Autofile Issue 19-2013

Page 1

The trusted voice of the auto industry for more than 25 years Issue 19-2013 19 October 2013

Agency takes action on Aussie write-offs T

he NZTA is taking action to mitigate any risks posed by about 500 statutory writeoffs imported from Australia since 2011, some of which may be cases of insurance fraud. Thirty of them have so far been reinspected in this country because they weren’t picked up as damaged during border inspection or entry certification processes. Five cars required some repairs to be roadworthy, although none were ordered off the road. Now all imports from across the

Tasman must be accompanied by an Australian Personal Property Securities Register (PPSR) check. This measure came into effect on July 1 to ensure any vehicle identified as a statutory write-off is flagged on the NZTA’s database and must then be referred to a repair certifier for assessment. The NZTA wants the industry to be aware of what has been happening so importers and dealers can try to avoid the pitfalls of trading with these sorts of vehicles. “I would say 95 per cent come

from New South Wales with varying degrees of being written off, with most of the rest probably from Queensland,” says Bill Hyslop, senior engineer for operations support with the NZTA’s access and use team. “Some have hardly any damage and could be cases of insurance fraud in NSW, so our information is going back to the authorities in Sydney to check for criminal activity.” Some traders in New Zealand have bought the write-offs back from customers, while other buyers

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Trade gets behind website

A

utofile’s new website is now online – it has been a long time coming, but we hope it’s worth the wait. The site was officially launched at John Andrew Mazda’s showroom in Grey Lynn, Auckland, last week. The website, which can be found at www.autofile.co.nz,

boasts a directory to provide car dealers with all of the services they

need to conduct their dayto-day business. There will also be industry news online to compliment what’s published in the magazine, while there are job listings and plenty of opportunities for our advertisers to come on-board.

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editor’s note

Time to ditch political apathy

I

t’s often said that politics is a funny business, but there’s nothing amusing about voter apathy in the last round of localbody elections. But what has got people talking is how Len Brown was exposed by his ex-mistress and a blogger only a few days after she failed to get voted onto a local board and Auckland’s mayor was re-elected. What’s incredulous by comparison is that prime ministers have got away with lying to the nation, while MPs with seedy pasts leave the limelight for a while before being allowed back into it. What’s worse? Brown having an affair, John Key being liberal with the truth in the Dotcom fiasco or Shane Jones running for the Labour leadership after being caught watching porn movies in a hotel room and charging this to his taxpayer-funded credit card? There being no credible alternative to Brown to vote for was a shocker, but no one can claim he doesn’t have a mandate unless he now quits and whoever wins in Auckland in the general election will take the Beehive. Key and David Cunliffe know that. In our biggest city, there will be more ructions in the private car versus public transport debate but is there a place for politics in the motor vehicle industry? Well, apathy in any sector towards the powers-that-be is akin to putting heads in the sand. But many people just shrug their shoulders when policies of any colour of government go through. After all, there are better things to worry about, such as tide times for fishing and sailing, working out if there’s enough gas in the barbecue bottle, feeding the chooks, or how mediocre the

Warriors and Highlanders were last season. But decisions made by politicians on a local and national level affect the industry. They are damaging or have positive effects. Either way, the outcomes tend to be long-lasting. It may be the Greens looking to reduce car use, introduce its “feebate” scheme based on vehicle emissions at time of import or opting for in-service tailpipe testing. Or Labour bringing in more ineffective “environmental policies” to keep more polluting used vehicles out of the country but simply choking off supply. Or National with the Vehicle Licensing Reform, which has courted controversy over the warrant and certificate of fitness regimes while not bothering to tackle registration or transport services licensing, all justified with a slogan along the lines of “savings costs without reducing safety”. Or all political parties that are behind cross-bench legislation meandering through parliamentary processes. This includes the Consumer Law Reform and its changes to the Consumer Guarantees Act, which will change how the automotive sector operates and bring in more protection for the public. Politics and the politicians aren’t going away, but the only folk to regularly stick their heads above the parapet seem to be Maori on hikoi and students on mini riots. Perhaps everyone needs to shrug off the apathy because the standards of those elected to serve us at all levels appear to be going downhill fast. Darren Risby Editor

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special report [continued from page 1]

Cashing in dodgy imports have received compensation for loss of value. About 30 per cent of the original sellers contacted by the NZTA “weren’t interested in the matter”, and others were third parties because cars went from the importer to a dealer and then onto the final buyer. “We have a profile on who is importing statutory writeoffs from Australia, and they are certain individuals and companies,” says Hyslop. It’s estimated 40 per cent are being imported by individuals with the remainder using company names. “In most cases, we think they’re deliberately buying write-offs because there’s a big difference between what they were bought for over there and what they can get them for in New Zealand.

“By law in Australia, statutory write-offs cannot be registered for on-road use again so they only have parts value. If they end up here, they have much higher values.”

APPLYING DIFFERENT RULES

These – as well as vehicles damaged in staged accidents – often become “rebirth cars” in the hands of criminal gangs, especially in Sydney. With repairer write-offs, a vehicle worth $20,000 before a crash may be bought at auction for as little $3,000 to $5,000. A similar one is then stolen

States in Australia have two or three categories of damage on its Written-Off Vehicles Register. One is for damaged cars that are economical to repair after, for example, being involved in lowspeed crashes. They are written off and sold as damaged, but can be fixed and registered again. – Bill Hyslop, NZTA Then there are statutory write-offs. These are caused with its street tags and identifiers by serious damage – for example, removed and replaced with those because of high-speed collisions – from the written-off car. and they can never be reregistered.

“We have a profile on who is importing statutory write-offs from Australia.”

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Another scam is to repair writeoffs with parts from stolen vehicles. NSW now classifies everything as a statutory write-off, but before state law was changed they could fall into this category or be classed as repairable write-offs. This has eased the problem with hot cars in the state, although it means if salvage repairs cost more than $4,000 or $5,000 they are no longer repaired for the domestic market. Some vehicles repairable under the previous regime are being fixed up cheaply before being shipped to New Zealand, the Middle East and elsewhere. Other states have yet to follow NSW’s lead, but writeoffs from Queensland are ending up in Sydney for registration.  Australia’s dodgy vehicle


special report  market is focused on NSW due to volumes, and it’s where many of these criminals and their networks are based. Some industry experts fear more write-offs may come into this country from NSW because New Zealand has been identified as a market for them.

UNCOVERING THE PROBLEMS

CASE IN POINT: A 2008 Holden Captiva, which was a statutory write-off, was bought at an auction in Australia for $6,000. The importer sold it to a Kiwi dealer for $28,000, who then sold it to a customer for $33,500 write-offs, it obtains a report from NEVDIS detailing the reasons why it was a write-off in Australia so the Kiwi owner is aware of the vehicle’s history.

CASE HIGHLIGHTS ISSUES A Motor Vehicle Disputes Tribunal hearing on August 5 this year, which was reported in-depth in the previous issue of Autofile, puts action taken by the NZTA into a real-life context. Kate Mathers bought a 2008 Holden Captiva from Stortford Auto Sales Ltd in Hastings on May 26, 2012. The NZTA wrote to her on September 18 to say the NSW Road Transport Authority had it listed as a statutory write-off. After an inspection found no serious damage, the NZTA told Mathers no action was needed but the flag would remain. On June 28, the NZTA said it would record it as a write-off on an NZTA website and take the imported-damaged flag off to remove any doubt about condition of vehicle when imported. The trader understood the car was damaged and or parts were removed in Australia, but checked it wasn’t listed as a damaged import. Director Brendon Vesty saw the Captiva for sale in Auckland in March 2012. He spoke to Ravend Kishore, of Pacific Motors NZ Ltd, which imported the car. He had purchased it for his wife. Vesty decided to buy it from Mrs Kishore after agreeing a price

of $28,000 with Mr Kishore. Mathers said the trader “risked buying a car imported by a dealer who sold it in his wife’s name,” which “should have alerted Vesty the so-called private sale wasn’t what it seemed”. The tribunal ruled the trader unintentionally misled the buyer

and the reduction in value was 13.5 per cent of the purchase price, so it paid Mathers $4,500. The NZTA says the Captiva was bought for $6,000 at auction in Australia and was sold to Mathers for $33,500. It had been stolen and recovered with every exterior panel and the interior damaged.

[continued on page 6]

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Bill Hyslop says the cost of dealing with Australian write-offs has been huge and the NZTA didn’t anticipate the amount of work it’s facing. The issue first came under scrutiny at an annual meeting of the International Organisation of Automobile Theft Investigators in Sydney in April 2012. “This is when we found out about a change in the rules for statutory write-offs in NSW, but other states are unprepared to change their rules so they’re in-line with NSW,” he says. In May 2012, some Kiwi franchise agents made the NZTA aware of two new vehicles that were written off across the ditch but were now on the road here. “We had no information on the write-offs at that stage. On investigation with our contacts in Australia, we found they were water damaged.” The vehicles got through inspection processes without being identified as written off and it wasn’t clear at the time how widespread the practice was. Towards the end of last May and through April, reports on imports started to come through from the National Exchange of Vehicle and Driver Information System (NEVDIS) in Sydney. The NZTA then sent a list across the ditch to data match for write-offs. “From that list there were a few more than expected and they’ve been coming in since then,” says Hyslop. “There are now about 500 on the list that we’ve identified since 2011. “About 60 per cent have been involved in collisions and around 40 per cent are water damaged.” When the NZTA becomes aware of one of these statutory

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special report [continued from page 5]

Inspector’s process probed GETTING BACK ON TRACK Between January 30, 2011, and April 2013, some vehicles went through the NZTA’s system without being recorded as write-offs. “It’s possible some were stolen or rebirth vehicles in that they were wrecks with stolen cars’ details and were made to look like they had never been in a crash,” says Bill Hyslop. There were 30 vehicles identified in the NZTA database that hadn’t been identified as previous write-offs. It was decided to recall these units and have them reinspected to verify why they weren’t identified as write-offs and sent to repair certifiers. Of the 30 vehicles reinspected, 24 had evidence of previous repairs but of a high quality that would have made it difficult to detect by entry inspectors. The remaining six revealed

evidence of structural repair or damage that should have been detected by the entry inspectors. The NZTA is now investigating why the entry inspector didn’t identify these vehicles and refer them to a repair certifier. Initially, all the imported writtenoff vehicles were flagged in the NZTA database as “imported damaged”. For some vehicles the importeddamaged flags were removed if they were not damaged at the time they were imported. “However, all of the writtenoff vehicles have now been added to the NZTA website list, which is available to companies that provide vehicle condition reports, such as MotorWeb and CarJam,” says Hyslop. “In Australia you can access information to find out if a car has been previously written off or

Bill Hyslop, senior engineer for operations support with the NZTA’s access and use team

stolen. It costs $4 to get this online. Every Australian import now needs to have a PPSR report.” From July 1, 2013, and as a consequence of the NZTA’s investigations, a new process for all used vehicles from Australia was introduced to ascertain if they had been statutorily written off across the ditch.

If the vehicle is identified as a “statutory write-off”, it’s flagged in the agency’s database and must be referred to a repair certifier to be assessed. The NZTA is confident that processes for border inspection and entry inspection systems are robust, and will identify vehicles with potential safety-related defects. To ensure consumers have access to appropriate information, it has updated its damaged vehicle website list to include all imported used vehicles identified as statutory write-offs in their country of origin. The NZTA’s list is also provided to companies such as Motorweb and CarJam so buyers have access to this information if they request a vehicle history report.

Abridged story first appeared online at autofile.co.nz on 17/10/13. Visit the site for more news

Dealers need to take all precautions M

otorWeb, the vehicle information authority, strongly advises dealers to check to ensure cars they purchase wholesale aren’t write-offs. Greg McQuaid, sales and business development manager, can see problems existing as long as Kiwis insist on buying cars from Australia at what must seem to be prices that are too good to be true – and we all know what follows that comment. “You’ve got to ask questions about that source because it’s not the next Japan or Singapore,” he says. “The legislation changes in NSW have created a drive to offload now unsaleable vehicles to New Zealand. “Buyers – both trade and private

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– need to smarten up to this because motives for doing this may be purely to supply cheap cars but there’s a reason they’re cheap. “Dealers should check cars when buying wholesale to ensure

details about write-offs there when the same vehicles often show up as clean as a whistle here. “We have had discussions on both sides of the fence and these are on-going.”

“Legislation changes in NSW have created a drive to offload unsaleable vehicles to New Zealand.” – Greg McQuaid, MotorWeb

they aren’t unexpectedly ending up with these vehicles because we will flag them in MotorWeb.” The company can access information in Australia to view

McQuaid believes the main reason to import from Australia in volume would be the need to find another market. But New Zealand already has

established markets in Japan, so there must be other reasons. “Australia’s PPSR flags vehicles as write-offs, but people intent on sending them here may find a way to get around it,” he told Autofile. “The PPSR will work in the short term, but in the long term they will figure a way around it because if demand continues, they will supply. “The authorities over there know about these vehicles, but once they leave the country they’re no longer Australia’s problem. “Perhaps the authorities in both countries could share their information with each other better, but there’s no easy solution to this problem.”

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news

Helping out across the Tasman M

embers of the used vehicle import industry in New Zealand have attended the annual conference of their counterparts in Australia to exchange advice and experiences. The Registered Automotive Workshop Scheme (RAWS) Association’s members are importers and provide compliance services for cars on the Department of Transport and Regional Services’ list of specialist and enthusiast vehicles, which are mostly Japanese and American. They ensure laws and regulations for safety and emissions are met on eligible vehicles. They also provide compliance and modification services in accordance with Australian Design Rules applicable to imports and under conditions applied to RAWS vehicles. David Vinsen, chief executive of

the Imported Motor Vehicle Industry Association (IMVIA), was invited to the conference in Canberra from October 10-11, which was also attended by representatives of AUTOHUB and JEVIC.

direction and some background on how we operate.” The event was a good contactbuilding exercise, with members of the Australian Motor Industry Federation and state Motor Trade

“Australia has a limited market with used imports.” – David Vinsen, IMVIA “I spoke about the history of the IMVIA and how it has been associated to used imports, our maturing relationship with the government and volumes of vehicles arriving,” Vinsen told Autofile. “We gave some general guidance, encouraged them on how important governance is, how necessary it is to have a clear

Associations attending. “It was very useful – not so much as anything they do, but more to do the New Zealand experience,” says Vinsen. “We encouraged them to think more laterally. That advice was repeated and encouraged by government officials who attended.” Kiwi issues covered included

processes around importing used vehicles, seatbelt and emissions rules, and other major matters. “Australia has a limited market with used imports and they must comply with their standards,” explains Vinsen. “We advised them to organise themselves, always be properly prepared, never assume, and have proper advocacy and representation. “RAWS is interested in expanding a bit. It could change a lot if there’s a move from a manufacturing to import industry. “That prediction was inferred by the government. This has awoken their interest and alerted them to the possibility of the market changing. “We’re way ahead of Australia because New Zealand has pioneered importing used vehicles and has a mature supply chain.”

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Duties include but are not limited to: • Achievement of sales targets for your sales team and the overall group • Securing required market share from fleet and private buyer markets • Ensuring adequate personnel resource across the branch network • Actively developing new business both at a branch level and across branch networks • Working with Sales Personnel to enhance individual and group sales performance • Actively closing deals • Leading from the front in business networking, carving a path for others to follow • Effective use of marketing budgets to achieve sales goals A full job description is available on request. Applicants should possess a retail automotive background and advanced Sales Management skills. Strong organisational ability, good IT skills and knowledge of new and used vehicle sales processes are all required. New vehicle fleet sales exposure is also desirable. Vacancies such as this are rare in NZ; all the more so given that Toyota has been the number 1 new vehicle choice for New Zealanders for some 27 years. The substance of the employer group coupled with the challenge and reward on offer identifies this vacancy as one of the best to emerge this year.

The closing date for applications is Tuesday, 5 November 2013 at which time all applications will be processed. Click the apply section of this ad and submit your resume online. Alternatively: Email russell@automotiveemployment.co.nz or daryl@automotiveemployment.co.nz to request a vacancy link to upload your resume or request a job description. Please ensure you include the job title you are applying for and the reference number provided. Further enquiry can be made by phone: NZ callers phone Daryl Feast or Russell Phillips Freephone on 0800 67 57 47. International applicants should call +64 9 271 3200.

www.autofile.co.nz | 7


news

Appeal against ruling mooted M

otor Trade Finances Ltd (MTF) says it’s lodging an appeal against a High Court judgement that some contract fees were unreasonable. It also considers “the narrow basis for the finding doesn’t recognise normal commercial practice”. The Dunedin-based company adds: “The finding didn’t acknowledge borrowers would have paid higher interest rates to recover costs not recovered through fees and suffered no loss.” The High Court rejected Commerce Commission claims that MTF and Sportzone Motorcycles failed to properly disclosure components of credit fees payable under some contracts. The High Court rejected other aspects of the commission’s allegations that MTF and Sportzone failed to make proper disclosure of

components of credit fees payable under the loan contracts. The charges, laid under the Credit Contracts and Consumer Finance Act (CCCFA), related to fees charged in 39 loan contracts originated by Sportzone, which is now in liquidation, between May 2005 and July 2008.

disclosure, and its allegation of misleading and deceptive conduct. “MTF considers the approach taken by the High Court to determine whether a fee is unreasonable is significant for the consumer lending industry generally. “It may remain significant despite the current legislative

“The judge has called for the parties to make further submissions if necessary.” – Motor Trade Finances Ltd “The judge has called for the parties to discuss quantification and to make further submissions to the court, if necessary,” MTF says in a statement to the NZX. “MTF is pleased the court rejected the commission’s allegation of failure to make proper

process, which may amend the CCCFA. MTF intends to appeal that aspect of the judgement. “As the matter remains before the courts, MTF will not be making any further comment.” The judgement follows a trial in November 2012.

FUNDING IN PLACE MTF has confirmed $305 million of funding supported by the Commonwealth Bank of Australia and Westpac NZ Ltd. The announcement included extending the expiry date to August 30, 2015, for its securitisation programme, which began in November 2010. On July 9, Standard & Poor’s affirmed the AA long-term structured-finance rating to warehouse notes issued by Trustee Executors Ltd. The rating affirmation follows the extension of the revolving period and change to the notes’ legal final maturity date to August 30, 2021. The trust has capacity to fund up to $370m of consumer credit and finance lease contracts on motor vehicles originated by MTF transacting shareholders.

Letter to the Editor

Deaths put into context In issue 16 of Autofile, Mike Mapperson asked some questions about deaths from traffic pollution to put them into context with road deaths, which I may be able to answer. Last year, an update was released on the costs of air pollution on health. Visit www.hapinz.org.nz for the Updated Health and Air Pollution in NZ Study –

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volume one, summary report. This study found pollution from motor vehicles is associated with 256 premature deaths per annum versus 393 deaths for road accidents a year, based on the 2006 census data. The health impacts are a function of the emissions and number of people exposed. Since 2006, significant improvements have been made in fuel quality, especially diesel sulphur levels, and exhaust emissions requirements for vehicles entering the fleet. Roadside monitoring of “real world” emissions has found mean emissions have significantly improved with emissions

standards for petrol vehicles, but trends are less conclusive for diesels. Trends in Light Duty Emissions 2003 to 2011, Technical Report 2012/032, can be found at www.aucklandcouncil.govt.nz. Although data shows emissions have declined, the improvements haven’t been as great as we would have expected from the differences between test limits, such as going from say Euro 3 to Euro 4. The HAPINZ study was due to be repeated in 2013 using the 2011 census data, but the census was postponed due to Christchurch’s earthquakes. The latest information won’t be available until late 2014. It will be interesting to see if actual improvements in emissions since 2006 will be sufficient to offset the population growth and result in lower air pollution health impacts from vehicles. Dr Gerda Kuschel, director and senior technical specialist, Emission Impossible Ltd, Auckland

Email your letters, news and views to editor@autofile.co.nz. Please include your full name and daytime contact details.

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new cars

Trend gets drivers in-sync F

ord’s new Fiesta comes with fresh looks, technology to keep drivers connected and two engine choices. It boasts a new exterior and an interior optimised for ergonomics, as well as the marque’s hands-free SYNC system. The front is dominated by a trapezoidal front grille bracketed by laser-cut headlights and the powerdome hood has the badge inlaid. The tail-lights have more detail, there’s a new rear spoiler and 16inch alloys are available. The dashboard and leather steering wheel with audio controls amplify the interior. It features a high-gloss finish for the upper panel that flows to the lower centre console. A satin-chrome detailing finish is offered, with ice-blue lighting for dials, switches and displays.

The SYNC system debuts in the Fiesta. It offers hands-free, voice-activated in-car connectivity with cellphones and media players, including Bluetooth. It also enables smartphone users to answer calls and select music from devices connected via Bluetooth or USB by using voice commands. The hatchback has a 1.5-litre Duratec twin independent variable camshaft timing four-cylinder petrol engine. It delivers 82kW of power at 6,300rpm and peak torque of 140Nm at 4,400rpm. The technology allows precise, variable control of “valve overlap” – the window of time in which the intake and exhaust valves are both open for

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better low-speed torque and fuel economy. The 1.5-litre engine can be paired with a six-speed automatic transmission or five-speed manual gearbox. The Fiesta is also available with the one-litre EcoBoost engine. Its three cylinders combine direct fuel injection, turbocharging and variable valve timing to produce 92kW of power and 170Nm of peak torque. It’s available with EcoMode, which measures gear shifting where

applicable, anticipation and speed. Drivers with fuel-efficient skills are rewarded in the form of leaf icons on the cluster. Safety features include dynamic stability control and anti-lock brakes with brake assist, rear-parking sensors and hill-launch assist. The Fiesta Trend 1.5-litre manual is $23,990 and the automatic costs $25,490. The Sport arrives in January. The one-litre EcoBoost manual will cost $27,340 with the automatic priced at $28,840.

The new Fiesta Trend

Design flair from Europe

K

ia’s Cerato sedan has been joined by its hatchback sibling with “more practicality and sportsorientated design flair” and the choice of two engines. Designed at the marque’s design centre in California, the five-door shares the same forwardcab styling as the sedan, but has European-inspired elements. These include the integrated rear spoiler that extends the roofline and helps keep the rear glass cleaner, and wraparound rear-light clusters. A high-compression, directinjection two-litre GDI CVVT engine is reserved for the range-topping SX model. It delivers 129kW at 6,500rpm and 209Nm of torque at 4,700rpm. The 110kW 1.8-litre DOHC CVVT engine is standard for the LX

and EX, and is an option with the SX. The suspension is tuned to match local handling characteristics, so it’s better suited to Kiwi road conditions. Its geometry has been modified for improved steering, while the new electronic Flex-steer system has a choice of comfort, normal or sport modes. For the first time in the Cerato, sat-nav is standard in the SX with SUNA live traffic update technology, which provides real-time information from the Auckland, Wellington and Christchurch regions. The Cerato hatchback starts at $29,990 plus on-road costs. The five-door Cerato SX hatchback


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website launch

Connecting industry online A

utofile’s philosophy will continue with its website – and that’s to do our best to understand and engage our industry. “The great thing about this space is you never actually get to the end,” says publisher Brian McCutcheon. “The flexibility and lack of boundaries the online environment presents make the options endless.” Autofile’s new online strategy is developed around delivering a central location, which helps motor vehicle dealers conduct business. “We want dealers to log onto www.autofile.co.nz in the morning and stay there,” he says. “Any business they need to do should be available through our portal. “To do this we must provide access to day-to-day services, so we’ve put together an industry directory with three categories – buying, selling and managing.” Within those categories, Autofile links dealers to service providers so the directory effectively follows the supply chain for all business areas. For example, if you’re buying a vehicle the first question is where from? When you know what country you’re purchasing in, what services do you need to complete the deal and get it back to the yard here? The same principal applies to selling – services include adding accessories, finance, warranty, insurance and seeing the car has clear title, among others. “The internet has standard advertising formats, but the most exciting thing about the web is you can tailor marketing right down to the person who’s interested in that product or service at that time,” says McCutcheon. “To buy a vehicle from Japan, you may need to arrange finance, foreign currency, find an agent or buying conduit, get the vehicle inspected, insure it, ship it, clear it, transport it and comply it. “Some companies will provide one of these services and others may

12 | www.autofile.co.nz

My Finance’s John Webber with Russell Phillips and Daryl Feast of Automotive Employment

Jacanna’s Leah Booth and Ken Quigley with Brian Chadbourne of Armacup

John Davidson of MTF Waitakere and Ray Meharg of Protecta Insurance

Adam Toomer of Auto-IT, Gareth Karrasch of 317 – the van and ute specialists, Paul Brown of John Andrew Ford and Mazda and Peter Collins of 317

David Paviour of Autoport, MotorWeb’s David Boshier and David Vinsen of the IMVIA

provide the whole package. There are, of course, different pathways to buying in New Zealand.” Autofile online will also deliver what’s of interest to the industry. “Relevant stories will be posted online, from hard news to lighter articles,” explains McCutcheon. “It will be fresh and relevant. “We will communicate with

Colin Marshall and Walter Rands-Trevor, of Protecta Insurance

dealers in a variety of ways, from email to social media. If you haven’t been contacted yet, simply log onto www.autofile.co.nz and email us a subscription request. “When we do communicate, it will be in the way you instruct us to – we won’t be spamming the industry.” In addition to news and the directory, the website aims to

showcase opportunities on its job board. “There’s no intention to cease printing Autofile. We have more support for the magazine than ever before, so stopping or reducing it wouldn’t make sense. “We will slightly change the printed version so we don’t clash with the website. “We see these as two different mediums and they should be used for their strengths. “The magazine will continue to provide what we’ve become respected for and that’s in-depth reporting on relevant issues facing the trade. “People are happy to talk to us because they know they will not be taken out of context. That’s important to us.” Visit www.autofile.co.nz to find out more.


www.autofile.co.nz

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regional report

Census highlights good times N

ew Zealand’s first census for seven years has found Nelson’s regional council area grew faster than any other outside Auckland. Part of the reason could be the exodus from Christchurch, where numbers have dropped by two per cent because of the earthquakes in 2010 and 2011. And there’s a feeling in Nelson that ex-pats have returned to contribute to its new total of 46,437 residents, which is up by 8.3 per cent. Kim Dunstan, senior demographer at Statistics NZ, says Nelson, Queenstown and Dunedin appear to have gained people from the Garden City, but it’s too soon to say if this will be reversed as Christchurch rebuilds. The long-term projections indicate Nelson and Tasman, along with Otago and Canterbury, are

WE TRANSPORT • MOTOR VEHICLES • FARM TRACTORS

likely to see further increase over the next 20 years. There’s a saying “provide jobs and people will come”, and there’s little doubt Nelson is booming. Its economy is based on seafood,

“It’s all about multipurpose vehicles and lifestyle choices.” – Tony Bowater, Bowater Toyota

horticulture, tourism and forestry, while Port Nelson is the biggest fishing port in Australasia. Growth industries include engineering and information technology. Recent good news includes 200 specialised workers about to join Nelson’s marine engineers when

p: 0800 4 JEFFS e: vehicles: service@jeffs.co.nz pleasure craft: boats@jeffs.co.nz w: www.jeffs.co.nz

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14 | www.autofile.co.nz

the MV Raroa, of Maari oilfield operator OMV NZ, gets refitted. Supreme Biotechnologies wants to triple its size in the $300 million supplement market, while more cruise ship arrivals are expected.

CONFIDENCE IN FUTURE With so much positive news and the census showing thousands of people relocating to Nelson, Tony Bowater, chief executive officer of Bowater Toyota, is upbeat. “I’ve got a feeling something really big is about to happen because of the optimism here,” he told Autofile. “I’m confident about the future and it’s challenges. That’s what we’re doing at Toyota. It’s about continuous improvement and that’s never been a stronger factor than now.” Bowater, a third-generation family member who grew up locally, believes Nelson is unique in having so many key primary industries when other centres rely on one. He sees that as a good thing, which “helps to keep us stable”. “We have plenty of diversity with the Cawthron Institute. A lot of work goes through there and it invests huge amounts in its facility.” As New Zealand’s largest independent science organisation, its services help protect the environment and support sustainable development of primary industries.

On top of that, Port Nelson is attracting more freight, while the pine industry and Sealord are boosting the economy. “The census news was pleasing and we’re looking forward to its effect on our industry. We’re seeing growth year on year and we’re confident growth will continue.” The Bowater Motor Group, which started in 1947, has diversified into the area’s largest vehicle company. Its Toyota franchise has branches in Nelson, Richmond and Motueka. Then there are the Honda, Hyundai and Isuzu franchises and the light commercials centre. Its service station in Motueka used to be a Shell. Now it’s one of the country’s few independently owned Z stations. “My prime concern is Toyota, it staying as number one and getting stronger,” says Bowater. “It’s rewarding being part of that. But the market’s always changing and what people will be buying in five to 10 years’ time will be different. We need to maximise opportunities. That’s what we’ll focus on.” Last month, Nelson saw an eight per cent rise in new car sales from 83 to 90 compared to September 2012. New commercials rose from 44 to 54 sales, or by 23 per cent. “SUVs are dominating our market,” says Bowater. “Sedans are less competitive here. People expect more from their cars instead of just going from A-B and SUVs offer a safe and quiet ride with high seats. “We invite people to experience the Hilux in off-road environments and these events are always popular, so it’s about multi-purpose vehicles and lifestyle choices.” Bowater hopes Nelson’s growth 


regional report

Used Car sales FOR Nelson Trader to Public to Public to Public Public Trader

Did you know?

- Sept 2012 to Sept 2013 Total

Trader to Public to Public to Public % Public % Trader %

Sept ‘12

298

763

195

1256

Oct ‘12

287

868

184

1339

13.7%

64.8%

21.4%

Nov ‘12

317

917

205

1439

14.2%

63.7%

22.0%

Dec ‘12

324

774

222

1320

16.8%

58.6%

24.5%

Jan ‘13

332

879

246

1457

16.9%

60.3%

22.8%

Feb ‘13

312

801

268

1381

19.4%

58.0%

22.6%

Mar ‘13

297

917

255

1469

17.4%

62.4%

20.2%

Apr ‘13

332

901

249

1482

16.8%

60.8%

22.4%

May ‘13

363

995

269

1627

16.5%

61.2%

22.3%

Jun ‘13

281

859

185

1325

14.0%

64.8%

21.2%

Jul ‘13

316

937

262

1515

17.3%

61.8%

20.9%

Aug ‘13

318

929

246

1493

16.5%

62.2%

21.3%

Sept ‘13

326

839

243

1408

17.3%

59.6%

23.2%

3805

10616

2834

17255

16.4%

61.5%

22.1%

Annual total Increase on Sept 2012

National YTD average

9.4%

10.0%

24.6%

 will continue. He would like to see 50,000 people moving into the region, but recognises many people wouldn’t be so keen on that. “We need to look at the type of people moving here. There are many ex-pats returning because it’s a safe place to raise children. “We need to keep the growth and appeal in the motor vehicle environment, and that’s why we’re involved with the chamber of commerce and economic development agency.”

POSITIVE CONDITIONS Paul Dowell is the owner and director of Dowell Wholesale Cars. He established the business in 2009 and has 28 years’ experience in the industry. His stock mostly falls under the $20,000 bracket, and is later-model NZ-new cars and light commercials. Generally trade has been good and, in regards to the census, Dowell reports many English immigrants arriving over the past year or so. “They are great to deal with because they have plenty of

12.1%

18.7%

56.4%

24.9%

money, they’re here to buy a car and don’t mess around much.” He describes Nelson as a good spot to live and work in. “We’re isolated and that’s what makes it so special, but the huge prices of houses are the downside. “They’re far from cheap, but the peculiar thing is that this is an award-wage town and the money some people get paid is pretty poor. “Fishing and forestry are performing well, so this place is about average Kiwis and industries going good. “The one thing I’ve noticed about Nelson is there’s not a lot of doom and gloom around the place.” As far as the car industry goes, Dowell says many local dealers are into the Japanese import market, but he wanted a point of difference with NZ-new. “I’ve noticed some people not buying diesel cars, especially with the registration and road-user charges shooting up. “There seems to be this view of ‘we might as well buy petrol’, except from the traders who are still going for diesels and will never change.”

There’s evidence to show that Nelson and Marlborough had the earliest settlements in Aotearoa – about 700 years ago. Lord Nelson’s motto was “palmam qui meruit ferat”, which is also the city’s. It translates as “let him, who has earned it, bear the palm”. The first rugby union game in the country took place at Nelson’s Botanic Reserve on May 14, 1870. Nelson Football Club beat Nelson College by two goals to none.

VEHICLE SALES IN CITY - Sept 2012 to Sept 2013 Used cars

Sept ‘12

New Cars Used Comms New Comms

92

83

14

44

Oct ‘12

77

73

8

26

Nov ‘12

84

76

8

47

Dec ‘12

104

60

7

29

Jan ‘13

98

94

11

40

Feb ‘13

89

80

6

36

Mar ‘13

101

72

5

52

Apr ‘13

107

100

2

38

May ‘13

128

88

5

54

Jun ‘13

112

86

5

82

Jul ‘13

141

80

10

50

Aug ‘13

108

100

8

51

Sept ‘13

122

90

10

54

Annual total

1271

999

85

559

Increase on Sept 2012

33%

8%

-29%

23%

While used car sales in Nelson showed a 33 per cent increase in September compared to the same month of last year – up from 92 to 122 units – used commercials dropped from 14 to 10, or 29 per cent. “Used commercials are a tad slow at the moment,” says Dowell.

“I was speaking to a dealer in Dunedin recently and he was finding this same thing. “But that's what I love about this job. You don’t know what will happen from one week to the next. If I knew all of the answers, I would be a wealthy man.”

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Vehicles wanted

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WE PURCHASE NZ NEW CARS AND COMMERCIALS FOR ALL OUR FRANCHISES

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Buying: Vans, Utes, Light Trucks. Nationwide. Contact Gareth 021660180

Mitsubishi’s call centre team in Porirua has beaten DB Breweries, Marley NZ and Yellow to scoop the top prize at the CRM Consulting Contact Centre Awards. Clockwise from top left, Greg Milne, Fiona Forsdyke, “We’ve got a great team Sieanna Iafeta, Daniel Burgess, Sharnii Lintern, committed to delivering the Ashley Phillimore and Haig Davidson goal of making customers feel valued and proud of their decision to buy one of our vehicles,” says Haig Davidson, the marque’s customer care manager. “We can’t just refer to a script. We have to listen to the caller, understand their inquiry and provide the best possible outcome. Our callers appreciate that and the fact we’re locally based.” The awards have been running since 1997. This year there were more than 90 entrants across 16 industries.

The Energy Efficiency and Conservation Authority has an online tool to help dealers, mechanics and motorists ensure tyres are kept at the correct pressure. It supplies information for about 70 cars built after 2000 and on Kiwi roads, and it’s being updated as more details are supplied by marques and importers. The air levels show up after a registration plate is inputted. Visit www. energywise.govt.nz/tools/tyre-pressure.

Dealers get in the swing for classic’s milestone year The Autosure Golf Classic celebrates its 20th year with people from dealerships across the country converging on The Grange in Papatoetoe, Auckland, on November 1. A hole costs $450 plus GST to sponsor and includes free entry for a team of four if required. Sponsors can provide signage for their hole, where a tent or display to promote products or services can be set up. Email marie@autosure.co.nz.

Shape mooted for electric vehicle based on show car

Simon O’Reilly I 021 31 9992 I simon.oreilly@armstrongs.co.nz I www.armstrongprestige.com

Karl Briggs 0274 721 551

Call centre staff put in star turns for national title

Website system to save tyre costs and improve safety

WANTED NOW !

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News in brief

gareth@southcitymotors.co.nz

www.317.co.nz

Toyota is working on its first production of a hydrogen fuel-cell electric vehicle (EV), which should hit the market in 2015. Its arrival will probably coincide with Honda starting to reinvest efforts on a second-generation fuel-cell car based on its FCX Clarity. Expected to take the shape of a sedan, Toyota’s EV won’t conceptually diverge far from its FCV-R show car that debuted in Tokyo about two years ago.

Top apprentice secures V8 experience in Sydney Julius Bloem, of E&H Motors Ltd in Pukekohe, is the Motor Trade Association’s apprentice of the year following a “tool-off” in Wellington. The runner-up was Jordan Andrews from Invercargill. Devon Hammond, of Mount Maunganui, and Dunedin’s Jared Wiel were the other finalists. Bloem says it was surreal when Greg Murphy called him to say he had won and he will be travelling to Sydney for some hands-on experience with a V8 racing team.

Research shows price and ratings taken into account To advertise here, contact:

Ph 021 455 775 advertising@autofile.co.nz 16 | www.autofile.co.nz

Safety ratings are among primary considerations when people buy new cars, says ANCAP. Its research shows consumers rank safety as equal first alongside price, while marques have responded by launching more five-star vehicles.


news

Industry shows its big heart

T

hree car dealers are among about 30 riders harnessing pedal power to help children with heart conditions. This year is the third time Steve Rhodes is taking part in the Milford to Invercargill Heartkids Charity Ride. All money raised from the 275km event will go to Southland@Heart, which provides practical and emotional help for youngsters and their families, as well as buying equipment. Rhodes, whose used vehicle business Feature Cars is in Invercargill, has enlisted Kia’s support for the ride on November 16, with the marque already sponsoring a Tour of Southland team. Richard Murrell, former Motor Trade Association president and dealer principal of Southland Kia, and his brother Bobby, new vehicle sales manager, will be making their debuts in the event. Co-organiser Rhodes first entered in 2011 after talking with one of his customers Jason Gerken, a hair stylist in the city. The story of the son of Tania McKenzie, one of Gerken’s clients,

From left, Rick Murrell, Steve Rhodes and Bobby Murrell get saddled up

was and still is the inspiration behind the charity ride – he was born with half a heart. The youngster is now nine and leading a healthy life, but suffered a stroke a few years ago so it was back to square one. “He had to be taught how to walk, talk and write again. He’s okay now and such a little battler.” Rhodes praises Southland@ Heart for the great work it does and says it’s surprising how many kids in the area need ongoing treatment. “The charity helps families with travel to Starship in Auckland and gives so many people so much support.

“When you see what they’ve gone through and how hard they have to fight for their lives, it moves you to tears. You have got to do something.” Rhodes had only ridden up to 50km in a day before that first event in 2011. “It went down well and there were seven of us. We then got a few more riders last year and went

VEHICLES WANTED Mercedes Benz

Volkswagen BMW Audi Lexus

Risks to be ‘mitigated’

T

he NZTA has moved to reassure the industry about certificates of fitness (COF) changes. It follows the leaking of plans to open the system to commercial operators and bundle inspections and repairs, which flies in the face of VINZ, AA and VTNZ advice. Leigh Mitchell, the NZTA’s national manager of direction, says the plans are still in draft form but will be announced in late November. Mitchell says the changes are designed to maintain or improve the fleet’s safety while cutting costs, improving productivity, and

providing owners and operators with more inspection choice. “The agency has engaged constructively and in good faith with COF providers, operators and vehicle service and repair organisations via three rounds of reference groups and one-onone meetings. “We have considered all feedback from the engagement process,” while being committed to maintaining inspection integrity. “Approval criteria and processes for appointing organisations and inspectors – along with audit and monitoring systems – will mitigate risks associated with bundling.”

from Invercargill to Milford Sound. Rhodes went back to Gerken about this year’s event to discuss cranking it up. “We now have a mix of people, including former and current tour riders, as well as weekend warriors.” They are hoping to complete the 275km route in one 10-hour hit, while the biggest hills are at the start. For example, it’s 1,165-metre climb from sea level to Homer Tunnel over 16.5km. “I’ve had great support from customers and everyone connected to us in the motor vehicle industry – service providers, wholesalers and other dealers. We’ve had some fantastic donations.” For more event details, call (03) 215-8440 or email steve@ featurecars.co.nz and visit www. fundraiseonline.co.nz/StevenRhodes/ to make a donation.

Toyota Nissan 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 | 17


tech report The ImvIA Technical report is proudly brought to you by leading certification service provider, vINZ

from the trade and for the trade

Expert help for enthusiasts M

any dealers find themselves having to certify a low-volume vehicle (LVV) for various reasons. This may apply to an imported vehicle with a platform suspension fitted that’s non-standard or not original equipment manufacturer (OEM) installed, or it could be for something in a disability vehicle. So why do these vehicles require LVV certification? In the late 1980s, the new Vehicle Standards Regulations 1990 (VSRs) were developed following the format of the Australian Design Rules (ADRs). They prescribed standards vehicles had to meet. Diverse groups of motoring enthusiasts – including owners of hot rods, four-wheel-drives, sport cars, motor caravans and so on – foresaw the VSRs could create some major problems for pursuing

developed under the is the envy of many VSRs so enthusiasts other groups around could continue enjoying the world, especially in their past-times safely the US and Europe. and within the law. The LVVTA’s standards Tony “TJ” Johnson, were developed using of the NZ Hot Rod the VSRs and latterly the MALCOLM YORSTON Association, put his Land Transport Act’s rules IMVIA Membership and hand up to take on Technical Services Manager that replaced the VSRs. the role and to work It has been realised with the LTSA to develop lowthat it’s a lot easier to develop volume standards to ensure the and introduce rules that amount VSRs’ requirements could be met to tertiary legislation, rather for modified and individually than bringing in primary and constructed vehicles. Over the past 20-odd years, the LVVTA has grown from TJ being the chief cook and bottle washer to a professional organisation that has recently opened its headquarters and technical laboratory in Porirua. This is where all LVV certifications carried out

that have to be adhered to. These rules require vehicles to be within safe tolerance of OEM. A vehicle with a platform suspension is no longer within the OEM specification. Nor is a disability vehicle with the rear floor and chassis/unibody stiffeners cut out to accommodate a wheelchair ramp, and equipped with retrospectively fitted seatbelts and wheelchair restraint mountings. Some imports into New Zealand have been less than adequately modified in the previous jurisdiction. If the LVV certification system wasn’t in place in this country, these vehicles wouldn’t be able to be certified for registration unless they were returned to OEM specification, which helps nobody.

Above: The homepage of the Low Volume Vehicle Technical Association’s website. Below: Trikes, hot rods, and component, constructor and vintage cars are among vehicles classed as low volume.

their hobbies, so they formed the Low Volume Vehicle Technical Association (LVVTA). The LVVTA soon realised it needed to commit more than just part-time involvement to working with the Land Transport Safety Authority (LTSA – now the NZTA) to ensure standards could be

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secondary legislation that are acts and regulations. These rules go through industry and public consultation before they are signed off by the government. The compliance and repair rules are the dominant rules. If there’s conflict in the other rules, it’s the compliance rule and its requirements

With the LVV certification, vehicles are re-worked and certified to meet the requirements of the appropriate standard. For more information, log onto www.lvvta.org.nz. All of the association’s standards are available on the website, with information sheets that may be of interest.

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f & i stats

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September 2013 Finance

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16% 33% 9%

Insurance

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disputes

Tribunal dismisses application to reject vehicle six months after purchase Background Peter Leith bought a 2000 Nissan Pathfinder from Mosgiel Motor Court Ltd for $9,995 on May 3, 2012, when its odometer was on 273,350km. He returned it on November 27 after the engine failed, asked the trader to repair the car and it agreed to do so at the buyer’s cost. Leith rejected it on February 19, 2013, because he said the trader failed to fix it within a reasonable time. The dealer said Leith returned the car with a damaged engine after driving it for about 12,550km. It believed the car was probably never serviced by Leith and it complied with the CGA’s guarantee of acceptable quality when sold. The trader said Leith asked for the engine to be replaced. It agreed to do so for the cost of parts and outwork without charging for labour, and to provide Leith with a free loan car. In February, the buyer delivered a letter to reject the car before the work was completed. The next day he agreed to take it with the replacement engine and pay for the repairs by weekly payments. The trader said the engine needed certification and electrical work, which took longer than expected, but the car was ready on March 20. It said the time taken was reasonable and Leith wasn’t entitled to reject it.

The case The car had a new warrant of fitness (WOF) and was serviced by the trader’s diesel mechanic before it was supplied. The trader acknowledged it

promised to warrant the vehicle for six months from the date of sale. This was in addition to, not in substitution of, statutory CGA guarantees. Shortly after the six-month period ended in November, the engine failed for reasons unknown. Leith claimed the car was serviced by a friend on October 23 after 10,326km of use but failed to provide any evidence, such as receipts for oil and a filter he said he bought. Nor did he supply an affidavit from the person he claimed serviced it to confirm what work had been done. The tribunal thought the engine probably failed due to it running out of oil because Mr Cooper, of Fourwheel Drive Parts 2003 Ltd, emailed the trader on June 27 to say it was low on oil. It looked like it hadn’t been serviced for some time because there was little oil left in the sump and it was black. After the engine failed, Leith called the trader to reject the car and spoke to Tony Gow, director, who he claimed told him it would cost “a couple of grand for a new motor”. Gow, at the buyer’s request, prepared a quote dated December 14 for $3,500 to supply and fit a replacement engine. Leith told Gow he needed the quotation to take to WINZ to borrow money for repairs. He didn’t get a loan but the trader said Leith asked it to proceed. Leith denied this and said that in December he twice orally rejected the vehicle and asked for a replacement. Gow and his employee Ms D Ross

refuted this. They said he agreed for the trader to start work. Leith’s application supported the trader’s version of events. It stated: “The dealer said it would work on the vehicle over Christmas and it would be ready in January.” The tribunal didn’t think Leith’s evidence – that he didn’t want the engine replaced – was credible after he agreed to leave the vehicle with the trader and accept its offer of a loan car, which he continued to use and refused to return. The trader bought a Nissan Terrano QD 32T engine for the Pathfinder in December from Fourwheel Drive Parts for $2,875 in exchange for the ZD 30 engine in the car sold to Leith. There were difficulties and delays in fitting it because electrical components that served the old engine weren’t compatible. The QD 32T engine had 200cc more capacity than the ZD30’s, so installing it had to be certified by an engineer after an automotive electrician wired it up.

The finding The tribunal had to decide if the vehicle complied with the guarantee of acceptable quality in section six of the CGA. It noted the car supplied on May 3, 2012, was a 10-year-old Pathfinder that had travelled 273,350km when sold. Leith test drove it before buying it. It went okay so the tribunal ruled it was fit for purpose, acceptable in appearance, free from minor defects and as a reasonable consumer would deem acceptable.

The buyer wanted a The case:SUV ’s purchase price

second-hand refunded when its engine failed. He claimed the trader failed to fit a new one within a reasonable time, but r the dealer said it was probably neve serviced post-purchase.

n: The tribunal The decisio was likely to be durable

ruled the car when sold and it satisfied the guarantee of acceptable quality in ). the Consumer Guarantees Act (CGA r Vehicle Disputes At: The Motoedin . Tribunal, Dun

The car was issued with a new WOF before it was supplied so it was probably safe. The only aspect that might cause it to fail the guarantee was if it wasn’t as durable as a reasonable consumer would regard as acceptable. The tribunal didn’t think Leith had it serviced during the six months he used it to travel – according to his evidence – 7,500km, or 12,550 according to the trader. The car was, therefore, reasonably durable. It considered a consumer paying $9,995 for a vehicle of this age and high mileage would probably have fairly low expectations of its durability, particularly one with an undocumented service history. The tribunal decided this vehicle would probably be regarded as durable and if it had concluded it didn’t comply with this guarantee, it wouldn’t have upheld rejection. It was satisfied with evidence that the buyer withdrew his rejection of the vehicle on February 20, and agreed for the trader to finish installing the replacement engine and to pay for this work by installments.

Order The application was dismissed.

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disputes

Ruling against trader for maintaining ‘pretence’ of having engine repaired Background Canquan Chen bought a 1998 Isuzu Bighorn from Fortis Logistics Holdings NZ Ltd for $9,990 on November 29, 2012, with 12-month Protecta warranty for components. He rejected it on May 11, 2013, because he said its engine had a serious fault. He applied to the tribunal to uphold this and order the trader to refund the purchase price. The trader didn’t appear at the hearing on July 30. It emailed the tribunal on July 26 to say it was undergoing liquidation by offshore shareholders and its sole New Zealand director, Clyde Russell Hollick, wouldn’t be attending as the trader couldn’t cover or reimburse any of Chen’s costs. Hollick’s email stated the trader’s bank accounts had been frozen and had “next to nothing” in them.

The case Chen didn’t have the SUV inspected before buying it. He was supplied with it on December 2 with 184,481km on the odometer. Although it had a new warrant of fitness, its rear brake pads and rotors were replaced by the trader a week or so later because they were noisy. An engine mount was also replaced. Shortly afterwards, Chen noticed the engine vibrating and took the car to Wiri Automotive Ltd, which confirmed a fault. The trader asked Chen to take the vehicle to its repairer to be fixed using the mechanical breakdown insurance policy and K&P Automotive had the Bighorn from January 4 to April 29.

On April 14, Chen delivered a letter to the dealer saying he had made numerous visits to the trader and its repairer, but had received no clear explanation as to the reasons for the delay in repairs or when they would be completed. The letter proposed two options. The first was the dealer should give Chen a date by which, if the vehicle wasn’t repaired, it would refund him. The second option was for Chen to get the car repaired at a mechanic of his choice with the trader paying the costs. Hollick replied by email and said “we remain committed to resolving the issue”. His reply stated the trader was waiting for more answers from its mechanic as to when the problem would be rectified. Chen received no satisfactory response after sending another email on April 27 saying he would reject the car if it wasn’t repaired and returned within two weeks, Two days later, the Bighorn was towed to Jap Parts 2007 Ltd, which quoted $6,734 to replace the engine. The invoice recorded the odometer on 185,866km, or 1,385km more than when it was sold. The invoice stated it was running on three cylinders, possibly had a cracked cylinder head and a Protecta assessor inspected it before confirming approval for repairs. On May 11, Chen sent the trader a rejection letter saying it had failed to repair the car under the warranty, the problems were serious and he was claiming a full refund. The dealer failed to respond.

The finding On the basis of Jap Parts’ report and estimate, Chen’s evidence and the trader’s email saying it was committed to resolving the issue, the tribunal found the car probably had a seriously damaged engine at the time of sale. The vehicle was uneconomic to repair given its purchase price, age and odometer reading when it was supplied. The tribunal didn’t consider a reasonable consumer would regard a car for which they had paid $9,990 as durable when its engine failed after only 1,385km of use. It didn’t comply with the guarantee of acceptable quality in section six of the CGA because it wasn’t free of faults when sold and wasn’t as durable as a reasonable consumer would regard as acceptable. The tribunal also ruled the failure was of substantial character in terms of section 21(a) of the CGA because no reasonable consumer would have bought it knowing the nature and extent of the engine failure. Section 20(1) of the CGA details the loss of right to reject goods. The period of time within which rejection must occur runs from the date of supply – not from when any defect was, or ought to have been, detected. Chen didn’t reject the car until May 11, or five-and-a-half months after the supply date. He gave evidence the engine vibrated soon after purchase and he returned it to the trader. Chen was then asked to take the car into K&P Automotive,

The buyer of a The case:midsize SUV rejected

second-hand the vehicle after claiming its engine had a serious fault. The trader failed to attend the hearing because it was “undergoing liquidation by shareholders” overseas and told the tribunal it couldn’t reimburse or cover any costs incurred.

n: The tribunalunder The decisiotion of the car upheld the rejec ). the Consumer Guarantees Act (CGA r Vehicle Disputes At: The Motoland . Tribunal, Auck

which had it from January 4 until it was towed to Jap Parts on April 29. During this period, the trader maintained the pretence that it was having it repaired and was committed to doing this, so Chen was persuaded to allow more than a reasonable time for repairs. When Chen took the car to Jap Parts, which confirmed the extent and costs of the failure, he promptly sent the rejection letter. The tribunal believed his rejection took place within a reasonable time of the supply date, so he was entitled to reject the car. It has limited powers to make an award of costs to or against a party under the Motor Vehicle Sales Act. The tribunal considered this matter ought reasonably to have been settled before a hearing. But the trader failed, without reasonable excuse, to take part in the discussions so it was ordered to pay costs towards the hearing.

Orders The rejection was upheld with effect from May 11. The trader was ordered to pay the buyer $9,990 within 10 days, after which it was to collect the car from Jap Parts 2007 Ltd. The trader was also ordered to pay hearing costs of $500.

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he

d

Biggest Increases/Decreases by town year-on-year

un

try

Aroun

Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargil l Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland S e Hamilton Thames Tauranga Rotorua 3

(september 2013 vs september 2012) Biggest Increases

New Used Masterton   100.0% Westport   200.0% Whangarei   46.0% Gisborne   127.8% Hamilton   29.5% Invercargill   71.2%

New Used Greymouth   35.3% Greymouth   37.5% Palmerston Nth   31.7% Wanganui   29.6% Napier   15.6%

p te m b e r 2 0 1

Biggest Decreases

Passenger Vehicle Registrations

Used Vehicle Registrations

New versus Used

North Island versus South Island

10000

7000

9000

6000

Used 7615

5984

North Island

5000

8000

4000

7000

New

7272

6000

3000 2000

5000

South Island

1631

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

Mar ‘13

Feb ‘13

JAN ‘13

DEC ‘12

Nov ‘12

SepT ‘12

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

Mar ‘13

Feb ‘13

JAN ‘13

DEC ‘12

Nov ‘12

Oct ‘12

SepT ‘12

4000

Oct ‘12

1000

Used Import Passenger Vehicle Registrations by City

Auckland, Wellington, Christchurch

Hamilton, Tauranga, Dunedin, Palmerston North 3786

4500

600

4000 Auckland

3000

460

2500 2000 1051

Christchurch

638

222 183

Palmerston Nth

100

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

Mar ‘13

Feb ‘13

JAN ‘13

DEC ‘12

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

0 APr ‘13

Mar ‘13

DEC ‘12

Nov ‘12

Oct ‘12

SepT ‘12

Feb ‘13

Wellington

0

200

Nov ‘12

500

308

Dunedin

Oct ‘12

1000

Tauranga

300

SepT ‘12

1500

Vehicles sold

400

JAN ‘13

Vehicles sold

Hamilton

500

3500

UK, Japanese and local vehicles. Finance available.

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21 Oct

1 Nov

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Auckland

8 Nov

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Bread and butter on menu

A

n importer of used cars is aiming to bring across Japanese stock that’s a bit different, but he says times are changing. John Beck likes to have models that create a lot of interest on the yard, but has to now settle more for run-of-the-mill cars. “If I saw a really cool vehicle in Japan about five years ago, I just bought it because it was different,” says Beck, of Top Cars & Commercials in Invercargill. “Now we’re aiming more for the bread and butter sort of stuff.” While the business stocks New Zealand-new, Japanese imports and commercial vehicles, its online listings raise smiles in Southland by including “2000 cat, ex-bloke, fat automatic, price on application”.

Most beasts of the vehicle variety, however, fall into the $10,000 to $13,000 bracket with a guaranteed trade-in price of $2,000. “We’ve brought over a few Nissan Skyline R32s,” Beck told Autofile. “It’s good having a bit of a conversation piece even though they aren’t the most financially rewarding.” Bob Wade, the owner of Wade Cars in New Plymouth, says: “We’re still getting a bit of stock from Japan, selling some of that and New Zealand-new. “From Japan, you can pick and choose. It’s been cheap but good.” Last month saw 6,974 used cars imported from Japan to bring the year-to-date total to 71,308 for a market share of 93 per cent, which compares favourably to 2012’s 92.6 per cent.

September’s total was, however, the second lowest total of the year. It compared to 3,939 in January, to May’s high of 10,402 and August’s 8,074. Stu MacDonald, who owns Hawkes Bay-based Stu MacDonald Motors, says: “We generally focus on mint condition imports and focus on condition first. Those cars are always hard to buy.” Gary Moore, of 2 Cheap Cars in East Auckland, says the supply of vehicles from Japan is good and it’s important to have good relationships over there. The number of used passenger vehicles imported from all countries during September came to 7,501 to boost this year’s total to 75,921. Last month, there were 237 imports from the UK, which was its fifth highest total of the year and

slightly down on 263 during August. The year-to-date total of 2,130 represents a market share of 3.2 per cent – not far off 2012’s 3.7 per cent. Used imports shipped across the Tasman totalled 148 in September, down from the previous month’s 167 units. There have been 1,365 secondhand cars cross the border from Australia so far this year for a two per cent market share, up from 1.6 per cent last year. Looking ahead, Ports of Auckland’s indicative list of October 4 has 6,968 used vehicles set to discharge this month, with the numbers provided by shipping lines or through estimates. An industry source told Autofile used imports this month could exceed 9,000 units depending on the timing of ship arrivals.

Used import passenger vehicles arrivals 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000

2010

2013

2011

2012 2009

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Import Passenger Vehicles By Country Of Export Country of Export

Australia Great Britain

2013

2012

JAN ’13

Feb ’13

Mar ’13

APr ’13

May ’13

Jun ’13

Jul ’13

Aug ’13

Sep ’13

110

122

157

176

171

118

196

167

148

Monthly 2013 TOTAL Mrkt Share

1365

2.0%

2011

2012 TOTAL

Market Share

2011 total

% Total

1199

1.6%

1015

1.2%

281

191

194

221

297

206

240

263

237

2130

3.2%

2730

3.7%

1573

1.8%

3939

7810

8401

10006

10402

7654

8048

8074

6974

71308

93.0%

67442

92.6%

83534

95.2%

Singapore

11

14

6

8

9

9

17

14

10

98

0.1%

154

0.2%

327

0.4%

Usa

94

89

83

106

63

81

96

99

113

824

1.5%

976

1.3%

976

1.1%

Japan

Other countries Total

33

21

11

22

25

21

26

18

19

196

0.3%

336

0.5%

287

0.3%

4468

8247

8852

10539

10967

8089

8623

8635

7501

75921

100.0%

72837

100.0%

87712

100.0%

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Proud to sponsor the SecondHand Car Sales Statistics

Dealers record increase in sales S

econd-hand car sales by dealers to the public rose by 8.2 per cent last month compared to September 2012, while public-to-public transactions fell by 0.4 per cent. The trade-in market was also strong, increasing by 6.5 per cent over the same period. September saw 16,154 dealer sales compared to 14,934 in the same month of last year, while public-to-trader deals were up from 11,305 to 12,036. Private sales dropped from 36,454 to 36,302. John Clough, of Rotorua Kia, says the used market hasn’t been overly strong and anticipates this financial year to mirror the previous one. The city saw a monthly yearon-year increase of 30.8 per cent

for trade-ins – from 133 to 174 – and dealer sales were up by six per cent from 251 to 266. Private sales dropped from 655 to 581, or by 11.3 per cent. “Mid $14,000 to $15,000 will see some growth in our volumes,” Clough told Autofile. “The internet is playing an increasingly important role in marketing when promoting the business and it enables us to sell nationally. “Without the internet, I dread to think where we would be sitting. You have to work to get the most out of it. If you run a business without a website, you do so at your own peril.” “If you’re a nana, there’s lots of choice on the market,” says John Beck, of Top Cars & Commercials in Invercargill,

where the numbers were steady last month – except for a 17 per cent increase in trade-ins from 283 to 331. “If you want a performanceoriented four-door sedan, a turbo Legacy or something like that, you’re searching all over. “There hasn’t been one make or model selling well, although we tried to focus on a few normal four-door sedans in the mid-2000s.” Beck believes most Joe Averages are after average cars, and he mainly sells between $8,000 and $15,000. “Local banks get a few people to come in with cheques, so finance is similar to what it has always been.” Beck says the past few years haven’t been outstanding, and

he’s had to work harder and has to put more thought into buying. “In the past, I liked to give something a shot but have to think harder about it now. “I can’t see any reason for the market to change and there’s not the same outrage about fuel prices. “It will be interesting to see if changes to housing will have some distant effect on the market.” Steve Grenfell, of Blackwalls Motor Group in Christchurch, says: “We’ve seen a softening in the used market to where it used to be and that’s a reflection of what the new car market is doing. “Our types of used cars are late model, low mileage and nearly new. In this area it’s been steady as it goes.”

Secondhand car sales - September 2013 Sep '13

Dealer-To-Public Sep '12 +/- %

MARKET SHARE

Sep '13

Public-To-Public Sep '12

+/- %

Sep '13

Public-To-Dealer Sep '12

+/- %

Whangarei

516

445

16.0

3.19

1615

1515

6.6

253

213

Auckland

5368

4942

8.6

33.23

12864

13092

-1.7

4246

3887

18.8 9.2

Hamilton

1425

1271

12.1

8.82

2832

2822

0.4

1184

1048

13.0

Thames

178

174

2.3

1.10

416

424

-1.9

80

73

9.6

Tauranga

797

781

2.0

4.93

1707

1778

-4.0

537

547

-1.8 30.8

Rotorua

266

251

6.0

1.65

581

655

-11.3

174

133

Gisborne

131

112

17.0

0.81

348

320

8.7

86

82

4.9

Napier

486

489

-0.6

3.01

1196

1153

3.7

323

385

-16.1 11.9

New Plymouth

449

368

22.0

2.78

984

963

2.2

264

236

Wanganui

167

149

12.1

1.03

417

409

2.0

112

121

-7.4

Palmerston North

714

701

1.9

4.42

1403

1406

-0.2

638

720

-11.4 -16.3

Masterton

165

168

-1.8

1.02

298

322

-7.5

77

92

Wellington

1382

1327

4.1

8.56

2544

2577

-1.3

1074

1036

3.7

Nelson

326

298

9.4

2.02

839

763

10.0

243

195

24.6

Blenheim

156

172

-9.3

0.97

318

354

-10.2

112

116

-3.4

Greymouth

74

77

-3.9

0.46

212

158

34.2

38

33

15.2

Westport Christchurch

24

28

-14.3

0.15

85

82

3.7

2

-

-

2225

1903

16.9

13.77

4701

4731

-0.6

1634

1512

8.1

Timaru

228

225

1.3

1.41

447

464

-3.7

136

152

-10.5

Oamaru

72

71

1.4

0.45

165

189

-12.7

25

16

56.3

Dunedin

614

590

4.1

3.80

1488

1441

3.3

467

425

9.9

Invercargill

391

392

-0.3

2.42

842

836

0.7

331

283

17.0

16154

14934

8.2

100.00

36302

36454

-0.4

12036

11305

6.5

NZ total

 Consumer Guarantees Act 1993  Motor Vehicle Sales Act 2003  Sale of Goods Act 1908  Fair Trading Act 1986  Energy Efficiency and Conservation Act 2000

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Passenger Car Sales by Private/Business split (INCLUDES SUVs) Make

Private

% Private

Business

% Business

Total

Alfa Romeo

20

69.0

9

31.0

29

Audi

52

31.3

114

68.7

166

0

0.0

1

100.0

1

BMW

49

33.1

99

66.9

148

Chery

23

53.5

20

46.5

43

Chrysler

4

36.4

7

63.6

11

Citroen

11

29.7

26

70.3

37

4

100.0

0

0.0

4

18

58.1

13

41.9

31

Bentley

Daihatsu Dodge Ferrari

1

50.0

1

50.0

2

Fiat

10

83.3

2

16.7

12

Ford

163

25.3

480

74.7

643

4

44.4

5

55.6

9

Holden

229

38.0

373

62.0

602

Honda

143

64.7

78

35.3

221

Hyundai

216

31.2

477

68.8

693

2

16.7

10

83.3

12

Jeep

35

38.5

56

61.5

91

Kia

55

23.5

179

76.5

234

Land Rover

12

31.6

26

68.4

38

Lamborghini

1

100.0

0

0.0

1

22

45.8

26

54.2

48

0

0.0

1

100.0

1

139

23.5

453

76.5

592

Mercedes-Benz

62

44.9

76

55.1

138

Mini

25

56.8

19

43.2

44

354

68.1

166

31.9

520

Nissan

79

38.7

125

61.3

204

Peugeot

51

56.7

39

43.3

90

Porsche

12

80.0

3

20.0

15

Renault

1

10.0

9

90.0

10

Skoda

12

20.0

48

80.0

60

SsangYong

21

28.8

52

71.2

73

Subaru

78

35.3

143

64.7

221

Suzuki

180

53.6

156

46.4

336

Toyota

288

18.7

1255

81.3

1543

Volkswagen

147

47.7

161

52.3

308

Volvo

7

31.8

15

68.2

22

Total

2530

34.9

4723

65.1

7253

Great Wall

Jaguar

Lexus Maserati Mazda

Mitsubishi

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

Top of premium sector heats up B

MW has finished the end of the third quarter of 2013 in a dominant position, retaining the lead of the premium automotive segment year-to-date. The marque has sold 1,524 new passenger vehicles so far this year to secure a market share of 2.5 per cent. It had 148 registrations last month, of which 66.9 per cent – or 99 units – were business sales. This represented a 10.4 per cent increase on 134 sales in September 2012. Audi is second on the prestige ladder with 1,464 year-to-date sales, substantially ahead of Mercedes-Benz on 1,119 units. During September, Audi recorded 166 sales. This was up by 9.9 per cent on the same month last year, while MercedesBenz made a comparative jump of 62.4 per cent from 85 to 138 registrations. The largest proportion of business sales of passenger vehicles in this sector, including SUVs, went to Audi with 68.7 per cent of its monthly registrations – or 114 units. The highest share of private sales went to Mercedes-Benz with 44.9 per cent, or 62 units. Audi is 0.1 per cent behind BMW’s market share while Mercedes-Benz has a year-to-date market share of 1.8 per cent. As the current leader of the premium automotive segment, BMW says strong interest across its entire model range has contributed to its record new vehicles sales for the year. These account for an increase of 23 per cent for what’s New Zealand’s

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most popular premium brand compared to this time last year. “Sales continue to go from strength to strength and we’re in a great position entering the final quarter,” says Nina Englert, managing director of BMW NZ. “There are plenty of reasons for enthusiasts to visit our showrooms. We have an outstanding model range and the arrival of two new models to look forward to.” This month sees the debut of the newest member of the line-up, the 4 Series Coupé, while what’s being dubbed the most popular premium sport activity vehicle – the X5 – is just around the corner. “It’s going to be an exciting finish to the year in terms of sales of new premium vehicles,” says Englert. “I have every confidence BMW will continue to perform well.” She’s also pleased with sales data for Mini, which points to a successful finish to the quarter. The small-car brand achieved 44 registrations for the second month in a row, contributing to a yearover-year growth of 17 per cent. Twenty-five of those sales, or 56.8 per cent, were private. Toyota continues to be the leading overall marque, with a seemingly unassailable lead over its rivals. Last month, it sold 1,543 new passenger vehicles, with 81.3 per cent – or 1,225 units – being business sales. Hyundai came second with 693 registrations and 216 – or 31.2 per cent – were private transactions. Ford was third on 643. Of those, 74.7 per cent – or 480 units – were business sales.


Light commercials lead way N

ew vehicle sales of 10,071 last month continued the upward trend for 2013. Light commercials have performed better pro-rata than other sectors this year compared to 2012. Year to date, 19,969 units have been sold. This was up by 26.2 per cent on 15,827 sales by the end of last September. Heavy commercial sales have increased by 23.9 per cent from 2,129 units to 2,638. Next are SUVs with sales jumping from 19,426 to 22,663 – up by 16.7 per cent – while the passenger market has grown by 1.6 per cent from 37,155 to 37,716. Steve Grenfell, dealer principal of Blackwalls Motor Group in Christchurch, describes new vehicle

sales as “very good and buoyant”. He says there’s likely to be a big build-up of stock from manufacturers, which will force the market even harder and may affect sales. “All marques have imported a lot of stock to get their share but this means there can be an overload in the industry, which is happening,” explains Grenfell. “The manufacturers force feed stock onto dealers, which results in sharp and aggressive prices. This is great for the consumer. I don’t know if it’s ideal for all dealers, but it is what it is.” As for Holden, sales of the Colorado have more than doubled this year while new products – such as the Commodore, Malibu and Trax – are generating momentum.

“The market is trending well because of a bunch of new products and the oversupply issue is across the board,” says Grenfell. “This can be negative on new vehicle values, while the used market slows.” John Clough, dealer principal of Rotorua Kia, has been surprised to read sales are going so well nationally because he’s on a similar level pegging to last year. “Reports of record registrations may not be so much in retail, but we’ve been steady across our range,” he says. “We enjoy a good market share, double most of the rest of the country.” Clough says two-litre cars are becoming popular as they get more fuel-efficient and suitable for today’s needs.

“Over the past 12 months, we’ve started to see good sales of two-litres and we see the same going forward. It’s a size well-suited to the market. “The Cerato sedan was launched about four months ago and we’ve been successful with that, while the new hatchback is stunning. “We experience good sales with hatches because they tend to be more popular in that class. That said the sedan is sporty and stylish, so we’ll probably see level sales between the two.” Clough has noticed an “incredible” trend towards twowheel-drive SUVs. “They handle like cars, are versatile, have good seat height and are becoming increasingly popular with older people.”

NEW VEHICLE MARKET SEGMENTATION - September 2013

NEW VEHICLE SALES BY BUYER TYPE - September 2013 Aug '13

Aug '12

Mth %

2013 YTD

2012 YTD

% YTD

Passenger

4,563

4,348

4.9

37,716

37,115

1.6

Passenger

4,563

4,348

4.9

37,716

37,115

1.6

Private

1,670

1,363

22.5

14,311

13,057

9.6

SUV

2,690

2,270

18.5

22,663

19,426

16.7

Business

1,795

1,897

-5.4

17,380

17,800

-2.4

Light Commercial

2,444

1,789

36.6

19,969

15,827

26.2

163

239

-31.8

1,919

2,287

-16.1

Heavy Commercial

340

230

47.8

2,638

2,129

23.9

34

43

-20.9

357

383

-6.8

10,071

8,680

16.0

83,343

74,880

11.3

Light

1,311

1,333

-1.7

11,291

10,574

6.8

Small

2,072

1,766

17.3

15,516

15,071

3.0

Medium

676

518

30.5

5,727

5,702

0.4

Large

312

527

-40.8

3,405

3,910

-12.9

Gov’t Rental SUV

935

849

10.1

4,106

3,971

3.4

Aug '13

Other Total market

Aug '12 Mth% diff

2013 YTD

2012 YTD % YTD

2,690

2,270

18.5

22,663

19,426

16.7

860

758

13.5

8,373

6,747

24.1

1,526

1,278

19.4

12,347

10,748

14.9

Gov’t

29

46

-37.0

460

486

-5.3

Rental

275

188

46.3

1,483

1,445

2.6

2,444

1,789

36.6

19,969

15,827

26.2

Upper Large

32

30

6.7

200

187

7.0

456

286

59.4

4,123

3,102

32.9

People Movers

80

71

12.7

676

701

-3.6

1,767

1,275

38.6

14,232

11,113

28.1

Sports

103

171

-39.8

1,073

1,188

-9.7

SUV Small

Private Business

Light Commercial Private Business Gov’t Rental

118

57

107.0

541

424

27.6

SUV Medium

9,697

8,407

15.3

80,348

72,368

11.0

SUV Large

Private

2,986

2,407

24.1

26,807

22,906

17.0

SUV Upper Large

Business

5,088

4,450

14.3

43,959

39,661

10.8

Light Buses

295

456

-35.3

3,452

3,961

-12.9

Sub Total

Gov’t Rental

103

-22.3

901

970

-7.1

482

32.0

4,918

4,093

20.2

1,197

852

40.5

9,298

6,842

35.9

813

917

-11.3

8,122

8,213

-1.1

44

19

131.6

325

278

16.9 14.3

71

30

136.7

367

321

Vans

496

401

23.7

3,866

3,650

5.9

Pick Up/Chassis Cab 4x2

749

551

35.9

5,896

4,050

45.6

Pick Up/Chassis Cab 4x4

1,128

807

39.8

9,840

7,806

26.1

340

230

47.8

2,638

2,129

23.9

34

43

-20.9

357

383

-6.8

10,071

8,680

16.0

83,343

74,880

11.3

1,328

1,094

21.4

6,130

5,840

5.0

340

230

47.8

2,638

2,129

23.9

Other

34

43

-20.9

357

383

-6.8

Other

Total

10,071

8,680

16.0

83,343

74,880

11.3

Total market

Heavy Commercial

80 636

Heavy Commercial

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