses need to adopt a fresh approach in the wake of the downturn. “The drop in dairy prices will continue to impact the region because the regional economy is commodity driven. However, this also creates an opportunity for businesses to re-engage with their customers and negotiate differently.” “Taranaki is buffered slightly by some of the commodity price downturn, we have a good relationship with our banks but it is tight. It is what it is, and it’s nobody’s fault.” He says that it’s business as usual, with people still needing cars, lease deals and fleets. “Perhaps leasing deals will be a better option for people in the next 12 months. There is a huge opportunity to examine fresh markets and different ways of doing business to keep things ticking over. “Oil and gas is an interesting area because it includes exploration, not just production, and we’ve had a lot of engineers leaving the region.  I imagine that’s impacted the retail

regional report

Port Taranaki is the only deep water seaport on New Zealand's western seaboard; WOMAD and Americarna festivals attract thousands of visitors and boosts the regions economy

t spend but unemployment is still low, and yes, there are reduced margins, but it’s all about opportunity and innovation so we are not so impacted when commodity prices dip.”

Hickford Park in Bell Block. “We’ve got a huge jet boat sprint facility here too. There is great fishing and surfing and the mountain is only half an hour away”. New car sales have also shown Vehicle sales down a slight decline of 1.12 per cent or New Plymouth experienced a drop 18 fewer cars sold compared to the in both passenger vehicle and same period last year. commercial sales across both the Russell Dempster, dealer new and used sectors in February. principal of Energy City Ford, Registrations of new commercial says that new passenger vehicle vehicles were down slightly year-on- registrations have been steady over year by 2.54 per cent, with regional the first quarter of this year. sales representing a 2.22 per cent “We’ve had a lot of success with share of total the new Ford Focus national sales. and passenger Despite the vehicle sales have fall, Craig Clarke, been quite strong. group sales We’re selling around manager of 30 units a month at Tasman Toyota, the moment. I put reports good this down to our sales for the urban client base brand despite the and their preference loss of oil industry for small economy jobs which vehicles. Our SUV has resulted in segment has been a number of going well too with workers cashing the Ford Kuga. We out of their push passenger - Richard Williams, vehicles. vehicles hard.” Taranaki Chamber of “The Hilux is “New Plymouth Commerce a common-sense has a strong vehicle and you don’t have to do a footing in cultural and outdoor lot of research to know the reliability activity. The WOMAD festival is of the brand. However, with the on this weekend and there will dairy prices dropping it translates be thousands of people in for directly to vehicle sales. Our Stratford that. There’s also a big fishing branch has been really impacted contest soon. by it. People are tightening up their “Winter, however, will be a spending and it’s having a spiral different kettle of fish because a effect on vehicle sales.” lot of farmers are concentrating He says having a good standing on calving, but while the weather in the local market is a steadying is good and the summer events influence when the economy turns, continue, it all makes the world and says the dealership supports the go around.” community through sponsorships. Dempster says the dairy sector It has also been recognised with a is starting to hurt from declining number of sales awards. milk prices and says the impact will Clarke says the region has a lot be far-reaching. to offer tourists and locals with an “The guys who build the abundance of natural features, a cowsheds, the guys who do tractor new cycleway and a BMX track at repairs, the companies that build

“There is a huge opportunity to examine fresh markets and different ways of doing business to keep things ticking over.”

milk vats – they’ll have to lay off staff. Yes, it’s starting to hurt.” This is carrying across to the used vehicle sector where sales are down across both the passenger and commercial segments. Used cars have seen a 0.45 per cent drop, and used commercials are down 3.28 per cent over the previous year. Paul Phillips says that in spite of these figures, his dealership has experienced good sales for February. “We haven’t taken anything for granted. We had our 70th birthday in February, and what we’ve tried to do is evolve with the times. Last year we completed a rebuild and now have a service hub that houses our showroom, service and parts division and our administration area. It has impacted on sales for the better.

“Another 10 to 15 cars on the yard would be good but it’s hard to get stock for our used car division though we’re keeping up with customer demand.” He says the positives in the region are there to see and is complimentary of the “visionary” outlook of the regional council and Venture Taranaki. “Taranaki has a lot to offer and visitor numbers are on the up. If we continue to build new visitor attractions and services the region will become more desirable and hopefully attract more people. We’ve got great cafés and restaurants, a vibrant arts and crafts scene and the mountain is on our doorstep - it’s a total lifestyle package.”

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Vehicles wanted News in brief To advertise here, contact: advertising@autofile.co.nz

Licencing fraud under investigation

Buying now

European cars - all makes, all models Andrew Smith



027 496 3191



andrew@euroland.co.nz

www.euroland.co.nz

The

Toy Shop Cars ClassiC & ColleCtible Cars wanted

contact: Max Fletcher 021 996 986 max@thetoyshopcars.co.nz

Police are investigating an alleged driver licence fraud at an Auckland Automobile Association station in south Auckland. The AA has confirmed that a booking agent has been suspended and has subsequently left the organisation. He is being investigated by police for allegedly selling driver licences to unqualified drivers for $500 each. The agent has denied the allegations. Charges had not yet been laid at the time of going to press. It is believed the agent had been manipulating the AA system since January last year. The number of licences involved is unknown. AA corporate affairs spokesman Liam Baldwin says the AA was made aware of the allegations against its agent last week by police and acted immediately.

Air New Zealand goes electric Air New Zealand has confirmed orders for 36 electric BMW i3 vehicles for its sales fleet, with further plans to transition 75 light vehicles in its ground fleet to fully electric vehicles. The airline will purchase 12 Mitsubishi Outlander plug-in hybrids for longer range trips, along with 28 Renault Kangoo Maxi ZE fully electric vans for use at airports. The acquisition will make Air New Zealand the first New Zealand customer for the vehicle. Chief executive Christopher Luxon says the transition is part of the airline’s commitment to sustainability and carbon reduction across the business. The first electric vehicles will arrive later this month.

Japanese diesels exceed nitrogen levels

EuropEan VEhiclEs WantEd

Audi, BMW, Mercedes, Porsche, Maserati, Jaguar and Land Rover Phone Glenn 021 431 685

A Japanese report by its Land Ministry has found that four popular diesel models from three domestic carmakers emitted two to 10 times more nitrogen oxide (NOx) than allowed under the country’s emissions standards. The report, based on tests conducted on diesel sedans and cargo vehicles, showed that the vehicles concerned complied with Japan’s standards when tested in a stationary test environment but exceeded limits when tested on roads and highways. Based on the finding, the Japanese ministry plans to create new standards for diesel vehicles. This is likely to raise concerns among carmakers with the potential for higher development costs to keep emissions legal. The inspection was made on one cargo and five diesel sedan models from Toyota, Nissan, Mazda and Mitsubishi.

Drive Electric hosts EV forum

commErcial VEhiclEs WantEd

Vans, Utes, RV/SUV Phone Cory 027 203 5701

www.corporatecars.co.nz 14 www.autofile.co.nz

Drive Electric will host Christina Bu, Secretary General of the Norwegian Electric Vehicle (EV) Association, and will hold a forum and Q&A session for EV industry members and stakeholders on Tuesday, March 22. With an EV market share of more than 20 per cent, Norway is the global leader in EV uptake and the Norwegian EV Association plays an important role nationally and internationally in promoting the uptake of electric vehicles. The forum will be held at Westpac on Takutai Square, Britomart, from 4.30pm to 6.30pm. Attendance is free for Drive Electric members. Nonmember tickets are $15 and these will be available at the venue.

Customs rated highly in survey The public have rated the New Zealand Customs Service highly in the first Colmar Brunton Public Sector Reputation Index. The Index identified Customs as outperforming other agencies on the trust pillar – particularly on trustworthiness, responsible use of taxpayer money, and providing effective services. Customs rated second overall in the public rankings for 2015/2016.

new cars

‘Intelligent’ system regulates engine T

oyota says its mid-size diesel-engined Fortuner is capable of meeting the demands of families and business owners, and boasts “unprecedented safety, style and four-wheel-drive [4WD] capability”. The marque believes it is positioned to appeal to those seeking a “purpose-built and contemporary SUV”, and is expected to sell between 600 and 700 units this year. The range offers GX, GXL and Limited grades powered by the 2.8-litre diesel engine launched in the Land Cruiser Prado and Hilux at the end of 2015. There are three driving modes – eco, normal and power – and an easy-to-use 4WD selector with the options of high-range 2WD and 4WD or low-range 4WD. The GX grade features a six-speed manual gearbox with

The Toyota Fortuner Limited

intelligent-manual transmission. This system uses sensors to automatically regulate the engine’s revs to their optimum level during gear changes, while the GX, GXL and Limited grades feature a six-speed automatic transmission with paddle shifts. Space and comfort are

Sprinting to the line

ord has released Sprint editions of its Falcon XR8 and XR6 Turbo models. Both variants will have limitededition runs with the marque only making 500 XR6s and 750 XR8s. Recommended prices start at $66,340 with New Zealand being allocated 150 units, 50 of which are XR6 Sprints, while production of the Falcon in Australia ends on October 7. The XR8 variant is powered by a bespoke calibrated version of the blue oval’s five-litre supercharged V8. It develops 345kW of power at 5,750rpm and 575Nm of torque from 2,220-6,250rpm. The statistics for the Sprint

version of the XR6 comes in at 325kW at 6,000rpm and 576Nm at 2,750rpm. Both engines benefit from a transient overboost function, which provides extra performance for up to 10 seconds if conditions allow. The XR6 variant has a sixspeed automatic transmission, while the XR8 also comes with a manual gearbox. Both models receive a makeover with 19-inch black alloys, front foglamp surround, Sprint scuff plates and black headlamp bezels. They will boast unique build plates and numbers, while the XR8 gets a black roof and wing mirrors. The Sprint variant of the Falcon XR8

prevalent inside with seven fullsize seats and the third row can be folded down. The Fortuner shares the Hilux’s double wishbone suspension in the front, and the four-link rear suspension with a lateral control rod providing optimum durability, handling,

stability and ride comfort. The engine produces 130kW of power and 450Nm of torque from 1,600-2,400rpm in automatic, and the GX manual version has 420Nm from 1,400-2,600rpm. The manual has a combined fuel-consumption rate of 7.8l/100km with the automatic coming in at 8.6l/100km. There is a braked tow rating of 2.8 tonnes for the automatic models and three tonnes for the manual, while all are fitted with trailer-sway control. The Fortuner’s active traction-control electronics were fine-tuned in Australia for local conditions, including gravel roads, and can be turned off for specific off-road conditions, such as mud, sand or snow. Prices start at $70,990 for the GX manual and increase to $78,990 for the Limited automatic $78,990.

VEHICLES WANTED 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

Industry movers NZ labour market report Shannon Beech was recently appointed chief executive officer of MARAC Insurance Limited. Beech was well known to the New Zealand auto industry, having spent almost 13 years with Vero Insurance, most recently as Autosure’s regional sales manager responsible for Auckland and Northland sales teams. Beech says “I am relishing the experience of being part of a bank and seeking out new insurance opportunities.” Mitch Woods has joined the team at Trade Me Motors as business development manager for MotorWeb. Woods has worked within the automotive industry for many years holding roles for companies such as Esanda, Fleet Partners, Marsh and more recently the New Zealand Automobile Association. Kyle Avery has recently stepped up as the national sales manager of Autosure, having spent 10 years at the company as account manager, Autosure F&I sales trainer and regional manager. Avery brings with him a wealth of industry knowledge and expertise, having previously spent more than 12 years in car sales, management and business manager roles. Warwick Bourne has been appointed northern regional sales manager. New to Autosure but not new to the Auto industry, Bourne previously worked at CustomFleet, in a fleet management role, and has held other positions in the finance and automotive trade for over 20 years, both here and in the UK including dealership business manager and finance and insurance account management roles. Nigel Trewhitt has been promoted to the role of southern regional sales manager. Trewhitt has been with Autosure for 19 years and within the wider Motor Industry for 27 years. He will manage the southern regional sales team and continue to deliver Autosure F&I training. Anneka Stevenson has been appointed national business manager, 2 Cheap Cars Ltd, and is responsible for the finance and insurance teams in their dealerships nationwide. Stevenson has spent the last nine years with Autobase and Trade Me Motors, after the Trade Me buyout of Autobase, where she held roles as Auckland account manager and New Zealand business development manager. Mark McLean, chief risk and innovation officer for SBS Bank, has been appointed as interim chief executive, following the recent death of Wayne Evans. The company is well-known in the automotive industry through its Finance Now division. McLean has previously held financial services leadership roles in the UK, Singapore, Netherlands and New Zealand.

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

February job vacancies were down by half a per cent across the board last month compared to February 2015 statistics. While this was not a significant change month on month, there were regional variations to the availability of work, with three of five key regions experiencing a decline in job vacancies. The Ministry of Business and Innovation this week released its Labour Report for February, which shows a slight downturn in job vacancies for Auckland, Canterbury and the rest of the North Island and an upward swing for the rest of the South Island and Wellington. The report draws data from three major online job internet boards, Trade Me, SEEK, and the Education Gazette. Canterbury experienced a decrease over the month with a decline in vacancies of 1.0 per cent. Labourers headed up this decrease with 4.7 per cent, followed by machinery operators or drivers on 3.7 per cent. However, there was a notable increase in vacancies for technicians and trade workers, up 2.9 per cent. The breakdown of the types of job vacancies across all sectors in the country showed significant increases in vacancies for construction managers, up 18 per cent, urban and regional planners, up 67 per cent and motor mechanics up 9 per cent. There was a decrease in available jobs in five out of eight industry groups, with the accounting, HR, legal and administration group posting a 1.2 per cent drop, while in the construction and engineering groups, there was an increase of 2.7 per cent. Steve Jackson, chief operating officer of one of New Zealand’s largest recruitment firms, Madison Recruitment, says that the market is changeable on the back of current economic trends, such as fluctuating milk and dollar prices.

“A booming residential housing market, record inward migration and overseas visitor levels, together with huge activity in the building and infrastructure sectors have all had a profound effect on the domestic job market.” “A prevailing theme across all disciplines in 2015 was the importance placed on candidate ‘fit’. Rather than risk disruption to the existing team culture, companies preferred to wait for the right personality, placing as much emphasis on attitude as skill set, which had a knock- on effect on hiring times. “The ‘number-eight wire Kiwi can-do’ attitude is becoming obsolete. Rapidly evolving technology and the need to compete in a global market means that many businesses are engaging specialist expertise to bring them up to speed.” Growth in one sector can also absorb key personnel from other larger organisations, as seen in the construction industry, where accountants and finance managers are in high demand. “Our industrial division reported a real dearth of highly skilled tradespeople in the construction and utilities areas, due in part to the Christchurch rebuild and building booms currently being experienced across Auckland, Hamilton and Tauranga. “With over $10 billion worth of construction projects planned for Auckland alone in the next 5-10 years, there was a huge increase in demand for project managers, electricians, plumbers and carpenters as some of these projects kicked off in 2015.” David Paterson, MBIE’s Labour Market Trends Manager says the overall outlook for March and beyond is strong. “The widespread growth in vacancies across industries, skills and occupations reflect a rise in business confidence last month and strong employment growth in the December quarter.”

f & i focus

Payment-protection steps up A

t a time when providers of financial products and services are under increased scrutiny from the commerce commission and other industry watchdogs, and with last year’s changes in legislation based on the responsible lending guidelines, it is now paramount that motor traders are offered suitable insurance products that protect their customers. With this in mind, our product review team researched similar products here and abroad and have developed a much improved payment protection insurance that we believe will offer motor traders a great product to on sell, thereby improving customer protection and the dealership’s bottom line. There are some existing objections in the market such as pre-existing conditions and standdown periods which are much

more flexible in the are in hospital for more new policy. This will than two days, you will make it easier for motor receive up to $500 per traders to sell extended day for a maximum of cover with greater 10 days for hospital confidence. Best of costs not covered by all, it comes with no any other insurance additional cost to the or government premium. entitlement. SIMON MOORE By way of educating Carer Cover: Previously Motor-trader development manager dealers on the changes, not available, the Protecta Insurance we have outlined below policy will now cover some key features of the improved your customer for up to 180 days or offer and the selling points: $100,000 (if granted leave by their Pre-Existing Conditions: Previously employer) to care for an immediate any pre-existing medical condition family member (parent, spouse or or accidental injury was excluded. child) for a period longer than 28 days. Under the new policy it would only Business Interruption: No cover be excluded if diagnosed or the was offered under the previous symptoms were known during the policy. The new policy provides six months immediately prior to cover for up to 180 days or the policy start date. $100,000. Conditions apply. Hospitalisation: No cover was Suspension: No cover was offered under the previous policy. previously offered. Now your Under the new policy, providing you customer is covered for up to 180

days or $180,000 if suspended from permanent employment due to legal strike action and their wages are legally withheld for a period greater than 28 days. Recurring disability: Now if your customer suffers the same disability within three months of the last payment, we will consider it the same claim with no wait or stand down period. Payments and terms will accumulate under the original term. Stand down periods have also been reviewed and reduced. This product is exclusive to Protecta Motor Traders and it’s an easy process to become an authorised Protecta agent. We are also hosting business manager breakfast meetings throughout the country to launch the products and offer training. If you would like to attend contact me for details: simon.moore@protecta.co.nz.

PROTECTA nationwide F & I results February 2016 Best result: $ 1,424

55%

Worst result: $ 2 02

New Used

50%

51%

45% 40% 35%

38% 32%

30% 25%

Specialised Training to Increase Your Sales

34% 32%

26%

Our Specialised F&I Training is helping our Motor Dealers achieve greater sales and increased profits. It’s not a secret. Find out more today.

24% 22%

21%

20% 15% 10% 5% 0% Finance

PPP

GAP

Insurance

MBI

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

disputes

Trader ordered to pay for replacement air flow meter in old Tucson

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

Oc hig

mo am 1,4 th 11

 27.7%  26.8%  23.7%

ConneCt & engage

Used

J J

A

westport Masterton timaru

Used

  

North IslaNd versus south IslaNd

9000

6000

Used 8545

8000

5000

New

7962

7000

6000

3000

2000

SEP ‘13

Nov ‘12

SEP ‘13

Oct ‘13

JuL ‘13

AuG ‘13

JuN ‘13

MAy ‘13

FEb ‘13

APr ‘13

MAr ‘13

JAN ‘13

DEC ‘12

South Island

1000

4000

APr ‘13

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

North Island

4000

5000

Nov ‘12

7000

FEb ‘13

2012

Used Vehicle RegistRatiOns

New versus used

JAN ‘13

6500

PassengeR Vehicle RegistRatiOns

10000

MAr ‘13

2013

DEC ‘12

7000

Biggest decreases

new

JuL ‘13

7500

5500

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

8000

6000

Order

AuG ‘13

The tribunal took into account the age, high mileage and price of the Tucson in determining whether it complied with the CGA’s guarantee of acceptable quality. The authority accepted that the Tucson had a problem starting cold from the time of sale. Turners’ mechanics and Le Roux had failed to fix the fault. The tribunal’s assessor said the vehicle most likely needed a new air flow meter.

At:

try

Aircon Ltd (Le Roux) on April 17.0 900 Le Roux charged him $202 to 8500 replace a coolant sensor.

The finding

The decision:

The buyer said that soon after he bought the Tucson, he had difficulty starting it when its engine was cold. He told Turners about the fault on March 15, and took the vehicle to its repairer, Autosure Services. The buyer said Autosure Services cleaned the vehicle’s air flow meter and spark plugs and it started satisfactorily for a short time but the cold-starting issue returned. Dominikovich said he was dissatisfied with the delay by Turners and Autosure Services 10000 to repair the vehicle so he took 9500 it to Le Roux Auto Electrical &

However, the tribunal was not convinced the other faults diagnosed by Manukau The Hyundai were present at the purchaser’s application was dismissed. The trader was ordered time of sale. The vehicle had to pay the buyer $750 to replace passed a warrant of fitness the vehicle’s air flow meter. inspection after Dominikovich The Motor Vehicle Disputes had bought it. Tribunal, Auckland The authority ruled the Tucson did not comply with the guarantee of acceptable quality Next, the tribunal considered under the CGA because it was not whether Dominikovich gave the free of minor faults. trader a reasonable timeframe to Dominikovich said because fix the vehicle’s starting issue. Manukau Hyundai reported It said Dominikovich’s the vehicle needed repairs evidence as to when and how costing $2,000, its faults were of often he returned the vehicle substantial character. The tribunal to Turners Group was unclear. disagreed. It ruled the only fault The buyer said he returned the in the Tucson at the time of sale vehicle twice for repairs but was the air flow meter. Turners disputed that claim. The The trader claimed that its second time Dominikovich took payment to Dominikovich for the the vehicle to Turners’ repairer, he repairs to the vehicle on April 17, removed the Tucson and took it and his acceptance of the $202, to Le Roux, who failed to identify constituted the buyer’s agreement the cause of the cold-starting to compromise any claim he had problem. It was not until the under the CGA for the costs of purchaser took the vehicle to repairing the Tucson’s cold-start Manukau Hyundai that the cause issue. The trader referred to an of the cold-start fault was found. exchange of three emails in July as The tribunal ruled founding the agreement to accept Dominikovich did not give the the money in full satisfaction of trader a reasonable opportunity the purchaser’s claim. to fix the fault. It said the buyer However, the tribunal didn’t was not entitled to reject the consider the emails amounted to vehicle under the CGA. an agreement by Dominikovich to The TRUSTED online settle his claim againstwholesale the trader trading site. autopo rt.net for $202, but a statement by the buyer that he was disappointed t h eThe application to reject the Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth was dismissed. The trader that the trader would not accept Biggest increases/Decreases Wanganui Palmerston Northvehicle Masterton Wellington By town year-on-year Nelsonthe Blenheim Greymouthwas Whangareiordered Auckland (OctOber 2013 vs OctOber 2012) to pay the buyer his rejection of the vehicle so Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Biggest increases to replace the vehicle’s air purchaser was not prevented from Masterton Wellington Nelson$750 Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin flow meter. making his claim under theInCGA. vercargill Whangarei Auckland Hamilton Thames

JuN ‘13

The case

Dominikovich asked Turners to refund the $202 he had paid to Le Roux. Turners asked the trader to pay that sum in the belief, which they apparently conveyed to the trader, that by doing so it would settle any dispute Dominikovich had against the trader. However, Le Roux’s repair did not resolve the cold-start issue and on September 8, Dominikovich’s stepfather took the vehicle to Manukau Hyundai. It reported the hard starting was caused by the air flow meter, which it was unable to clean. Manukau Hyundai noted it also found a leaking power steering hose and a leaking radiator with impact damage. Dominikovich emailed the trader on or about September 7 purporting to reject the Tucson for its “the hard starting and low power”. The dealer said its payment of $202 to Dominikovich settled his dispute. Therefore, it didn’t consider the purchaser was entitled to reject the vehicle.

MAy ‘13

Benjamin Dominikovich bought a 2005 Hyundai Tucson by internet auction for $3,700 from Turners Group, which was selling the vehicle for Elgin Motors 2005 Ltd, on March 11, 2015. Soon after purchasing the Tucson, the buyer told the dealer the vehicle had several faults which constituted a failure of substantial character within the meaning of the Consumer Guarantees Act (CGA) and was rejecting the vehicle and sought a refund of his purchase price. The trader said Dominikovich had settled his claim against it by accepting $202 paid to him by Turners Group as the trader’s agent, therefore, the buyer was not entitled to reject the vehicle.

rejected his 2005 after supply saying it had faults of substantial character under the terms of the Consumer Guarantees Act (CGA), and sought a refund of his purchase price. The trader said the buyer had settled his claim by accepting a $202 repair refund.

Aroun

Background

purchaser The case: TheTucs on soon

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

Buyer rejects Mazda after discovering it was flood-damaged Background

pre-purchase inspection on the vehicle and he said he was 100 per cent confident in the Mazda, and it was a private sale because he was not a motor vehicle trader. The AA report noted paint touch ups but found the vehicle was in good condition. Chand did not supply a vehicle offer and sale agreement nor a consumer information notice at the time of sale. Three months later, Perry obtained the Mazda’s history from the New Zealand Transport Agency and discovered the vehicle had been written-off as flood damaged. Perry emailed Chand on August 25, saying the Mazda was flood damaged and she wanted a refund of the purchase price. She said she spoke to Chand the following day and asked for a refund of her purchase price, and told him that she would make an application to the tribunal. Perry said Chand told her to Perry produced a copy of Chand’s “go for it and do what you have xxxxxxxxxxx advertisement for the Mazda to do”. on Trade Me which named the On September 2, Perry filed an seller as carconnection. She said application to reject the vehicle he amount of stock held sales. are boosting on Maythat28, she asked Chand Christchurch with the tribunal. after the global did come downvia dropped to this year’s low of tock levels of new cars have by 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. levels then increased “Stocking executive chief Crawford, Trade Me if the Mazda had been David The next day, Chand emailed with year, this except one monthly total of the year. 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 are. SUVs hot, and sold of new vehicles Association (MIA), says current ghest of 2013. with a last month imported involved in an accident.number Perry saying he had told her “the the housing market “People in 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 especially itemsan big-ticket buy to sure so not I’m but up, He replied that the car had no go vehicle is Australian import 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.” day out,” he told Autofile. day in, after accident record. brought from the damaged he second highest amount There have been two other All that 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 variances between imports and sales aren’t North, Perry said she was directed vehicle auction as a statutory 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. year and 100,000 are sold the to cars view the car at the Japanese write-off almost exactly in the of the North Island branch of the New Zealand’s of cent per 80 2013 “But Oct Zealand sales New average in the year, new of following stock Dealer Motor Vehicle Industry Imported and Auckland in is population per day should be higher – and says the current Car Cafe premises. She noticed condition you saw before buying”. 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. a these centres cover Wellington,replied overspray on the car’s bumper and Perry saying Chand’s during 2012. “If the monthly stockpile was large proportion of the population There were 54,404 sales in 2009, 10,000 on a regular basis it means and all have strong economies.” 62,029 in 2010, was told to ask Chand about it.64,019 in 2011 email was untrue and if holding numbers,” are solid had thereshe Year to date, 77,438 new cars and 76,871 in 2012, and the MIA is he told Autofile. “North of that have been imported and 68,612 predicting about 82,000 passenger be looking would we and a On May 30, Perry said she give known the car was damaged, sheat an 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 hand has Days with stock at on light commercials called Chand to organise an AAand we’re new wouldn’t have bought it. in March, and we saw high arrival been steadily increasing from 78 in New Passe or 113,000 Sacha Perry bought a 2013 Mazda 3 for $18,491 from Mukesh Chand trading as ‘carconnection’ on June 3, 2015. She said the vehicle was imported from Australia and the sale was facilitated by Japanese Car Cafe Ltd acting as carconnection’s agent. In August, Perry discovered the Mazda had been imported as a written-off, flood-damaged vehicle. She said Chand misled her to believe the car had not been involved in an accident. She sought remedy under the Fair Trading Act (FTA) and the Consumer Guarantees Act (CGA). Chand denied he was a motor vehicle trader at the time he sold the vehicle to Perry. He said the tribunal did not have jurisdiction to hear her application. Japanese Car Cafe said it was unaware Chand had imported the vehicle in its name.

The case

purchaser The case: The t her Mazda 3 after

On September 16, Perry sent Chand a letter rejecting the vehicle because he had not disclosed that it was a write-off. North Harbour Ford & Mazda inspected the vehicle on October 9. It noted rust on the steering shaft. Chand said he became a registered motor vehicle trader on October 5, trading as SPMC Enterprises Ltd, and that he had sold six vehicles in the past 12 months. However, Trade Me showed seven listings by Chand trading as carconnection. Chand said he imported the Mazda in Japanese Car Cafe’s name because he didn’t have a shipping agent. Chand said he told Perry before she agreed to buy the vehicle that it was a write-off. He said Perry did not comment on that. The authority accepted Japanese Car Cafe was unaware Chand had imported the vehicle in its name. xxxxxxxxx

wanted to rejec she discovered it had been writtenoff due to flood damage. The trader denied he was a motor vehicle dealer at the time of sale. He said the tribunal didn’t have authority over the application.

n: The tribunal The decisio contract for the sale declared the and purchase of the vehicle void ab initio. The trader was ordered to pay the buyer $18,491 and uplift the car. r Vehicle Disputes At: The Motoland Tribunal, Auck

whether the vehicle complied with the CGA’s guarantee of acceptable quality. It found the Mazda most likely had rust patches due to flood damage and was not free of minor faults at the time of sale. However, the authority ruled Perry did not prove the failure to comply with the guarantee of acceptable quality was of substantial character and dismissed her application to reject the vehicle under the CGA. Although Chand’s May 28 email said the car had “no accident record”, the tribunal ruled flood damage constituted an accident. The tribunal found Chand’s conduct in representing the The tribunal ruled the car’s supplier vehicle as having no accident always been the way. units, are more static with their 1996, it has ebbed and flowed.” and importer was Chand. record when was misleading under oversupply can “You holding not changing too much. Used car stock levels are buying conditions are good, but A drop of 50 units may not be traditionally based on what’s corrects normally the marketplace vary can stock But drastic. too The tribunal ruled Chand was the terms of the FTA and was the what 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 classed as a motor vehicle trader cause of Perry’s loss. 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 under the terms of the Motor It declared the contract for the sale down 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 Macdonald. to go Vehicle Sales Actsaysas he had sold so the stockpile tends of the vehicle to be void ab initio. 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 seven vehicles from September 23, holidays, so it goes down. “December and January are stock of used car imports in New Zealand - Oct 2013 Dealer 2014, August 12, 2015. because for sales good monthsto people take time off work, the kids 2012 people may have school andadjudicator are off The The contract for the sale and considered Christmas bonuses or holiday pay. “It’s a time when Kiwis tend to purchase of the vehicle was the age, mileage, sale price and make financial decisions, so dealers need to have plenty of stock to declared void ab initio. Chand was the report from North Harbour match demand. “When the market’s down in is hard to get. When Japan, stock& ordered to pay Perry $18,491 and Ford Mazda about rust damage it’s buoyant, you tend to buy what you can because you don’t know uplift the vehicle. to the vehicle in determining 17% what will be available next time.

The finding for stockpile high al Annu Industry manages levels well

StoCk

VArIANCe

12,984

MIA stock estimate as at end of December 2011

Jan ‘12

5,026

7,499

(2,473)

10,511

242

Feb ‘12

7,368

5,633

1,735

12,246

223

Mar ‘12

7,228

6,499

729

12,975

218

Apr ‘12

6,285

5,430

855

13,830

209

May ‘12

7,742

5,942

1,800

15,630

205

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

8,870

7,142

1,728

17,358

211

7,894

6,208

1,686

19,044

209

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

212

119

26,867

211

128

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

158

Wellington 68,612

Lyttelton 82,380

8,826

7 Nov

13- Nov

16 Nov

17 Nov

4 Dec

23 Nov

11 Dec

29 Nov

11 Dec

BMw

Subaru

Audi

Mercedes-Benz

Peugeot

Jeep

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Dec

226

oct

35,693

nov

(266)

sep

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

7,272

Auckland 1,400 7,962

JUL

77,438

2013 predicted sales

1,654

30,322

120

aUG

Oct ‘13

ytd total

30 Oct

130

JUn

20 Oct

apr

Dec ‘13

132

220

may

Nov ‘13

125

214

28,668

Feb

9,362

1805

216

28,159

mar

7,006

Oct ‘13

27,077

509

Jan

11,065

Sep ‘13

25,594

1,082

Dec

Aug ‘13

(471)

1,483

oct

8,423

6,347

nov

Jul ‘13

6,800

5,908 Osaka 7,542 Nagoya

sep

Jun ‘13

8,051

JUL

7,429

Hyundai Mazda

Nissan Morning Miracle Suzuki V5

aUG

7,391

May ‘13

Sepang Express V9

JUn

6,329

Apr ‘13

Ford

LATEST SCHEDULE

apr

Mar ‘13

223

may

7,027

6740

238

26,065

(2,030)

Feb

Feb ‘13

24,837

7,385

180

160 104 Hoegh Xiamen 117 140 115V20 222

Port 1,228 5,799Calls

mar

5,355

Days stock in nZ - new cars

3,191

6,375

(3,184)

5,395

206

Feb ‘12

4,920

6,000

(1,080)

4,315

210

Mar ‘12

6,504

6,429

4,390

209

Apr ‘12

6,613

5,877

736

5,126

206

May ‘12

7,693

6,793

900

6,026

208

Jun ‘12

6,947

6,184

763

6,789

208

Jul ‘12

5,335

6,641

(1,306)

5,483

209

Aug ‘12

5,540

6,621

(1,081)

4,402

210

6,222

(716)

3,686

209

5,506

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

Total stock at the end of December 2012 Jan ‘13

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

8,579

Jan ‘12

Sep ‘12

Days of stock

NeW CArS SoLd

Imported

Make

Toyota

Holden

Order

StoCk

850 wds

Payment protection

25,153

1,714

13,883

Jan

2013

2,469

6,102

76,871

6,484

7,816

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

Total stock at the end of December 2011

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 vehicle sales overall.” Business confidence being high and strong regional economies in Auckland and

Imported

12% 14% 13%

GAP

Imported

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

Insurance

NeW CArS SoLd

Finance

22% 9% 8500

www.autofile.co.nz

16%

19 8000 7500

New P

Brought to you by

the

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

Aro

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 Greymouth F e Whangarei Auckland Hamilton6Thames 1 bru ary 20

Used import passenger vehicle registrations by city

5000

6500

4500 6000

4000

5,749

Auckland

5500

3500 3,290

Auckland

3000

5000

2500

2000

1500

1750

1000

1500 Vehicles sold

Vehicles sold

2000

900 800

Christchurch

700 Wellington

600

1,558

Christchurch

1000 Wellington

750

900

662

800

890

Hamilton

789

700 500

510

600

400 300

394

Dunedin 300

279

Palmerston North

100

436

400

288 261 238

Tauranga Dunedin

200

Tauranga

500

Hamilton

Palmerston North

200

Feb ‘16

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb '15

Feb ‘16

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb '15

New and used cars registered in February 2016 by region WHA

AUC

HAM

THA

TAU

ROT

GIS

NAP

NEW

WAN

PAL

MAS

WEL

NEL

BLE

GRE

Used cars

233

5,749

789

436

127

248

176

279

890

188

New cars

142

3,290

510

288

237

150

238

662

Total cars

375

9,039 1,299

170

724

210

102

485

326

133

517

120 1,552

281

120

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WES

CHR

TIM

OAM

DUN

INV

TOTAL

107

394

127 11,736

750

261

125

13 2,308

152

655

252 18,927

10 1,558 3

7,191

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TWO SAILINGS PER MONTH JAPAN TO NZ LATEST SCHEDULE Port Calls

Tokyo Car V1605

Morning Midas Morning Miracle V1606 V1607

Tokyo Car V1608

Moji

1 Mar

–

Osaka

2 Mar

19 Mar

1 Apr

15 Apr

Nagoya

3 Mar

20 Mar

2 Apr

16 Apr

Yokohama

4 Mar

21 Mar

3 Apr

17 Apr

Auckland

20 Mar

7 Apr

19 Apr

5 May

Wellington

27 Mar

10 Apr

26 Apr

8 May

Lyttelton

2 Apr

9 Apr

2 May

7 May

Nelson

5 Apr

8 Apr

3 May

9 May

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Stubborn dollar impacting stock

he stubborn strength of the New Zealand dollar and high domestic demand for used vehicles in Japan is creating a tough operating environment for used vehicle importers in New Zealand. Dealers are reporting tighter margins and greater competition among themselves for low-mileage quality stock. The latest used passenger import statistics show a small increase in the number of used vehicles coming over the border in February but this has yet to filter down to yards and ease what dealers’ are reporting as supply pressures. February’s import figures show a total of 11,972 used passenger

vehicles entered the country. This is a considerable increase of 2,206 over January import figures. The vast majority of February used imports came from Japan (11,351) for a 94.8 per cent market share. Australian imports placed second with 445 units for a 3.7 per cent market share. This too was an increase on January when 322 imports crossed the Tasman. The US was next with 79 imports, 11 less than were imported in January while Singapore with 46 imported units showed the biggest drop over January when 76 units entered the country. The UK rounded out imports with 39 arrivals. This too was well down on January when 68 units came in.

Trevor Lee, dealer principal of Trevor Lee Auto Sales in Mt Maunganui, says that with the market for used passenger cars as tight as it is, there is little a dealership can do other than ride it out. He says late-model low-mileage cars are the hardest to get and this is reflective of the increasing value of late-model second-hand vehicles in Japan due to increasing internal demand in the Japanese domestic market. Graeme Rutherford of Wheels on Wairau says that while getting cars across the border has been hard over the December and January period, accessing units out of Japan has become easier in the last month. He

puts this down to agents working harder to supply stock and says there are signs that more used stock is becoming available for import. “It’s definitely the yen that’s impacted the buying but we’ve found different ways of weathering that storm. We have been selling quite a few Prius’ at the moment and there is plenty of demand from within the taxi fleet seeking out more efficient vehicles. In the last few months we have sold around 24 of these units.” Rutherford says between repeat business, referrals, and fleet supply, things have been ticking over despite the recent contraction in imported used-car availability.

Used imported passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000 9000

2015 2016 2014

8000 7000 6000 5000 4000

2013

3000

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Imported Passenger Vehicles By Country Of Export Country of Export

2016

2015

2014

JAN ’16

Feb ’16

Feb Market Share %

2016 Total

322

445

3.7%

767

1,079

1,232

1,258

1,324

4,893

0.3%

107

283

252

194

210

9,190

11,351

94.8%

20,541

33,293

41,594

30,804

37,434

Singapore

0.4%

122

160

182

Usa

0.7%

169

259

246

258

Other countries

0.1%

9,769

11,972

100.0%

21,741

35,066

43,550

Australia Great Britain Japan

Total

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Q4 2015 TOTAL MRkt Share

2014 total

MRkt Share

3.2%

3,167

2.3%

939

0.6%

1,885

1.4%

143,125

94.9%

130,770

95.0%

192

611

0.4%

252

0.2%

278

1,041

0.7%

1,278

0.9%

253

0.2%

286

0.2%

32,746

39,500

150,862

100.0%

137,638

100.0%

Value Fixed fee with no hidden costs

Proud to sponsor the SecondHand Car Sales Statistics

Trade-ins harder to come by T

he second-hand car market has picked up again with February sales recording an increase of 508 units sold over the same month last year or 3.1 per cent. Secondhand car dealers reported good sales activity in February, despite trade-in stock being hard to find. Dealers further commented that competition with on-line trading continues to be a challenge. The number of trade-ins for February was recorded at 12,148 which is an increase of 181 units on February last year, or 1.5 per cent. Public-to-public transactions totaled 42,744, an increase of 3,179 units or 8.0 per cent.

Regionally, the most significant increase in dealer sales occurred in Wanganui which experienced a jump of 38.5 per cent or an extra 60 vehicles sold over the same period last year. Elsewhere, Timaru showed good growth and placed second in terms of percentage growth with 46 more units sold over the same month last year for a 22 per cent increase. The two top performing regions in public-to-dealer transactions were Gisborne and Blenheim. Gisborne topped this category with a 21.6 per cent increase. This comes on the back of a strong December quarter for the region with retail sales and car

registrations increasing five per cent over the previous quarter, according to the ANZ Regional Economic Trends report. Blenheim also showed stronger public-to-dealer sales, both yearon-year and from the previous month, with a 20.9 per cent increase or additional 23 units sold. Meanwhile, February sales in the Wellington region have shown slight growth with a 9.6 per cent increase in dealer-to-public sales. With more than 40 years’ experience in the second-hand market, dealer principal of Wellington’s City Wholesale Cars, Dennis Davies, says that changes in the trade-in sector spell

harder times for dealers. “Trade-ins were once the core business. We used to buy trade-ins from new car dealers and things were much more straightforward. There was less competition for good cars.” Davies says, however, that the basics of trading have remained the same, with repeat business being the most important factor. He says business standards have improved and that dealers need to provide a trustworthy service in order to compete with new trading methods. “The basics are the same, but now you really have to present your cars well.”

Secondhand car sales - February 2016 Dealer-To-Public

Public-To-Public

Public-To-Dealer

Feb '16

Feb '15

+/- %

MARKET SHARE

Feb '16

Feb '15

+/- %

Feb '16

Feb '15

+/- %

520

481

8.1

3.1

1,885

1,710

10.2

225

209

7.7

Auckland

5,642

5,449

3.5

33.4

14,501

13,322

8.9

4,335

4,275

1.4

Hamilton

1,411

1,351

4.4

8.4

3,226

3,080

4.7

1,115

1,155

-3.5

Thames

211

208

1.4

1.3

568

469

21.1

1.4

Tauranga

879

936

-6.1

5.2

2,057

2,049

0.4

567

608

-6.7

Rotorua

283

255

11.0

1.7

954

715

33.4

118

108

9.3

Gisborne

160

164

-2.4

1.0

360

367

-1.9

21.6

Napier

633

585

8.2

3.8

1,528

1,341

13.9

411

382

7.6

New Plymouth

360

366

-1.6

2.1

954

948

0.6

237

233

1.7

Wanganui

216

156

38.5

1.3

571

445

28.3

116

149

-22.1

Palmerston North

772

785

-1.7

4.6

1,635

1,559

4.9

542

638

-15.0

Masterton

161

156

3.2

1.0

460

349

31.8

100

3.1

Wellington

9.2

Whangarei

1,557

1,421

9.6

3,105

2,831

9.7

1,163

1,079

7.8

Nelson

313

317

-1.3

1.9

950

949

0.1

210

212

-0.9

Blenheim

188

174

8.0

1.1

433

356

21.6

133

110

20.9

Greymouth

21.5

0.6

210

209

0.5

-10.6 0.0

Westport Christchurch Timaru

-22.2

0.1

-16.3

2,115

2,091

1.1

12.5

5,549

5,273

5.2

1,772

1,659

6.8

255

209

22.0

1.5

555

564

-1.6

161

142

13.4

Oamaru

-6.8

0.3

154

174

-11.5

-43.5

Dunedin

679

716

-5.2

4.0

1,983

1,771

12.0

452

435

3.9

Invercargill

366

402

-9.0

2.2

1,024

986

3.9

271

258

5.0

16,886

16,378

3.1

100.00

42,744

39,565

8.0

12,148

11,967

1.5

NZ total

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

Private

% Private

Business

% Business

Alfa Romeo

20.0

80.0

Aston Martin

50.0

44.5

55.5

137

100.0

0.0

BMW

22.0

149

78.0

191

Chery

94.1

5.9

Audi Bentley

Chrysler

33.3

66.7

Citroen

40.0

60.0

Dodge

45.5

54.5

60.0

40.0

Fiat

81.8

18.2

Ford

228

37.9

373

62.1

601

Holden

142

22.0

503

78.0

645

Honda

221

75.7

24.3

292

Hyundai

207

43.9

264

56.1

471

50.0

Ferrari

Isuzu Jaguar Jeep

12.1

87.9

24.0

76.0

100

231

56.8

176

43.2

407

Lamborghini

50.0

Land Rover

60.7

39.3

Lexus

45.8

54.2

50.0

Kia

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

Total

McLaren

50.0

431

60.0

287

40.0

718 162

Maserati Mazda

43.8

56.2

0.0

100.0

Mini

18.2

81.8

Mitsubishi

267

65.0

144

35.0

411

Nissan

241

49.9

242

50.1

483

Peugeot

40.0

60.0

Porsche

56.0

44.0

Renault

18.2

81.8

Skoda

40.2

59.8

102

SsangYong

44.2

55.8

Subaru

46.2

112

53.8

208

Suzuki

235

64.9

127

35.1

362

Toyota

321

35.2

592

64.8

913

Volkswagen

135

43.4

176

56.6

311

Volvo

34.0

66.0

Total

3,286

46.0

3,862

54.0

7,148

Mercedes-Benz

SUVs strengthen brands position

orean manufacturing giant Kia continues to make a splash with its SUV range across the marque, with a total of 407 new passenger and SUV vehicles sold in February. Of these sales, business registrations were at 43.2 per cent and private sales at 56.8 per cent, with the Kia Sportage one of the standout sellers for the month. With Kia exports now up to two million units a year, the brand is a major player in the ever-increasing SUV market. Last year, it gained a 74th placing on brand-valuation consultancy firm Interbrand’s 100 Best Global Brands in 2015. The car maker saw a 5 per cent increase in sales in the same year, at an estimated value of $8.3 billion. Its brand value has also increased by 530 per cent since 2007. On the back of that growth and consumer demand, the new Sportage landed in this country last month and it has been wellreceived, says Todd McDonald, general manager of Kia Motors New Zealand. “Our dealers are seeing unprecedented interest from their customers and are placing a record number of orders.” While the popularity of the outgoing model is undeniable, with more than 1.6 million vehicles sold between 2010 and 2015, the fourth-generation 2016 Sportage delivers a larger profile, with a longer wheelbase, and a 40mm increase in length overall, making it one of the more spacious SUVs on the market.

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The other top-selling model for February, the medium-crossover Mazda CX-5, had sales of 236 units, placing it first equal with the Sportage. Overall, Mazda was the second-best performing marque last month, behind Toyota, with sales of new passenger cars and SUVs up to 718, with 287 of those sales registered to businesses, or 40 per cent. The balance of sales to private buyers was 431, or 60 per cent. Launched in 2012, the Mazda CX-5 has come a long way in both design and safety, with the latest incarnation featuring the i-ActivSense safety system. This includes smart technologies to augment visibility such as adaptive LED headlights, lanekeep assist and driver attention alert. The GSX variant has a fivestar safety rating with ANCAP, and the company is due to release the full-sized SUV CX-9, a 2.5-litre turbocharged model, in New Zealand later this year. Toyota was the top-selling marque for the month, according to figures released by the Motor Industry Association, with sales of 913 new passenger and SUV vehicles. Of this figure, 64.8 per cent, or 592 units were registered with businesses and 35.2 per cent of units were registered privately (321 units). Total February sales of new passenger cars and SUVs were 7,148 - down from the previous month by 1,724 units. Of this, 3,286 vehicles were purchased by members of the public.

new vehicles

Buoyant economy reflected in sales T

here was a “cautiously optimistic” economic climate in February, according to Cameron Bagrie, chief economist at ANZ, who says that key financial indicators show business confidence was stable for the month. “There remains a considerable amount of work around the rest of the country, supported by low interest rates. Dwelling consent issuance is still trending higher, nonresidential issuance is at record highs, and large infrastructure projects continue to be touted,” he says. For February, Bagrie says that the nationwide domestic economy continued to show resilience to

the pressures of falling commodity prices, with consumer confidence holding at decent levels. “Yes, there are strains, and ongoing falls in dairy prices are a clear reminder of the challenges facing an important sector of the economy.” He says that the tourism spend and solid overall consumer consumption trends are bolstering the economy. This translated to boosted sales of new cars in February, with last month’s total of 10,313 units sold made up of 7,152 passenger vehicles and 3,081 commercials. Sales across all sectors resulted in 457 additional units being sold for

NEW VEHICLE SALES BY BUYER TYPE - February 2016

the same month last year. There was also significant pick-up in the sales of new light commercial vehicles, with four-by-two, and fourby-four cab utes dominating the commercial sector with 2,284 units sold - an overall increase of 14.2 per cent from the previous year. Increased sales were also noted in the SUV segment, with 3,677 units sold. This is up on the previous year by 11.6 per cent. Total passenger vehicle sales for February came in at 3,475 units. This is down 8.1 per cent on the previous year and signals the continued consumer trend to larger-chassis vehicles. With several regions in the

country experiencing record highs, ANZ senior economist Mark Smith says that while the Canterbury region had plateaued in February, there had been significant quarterly increases in 14 regions and gains in consumer confidence in 13 regions six of which posted double-digit rises on the previous quarter. “For the first time in two years, all regions either held steady or had positive quarterly growth. “Car registrations and job ads point to the solid state of regional expansion,” he says. “Consumer sentiment has remained elevated in 2016, and net immigration inflows are strong.”

NEW VEHICLE MARKET SEGMENTATION - February 2016

Jan '16

Jan '15

Mth %

2016 YTD

2015 YTD

% YTD

Feb '16

Feb '15

Mth% diff

2016 YTD

2015 YTD

Passenger

3,475

3,842

-9.6

8,311

9,044

-8.1

Passenger

3,475

3,842

-9.6

8,311

9,044

-8.1

Private

1,620

1,595

1.6

3,209

3,229

-0.6

SUV

3,677

3,153

16.6

7,710

6,910

11.6

Business

1,696

1,932

-12.2

3,431

3,949

-13.1

Light Commercial

2,795

2,461

13.6

5,384

4,713

14.2

286

345

-17.1

621

700

-11.3

45.5

173

137

26.3

10,313

9,856

4.6

22,199

21,504

3.2

Gov’t

129

197

-34.5

328

327

0.3

Rental

118

-74.6

1,343

1,539

-12.7

SUV

Heavy Commercial Other Total market

% YTD

3,677

3,153

16.6

7,710

6,910

11.6

Private

1,668

1,274

30.9

3,284

2,614

25.6

Micro

144

178

-19.1

234

336

-30.4

Business

1,811

1,610

12.5

3,586

3,295

8.8

Light

1,074

1,194

-10.1

2,306

2,646

-12.8

Gov’t

27.1

112

117

-4.3

Small

1,300

1,452

-10.5

3,207

3,634

-11.8

Rental

137

221

-38.0

728

884

-17.6

Medium

450

535

-15.9

1,157

1,162

-0.4

Large

289

326

-11.3

846

914

-7.4

-26.3

60.9

Light Commercial

2,795

Private

2,461

13.6

5,384

4,713

14.2

786

603

30.3

1,473

1,203

22.4

1,873

1,716

9.1

3,593

3,281

9.5

Gov’t

3.2

182

168

8.3

Rental

-19.1

136

123.0

Business

Sub Total

Upper Large People Movers

13.3

15.5

Sports

170

108

57.4

405

235

72.3

SUV Small

995

914

8.9

2,051

2,084

-1.6

SUV Medium

1,392

1,139

22.2

2,943

2,648

11.1

1,243

1,070

16.2

2,596

2,100

23.6

56.7

120

53.8 54.1

9,947

9,456

5.2

21,405

20,667

3.6

SUV Large

Private

4,074

3,472

17.3

7,966

7,046

13.1

SUV Upper Large

Business

5,380

5,258

2.3

10,610

10,525

0.8

Light Buses

25.0

114

Gov’t

288

340

-15.3

622

612

1.6

Vans

461

430

7.2

804

802

0.2

Rental

205

386

-46.9

2,207

2,484

-11.2

Pick Up/Chassis Cab 4x2

899

832

8.1

1,726

1,551

11.3

286

345

-17.1

621

700

-11.3

Pick Up/Chassis Cab 4x4

1,385

1,159

19.5

2,740

2,286

19.9

Other

45.5

173

137

26.3

286

345

-17.1

621

700

-11.3

45.5

173

137

26.3

Total

10,313

9,856

4.6

22,199

21,504

3.2

10,313

9,856

4.6

22,199

21,504

3.2

Heavy Commercial

Call

Heavy Commercial Other Total market

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Daily sales show slight increase Access to new stock is not being reported as a significant issue for dealerships around the country. David Wills, dealer principal of Ruahine Motors, says his dealership has had a bumper February and attributes this in part to having access to new stock as required. He says new car sales activity in the short term is looking favourable with the launch of the new Ford Everest and predicts that this will have a positive impact on the yard. “The Everest, Ford’s large luxury SUV, comes at a really good time for us, although the Ford brand is already pretty strong at the moment.” Wills expects there will be an enthusiastic reception for the new model in coming months but is confident that stock levels will be sufficient to meet

expected demand. Looking forward to the remainder of March, dealers are largely positive that their yards will continue to be well-stocked. Jeremy Spicer, dealer principal of Manukau Nissan in Auckland, says March is already shaping up to be a good month for the dealership. “It’s coming up to yearend and that’s often when we experience a push in sales. The challenge then will be to replace new vehicle stock.” Spicer says February was not without its challenges sourcing some variants though stock was, by-in-large, adequate within the dealership’s new car division. New cars accounts for about two-thirds of the business. “We found ourselves a bit thin on the ground with the new Navara, but this is because of exceptional sales. We have

Dealer stock of new cars in New Zealand 48,524

- 12-MONTH AVERAGE

Days stock at hand

220

252

193

200

Mar ‘15

7,569

8,075

-506

48,018

252

191

Apr ‘15

7,746

6,373

1,373

49,391

252

196

May ‘15

9,395

6,843

2,552

51,943

253

206

Jun ‘15

8,297

9,021

-724

51,219

254

202

Jul ‘15

8,842

7,272

1,570

52,789

254

207

Aug ‘15

11,675

7,752

3,923

56,712

256

221

Sept ‘15

8,254

8,835

-581

56,131

258

218

Oct ‘15

8,619

9,634

-1,015

55,116

260

212

Nov ‘15

8,753

8,115

638

55,754

260

215

Dec ‘15

9,131

7,110

2,021

57,775

261

222

Jan ‘16

6,678

8,899

-2,221

55,554

260

213

Feb ‘16

7,246

7,191

55,609

261

213

13,924

16,090

-2,166

1.0%

1.9%

14.6%

more IMPORTED

more SOLD

MORE STOCK

marac.co.nz

160

February 2014 — February 2015

140 120 100 80 60

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Feb

JAN

Dec

Nov

Oct

Sept

Aug

Change on Feb 2015

180

JuL

Year to date

February 2015 — February 2016

Jun

115

DAILY SALES

APR

7,057

Stock

Mar

7,172

Feb ‘15

Variance

Feb

Registered

Days of stock

CAR Sales Imported

been selling around 120 cars a month across all models although the bulk of enquiry has centred on SUVs.” Spicer says an on-going issue with variants is customer demand for white vehicles because of the obvious ease white offers in terms of branding and sign-writing. He says black is also in strong demand. Meanwhile, new passenger car variants equipped with automatic transmissions are in high demand. “The split between automatic and manual has really grown in favour of automatic for us,” says Spicer. “You only have to look at Auckland traffic to know that you don’t want to be out in that in a manual. The other factor pushing uptake of auto over manual is the large number of first-time buyers.”

Days stock in NZ - new Cars

May

ew passenger vehicle stock levels remained consistent in February with a minimal one per cent increase in new vehicle stock numbers over the same month last year. The latest February statistics show 7,246 new passenger vehicles crossed the border last month compared to 7,172 in February last year. Stock levels did, however, increase over January totals by 55 units. Total stock numbers for February stands at 55,609. This is a 14.6 per cent increase on February 2015 statistics which recorded stock numbers at 48,524. The figures show average daily sales in February increased to 261 units – nine more than the corresponding period last year. However, the number of days stock remaining on hand has increased to 213 compared to 193 in February 2015.

Used stock levels rebound T

he total number of used cars imported last month was 11,972. This is a substantial increase over the same month last year of 2,009 units or a 20.2 per cent gain. February registrations of imported passenger vehicles increased by 11 per cent – up from 10,572 to 11,736 over the February 2015 period and a positive variance of 1,164 vehicles. Current stock levels now sit at 23,998 units and have increased by 48.1 per cent or 7,796 units over the past 12 months. The number of days stock is at hand is 61, meaning that if no further stock of used cars were imported into New Zealand there would be sufficient stock at current sales levels to last 61 days. This compares to 44 days in February 2015. Averaged out over the past 12 months, 396 used cars are sold in New Zealand each day. This is 30 units more than this time last year.

Meanwhile, used imports are still hard to come by with dealers widening their net to source good quality stock required to keep dealership yards full. In Nelson, sales activity has been buoyant, according to Ryan Durry of Quay Cars Ltd. He stocks a range of used imported vehicles and buys in vehicles from around the country to meet stock orders. “We had a record month, which is not the norm. February is a month that can be a bit up and down. In fact, this February is the best February we’ve had since I started in 2008.” He says there is no one factor that contributed to record February sales, although he says he has been more discerning on what he buys and stocks on his yard. “We had a bit more time to spend on acquiring the types of cars that sell well for us. The Nissan Tiida is in big demand, and we have now expanded the yard in

order to carry a few commercials, four-wheel-drives and utes.” Durry says finding good second-hand vehicles is challenging, especially the more popular makes and models. “We try to have a good range on the yard including New Zealand-new vehicles and fresh imports because there is still a good market for these. We import about 10 to 15 units a month but most of our vehicles are locally sourced.” Durry says that the strength of trade in February has also boosted interim figures in March, with a bumper month predicted. “March is looking like it’s going to break some records for us, which is a big change from two years ago when we had the worst March we’ve ever had. One of the reasons for this is that we are sending cars all over the country, as far north as Kaitaia and as far south as Invercargill. “The cars we tend to sell to

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180

Imported

Feb ‘15

160 140

100

February 2015 — February 2016

60 40 February 2014 — February 2015

marac.co.nz

Feb

JAN

Dec

Nov

Oct

Sept

Aug

JuL

Jun

May

APR

Mar

Feb

Days of stock

120

different regions are not your everyday imports. They are models like the Toyota Hilux Surf, which can be hard to source with low mileage.” Durry says the used market remains highly competitive and finding quality stock is one of the key challenges for dealerships. “We’re about 85 per cent stocked at present and getting back to preChristmas levels.” He says finding good vehicles over the Christmas period is tough and this carries through into the early New Year. Hastings-based Stortford Auto Sales dealer principal Brendon Vesty says that he too has struggled to find good stock and suggests dealers will have to broaden their scope to better meet customer demand. “We’re prepared to get in what people want, whether it be an SUV or a people mover and there is no shortage of demand for these types of vehicles.”

9,963

Registered

10,572

Variance

-609

Stock

16,202

DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

366

Mar ‘15

14,964

12,313

2,651

18,853

372

Apr ‘15

16,155

11,038

5,117

23,970

376

May ‘15

14,531

12,415

2,116

26,086

379

Jun ‘15

12,864

12,415

449

26,535

384

69 63

Jul ‘15

11,944

13,891

-1,947

24,588

389

Aug ‘15

12,129

12,061

24,656

391

Sept ‘15

8,673

11,667

-2,994

21,662

392

Oct ‘15

12,381

11,149

1,232

22,894

393

Nov ‘15

12,379

11,732

647

23,541

393

Dec ‘15

14,725

12,598

2,127

25,668

394

Jan ‘16

9,769

11,675

-1,906

23,762

393

Feb ‘16

11,972

11,736

236

23,998

396

Year to date

21,741

23,411

-1,670

Change on Feb 2015

20.2%

11.0%

48.1%

more IMPORTED

more SOLD

MORE STOCK

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