15 minute read
New Zealand vehicle fleet
International vehicle fleets are changing with ever-increasing speed. We give you the run-down on what’s changed in the New Zealand vehicle fleet and what you can expect in the future.
With the increasing globalisation of the world, we are seeing an increase in the number of vehicle manufacturers and vehicle types on our roads. It wasn’t long ago we were watching the rise of fuel-efficient diesels and SUVs. Today we are watching electric vehicles and sedans begin to resonate with younger customers.
It’s tough to keep up with so much change, but it’s important to know what vehicles you could be servicing in the coming years. Knowing the average age, make and usage of the cars in your area can help you plan your marketing, manage your parts stock and assist with planning for the future.
Unlike our friends in Australia, New Zealand keeps up-to-date data of the vehicle fleet on the Ministry of Transport website. We’ve got the quick breakdown here, but head over there to get lost in a great range of data and information that you can use in planning for your business.
So how is the vehicle fleet changing and what can we expect to see in the coming years?
Light Passenger and Light Commercial Vehicles
Between 2009 and 2019 the overall fleet size has grown by 29% to over 4.3 million vehicles. This trend looks to continue, with over 42,000 new light vehicles registered in the second quarter of 2021. This is the highest number of new light vehicle registrations in over 10 years .
In their Making every part count report, McKinsey & Co predict the global car parc will grow 19% between 2019 and 2030.
Vehicle ownership continues to grow at a steady rate to 0.9 vehicles per person in 2019, a growth of over 13%.
The average age of light vehicles continues to increase, to 14.2 years in 2021. This is in comparison to the average age of Australian cars at 10.6 years. Interestingly, the West Coast have the oldest cars on average at 18.3 years, followed by the Southland region at 17.5 years.
This was a trend repeated in both the McKinsey & Co report and Capricorn’s 2021 State of the Nation report. Capricorn Members reported servicing a majority of cars manufactured between 2006 and 2015 in the most recent State of the Nation report. Whilst McKinsey & Co expect the global car parc to continue to age, they note it could positively develop the aftermarket revenue pool.
In a similar trend to Australia, the number of diesel engine vehicles in New Zealand has continued to grow since 2011, particularly in the light commercial category, whilst alternative fuel vehicles such as electric or LPG have doubled between 2017 and 2019. Customers are also driving more than ever, with more than 48.9 billion kilometres being driven in 2019. We anticipate this trend continuing despite lockdowns, as we all holiday at home and enjoy exploring our own backyards.
McKinsey & Co expect to see an increase of cars with higher mileage per vehicle as new shared mobility concepts could see less cars on the road, offset by each car driving more.
Electric Vehicles (EVs)
In the first two quarters of 2021, 3,880 light electric vehicles were registered. This is a continuation of an upwards trend for EVs. As at August 2021, over 30,500 light electric vehicles are on the roads, more than doubling since August 2018. Globally, the share of EVs in the car parc is expected to grow from 2% in 2019 to 17.8% in 2030.
The New Zealand EV fleet primarily consists of new and used light purely electric vehicles for individual use, which seem to be more favourable to the plug-in hybrids. Again, this trend is expected to continue, with McKinsey & Co predicting battery electric vehicles will become the majority of electric vehicles sold.
However, Capricorn Members are only seeing an average of 2.5 either electric or hybrid vehicles per month. Two out of five Members are not servicing any fully electric vehicles at all, with most Members seeing more hybrid vehicles. This may be due to electric vehicle registration being concentrated in the Auckland region.
Currently, most EV models are coming from Japan, so if you think you see a lot of Nissan Leafs, you would be correct! They are by far the most popular amongst the registration data, especially amongst used registrations.
Overwhelmed? Don’t forget about CAP ezi-parts
With the vehicle fleet changing rapidly, it can be confusing to know where to find your parts. CAP ezi-parts can make finding parts easier by requesting locations, parts and prices from multiple Capricorn Preferred Suppliers.
Save time by using this free service, exclusive to Capricorn Members.
To access CAP ezi-parts, log in to the myCAP Portal using your Member details and click on ‘CAP ezi-parts’ on the left-hand menu.
PREPARING YOUR FINANCES FOR CHANGE
The pace of change in the world isn’t slowing down, making it hard to plan and prepare. Here are our top tips for preparing your finances for change.
The last 18 months have proven how quickly our world can change. Since Covid-19 began we’ve locked down, moved out of the office and maintained this thing called ‘social distancing.’ However, Covid-19 isn’t our first foray into paradigm shifting. For the last few decades, the world has been changing at an exponential rate.
This can make it difficult to plan and prepare for the future because so much is unclear. What’s going to impact us and our businesses? It’s scary to try to financially plan for your business, when it’s hard to keep up with the rate of change.
Being prepared can be a series of small tasks building towards a better tomorrow. So here are our top tips for preparing your finances for change.
Inventory management
Keeping your parts inventory to the necessities reduces the outlay required for a large amount of stock and allows you to change your inventory easily. Explore your Preferred Supplier options and find ones with great delivery options, allowing you to be lean with the parts you keep in stock. Inventory management also helps reduce the number of unused parts you keep in your workshop. We all know the ones: the parts we anticipated using but the job never came to fruition, or a superior part became available and now we have a corner of outdated parts we aren’t sure we will ever use.
Keep your parts inventory to just what you need and it will reduce the financial burden a large inventory requires. (It may also make the parts you do have in your workshop easier to find!)
Keep up to date
Everywhere we look there is something new, whether it be in cars, your smartphone or your staff. No matter where you look, you can probably point to something that wasn’t there last year.
It’s important to try to keep up with what’s changing, even if you only have a summary. Having a general idea of what may be arriving soon will highlight your opportunities and where you need to prepare. Knowing what you may need to invest in for the near future will allow you to start financially planning for it today.
Keeping up to date on new technology will also show where you can upskill your staff. Whether on the tools or on the books, keeping your staff up to date not only helps them complete tasks quicker, but it also means you can start working on your business rather than in it.
Working on your business means you can start preparing for the future and planning how you are going to structure your finances to thrive.
If you aren’t sure where to start, have a chat with your accountant. They can often recommend a financial advisor who can help with planning for the future. You can also check out the Purple Pages for financial advisors in your zone if you would like to chat to someone with automotive experience.
Fine-tune your processes
Most financial management software or accounting suites have a range of addons or plug-ins that can help make getting the paperwork done easier. Make sure to investigate which ones could work for you and start upskilling your staff to use them. This gives you and your staff time to spend on the tasks which add the most value to your business.
If you’re looking for extra flexibility with your cash flow, don’t be scared to investigate your payment options with different business partners. For example, you could organise to pay some business bills weekly or fortnightly, spreading out the cost and making month end a little smoother. Lots of companies have a range of options, so don’t feel shy to ask for a payment solution which works for you.
Spend some of that extra time you now have getting comfortable with your Profit and Loss (P&L) or Income Statement. Your P&L can tell you a lot about the health of your business and where you may need to adjust your approach. However, it can take some time to understand, so don’t forget to contact your accountant or financial advisor if you need help.
Keep business purchases as efficient as possible by putting as many purchases as possible through your Capricorn Trade Account. Not only do you get Capricorn Bonus Points, but you save administration time with everything appearing on one statement. To see what else you can put on your trade account, check out the Purple Pages for everything from trailer parts to financial advisors to solar panels. If it’s in your business, it’s in the Purple Pages.
Plan ahead
Some events come around every year, no matter how much we wish time would slow down. Events like tax time and Christmas happen at the same time every year, so factor them into your planning. If you know you are going to be slower over the Christmas period, or your tax will be due in July, make sure to consider this when planning.
If you know you’re going to need to invest in new equipment, make sure to start early. You can contact Capricorn Finance well before your purchase to find out what you’re eligible to borrow and whether you can be pre-approved. Then you know where you stand before exploring your equipment options.
Capricorn Members have easy access to a range of stress-free finance options to help their business grow. We’re committed to putting our Members first, which is why we strive to simplify the process of investing in new capital equipment.
Visit capricorn.coop/equipment-finance for more information.
CAPRICORN CLASSIFIEDS
Classifieds Advertising Guidelines
• The Capricorn Classifieds are for Capricorn Members only to advertise. Payment is to be organised between advertiser and purchaser. • Parts or equipment that relate to your business only may be advertised. • Businesses for sale may be advertised. • Cars for sale cannot be advertised. • Classifieds are on a first come, first served basis. • Depending on the number received, your classified may
not appear immediately. • No positions vacant. • No pictures to be submitted. • By submitting the Online Capricorn Classifieds Ad Form, you acknowledge that the price of any goods or services shown is inclusive of GST.
Mechanical Workshop, Port Macquarie
Great opportunity to take successful business to the next level. One of town’s longest serving and best located workshops – four hoists, extremely well equipped, call Maca for more info. 0414 850 365.
Mechanical Workshop, Melbourne VIC
Est. in 1962 with current owner for 12yrs, located in Bayside, mechanical service & sales, very prominent loc. Owner retiring. Ph: 0411 460 460
Mechanical & Tyre Service.
79 Woods Street DONALD VIC 3480 Established business of 29+ years. Prominent position in centre of town, covering large rural area. Plenty of area for growth. WIWO. Building not included. Building Leased Owner Retiring. $145,000 plus stock Phone 03 54971 202
Auto Electrical Business For Sale Armidale Northern NSW
Long lease or option to purchase strata premises. Currently two auto electricians very busy. Massive potential. $120k + stock. Owner retiring but available for handover. Phone Richard 0427 751 703
Auto Air Conditioning and Auto Electrical business in Central Bendigo area.
Established 30+years. High turnover, long lease available. Plant and Equipment. Owners retiring. Phone Dianne 0438020857
Jaguar/Landrover Wrecking Business for sale, in Outer Eastern Melbourne.
Established for 40 years. New and Used parts. All equipment inc Hoists, Forklift, Ford Ute, Shelving/Racking, Tools, Office Computers. $75,000 plus stock Ph: 0427270542
Mechanical Workshop, Woodford Qld
Fully equip family business servicing the community since 1995. Well established customer base, large 4 bay shed (long lease available) 3 hoists, office, amenities and wash bay. Enquiries 0408767366 or dawnevandriver@hotmail.com
Auto Electrical business in Northern
Victoria. Well established business with large customer base. Includes service vehicle, tools, air conditioning equipment. Freehold available. $190,000 plus SAV. Contact Lee 03 5452 1813.
Mechanical, Radiator Repair and Parts
Supply Business For Sale Gold Coast. Long established, RACQ Approved, Strong Client Base, High Turnover with great potential to expand. Currently managed, also fantastic opportunity for owner operator. Call Alex 0459 424 777
Automotive Workshop Eastern Suburbs
Melbourne. Established business of 35+ years. Mechanical servicing and repairs. Prominent location close to major shopping centre. 4 Hoists & equipment Expression of interest Call Russell 0417339617
Fully Equipped Mechanical Workshop
For Sale Established 30+ years. Specialising in Italian cars. Thomastown location. Strong customer base. Long lease available. Phone Sandra 0417392998
Business for sale Clermont Motors Central
QLD. Includes commercial and 4wd parts, truck and trailer parts, tyres, windscreens, batteries. Customer base consists of mining, farming, grazing, transport and retail clients Growth potential within the region. 1400m purpose built workshop which includes pits, hoists, 3 offices, warehouse, retail display area Email: reception@clermontmotors.com.au
Mechanical Workshop, Alexandra Victoria.
Well established business of 10 years with exceptional turnover and profits. WIWO. Rent or freehold options available. All reasonable offers considered. Contact 0409514502
Mechanical Workshop, Yatala Region, QLD 3 Bay fully equipped workshop. Established 1995 with very loyal customer base & various fleet customers. Excellent reputation. New 5 year lease. Phone Alan Minshull 0407 002 148
Mechanical Workshop for sale, Outer Eastern Melbourne. Specialized in German Cars, Family Business for 30 years, Owner retiring, Huge potential to expand, Long lease available, Call: Klaus 0466527707
Email: ignition@capricorn.coop
Publisher's General Disclaimer
All information, material and content contained in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information, you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including, without limitation, any third-party supplier advertisement in respect of which Capricorn merely acts as a conduit) included in this edition of Ignition. To the fullest extent permitted by law Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: (i) reliance on material in Ignition; or (ii) inaccuracy, error or omission in material in Ignition. Capricorn, Stronger With Capricorn, Ignition, Capricorn Travel, Capricorn Mutual and the boomerangs device are trademarks or registered trademarks of Capricorn. If you have any news or information that you think would be of interest to your fellow Members, please send the information to Capricorn via email ignition@capricorn.coop.
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PMS 293C PMS 485C Black Sig Panel DON’T HAVE A Date: Sent by: Approved by: Please print your name: Every endeavour has been made to ensure that this PDF proof meets with your requirements, however the final responsibility rests with you, our valued customer. FOR CUSTOMER USE: PLEASE CHECK EACH CATEGORY CAREFULLY Colour references Design: content and position Text: content and position FRONT Correct FRONT Incorrect BACK Correct BACK Incorrect ADDITIONAL FEATURES Quantity: 1 Sig Panel: 10 x 77 mm White UV Required: NA Front Laminate: Gloss Magnetic Strip: 3-Track Hi-CoFoil Stamping: NA Special Comments: Colour match sample card Rear Laminate: Gloss Chip Type: NA This November & December with your Capricorn Fuel Card Purchase fuel at participating Mobil service stations with your Capricorn Fuel Card and you will receive a discount of 11 cents per litre (incl GST) off the pump price in November and December. *You’ll also earn 1 x Capricorn Rewards point on every $1 spent! Visit capricorn.coop/fuelcard and apply for a Fuel Card today! 0800 401 444 I csl@capricorn.coop I capricorn.coop *Fuel Discount excludes LPG. Applications and use of the Capricorn Mobil Fuel Card are subject to the NZ - Capricorn Mobil Card - Terms and Conditions which can be found at capricorn.coop/TC. CAPRICORN FUEL CARD? Get yours via capricorn.coop/fuelcard and start benefiting more as a Member.
