The voice of the auto industry Issue 24 27 February 2012 Pushback against grey imports he premium vehicle high six months ago. Historically the New Zealand including the S-range, the A6, A7, industry has parallel Franchise dealers, with dollar has strengthened and A8 and R8 ranges. importers in their targets, significant investments in their weakened in quite a “fickle” Less expensive cars within the withT price realignments at some of dealerships, stand to lose the most manner, and pricing has been kept range are still very well priced says the higher-end models. from missed sales opportunities. rigid to protect their customers’ Fisher, but in the higher range And there’s also rear-guard “The network is finely attuned to resale values says Fisher. any percentage those cars may action, as marques look to hamper what’s going on, and it’s been a topic However the dollar has since deviate from the world pricing supply in the UK for importers, of hot discussion for quite a longer strengthened considerably over gets exaggerated. with the factories targeting the UK period of time now,” said one dealer. the past few years, and undergone “It became evident as the dealers who sell the cars to New Audi and Jaguar have both a ‘structural change’, meaning it’s dollar strengthened that the Zealand importers. worked through a realignment not likely to fall away as it might models that we really need to And the new car industry may process. have in the past. work on were the ones over be enjoying a measure of success, Audi NZ head Dane Fisher says Fisher says that after discussion $100,000, and that’s why we with one franchise dealer telling that prices have been realigned with Audi AG, who along with chose those models specifically.” Autofile that the number of near- on their high-end models, Audi NZ set the local retail price, Fisher says once it become new vehicles in his brand available dropping between 8 and 15% at it was decided to lower the price apparent that there was a trend second-hand has dropped from its the end of last year. on some models, from the S4 up, [continued on page 3] Stock is king in ute market Subaru's ielday specials could be With many of the major being shy about ordering.” sub-compact SUV a somewhat tame affair distributors here still short of The D-Max is an older model, this year, with the New stock, those that have vehicles due to be completely replaced FZealand ute market continuing are seeing the extra demand. mid-year, meaning that its price to be dampened by the effects of Isuzu Utes General Manager, points stack up well against some flooding in Thailand. Greg MacDonald, says that after a of the new models on the market The 2011 Thai flooding is now tough year last year their supply says MacDonald. calculated to be the fourth-most is back online in February, and “We’re getting people expensive natural disaster on selling strongly. contacting us that wouldn’t have record, with an estimated cost of “We have some excellent before, and that’s definitely been US$45 billion ($53.5 billion), and pricing, and the D-Max is a tool good for us, and it’s due to the caused Thailand’s economy to of trade ute so we’re able to meet fact that they haven’t been able shrink by 9.6% in the fourth quarter. that demand. We’re certainly not [continued on page 20] pg 12

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Driving Solutions Retro Vehicle Enhancement | www.rve.co.nz | 0800 RETRO 4 U editor’s note Robust debate on CGA Editor Stian Overdahl [email protected] 021 247 7782 changes needed

Advertising he day that a Member expensive but faulty vehicles with the matter in some manner. Brian McCutcheon of Parliament is seen no comeback, the great majority When fashioning a law, can it be [email protected] Free phone 0508 288 863 defending the business use online auctions to sell trade-ins. said to be a success if the behaviour 021 455 775 habitsT of a second-hand car There are also a great many it was meant to regulate, instead salesman seems some way off, ‘traders’ who don’t use so-called ceases, and is then taken up by those Contributor given their caricatured descriptions loopholes, but instead simply who operate outside of consumer Mike Stock of them in the House. operate outside of the law. protection laws, namely private “The Arthur Daleys of this world A dealer who doesn’t want to sellers and unregistered traders? Designer are no longer selling second-hand guarantee a vehicle can simply An enormous number of cars Adrian Payne motors in brown leather jackets not register as a dealer, and make (approximately 60%) are sold [email protected] from lock-ups, they are now online,” sure the vehicle is registered in his privately each year, these sales said Green Party MP Kevin Hague cousin’s name. are missed opportunities for the Autofile is also available as an talking on the Consumer Guarantees A law change that would see government in terms of tax, and a electronic copy via email. Amendment Bill, which will likely it harder for dealers to carry out regulated trading environment. If you’d like to receive electronic copies please send see consumer guarantees apply to their legitimate business practice Those considering the proposals an email with your name and all vehicles sold by dealers via online by increasing costs, will only create could do well to give consideration organisation to: [email protected]. auctions such as Trade Me. more of an incentive for shady to an exemption for low value Back copies are also available Yet the politicians debating the dealers to operate outside of the law. vehicles, which are perhaps unique on request. changes could do well to examine Dealers take in trade-ins as a in the retail landscape, serving an the nature of the New Zealand service to customers. But if they important purpose and holding Copyright: Published twice monthly by: 4Media, PO Box vehicle fleet, and recognise that choose not to, these same vehicles some value despite their age. 6222, Dunedin 9059 a large proportion of the vehicles will be sold instead by private But ultimately if the law passes All statements made, although based on information believed bought and sold every day by sellers. This won’t miraculously we may see new institutions and to be accurate and reliable, their constituents aren’t going to improve the vehicle’s condition, methods of selling develop, which cannot be guaranteed, and no liability can be accepted be reliable, based on their age, nor will buyers receive any kind of circumvent the obstacles created. for any errors or omissions. and given the reluctance of New guarantee from a private seller. Which presumably Trade Me, Reproduction of autofile in whole or part, without Zealanders to service their vehicles. Indeed a buyer will have even a key driver of the idea, won’t written permission, whether While there is no doubt that less recourse in a private sale, since benefit from. by xerography or any other means, is strictly forbidden. there are some traders who are many dealers, who depend on their All rights reserved. using online auctions to sell reputation, are likely to deal with Stian Overdahl, Editor

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2 | www.autofile.co.nz [continued from page 1] Pushback against grey imports in terms of used imports, they knows, the motoring industry is There are a number of rumours in EU, which is written into their moved quickly. extremely difficult and nowhere the new vehicle industry here about franchise agreements. One Audi dealer says he’s near as lucrative as it has been in action taken against UK dealers. But he says, some vehicles in the seen a fall back in the number of previous years, unless you’ve got David McCarthy, Senior Manager UK may be sold to private buyers listings of vehicles such as the Q7, great economy of scale.” Corporate Communications for that are then exported without after a ‘small wave’ of vehicles ex Fisher says that their Mercedes-Benz Australia Pacific, the dealer’s knowledge, and he UK on the market last year. realignment is “quite unique” in says while there’s been a lot of believes they’d be reluctant to He credits the price the luxury motoring industry. discussion around the vehicles sell vehicles knowingly for export realignment with being effective, He concedes that in terms of coming, in, he’s not aware of any as it would put their franchise but also believes that the market competition within their new action taken against UK dealers agreement at risk. has simply tightened up. vehicle market they may now have selling the vehicles. McCarthy says that they’re “In order to support any great an advantage, but says they’re Mercedes-Benz exported to constantly monitoring price, and quantity of European product, focused on their own business. New Zealand are covered by says the new B class and M class you’ve got to have reasonably big “We needed to do the best thing their international warranty, but will be positioned at a lower price financial resources to start with. that we possibly could for our McCarthy says he’s not aware of point than the previous models, And I don’t know that there’s quite dealer network, to handle the any mechanism for feeding back though he says that isn’t just a the number of used importers out pressures of our very complex that information to the UK on reaction to parallel imports, but there, like there were in the earlier deregulated market. We need which particular vehicles have the focus is on selling more cars. days, that have got big financial to look after them first and been exported. BMW spokesperson Edward resources to make that happen. foremost. What happens with our Mercedes-Benz dealers in the Finn says they’re not looking at “There’s always going to be competitors is to a degree outside UK are not permitted to sell a any price realignment on their people that will try, but as anyone of our control.” vehicle for export outside of the models.

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We now have a vacancy in the role of National operations Manager and seek a motivated leader to fi ll this Auckland based executive position. Crashed cars make for Reporting directly to the General Manager, you will maintain the day to day national operational management of all branches and business lunchtime curiosity activities, business development and client relationships nationally. The person we are seeking will require: • Previous operational and fi nancial management experience wo cars used in Australasian work around road safety. essential New Car Assessment NZTA’s Chief Executive Geoff • Ability to work autonomously with excellent time management • Previous experience with client relationship / management Programme (ANCAP) Dangerfield says the display essential Ttesting were on display this week in vividly highlight how much • Staff performance / management experience Auckland’s Aotea Square, both as a better five star safety rated cars • Excellent written and verbal communication skills. novelty for those on their lunch- protect their passengers in the • Sales assessment and development experience. break and as a warning about the event of a crash. • Understanding OSH and HR essential • Previous high level experience in the automotive inspection/ value of vehicle safety. “If all New Zealanders drove regulatory environment would be highly preferable. Chery continued in their role five star safety rated cars, it’s as the whipping boy for road estimated the road toll could be Seeking a new challenge, or considering it is time to make the step up, safety, with their three-star J1 reduced by one third. Based on then apply directly via email, including a copy of your current CV, to: [email protected] displayed alongside the five-star the latest annual road toll, that’s vehicle Hyundai i45. nearly 100 people whose lives applications close March 30th 2012 Police and NZTA staff were would not have been lost last also on hand to talk about their year alone,” he said.

www.autofile.co.nz | 3 news Consumer law change set to impact on motor trade

he consumer law reform Tenders warranties on products unaware Under the new law the full amount process has been ongoing A number of traders sell vehicles that they were already covered would be required to be refunded. for over two years, but via a tender process, where they under the provisions of the CGA, There are other obvious theT first reading of the Consumer accept written bids, and then sell extended warranties may become difficulties around a cooling off Law Reform Bill in Parliament this the vehicle to the highest bidder. more heavily regulated. period, such as the fact that the month signals that any changes Currently, this type of activity is Mechanical breakdown warranty price is often written into won’t be too far off. The Bill now seen by many operators as fulfilling insurance, typically sold with used a finance product; many dealers moves to the Commerce Select the category of competitive vehicles, may be affected by any also bundle warranties into the Committee, which is a chance for tender, which is a category of sale changes in this area. window price, and it can be unclear oral submissions to be heard and excluded from the CGA. It seems that the main what the final ‘retail price’ is. further changes made. And while A number of tender cases requirement will be that sellers of As MTA have pointed out, a the biggest change for the motor have been through the motor goods and extended warranties situation where money is being vehicle industry is likely that the vehicle disputes tribunal, and as will be required to explain to refunded after a finance contract Consumer Guarantees Act (CGA) has been documented in Autofile, consumers what benefits these can also be abused, though will apply to all sales via Trade Me, a the claim that the CGA does not warranties offer above and beyond some companies who currently number of other changes will also apply is invariably rejected by the their normal rights under the CGA. refund policies say the refund is affect how business is conducted. adjudicators. It’s likely that warranty transferred to the finance contract. Under the proposals, tender companies will provide dealers However there’s no doubt that Fines for not displaying style sales will be treated as a with a clear description of the a warranty policy being cancelled CIN cards normal sale for legal purposes, benefits conveyed, which many is an almighty hassle, and if the The Bill provides for infringement meaning that there will be no companies already do. practise is being advertised and offences for failures to comply escape from the provision of However given that there is no even ‘encouraged’ by law, the with consumer information acceptable guarantee for sellers. defined time-period for the CGA, it incidence of this bothersome standard requirements, such becomes harder to know where the practice may increase. as the display of the Consumer Auctions guarantee ends for a used motor Information Notice (CIN) on used Auctions, conducted by licensed vehicle as compared with a new TV, CGA on Trade Me sales motor vehicles. auctioneers, may see a number which comes with a manufacturer The biggest change in terms of the Currently under the Fair changes, including that the CGA warranty of eg one year. motor trade will doubtless be the Trading Act dealers must be will apply to all sales of new goods Another change is a likely application of the CGA to all sales prosecuted. The new Bill would by auction, which presumably are a ‘cooling off’ period for extended on Trade Me. see dealers fined for an offence, minority of auction sales. warranties of five working days. Trade Me, in its original rather than prosecuted, with A number of the provisions of Again, many companies do submission on the consumer law the fine being no more than the CGA, such as clear title, may currently offer a cooling off period, reform process, said that the CGA $1000. This could see a proactive also apply to the sale of used goods though some currently don’t was needed “to protect against approach taken to the policing of such as motor vehicles, but critically, refund an ‘administration fee’. consumer confusion, and for  the requirement for CIN cards. the provision of acceptable quality won’t, meaning that auction houses No need to disclose will provide an avenue for the What the CGA says: whether sellers are in- disposal of trade-ins without any trade worries about guaranteeing the In the Consumer Guarantees Act (CGA), goods are of acceptable quality if they are as, — One issue that does not appear quality of the vehicle. (1) (a) Fit for all the purposes for which goods of the type in question in the Bill, but which has wide Another change that will be are commonly supplied; and supported in the industry, welcomed is where the bids are (b) Acceptable in appearance and finish; and by dealers, the Motor Trade passed in, and there is negotiation (c) Free from minor defects; and Association and Trade Me, is the over sale price, goods will be (d) Safe; and requirement for professional deemed as having been sold at (e) Durable […] traders to be required to identify auction if they are sold within one themselves as in-trade. This was working day following the close of (2) Where any defects in goods have been specifically drawn to the also supported by the previous the bidding. consumer’s attention before he or she agreed to the supply, then Minister for Consumer Affairs, John notwithstanding that a reasonable consumer may not have regarded the goods as acceptable with those defects, the goods will not fail Boscawen and other MPs, so could Extended Warranties to comply with the guarantee as to acceptable quality by reason have a serious chance of making it After concerns that some only of those defects.[…] into the final law. consumers were buying extended

4 | www.autofile.co.nz news In the house – MPs speaking on the Bill Professional traders need issue of identifying professional people because, no doubt, there up to date, so that consumers to disclose that traders could be looked at again have been many of us who have can undertake the sale and “It seems a missed opportunity at the select committee stage, gone on to TradeMe and made purchase of goods and services that the Ministry of Consumer and I urge the current Minister, purchases. You may not know with confidence By introducing Affairs considered including a Mr Tremain, to do so” that if you are clicking on the “buy this bill, once again we ensure requirement for professional Kevin Hague, Green Party MP me” button you are protected that the National Government is traders to disclose that fact but under consumer law, but if you committed to the protection of it has been excluded. Traders Trade Me sales a ‘loophole’ are pressing on the button that buyers and sellers in New Zealand. who identify themselves as “I would just like to refer to is called “starting bid”, then you We want to create an professionals could then more Consumer New Zealand and the are not. That is an issue. I mean it atmosphere where both buyers easily be held to legal obligations, work it has done on this and its is a simple issue and, hopefully, and sellers who obey the law of including the requirement to signalling this is a significant things like that will be addressed the land are protected against offer refunds on shonky goods issue at least 2 years ago—more through this legislation and that unlawful conduct by those who and to pay tax on their profits. than 2 years ago—where it said will provide a lot more protection do not obey the law. This bill will The Arthur Daleys of this world that it believed that unscrupulous for consumers.” strengthen consumers’ rights, and are no longer selling second- traders were exploiting a legal Clare Curran, Labour MP it also acknowledges the interests hand motors in brown leather loophole in online auctions. And I of businesses. It will also simplify jackets from lock-ups, they would just like to make reference Strengthen consumer and clarify business compliance are now online, and TradeMe’s to that because I actually think rights and reward and create a more even playing recommendation, I think, that that is, hopefully, what one reputable businesses field, where reputable businesses should be taken very seriously. of the things that this legislation “The Consumer Law Reform Bill are rewarded.” The previous consumer affairs will address. I will just explain seeks to ensure that the laws Kanawaljit Singh Bakshi, Minister John Boscawen said the exactly what that means for which protect our citizens are National MP

[continued from previous page]

 consistency, consumers purchasing “If a buyer comes to me wanting goods from traders at offline to trade a 1986 car that had auctions should have the same travelled 186,000kms for $2000, HAPPY CGA rights”. I and any other sensible dealer/ WITH YOUR CURRENT MPs speaking at the time, and trader would have to turn that car now, focused on the confusion away. Such a car is simply too old ARE YOU VEHICLE SUPPLIER? of the buying mechanism, and too unreliable to deserve a with consumers unaware that guarantee and most buyers of such WHAT YOU GET WITH purchasing via ‘Buy Now’ meant that cars do not expect a guarantee.” the CGA applied, while bidding on a Selling trade-ins won’t Trade Me auction meant that there be impossible on Trade Me, no rights under the CGA. as demonstrated when their Trade Me called the distinction Head of Operations Mike ‘MOD’ RELIABILITY “arbitrary”. O’Donnell debated with importer First choice for NZ dealers for 20 years At the same time, there were Graeme Macdonald on Fair Go. EXPERIENCE dealers who clearly did understood O’Donnell believes that dealers Our buyers are knowledgeable about NZ dealers requirements the difference, creating ‘No Reserve’ can still sell lower value vehicles, auction with a starting bid of as long as they draw any defects CHOICE 100,000 vehicles per week available through our auction search engine $9875, and a Buy Now of $9995. to the buyer’s attention. Dealers Many dealers argue that Trade say this isn’t practicable, as some STOCK READY FOR SHIPPING Extensive range of pre-purchased stock available for shipping NOW Me is a vital avenue for disposing faults in older cars won’t be of lower value cars, particularly immediately apparent, nor do PEACE OF MIND All vehicles Ramp Inspected before departure trade-ins. they have the time or inclination Used importer Mike Mapperson, to study every component. TRUE DEALER WHOLESALE who made a submission, said And the cost of guaranteeing Fixed fee includes all Japan side: transport, documents and taxes that a law change would have a low value vehicle can be high: STRICTLY DEALER ONLY “detrimental effects on the owners dealers may have to fork out Heiwa Auto never sell or export vehicles to private buyers of older or low-value vehicles,” large amounts on repairing older Reece McKerrow Ph: 021 988 727 since these will no longer be able vehicles, in some cases conceivably www.heiwa-auto.co.nz to accepted as trade-ins by dealers. more than the sale price.

www.autofile.co.nz | 5 news

NZTA plans short Colonial Motor Company ad campaign profit up 63%

ith changes to the give he Colonial Motor Company affect profits in the second half. way rules coming in has reported a large increase “While the result for the six a month’s time, there in profit for its first-half, citing months has been very good, we do Whave been some questions asked will help Tsales of heavy trucks, the new Ranger not expect the next six months to be about the lack of a high profile to reduce and BT-50 models, but has warned as good. The supply constraints on public information campaign. confusion and that availability of some models will Ranger and BT50 will impact on the But NZTA say they’ll start reduce crashes impact on second-half profits. profitability of our dealerships. Our advertising the changes ten days by making decision-making easier Profit rose to $5.1 million, up tractor dealerships also have supply before the new rule kicks in, with for drivers at intersections, but 64% from $3.6 million in the same constraints. In addition forward a $1.2 million campaign that will there are obvious safety risks if six-month period in 2010, and orders of heavy trucks are not as include TV, radio, online and print some people start following the group revenue was $272 million, strong as they were six months ago.” advertising, along with a leaflet new rules too early. That’s why our compared with $232 million. Both Christchurch dealerships door drop to 1.73 million homes. publicity will be carefully timed Revenue in the period ending traded well and made a significant NZTA Chief Executive Geoff and delivered.” 30.06.11 was $486 million. contribution to the overall Group Dangerfield said publicity around The ads will focus on While trading was quieter during performance, despite the earthquake the rule changes was being highlighting the date of the the Rugby World Cup, the result repercussions said Gibbons. carefully timed in order to ensure change, and will provide a simple was driven by a strong performance “At Hutchinson Motors the maximum awareness of the overview of the new rules. The from heavy trucks, combined with earthquake-damaged buildings changes, while at the same time campaign will run to April 1. an excellent last two months by have been demolished, however minimising the risk of drivers Information and diagrams on the car dealerships, Chairman Brian we still do not have full use of starting to apply the new rules the rule changes have also been Gibbons said in a statement. the site. Getting the necessary too early. available online since last year at But he says that they expect approvals for remedial work is both “In the long run the new rules www.giveway.govt.nz. the impact of the Thai flooding to slow and frustrating.”

New vehicle CO2 emissions fall, despite popularity of SUVs

he CO2 averages for new driven by vehicle manufacturers vehicles sold in 2011 meeting emission targets in the dropped 2.3% on the key markets of Europe, Japan and Tprevious year, falling to 197.1 Australia as well as changes to the grams of carbon dioxide per type of vehicle purchased. kilometre, and below 200 grams “Over this period we have seen for the first time. the light/small segment increase by That puts us ahead of Australia, just over 8.5% with large vehicles which had a National Average declining by 45%. The number of Carbon Emission (NACE) of 206.6 diesel passenger vehicles has also grams of CO2 per kilometre last year. increased from 10.4% of total 2007 The NACE is calculated for all sales to 17.0% last year,” says Kerr. new vehicles sold, and is weighted And while buyers have exited Trans Future 5 Voyage 56 to include the total numbers of the large vehicle segment, figures osaka 15 Feb, Nagoya 17 Feb, Kawasaki 18 Feb, individual models sold, rather than show that the average CO2 emission Auckland 7 Mar, lyttelton 9 Mar, Wellington 11 Mar, Nelson 11 Mar simply being an average of all for the Large Segment was 232.5, models available for sale. compared with 231.8 for SUV Trans Future 7 Voyage 52 Over five years the average CO2 Medium, and 260 for SUV Large. osaka 27 Feb, Nagoya 2 Mar, Kawasaki 4 Mar, emission has dropped by just over SUV Compacts had an average Auckland 22 Mar, lyttelton 24 Mar, Wellington 26 Mar, Nelson 27 Mar 10%, from 219.7 grams in 2007 to of 205.2, significantly higher than 197.1 grams recorded last year, says Medium passenger vehicles (181.9), Trans Future 6 Voyage 53 Perry Kerr, Chief Executive Officer Small ((165.7) and Light (145). of the Motor Industry Association. The biggest drop in emissions 12 Mar, 16 Mar, 17 Mar, osaka Nagoya Kawasaki “This improvement in CO2 was in the Upper Large segment, Auckland 4 Apr, lyttelton 7 Apr, Wellington 9 Apr, Nelson 10 Apr emission has been brought about by which dropped 12.7%, and in a combination of improvements in the SUV Luxury segment, which vehicle technology, which has been dropped 7%.

6 | www.autofile.co.nz news

Price differentials fuel high end trade says importers

sed importers say that as “There’s definitely pressure in the Glenn Tulloch at Corporate Cars Anyone can do it.” long as price differentials UK on dealers to withhold any cars on Auckland’s North Shore, says he’s Tulloch believes that many exist between New for export to New Zealand, unless got no problem with supply. private individuals are also ZealandU and the United Kingdom, they’re older cars.” Despite drops on some of the importing direct from the UK, they’ll continue to bring in high Another change is withholding new vehicle pricings, he says his evinced by the numbers going end vehicles, and so will private the release code for the satellite offerings remain price competitive. through the compliance shops. individuals. navigation system, a 20-digit And he believes that some Alex Beacham, an independent However some importers say number, that previously was prices will have to fall, saying that Jaguar dealer in Napier who made it’s clear that there’s pressure from supplied with the vehicle and franchise dealers are being affected, headlines last year for parallel brands here to clamp down on would allow NZ maps to be but that the distributors will need to importing the vehicles new, recently supply out of the UK. uploaded, but which UK dealers look closely at pricing. opened a branch in Auckland. One importer told Autofile can no longer supply. “Why is the price so different He says he’s under increased that he received an email enquiry “Obviously they’re trying to here to overseas? I don’t quite pressure, including a trademark from a ‘private buyer’ about which protect their market in whatever understand why new vehicle prices dispute, with Jaguar claiming that vehicles were available in the UK. way they can.” have to be $60,000 dearer at retail he’s infringing their copyright. After forwarding details of available However cars can still be [than overseas].” Beacham says he believes the vehicles, which the importer believed acquired he says, such as through The Internet means that while chassis numbers on the vehicles he’s he might be able to acquire from a intermediaries in UK or from private 10-15 years ago pricing was less selling are also being found via the UK seller, this information was passed buyers who have near-new cars scrutable, it’s now easy to see what’s NZTA registry in an attempt to trace on to the manufacturer’s head office they want to move along. being charged says Tulloch. them back to their source in the UK. in the UK, and the UK dealer was “Looking up retail prices in the “The whole world is open But he says he’s got no issues warned not to sell vehicles for export UK there are huge differentials [with slather, anyone can look into the sourcing cars, and can source as to New Zealand. New Zealand] at the moment.” UK and see what the prices are. many cars as he wants. WHO NEEDS A DMS ANYWAY?

Just to clarify things for the purpose of this discussion, operation, or sell parts. The less complicated nature of DMS stands for Dealership Management System, these businesses means that they can run effi ciently on a which is a bundled management information system less complicated accounting or management system. created specifi cally for automotive dealerships or large “Lucky them”, I can hear some of you saying. And to a equipment manufacturers and dealerships, and also degree that is true if you are looking for simplicity, but you adapted for boat, RV, and power sports dealers. These bigger franchise guys also have more strings to your bow systems often contain software that caters to the needs and therefore more opportunity to hold onto your clients of the fi nance, sales, parts, inventory and administration and make more money out of them over their lifetime. components of running the dealership. How is that going for you by the way? If it’s not going so well, then one of the areas you may need to look at is SO WHO NEEDS IT? how well does your DMS help you manage the processes Franchised dealers in the automotive, agricultural and involved in that customer life cycle? How is your CRM heavy machinery sales sectors defi nitely do. If you run an organisation that system working? Is it an integral part of your DMS with easily utilised needs to bring consolidation to records for sales, service, parts, customer communication tools? Is your sales team operating off a properly integrated records and marketing together under one banner, then you need a proper diary system that links back to your CRM and customer database? Have you DMS solution. got a decent automated system for bringing your service customers back into Some systems are also suitable for smaller operations your dealership? If your DMS is not helping with those like motorbike dealerships and even small tools outlets things then maybe you need to look at your options. like chainsaws and electric power tools. These systems How many of you Used Car operators are running tend to be a little less complicated and are effi cient at a proper Customer Retention programme? How much lower levels of use. Other systems are more advanced better would your business perform if you had a system and are capable of handling a greater volume of like that in place? Perhaps there is a place for a DMS in transactions and providing the more in-depth analysis your business after all? of activity and results that are often required in a larger If you would like to have a chat about any of these business. ideas, please do give us a call. We will give you an Car dealerships selling only used vehicles are less obligation free analysis of your current system and see if likely to need a full DMS as most do not run a service we can be of any help.

Contact Roger Peffers Ph: 0800 77 66 11 Email: [email protected]

www.autofile.co.nz | 7 news Jaguar looks to widen model range AUTOHUB UK ith sales in the luxury a supercar with a world-wide run segment heavily limited to 250 vehicles, and driven by new model a price tag between Wlaunches, Jaguar had faced a tough 700-900,000 British time with no new models for nearly Pounds. a year and a half. But more likely The marque sold only 45 to boost Jaguar vehicles in 2011, down from 76 the volumes in NZ is the year previous. announcement of But with new model activity the a smaller car, set to brand expects to outsell its 2011 compete against the likes of total in the first few months of this the BMW 3 Series and the Audi A4. are larger. year, with 19 vehicles sold in January. Also to be introduced is an XF “If you compare the And Jaguar brand manager wagon, though Rickets says they’re XF segment with the next segment Ricketts says the XF has had UNDERGROUND Paul Ricketts says that there are still analysing whether it will be down, it’s considerably larger, and quite a substantial facelift inside plans to double the Jaguar range, brought into New Zealand. luxury SUVs are also a very strong and out, and now starts at $90,000 meaning a more consistent rollout He expects that an increased growth segment.” for the 2.2 litre version. of new models. model range will no doubt grow Jaguar, along with Land “[The XF] is very heavily This includes a luxury SUV, the brand’s volume. Rover, was acquired by Tata specced, everything from keyless slated for 2015; the CX16, a two “It’s been recognised that Group in 2008, an Indian entry, DVD, satellite navigation door sports car which Rickets says Jaguar does compete in fairly niche multinational with revenue of and leather seats. It’s fairly loaded, will sit somewhere in between a segments currently, and of course $US83 billion in 2010-11. especially for a $90,000 luxury Porsche Boxter and a 911. to grow any brand you need to have They’ve promised to spend 1.5 European car.” Also on the horizon is the CX75, smaller vehicles in segments which billion pounds a year over the next The XK has received an upgrade five years says Rickett – “So that’s in specification, while the XJ some serious investment.” remains the same, but with the Jaguar is one of a number of price decreased to $155,000 British motor companies that are Ricketts says that the main driver currently owned by large Asian of the price drops – upwards of 20% corporations, although Jaguar was – is the movement in currency. GOING UNDERGROUND acquired by Ford in 1989. But he says it will inevitably MG, set to make a return to impact on importers bringing them the New Zealand retail market in in from the United Kingdom. SO YOU DON’T HAVE TO! MVR the coming months, is owned by “I’ve seen a lot of Jaguar models Shanghai Automotive Industry that were imported and they’re still Name & Address Corporation (SAIC), China’s largest on Trade Me two years later, there car-marker. In both cases the new are quite a lot of people that have For all your UK Vehicle Logistics Requirements provider owners have retained existing staff been burnt. and facilities in the UK, with a focus “I think when you put into the on development. mix the warranty, the fact that MotorWeb is authorised to provide Lotus are another, owned by the navigation won’t work in New you name and address information for: Malaysian group Proton, which in Zealand, you’ve got an older shape 2010 announced ambitious plans to car, it’s going to be registered as  Registered Motor Vehicle Traders roll-out five new cars in five years. a import as opposed to a New  Finance companies Ricketts says Jaguar’s new Zealand new vehicle, the spec of a owners are working well. UK car is generally a lot lower than  Insurance companies “I don’t think you could ask for a a New Zealand-specified car – once  WOF reminders better company. They’re passionate you put that into the mix it really  Repossession agents about vehicles, and have a very doesn’t make sense for a customer hands off approach, and see that to purchase one of them over a  Service Stations the people in Jaguar and Land New Zealand new.” Contact DANNY KNIGHT Rover know what they’re doing, Resale values will also be lower and are prepared to invest.” he says. DDI 09-411-9789 or 027 444 3433 Call our industry helpdesk today Sales of the current models – “It’s true with any import: you the face-lifted XF, the XK and XJ, register it as an import and it’s email: [email protected] 0800 668 679 are also benefitting from realigned going to have an impact on the prices and higher specification. sales value.”

8 | www.autofile.co.nz AUTOHUB UK

UNDERGROUND

GOING UNDERGROUND SO YOU DON’T HAVE TO!

For all your UK Vehicle Logistics Requirements

Contact DANNY KNIGHT

DDI 09-411-9789 or 027 444 3433 email: [email protected] www. autohub.co.nz

www.autofile.co.nz | 9 VEHICLES News in brief WANTED Trade Me looks to smartphones for growth Trade Me says it will target growth in mobile users and sales of new goods, in its first interim report. BUYING NOW The online auctions company reported earnings before interest and tax of $49.7 million in the six months ended Dec. 31, beating the $48.6 million forecast. This came despite the distraction of the Rugby World Cup, and a miles motor group weak retail environment. Trade Me says that the number of people accessing the site from Toyota Nissan Mazda mobile devices is increasing, with the iPhone application having Honda VW Lexus been downloaded 300,000 times. In January alone people logged in Hyundai Kia through the app more than four million times. They’re looking to see growth in this area, with an Android app We are always looking to purchase launched, and with the mobile development team increased. NZ NEW CARS AND COMMERCIALS Growing new goods sales is also a priority says the site. “Already over 40% of the items sold on Trade Me are brand new. We’re PaUL CURin 0274 333 303 [email protected] working on arrangements with several partners to help integration with retailers, and we’ll continue to make the website a better place to buy new goods.”

Audi VW More petrol set to be refined locally WE PURCHASE NZ NEW CARS AND COMMERCIALS Refining NZ is set to spend $425 million on an improvement for the FOR ALL OUR FRANCHISES Marsden Oil Refinery, which will see the refinery able to process 65% of Brett Harris 029 293 1232 [email protected] www.farmerautovillage.co.nz New Zealand’s petrol. Currently 55% is refined at Marsden, with the remainder imported. The project is expected to create 300 jobs for its duration, boosting the Northland economy and other specialist sectors. The investment will increase processing capacity, improve energy efficiency, and improve product yields. Z Energy, the fuel retail business formerly owned by Shell New Zealand, is the largest user of the refinery, generating $92.4 million of total revenue through the refinery last year of $277.9 million. Z owns 17.1% of the refinery, compared with 23.7% owned by BP and 19.2% by Mobil.

vehicles wanted Public survey over electric vehicles The Association for the Promotion of Electric Vehicles (APEV) has launched a research project to gauge New Zealanders’ views on electric cars. JAGUARS, LAND ROVERS, RANGE ROVERS, RENAULTS AND VOLVOS Phone JEREMY GATES - (021) 8999 21 APEV Executive Director Rob McEwen says that while the country has committed to reducing emissions especially in road transport, there has been no decrease, with nearly $8 billion worth of fossil fuels imported in the last year alone. Mitsubishi • Mercedes Benz • Honda He says the survey will seek to identify how receptive New Hyundai • Isuzu Utes Zealanders are to having electric vehicles, as one solution to www.inghamdriven.com SsangYong • Great Wall Karl Briggs 0274 721 551 We purchase NZ new cars & commercials. boosting our competitive advantage resulting from less reliance [email protected] All makes & models. Anywhere in NZ. imported fossil fuels. “The survey offers an opportunity for Kiwis to have their say on the future for electric vehicles in New Zealand and we encourage as Buying: Vans, Utes, Light Trucks. Nationwide. many people as possible to complete it. “We believe that APEV’s goal of enabling New Zealand to have Contact Gareth 021660180 [email protected] www.317.co.nz the largest reduction in transport fuel of any OECD country by 2025 is achievable and we’re hoping that the survey will provide insights TO ADVERTISE HERE CONTACT: into how we might better accelerate the electrification of the Ph 0508 288 863 or 021 455 775 transport fleet.” The APEV survey can be found and completed at https://www. advertising@autofi le.co.nz surveymonkey.com/s/K65QSZP.

10 | www.autofile.co.nz tech report

The iMViA Technical report is proudly brought to you by leading certifi cation service provider, ViNZ from the trade and for the trade

Used commercials ex UK with David Vinsen IMVIA Chief Executive IMVIA seeking simplification of compliance rules

here are many used and South African domestic vehicle approval process; this also the sample at the bottom of page. commercial vehicles; specification vehicles that applies to cars and SUVs that have In the case of Heavy Motor vans, light and heavy entered the UK having been first entered the UK under the SVAS. Vehicles (HMVs) we can obtain trucksT now arriving in New registered in Malta or Cyprus. From 2010 some of the vans SoCs for some but not all HMVs, Zealand ex the United Kingdom, When these vehicles are becoming available have got in saying this, the IMVIA has and the IMVIA has proposed to subsequently registered in the full EU approval and there is proposed to NZTA an alternative NZTA an alternative system of UK (because they have been a “Statutory Plate”/label, that system of proof of compliance proof of compliance which would previously-registered in an EU contains the Makers Name, the which, if approved by NZTA simplify the process. country) they are processed 17 character VIN number and the after they have completed There are currently a number through the Single Vehicle approval number, attached to the their research, should simplify of pitfalls for the unwary and Approval System (SVAS). It is vehicle. This approval number compliance issues for HMVs. the IMVIA has had to sort out a virtually impossible to obtain any (like those for passenger vehicles) For more information contact number of problems importers of compliance information for these will be in the following format:- the IMVIA on 08000 IMVIA these vehicles have struck when grey imports as they have not e1*2001/116*1234*56 or (08000 46842) attempting to register them in NZ. gone through the EU whole of E11*2007/46*1234*56 see The UK light goods vehicle “Type Approval Regulations” do not cover all the standards requirements that the NZTA Rules specify and Statements of Compliance (SoCs) are required for these vehicles before they will be permitted certification and entry into the NZ vehicle fleet. The IMVIA is able to obtain SoCs for most light commercial vehicles with the exception of vehicles that were “Grey Imports” into the UK, many of these Grey Imports are Thai The Vauxhall Mov

Japan Specialists in Pre Shipment Inspections JEVIC Authorised NZTA Border Singaporinng e  Full Border Inspections  Structural Inspections  Pre Export Appraisal Inspection  Biosecurity Inspections  Odometer Verification  Vehicle History Reports Agency

New Zealand JEVIC NZ 09 966 1779 www.jevic.co.nz

www.autofile.co.nz | 11 new cars by Mike Stock Subaru XV to counter Biante gets ‘faux wheel drives’ all Granz

azda is marketing a special Medition Biante minivan in Japan, through Mazda, Anfini and Autozam dealers. ubaru say they’re expecting their a highlight of the new XV, the first All models come with a five The Biante Granz is based on Snew XV to shake up the sub- model from the manufacturer to star rating from ANCAP, with seven the high-spec 20S version of the compact SUV market, with its mix of feature Auto Start Stop. airbags, including a driver’s knee high-roofed MPV which features technology and sporty design. It has the new third-generation SRS airbag. the i-stop idling engine stop “Just as our Forester and Outback four-cylinder 2.0 litre FB horizontally- Dumper says the model heralds system, i-stop. pioneered new segments for Subaru opposed Boxer engine, with the the improvements that will be seen Frontal styling has been in New Zealand, XV will do the same,” choice of a new Lineartronic CVT, or a on new models. The new Impreza is altered, and the Granz has a said Wallis Dumper, the Managing six-speed manual gearbox. launching in a few months’ time. unique front bumper and a large Director of Subaru of New Zealand. Suburu say the Lineartronic “[In the XV] you’ve got a truly chrome grille “It’s engineered to be tough, CVT – paddle shift transmission formidable package that is about Other exterior features yet economical; sporty, yet is smoother and 10% more fuel to give the market segment a major includes silver rear trim, a LED comfortable; stylish, yet fun and it’s efficient than superseded four- shake-up. XV is a clear indicator rear combination light bezel in got genuine Subaru Symmetrical speed automatic and the six-speed of what’s to come from Subaru silver and black, and chrome trim All-Wheel Drive credentials, which manual has a short stroke, easy in terms of new technology and on the front bumper, side sills sets it apart from many faux wheel shift, producing greater efficiency. design, so it’s fair to say we’re very and lower rear bumper) drives that offer promise but Fuel economy is also aided by a excited about our future.” The Granz is fitted with no punch when it comes to real Multi-Function Display (MFD) in the The XV is priced from $38,990 for 17-inch alloy wheels shod with handling ability and grip. dashboard, which advises drivers of the XV 2.0i manual up to $46,990 for 215/50 R17 tyres. Subaru say that efficiency will be their efficiency. the range-topping XV 2.0i-S. In the cabin, the Granz picks up some items from the top-of- the-range 23S Biante. A Granz-C model adds Kia concept hints at Soul’s future halogen headlights (with low beam manual levelling function) ia has unveiled a concept- Soul as having “rebellious and Soul pumped full of steroids. and a keyless entry system Konly performance-oriented distinctive styling” and “blazing Designed by Tom Kearns, (with answer-back function and coupe, which it says hints at the with attitude” (not to mention a chief designer for Kia Motors automatic rear liftgate). The possible future of the Soul. TV ad with dancing hamsters), America, Kearns says the intent Granz-C has 16-inch steel wheels Kia likes to describes the and the Track’ster is allegedly the was to make the concept car with full wheel caps and runs on “tough looking, like a bulldog”. 205/60 R1q6 tyres. The Track’ster’s lower intake Mazda is selling the Granz grille is capable of taking in in three colours – Aluminum prodigious amounts of air to Metallic which is exclusive to the keep the engine running cool. model, Brilliant Black and Crystal Rears doors have White Pearl Mica. disappeared, potentially less suitable for a family setting, but it makes up for that with a 2-litre turbocharged inline-4, developing 186kW (250hp), a 66% increase over the production 2-litre model currently sold in the US.

12 | www.autofile.co.nz Protecta profile

Stephen Palmer Manawatu Nissan & Kia

tephen Palmer is the dealer what they do.” principal at Manawatu Nissan Rural customers, traditionally and Kia in Palmerston North. a big part of their customer base, TheS dealership is one of several in a also aren’t doing much spending, group owned by Bruce Robertson, though Stephen says he’s optimistic including Robertson Holden, they will be tempted back into the Palmfeild Motors and Robertson market come Fieldays, and says with Isuzu Truck Services. stock arriving soon they’ll be well He’s been with the branch for placed to fill orders. five years, and prior to that was with Many Nissan dealers around The Kia side of the business is might have, but the group has a Robertsons Holden as a used car the country believe that product experiencing good growth, and budget yard which retails the lower manager for eight years. Before that coming on-stream this year will having witnessed the transition from value vehicles. a salesman at Manawatu Toyota for prove attractive to the market, and the previous era of models to the They offer a 12 month Protecta eight years. Stephen is no exception. current, with the strong influence warranty with all the used cars they He says new car sales are The new Juke has just of Peter Schreyer’s designs, the sell, which they package into the currently “a bit of a battle”, while launched, which he says is a difference is “like night and day”. window price. used cars are selling well. very exciting car, and already “Kia are fortunate enough that Stephen says he finds the “New sales are hard work, and a generating a lot of interest. most people would say that their company easy to work with, and lot of our small to medium business “It’s a funky car, something a cars are good looking.” hassle free. customers have put the screws on bit different, and the fact that it’s He says Kia’s sponsorship of the “We’ve found them really good spending, so that’s slowed down for different gives people something to tennis, locally and in Australia, also to deal with. We see the rep, Alan us a bit.” strive for.” created a lot of brand awareness, Marlow, every fortnight, if not He says while they traded all Though he says, as is often the and the dealership saw increased every week, and he’s good value for right through the recessions, the case with many popular models, foot traffic as a result. money.” back end of last year was probably supply is currently a bit tight. Used cars are a strong part of Seeing the rep is a good chance the quietest of the last three years. Juke is in a similar mold to the business, and their vehicles are to discuss the market and warranty “I just think the lack of Qashqai, which is by far their mainly second hand trade-ins, with sales says Stephen. confidence is a factor for biggest selling passenger vehicle the demand for used cars obviously “And when it comes to claim businesses. One thing I’ve noticed, he says. And Kiwi consumers quite strong, making it hard to buy time, we don’t have too many even with our private buyers, is are very much swayed by the on the open market at the moment issues, that’s obviously a big part that if you don’t get to do the appearance of a vehicle. says Stephen. of it. If there were dramas I would business with them pretty much “If you don’t get the looks right “We don’t wholesale any longer know about it.” right away, the more they think on the vehicle you’re in trouble. but retail only. You end up with The dealership has 16 staff, with about it the more they think the car Qashqai certainly looks good, and quite a variety of vehicles out there.” four sales staff including the sales they’ve got is okay. They’ve been it’s a vehicle that does create some They do have some cheaper cars manager. With a smaller team it’s educated to save money and that’s desire for people.” on their yard than previously they possible to have a hand in all the departments, and know what’s PROTECTA Na+onwide F & I results -­‐ January 2012 going on. 80% “It’s easy to have that personal Used touch, and I have my office right 70% New Best Result $1818 in the middle of the ship which 60% 53% Worst Result $303 anyone can see me in, and 50% customers can come and see me,” 37% 35% 40% 32% says Stephen. 30% “In some ways it’s easier being 18% 19% 20% 16% part of a small team, being right in 13% 11% 10% the middle of the dealership you can see what’s happening, you’re 0% Finance Payment Protec9on GAP Motor Vehicle MBI always up to date with what’s going Insurance on, not too many surprises.

www.autofile.co.nz | 13 disputes

The Case: Cambelt break one month after sale The purchaser bought a 13-year- old car with 200,000km on the not unreasonable clock. The cambelt broke one month later. The Decision: Background the Road Traffic Regulations. thinks he might have told the The tribunal considered that On 1 September 2011 Mr Shelford Mrs Shelford says the vehicle purchaser to have the cambelt this was what a reasonable bought a 1998 Toyota Camry for was purchased for her use in replaced but he cannot recall buyer of a vehicle towards the end of its economic life could $2,000 from Automania Limited. getting to work as a caregiver and is not sure whether he expect, and that a cambelt is a The vehicle’s odometer at the and transporting her to hospital did so or not. He thinks he maintenance issue time of sale was 200,229kms. for treatment. She said she was told the purchaser to have the the Motor Vehicle Disputes The purchaser says the vehicle’s driving the vehicle from Leigh to vehicle serviced. O’Connell says At: Tribunal, Hamilton cambelt broke a month after Matakana on Saturday 1 October the vehicle was sold for only he purchased it and he seeks to 2011 when the engine suddenly $2,000 and had already travelled recover his repair costs of $757. stopped. She left the vehicle 200,229kms at the time of sale. He The trader says that the on the side of the road and the says a cambelt can fail on such a failure of a cambelt in a vehicle next day telephoned Mr Stephen high mileage vehicle at any time which is 13 years old and has Paddison the Manager of Leigh and is generally considered to be before the cambelt broke. The travelled over 200,000kms is to Motors Ltd who arranged to a maintenance issue. Tribunal and the motor vehicle be expected as a matter of wear inspect the vehicle and found the industry considers that a cambelt and tear at any time. The trader engine had broken its cambelt. The finding is a maintenance item which is had offered to pay one half of the He informed Mrs Shelford the The tribunal considered whether the subject to wear and tear and purchaser’s repair costs but the cambelt had broken. Mrs Shelford vehicle supplied was of acceptable can break at any time if it has purchaser rejected the offer. telephoned the trader and spoke quality, a vehicle that was near the not been replaced at about to O’Connell on 3 October who end of its economic life. 100,000kms or after 7 years use. The Case told her it was unlikely that the The vehicle had formerly been The Tribunal considered On 1 September 2011 Shelford trader would be willing to pay for a taxi and the purchaser was told that a reasonable buyer of a agreed to buy the vehicle from the repairs to the vehicle but he of that when he agreed to buy 13 year old former taxi vehicle the trader for $2,000 following would ask the trader’s director to it. The vehicle had no service with no service history would a short test drive. His wife said telephone her. sticker on its windscreen and no not expect much of it in the the vehicle drove very smoothly, On 4 October Mr Shane service handbook was supplied way of durability, and therefore and that the trader’s salesman Henderson the trader’s Director with it and so its service history is dismissed the purchaser’s Mr O’Connell told the purchaser telephoned Mr Paddison to tell unknown. application. and her that the vehicle had been him the trader did not consider it The purchaser did not appear a taxi and had been recently was liable to repair the vehicle and to have considered, before Bruce Dell’s comment traded in. She told the Tribunal to advise Mrs Shelford of that. buying the vehicle, the real The cambelt broke one month that neither she nor the purchaser Leigh Motors Ltd replaced the risk that the vehicle with over after the purchase and the asked if the vehicle’s cambelt had cambelt and the water pump and 200,200kms on its odometer Purchaser sought $757.00 from been replaced and the subject of tested the vehicle for bent valves might not have had its cambelt the Dealer. the cambelt was not discussed, which, luckily, were undamaged. replaced because the purchaser The Dealer logically and nor were other details about its The amount charged for the apparently took no interest reasonably argued that the servicing. There was no service repair was $757. The vehicle had in enquiring about its service failure for a vehicle of 13 years record supplied with the vehicle travelled 2,270kms from the time of history. Had he done so he would of age and over 200,000km was and it did not have a service purchase when the cambelt broke. have discovered that there was reasonable and in fact offered to sticker on its windscreen. The trader “out of good faith” no evidence as to when the pay half the account. The vehicle’s odometer was had offered to pay one half of vehicle’s cambelt had last been It was not surprising to read recorded on the vehicle offer and the purchaser’s repair bill but Mrs changed or indeed if it has ever that the Purchaser’s application sale agreement and the consumer Shelford had declined that offer. been changed. was dismissed, particularly taking information notice as 200,229kms. Since filing the application the There was no evidence that into account the economic life The trader did not obtain a fresh vehicle’s radiator has cracked, there was anything wrong with for a vehicle; the purchase price warrant of fitness for the vehicle repaired by Leigh Motors Ltd at a the vehicle’s cambelt at the paid; the vehicle was 13 years of within 28 days prior to the date of cost of $358. time of sale and the vehicle age and had over 200,000km…. sale as it is required to do under O’Connell for the trader says he drove satisfactorily for 2,270kms seemingly a no brainer!

Email subscribe@autofi le.co.nz and receive Autofi le in your inbox twice per month The voice of the auto industry

14 | www.autofile.co.nz disputes

The Case: Trader ruled misleading for not A trader sold a Hilux deregistered for water damage, but did not tell revealing need for repair certificate the buyer that a repair certificate would be needed. Background that just the bonnet had been “Rep Cert – insurance w/off”. The Decision: On 2 August 2010 Iao Aliimatafitafi immersed because there was no He took the vehicle to a The tribunal considered the bought an un-registered Toyota evidence of water having been light vehicle repair certifier, who trader had engaged in misleading Hilux for $18,000 from Bling Bling in the cabin. Aliimatafitafi also explained the repair certification conduct, and declared the contract void. Co Limited. Aliimatafitafi alleges asked what would need to be process, saying that a water he was misled about the state of done for “compliance”; he said that damaged vehicle often requires At: the Motor Vehicle Disputes the Hilux and in particular that Bates did not provide any specific replacement of a significant amount Tribunal, Wellington he was misled about what would information but told him to contact of internal componentry including be required in order to have the a vehicle testing station for advice. items such as wiring looms, seat belts the likely reason was that Bates vehicle re-registered. The trader’s He said that Bates did not and front and rear airbags. did not want Aliimatafitafi to position is that the purchaser was tell him that the car had been Aliimatafitafi immediately went know what was required because not misled, saying that the Trade Me de-registered because of water back to the trader and asked him he would would either withdraw advertisement was clear in its terms. damage or that repair certification to refund the purchase price. The from the auction process or at the would be required. This was the trader was not prepared to do very least adjust his bid to reflect The case crux of Aliimatafitafi’s concern so and Aliimatafitafi made the the unknown additional costs he The Hilux was advertised on Trade about the sales process. application to the tribunal. would have to incur getting the Me with a $1 reserve, and the Bates agreed he did not The repair certifier gave Hilux on the road. listing set out key details including: tell Aliimatafitafi that a repair evidence to the tribunal, saying that The tribunal considered that This Hilux came direct from the certification would be required if a vehicle has been deregistered the “no faults” claim created the insurers following partial immersion even though he knew that it because of water damage, then impression that there would not in fresh water. We have replaced the would. He gave two reasons for repair certification would normally need to be any mechanical work fuel pump and injectors. this: first, he said that he thought be required, involving substantial carried out on the Hilux. To the best of our knowledge that everyone would know of that dismantling of the vehicle. He told The tribunal considers that it now runs and drives with all requirement – that it was obvious; the tribunal that water damage Bates engaged in misleading electrical and mechanical systems his second reason was that he causes alarm bells to ring for conduct, and was satisfied that in working well […] wanted people to find out for anyone in the trade. the circumstances a reasonable This vehicle will require themselves. Aliimatafitali provided an estimate person would have been misled. re‑compliance and registration, as the Aliimatafitafi contacted VTNZ, of costs for $24,147.54 from Nicholson The purchase was declared void ab insurance company in their wisdom saying that an “insurance company Autos Toyota, while Bates made the initio (void from the beginning), has de-registered it. For further details in their wisdom deregistered” the point that second-hand parts could be and Bates was ordered to refund regarding this process, please contact Hilux (quoting the Trade Me obtained for much less. the $18,000 purchase price as well your local VTNZ or The AA. listing). He was given cost for as the $400 paid for delivery. An AA vehicle inspection was compliance and WOF ($450) and The finding also included with the ad, and the registration ($387), but did not The tribunal considered whether Bruce Dell’s comment report identified no major faults. receive any information about the trader’s conduct was The Dealer argued that the Trade Me Aliimatafitafi became interested repair certification. misleading. It found Aliimatafitali advertisement was clear in its terms. in buying the Hilux, influenced by Aliimatafitafi decided he to be a careful and credible witness The Purchaser was not legally the fact that the advertisement wanted to buy the Hilux, and won and concluded that his version of advised and did not present a legal said it had no faults. He said the auction with a bid of $18,000. events was the more reliable. Bates argument but he did identify two that he understood that the When the Hilux arrived he took did not tell him that he would need major problems he had in dealings Hilux’s registration had simply it to VTNZ and discovered that the a repair certificate but instead with the Dealer. been allowed to lapse, and did compliance process had already referred him to VTNZ. It was held, bearing in mind all not understand there to be any been started. VTNZ provided him The Trade Me ad told only the circumstances, that a Tribunal relationship between the water with a copy of VTNZ Certification half the story because as well as considered that the Dealer had incident and the de-registeration. Check Sheet that was dated 7 June needing to undergo what was been misleading in failing to Bruce Dell Law – “problem solver” Aliimatafitafi spoke to 2011 and recorded “Bling” as the understood in the industry as advise the Purchaser that a repair the trader. There was some applicant. The check sheet recorded “compliance”auto fiit lealso are needed delighted an to have certificateBruce as part would of the be requiredAutofi le inteam advising our readers dispute about the conversation. that a repair certificate would be additionalon stepthe –lessons a repair to certificate. be learned fromresponse past Motor to a direct Vehicle question Disputes as to Tribunal cases Aliimatafitafi said Bates told him required and recorded a notation The tribunalIf you require considered legal advice that give whatBruce would a call be on required. 09 570 5036

Bruce Dell Law – “problem solver” . Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor bd Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036 law www.autofile.co.nz | 15

. Problem bd solver law industry statistics

Biggest Increases/Decreases by town year-on-year Around (January ’12) Biggest Increases New Used Westport  100.0% Dunedin  8.7% the Whangarei  66.2% Masterton  6.1% Invercargill  64.3% Blenheim  3.6% SHIPPING SERVICES country Biggest Decreases New Used Rotorua  32.6% Westport 40.0% TO NEW ZEALAND AND AUSTRALIA FROM JAPAN, CHINA AND KOREA Oamaru  21.1% Greymouth  39.5% Car sales - January 2012 Timaru  12.2% Oamaru  35.3% LATEST SCHEDULE Hoegh Xiamen Sasanqua Falstaff Isolde Port Calls Sales of New passenger vehicles versus used import passenger vehicles Used Vehicle sales - North Island versus South Island (last 12 months) V8 V1 V6 V4

6000 Osaka 1 Feb 16 Feb 28 Feb 29 Mar 8000

5000 5066 Nagoya 27 Jan 25 Feb 28 Mar 7499 Used North Island 7000 4000 Yokohama 30 Jan 18 Feb 27 Feb 27 Mar

6375 3000 6000 Auckland 26 Feb 2 Mar 26 Mar 25 Apr

2000 New Wellington 28 Feb 28 Mar 27 Apr 5000 1309 1000 South Island Lyttelton 3 Mar 3 Apr 3 May 4000 v' 11 v' 11 ug ‘11 ug ‘11 Oc t '11 No Oc t '11 Jul ‘11 Feb ‘11 Dec '11 A P R ‘11 No Jul ‘11 Jun ‘11 Feb ‘11 Dec '11 A A P R ‘11 Jun ‘11 A Jan '12 May ‘11 May Mar ‘11 Jan '12 May ‘11 May Mar ‘11 Se p T ‘11 Se p T ‘11 DOOR TO DOOR SERVICE GENEROUS REWARDS INCLUDING: PROGRAMME Used Imports passenger sales in Auckland, Wellington, Christchurch Used Import passenger sales in Hamilton, Tauranga, Dunedin, Palmerston North  MAF Border inspection Ship your motor vehicles on 4500 600 4000 Auckland  Odometer certification Armacup vessels and you 500 3500 Hamilton  can earn seamiles points for 3050 Digital Photography for prior sales in NZ 3000 400 408 air travel (only applicable to 2500  NZ Customs clearance 300 used imports) 2000 Tauranga  Delivery Nationwide 237 1500 200 Vehicles sold Vehicles Vehicles sold Vehicles 200 Christchurch Dunedin 1000  Insurance 829 100 Palmerston Nth 149 500 640 0 Wellington 0 v' 11 v' 11 ug ‘11 ug ‘11 Oc t '11 No Jul ‘11 Feb ‘11 Dec '11 A P R ‘11 Jun ‘11 A Oc t '11 No Jan '12 May ‘11 May Jul ‘11 Feb ‘11 Dec '11 Mar ‘11 A P R ‘11 Jun ‘11 A Se p T ‘11 Jan '12 May ‘11 May Mar ‘11 Se p T ‘11 PHONE 0800 ARMACUP (276 2287) or 09 303 3314 EMAIL [email protected] NZ SALES OFFICE Our premium online service. SIGN UP FOR FREE! Telephone: +64 9 257 0050 BECOME A MEMBER AND ENJOY THESE EXCLUSIVE BENEFITS: Email: [email protected] www.armacup.co.nz ✓ Exclusive opportunities to buy direct from Japan. ✓ Hundreds of vehicles! Two shipments each month. NZ CUSTOMER SERVICE CENTRE ✓ ✓ Get exclusive access to AutoTerminal’s latest purchases. Get the best prices, based on Japan direct pricing, in $NZD. Telephone: +64 9 257 0070 ✓ Buy with confidence! Our vehicles are risk-free, with a ✓ View a wider range of vehicles, including AutoTerminal’s Email: [email protected] seven day right of return. in-transit and unshipped vehicles. ✓ www.autoterminal.com We are New Zealand owned and operated, and off er a full New Zealand-based support service. YOUR FIRST CHOICE IN SHIPPING 16 | www.autofile.co.nz SHIPPING SERVICES TO NEW ZEALAND AND AUSTRALIA FROM JAPAN, CHINA AND KOREA

LATEST SCHEDULE Hoegh Xiamen Sasanqua Falstaff Isolde Port Calls V8 V1 V6 V4 Osaka 1 Feb 16 Feb 28 Feb 29 Mar Nagoya 27 Jan 25 Feb 28 Mar Yokohama 30 Jan 18 Feb 27 Feb 27 Mar Auckland 26 Feb 2 Mar 26 Mar 25 Apr Wellington 28 Feb 28 Mar 27 Apr Lyttelton 3 Mar 3 Apr 3 May

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YOUR FIRST CHOICE IN SHIPPING www.heiwa-auto.co.nz Conditions in Japan favourable

hile many used import North Island Chair, says that there there’s actually some quite good competing against themselves.” dealers are focusing remains plenty of double-digit buying to be had.” It won’t be until March or April on selling stock they stock available locally. Many of the compliant models until it’s clear whether the current Wbrought in last year, now could be He believes product lines such can be brought to New Zealand for pricing in Japan is affected by the a good time to buy in Japan. as multi-seaters and vans won’t not much more than the double- shortage of NZ buyers suggests The exchange rate is at its be able to be replaced affordably, digit stock already in the country Macdonald. highest since August ’11, and and will be in demand; while some says Macdonald, yet it’s unclear if “Until we run through the Japanese domestic new car vehicles – those that are the wrong this trend will continue, or whether double-digit stock here and cash sales soared in January, after tax colour, with higher mileage – will prices will rise once more New up, we’re not going to know for sure incentives to buy fuel efficient cars take longer to sell. Zealanders are buying. what effect the rule will have.” kicked in on December 20th. However buying has been “The minute The government is offering good in Japan from the start every dealer a 100,000 yen subsidy for fuel of the year, and there’s every cashes up all their efficient vehicles, which in the past indication that buying will remain old stock here in has led to consumers bringing reasonable says Macdonald, with New Zealand and forward their purchasing decisions. strong new vehicle sales and so starts bidding in Toyota said it received plenty of trade-in stock going Japan, as we’ve 120,000 orders for its new through auction. seen in the past, hybrid Aqua (known as the Prius “If you’ve got money in your the prices then C elsewhere), ten times the bank account and you didn’t spend ramp back up, monthly sales target. it all on double-digit stock and simply because Graeme Macdonald, IMVIA you’re able to go to Japan and buy, Kiwis end up Used import passenger vehicles arrivals 11000 10000 9000 8000 7000

6000 2010 5000 4000 2011 3000 2012

2000 2009

JAN FEB MAR APR MAY JUN JUL Aug Sept Oct Nov Dec

Used Import Passenger Vehicles By Country Of Export

2012 2011 2010 Country of Export JAN +/- % Q1 Q2 Q3 Q4 2011 total % Total 2010 total % Total Australia 85 2.7% 241 261 257 256 1015 1.2% 1183 1.3% Great Britain 250 7.8% 298 205 407 663 1573 1.8% 791 0.9% Japan 2777 87.0% 15758 22980 21258 23538 83534 95.2% 86745 95.6% Singapore 5 0.2% 62 92 81 92 327 0.4% 1145 1.3% Usa 57 1.8% 186 186 250 354 976 1.1% 608 0.7% Other Countries 17 0.5% 70 58 64 95 287 0.3% 297 0.3% Total 3191 100.0% 16615 23782 22317 24998 87712 100.0% 90769

Reece McKerrow RELIABLE. Ph: 021 988 727 Servicing New Zealand for 20 years www.heiwa-auto.co.nz

18 | www.autofile.co.nz used commercial sales Conditions in Japan favourable UK commercials hit import market

sed commercial vehicles imported from the United Kingdom are beginningU to feature in the used commercial market, making up slightly more than 10% of the 245 units sold in January. Models included Ford Transit, the Fiat Ducato and Nissan Navara. One dealer in the Waikato had two Fiat Ducato double cabs listed, which he says are just to test the waters. that $12-15,000 Trafic or Nissan Primastar. But while there’s been a lot is the sweet spot for the market, requested for the late model “There’s a marketing process of interest, he says people are and one that is hard to service. vehicles, from ’07 on. that needs to be done for yet to sign on the dotted line. Many small business operators “The average business just something like a Vauxhall, The models aren’t unfamiliar, as who are looking for an upgrade can’t afford that kind of outlay.” which is a good vehicle. We had they’re available out of Japan, but are effectively offered 2nd hand Summerville says that the Vauxhalls back in the ’70s, but he believes price is probably the vehicles similar to what they’re challenge faced by some of most of the guys driving now factor, with the models sitting already driving. the UK models is that they’re wouldn’t remember them.” above $30,000 (2008, 14,000km). “A lot of guys have been unknown in the New Zealand He believes that buyers will Gordon Summerville on repairing their old commercial market. One example is the become accustomed to new Auckland’s North Shore, who vehicles because they can’t afford Vauxhall Vivaro, which in other models, especially if they see them specialises in diesel vehicles, says to pay the big money that’s markets is badged as the Renault being driven on the road.

Used Commercial Sales by Make - January 2012 Used Commercial Sales by Model - January 2012

Jan '12 Mkt Jan '12 Mkt Make Jan '12 Jan '11 +/- % Share Make Model Jan '12 Jan '11 +/- % Share

Nissan 81 65 24.6 33.1% Toyota Hiace 46 46 0.0 11.0%

Toyota 68 61 11.5 27.8% Nissan Vanette 45 24 87.5 10.7%

Mazda 35 23 14.3% Mazda Bongo 27 16 68.8 6.4%

Ford 13 6 116.7 5.3% Nissan Caravan 24 33 -27.3 5.7%

Chevrolet 9 8 12.5 3.7% Ford Transit 8 1.9%

Fiat 8 5 60.0 3.3% Mazda Titan 8 6 33.3 1.9%

Isuzu 8 9 -11.1 3.3% Fiat Ducato 7 4 75.0 1.7%

Hino 6 2 200.0 2.4% Nissan Navara 7 1.7%

Mitsubishi 6 2 200.0 2.4% Toyota Liteace 6 1 500.0 1.4%

Gmc 3 1.2% Toyota Townace 6 5 20.0 1.4%

Holden 3 2 50.0 1.2% Isuzu Forward 5 1.2%

Suzuki 2 1 100.0 0.8% Nissan Atlas 4 5 -20.0 1.0%

Citroen 1 0.4% Toyota Regius 4 1.0%

Renault 1 0.4% Chevrolet Pickup 3 0.7%

Volkswagen 1 0.4% Mitsubishi Delica 3 1 200.0 0.7%

Other 34 Other 42 77 -45.5 10.0%

Total 245 218 12.4 100.0% Total 245 218 12.4 100.0%

www.autofile.co.nz | 19 new commercial sales

[continued from page 1] Stock is king in ute market to source vehicles from anywhere else. It’s been a foot in the door for our brand.” He believes that Fieldays will be about new product, rather than the specials. “It’s nice to have a Fieldays that’s about new vehicles and the latest designs, rather than just slashing prices.” Steve Prangnell, Toyota Photo: Philip Roeland General Manager Sales and Operations says that the Hilux normal pace – not 90.” Prangnell says production in April other manufacturers try to delay remains severely restricted, Stock should come right in will then continue on as normal, customers’ purchases by offering reflected in their January sales March says Prangnell, though he and whatever production has them deals at the moment.” figures of 89 units, down from says some Japanese production been lost will not be regained. Prangnell says they typically 214 the previous January. which relies on Tier Two parts from He says they’re unsure of what front load stock for Fieldays, and A shipment of 150 arrived late Thailand has also been affected, the stock situation will be, come are pushing for the stock. January, which didn’t clear in time. including Yaris and Highlander. Fieldays, so haven’t made any “[The shortages] have been The entire shipment was pre-sold. Hilux production in Thailand is decisions around possible specials. ongoing for such a while now “We’re somewhere between back on full shift, and will exceed “All year we have been running that certainly there is an amount 300-400 retail [units] a month at 100% production in March. into very tough competition as of customer frustration. But that’s

New Commercial Sales by Make - January 2012 New Commercial Sales by Model - January 2012 Jan '12 Make Jan '12 Jan '11 +/- % Jan '12 Mkt Make Model Jan '12 Jan '11 +/- % Mkt Share Share Nissan 157 179 -12.3 13.3% Toyota Hiace 132 103 28.2 11.5%

Ford 132 183 -27.9 11.2% Ford Ranger 95 146 -34.9 8.3%

Volkswagen 95 45 111.1 8.0% Toyota Hilux 89 214 -58.4 7.7%

Mitsubishi 70 98 -28.6 5.9% Hyundai H1 59 75 -21.3 5.1%

Hyundai 60 75 -20.0 5.1% Mazda Bt-50 55 72 -23.6 4.8%

Great Wall 56 15 273.3 4.7% Mitsubishi Triton 50 60 -16.7 4.3%

Isuzu 55 33 66.7 4.7% Holden Colorado 43 72 -40.3 3.7%

Mazda 55 77 -28.6 4.7% Volkswagen Amarok 37 3.2%

Holden 53 86 -38.4 4.5% Great Wall V240 32 15 113.3 2.8%

Hino 34 14 142.9 2.9% Ford Transit 31 26 19.2 2.7%

Mercedes-Benz 23 34 -32.4 1.9% Volkswagen T5 31 12 158.3 2.7%

Mitsubishi Fuso 22 16 37.5 1.9% Great Wall V200 24 2.1%

Scania 20 14 1.7% Mitsubishi L300 20 38 1.7%

Kenworth 11 8 37.5 0.9% Isuzu F Series 19 4 375.0 1.7%

Man 11 7 0.9% Isuzu N Series 19 5 280.0 1.7%

Fiat 10 10 0.0 0.8% Toyota Landcruiser 16 14 14.3 1.4%

Iveco 9 3 200.0 0.8% Mercedes-Benz Sprinter 15 26 1.3%

Other 72 85 -15.3 6.1% Other 271 261 3.8 23.6%

Total 1182 1313 -10.0 100.0% Total 1182 1313 -10.0 102.8%

20 | www.autofile.co.nz new commercial sales

not just directed at Toyota, there’s John Cross, Managing Director has been decimated by the Psa but have to work harder selling customer frustration across at Ultimate Motor Group, virus, affecting also the land- more of the fruit. the board because they have a which sells Ford and Mazda in values of farmers whose vines But Cross says Tauranga is business need and the vehicles Mt Maunganui, Thames and have not been destroyed. generally positive, with the Ports are not available. Tauranga, says that they’ve got Avocadoes have had their of Tauranga a brightspot in the “We’re getting constant feedback significant numbers of Ranger largest ever New Zealand crop, economy, benefiting from the from our dealer network and we’re and BT-50 presold. causing a glut. Prices have problems in Auckland. just pushing Japan as hard as we can “Not a good situation to be in but dropped significant, however ‘The Port area is running at to allocate us extra stock.” I guess better than not having them farmers with a good crop are still 100% and that’s having a flow- Also affecting stock availability presold. But it’s frustrating having a able to bring in similar incomes, on effect.” of utes for the New Zealand hot product that you can’t supply.” market is the fact that utes are Cross says that buyers are in high demand in Thailand, the understanding, as they realise the New Commercial Sales - 2010-2012 second largest ute market in the vehicles are built in Thailand. The 2500 world after the United States. fact that many competitors are also Prangnell says that the Thai experiencing the same difficulties and Indonesia ute markets have is another mitigating factor. 2000 been hardest hit. “And it’s a new product, which “Not only have they had has got rave reviews. Good things 1500 no production, but they’ve come to those who wait.” had thousands of cars lost A lot of the local demand in the flooding. Restocking is coming from construction 1000 those markets is a priority for workers, plumbers and so on Toyota, because Hilux in its Thai rather than rural buyers says Cross. 2010 500 configuration has about 40% Avocadoes and Kiwifruit are 2011 market share. They’ve got a big the two main local crops, making 2012 task getting their dealers and up 20% of the economy in 0 customers back on the go.” Tauranga. The Kiwifruit industry Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

New, Used, and secondhand Commercial sales by Region - January 2012 NEW Used Dealer-To-Public Public-To-Public Jan '12 Jan '11 % DIFF Jan '12 Jan '11 % DIFF Jan '12 Jan '11 % DIFF Dlr Share* Jan '12 Jan '11 % DIFF Whangarei 27 46 -41.3% 9 3 200.0% 80 61 31.1 25.2% 237 244 -2.9 Auckland 467 460 1.5% 81 99 -18.2% 374 301 24.3 23.6% 1209 1152 4.9 Hamilton 105 124 -15.3% 19 11 72.7% 166 159 4.4 29.1% 404 393 2.8 Thames 13 17 -23.5% 29 23 26.1 28.4% 73 79 -7.6 Tauranga 49 56 -12.5% 15 12 25.0% 75 81 -7.4 23.7% 241 261 -7.7 Rotorua 12 39 -69.2% 2 6 -66.7% 35 34 2.9 28.9% 86 102 -15.7 Gisborne 10 15 -33.3% 2 2 0.0% 29 36 -19.4 26.4% 81 76 6.6 Napier 34 39 -12.8% 5 1 400.0% 65 58 12.1 26.1% 184 207 -11.1 New Plymouth 32 31 3.2% 9 9 0.0% 69 62 11.3 28.4% 174 155 12.3 Wanganui 11 15 -26.7% 1 21 18 16.7 23.9% 67 74 -9.5 Palmerston North 46 55 -16.4% 4 1 300.0% 109 75 45.3 31.0% 243 268 -9.3 Masterton 15 14 7.1% 1 1 0.0% 25 18 38.9 34.2% 48 79 -39.2 Wellington 65 92 -29.3% 15 34 -55.9% 102 95 7.4 26.8% 279 296 -5.7 Nelson 36 32 12.5% 5 5 0.0% 45 44 2.3 22.4% 156 161 -3.1 Blenheim 9 17 -47.1% 3 30 34 -11.8 35.7% 54 76 -28.9 Greymouth 11 12 -8.3% 2 25 15 66.7 52.1% 23 32 -28.1 Westport 2 1 4 -75.0 7.7% 12 24 -50.0 Christchurch 144 153 -5.9% 60 23 160.9% 265 165 60.6 28.5% 665 611 8.8 Timaru 16 12 33.3% 4 3 33.3% 34 34 0.0 34.0% 66 79 -16.5 Oamaru 5 7 -28.6% 1 9 9 0.0 24.3% 28 21 33.3 Dunedin 45 45 0.0% 10 3 233.3% 68 72 -5.6 22.3% 237 223 6.3 Invercargill 28 32 -12.5% 1 1 0.0% 57 63 -9.5 26.8% 156 162 -3.7 NZ Total 1182 1313 -10.0% 245 218 12.4% 1713 1461 17.2 26.6% 4723 4775 -1.1 *Dealer share of Secondhand Market

www.autofile.co.nz | 21 used & secondhand sales Will fuel prices affect EV uptake?

s part of their briefing to Development (MED), under the new Minister of Transport base scenario that oil reaches a Gerry Brownlee, MOT price of US$115 per barrel in 2030, officialsA have warranted some translating to a petrol price of guesses about the rate of uptake of $2.70 per litre at the pump here. electric vehicles (EVs) into the New Under this scenario MOT expects Zealand fleet. that the market share of full electric They believe that while in the and plug-in hybrid vehicles would vehicles may be driven by more targets for fleet emissions, meaning short term people resist changing increase to about 10%, from its than a rise in oil prices. Though most more vehicles will become available transport usage as costs increase, current negligible level. people spoken to in the industry to these markets. logically over time oil price increases Under MED’s ‘high oil price expect that a longer-term rise in the And as volumes increase on are likely to “induce changes in scenario’, oil reaches $US 172 per price of oil is inevitable, and possibly those vehicles prices will drop, travel, lifestyle, and locational barrel by 2030, meaning a retail price higher than MED’s predictions. including for hybrids. decisions”. of $3.50 per litre for consumers here. Toyota New Zealand Chief “The price of those will fall MOT have put forward two MOT predicts that in this case the Executive Officer Alistair Davis says probably more significantly than scenarios in terms of oil prices, and market share of electric and hybrid that because of the global push for the New Zealand Government how this will affect the uptake of vehicles will increase to about 14%. lower emissions, legislated for in areas realises,” he says. electric vehicles by 2030. However with plenty of R&D such as Europe, there will be a lot It’s a process Davis describes as “a Based on predictions by dollars being poured into electric more plug-in hybrids offered for sale. virtuous circle”, and says it’s something the Ministry of Economic vehicles overseas, uptake of the Overseas markets are setting New Zealand will benefit from.

Secondhand car sales - January 2012 Dealer-To-Public Public-To-Public Public-To-Dealer Jan '12 Jan '11 +/- % MARKET SHARE* Jan '12 Jan '11 +/- % Jan '12 Jan '11 +/- % Whangarei 402 363 10.7 20.7% 1542 1435 7.5 211 205 2.9

Auckland 4268 4099 4.1 25.9% 12188 12110 0.6 3332 3174 5.0

Hamilton 1197 1063 12.6 30.6% 2713 2649 2.4 1030 876 17.6

Thames 146 134 9.0 25.8% 419 441 -5.0 76 71 7.0

Tauranga 672 641 4.8 27.4% 1779 1717 3.6 511 437 16.9

Rotorua 208 190 9.5 26.2% 587 634 -7.4 131 108 21.3

Gisborne 135 156 -13.5 28.5% 338 341 -0.9 94 122 -23.0

Napier 454 394 15.2 27.0% 1228 1267 -3.1 372 285 30.5

New Plymouth 417 422 -1.2 32.1% 884 972 -9.1 237 256 -7.4

Wanganui 150 158 -5.1 24.5% 461 393 17.3 116 82 41.5

Palmerston North 676 610 10.8 31.6% 1461 1442 1.3 552 493 12.0

Masterton 130 124 4.8 27.7% 339 300 13.0 79 71 11.3

Wellington 1259 1244 1.2 31.4% 2751 2752 -0.0 853 869 -1.8

Nelson 253 249 1.6 22.8% 857 819 4.6 212 147 44.2

Blenheim 168 135 24.4 32.5% 349 345 1.2 122 87 40.2

Greymouth 105 91 15.4 34.4% 200 171 17.0 56 57 -1.8

Westport 31 34 -8.8 23.7% 100 100 0.0 1

Christchurch 1837 1631 12.6 27.8% 4780 4599 3.9 1401 1457 -3.8

Timaru 213 203 4.9 32.2% 449 406 10.6 127 117 8.5

Oamaru 52 54 -3.7 21.9% 185 188 -1.6 12 16 -25.0

Dunedin 627 562 11.6 28.2% 1598 1510 5.8 428 355 20.6

Invercargil 367 301 21.9 29.7% 868 757 14.7 290 234 23.9

NZ Total 13767 12858 7.1 27.6% 36076 35348 2.1 10242 9520 7.6

22 | www.autofile.co.nz used & secondhand sales

igures released by Turners Auctions reveal that large- engined cars remain in Fdemand, despite historically high Large cars remain fuel prices. Holden Commodore was the top-selling model at the auction in demand house in the final three months of last year, knocking off the Toyota Corolla from the number one spot after seven consecutive quarters. Sales of large cars, 2.0L and over, were up 4% compared with the same period in 2010, and up 8% on their 2009 low. This segment made up 48% of total vehicle sales at Turners in the fourth quarter of 2011. And it isn’t simply a case of volume being high: the average price rose 7% in the last year to an average of $11,185 per car, the larger vehicle provides says Turners a slow climb upwards of fuel prices. higher oil prices. highest price recorded since 2008. CEO Graham Roberts. In 2008 petrol prices rose quickly, The lesson seems to be that Demand for larger cars in “The fuel is less of a priority.” reaching their peak in July of $2.17 a consumers quit large cars in the final quarter of last year was While petrol prices are hovering litre at the pump. response to sudden changes in partially driven by seasonality, with near the 2008 high, Roberts believes By contrast, petrol prices have petrol prices, rather simply higher buyers looking to the convenience a consumers have been desensitised by risen steadily since mid-2009 and prices. Roberts says that it seems the slow And so the popularity of larger increase has allowed consumers to cars may be short lived, with accept the price. Roberts predicting that growing In terms of the petrol bills, it may unrest in the Middle East could be a case of the frog slowly boiling. reverse the trend. The parable has it that if a frog is “As long as prices remain steady dropped in boiling water it will we expect people to continue to buy The voice of the auto industry jump straight out, but if the water large-engine cars but our statistics starts cold and is slowly heated up show that dramatic petrol price the frog won’t notice and will stay in increases decrease the value and the the pot as it boils. number of large vehicles sold.” And so while fuel bills may be higher, if consumers are happy to Nevertheless there’s pressure pay that amount then there may be across the board for second hand no effect on large car prices. stock, particularly now, with January That compares with 2008, to April typically the busiest time for Still FREE to your when many people looked to quit second hand sales. Roberts believes their larger cars after fuel prices that the emission rule is also a mailbox or inbox rose quickly. factor, but he says it’s too early to “Three-year old 6-cylinder cars say how this will affect prices. twice per month fell from $18-19,000 to as low as “Last year about 85,000 imports $13,000 in a relatively short space of came in to New Zealand, our current time,” says Roberts. predictions are around 60,000 He believes after petrol prices rose coming in. Supply is going to be an quickly it became an emotional issue on that sort of stock.” decision for consumers, driven However Roberts says it’s a partially by media reports. more than simply the emission rule The dumping of large cars onto affecting imports, with increased the market forced their prices down, demand world-wide for Japanese while at the same time raising used vehicles, from countries such Email now to get your copy values of smaller vehicles. as Russia and more recently, Burma, Paradoxically this meant a loss as well as the strong yen, affecting subscribe@autofi le.co.nz of money for those looking to used importers’ ability to land sell their vehicles in response to vehicles suitable for our market.

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