Autofile 23 April

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

Issue 7-2015 23 April 2015

Options for new and used imports notified

In this issue

he authorities across the Tasman are being urged to go further with relaxing rules on importing used vehicles.

The federal government has announced it will now consider options to reduce restrictions on personal imports of new cars after further public consultation.

But it has indicated that it “is not inclined to take the same approach with used vehicles”, although it’s considering how to continue supporting specialist and enthusiast vehicles being allowed into Australia “without impacting on road safety”.

p16 Wanganui regional report

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“Any changes will be focused on ensuring consumers have access to the lowest cost, safest and youngest fleet possible,” says Jamie Briggs, Assistant Minister for Infrastructure and Regional Development.

The Australian Imported Motor Vehicle Industry Association (AIMVIA) – a sister organisation to New Zealand’s IMVIA – supports reviewing and updating the Motor Vehicle Standards Act (MVSA), which governs the country’s border controls.

However, it believes Briggs

and the federal government could go further to achieve their goals of increasing competition and improving the fleet’s safety.

“While the idea of private parallel imports initially seems attractive, it’s impracticable for a number of reasons,” says the AIMVIA. “Franchised dealers in most jurisdictions are prevented by franchise agreements from selling for export and consumers who purchase direct from overseas wouldn’t enjoy the protection of consumer law.”

The AIMVIA is standing by its policy that the importation of quality

T

Celia Patrick, group manager for access and use, says the review also aims to improve the way the agency delivers its regulatory services and to give it “greater ability to assess the effectiveness of our work as the regulator of the transport sector”.

Autofile contacted the NZTA about the changes after two members of the automotive industry raised concerns about

p10 Loan add-ons in spotlight p14 Dealership gets makeover p15 Tips on importing vehicles

p18 Top Gear’s death threats

We add value to your business

People • Products • Training

[continued on page 4]

Agency reviews industry services he NZ Transport Agency (NZTA) is contacting organisations and businesses in the automotive industry to explain how it has been restructured.

The move follows a “comprehensive review” of its regional and technical support teams, which has been carried out “in order to streamline and improve the way we target our activities”.

p3 Port’s opposition all at sea

what effects the review will have on the services provided by the agency and access to it.

“As a result of this review, we are making changes to the way we work, and we are reorganising some of our staffing functions within our technical services and regional teams,” explains Patrick.

“The intended benefits to our customers are to provide [continued on page 6]

Wraps come off in New York

p12

editor’s note

Call Steve Owens now on 021 947 752

All at sea over port’s expansion It’s interesting to note he has now toned down his opposition to POAL’s plan.

“Until a decision is made, we understand some work will continue in line with contracts in place with construction companies,” he recently said.

Perhaps he has just realised there are no legal barriers at present to stop work and the council’s coffers would be emptier without POAL’s profits.

The lawfulness of the RMA process, however, will be challenged in the high court in June by Urban Auckland, which appears to be a committee of architectural and planning professionals that’s part of the Society for the Protection of Auckland City and Waterfront.

It would be interesting to know what its actual intents are in regards to the port and I’m always suspicious of organisations that have so little information about themselves on their own websites.

Many would argue such professions have done little to enhance the city centre’s aesthetics – just look at the visually hideous apartment blocks near the port.

Then there are some half-wits in Auckland who don’t want the port there at all. It is, after all, prime real estate.

But most people recognise the benefits of having the port in the city and where it’s currently located.

The bottom line is POAL is planning for the future, which is more than be said about most of the city’s public transport system, for example.

We all know ships are getting bigger and the port needs to expand. People and goods, including cars, have to land somewhere. If not Auckland, where and at what cost to the city?

Darren Risby, editor

Editor

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

Brian McCutcheon brian@autofile.co.nz 021 455 775

Journalist & Online producer

Designer

Cameron Carpenter cameron@autofile.co.nz

Adrian Payne arpayne@gmail.com

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

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All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions.

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happy WITH YOUR CURRENT

ARE YOU

W

hat stands Auckland apart from many of the world’s great harbour cities is its working port.

I have spent many hours walking around it, and watching ships disgorging cargo and passengers.

Most of Auckland’s goods come into the city via the gulf, while the whole region reaps economic benefits from the port.

So when Ports of Auckland Ltd (POAL) says it needs to extend Bledisloe Wharf to cater for the ever-increasing size of vessels, including roll-on, roll-offs with motor vehicles, I sit up and listen.

However, some people are complaining this project wasn’t notifiable under the Resource Management Act (RMA).

Perhaps it should have been, but there’s no point in crying over spilt milk and this work has been on the cards for some time.

While I respect some protesters’ views, Auckland Council has become a laughing stock.

Len Brown is against privatising council assets and for good reason when it comes to the port.

Its declared dividend was $66.6 million for the financial year ending June 2014 – a 126 per cent increase – so POAL must be doing something right to reap such benefits for ratepayers.

However, if the mayor wants more information from the company, perhaps it should be listed.

It would then be duty-bound to issue statements to the NZX on an array of issues that private companies don’t have to because they have different obligations under the Companies Act. It looks like Brown wants to have his cake and eat it and, for me, if a council can’t run its own affairs then it should keep well away from commercial enterprises.

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3

news [continued from page 1]

Industry criticises border options used vehicles through established businesses, preferably licensed, would ensure members of the public are covered by legislated protection.

“The creation and expansion of a used vehicle importation industry would create opportunity not only for consumers, but mitigate the loss of employment and other damage caused by the withdrawal of vehicle-manufacturing companies,” it adds.

“For instance, personnel made redundant by the loss of manufacturing could find opportunities requiring skillsets similar to their own in a blossoming vehicle compliance industry.”

The association believes a scheme restricted to new cars ignores the wider population.

“The AIMVIA would contend only a small segment of motorists are new car buyers. For every new car sold in Australia, there are five

supply of imports to used car transactions the market. each year.

The government has “When rental car, consulted broadly over government and fleet the past year to ensure vehicles are excluded it “strikes a balance” from sales figures, it between appropriate reveals the majority safety standards in line aren’t new car buyers.” with international best “Under Briggs’ practice and consumer proposed legislation changes, only new car David Vinsen, chief executive access to vehicles at of the AIMVIA lowest possible costs. buyers would be able to As part of the process, personal have choice of where they shop for new car imports have been a a vehicle.” consideration, particularly given the GOVERNMENT’S VIEWS end of light-vehicle manufacturing The federal government insists across the Tasman from 2017-18. potential changes to border Also as part of the review, restrictions will focus on ensuring the government will continue to consumers have access to the cut red tape by accelerating the safest, youngest and lowestharmonisation of its vehicle standards priced fleet available. with international best practices to Briggs stresses the MVSA lower costs for businesses and make delivers national standards for new the industry more competitive. vehicles and regulates the first The MVSA currently imposes

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about AU$281 million a year in regulatory compliance costs to businesses and Briggs is confident these can be substantially reduced.

REACTION TO IDEAS Briggs’ plan to allow consumers to personally import new motor vehicles has created a furore in Australia.

The Canberra-based Federal Chamber of Automotive Industries, for example, describes the move as “irresponsible and short-sighted”.

Chief executive Tony Weber says the government is disregarding “serious consequences” that would flow from its plan and is urging it to carefully consider the facts before a final decision is reached.

Weber claims the move would see many people caught in high-risk situations with their vehicles being outside established service networks.

“Currently, consumers are  offered the highest possible level

news At a glance

t of protection when it comes to in the world, it’s baffling why the purchasing a new vehicle through government is contributing to The Australian Imported Motor a dealership,” he says. public misconceptions about the Vehicle Industry Association represents “Brands selling in this cost of new cars in this country.” businesses connected with importing, country make substantial Meanwhile, the AIMVIA preparing and selling used vehicles. investments by way of believes consumers and Founding members include logistics, shipping dealerships, workshops, motorists should be entitled and inspection companies, as well as importers, compliance specialists and vehicle retailers. technology, and training and enabled to access the The association, whose chief executive is David to support and service widest possible choice of Vinsen, recently unveiled its first two foundation products. quality used vehicles that supporters as being AUTOHUB and JEVIC. “This means consumers comply with the country’s It says their support reinforces “the approach can be certain their vehicles safety and environmental taken to ensure a united voice is heard can be serviced and repaired standards. at government level to strengthen the case for relaxing import appropriately, and recalls are It says such choice would ensure restrictions”. captured so they are informed if competition and the best possible something needs to be fixed.” pricing of vehicles, and adds Weber notes that marques Weber insists the industry is not association policy is backed by a selling in Australia also manage the “fear-mongering” when it says those recent review of competition rules logistical process, which includes who personally import vehicles and recommendations made by the managing border-control processes made for another country may end Productivity Commission. from getting a car off a ship, through up with models that don’t meet The latter favours opening up quarantine and to the buyer. their needs or operate as required. the market to used imports with “How can a consumer be “Vehicles made for the Australian certain conditions attached. expected to navigate this market are engineered for our There also appears to be some system without the addition conditions and safety specifications, discussions around what would of significant bureaucratic red so they cope with the climate, roads constitute a “new” vehicle, with tape, which the government is and lifestyle,” he says. suggestions this may include those determined to reduce?”

“They also have convenience that are “nearly new” – perhaps less Weber says Australia already items, such as sat-nav, air than 12 months old and or with less has one of the world’s most conditioning and infotainment competitive right-hand-drive systems, specifically calibrated markets, which is reflected in the for the market. price of new vehicles there.

“Cars may look the same on the “When we look at cars with the outside, but there are differences same level of specification, we find when you lift the bonnet or look the majority made for Australian deeper into systems.” conditions are competitively priced He adds it’s “simplistic and compared to Japan, the UK or New misguided” to say regulation is not Zealand,” he adds. required if Australia joins a global “In one of the most competitive regime because “only 57 countries and affordable new car markets are part of it”.

than 4,000km on their odometers.

Consultation on the intention to consider options to reduce restrictions on new and used imports will be undertaken until the end of May with a final decision likely to be announced later this year.

HAVE YOUR SAY The proposals for the MVSA were announced on April 16 when the government gave more details on options being considered.

It has invited further comment on ideas, which should be emailed to MVSAreview@infrastructure. gov.au by the end of next month.

Individuals or organisations already providing submissions need not make further comment.

Views will assist in informing the development of a regulatory impact statement and the government’s final decision.

The statement will be released in coming months and will assess key options on the table. Visit www. infrastructure.gov.au/vehicles/ to find out more.

JAPAN

Support for used imports

A

competition policy review has recommended removing restrictions on used imports into Australia to bolster consumer choice.

It found border controls should be relaxed to make it easier for retailers or members of the public to import certain products privately.

Report author Ian Harper says this would decrease prices of some goods, such as used vehicles.

“Consistent with recent Productivity Commission reviews, parallel-import restrictions on second-hand cars should be removed subject to transitional

arrangements as recommended by the commission,” the review states.

At the moment, vehicles can be imported into Australia after government approval having met a range of criteria.

However, car manufacturers are against a system similar to New Zealand’s being set up across the Tasman.

For example, Ford Australia says the brand’s reputation may be affected by consumers who personally import new vehicles not sold there, and expect them to be serviced and repaired by the company.

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news [continued from page 1]

Concerns expressed over review more efficient, timely and fit-for-purpose solutions while maintaining the integrity of the regulatory framework.

“Our aim is to improve services we provide to the industry, and make it easier for people to get access to the information and advice they need on a timely basis.”

The NZTA is currently in the process of getting in touch with organisations to help them understand what’s being rolled out.

Patrick told Autofile: “We will be inviting industry groups to contact us directly to discuss any specific concerns they may have.”

VIEWS OF CAR INDUSTRY Autofile was alerted to the review of the NZTA’s regional and technical teams by someone working for an organisation in the motor-vehicle industry.

He wants to remain anonymous

at this stage because of working relationships with the agency and its staff, and stresses his concerns relate to how it’s run and not how employees do their jobs.

“The NZTA seems to be in a state of constant flux with this latest review seeing bean counters making the decisions and there

The industry source questions how all of the agency’s work in the automotive sector will be carried out with what appears to be fewer resources.

“I don’t know what the service delivery will be like as a result of what appears to be a reduction in numbers. Is the NZTA expecting the

“We will be inviting industry groups to contact us directly to discuss any specific concerns they may have.” – Celia Patrick, NZTA appears to be a shrinking-lid policy on staffing,” he says.

“People have had to reapply for positions. I would raise concerns about this because it appears jobs others were offered were already being done by people who needed to reapply and didn’t get them.”

a fresh approach to dealer finance

industry to become self-regulating?

“For example, when the agency is emailed in regards to exemptions, the standard response used to be it would get back to you within five working days.

“That response recently changed to the consideration of

www.MyFinance.co.nz 0800 385 385 www.autofile.co.nz

“If it’s not a priority, it may be pushed to one side. Small day-today forest fires need to be tackled because what will happen when a major fire comes along?

“You have to ask what will fall by the wayside. I would not like to try to make any predictions on this, 

Massive recall issued

S

uzuki is recalling two million vehicles including Swift and Wagon R models made between 1998 and 2009.

The call-back is to replace ignition switches after reports of fumes being emitted from faulty components. There have been 67 such incidents reported in Japan.

More than 1.873 million units are affected across nine models in Japan, including the Alto, Wagon R and Swift.

The recall also covers 133,700 Swifts, Altos and Chevy Cruzes sold in overseas markets, such as the Chevrolet Cruze that Suzuki builds for General

we’re in this together

6

the application will start within 10 working days and depending on its complexity it may be up to 10 more working days before resolution.”

There are industry concerns that any reduction of resources may already be contributing to backlogs.

“I suspect things will probably be looked at on a priority basis,” he says.

Suzuki’s Swift and Wagon R

Motors and the AZ-Wagon and Carol models sold under the Mazda brand.

The latest announcement expands a previous recall for 168,000 cars issued in March for the same defect.

No one has been injured by the problems, and there have been no reports of smoking or burning ignition switches outside Japan.

The latest recall follows Suzuki’s Celerio suffering brake failure during a 128kph declaration test by a UK car magazine, which held back the model’s release in this country.

news t but I’m sure something will.”

Another member of the industry told Autofile: “It’s difficult to get answers out of the agency particularly at operational level, but I feel there have been issues for some years.

“Going back to the days of the Land Transport Safety Authority, our industry had good relationships with it. We understood what was being done and it was a true partnership.

“Now the level of service when it comes to inquiries and responses can be frustrating.”

RESPONSE FROM AGENCY A spokesperson from the NZTA is keen to stress the review of its regional and technical support teams has focused on how they do their work.

“We had experts with deep knowledge spread across a number of areas and realised we needed experts with specific functions.

“For example, our team of vehicle specialists and engineers used to write vehicle inspection requirement manuals [VIRMs] because they are experts in this field.

“Now we have technical writers who write VIRMs with specialists providing the technical expertise, and the writers ensure the finished products make sense to people who use them.”

Another example is the NZTA having two vehicle specialists in

each of its three regions – northern, midlands and southern.

“These are the same people we had working there as before but they now have a specialist focus, which directly uses their expertise.

“Although there may be different numbers in our teams, we are still accessing a depth of expertise. However, it’s not spread across a number of roles.”

The agency says it has also focused on lifting its communication skills as a team.

“We need to communicate with our stakeholders and customers in a timely way and with quality information and decision-making, so we have been thinking about how we do that.

“We are dealing with really complex technical information and feedback from the industry has told us we needed to improve the quality of the way we communicate this information with key stakeholders.

“Complex problems sometimes require us to access deeply specialised information in a timely manner.

“We’re responding to that by setting up a group of both local and international experts that we can call on as required. In the past, it has been more ad-hoc.

“It’s about how we access our expertise and augment the experts we already have at the agency.”

How the agency is set up

T

he NZTA is structured to ensure it delivers on its responsibility “to contribute to an affordable, integrated, safe, responsive and sustainable land-transport system”.

Its structure, as outlined on its website, includes six business divisions.

The strategy, communications and performance group ensures these areas are aligned with government direction. It also monitors and reports on organisational performance, and ensures the agency’s board receives separate advice on its investment strategy and programme.

The planning and investment group develops regional and national partnerships “that enable

us to influence land-use planning and optimise our investment in integrated transport solutions”.

The highways and network operations group is responsible for building, maintaining and operating the state highway network.

Services such as driver licences and motor-vehicle registration are provided by the access and use group, which also regulates transport operators.

The organisational support group provides the organisation with information, finance, legal, assurance, risk and corporate support services.

And the people and capability group “ensures we can deliver on our goals through our people and people capability”.

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news

Huge vehicle numbers arrive S

hipping companies have had to put on extra services to cope with the amount of motor vehicles being imported through Auckland this month.

The port company is expecting about 20,000 cars to arrive during April, while May is also shaping up to be a big month when it comes to the numbers.

“Used vehicle numbers have been very good,” says Blain Paterson, general manager of Toyofuji Shipping NZ. “After May, we expect the level of imports to plateau off during the winter months.

“Toyofuji put on two extra services in April and that’s in addition to our service direct to New Zealand, which means we have put on five vessels this month.

“April is always strong due to budgets closing at the end of March in Japan. More used cars are entering into Japanese auctions due to sales of new vehicles before budget closures on March 31.”

Paterson believes it will be a close call on whether this month is a record for April, while next month sees Toyofuji’s normal services resume with three ships.

“We are also busy because Toyota is performing strongly in New Zealand as the country’s number-one new vehicle manufacturer,” he told Autofile.

“Our dollar’s exchange with the yen is still strong.

For example, it was at 91.6 on Thursday and that’s good news for the New Zealand dealers.

“All of this clearly illustrates – with the number of pure car carriers calling in April as well

Ports of Auckland is expecting about 20,000 vehicles to arrive during April

Crunching numbers

as other trades – that Ports of Auckland needs more space, although it has been coping with the recent volumes.”

Brendan Hodson, PCC trade manager for Mitsui OSK Lines, says: “Due to extraordinary demand, we have placed a third loader this month ex-Japan, the PCC vessel Capricorn Ace. “Generally when we have surges in demand for space, we manage by using larger ships or routing transhipped cargo via Australia. Volumes are very healthy on all trades at the moment.”

Hans Corporaal, of Armacup, adds: “Our vessels are running full and we have chartered additional tonnage to service our customer base.”

On the logistics side, John Davies, managing director of AUTOHUB, says: “I believe this next month will be as strong as

previous months for arrivals of used imports into New Zealand.

“The yards at ports in Japan and pretty full and staff there are working some very long hours.

There are no space issues in shipping so far and some lines are placing extra vessels on.

“Unless the New Zealand dollar falls considerably, I see no decrease in buying by importers based in this country.”

Matt Ball, head of communications at Ports of Auckland, says: “April is looking to be an exceptionally busy month for vehicle imports following an equally busy March.

“Projections indicate that we will handle just over 20,000 cars this month. Up to April 22, we discharged 14,886 cars with an almost equal split between new and used vehicles.

“Last year, we handled 207,591

Imports of cars through Ports of Auckland have increased steadily over the past five years.

In 2010, the total came to 119,608 units and this rose to 123,362 in the following year.

There were 147,221 car imported via Auckland in 2012, 170,835 in 2013 and 207,591 last year.

cars, which were up by 25 per cent on the year prior with more than 10,000 cars received in one week alone.

“This places extra pressure on our people and resources, but we are able to handle these volumes by working with the industry and being more flexible across the port with our freight handling.

“Most of New Zealand’s vehicles are imported through Auckland, so it’s vital we’re agile and have the capacity to manage higher volumes of vehicle imports.

“During the month of May, we expect to handle more than 17,000 cars, of which about half will be new.”

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news

Port dismisses protesters’ idea P

orts of Auckland Ltd (POAL) claims a protest group is misleading the public over the need to extend Bledisloe Wharf.

Debate is raging over plans to expand facilities to cope with larger ships with the port company saying Stop Stealing Our Harbour is trying to “hoodwink” the public against the scheme.

The group claims Marsden Wharf can be easily removed to make room for bigger ships, but the port says this is not the case.

“The southern end of Marsden is a reclaimed structure built on solid rock,” says Matt Ball, of POAL. “Removing it and dredging the shallow basin around it is no easy task. It is a multi-year project.

“Getting consent for this would be difficult. Removing

the southern section of the wharf [declamation] is a ‘noncomplying activity’. This is the status opponents want to stop the port reclaiming any more land.”

POAL says while this idea is in its long-term plan, Marsden’s removal cannot provide the solution needed in the time available.

“Bigger ships Matt Ball are here now and more are on the way. We need berth space next year, not next decade. The extensions are needed urgently so the port can handle the ships and freight Aucklanders need.”

To create a usable berth at Marsden, POAL says it would need to remove the whole wharf,

dredge the shipping basin, build a seawall at the basin’s southern end and strengthen it at the southern end of Bledisloe.

“We have consent to demolish the northern piled section of Marsden and are removing the concrete deck,” says Ball. “The piles will remain until we can secure consent to dredge the area.

“We don’t have consent for any of the other works. Several consents would be required, including consent to declaim the reclaimed southern section of Marsden.

“Under the operative district plan declamation is a ‘noncomplying activity’, which makes consent difficult.

“The work itself is difficult.

We will need specialist dredging equipment, which may have to come from overseas. It could take a year from granting of consent to get equipment in place.”

POAL says the southern 150 metres of Bledisloe Wharf is too weak to berth ships and will need to be rebuilt, which would be a large project.

It adds it has nowhere to dispose of the spoil from dredging. “There is too much to put in our Fergusson reclamation and we don’t have consent to reclaim at Bledisloe, so the remainder would have to be dumped at sea. We don’t have consent for that.

“It is a big project with many hurdles and there is no way it could be done in 18 months as an alternative to the wharf extensions.”

Warning over websites

B

usinesses in New Zealand could have their websites bumped down Google’s search rankings for failing to meet new requirements by April 21.

The deadline was set by the search-engine giant to ensure sites are mobile-friendly. If they are not, they risked being penalised by the search-engine giant.

The requirements include websites being readable on smaller phone screens, not using software that’s incompatible on mobiles and having links spaced out to make searching on mobiles easier for users.

Fleur Revell, of Aucklandbased Impact PR, looked into the websites of the NZX’s top 50 companies earlier this month and found about half failed Google’s online mobile readiness tool.

“Businesses that can adapt rapidly to Google’s 500 algorithm changes each year will reap the rewards. Others will be relegated to virtual obscurity as their rankings

slip off the first page of Google.”

One-quarter of retail brands surveyed also failed to meet the requirements.

Revell says the biggest risk is for businesses that rely heavily on marketing directly to consumers, and those that utilise mobile searches to increase the number of people who go into premises.

“Retail is a competitive industry,” she adds. “Mobile search-driven foot traffic has become a key driver of sales.

“Sites that are mobile friendly can expect a significant boost in mobile search-engine rankings, site traffic and potentially sales.”

Google has an online test for businesses to check their websites’ mobile capability as well as tips on how they can make them more mobile-friendly.

Some high-profile international businesses have reportedly failed the test, so New Zealand is not alone in having to take the changes on board.

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news

Spotlight on insurance products P

eople working in the automotive industry need to be as up to speed as finance providers about what they need to do to comply with the responsible lending code.

The 64-page document is the latest development under the socalled loan-shark laws and – in many situations – car dealers need to get grips with the new requirements.

This is especially the case when they are classed as lenders, run their own ledgers or sell add-on products.

The code provides guidance on how lender responsibility principles included in the revised Credit Contracts and Consumer Finance Act (CCCFA) should be implemented from June 6.

The April 9 issue of Autofile covered many of its aspects in respect to loans, but the guidelines also extends to other products – such as credit-related insurance (CRI).

In a nutshell, the new rules specify that if providing finance involves the likes of extended warranties and repayment waivers, they have to be treated as part of credit agreements.

This means lenders and car dealers must be satisfied such

requirements as to the terms on which products are sold.

Section 69 of the CCCFA provides that a requirement is unreasonable if it isn’t needed to protect the lender’s interests, or is unjustifiable in respect of both parties’ risks.

“A lender can in some circumstances require borrowers to take out creditrelated insurance.” – Responsible lending code policies will meet customers’ needs.

They also need to be satisfied borrowers can make repayments without suffering unforeseen hardship and must help them reach informed decisions.

In some circumstances, providers may require customers to take out loan insurance, for example to protect a secured asset, but they must make no unreasonable

PRACTICES & PROCESSES The responsible lending code states inquiries made by lenders and their assessment of consumers’ objectives can take into account that a range of products may meet their needs.

For example, an insurance contract sold by a car dealer acting as an agent may have different features and trade-offs.

Lenders and traders don’t need

to assess if contracts best meet borrowers’ requirements, but they should be satisfied it’s likely a policy is within the range of products that will meet them.

To comply with the code and when relevant, lenders should ask about and consider:  The risks the customer wants cover for.  The length of time he or she needs it. For CRI or a repayment waiver, this should usually match the loan’s term unless the borrower has a reason.  Whether consumers have existing policies that may protect them against some or all risks for insurance over secured property or leased goods, or if the product covers potential shortfalls in existing policies.  If employment status may make borrowers ineligible to 

Rules to help borrowers From JApAn to ‘yArd reAdy’ in new ZeAlAnd - or anything in between

AutoterminAl services in JApAn

AutoterminAl services in new ZeAlAnd

< Purchasing >

257 workshops

< Auction services > < Inspection services > < Full shipping services > (as required)

257 WORKSHOP www.autoterminal.com

10 www.autofile.co.nz

through

< Full compliance >

< Repair certification > < Mechanical servicing > < Panel and paint > < Grooming >

T

he National government has unveiled a raft of regulations aimed at giving consumers all of the details they need to make informed credit decisions – in addition Paul Goldsmith to the responsible lending code.

The new rules are aimed at enabling borrowers to access information to help them compare options when accessing funds or buying goods on credit.

The regulations, which come into effect on June 6, are part of the revised Credit Contracts and Consumer Finance Amendment Act. For example, credit-card statements will have to include a minimum repayment warning that states how paying only the minimum amount each month will end up costing the customer more.

“The reforms aim to promote

fair, efficient and transparent markets, and promote competition, consumer choice and protection,” says Paul Goldsmith, Minister of Commerce and Consumer Affairs.

“Our aim is to ensure New Zealand has a market that’s effective, competitive and responsible towards consumers.”

AUCTION LAWS CHANGE New Fair Trading Act (FTA) rules apply to sales by auctioneers when fees or commissions are charged.

These are in addition to the Consumer Guarantees Act applying to goods sold at auctions and by tender.

The auction regulations require that a notice of the terms is made available for consumers to view before and during such sales.

They also state an auction starts 

news t

claim most CRI benefits.  Whether the premium –

including interest when the premium is financed by the loan – for any CRI policy is excessive when compared to the loan amount or credit limit.

Lenders must not mislead borrowers if they have a choice about taking out insurance contracts and from whom. Unless the provider requires a consumer to obtain CRI, it should explain that it’s optional.

Also, unless the lender requires the borrower to obtain CRI from a particular insurer, or the policy is the only one that effectively relates to the loan, the provider shouldn’t tell a customer he or she cannot obtain such products elsewhere.

KEY PRODUCT FEATURES The code states lenders should inform borrowers of contracts’ key features – or require insurers to do so.

This is to help customers make informed decisions so they are reasonably aware of the full

implications of signing on the dotted line.

Key features should include:  The amount of the premium or how it will be calculated.  When the premium is funded by the loan, the total interest payable or how the interest is calculated.  The cover provided and any excesses.  That exclusions apply together with clear information about where to find them in policies.  The duration of the cover if limited.  Any cooling-off period during which the borrower can cancel the policy.

In addition, lenders should ensure CRI advertising material is developed with the insurer, is based on guidance from the insurer, or is checked by the insurer to ensure the product’s description is accurate.

Log onto www.autofile. co.nz to find out more about the government’s loan-shark laws in

The Credit Contracts and Consumer Finance Act states: “If an agreement involves a repayment waiver or an extended warranty, it is to be treated as forming part of the [credit] agreement.”

This basically means the same rules apply to these warranties as actual loans.

For example, the Fair Trading Act includes provisions that assist consumers’ understanding of them.

Lenders and car dealers should refer to Commerce Commission guidance on obligations when providing extended warranties.

Visit www.comcom.govt.nz/fairtrading for more information.

the “hot topics” section accessed via the home page.

Coverage includes what needs to happen when default issues arise, fees and charges, repossessions and the MTF case.

Past issues of Autofile magazine can be accessed online.

Charging for loans The government will have to issue

a revised responsible lending code in the wake of the court of appeal’s recent judgement in favour of the Commerce Commission’s case against MTF. Lyn McMorran, executive director of the Financial Services Federation, advises that lenders need to consider how “reasonable” their fees are, such as those charged for setting up loans.

“When it comes to the level of fees being charged for consumerrelated insurance and similar products, providers need to be careful,” she says.

“What’s fairly clear at the moment is that providers cannot make profits from charging establishment fees and what’s ‘reasonable’ depends on the costs of establishing loans.

“This may result in some lenders having to reconsider what they are charging.”

The Commerce Commission has a series of factsheets and guidelines on the loan-shark laws. Visit www. comcom.govt.nz/consumer-credit for more information.

Thanks for your business!

Vendor bids must now be clearly identified by auctioneers. They need to use phrases such as “the seller is bidding” or “vendor bid” rather than jargon that’s easily misunderstood

t when the auctioneer invites the first bid and ends when he or she makes it clear bidding has closed.

A bid can be withdrawn at any time before the end of the sale and vendor bidding is permitted in certain situations.

Property is treated as being sold if it’s unsold at the end and the auctioneer accepts an offer within one working day from a consumer who attended the sale.

A vendor bid is a bid made by the seller or any person on their behalf, including agents and auctioneers.

The FTA allows an auctioneer to accept a vendor bid during an auction when the notice of sale

Extended warranties

specifies it is permitted for that lot.

Other conditions cover the setting of reserve prices and vendor bids having to be below reserve prices.

Auctioneers must clearly identify vendor bids. For example, they must say “the seller is bidding” or “vendor bid”, rather than using phrases such as “the bid is directed at me” or “the bid is with me”, and jargon must be avoided.

If an item hasn’t sold because the highest bid didn’t meet the reserve, any advertising using a vendor bid as the amount at which the property was passed in is now classed as misleading.

MTA Gift Cards are the perfect way to show customers how much you appreciate their business. You choose the card design, how much the card will be worth, and the customer you give it to can use it at any one of over 2,000 MTA service station and gift card members nationwide.

To buy an MTA Gift Card and to find the MTA members nearest to you go to

www.mta.org.nz www.autofile.co.nz

11

new cars

Showing off in the Big Apple M

ost car makers played it safe at the New York Auto Show by opting for grounded offerings focused around practical luxury.

Lightweight sedans and fuelefficient crossovers dominated the stands, but McLaren’s 570S created a buzz when it made its world debut at this month’s event.

The Sports Series completes the marque’s three-tier model range with the 570S priced from £143,250 – or about NZ$281,000.

Two examples of the 570S unveiled in the Big Apple showcased some of the customisation options available with the new “By

McLaren” designer interiors.

Weighing as low as 1,313kg, thanks in part to its lightweight carbon-fibre MonoCell II chassis, the Sports Series is almost 150kg lighter than its closest rival.

Power is provided by a 3.8-litre twin-turbo V8 engine with 30 per cent new components assisting the car to get from 0-100kph in 3.2 seconds and onto 200kph in 9.5 seconds. Its top speed is 328kph.

The “shrink-wrapped” design maximises airflow efficiency over, under

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Authorised MPI inspections

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Vehicle history reports

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09 966 1779 12 www.autofile.co.nz

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The McLaren 570S was one of the stars of the New York Auto Show

and through the bodywork.

Aerodynamically optimised dihedral doors feature “floating” tendons to channel clean air, and buttresses provide enhanced downforce and cooling.

The front bumper design is crucial to how air interacts with

the bodywork. Its pronounced point forms the centre of pressure, piercing the air to reduce drag and forming four quadrants.

Air is divided above and below the bodywork, and to either side.

The strong crease lines along the bonnet add design definition and, more importantly, aid airflow over the doors and into the side intakes to help cool the high-temperature radiators.

Below the front bumper are angled aero blades that create an area of high pressure ahead of the low-temperature radiators.

The performance traction control incorporates bespoke software to deliver more precise control in extreme situations, while the new suspension system uses adaptive dampers and anti-rollbars to ensure better levels of driver engagement on road and track.

The 570S Coupe is equipped as standard with carbon-ceramic discs, with six-piston callipers on the front and four-piston callipers at the rear.

Newly developed ABS software has been designed to optimise brake feel, while the electronic

stability control system has been developed with Bosch and includes a new “dynamic” mode, which provides reduced intervention for greater vehicle control on the limit.

For the first time on a road car from the marque, the Sports Series models feature aluminium body panels rather than composites or carbon fibre. This change reflects higher production volumes with aluminium offering superior quality of finish – especially in surfacing.

A stop-start system has been fitted for the first time on a McLaren. It offers greater efficiency during city driving, improving fuel consumption and CO₂ output.

The interior, meanwhile, is more tailored around day-to-day usability with optimised access, greater levels of stowage space and more refinement.

The Sport Series is fitted with a LCD instrument cluster incorporating turn-by-turn navigation instruction.

LUXURY SUV STATEMENT Lexus unveiled its redesigned RX in Manhattan and its aim is to redefine the medium-sized luxury sports utility market.

As the best-selling model in the brand’s 26-year history – with sales of more than 2.1 million units worldwide – the RX represents 30 per cent of vehicles ever sold by the marque.

It boasts exceptional on-road performance and new safety technologies, such as the Lexus Safety System+.

This helps avoid or reduce collisions across a range of speeds, and integrates several of the marque’s existing active safety technologies, including the precollision system that detects vehicles

new cars

Lexus says its redesigned RX aims is to redefine the medium-sized luxury SUV market

stopping ahead, lane-departure alert and automatic high beam.

The Safety System+ package utilises a radar that works with a camera for lane-keeping assist and enhances target detection for dynamic cruise control.

The front of the SUV features a new grille with a chrome-plated border and triple L-shaped LED headlamps. With the redesigned fog lamps, this gives the RX a futuristic aura. Muscular front flares add to its sporty attitude.

The rear has been sharpened and is highlighted by L-shaped tail-lights wrapped around the vehicle’s sides.

Inside, a large heads-up display takes centre stage, while the information display area – featuring a 12.3-inch monitor – has been separated from the main operations area.

Rear-seat occupants have more leg and knee room, the seats offer heating and power-reclining features, and there’s a retractable panoramic sunroof.

The upgraded and more powerful 3.5-litre V6 engine delivers 200kW, and comes mated to an eight-speed automatic transmission.

Based on this improved powertrain is the hybrid model’s Atkinson-cycle 3.5-litre V6 motor.

When combined with the electric motor, it provides about 200kW. Both engines have been tuned to achieve high fuel economy and low carbon emissions.

The RX’s body structure has been stiffened to improve handling response while keeping engine and road noise from entering the cabin.

The SUV also features vehicle stability control and vehicle dynamics integrated management.

These systems are designed to recognise potentially dangerous situations and make automatic adjustments to ensure that the RX

Jaguar’s XF has been updated

remains under full control.

All-wheel-drive improves the model’s handling and stability in all driving conditions, while a RX F Sport package will be available with all engine offerings.

The spindle grille and lower centrepiece of the rear bumper possess an “F” mesh design. The package includes new alloys, and

to its predecessor. But the new crease running through the shoulder, updated side port, and exterior lights and grille make for a strong update.

A longer wheelbase and shorter overall length provide more rear legroom, a better back seat and improved rear-wheeldrive proportions.

The chassis makes greater use of Honda’s Civic Concept

aluminium for a stiffer body, lighter weight and better performance.

TIGER NOSE TWEAKED The Optima has received global praise for its looks, and it seems Peter Schreyer and the rest of Kia’s design team for the sedan’s 2016 revamp have decided to leave them mostly untouched.

The softer sheet metal loses some of the sharp edges that made the current model a stand-out.

Fresh details include the metalwork housing of the recessed headlight bulbs and updated “tiger nose” grille, which integrates the design with the headlights.

there’s a custom F Sport instrument cluster and sport steering wheel with paddle shifters.

“We are planning to launch the new RX late this year,” says Steve Prangnell, Lexus NZ’s general manager of sales and operations.

“The exact range, specifications and pricing will be announced at that time.”

EXTERIOR MADE OVER The Civic Concept heralds the 10th generation of Honda’s compact with an amalgamation of elements that will show up on several body styles of the production car – the sedan, coupe, five-door hatchback and sporty Type R. It boasts sheet-metal wrapping a much larger footprint, while new detailing includes the grille and halo-like tail-light array.

The Civic will come with a 1.5-litre turbo-charged Earth Dreams engine and a six-speed manual.

FAST CAT SHEDS WEIGHT Jaguar has updated the XF’s exterior, interior and stance in a subtle and refined way.

At first glance, it appears similar www.autofile.co.nz

13

news

Future focus for city dealership T

eam McMillan BMW will be known as Auckland City BMW from May 1 as the business unveils its renovated showroom.

The refurbished facility in Newmarket reopened this month after the building was closed in December for the upgrades to be carried out.

The dealership’s service department has also received a refit with systems that allow vehicles to communicate directly with workshop staff as they are driven in for diagnostics.

Managing director Ian Gibson says the fit-out has given the facility with a “wow factor.”

He told Autofile the amount of time customers spend on site has dropped significantly and the makeover aims to make the most of shorter engagement times.

“It is a much more inviting

Managing director Ian Gibson inside Auckland City BMW’s showroom

and relaxing environment where people get the opportunity to select more of what they want,” says Gibson, who adds it will “future-proof” the business for the next 10 years.

“We have lots of electric and hybrid vehicles, while BMW’s i brand already shows what the future may hold.”

The dealership has also

introduced “product geniuses”, who inform shoppers about vehicles and features but don’t actually sell them.

Staff have iPads, which they use to explain how different technology works and so they can quickly reference any information customers need.

If the prospective buyer wants “to take the next step”, he or she is

then handed over to a salesperson.

The refurbishment is part of a new BMW strategy, which has seen its approach to customer interaction overhauled.

It has been modelled on Apple’s stores with a retail model that shows – rather than tells – customers about products.

“We engineer a lot of things into cars that are difficult to explain that make us a special brand,” says Peter Miles, vice-president of operations of BMW in North America.

“We need to leverage engineering that goes into vehicles more effectively, so we aren’t just selling based on price.”

All BMW dealerships across New Zealand will be required to adopt the “product genius” programme over the next two years.

Visit www.autofile.co.nz for more pictures of Auckland City BMW’s renovated showroom.

EV contest to return Nationwide delivery with depots in: Auckland  Palmerston North Napier  Wellington  Christchurch  Dunedin  

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E

Volocity – the electric vehicle competition – is returning for its second year with double the number of highschool teams entering.

Last year’s event saw 16 teams from Canterbury equipped with a componentry kit for an electric bicycle, rules and year-end challenges.

They had to design, build and compete in their vehicles at Mike Pero Motorsport Park.

EVolocity is returning in a bigger way in 2015 with sponsor support being sought for high-school teams.

The success of last year’s event has led to virtually all schools that took part returning with more entrants, while new teams are coming on board.

When surveyed, last year’s contestants commented on the benefits of being involved. They developed interests in electrical and mechanical engineering, automotive engineering and power electronics.

This year’s schools programme includes a performance category, with drag racing, an economy run, a street circuit and self-built motor controller competition.

The innovation category includes a challenge that should encourage them to create innovative technologies for driving EVs. In the show class, vehicles will be awarded points for design, bling and use of recycled materials, while the video category has the theme, “the story of our build and links to a sustainable future with EVs”.

The section on community awareness encourages teams to inform local people about their projects and end-of-year events.

The programme is being managed by Les Black, a former teacher and chief executive of Christchurch-based firm Electroflash.

Visit www.evolocity.co.nz for highlights and videos from 2014’s event and to learn about opportunities to support this year’s festival on November 28.

Tips on importing and selling G

reg Bardsley is Motorcentral’s newest team member. With a background of nearly 10 years in vehicle importing, he knows how the business works.

For me this has always been a piece of the puzzle I haven’t fully understood.

It’s a side of the trade that lives and breathes over two time zones, and dealers often tell me it accounts for many hours burning the midnight oil.

Understanding how that side of the industry works has always been of interest to me.

Over Greg’s short time with us as manager for the South Island, he has already provided me with insightful and humorous moments, as well as lessons from being in the game that may entertain and inform dealers, so I put some questions to him.

Question: Can you tell us a bit about your background with importing vehicles from Japan?

Answer: I grew up with my father running his own dealership. Our whole family is car mad, so it was a natural progression into the role.

I enjoy the relationship side of the industry and working with dealers.

As wholesalers thinned out, export agents required Kiwi staff to manage clients’ accounts, so that’s the path I took by working for two main agents in 10 years.

Q: A decade is a long time. What changes have you seen?

A: Dealers used to fly up every month, but that seems to have changed and nowadays much of the process is done online.

Q: Any predictions for 2015 and beyond?

A: There will be more focus on systems-based processes, which are also built around datamining for accuracy and better buying decisions. Unless you’re DARREN MARMONT Motorcentral Optimus Prime from The Q: Where do you see Transformers, it’s getting the agent’s role in the current to hard to store it all in your head. trading environment?

A: They’ve got to be the experts Q: I’ve noticed many dealerships and knowledge is the power play selling their vehicles before they for winning. End buyers’ tastes have arrived. Why’s that? constantly change and prices A: They are sold as pre-arrival can go up or down. Currency specials or to order to create faster fluctuations can also be the cash flow. This is mainly focused difference, so knowing how the yen through dealerships’ websites. reacts can certainly help.

Being in touch with your You still need the services of a confident buyer or agent and you need a strong relationship with that person. Like any foundation, it starts with trust and them knowing about your business.

“Some dealers are buying based on emotional decisions rather than looking at real data.”

Q: Logistics must play a decisive role in getting it right?

A: Yes, there are so many front ends to this business, such as shipping times and frequencies, MPI clearance, odometer inspections and compliance.

Every day and dollar counts.

Q: Can you give dealers some advice to help them sell more cars?

A: Presentation of stock is the key. It can never be too clean and photos should be a primary consideration. Use good pictures on Trade Me listings and all available photos.

I still get dealers saying they list minimum information on cars because they think they will get phone calls to find out more, but it doesn’t work like that now. Buyers need to find what they want on listings or they will search elsewhere.

SOME EXTRA POINTERS

– Greg Bardsley

Agents are your eyes in Japan, so trust in quoting correctly is important. They are working alongside you as partners in your business, so they are more than just suppliers.

would never sell Subarus because they didn’t like them even though they’re popular in New Zealand.

This shows some dealers are buying based on emotional decisions rather than looking at real data, while yellow cars have always been hard to sell so they would have to be non-favourites.

previous customers through good dealership customer relationship management will provide opportunities to make differences every month. It’s often easy to attach finance and insurance products through this type of marketing too.

Q: You must have a favourite and non-favourite import that stands out?

A: Dad always sold Subarus, so they are a favourite for me. Over the years, many traders have told me they

Buying smart at the front end is essential for success. Old “stockers” on yards are financially draining and can curb enthusiasm every time you look at them.

The use of data-mining to determine the best vehicles to buy based on previous successes and existing client bases appears to be where the future is heading.

Understanding logistics and processes for purchasing imports, and sensible stock selection, will also improve bottom lines.

Motorcentral’s dealer management system integrates with all major importers into New Zealand. Talk to your agent or buyer today – they’re as passionate about imports as we are.

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www.autofile.co.nz

15

regional report

T

he outlook for Wanganui is positive with its strong rural sector and steady manufacturing base helping to boost demand for motor vehicles.

The area’s economy as a whole grew by 18.1 per cent between 2009 and 2014, while its gross domestic product rose by 5.6 per cent thanks largely to a strong dairy, sheep and beef farming sector.

“We rely on the rural sector and also get a lot of sales from people working at meatworks located around the region,” says Gareth Jones, sales manager of David Jones Motors.

While dairy prices have been dropping recently, Ken Williams, dealer principal of the Ignition Motor Group, explains the westcoast town is more immune to market volatility than some other parts of New Zealand.

“The impact of fluctuating dairy prices doesn’t affect us as much and most of the countryside around the town is too steep for dairying,” says Williams, whose business holds franchises for Holden, Kia and Mitsubishi.

“We have a lot of sheep and beef farms in our region, and they seem to be doing well.”

The average home price is $182,000 in Wanganui. Compared to the national median average of

Mixed economy boosts sales

The Whanganui River looking down to Dublin Street Bridge

$415,000, this makes it one of the to what businesses pay in a city, cheapest places in the country to such as Palmerston North or purchase a house.

Hamilton.

“A lot of people “Businesses that don’t here aren’t on the need to be in Auckland big money like those and Hamilton should working in Auckland,” consider moving here says Pieter Van Zyl, of because the low price Integrity Motors. of rent really improves “You can live down the amount of money here like a millionaire on your bottom line,” while earning between Ken Williams, dealer principal says Richard Nessling, of the Ignition Motor Group $50,000 and $60,000 dealership manager of per year.”

Wanganui Toyota.

Rents for commercial properties On top of all this, the job market are also much cheaper compared across the region is performing

Used car sales for Wanganui - Mar 2014 to Mar 2015 Public to Dealer

Public to Dealer to Public Public

Total

Public to Dealer %

Wanganui vehicle sales - Mar 2014 to Mar 2015

Public to Dealer to Public % Public %

Mar ‘14

128

436

208

772

16.6%

56.5%

26.9%

Apr ‘14

120

432

173

725

16.6%

59.6%

23.9%

May ‘14

147

436

175

758

19.4%

57.5%

23.1%

Used cars

New Cars

Used New Commercials Commercials

Mar ‘14

66

60

2

36

Apr ‘14

64

52

2

9

May ‘14

76

51

1

22

Jun ‘14

80

77

0

42

Jul ‘14

74

64

1

23

Aug ‘14

74

59

3

29

Jun ‘14

143

398

169

710

20.1%

56.1%

23.8%

Jul ‘14

130

474

186

790

16.5%

60.0%

23.5%

Sept ‘14

95

65

6

22

Oct ‘14

73

42

4

29

Nov ‘14

62

50

1

23

Dec ‘14

68

93

4

31

Jan ‘15

72

72

8

15

Feb ‘15

87

43

2

26

Mar ‘15

71

76

6

40

896

744

38

311

NZ sales past 12 months 133,661

91,817

8,033

37,288

Aug ‘14

106

437

172

715

14.8%

61.1%

24.1%

Sept ‘14

145

435

177

757

19.2%

57.5%

23.4%

Oct ‘14

109

398

182

689

15.8%

57.8%

26.4%

Nov ‘14

96

385

154

635

15.1%

60.6%

24.3%

Dec ‘14

102

444

178

724

14.1%

61.3%

24.6%

Jan ‘15

114

446

182

742

15.4%

60.1%

24.5%

Feb ‘15

149

445

156

750

19.9%

59.3%

20.8%

Mar ‘15

142

506

207

855

16.6%

59.2%

25.2%

Annual total

1,503

5,236

2,111

8,850

17.0%

59.2%

23.9%

Change on March 2014

10.9%

16.1%

-0.5%

National YTD average

16 www.autofile.co.nz

18.4%

57.3%

24.3%

12-month total

% of national sales

0.7%

0.8%

0.5%

0.8%

Change on March 2014

7.6%

26.7%

200.0%

11.1%

Population

New Zealand

Wanganui

%

4,242,051

42,150

1.0

strongly with vacancies up by 9.8 per cent, although employment fell by 0.7 per cent in the December quarter.

Meanwhile, exports from the area have gone up by 5.2 per cent, which was the second largest increase of any region during the reporting period.

Wanganui is also home to a number of innovative and booming manufacturing businesses.

They include Tasman Tanning, which has an annual turnover of $70 million. It produces and exports leather for the interiors of Ranger Rovers, Audis and Mercedes-Benzes. Another is Pacific Helmets, which is one of the world’s biggest suppliers of emergency helmets.

NEW VEHICLE SALES UP Wanganui recorded 744 new car sales between April 2014 and March 2015. Last month, there were 76 registrations, which were up by 26.7 per cent compared to the same month of last year.

The Watt Fountain on Victoria Street is a memorial to Wanganui’s first mayor, William Hogg Watt



regional report

Brothers Gareth and Nick Jones, of David Jones Motors, which holds a franchise for Suzuki and has an extensive range of used vehicles

t

“I have been here for three years as the owner of the business and it’s a totally different market now,” says Nessling.

“I have been watching it grow over the past couple of years. Since I’ve started here, our sales have increased by about 22 per cent.”

At the end of this quarter, the dealership’s sales were up by 35 per cent compared to the same period last year.

“A lot of this comes off the back of the pricing for new cars – they are getting easier and easier to own.”

Nessling says word of mouth is the main way his dealership is promoted around town.

“Our farmers’ market was voted number one in the country and a lot of business is done down there by just walking around talking to people,” he explains.

“It’s a small-town thing getting out there and talking to people in the community. If you sell a car in Auckland, you’re lucky if you see a client again.”

Sales of new commercial vehicles amounted to 311 in the 12 months to March. Last month, 40 units were registered and that was an 11.1 per cent increase on the same month of last year.

Meanwhile, permits for commercial building permits have rocketed by 82.4 per cent compared

Integrity Motor Company’s premises in Wanganui

used vehicle business – sales have to the national average of 16.7 in gone up by one unit during the the 12 months through to February. year-to-March reporting period.

“There has been a lift in “We’ve changed the business confidence way we do things with and there is building our used cars. We now going on, plus the have a separate yard for manufacturing guys are vehicles priced $15,000 flat out,” says Williams. and under, and have 25 “All of this bodes well units sitting there.” for our market.”

Nessling adds: “A lot LIFESTYLE IS THE KEY of commercial vehicle Richard Nessling, of Car dealers in Wanganui sales have been to Wanganui Toyota contacted by Autofile business owners with one or two cars in their fleets, while all agree it’s a great place to live and work. farmers don’t seem to want to “The schools are good, you spend their money at the moment.” don’t have to drive for miles to get

anywhere, there are great markets over the weekends and the cost of living is so much cheaper than anywhere else,” says Jones.

Williams adds: “People here are quite comfortable financially and many own a home of their own, as well as a couple of nice cars and a boat. They can afford to take their holidays and have bloody good lifestyles.”

“It’s a go-easy little town,” says Nessling. “People need to come here to have a look before they judge it.

“Where else in New Zealand can you buy a great house for $100,000?”

USED CAR MARKET The number of used imports sold in Wanganui over the past 12 months came to 896 units with 71 being registered during March this year.

This was up by 7.6 per cent on the 66 units sold in March 2014.

“We are importing five to 10 Japanese vehicles each month, as well as retailing the trades,” says Jones. “The majority of used vehicles we sell are priced between $5,000 and $15,000.”

In recent months, customers have come from as far away as Timaru to purchase used vehicles from Jones’ dealership.

Nessling says a strong new vehicle market hasn’t affected his

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17

Vehicles wanted dealers Buying now

News in brief Global sales show electric cars starting to pick up

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

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advertising@autofile.co.nz or ph 021 455 775

Kiwis gear up for Brazil

T

he automotive industry was well-represented in the New Zealand team at what’s dubbed the Olympics of the Trades.

The Kiwis went home with eight gold, eight silver and two bronze medals from this month’s event at Wintec, Hamilton.

The 23-strong team took on 102 competitors from Canada, India, Malaysia, China, Australia and Korea over three-and-a-half days in 30 skill categories.

Gold-medal winners from the motor-vehicle industry included David Fox of Hamilton for body repairs, Invercargill’s Jeff Sutton in automobile technology, Luke Tahurangi of

18 www.autofile.co.nz

Wainuiomata for car painting.

Hamilton’s Chelcie Kuriger took silver in automobile technology as did Rowan Cumiskey of Auckland for car painting.

Bruce Howat, chief executive of WorldSkills NZ, says: “All of our medallists scored more than 500 points to put them in the top five to seven per cent for the international competition in Brazil.”

For the Kiwis, it was an intense challenge with a lot at stake – not least of which was a seat on the plane to Sao Paulo for the WorldSkills International Competition in August.

The organisation has been around since 1950. It has 73 member countries and represents 45 skills.

A report has revealed how quickly the world is taking to electric vehicles (EVs) with 43 per cent of all electric-powered cars ever produced being sold last year.

However, the Centre for Solar Energy and Hydrogen Research in Germany says 320,000 sales of EVs in 2014 accounted for less than half of one per cent of the 85 million new vehicles registered globally.

Norwegians more than doubled their EV fleet last year to 43,400 to lead the world with a 1.6 per cent market share.

The US topped the total numbers, but with a market share of less than one per cent. Americans bought 117,000 all-electric cars last year and 290,000 are now in service there.

The report says countries have high EV uptake when buyers receive government subsidies, while Nissan’s Leaf is the world’s best-seller.

Front-runner for Top Gear job received death threats James May has hit out at people threatening British television host Sue Perkins after media speculation she may replace Jeremy Clarkson as Top Gear’s lead presenter.

Perkins, pictured, hasn’t been offered the job, but has already been subject to online attacks and has deleted her Twitter account because of them.

May, whose future on the show is also in question, tweeted: “If you’re sending death threats, do the world a favour by killing yourself. Obviously, I don’t actually want people to kill themselves, but we don’t want them as fans.”

Perkins is an actress and comedian, who co-hosts a daytime talk show Mel and Sue with Mel Giedroyc.

Model Jodie Kidd is another favourite to replace Clarkson. Others include Dermot O’Leary, an ex-presenter of The X-Factor in the UK, and Philip Glenister, an actor in the TV series Life On Mars and Ashes To Ashes.

German marque lands three awards in New York Mercedes-Benz scooped the World Car of the Year title thanks to its C-Class sedan, pictured.

It was one of three awards the German marque took back to Europe from the New York International Auto Show.

Its S-Coupe won the luxury car category, while the AMG GT took out the performance car title.

BMW’s i8 electric vehicle was voted best green car and Citroen’s C4 Cactus was successful in the design category.

Sales record beckons across New Zealand market Vehicle sales in the first quarter of this year have increased by 14 per cent compared to the first three months of 2014.

There were 24,853 new and used imported passenger and commercial vehicles registered in March – 12 per cent more than the 22,099 units sold in the same month of 2014. For 2015’s first quarter, 70,086 units were registered for a 14 per cent increase on last year.

Warwick Quinn, chief executive of the Motor Trade Association, notes that in March five of the six top-selling new vehicles were utes.

“This gives real insight into what Kiwis want their vehicles for and the types of experiences we’re pursuing,” he says.

Visit www.autofile.co.nz for more industry statistics.

new vehicles

Technology to rev up success

The new Mazda CX-3

M

azda’s first CX-3 has been fitted with classleading features and advanced SKYACTIV technology.

The marque believes it rivals anything in the small SUV class by including communication through its MZD Connect system.

The CX-3 also raises the bar in driving dynamics thanks to advances in the lightweight body, fine-tuned chassis and powertrains.

Mazda’s next-generation humanmachine interface (HMI) focuses on safety with the cockpit design based on a heads-up concept to

help motorists process information while maintaining the correct road position and driving safely.

The active driving display, which is mounted on the meter hood of the GSX and Limited variants, shows vehicle speed, turn-by-turn directions from the navigation system and information in real time.

Many features can be controlled through the “commander control”, which is operated by touch or by voice commands, while MZD Connect makes it safer and easier to take advantage of functions, such as internet

More choices with van

T

he Hiace’s refreshed lineup for 2015 features the best-standard specification and model choice in its history.

Commanding 41 per cent of the New Zealand van market, it now comes with new exterior body-style options, revised interior-trim detail and enhanced safety specifications “Hiace customers spend a lot of time in their vehicles, so offering a broad range that meets comfort and safety requirements is paramount,” says Neeraj Lala, Toyota NZ’s general manager of product.

The Hiace also boasts traction, brake assist and hill-start assist control.

Its full and half-panel body

styles join the line-up to give tradies extra practicality and onboard security.

The four-door full and fivedoor half-panel styles arrive in ZL specification, with wide-opening and easily accessible side doors for quick access. The full-glass partition is still available in the ZL and ZX. The ZL comes with a 2.7-litre petrol or three-litre diesel engine with manual and automatic transmission options.

The half-panel variant is the only exception and comes with a diesel engine.

Load space measures 3,470mm in length by 1,730mm in width and 1,635mm in height across the Hiace range, which is available now priced from $46,830.

The Hiace ZL

connectivity and social networking.

Superior linear handling and control comes from the chassis with balanced suspension boosting comfort and agility.

The optimum setting for the steering gear ratio stabilises roll characteristics and improves response when cornering.

The SKYACTIV-G two-litre engine has a high compression ratio of 13.0:1 to deliver 109kW at 6,000rpm and 192Nm at 2,800rpm with fuel economy of 6.1l/100km in four-wheel-drive or 6.7l/100km in all-wheel-drive (AWD).

The SKYACTIV-D 1.5-litre diesel

produces more torque than a 2.5-litre petrol engine while delivering class-leading economy of 5.1l/100km. It can provide 77kW of output and 270Nm of torque.

Both engines feature Mazda’s i-stop idling stop system. The newgeneration AWD system, which employs an active torque control coupling first used on the CX-5, is available with the CX-3.

The engines are mated to sixspeed automatic transmissions in all grades and the petrol engine has sport mode.

The CX-3 line-up is available now from $31,195, plus on-road costs.

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

19

Industry movers NZ labour market report CRAIG ROSS has left his position as managing director of Manheim New Zealand.

Ross, pictured, joined the company in May 2013. He previously worked for First Assistance, LeasePlan NZ and LeasePlan Emirates.

Manheim Australia’s policy means the company will give no comment on the reasons for his departure.

ANDREW SHERLIKER, national operations manager, has become acting managing director for the Kiwi business.

He joined Manheim NZ after working for Accident Exchange and the Styner Group in the UK. Before that, Sherliker was regional manager of Manheim Europe from 1998 to 2005.

SIMON ROSE, divisional manager for Citroën with Sime Darby Automobiles NZ, has been appointed as divisional manager for New Zealand for the Peugeot, Citroën and DS brands.

It is part of a restructure that will see the company’s distribution division that controls PSA Group products here being led from Australia, with Grant Smith’s position as general manager and director being disestablished.

Rose will report to John Startari, the Australian general manager and director for the brands.

The Kiwi business and product ranges will remain independent and focused on the local market.

JOHN MANLEY, managing director of Nissan New Zealand, has taken over from Andrew Clearwater, John Manley Glynn Tulloch Corey Holter of Mazda NZ, as president of the Motor Industry Association.

Manley takes considerable experience and industry knowledge into the role. He was previously one of the association’s two vicepresidents.

GLYNN TULLOCH, managing director of European Motor Distributors Ltd, has been reappointed as one of two vice-presidents.

COREY HOLTER, MD of Ford Motor Company of NZ, has taken on the other vice-president’s position.

DARYL McINTYRE, pictured, has been appointed as AUTOHUB’s managing director for Australia as part of changes to the company’s operations there.

Otis Cooper is operations manager and Brett Lawrence becomes customs manager.

The shipping and logistics provider aims to open a new office in Melbourne later this year.

JOHN ABBOTT has been appointed branch manager for Advantage Cars in Manukau, South Auckland.

Abbott has been in the industry for nearly 30 years. Prior to taking on his new role, he worked at Advantage Cars’ branch in Penrose.

TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ 20 www.autofile.co.nz

New Zealand’s employment on the West Coast on $59,793. market is set for another solid Twelve out of 15 regions year of growth, according to an showed growth in listings, analysis of more than 54,000 roles including the Bay of Plenty, listed on a website in the first Marlborough and Otago – up quarter of 2015. by 26.8, 26 and 14.7 per cent Peter Osborne, head of Trade respectively.

Me Jobs, says vacancies across Taranaki and Gisborne joined the country increased by 8.5 per Wellington’s decline in listings cent year on year. on last year, with numbers “Last year was a cracker, so it’s down by 19 and three per cent good to see that trend continue,” respectively. he says. “It’s also wonderful to Construction and architecture see job hunters are the most vacancies have jumped by 33.9 optimistic they’ve been since per cent. the recession according to latest “Growth in this industry is at research.” an exceptional rate, reflecting Osborne notes “a definite last quarter,” says Osborne. “We slowdown” over the last 10 suggest tradies in the market for days of the opportunities quarter, most keep their eyes likely caused by open as jobs in the end of the trades and services financial year, went up by eight Easter looming per cent.” and “Black Cap Year-on-year fever”. increases in the He says first quarter of Auckland is 2015 compared “full steam to same period ahead” for early in 2014 included 2015 following accounting by strong growth in 10.7 per cent, listings. automotive by Peter Osborne, head of Trade Me Jobs “Advertised 10.3 per cent and jobs there went up by 16 per customer service by 5.1 per cent. cent compared to the same time Engineering rose by nine last year. It’s encouraging to per cent, executive and general see the biggest contributor to management went up by 13 per the employment market thrive cent, office and administration and we expect this trend to fell by 10.6 per cent, retail continue.” increased by 6.1 per cent, sales Canterbury and Wellington dropped by 1.5 per cent, and showed “more muted” results. transport and logistics jumped “Listings in Canterbury were by 13 per cent. up by six per cent year-on-year.

Looking ahead, Osborne says: Compared to the last quarter’s 10 “Towards the back end of 2014 per cent rise, it’s more subdued there was some uncertainty as but the rebuild continues to to whether 2015 would start drive activity.” strongly with consumer and Wellington has “dipped into business confidence indices negative territory” with roles undecided on growth prospects. listed down by six per cent.

“The first three months of It wasn’t all doom and gloom the year are traditionally when in the capital with the region we see the highest number boasting the highest average fullof jobs advertised and are a time salary of $76,317, ahead of good indication of the short to Auckland City on $73,448 and Grey medium-term trend.”

f & i focus

Get to grips with legal changes Y

ou many ask yourself how legislation in respect to door-to-door sales can encompass the car industry.

But did you know about the changes to the Fair Trading Act 1986 with regard to uninvited direct sales?

These really did slide in quietly, and there are potentially huge monetary costs if your dealership is taken to task for failing to follow correct processes and procedures – or for being unable to show they have been adhered to.

The monetary costs come in the form of fines from the Commerce Commission for up to $30,000 for businesses and a maximum of $10,000 for individual salespeople.

Also, customers now have rights to return goods without any reason and expect full refunds in connection with new legislation directed towards telemarketing and door-to-door sales.

The bottom line PROTECTA Insurance is that cooling-off has a dedicated trainer periods for purchases currently running of vehicles may be breakfast meetings unlimited if you haven’t across New Zealand on followed recommended uninvited direct dales procedures.

– and the effect these If staff at your legislative changes will business are working mean for you and your Ray Meharg National sales manager their databases, and dealership.

Protecta Insurance phoning both past and You will come away current customers, you may from one of these meetings be classed as operating with the knowledge and under the door-to-door, tools to implement the telemarketing and correct processes. uninvited direct sales Another hot topic, section of the law and therefore must comply with certain rules.

I hope I have your attention about these issues, but do you want to know more?

“There are potentially huge monetary costs if your dealership is taken to task.”

which we will also discuss at these events, is the implementation of the responsible lending code.

These guidelines have recently been released as part of the revised Credit Contracts and Consumer Finance Act 2003.

We include a few discussion points at these breakfast meetings that will directly affect the way you do business.

Let’s not be the industry that feels the wrath of the Commerce Commission.

And let PROTECTA help to ensure you comply with amendments to the Fair Trading Act 1986 and Credit Contracts and Consumer Finance Act 2003.

Contact your sales consultant to find out more. You can also get in touch with Erin Mills, our business coach, on 021-807-148 or email her at erin.mills@protecta.co.nz for more information.

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New Used

Worst result: $ 4 02

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26%

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18%

15%

13%

17% 11%

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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

21

disputes

Case transferred because tribunal unable to rule on dealer disputes Background On May 1, 2014, Allan Ma agreed to buy a new Audi Q7 S Line Plus from Viking Motors in the UK for £43,500, including delivery. The trader was paid a commission by the overseas supplier.

Ma said it was a term of the contract the car would have certain features, but that when it arrived from the UK it didn’t have them. He claimed to recover their value, which he said were worth $4,400.

The dealer said it didn’t sell UK imports to retail customers, but only to motor vehicle traders.

It only agreed to broker the sale because Ma told them he was a trader and gave a dealer number as evidence he was one.

The seller denied it agreed to supply the car with the features as claimed and said their UK value was £975.

The case The issues raised were if the tribunal had jurisdiction to hear the case. If so, did the trader promise to supply the buyer with the features as claimed, were they supplied and, if not, what damage the purchaser had suffered?

Section 89 of the Motor Vehicles Sales Act (MVSA) states the tribunal may determine applications in respect of selling vehicles under the Sale of Goods, Fair Trading, Consumer Guarantees and Contractual Remedies Acts.

The tribunal cannot deal

with cases based on contracts and only has jurisdiction under section 90 of the MVSA if one party is a registered motor vehicle trader.

Neil Furst, the dealer’s director, was first contacted by Ma in March or April 2014 about importing an Audi Q7 and said it only sold cars to other dealers.

He added Ma told him that he was a dealer and supplied him with a trader number.

Ma didn’t deny telling Furst he was a dealer, but said he hadn’t imported cars from overseas.

Furst said the dealer acted as a broker for Viking Motors and there were no ownership connections between them.

He sent Ma offers of various Q7s last March, but those cars became unavailable before a sale could be made.

They exchanged emails on May 1. The first offered Ma a car with “KA4 (with front and rear view camera) in stock, PG8 (21x10J five-seg-spoke in titanium), 3FV (panoramic glass roof, tinted), 4A4 (heated front/ rear seats), 8RY (BOSE surround sound system)”.

Ma replied: “Have you got a proper specs or photos?” He later emailed: “Further to our conversation, I would like to go ahead if it can be dropped to under £43,500.” The trader said: “I think £43,500 will be achievable if I take both, which I will. Can you go to that?”

Ma replied: “Do you think

that’s the best you can do?”

The dealer said: “Pretty much.

I did want over £44k.”

On May 10, Viking Motors invoiced Ma for £43,500 and said payment was to be made within seven days at a UK bank, details of which were provided.

Ma arranged to do this and the car was delivered to an agent in Felixstowe, which arranged for transportation to New Zealand.

When the vehicle was being complied, the wheels had to be removed but were secured with a locking nut.

Ma tried to find the key to unlock the nut and discovered the car didn’t have a Bose surround-sound system. He also found the rear seats weren’t heated and there was no side camera.

He produced a price list for Audi options, which showed front and rear cameras cost $1,000, the heated front and rear seats were $900, and a Bose system was $2,500 – a total of $4,400.

The trader said several vehicles were offered to Ma and didn’t accept it agreed to supply the features claimed by the buyer, but produced no other contracts to support this.

The dealer claimed the front and rear parking cameras cost £250 in the UK, heated front and rear seats were £140, and the Bose system was £585 – a total of £975.

These features, according to the trader, could not be retrofitted

FINDING IT HARD GETTING A

MESSAGE TO YOUR TARGET MARKET?

22 www.autofile.co.nz

buyer of an Audi The case: The sold with certain

claimed it was features missing that the trader agreed would be supplied. The dealer said it didn’t sell UK imports to retail customers and the only reason it agreed to broker the sale was because the purchaser said he was a registered trader.

n: The tribunal The decisiojuris diction to ruled it had no determine the application and transferred the case.

r Vehicle Disputes At: The Motoland .

Tribunal, Auck

and didn’t materially add to the vehicle’s saleability or value.

The finding The tribunal didn’t consider it had jurisdiction to determine the application.

It believed Ma probably held himself out to the dealer as carrying on the business of motor vehicle trading and was therefore to be treated as a trader in terms of section 8(1)(a) of the MVSA. Section 90(1)(a) of the MVSA states the Motor Vehicle Disputes Tribunal is unable to hear claims between car dealers.

Also, the matter in question between the two parties was a contract claim.

The essence of the buyer’s application was the dealer failed to adhere to the terms of the contract it made on May 1 by not supplying the car with options the trader had promised to supply in its email sent to the purchaser.

Order The claim was transferred to the Disputes Tribunal.

disputes

Buyer loses case because car lasted as long as could be reasonably expected Background On July 4, 2014, Matt Brider bought a 1996 BMW 318i from Turners acting as agent for Stephen Hill Motors for $1,700.

Brider said the engine was damaged beyond repair after overheating. He claimed the vehicle failed to comply with the Consumer Guarantees Act (CGA) and sought an order for a refund.

The dealer said a pre-purchase condition report prepared by Turners and displayed with the car stated it had a fault with its cooling system, so it didn’t fail to comply with the CGA because of that.

The trader believed the car was as durable as a reasonable consumer would regard as acceptable.

The case The vehicle was offered for sale

by Turners as the trader’s agent.

Andrew Hollywood Motors inspected it and completed a prepurchase condition report dated June 26 in a format set out by the auction house.

Its odometer reading was 185,296km, its registration had expired and its warrant of fitness was due to expire on October 26.

The report added the next service was overdue and listed some faults, such as engine oil and rear differential leaks and movement in the front-right wheel.

Below that was a note saying the report wasn’t a warranty, but only a guide and the vendor recommended a full inspection prior to purchase.

There was a list of the vehicle’s systems with a pass or fail box. Under “cooling system”, there were fail ticks alongside “coolant condition”, but passes for “performance” and “radiator/ hoses (visual)”.

Brider read the report before buying the car. He claimed Turners’ sales consultant, Mr McKenzie, told him and his mother that the faults were minor but McKenzie denied saying this.

Brider drove it from July 4 until October 2 when the engine overheated. Apart from topping up the coolant with about 100ml of water in the first two weeks, he did nothing to the car, had no faults fixed and didn’t have the overdue service attended to.

When driving from his home in Akina to Bridge Pa on October 2, he smelt burning oil, and stopped and checked the engine and coolant.

Brider couldn’t see any oil leaking and the coolant level was fine. He carried on and suddenly a cloud of steam came from the engine, so he had the car towed.

Max Scott Motors’ report of October 9 following an inspection revealed a cylinder-head water leak and a compression test gave virtually no readings.

It assumed there was a cracked or distorted cylinder head and blown head gasket.

The repair cost was estimated at about $3,000.

Max Scott Motors told Brider the heater hose had come away causing the loss of coolant and

Call

engine to overheat, and Turners was unwilling to accept any responsibility.

Brider found out Turners sold the car for the trader and sent the dealer a letter dated October 14 asking for a refund or replacement engine.

His letter stated there was major water at the back of the motor by the rear-cylinder heads and oil was leaking from the rocker cover.

“According to the mechanic, the rear hose came off while driving,” he wrote. “Water poured from the motor causing the vehicle to overheat. Excessive smoke started coming out and the rings had gone.”

The trader sent Brider a copy of the pre-purchase report, and said it didn’t have liability for repairs when the condition of the engine and other items were detailed before he bought the vehicle.

McKenzie said that before Brider bought the car his mother asked if Turners could give any guarantee and he replied that wasn’t possible.

Brider made an offer that McKenzie passed to the trader, which was accepted. McKenzie denied saying the faults on the report were minor.

Mr K Phibbs, representing the dealer, said the car’s service was overdue when it was sold unregistered.

He said the cooling system was low when supplied, and Brider was aware of that and didn’t have the vehicle serviced post-purchase.

r said his The case:neThewasbuye damaged

vehicle’s engi beyond repair when it overheated.

He claimed it failed to comply with the guarantee of acceptable quality in the Consumer Guarantees Act and wanted a refund. The trader argued it was as durable as a reasonable person would regard as acceptable for its age, mileage and price.

n: The tribunald The decisiothe vehicle lacke

didn’t consider durability and dismissed the claim.

At: The Motoer.r Vehicle Disputes Tribunal, Napi

The trader didn’t consider it should be responsible for the car three months after sale and after Brider had driven 1,232km in it.

The finding The tribunal considered certain circumstances as relevant when it was supplied – the vehicle was unregistered, it was overdue for a service and had faults.

The BMW was poorly maintained and it would have come as no surprise to a reasonable consumer that at any time its cooling system could fail.

Brider was told a heater hose at the back of the engine had failed and he gave this as the cause of the failure in his rejection letter.

The tribunal ruled the car complied with the CGA’s guarantee of acceptable quality.

It also considered it lasted about as long as any reasonable consumer paying only $1,700 for a high-mileage, 18-year-old and poorly maintained import that was overdue for a service would expect it to last.

Order The application was dismissed.

- we can help

Getting the auto industry’s attention for more than 25 years Contact Brian McCutcheon

|

p: 021 455 775

|

e: brian@autofile.co.nz www.autofile.co.nz

23

co

he

d

Biggest Increases/Decreases by town year-on-year

un

(March 2015 vs March 2014)

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 Hamilton Thames Tauranga Rotorua

M a rc

Biggest Increases

New Used Westport  50.0% Westport  71.4% Rotorua  46.4% Greymouth  41.9% Greymouth  43.8% Dunedin  40.3%

New Used Gisborne  15.0% Oamaru  20.0% Dunedin  13.2% Blenheim  18.5% Hamilton  10.6%

h 2 0 15

Biggest Decreases

Passenger Vehicle Registrations

Used Vehicle Registrations

New versus Used

North Island versus South Island Used

12,313

12000

9,764

9000 8000

11000

North Island

7000 6000

10000

5000

9000

4000

New

8,075

8000

3000

South Island

2,549

2000

7000

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

AUG ‘14

Jul ‘14

Jun ‘14

May ‘14

Mar ‘14

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

AUG ‘14

Jul ‘14

Jun ‘14

May ‘14

Apr ‘14

Mar ‘14

Apr ‘14

1000

6000

Used Import Passenger Vehicle Registrations by City

Auckland, Wellington, Christchurch

Hamilton, Tauranga, Dunedin, Palmerston North

6000

6,097

5500 Auckland

5000

700

4500

Hamilton

600

4000 3500

Christchurch

1,611

1000

977

200

355 323

Palmerston North

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Jul ‘14

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Sep ‘14

Wellington

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25

www.heiwa-auto.co.nz

Used imports hit nine-month high

T

he number of used passenger vehicles imported into New Zealand continues to surge and amounted to 14,797 units last month.

This was a jump of 31 per cent when compared to March 2014’s total of 11,254 and was the highest since May last year when 16,450 used cars crossed the border.

There were a total of 34,947 used passenger vehicles imported into New Zealand during the first quarter of 2015.

This was a 19.8 per cent increase compared to the same period last year when 29,154 units came in.

During quarter one of 2015, 33,179 units were imported from

Japan, which was up by 5,617 vehicles – or 20.3 per cent – on 2014’s year-to-date total of 27,562.

The number of imports from Australia rocketed by 51.5 per cent, or from 710 to 1,076 units, over the same timescale.

Those from the UK amounted to 281 during this period, which was a sharp drop of 41 per cent from 483 during the first quarter of last year.

The US accounted for 259 imported used cars, up by 30 units, while 78 came in from Singapore – an increase of 25 units.

Graeme Macdonald, of Westwyn Trading Company in West Auckland, says: “The margins in used imported stock as a sole trader are

reasonably difficulty to maintain.

“Recently, I have been focusing on domestic stock instead. It’s not a long-term plan, but because of being a sole trader I can be flexible as to how I run my business.

“If there is a niche in a particular import tomorrow, I can move quickly enough into that section of the market.

“As a sole trader, I don’t have the benefit of finance and insurance to account for lower margins.”

Macdonald, who is also North Island chairman of the Imported Motor Vehicle Industry Association, says it is easier to make money on cars when the yen is lower in value.

“Everybody starts buying cars

when the cross-rate with the yen is in the 90s,” he told Autofile.

“The marketplace doesn’t adjust in terms of volumes sold and that creates an enforced appreciation on stock that’s already here.”

He adds another factor influencing the drop in margins on used imported stock is the growth of a number of high-volume and low-margin dealerships.

Meanwhile, the number of used commercial vehicles imported into New Zealand totalled 560 in March.

This was an increase of 34.9 per cent compared to the same period in 2014 when 415 units were recorded with the year-to-date figure coming to 1,434.

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

2015

9000

2014

8000 7000 6000 5000 4000 3000

2013 2012

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Import Passenger Vehicles By Country Of Export 2015

Country of Export Jan ’15

Feb ’15

Australia

258

418

Great Britain

114

2014

2013

Mar ’15 Mar Market Share %

2015 Total

Q1

Q2

Q3

Q4

2014 TOTAL

MRkt Share

2013 total

MRkt Share

400

2.7%

1,076

710

811

729

917

3,167

2.3%

1,990

1.9%

88

79

0.5%

281

483

441

450

511

1,885

1.4%

2,908

2.7%

9,650

9,372

14,157

95.7%

33,179

27,562

38,446

29,306

35,456

130,770

95.0%

100,784

93.9%

Singapore

30

31

17

0.1%

78

53

64

62

73

252

0.2%

146

0.1%

Usa

80

60

119

0.8%

259

289

298

368

323

1,278

0.9%

1,205

1.1%

Other countries

23

26

25

0.2%

74

57

50

49

130

286

0.2%

251

0.2%

10,155

9,995

14,797

100.0%

34,947

29,154

40,110

30,964

37,410

137,638

100.0%

107,284

100.0%

Japan

Total

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

26 www.autofile.co.nz

Reliable Servicing New Zealand for 20 years

Proud to sponsor the SecondHand Car Sales Statistics

Second-hand car sales rise L

ast month was positive across the board for registrations of secondhand passenger vehicles.

There was a 3.4 per cent increase in dealer-to-public transactions from 16,925 to 17,501 units when comparing sales in March to the same month of 2014.

Trade-ins also recorded a healthy increase from 12,997 to 13,959 units – up by 7.4 per cent – while private sales rose by 7.5 per cent from 40,819 to 43,898.

Hayden Johnston, of Genuine Vehicle Imports in Penrose, Auckland, says: “About one-in-five people come to us when they have had a bad experience with backstreet traders.

“The Commerce Commission is cracking down a lot on these guys.

It’s going to be more stringent on cellphone sim cards and issue substantial fines if they don’t comply.

“We are trading well, but the commercial reality is there will always be sub-standard players in the market that interfere with the process.

“Obviously, Auckland’s increased population has been a big part of our sales, but we also have very good repeat business – more than 40 per cent of our sales are to repeat customers or come from referrals.

“However, a booming property market puts pressure on dealers’ rents, which is why we’ve seen a lot move out of Newmarket and Greenlane.

“With the advent of the internet, businesses are less likely to need such prominent sites.

“We are going to stick to our game plan and deliver good quality vehicles, but we are always looking at ways to improve our business model.”

Nigel Thomson, of Nigel Thomson Motor Company in Christchurch, says the first three months of 2015 have beaten what his business has achieved before.

“There are a lot of time constraints for people in Christchurch,” he adds.

“Many people don’t want to wait for a vehicle from Auckland and want to drive away now, so we are preselling cars.

“I think this city is in its own little

bubble. Our customers are moving on, getting on with things and playing catch-up with their vehicles.”

Richard van den Engel, dealer principal of Ebbett Volkswagen in Hamilton, told Autofile: “There are just as many used car buyers out there as always and, as new car prices come down, used customers also enjoy better and better value.”

Timaru notched up the biggest percentage rise in dealer sales and trade-ins nationwide during March.

Trader-to-public transactions went up by 36.7 per cent from 215 to 294 units last month compared to March 2014, while the town’s publicto-dealer sales increased from 130 to 184 – or by 41.5 per cent.

Secondhand car sales - March 2015 Dealer-To-Public

Public-To-Public

Public-To-Dealer

Mar '15

Mar '14

+/- %

MARKET SHARE

Mar '15

Mar '14

+/- %

Mar '15

Mar '14

476

510

-6.7

2.7

1,870

1,763

6.1

256

262

-2.3

Auckland

5,753

5,643

1.9

32.9

15,239

14,271

6.8

5,042

4,512

11.7

Hamilton

1,512

1,360

11.2

8.6

3,411

3,214

6.1

1,252

1,193

4.9

266

198

34.3

1.5

541

489

10.6

84

78

7.7

Whangarei

Thames

+/- %

Tauranga

893

852

4.8

5.1

2,213

1,903

16.3

680

649

4.8

Rotorua

272

261

4.2

1.6

883

670

31.8

107

126

-15.1 -20.7

Gisborne

148

174

-14.9

0.8

363

356

2.0

88

111

Napier

601

590

1.9

3.4

1,528

1,434

6.6

402

401

0.2

New Plymouth

425

401

6.0

2.4

1,064

1,043

2.0

269

252

6.7 10.9

Wanganui

207

208

-0.5

1.2

506

436

16.1

142

128

Palmerston North

859

823

4.4

4.9

1,748

1,650

5.9

815

780

4.5

Masterton

150

159

-5.7

0.9

352

362

-2.8

92

95

-3.2

Wellington

1,488

1,497

-0.6

8.5

2,952

2,878

2.6

1,244

1,163

7.0

Nelson

298

311

-4.2

1.7

1,046

921

13.6

267

255

4.7

Blenheim

187

169

10.7

1.1

447

399

12.0

136

122

11.5

Greymouth

81

110

-26.4

0.5

232

227

2.2

38

65

-41.5 -100.0

Westport Christchurch Timaru

22

25

-12.0

0.1

98

89

10.1

0

1

2,310

2,229

3.6

13.2

5,627

5,250

7.2

1,986

1,803

10.1

294

215

36.7

1.7

594

606

-2.0

184

130

41.5 -60.0

Oamaru

81

69

17.4

0.5

225

198

13.6

14

35

Dunedin

742

673

10.3

4.2

1,882

1,750

7.5

517

490

5.5

Invercargill

436

448

-2.7

2.5

1,077

910

18.4

344

346

-0.6

17,501

16,925

3.4

100.0

43,898

40,819

7.5

13,959

12,997

7.4

NZ total

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27

new cars

Total

Alfa Romeo

4

44.4

5

55.6

9

Aston Martin

2

50.0

2

50.0

4

87

48.1

94

51.9

181

3

100.0

0

0.0

3

BMW

89

53.9

76

46.1

165

Chery

29

93.5

2

6.5

31

Chrysler

2

33.3

4

66.7

6

Citroen

7

50.0

7

50.0

14

Dodge

28

51.9

26

48.1

54

Fiat

39

81.3

9

18.8

48

Audi Bentley

Ford

158

35.4

288

64.6

446

Holden

192

24.2

602

75.8

794

Honda

343

79.0

91

21.0

434

Hyundai

220

32.9

449

67.1

669

Isuzu

5

45.5

6

54.5

11

Jaguar

4

50.0

4

50.0

8

Jeep

56

44.1

71

55.9

127

196

64.5

108

35.5

304

Lamborghini

2

100.0

0

0.0

2

Land Rover

55

51.4

52

48.6

107

Lexus

34

54.8

28

45.2

62

2

66.7

1

33.3

3

373

51.0

359

49.0

732

74

33.9

144

66.1

218

1

50.0

1

50.0

2

Maserati Mazda Mercedes-Benz MG Mini

30

46.9

34

53.1

64

Mitsubishi

278

45.5

333

54.5

611

292

67.3

142

32.7

434

40

63.5

23

36.5

63

Porsche

32

72.7

12

27.3

44

Renault

15

71.4

6

28.6

21

Skoda

30

33.3

60

66.7

90

SsangYong

31

31.0

69

69.0

100

Subaru

74

31.0

165

69.0

239

Suzuki

320

66.3

163

33.7

483

Toyota

385

39.7 10000

584

60.3

969

Volkswagen

228

55.7

181

44.3

409

48.5

17

51.5

33

0 9000.0

17

100.0

17

Volvo

16

Other

0

Total

3,776

9500

47.1 0 850

4,235

52.9

8,011

westport thames napier

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

8000

wanganui gisborne timaru

c t o b e r 2 0 13

7500

new

 100.0%  51.2%  34.1%

Blenheim nelson rotorua

 27.7%  26.8%  23.7%

9000

2

M

J

F

M

A

M

Used

J J

A

westport Masterton timaru

Used

  

6000

Used 8545

5000

New

7962

7000

6000

3000

2000

South Island

Nov ‘12

SEP ‘13

Oct ‘13

JuL ‘13

AuG ‘13

JuN ‘13

MAy ‘13

FEb ‘13

APr ‘13

MAr ‘13

JAN ‘13

APr ‘13

1000

4000

FEb ‘13

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

North Island

4000

5000

Nov ‘12

5500

en

North IslaNd versus south IslaNd

8000

DEC ‘12

6000

mo am 1,4 th 11

7000

JAN ‘13

2012

Oc hig

Used Vehicle RegistRatiOns

New versus used

MAr ‘13

6500

PassengeR Vehicle RegistRatiOns

10000

DEC ‘12

2013

S

Biggest decreases

new

ConneCt & engage 7000

I

co

d

try

Nissan Peugeot

T

he number of new cars and percentage of private buyers in the SUVs registered last month top six, with 320 sales accounting totalled 8,011, according to for 66.3 per cent of its total of 483.

Motor Industry Association statistics, Mercedes-Benz was last with private sales recording a big month’s top-selling prestige increase on February’s total. marque with 218 registrations, of There were 3,776 private which 66.1 per cent – or 144 units transactions in March, which – were business transactions. accounted for 47.1 per cent of the Ian Gibson, managing director of total. This was an increase of 31.1 Team McMillan BMW in Newmarket, per cent compared to the previous Auckland, says: “There’s no such month’s total of 2,880. thing as a fleet purchase for us, and Business transactions of 4,235 we’re selling in ones or twos. were up by 2.9 per cent on 4,133 in “Last year, the Mini showroom February and accounted for 52.9 per in Newmarket was upgraded and cent of last month’s market. on the back of this it has seen a Toyota continued its reign at the strong growth in sales. top of the sales ladder with 969 sales “It’s over-achieving our – up by 66 compared to February. expectations and the volumes from Its 385 private registrations there are above the business case we accounted for 39.7 per cent of its put together. overall registrations last month, “The environment there is just which was a 32.7 per cent increase incredible and we are doing 40 units on February’s total. plus per month. We have doubled Toyota’s business sales during the volume of Mini over two or March came in at 584 units – up by three years.

4.7 per cent compared to those in “We have also had a fantastic February. year with Rolls-Royce. The high-end Holden came second in March segment is moving strongly and with 794 registrations. Of those, we’re expecting great things from 602 were business sales, or 75.8 per that marque this year.” cent of its total.

Gibson notes that customer Mazda sold 732 units, of which behaviour has changed. The average 51 per cent – or 373 units – were visit to the showroom used to be an private transactions. hour and a half, now it is 19 minutes.

The TRUSTED online Hyundai came fourthwholesale and sold “The way you deliver information trading site. autopo rt.net has to change and you can’t rely on 220 units to members of the public, which was 32.9 per cent of its total t h ethe same old sale techniques.”

Whangarei Auckland Hamilton Thames Taurangaup Rotorua Gisborne NapierAudi New Plymouthcame second on March’s of 669, while Mitsubishi notched Biggest increases/Decreases Wanganui Palmerston North Masterton Wellington By town year-on-year Blenheim Greymouthladder Whangarei Auckland (OctOber vs OctOber 2012) 611 sales and 54.5 per cent ofNelson those for prestige marques with2013181 Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Biggest increases – or 333 units – were to businesses. units, of which 51.9 per cent were Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Suzuki had the highest Invercargill Whangarei Auckland business Hamilton Thamestransactions.

un 8500

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch

4500

hamIltoN, tauraNga, duNedIN, PalmerstoN North

8000

4320

600

4000

28 www.autofile.co.nz

3000

Auckland

2000

500

7500

Hamilton

400

2500

7000

icles sold

3500

hicles sold

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

Kia

Market for private sales makes surge

SEP ‘13

% Business

JuL ‘13

Business

AuG ‘13

% Private

JuN ‘13

Private

MAy ‘13

Make

Aroun

Passenger Car Sales by Private/Business split

300

Tauranga

new vehicles

Market gets more competitive S

trong sales figures were returned again last month with a total of 11,755 new passenger and commercial vehicle registrations.

This resulted in the strongest March since 1984 for the market with sales of new vehicles being 4.8 per cent higher than in the same month of 2014 for an increase of 540 units.

Last month’s total means 2,411 more units have been sold year to date compared to the same period last year – a jump of 7.8 per cent.

SUVs remained dominant in March to reflect similar trends in overseas markets, such as Australia.

They accounted for a 31 per cent share of New Zealand’s new vehicle market, and were followed by pick-ups and chassis cabs with 22 per cent and light passenger cars on 15 per cent.

David Wilmot, chief executive officer of Wilmot Toyota in Warkworth, says: “We are split 5050 between passenger and light commercial vehicles, and there has been a major swing to SUVs. “There are good makes across the board and consumers have a lot of choice, while a lot of younger people are moving to the area.

“Toyota NZ was happy the

Hilux toppled Ranger last month.

That partially came down to good promotions for the four-wheeldrive base model of more than $2,000 worth of accessories and free servicing. That worked for us and, combined with a lot of fleets still taking on the Hilux, it has helped to push up its sales figures recently.”

Wilmot told Autofile that while his business is selling more cars, the new vehicle market is getting more competitive, both in the Toyota network and externally.

“There are more people buying newer cars, but there’s much more choice and everyone is fighting for

NEW VEHICLE SALES BY BUYER TYPE - March 2015

NEW VEHICLE MARKET SEGMENTATION - March 2015

Mar '15

Mar '14

Mth %

2015 YTD

2014 YTD

% YTD

Passenger

4,375

4,636

-5.6

13,503

13,594

-0.7

Private

2,138

1,941

10.1

5,418

5,354

1.2

Business

1,890

2,322

-18.6

5,872

6,354

Gov’t

253

Rental SUV

333

-24.0

580

675

Mar '15

Mar '14

Mth% diff

2015 YTD

2014 YTD

Passenger

4,375

4,636

-5.6

13,503

13,594

-0.7

SUV

3,636

3,321

9.5

10,469

9,159

14.3

-7.6

Light Commercial

3,228

2,738

17.9

7,948

6,868

15.7

-14.1

Heavy Commercial

440

479

-8.1

1,134

1,107

2.4

76

41

85.4

213

128

66.4

11,755

11,215

4.8

33,267

30,856

7.8

94

40

135.0

1,633

1,211

34.8

3,636

3,321

9.5

10,469

9,159

14.3

Other Total market

Private

1,638

1,391

17.8

4,204

3,709

13.3

Micro

227

134

69.4

516

423

22.0

1,809

1,834

-1.4

5,075

4,944

2.6

Light

1,530

1,207

26.8

4,226

3,358

25.8

61

53

15.1

178

164

8.5

Small

-17.6

128

197.7

1,012

342

195.9

3,228

2,738

17.9

7,948

6,868

15.7

784

659

19.0

1,988

1,637

21.4

2,201

1,938

13.6

5,488

4,916

11.6

2,052

-27.5

5,122

6,214

612

672

-8.9

1,778

1,841

-3.4

Large

308

356

-13.5

1,223

1,100

11.2

24

28

-14.3

70

91

-23.1

107

92

16.3

253

244

3.7

95

-15.8

315

323

-2.5

xxxxxxxxx

Industry manages levels well Annual high for stockpile Business

dropped to this year’s low of Gov’tthat 131 18,653 in January.

tock levels of new cars have increased every month except one this year, with ctober’s total of 29,509 being the

David Crawford, chief executive

Rental officer of the Motor Industry

Sub Total

Private

Business

28

11,239

10,695

4,560

3,991

5,900

6,094

445

499

Gov’t

Dealer stock of new cars in New Zealand - Oct 2013

Rental

NeW CArS SoLd

Imported

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

242

440 during 2012.

43

1,735

12,246

223

55

729

12,975

218

59

855

13,830

209

66

5,942

1,800

15,630

205

7,142

1,728

17,358

211

6,208

1,686

19,044

209

7,742

8,870 Total 7,894

76

8,589

5,959

2,630

21,674

207

105

6,828

6,637

191

21,865

209

105

Oct ‘12

8,155

7,336

819

22,684

211

107

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

8,953

6,484

2,469

25,153

212

119

6,102

1,714

26,867

211

128

76,871

13,883

7,494 in September. 8.5 10,700 other

16,214

1.4

1,086

-2.7

2,818

Christchurch.

“If you add in Dunedin and Wellington, these centres cover a large proportion of the population and all have strong economies.”

Year to date, 77,438 new cars have been imported and 68,612 have been registered to give a variance of 8,826 so far this year.

Days with stock at hand has been steadily increasing from 78 in

SUV Small

SUV Medium

SUV Large gone up. has

There have been two major increases during 2013 – with variances between imports and sales of 3,121 in April and 2,507 in May. Graeme Macdonald, chairman of the North Island branch of the Imported Motor Vehicle Industry Association, says the current stockpile should correct itself – as it normally does.

“If the monthly stockpile was 10,000 on a regular basis it means there are solid holding numbers,” he told Autofile. “North of that and we would be looking at an

1,057

1,621

73.8

1,107

2.4

“October and November are normally difficult for the industry, so the stockpile tends to go up,” says Macdonald. “But trade swings up over Christmas and the holidays, so it goes down.

“December and January are good months for sales because people take time off work, the kids are off school and people may have Christmas bonuses or holiday pay.

“It’s a time when Kiwis tend to make financial decisions, so dealers need to have plenty of stock to

SUV Upper Large Light Buses Vans

11,215

213

4.8

33,267

128

66.4

30,856

7.8

Heavy Commercial Other

Total market

220

34,293

222

35,693

226

-

-

-

-

100

157 22 Oct 60

(266)

-

-

Wellington 68,612

Lyttelton 82,380

-

8,826

154

158

40

-

20

7 Nov

13- Nov

16 Nov

0

PORT TO DOOR SERVICE

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7,272

Auckland 1,400 7,962

874

20.0

3,131

2,503

25.1

1,355

11.6

4,160

3,379

23.1

1,025

1,049

-2.3

3,050

3,138

-2.8

50

43

16.3

128

139

-7.9

56

50.0

164

117

40.2

18.5

1,373

1,315

4.4

2,486

2,161

15.0

3,925

3,275

19.8

1,134

1,107

2.4 66.4

says Macdonald.

“Dealers then jump online to buy more from Japan, but that’s

84

571

482

Dealer stock of used car imports in New Zealand - Oct 2013

964

Imported

Feb ‘12 Mar ‘12

440 6,504 4,920

860

USed ImportS VArIANCe SoLd

2011

StoCk

1,340 (3,184)

8,579

(1,080)

4,315

6,375

6,000 6,429

47975

5,395 4,390

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

12.1 20.1 206

26

210

21

209 -8.1

21

76

41

85.4

213

128

11,755

11,215

4.8

33,267

30,856

7.8

17%

850 wds

Payment protection

34,559

4,237 Yokohama 6,828

120

20 Oct

oct

77,438

6,769

125

nov

-

130 21 Oct 80 138

sep

Dec ‘13

1,654

220

JUL

-

132

220

30,322

aUG

Nov ‘13

214

28,668

JUn

9,362

216

28,159

apr

7,006

Oct ‘13

27,077

may

11,065

Sep ‘13

25,594

509

Feb

Aug ‘13

6,347

mar

8,423

6,800

5,908 Osaka

Jan

Jul ‘13

(471)

1,082

223

(2,030)

always been the way.

“You can oversupply when buying conditions are good, but the marketplace normally corrects itself by pulling back from Japan or selling down. The numbers might drop for a month or two before trundling up again.

“There’s no magic supply-chain miracle. When it’s slow, it tends to be slow for everybody. If you can get good supply with a good exchange rate, everyone benefits.”

1,512

Total stock at the end of December Pick Up/Chassis Cab 4x4 1,609 3,191 Jan ‘12

LATEST SCHEDULE

1,483

238

26,065

7,542 Nagoya

180

160 104 Hoegh Xiamen 117 140 115V20 222

24,837

7,385

1,049

with 30 to 40 cars.

“They can suddenly be selling without having bought for a few weeks and being 10-15 units down makes them more susceptible,”

Pick Up/Chassis Cab 4x2 2012

Subscribe - FREE 26,867

Port 1,228 5,799Calls

Dec

Jun ‘13

8,051

StoCk

VArIANCe

oct

7,429

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

80

units, are more static with their holding not changing too much.

A drop of 50 units may not be too drastic. But stock can vary enormously by proportion on yards

25 206 5,126 736 match demand.

5,877 6,613 Apr ‘12 29 208 6,026 900 6,793 “When the market’s down in 7,693 May ‘12 33 208 6,789 763 6,184 Japan, stock is hard to get. When 6,947 Jun ‘12 26 209 5,483 (1,306) 6,641 5,335 it’s buoyant, you tend to buy what Jul ‘12 oversupply issue.

21 210 4,402 (1,081) 6,621 5,540 you can because you don’t know Aug ‘12 “There was good buying in Japan 18 209 3,686 (716) 6,222 5,506 what will be available next time.

Sep ‘12 March, and we saw high arrival New Passeinnger 12 211 2,507 Vehic (1,179) 6,867 leMay 5,688 Sales also need to bear in Oct ‘12 “Dealers by and June.

Make April, in numbers Novem October. in 131 to ber 2013 weeks to New January 18 213 3,810 1,303 7,183 8,486 to six four ‘12 nger Vehic Nov takes Passe it mind at more occurs stockpile “The Make le Sales7,119 Last year 90,754 units were

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

2013 % from stock get 2013 Mkt certain times of the year. Since Mkt Share 2013 total imported and there were 76,871 (5,474) 78,311 Share 72,837 Model say 300 Make ytd total Toyota Larger operations, of in Nov '13 Nov '12 +/back into the I came1746 Nov Mkt 2013 2013 Mkt 1190industry46.7 % sales for a variance of 13,883.

23.4% Share total 14670 19.3% Share dAyS Holden 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% Ford Toyota Days stock in nZ - new cars 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% Hyundai 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 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% Sepang Express Morning Miracle Nissan 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 Suzuki V9 10,539 V5 Suzuki Apr ‘13 V1 Swift 120 376 405 -7.2 2013 218 34 250 5.0% 254 8,400 2,507 2.9% 8,460 -14.2 4436 10,967 May ‘13 5.8% 2750 Mitsubishi 3.6% Ford 351 34 Mondeo 252 272 30 Oct 8,627 227 7,862 29.0 8,089 15 Nov 184 Jun ‘13 4.7% 29100Nov 98 87.8 3661 2.5% 1201 261 1.6%29 4.8% Honda 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 31 Oct 3.9% 7,608 1338 263 1.8% 29 16 Nov Volkswagen 8,648 8,635 30 Nov ‘13 Aug Mitsubishi 288 261 Lancer 2012 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 1 Nov 263 1.2% 35 17 Nov Kia 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% BMw - 1.7% - 2.3% - 1270 172 Holden ‘13 NovCaptiva 178 -3.4 2.3% 135 17 Nov 1861 319 - -57.7 4 Dec 20 2.4% 19 Dec - 1.8% - 2039 Subaru ‘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 23 Nov 1.9% 11 Dec Audi 163 Toyota 26 Dec 150 Highland 96,145 8.7 er sales predicted 2013 2.2% 118 1748 79 2.3% 49.4 Mercedes-Benz 1.6% 1092 1.4% 128 Ford 82 Focus 56.1 29 Nov 1.7% 11 Dec Peugeot 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% Jeep 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 Ssangyong AVAILABLE PAGES IS NOW 1.5% 952 86 1.3% 49 Mazda 75.5 Mazda3 1.2% 724 109 1.0% 151 -27.8 Dodge 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 Skoda 365.2 YOUR BUSINESS? 1.4% 447 63 0.6% 56 Holden 12.5 Cruze 0.8% 654 106 0.9% 80 Lexus 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 Land Rover 261 -60.5 1.4% 1847 51 22 2.4% 131.8 Honda 0.7% Civic 443 0.6% 100 Mini 115 -13.0 1.3% 44 852 43 1.1% 2.3 Mitsubis hi 0.6% Outland 474 er 0.6% 97 Chery 118 -17.8 1.3% 1258 34 21 1.7% 61.9 Hyundai 0.5

85.4

nov

7,391

May ‘13

Oct ‘13

11,610

16,435

sep

6,329

Apr ‘13

290

7.8

-3.2

JUL

Mar ‘13

26 | www.autofile.co.nz

29,621

-10.8

aUG

7,027

495

31,920

other centres.

“But 80 per cent of New Zealand’s population is in Auckland and

JUn

Feb ‘13

h

154.4

1,134

apr

Imported

2013 predicted sales

21.1

68

Days of stock

NeW CArS SoLd

5,355

ytd total

14.3

Sports

1996, it has ebbed and flowed.”

Used car stock levels are traditionally based on what’s happening in Japan and what consumers are buying here.

Conditions there have improved recently and the exchange rate

he amount of stock held by used car dealers during October was the highest monthly total of the year.

There were 10,374 units imported last month with a variance of 1,829 on 8,545 sales.

The number of cars in stock amounted to 9,323 compared to

247

-8.1

may

90,754

Jan ‘13

1805

5.1

T

People Movers

TWO SAILINGS PER MONTH JAPAN TO NZ

7,816

Total stock at the end of December 2012

6740

299

173

200.9

41

82 11,755 91

Sep ‘12

2013

76

Feb

May ‘12

5,633

6,499 7,228 Other 5,430 6,285

15.9

300.0

hot, SUVs are.

“People in the housing market are refinancing their mortgages to buy big-ticket items especially when they are confident about keeping their jobs.”

All that said, some of the regional centres, such as Hawke’s Bay and Palmerston North, aren’t showing as much growth as

111

mar

7,368

Christchurch are boosting sales.

“Trades people are upgrading their vehicles,” says Crawford.

“Although passenger cars aren’t so

479

There were 54,404 sales in 2009, 62,029 in 2010, 64,019 in 2011 and 76,871 in 2012, and the MIA is predicting about 82,000 passenger vehicle and SUV sales this year.

“We’re looking at about 30,600 light commercials and we’re on track for 112,000 or 113,000 new vehicle sales overall.”

Business confidence being high and strong regional economies in Auckland and

Jan

Feb ‘12

7,499

Days of stock

Jan ‘12

5,026

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

334

12,984 Heavy Commercial (2,473) 10,511

MIA stock estimate as at end of December 2011

Apr ‘12

113

112

Association (MIA), says current models aren’t sitting around in stock for too long.

“The industry tends to manage stock levels quite well and does this day in, day out,” he told Autofile.

“My data suggests this is a cyclical thing and levels were no higher in previous years, but they

ghest of 2013.

There were 7,962 sales last onth, also this year’s biggest mount, while the variance was 400 with 9,362 units imported – he second highest amount after 1,065 imports in August.

The total stock figure at the nd of December was 20,683 and

Mar ‘12

did come down after the global financial crisis [GFC].

“Stocking levels then increased again and they respond to the number of new vehicles sold and the rate at which they are sold.

“They basically go up when sales go up, but I’m not so sure about the days stock is held for being longer and can’t explain that.

“Average sales per day came down during the GFC and before that they were much higher.”

If 80,000 vehicles are sold one year and 100,000 are sold the following year, the average sales per day should be higher – and the MIA is expecting more new vehicles to be sold this year than

Upper Large

Finance

Private

12% 14% 13%

GAP

Light Commercial

43

1,487

Medium

Insurance

Rental xxxxxxxxxxx

2012

% YTD

Business Gov’t

S

their share of the market,” he explains.

“Many marques are releasing new utes this year and it will be interesting to see how the Hilux sells around Fieldays in June, especially with the new model due in September or October.”

Being a smaller and semi-rural franchise, Wilmot says he doesn’t have a lot of fleet buyers.

“With the end of the financial year in March, a lot of companies have budgets to change over their vehicles and that’s where business comes from. But because of being situated in Warkworth, we don’t have that opportunity.”

22% 9% 8500

www.autofile.co.nz 29 8000

16%

7500

New P

New registrations outstrip imports in stock of 6,812 for that period.

Paul Brown, dealer principal of John Andrew Ford in Grey Lynn, Auckland, says: “We are a little bit unique in the sense that we have a massive fleet team and 60 per cent of what we’re selling is to fleets.

That wouldn’t be unusual among mainstream brands here.

“We haven’t got freefall supply of everything we need but, by and large, we are managing.

“We are forecasting three or six months ahead and it’s no surprise to us when we get big orders.”

Grant Wilks, dealer principal of Wilksbrooke Motors in Te Awamutu, says the business has been “blessed” by holding the Mazda franchise with the marque scooping awards for a number of models.

“With the Mazda 3 being so well-received, we struggled with stock for the first four or five months,” he says.

“We also struggled to be able

to supply the CX-5 for three or four months and that happened a bit with the Mazda 2, but not to the same extent.

“Inquiry is already strong for the CX-3, so I can already see we may well be in the same position with that new model.”

Paul Burborough, dealer principal of Winger Hamilton, says: “Sales have been extremely strong, and we are hoping to continue to grow as we move to new premises and double our site’s size.

“We had back orders on the new Subaru Outback during the first couple of shipments, but a stock shortage at the top tends to keep pricing honest.

“There can be slight delays on the delivery of utes, but that’s only because of their sales success in New Zealand and Waikato.

“I would have considered the ute market quite competitive as it is because there won’t be a better

Dealer stock of new cars in New Zealand DAILY SALES Days - 12-MONTH stock AVERAGE at hand

2,101

39,875

234

170

6,802

1,696

41,571

236

176

Jun ‘14

7,620

8,517

-569

41,002

238

172

Jul ‘14

11,106

7,071

4,035

45,037

239

188

Aug ‘14

9,649

7,066

2,599

47,636

240

199

Sep ‘14

9,602

8,382

1,220

48,856

243

201

Oct ‘14

8,297

8,910

-613

48,243

245

197

Nov ‘14

9,075

8,063

1,012

49,255

247

199

Dec ‘14

8,248

9,594

-1,346

47,909

256

187

Jan ‘15

6,739

9,010

-2,271

45,638

258

177

Feb ‘15

7,173

7,057

116

45,754

259

177

Mar ‘15

6,907

8,075

-1,168

44,586

259

172

100,857

94,697

6,812

-3.7%

1.0%

Total for past 12 months Change on March 2014

marac.co.nz

18.0%

160 140

Mar 2013 — Mar 2014

120 100 80 60 40 20

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MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.

30 www.autofile.co.nz

heartland.co.nz

Mar

6,150

8,447

Feb

7,994

May ‘14

JAN

Apr ‘14

Mar 2014 — Mar 2015

180

Dec

162

Nov

234

Oct

37,774

Sep

-764

AUG

7,992

Jul

7,174

May

Mar ‘14

200

Apr

Stock

Registered

Mar

Variance

Imported

Days of stock

CAR Sales

time to buy one than now – prices aren’t going to get much better than where they are at the moment.”

Andrew Mackenzie, chief executive officer of Albany Toyota on Auckland’s North Shore, told Autofile: “Sometimes you will get new fleet managers who want to show companies what they can do, so they shop around all of the dealers for the best prices.

“However, provided you give them the service, and have confidence in your people and the product, the client is generally retained.”

Peter Swaney, managing director of Autoworld Timaru, says: “As far as new product goes, there is plenty of stock.

“With Volkswagen, the Amarok and the Golf R line are the strongest performers, but we are seeing growth across the board.

“Kia is performing well, and there seems to be a bit of activity with the new Sorento coming in.”

Days stock in NZ - new Cars

Jun

A

total of 8,075 new cars were sold in this country during March compared to 6,907 being imported to decrease stock at hand by 1,168 units.

By comparison, the figures for February were 7,057 registrations and 7,173 imports for 116 more units crossing the border than those finding owners.

Based on a 12-month rolling average, daily sales were unchanged last month at 259, although the number of days’ stock at hand dropped by five units to 172 compared to February.

In the past 12 months, imports of new passenger vehicles have declined by 3.7 per cent while registrations have climbed by one per cent with the stock level for new cars increasing by 18 per cent.

There have been 100,857 units imported over the past 12 months and 94,697 have been sold. That represented an increase

Used stockpile to ‘self-correct’ I

n the past 12 months, 154,340 used passenger cars have been imported into New Zealand and 145,976 have been sold, which means stock levels have gone up by 8,364 units over that time.

A total of 14,797 units were imported last month compared to 12,313 being registered on these shores for the first time.

That meant there was a difference of 2,484 imports over sales, which resulted in the stock level rising to 19,063 units from 16,579 in February.

Last month’s number of used imported cars went up by 31.5 per cent compared to March 2014, with sales jumping by 20.2 per cent and the stock level going up by 62.8 per cent over the same timescale.

Continuing stock will last for 51 days – up by six days compared to February – if no extra used cars come into the country.

Over a 12-month average, there were 372 units registered daily in

March, which was up from 366 in the previous month.

The AA has been monitoring the difference between the numbers of used cars crossing the border and sales.

“We understand most traders are comfortable with their stock levels,” says Stella Stocks, general manager of motoring services. “We have noticed motorists are extending the timeframes over which they traditionally change their vehicles, which would also have an impact.

“In addition, young people aren’t rushing to get driver’s licences as much as previous generations.”

As for the levels on unsold stock, Stocks adds, “it certainly gives consumers choice and might ultimately bring prices down if traders want to move stock”, while high import levels aren’t creating bottlenecks in the compliance process.

She believes the stockpile will

probably self-correct over time.

“We should remember the average used car buyer doesn’t differentiate between used New Zealand-new and imports,” she told Autofile.

“Given the high number of new cars sold over the past 12 months plus, there will be more NZ-used vehicles available, which may also have an impact.”

As for importers buying up big in Japan having any downstream effects on the Kiwi market, Stocks says this depends on the rate at which they are sold.

“There is plenty of used stock available and it’s just a matter of getting the cars you want,” says Peter Swaney, managing director of Autoworld Timaru.

“New deals are extremely good and there’s huge discounting going on in the market. That will have an effect on late-model and low-kilometre models, particularly rentals.

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180 160 140

100 80 60 Mar 2014 — Mar 2015

20

Mar 2013 — Mar 2014

marac.co.nz

Mar

Feb

JAN

Dec

Nov

Oct

Sep

AUG

Jul

Jun

May

Apr

0

Mar

Days of stock

120

40

“During 2014, a lot of new vehicles went into the rental fleet. In most cases, they were done on short-term rentals late last year and they are now coming back onto the market.

“There is a huge flood of late-model stock coming into the marketplace and, with the super discounts going on, margins for these used vehicles will be pretty slim.

“Every time distributors discount the new vehicles, it hurts late-model used stock. That’s just where the market is sitting at the moment.”

Todd Hunter, chief executive officer of Turners, says about 30 per cent of buyers are from outside of Auckland.

“When I look at percentages for other parts of the country, the city has one of the lowest rates of outof-town buyers.”

He puts this down to the wide availability of stock in Auckland and buyers not having to travel elsewhere to source what they want.

Variance

Stock

DAILY SALES Days - 12-MONTH stock AVERAGE at hand

Imported

Registered

Mar ‘14

11,254

10,247

1,007

11,706

290

Apr ‘14

13,102

9,501

3,601

15,307

296

52

May ‘14

16,450

11,223

5,227

20,534

304

68

Jun ‘14

10,558

10,760

-202

20,332

311

65

Jul ‘14

10,745

12,052

-1,307

19,025

318

60

Aug ‘14

9,016

11,290

-2,274

16,751

325

51

Sep ‘14

11,203

11,142

61

16,812

335

50

Oct ‘14

12,650

11,105

1,545

18,357

342

54

Nov ‘14

11,284

11,532

-248

18,109

348

52

Dec ‘14

13,131

12,448

683

18,792

356

53

Jan ‘15

10,155

11,791

-1,636

17,156

362

47

Feb ‘15

9,995

10,572

-577

16,579

366

45

Mar ‘15

14,797

12,313

2,484

19,063

372

51

154,340

145,976

8,364

31.5%

20.2%

Total for past 12 months Change on March 2014

Drive away with finance from MARAC Provided by Heartland Bank Limited

40

62.8%

heartland.co.nz

MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.

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

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

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

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

+64 9 411 7425

info@autohub.co